TECH Project Title Payroll Fund Analysis Phase Date:12 Nov, 2013 Team members: Matt Unger

Brief Review of Project Business case – The payroll fund is in a negative status. Funds in Indiana government entities cannot be negative. The town has received several bad audits for this reason. It is threatening to put the town in very bad financial position. Problem Statement – The payroll fund is used by the town to pay employees using resources from the town and 2 utilities. The fund is a net zero account. What comes in must go out or at least be tracked to know what account owes the fund. This problem has be ongoing for several years. It is currently adding about $20K to $40K of debit a year to this account that is difficult to track to the source. Goal – Is to control inputs and accurately identify accounts that owe the payroll fund

Critical To Quality points

Data collection Summary Collection of Inputs to the payroll account Calculation of actual Inputs needed

KPOV Graphs The ouputs (payments) are being made The fund is backed by the Town account so if not enough comes in the Town account provides the difference July Aug

FishBone Diagram

KPOV Graphs 2 Required inputs do not match actual inputs Water and sewage not making payments SS/Medicare and Perf missing

Conclusions Need clear definition of inputs to payroll fund and when to process (weekly, monthly) – This will provide clear outputs – Need to define when outputs are made (this month, next month) Need clear tool to calculate payroll amounts – For related benefits (Perf, Medicare, etc) – For amounts required from Water and Sewage Need method to track inputs from utilities that are not made for that month