Electronic Timekeeping Team Lead Lisa Goetz Team Members Lisa Goetz Matt Rigg Linda Schild Phil Sheehy Eric McArtor Tom Haddock Joe Hamelin Karen Cheser Process Owner Lisa Goetz Champion Lisa Goetz
Team Charter Electronic Timekeeping Milestones Define 03/10/2016 Measure 05/01/2016 Analyze 05/31/2016 Improve 06/06/2016 Control 07/01/2017 Team Members: Process Owner: Lisa Goetz Team Leader: Lisa Goetz Team Members: Lisa Goetz, Matt Rigg, Linda Schild, Phil Sheehy, Eric McArtor, Tom Haddock, Joe Hamelin, Karen Cheser Business Case Statement Boone County Schools have the opportunity to create an efficient, paperless time keeping system. The current process consumes $350,000 in time and materials and the current cycle closing takes a minimum of five days. Problem Statement The current process is labor intensive. For example, in payroll, five payroll bookkeepers and the payroll administrator spend a minimum of five days preparing payroll for 3,600 employees. The bookkeepers review an average of 1,700 timesheets and 3,000 absence cards every pay period. Correction of timesheets, budget coding, reclassifications and/or verifications can take up to three days per bookkeeper per pay period. Goal Statement We expect an accuracy rate of payroll data at 99% for all employees. Reduce the payroll processing cycle time from five days to three days. Reduce labor hours devoted to the payroll process from 160 hours to 100 hours for payroll bookkeepers. Reduce the financial secretary s time spent managing the payroll process from 20 hours per pay period to 10 hours per pay period. Use current staffing levels to absorb workload associated with addition of new schools and staff. 2
Electronic Timekeeping S I P O C Suppliers Inputs Outputs Customer Employees Supervisors Timesheets Budget coding Employee data Time reports Pay checks Employees High Level Process Start Employee enters time according to approved schedule Campus User reviews time daily Supervisor approves time at end of pay period Payroll processes time Verification of taxes, benefits, dues, accruals and other withholdings Payroll issues checks End 3
Define Voice of the Customer and Voice of the Organization Voice of Customer Insert graph or other info about customer data collection (monitoring plan to make sure process is running on time Employees want to be paid accurately and on time Voice of the Organization Labor hours associated with the payroll process Compliance with laws and regulations Employer wants to pay accurately and on time 4
Measure - Data Collection Payroll department conducted site visits to review processes and discuss potential move to electronic timekeeping Financial and budget analysis to determine feasibility of electronic timekeeping Conducted an investigation of electronic timekeeping systems through a Request For Proposal (RFP) Visited a similar school district who is currently utilizing an electronic timekeeping system to determine best practices and challenges 5
Measure Key Performance Indicators KPI Outcomes & Outputs Employee perspective Accurate and timely pay for all employees Organizational perspective Labor hours associated with payroll process - Error rate - Audit findings and notifications of noncompliance from regulatory organizations KPI Inputs & Process Metrics - Timeliness of data - Quality of data input including budget coding - Campus users daily review of time and authorization 6
Measure - COPQ Boone County Schools have the opportunity to create an efficient, paperless time keeping system. The current process consumes $350,000 in time and materials and the current payroll cycle closing takes a minimum of five days. Boone County Schools employs: Three full-time payroll bookkeepers who pay nearly 3,000 employees and substitutes every two weeks Two full-time bookkeepers who spend 35% of their time processing payroll for nearly 500 employees, while also fulfilling other duties unrelated to payroll for 65% of their time One full-time Payroll Administrator overseeing the payroll process and all five bookkeepers The value of time spent working on paper processes is approximately: $75,000 for bookkeepers and payroll administrator $15,000 for Principal time at each school in the district $210,000 for Financial Secretaries time calculated ($35,000 average salary x 25% of their time x 24 schools) The value of annualized hard costs is approximately: $30,000 for paper costs $20,000 for ink/printing costs Total Estimated Cost savings by utilizing an electronic process: $350,000 7
Visuals of One Two-Week Certified Payroll Cycle Certified Sub Cards first two weeks of school these cards, along with sub funding request forms, are processed by one payroll bookkeeper over a minimum of three days. Financial Secretaries take days to gather these cards and forms. The electronic process will eliminate these cards. Certified Absence Cards for the first two weeks of school. One payroll bookkeeper spends a minimum of two days processing these absence cards after each school s financial secretary has taken hours each week gathering them these cards will be eliminated with the electronic process 8 Dec-16
Visuals of One Two Week Classified Payroll Cycle This is a picture of all classified time sheets and absence cards from the first two weeks of school. These take one bookkeeper four days to process after financial secretaries spend days gathering them these will be eliminated with the electronic process. ( Note: this excludes food services and transportation which have separate time sheets ) This is a picture of the first two weeks of school classified sub time sheets. These take one bookkeeper 1 day to process after Financial Secretaries spend days gathering them these will be eliminated with the electronic process 9 Dec-16
Analyze - Process Analysis Employee enters time according to approved schedule: AESOP, the district s electronic substitute and absence tracking program, contains each employee s scheduled hours, which allows employees to enter absences, have the absence approved by his/her supervisor, and find a substitute for the hours to be missed by the employee. AESOP, in addition to the features of VeriTime, the district s newly acquired electronic time and attendance system that will collect positive time electronically, will create an electronic timesheet with all negative and positive time reflected in one place. With VeriTime, employees will scan in at a wall terminal, or computer terminal, which will gather the time each individual works instead of manual sign in sheets and paper time sheets. Employees can also utilize their own smart phones or wi-fi enabled devices to login and out. The electronic process of scanning in/out will save time: Typical scan in/out takes four seconds Four seconds daily multiplied by 175 school days for all 765 classified employees = 153 hours for all classified staff for an entire school year, WHEREAS The current manual paper process can take up to 15 minutes for each employee each payroll 15 minutes each payroll run multiplied by 26 payroll runs for all 765 employees = 4973 hours for an entire school year --- Estimated time savings of 4820 hours per year. 10
