Summary of Needs for Community Action Partnership ... · Confidential Wipfli LLP 10000 Innovation...

Summary of Needs for Community Action Partnership

Financial, Payroll and HR Systems

September 12, 2019

Confidential

Wipfli LLP

10000 Innovation Drive Suite 250

Milwaukee, WI 53226

Table of Contents

Organization Overview ............................................................................................................. 2

Current Situation/Challenges/Issues ........................................................................................ 2

Impact of Issues ........................................................................................................................ 3

Vision for Ideal Solution ............................................................................................................ 3

Wipfli Systems Recommendation ............................................................................................. 4

Proposed Timeline .................................................................................................................... 5

Due Diligence/Decision-Making Process .................................................................................. 6

Appendix A – Cloud Fee Schedule ............................................................................................ 7

Appendix B – Pricing Options .................................................................................................... 8

Appendix C - Implementation Methodology ............................................................................ 9

Appendix D – iSolved Process and Approach ......................................................................... 13

Summary of Needs – Financial, Payroll, and HR for Community Action Partnership

© Wipfli LLP 2018. All Rights Reserved Confidential Page 1

Mr. Mark Schumacher Chief Financial Officer 124 New 6th Street Lewiston, ID 83501 Dear Mark: I am pleased to present our “Summary of Needs – Financial, Payroll and HR Systems” for Community Action Partnership (CAP). As we understand, you are seeking to find efficiencies in your fiscal processes and currently are experiencing limitations with your GMS accounting system. We have captured your primary concerns and needs and have provided you with guidance on moving to more efficient, fund-accounting, cloud-based applications. I appreciate the opportunity to present our solutions and services to you. We thank you for assisting us in confirming your needs. Please do not hesitate to reach out with any questions or comments. Sincerely, Brian Gaumont Partner [email protected] 608.270.2952

mailto:[email protected]



Organization Overview Community Action Partnership serves the ten northernmost counties in Idaho and Asotin County in Washington and works with communities throughout to provide programs that increase stability and projects that offer a springboard for families as they become equipped to exit poverty.

Current Situation/Challenges/Issues

CAP is currently using the following management systems that provide financial management, that directly interact with the financial management systems/processes, and that manage payroll and HR processes:

• Accounting: GMS

• Payroll: GMS

• Human Resources: Access Database

• Reporting: Excel

• Purchasing: Paper-based, manual process and GMS

• Fixed Assets: GMS

• Inventory: Access Database and GMS

• Allocations: GMS and Excel

• Budgeting and Forecasting: Excel

The following are some of CAP’s major financial management challenges and issues:

1. The accounting department is one of the key administrative assets of CAP, but are put at a disadvantage with a financial accounting system (GMS) that does not support efficient processes. The overall impact of these inefficiencies is:

a. Time wasted through heavily paper-based process that lead to duplication of effort.

b. Inefficient processes that have been utilized because “we have always done it that way”.

c. Reduced visibility and availability of timely financial data to make strategic decisions.

d. Higher risk of data inaccuracies through multi-step, multi-touch processes. 2. GMS contributes to inefficient processes in the following key areas:

a. System (Grant) setup b. Grant and allocation maintenance c. Reporting (agency-wide and program) d. Budgeting e. Monthly billing f. Procurement, including requisitions and POs



g. AP 3. Board reports take considerable time and effort on a monthly basis (1-2 days per month). 4. Program Managers rely on finance to provide them with financials and do not the financial

competency to fully own and manage their programs financial health. 5. GMS does not have dashboard capabilities, requiring “reporting running” to evaluate the

performance of the organization, programs, and units. The reporting capabilities within GMS do not allow for key performance indicators (KPIs) to be monitored, including both financial and non-financial KPIs.

6. GMS is being utilized as an on-premise application, which contributes to: a. On-going server maintenance and upgrade costs. b. Limited remote access to the application. c. Data vulnerability from on-site network. d. Versioning issues from upgrades and updates not taking place automatically

7. While you have created systems to track employee information, time off accruals and requests, etc. none of these solutions interact with GMS for payroll processing. They are also manual in nature. Rekeying of information increases the likelihood of errors.

