State of Michigan Time & Expense Project

1. State of MichiganTime & Expense Project NASC/NSAA Middle Management Conference April 16, 2008

2. Agenda • Introduction • Current Problems and Goals • Project Scope • Project Objectives • Project Approach • Current and Future Process • Use Case Excerpt • Potential Expense Entry Form • Change Management

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

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

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

6. Project Approach • Phase I – May 2008 • Migrate DCDS to Powerbuilder 10.5 • Complete selected action items • Oracle client upgrade • Phase II – January 2009 • Expense “Light” • Enhance DCDS for Expense “Light” • Break tie bar I • Phase III – January 2010 (tentative) • Expense “Full” • Time and Activity web entry • Break tie bar II • Phase IV – October 2010 (tentative) • Equipment distribution enhancements Software Engineering Methodology (SEM) Project Management Methodology (PMM)

7. Current Reimbursement Processes • Reimbursements recorded in MAIN FACS • HRMN  MAIN FACS Interface • Employee “retirement” flags (for social security and Medicare tax withholding purposes) • MAIN FACS  HRMN Interface • Taxable Travel reimbursements • Procedural inefficiencies • Tax withholding and reporting • Semi-weekly tax deposits • Withholding rates • State and local withholding • Taxable travel adjustments • Separate payments • Manual calculations and dual entry • Reconciliations • Vendor file maintenance • Initial vendor registration • Direct deposit information • Address and name changes • SSN privacy

8. System Flow – Future Process

9. Sample Use Case (Excerpt)

10. Potential Expense Entry Form

11. Change Management • Broad user community involvement vs. workgroup approach • HR & Finance End Users • Various communications and meetings • End user documentation • Training – CBT and other • Employees • Various communications • Coordination with CSC and OSE • Coordination with departments

12. Questions?