Analyze - Process Analysis Campus User Reviews Time Daily Currently, the campus user who manages each location s AESOP absence information could spend up to 13 hours a week hunting for employees who did not submit timesheets, sign-in for the day, and/or enter absence information into AESOP. Sometimes this occurs two weeks after the fact. The new process will reduce time spent tracking employee absence information to nearly one hour per week. This equates to a time savings of 12 hours per week during the 41 weeks of school for all 24 financial secretaries. 11,808 hours saved per school year. (12 x 41 x 24) 11
Analyze - Process Analysis Supervisor reviews time at the end of each pay period With the campus user reviewing the time entries daily, the supervisor will have the ability to electronically approve timesheets in batches with less chance for errors. Currently the supervisor may see paper time sheets up to two weeks after an event. Supervisors can review this information daily as needed. Approval will be required every other week for processing purposes. 12
Analyze - Process Analysis Payroll Process Time Currently it takes up to five days to process payroll. Manual time sheets for classified are re-verified one by one for manual errors Absence Cards are compared to AESOP entries. Exceptions are processed manually into the payroll for extra hours, overtime and docked hours. With the Electronic Process estimated three days for processing. The manual time sheets will be eliminated and math errors will be eliminated with the electronic scans. Absence Cards will be eliminated and verified utilizing VeriTime VeriTime links with AESOP electronically checked daily by campus users. Exceptions will be electronically calculated and output to the payroll processing program. 13
Analyze - Process Analysis Verification of taxes, benefits, dues, accruals and other withholdings The verification process will remain the same, however, payroll staff will have more time to thoroughly review each payroll run for accuracy. The additional review time will cut down on corrections in reporting to each retirement system, outside vendors, taxing agencies and each employee. 14
Analyze - Process Analysis Payroll Issues Checks Payroll must be submitted and uploaded electronically as an ACH file to the district s bank every other Wednesday before 6:00 pm in order to pay employees on Friday. Every payroll under the current manual system runs right up to the 6:00 pm deadline on Wednesday due to exceptions and issues. The new electronic system will result in a time savings that will allow the payroll process to occur much faster. This will also alleviate the last-minute stress of meeting the biweekly deadline to upload payroll information to the bank. 15
Improve Process Design Reduce the number of hours to process payroll Veritime AESOP PD Tracking Software ACA reporting Tools Increase Accuracy of Data Better budgeting data Reduction in Error Corrections Clear clarification of policy and procedures Simplify reporting to outside funding sources More Time Spent on Value adding projects Resource Utilization Goal Setting for college and career ready students 16
Improve - Pilot Findings CENTRAL OFFICE Central office currently has 55 people scanning in and out everyday with very few issues. The issues that we have addressed: Policy Clarification in regard to lunch break the district requires a lunch break for all staff. Flexing Time During a week the district allows for flexing time within a week. Equipment utilized for scanning wall scanner or laptops. The district will utilize a combination of both. 17
Improve - Implementation Plan Central office Paperless starting October 3, 2016 All paper timesheets and absence cards no longer required. All positive and negative time entered into AESOP and VeriTime. First School Erpenbeck Elementary October 31, 2016. After successful implementation at first school: Train all Financial Secretaries and Cafeteria Managers on required daily use of AESOP and VeriTime. Roll out VeriTime to remaining 13 elementary schools: North Pointe Burlington Collins Florence Kelly Stephens Ockerman Yealey Longbranch Goodridge New Haven Thornwilde Mann 18
Improve - Implementation Plan High School Rollout Plan: Cooper Ryle Conner Boone Middle School Rollout Plan: Conner Ockerman Camp Ernst R.A. Jones Gray Rollout complete and fully operational in all schools 8/16/2017. 19
Improve - Cost Benefit Analysis Annualized Hard Cost Savings estimated at: $30,000 for paper $20,000 for ink and printing Annualized Soft savings estimated at: $15,000 principal time $210,000 financial secretary time $75,000 payroll staff time Process of employees tracking their time reduced by 4820 hours Benefits: Employees, tutors and extra duty positions paid faster and more accurately. 20
Control The gauge as to determine how this project is progressing will be: The number of corrections campus users have to make each payroll. The number of errors payroll has to correct on coding each payroll. If the electronic process speeds up the entire payroll processing timeline. 21
Control - Process Management Importance of Training Finance and HR will provide training to all staff on how to utilize AESOP and VeriTime. Existing staff will receive short refresher courses via video on the district website. New staff will be trained during new hire orientations. 22
Key Findings (learnings) Key Findings Culture change Adapting to accountability as a result of the new method of recording work time electronic vs paper Key Concerns Reality check on time worked How long does it truly take to perform a job function What are the true costs associated with time spent performing job functions inefficiently Does the district have the funds to pay for true costs 23
Next Steps As of this date, we plan to: October 2016 eliminate paper timesheets and absence cards in Central office. Late October 2016 pilot the new payroll process at one school; Erpenbeck Elementary. Late October / Early November 2016 provide training to all financial secretaries on implementation of the new process. November 2016 through July 2017 - rollout to each school, visiting one by one for issues and providing training as we go. Overall goal that all schools be fully implemented by 08/16/2017 (first day of school). 24
Q & A 25