Impact of Issues It is critical for the organization to provide accurate and timely financial reporting to streamline overall fiscal management operations for management and the Board to make strategic decisions. With CAP’s growth trajectory and with the lean nature of the admin departments, GMS is causing extra work on the finance team due to inefficient system processes. Wipfli has seen many Community Action organizations identify system and process streamlining as a strategic priority. In most cases, Community Actions agencies expect the following results from an improved accounting and payroll/HR systems and processes:

1. Cost savings from elimination of server(s) and non-value add activities. 2. Time savings from fiscal department and program staff. 3. Improved visibility and availability of timely financial data. 4. Operational efficiencies and environmental savings through diminished use of paper. 5. Lower risk of data inaccuracies from multi-step, multi-touch processes. 6. Improved morale of fiscal staff.

Vision for Ideal Solution CAP needs to build an accounting department (technology, people, and processes) that support the agency’s strategic growth. CAP aspires to find financial payroll and HR systems to improve their back-office processes and gain visibility to financial information. An ideal solution should include:

➢ Automate and/or streamline process that are currently “manual”; remove or reduce paper-based processes

➢ Software that is highly used and recommended by CAPs ➢ Easy-to-use software that provides ability for simple cross-training



➢ Ability to streamline the Chart of Accounts and leverage multiple dimensions for improved reporting segmentation

➢ Easy to use financial and ad hoc report writer ➢ Easy-to-understand dashboards for board members and programs managers ➢ Ability to including financial and non-financial KPIs in dashboards ➢ Reputable business partner that knows the industry ➢ Integration flexibility through the use of an open application program interface (API’s) ➢ Easy and accurate allocation methodology within the system ➢ Access to helpful support when needed ➢ Access software from anywhere, anytime (cloud-based technology) ➢ Cost-effective, well-supported, and easily configurable accounting solution that meets

GAAP accounting requirements ➢ Optional scalability for adding functionality/modules

CAP prefers a provider that can assess the requirements, advise on the best solution and strategy, plan and manage the implementation, train users, manage/support the environment ongoing, and also cover full development and integration of associated applications.

Benefits of Sage Intacct and iSolved Given the challenges and issues noted above, Wipfli has identified Sage Intacct (accounting) and iSolved (payroll and HR) as modern cloud-based alternatives for CAP. These systems would address the issues of accessibility, automating workflow, collaboration, visibility, and transparency into financial results.

Key Benefits of the Ideal Solution: Best-In-Class



Functionality

• An accounting solution that will provide full GAAP accounting

• Multi-dimensional Chart of Accounts architecture will allow for ‘tagging’ transactions - multi-dimensional data points (program, location, unit, restriction, donor, etc.), that can be easily reported on

• Drilldowns and dashboards for program managers, board, and senior management

• Boardroom style reporting

• Customized analysis of KPIs, budget variances, and other metrics

• Remote access from browser, nothing to install or maintain

• Reduce the need for paper;

• Keep all payroll-related information in one system;

• Single database design means a change in one area of the system populates the other areas where the information is needed, such as a new deduction being added automatically into the payroll portion of the system when an employee elects a new benefit;

• Ease of import and export of information into and out of the system;

• Elimination of other tracking documents/databases such as Access for employee information and spreadsheets for time off accruals;

• Elimination of the need to key duplicate information into multiple systems;

• Employee self-service;

• Role and rule-based security allows for staff to have access to everything they need in the system and nothing more; and

• Wipfli’s team of payroll, HR, benefit, and industry experts designing, building, testing, training, and supporting your solution and team.

Fit

• Open Application Programing Interfaces (“APIs”) to easily and affordably interface with other solutions.

• Rapid implementation of the solution Financial

• Offers a compelling return on investment and rapid payback, versus other industry-leading accounting solutions (i.e. GMS, Financial Edge, Abila MIP, ADP, PayChecks)

Future

• Solutions designed for nonprofits with a strong roadmap.

Proposed Timeline

We believe a new solutions should be implemented by January 1, 2020. Knowing this, we are projecting that a new solution could be ready for operation within a 3 to 4-month timeframe from project kick-off to go-live. To that end, we propose the following project timeline (please see Appendix C for more details on our implementation methodology).



