UCPath Program Academic Business Officers Group April 14, 2015
UCPath Program Update April 2015 Brief program overview Current program status Replanning UCOP go-live and beyond Key status updates 2
What is UCPath? UCPath is the University of California s priority program to implement a single payroll, benefits, human resources and academic personnel solution for all UC employees The largest administrative project in UC history UCPath will: 1. Standardize payroll and HR processes systemwide 2. Centralize certain HR/APO and payroll transactional processes within the UCPath shared service center 3. Replace UC s 35-year old Payroll/Personnel System (PPS) with a single new payroll and HR technology system UCPATH = UC Payroll, Academic Personnel, Timekeeping* & HR *Timekeeping is still under consideration for a later phase. The focus of the current phase is Payroll, Benefits, Absence Management, Compensation and Workforce Administration. 3
Why UCPath? UCPath is part of an effort to create business efficiencies that ensure the University maximizes the resources available to teaching, research, and public service. Sustainability/Cost/Risk UC s current payroll system is 35 years old and its frailty puts payroll at risk for our roughly 190,000 faculty and staff. In 2014 UC was required to produce approximately 279,000 W-2s UC s current processes and technology no longer meet the needs of our complex and diverse employee population (faculty, unions, students, etc ) UC performs more manual calculations, workarounds, corrections and paper processing than peer institutions Current payroll processing is highly manual, error prone and costly to maintain The cost for each campus to install its own replacement system would be significant and the ongoing operational costs would be exponentially more than installing and maintaining one shared UCPath system 4
Benefits to the University of California UCPath provides a platform for transforming the way UC provides administrative services. Through UCPath, the University of California will gain: A foundation for future business efficiency A shared services center that handles transactional processing and provides consistent service to all UC locations An opportunity for campuses to re-envision and optimize the delivery of local services, starting with human resources, academic personnel, and payroll The ability to better meet our complex operational and workforce needs with: o o o o o Better data quality Better regulatory and policy compliance Lowered risk A comprehensive view into the effectiveness of UC s business practices More agile business planning 5
Program History Early process design Inventory and analysis of nearly 1200 existing interfaces Recruitment effort Opened UCPath Shared Service Center in Riverside Launched project teams at all UC locations Began business process design and standardization Conducted initial system design, development and configuration Upgraded PeopleSoft (to 9.2) Standardized 100+ common UC-wide business processes Improved program governance process Defined a deployment strategy (pilots first, integrate key learnings for future deployments) 6
Progress toward UCPath goals Completed: Collaborated with UC experts from all campuses and health systems to review proposed UCPath business Standardized over 100 HR/payroll and other business processes to be supported by a common technology platform and service center Launched: Implemented systemwide shared services center in Riverside, CA Began supporting initial set of UCLA and UC Santa Cruz payroll processes accelerating delivery of value from the UCPath Center Delay and Resolution: Testing results did not support the planned Dec. 2014 deployment for UCOP Resolved critical technical issues Deepened data-driven planning and monitoring Stronger reliance on internal UC experts to align with locations and reduce external costs 7
Progress in Key Areas April 2015 Cleared up many issues that prevented UCOP December deployment. Target date for UCOP to deploy UCPath is September 2015. Began Meetings with non-pilot locations to discuss next steps and finalize their deployment dates, with a goal of making up time lost to the UCOP delay. Completed functional unit testing (FUT) activities needed to begin system integration testing (SIT) on time. Remaining FUT activities will run in parallel with SIT SIT began on April 6. Teams are coordinating activities with UCLA and training UCPath Center; Functional teams have completed reviews of over 75% of SIT cases.. UCPath Center staff began supporting UCLA and UC Santa Cruz PPS payroll processes in advance of their UCPath deployment. The conversion team completed SIT-required conversion runs for both biweekly and monthly UCOP employees and worked with the UCOP team to validate the converted data based on UCOPidentified critical fields. Began development or training content and conducted UCPath Fundamentals course for the UCPath center staff. Transitioned desk reference support to UCPath Center s production team. 8
