04/16/ Time & Expense Project State of Michigan Time & Expense Project NASC/NSAA Middle Management Conference April 16, 2008

04/16/ Time & Expense Project Agenda q Introduction q Current Problems and Goals q Project Scope q Project Objectives q Project Approach q Current and Future Process q Use Case Excerpt q Potential Expense Entry Form q Change Management

04/16/ Time & Expense Project Current Problems & Goals Problems : q Multiple agency solutions for time & expense entry. q Still some paper-based employee entry. q Redundant interfaces between systems. q Complexity in payroll processing and tax reporting. q Duplicate entry/maintenance of employee data. q Employee privacy concerns with vendor file. q No framework to accommodate requests for changes to existing systems. q Limited funding available for an integrated solution. Goals : q Develop a single, long-term, statewide solution for employee time and expense processing through enhancements to DCDS. q The new solution will be a rules based, web-enabled system that is interoperable with HRMN, maximizing integration opportunities. q The new solution will leverage the existing DCDS system as enhanced using current and available technologies.

04/16/ Time & Expense Project Project Scope q DCDS: u Upgrade DCDS Powerbuilder version + Oracle client upgrade. u Complete selected action items u Enhance to support web-based Expense u Break tie-bar u Improve HRMN integration u Equipment entry & distribution enhancements q Time: u Web employee time & activity entry u Web leave/OT requests u Web approval q Expense: u Web expense entry u Web advance request u Web approval u Distribute expenses u Interfaces to HRMN, R*STARS, MIDB u Reporting Time & Expense HRMNR*STARS MIDBDCDS

04/16/ Time & Expense Project Project Objectives q Streamline expense reporting by: u Eliminating paper submission of advance and reimbursement requests. u Providing robust, rules based validation of expenses when entered. u Provide workflow for requests to facilitate approval and processing. u Integrate employee reimbursements with payroll. q Extend employee web self service to Time, Activity and Expense entry. q Eliminate agency-centric Time & Expense solutions in favor of consistent use of a single statewide system. q Improve the interface of employee demographic data from HRMN to DCDS, and reduce errors. q Further secure employee data and eliminate redundant maintenance of employee data in R*STARS for Travel. q Transform existing Labor Distribution into an engine that can distribute costs from a variety of sources. q Position DCDS on a technology that will support future enhancements and potentially leverage existing code for the web. q Improve reliability of equipment distribution results.

04/16/ Time & Expense Project Project Approach q Phase I – May Migrate DCDS to Powerbuilder Complete selected action items 3.Oracle client upgrade q Phase II – January Expense Light 2.Enhance DCDS for Expense Light 3.Break tie bar I q Phase III – January 2010 (tentative) 1.Expense Full 2.Time and Activity web entry 3.Break tie bar II q Phase IV – October 2010 (tentative) 1.Equipment distribution enhancements Software Engineering Methodology (SEM) Project Management Methodology (PMM)

04/16/ Time & Expense Project Current Reimbursement Processes q Reimbursements recorded in MAIN FACS q HRMN MAIN FACS Interface u Employee retirement flags (for social security and Medicare tax withholding purposes) q MAIN FACS HRMN Interface u Taxable Travel reimbursements q Procedural inefficiencies u Tax withholding and reporting v Semi-weekly tax deposits v Withholding rates v State and local withholding v Taxable travel adjustments u Separate payments u Manual calculations and dual entry u Reconciliations u Vendor file maintenance v Initial vendor registration v Direct deposit information v Address and name changes u SSN privacy

04/16/ Time & Expense Project System Flow – Future Process

04/16/ Time & Expense Project Sample Use Case (Excerpt)

04/16/ Time & Expense Project Potential Expense Entry Form

04/16/ Time & Expense Project Change Management q Broad user community involvement vs. workgroup approach q HR & Finance End Users u Various communications and meetings u End user documentation u Training – CBT and other q Employees u Various communications u Coordination with CSC and OSE u Coordination with departments

04/16/ Time & Expense Project Questions?