Timeline/Goals Event

Completed Documentation of current processes and requirements (accounting, payroll, and HR)

Completed Demonstration of Sage Intacct and iSolved

August 30, 2019 Delivery of Summary of Needs

Week of September 16, 2019

Selection of software solution (accounting and payroll/HR systems)


Contract signing(s)


Project kick-off

Oct/Nov/Dec, 2019 Implementation ✓ Define ✓ Build ✓ Model ✓ Deploy

January 1, 2020 Go Live

Due Diligence/Decision-Making Process The completion of the joint due-diligence process is designed to enable you to determine whether entering into a partnership with Wipfli is the best way to help you resolve these business issues and achieve your objectives. Based upon our conversations, in order for this project to be justified internally it needs to have the following components:

1. Meet functionality requirements for process efficiency, cloud-based, multi-dimensional Chart of Accounts architecture, reporting, dashboards, workflows, security, audit trail, allocations, and data visibility

2. Accounting department and key stakeholders to see the value of the system, specifically in terms of process efficiencies and financial data visibility.

3. Rapid implementation by a team that works within the Community Action sector.



Appendix A – Cloud vs. On-Premise When Nucleus Research analysts investigated organizations that deployed cloud solutions for financial management, accounting, payroll and HR they found organizations were able to reduce their overall costs for maintaining and operating their back office departments, by eliminating the cost of hardware, perpetual software licensing, and reliance on IT staff. Costs for integrating cloud solutions with outside systems was also found to be lower than integrating with legacy ERP systems. But the reduction in overall cost alone is not always the most compelling reason to move back office systems. There must be compelling evidence of a return on the investment made in order for senior management, board members and other decision makers to make the investment in time and effort to make this move. Nucleus Research found that organizations moving to cloud solutions saw improvements in the areas of simplifying financial processing, reducing errors, and increasing productivity for finance, accounting, management, and employees. Nucleus found organizations gained flexibility from the cloud delivery model in supporting remote locations, reduced operating costs, and centralized financial operations. Nucleus found companies with multiple business units or transactions often gained significant benefits. The Yankee Group illustration here visualizes the need to analyze all of the costs of maintaining an on premise solution vs. the value of cloud, making an apples-to-apples comparison.



Appendix B – Pricing Options

Option 1

Option 2

Option 3

Improve financial operations to create efficiencies, reduce errors, and provide more visibility to board, management, and program staff on key financial data

Utilize a cloud-based, grant-funded nonprofit accounting system with Sage Intacct, including the following modules:

• Sage Intacct Financial Management (1 business entity) - $5,220

• 3 Business Users ($2,520/user) - $7,560

• 3 Employees User 10-Packs ($1,260/10-pack) - $3,780

• Sage Intacct Grant Management - $6,000

• Allocation Edge - $4,700

• Fixed Assets - $999

• Nonprofit Discount - ($4,512) Software Investment: $23,747 Professional Services Investment: $39,800

Everything in Option 1 PLUS: Leverage Wipfli for additional go-live support and an annual consulting contract to minimize any onboarding concerns. Service Investment: $5,000/year

Everything in Option 1 and 2 PLUS: Review and update of your financial policies and procedures manual to reflect changes in your process, include industry best practices, and remain compliant with Uniform Guidance. Consulting Investment: $5,000

Streamline payroll processes and tax filings, while leveraging more robust and integrated HR tracking technology*

Full payroll tax reporting and payments for federal, state and local State new hire reporting Direct deposit and check printing HRIS system/Employee self service Vacation/PTO tracking Annual W-2 Reporting Self-Service online benefits enrollment Online benefits tracking ACA Reporting Time & Attendance Set-up Fees: $3,100.00 Est. Monthly Fees: $800.00 Est. Year End Fees: $1,025.00

N/A Everything in Option 1 and 2 PLUS: Paperless Onboarding Applicant Tracking Set-up Fees: $3,100.00 Est. Monthly Fees: $1,115.00 Est. Year End Fees: $1,025.00

Total Estimated Fees Annual Subscription Fees: $33,347 One-Time Consulting Fees: $42,900 Est. Year End Fees: $1,025.00

Annual Subscription Fees: $33,347 One-Time Consulting Fees: $42,900 Est. Year End Fees: $1,025 Annual Service Fee: $5,000

Annual Subscription Fees: $37,127 One-Time Consulting Fees: $47,900 Est. Year End Fees: $1,025 Annual Service Fee: $5,000



Option 1

Option 2

Option 3

Add On Items • Work Opportunity Tax Credit

• Garnishments/3rd Party Payments

• Delivery Fees

• Custom Reports

• Off cycle payroll or rerun payroll

• Retirement Plan Analysis-Complimentary

Notes • Fees based on 65 employees, semi-monthly with 65 W2’s and 65 1095s at Year End. Fees will fluctuate as employee

count fluctuates.