Current system work on track FUT testing is the last step of development, during which functionality is tested for alignment with the design. FUT is the key dependency for entry into the next significant milestone for UCOP deployment: system integration testing Completed 90% of functional unit testing (FUT) activities, a critical milestone needed to begin system integration testing (SIT) on time. Remaining FUT activities will run in parallel with SIT. UCOP Steering Committee unanimously approved beginning SIT as scheduled on April 6 UCOP approved the removal of 22 enhancements and interfaces from the pilot scope plus an additional 6 were removed from overall FUT scope, reducing the total from 190 to 162. 9
UCOP UCPath Deployment Timeline
Remaining locations Current sequencing Goal is to make up some time lost in 9 month UCOP delay. Reducing number of deployments eliminates 6 months total of predeployment prep work Potential sequencing More effective collaboration with UC experts during implementation *Will finalize new dates with all locations by Summer 11
Program support of campus UCPath deployment UCPath provides a platform for efficiency, but campuses will make organizational and process decisions based on local needs. Program Campus Determine what work would be done at the UCPath Center Build and deploy new technology, and work with systemwide leaders to ensure its support Create shared services center to support campuses based on service agreements Provide tools and guidance for campuses to adjust organizational design, determine technology needs, deploy new technology, and support change management Determine local service delivery model in response to UCPath, including: Staffing Local roles and responsibilities Develop local processes to support standardized ones Define unique technology needs related to UCPath Ensure staff and faculty are informed and have appropriate representation in program 12
Engagement and deployment model Engagement Deployment Methodology to get the right information to the right people at the right time throughout the deployment Specify timing and needed effort to enable locations to set priorities, plan effectively and allocate resources Clarification of roles and responsibilities between the UCPath central team, UCPC team and location team(s) Escalation path for resolving differences between stakeholders and teams Continuous improvement built into model Template-based, bottoms-up plan for pilot and remaining location deployments Description of major activities, milestones and timing An organizational structure that both supports and maintains consistency with current project structure Criteria and method for determining when and how support is provided Go-live dates for every location Irvine April 3 Riverside April 27 Santa Barbara April 8 ANR April 28 San Diego April 21 San Francisco May 6 Davis April 23 Berkeley May 8 13
UCPath Center People Staff required for UCOP go-live: currently in place Recruitment planning underway for remaining locations Technology Began supporting initial set of UCLA and UC Santa Cruz payroll processes accelerating delivery of value from the UCPath Center Working closely with the Central UCPath team to carry out functional unit testing (FUT) Employees preparing to participate in system integration testing (SIT) in Oakland and Riverside. Gearing up to lead User Acceptance Testing Working to ensure UCPath Center technologies meet the needs of post-ucop populations such as faculty at UC Santa Cruz and medical employees at UCLA 14
UCPath Center serving UCLA and UC Santa Cruz Processes UCPath Center has started supporting UCLA and UC Santa Cruz with some of the 12 payroll-related services Additional processes will be added by mid-april. During the first weeks, The center handled 1650 calls and transactions for pre-pay direct billing, consolidated billing, prepay account validation, I-9, garnishments and verification of employment Location Process Description UCLA UCLA UCLA Verification of Employment Select Tax Reconciliation and Audits Federal, State, Social Security Taxes Responding to written and verbal requests for Verification of Employment. Performing local reconciliation and audits of taxes paid using financial system and labor ledger reports. Reporting and payment of federal, states and social security taxes. UCLA W-2Cs Completing and filing W-2Cs to reflect adjustments. UCLA Out of State Tax Processing Processing and reconciling taxes for out of state employees. UCLA I-9 Auditing Post-audit of I-9 work authorization process. UCLA Unemployment Insurance Processing Unemployment Insurance claims and reporting. UCLA UC Santa Cruz Garnishments Pre-Payments (Direct Billing) Processing, reconciling, and providing customer service for wage garnishments. Processing direct payments from employees on leave to ensure continuation of benefits. UC Santa Cruz Pre-Pay Account Validation Reconciling the pre-pay account by researching discrepancies and completing journal entries to clear outstanding balances. UC Santa Cruz UC Santa Cruz Consolidated Billing Reconciliation Garnishments Reconciling out of balance transactions for the consolidated billing account. Processing, reconciling, and providing customer service for wage garnishments. 15
Thank you Questions & Discussion