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Cowlitz County, WA Accounting Function Review
Board of County Commissioners Study Session November 24, 2015
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Cowlitz County, WA Accounting Function Review
Agenda Review Objective & Process Background & Context Principal Observations Primary Opportunities Questions/Discussion November 24, 2015 Cowlitz County, WA Accounting Function Review
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Review Objective & Process
Assess the opportunity for Cowlitz County accounting functions to become more efficient or effective November 24, 2015 Cowlitz County, WA Accounting Function Review
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Review Objective & Process
Review Process Met with “major” departments to understand accounting functions performed and to get input on potential improvement opportunities Analyzed accounting transaction, expenditure and staffing data for Researched GFOA best practices related to selected accounting functions November 24, 2015 Cowlitz County, WA Accounting Function Review
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Review Objective & Process
Review Process Met with PeopleSoft implementation consultants to understand their perspective on how the new software modules and software upgrade will impact efficiencies and effectiveness Contacted four other counties to gather data on their staffing and organization related to selected accounting and finance functions November 24, 2015 Cowlitz County, WA Accounting Function Review
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Cowlitz County, WA Accounting Function Review
Background & Context Study requested by Board of Commissioners and facilitated by County Auditor Not a new topic for Cowlitz County or other counties Reviewed by Cowlitz County in 2000 Reviewed by other counties recently Completing significant software upgrade Major upgrade and five new modules Many streamlined and new processes Significant County investment: $3 million + November 24, 2015 Cowlitz County, WA Accounting Function Review
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Cowlitz County, WA Accounting Function Review
Background & Context Accounting functions definition Processing of accounts payable, payroll, accounts receivable and/or tracking grant revenues and expenditures Includes recording and compiling financial activity for County staff or other organizations Some overlap with “finance” functions: planning and decision-making based on financial activity Focus on larger departments: 81% of expenditures and 67% of 2014 transactions November 24, 2015 Cowlitz County, WA Accounting Function Review
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Cowlitz County, WA Accounting Function Review
Background & Context November 24, 2015 Cowlitz County, WA Accounting Function Review
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Cowlitz County, WA Accounting Function Review
Background & Context November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
Functional Consolidation The opportunity for efficiency through consolidating accounting functions is limited Accounting activity is already concentrated in larger departments where there is also dedicated staffing resources Accounting transactions per estimated accounting FTE is higher in larger departments Accounting work is highly integrated with program operations in all departments but especially smaller ones November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
Current/Former Process Challenges Accounts payable process is paper driven and processed in batches Department time sheet review/correction process is cumbersome Financial reports are difficult to obtain Many departments use separate Excel spreadsheets or data bases to track activity Detailed and real time information on accounts receivable and revenue is lacking November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
Current/Former Process Challenges Internal services billing process is time consuming and paper driven Accounting and finance support department roles are not always clear Limitations on process and timing for new employees to be set up in the payroll system November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
PeopleSoft Implementation PeopleSoft implementation has/will streamline many accounting and related processes and should deliver staff time savings “Procure to Pay”: automated approvals and streamlined accounts payable processing Automated internal billing Time and Labor: Better payroll time reporting – CHAMPS replacement Streamlined Personnel Action Form processing November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
PeopleSoft Implementation PeopleSoft implementation should support enhanced financial management Expanded Projects Module functionality and use – especially with grants Better access to financial data (assuming reports and training are provided) Ability to analyze data to identify opportunities for savings or other efficiencies Enhanced budget support/controls November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
PeopleSoft Sustainability Challenges The County faces several challenges in fully realizing the benefits of its system investment Single source expertise Limited support resources focused on system maintenance and not enhancements High skill level and experience in most areas but not a lot of depth Unclear ability to sustain cross-department work groups that made implementation a success November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
PeopleSoft Sustainability Challenges PeopleSoft consultants recommended that the County address staffing gaps and succession risks: Controller Human Resources/Benefits Analyst Project Costing and/or Grants Analyst Additional staff resources to support purchasing and asset management November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
Other County Experience November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
Other County Experience November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
GFOA Best Practices Grant Management Encourage multi-disciplined review Have administrative support/systems in place Purchasing Cards Consider using to improve the efficiency of the purchasing process – especially for small amounts Have written policies and procedures that are updated regularly Make sure systems are in place to monitor use November 24, 2015 Cowlitz County, WA Accounting Function Review
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Principal Observations
GFOA Best Practices Indirect Costs/Internal Charges Use team approach to developing/updating Review with “customers” annually Payment Consolidation Consider using payment consolidation to improve the efficiency of the payment collection process Complete a cost-benefit analysis of any proposal Review/make system and process changes November 24, 2015 Cowlitz County, WA Accounting Function Review
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Primary Opportunities
Efficiencies Limited opportunity for direct cost savings but new capacity will be created “Substitution” effect of streamlined processes and better access to more data Time saved on accounting functions & other tasks to be redeployed to support program delivery Time saved in extracting and manipulating data to be redeployed to analysis and result in better information and decisions November 24, 2015 Cowlitz County, WA Accounting Function Review
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Primary Opportunities
PeopleSoft System Functionality Realizing opportunities associated with new functionality will require ongoing investment New positions to create depth of expertise, train users and support new reports/features/processes Adequate system administration & user support Time for existing staff to develop and share their expertise in specific modules Assessment/implementation of new modules IT support for maintenance and upgrades November 24, 2015 Cowlitz County, WA Accounting Function Review
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Primary Opportunities
Other Opportunities Explore use of remittance processor for utility bills and property tax payments Explore expanded use of Projects module in Public Works and grant accounting Clarify accounting/finance support roles and document policies and procedures Review and use GFOA best practices for grant management, purchasing cards and cost allocation plans November 24, 2015 Cowlitz County, WA Accounting Function Review
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Questions/Discussion
Acknowledgements Report Availability Questions/Discussion Thank you! November 24, 2015 Cowlitz County, WA Accounting Function Review
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