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Productivity Committee Administrative Efficiency Task Force COLLIER COUNTY PRODUCTIVITY COMMITTEE A r ,IMIeTD ATni! cFFI''FNCY TASK FORCE MINUTES OF SEPTEMBER 14, 2005 MEETING 1 Attending: Joe Swaja, Chairman Steve Harrison, Task Force Leader Syd Blum John Barlow Dexter Groose Stan Farnham Len Price Crystal Kinzel Carol Golightly The purpose of the meeting was to identify administrative processes where further collaboration between the staffs of different Constitutional Officers and Districts could result in benefits to all parties. Further, our objective was to build consensus among representatives of the largest constitutional offices for any such recommendations before presenting them to the Constitutional Officers at a meeting scheduled for November 9, 2005. The Productivity Committee members and County employees present agreed at the conceptual level that consolidation of two HR functions....employee Recruitment and Payroll Processing...were likely to have favorable impacts on the efficiency of each Constitutional Office and have no appreciable impact on the performance of the Constitutional duties. A third area, the gradual rationalization of position and performance evaluations, fringe benefits, and other HR matters was deemed to be highly desirable for reasons of both cost reduction and the ability to move employees between Constitutional Offices to better utilize critical employee skills. A decision was made and approved by those present to send a letter to each Constituional Officer requesting the following information: Number of employees involved in processing payroll 2005 Annual budget for payroll and related employment expenses Number of total employees in the Agency Identity of system(s) used for timekeeping and payroll Annual out-of-pocket expenses associated with recruitment and payroll processing Syd Blum and Joe Swaja agreed to prepare this letter. Mr Blum proposed, and the Productivity Committee agreed, to request that the Florida Legislature redefine the wages considered in calculating retirement benefits under the State of Florida Retirement Plan to exclude overtime earnings. This request was forwarded to Debbie Wight for addition to the Legislative Agenda meeting now scheduled for November. The meeting was adjourned by Chairman Swaja at 11:30AM. ADMINISTRATIVE EFFICIENCY STUDY RECOMMENDATIONS 1) Calculate and monitor the cost per employee of accounting by Agency. Who has the lowest cost per employee? Why? How can others benefit from the lowest cost processor? 2) Take steps to standardize payroll processing by(a)reducing the number of variations in payroll policies and practices, and (b) reducing the number of variations in payroll allowances and benefits 3) Standardize, consolidate and automate standard processes as much as possible for a. Purchasing-Receiving-Accounts Payable b. Time-keeping-Payroll May need to standardize on one large ERP system, one small system, and one web based translation system to connect specialized applications to the ERP Systems. 4) Evaluate outsourcing of payroll processing 5) Consolidate staffs processing standard processes to achieve "critical mass" enabling (a) greater efficiency, (2)greater control/consistency, and(3) more sophisticated financial management. Bulk of staff appear to be processing routine transactions not analyzing costs and processes to help management identify improvement opportunities. 6) Complete any unfinished SAP implementation/conversion projects; document those deemed not worthy of completion and explain why not and what are the currently recommended alternatives. 7) Document accounting requirements not met by SAP and currently met by FMS 8) Do not spend additional resources maintaining FMS software...replace with SAP or whatever ERP system is selected as standard for large organizations. 9) Together with IT, prepare Financial Organization/Systems Development Plan consistent with recently updated Collier County Build-Out Plan. 10) Hire CFO to spearhead review of above processes and projects including the identification of benefits to taxpayers and the individual Agencies of various initiatives. 11) Develop Performance Measurements and Reporting appropriate to each Agency. 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