• Fees will be pulled via ACH with the first check run of the month



Appendix C – Implementation Methodology The key to our success in providing best practices financial management, accounting, payroll and HR implementation services has been from following our customized implementation methodology. Our approach ensures that we utilize a consistent approach and a standard set of tools and templates that help ensure our projects are completed efficiently, drive business value right away, and reduce your risk. Wipfli’s implementation methodology is a delivery framework of phases, tasks, and milestones throughout the project. The key project phases are as follows:

Phase I – Acquire This is the phase that we are currently in where our focus is on understanding your current systems and process, what your desired state looks like, and matching your needs with the best solutions that are available in today’s market. Once a solution is identified we gain an understanding of the level of effort to successfully implement the system(s) for you and provide you with a Project Scope. Once agreements are in place, we meet with our service delivery teams to assign a Project Manager and Consultants that align to your specific configuration, industry, and timeline. Phase II - Define The overall goal of the Define phase is to define the highest-value approach to implementing the Sage Intacct and iSolved systems to meet your needs. To begin this phase, we will meet with you to further understand your goals and expectations as well as the strategic context and intent of the Project. We will jointly review and mutually agree on the detailed Project Plan and milestone dates aligned with your needs. We will also offer Sage Intacct and iSolved product overview training to your key resources to enable productive participation in the configuration requirements process. The training provides an overall look at the Sage Intacct and iSolved functions and features being implemented. It covers all functional areas of the application which are considered in scope for the Project.



We will conduct interviews and small group workshops to gain an in-depth understanding of your business and Sage Intacct iSolved related product requirements, chart of accounts design, data migration/conversion needs, and plans for end-user training. Phase III - Design Details captured from the previous phase are documented and the design of your system begins to take shape. The key deliverables during this phase include: a Functional Requirements Document (“FRD”), the initial data migration/conversion approach, and the end-user training plan. Phase IV - Build In the Build phase, we enable your new business capability by configuring the Sage Intacct and iSolved production environments based upon the requirements in the FRD. We also work jointly with you to perform the initial master record and historical general ledger data uploads into the new Sage Intacct system, as well as bring over key employee information into iSolved. The key deliverable from this phase is a configured Sage Intacct system loaded with your master records and historical data and ready for the next phase, as well as to have critical employee details brought into iSolved. Phase V - Validate In this phase, you will test your new systems and end-users will begin their training on their new business capabilities. This includes Wipfli performing high-level product testing of your implementation to ensure it functions as intended. Your end-users will use the Sage Intacct Learning Center and provided iSolved resources to complete their on-demand, self-paced training. After being trained, your end-users will also perform their own User Acceptance Test (UAT) to ensure the system is ready for ‘go live’ in the production environment. The key deliverables from this phase include proficient end-users and a configured and user-accepted Sage Intacct and iSolved systems ready for deployment. Phase VI - Deploy The Deploy phase includes all planning and production readiness activities leading up to and including the final system ‘go live’ deployment to the end-users and transition of the application management responsibilities to the ongoing support unit (power user). In addition, we will work jointly to upload all open bills/invoices as of the go-live date as well as any remaining historical general ledger data. The key deliverable from this phase is a successful deployment of your Sage Intacct and iSolved systems in the production environment. Phase VII – Support Shortly after going live we will transition you to support and schedule an official transition meeting. At the meeting we will work with the support team to communicate the setup and configuration in use and explain how to contact the technical support team and obtain assistance.



Wipfli is also available to assist you with other future project-based work such as Sage Intacct and iSolved module enhancements, additional training, new module implementations, system customization, and system integration and report writing to meet your changing needs. Lastly, through our Wipfli account management process, we will continue to communicate with you about the new releases of Sage Intacct and iSolved, as well as the new features that can be utilized by leveraging the most current version of the software.



Appendix D – iSolved Processes and Approach Applicant Tracking & Onboarding (one-year commitment required) Simplify your hiring and onboarding processes, improve the employee experience and save valuable time and money for your business. With Wipfli’s robust applicant tracking system, your new hires can leverage a single, secure and user-friendly online platform to complete and organize all of their onboarding materials — no paper required. As the employer, you gain complete visibility over the entire process, allowing you to monitor new hires’ progress with onboarding and offer assistance as needed. You can also leverage the system to reap greater tax savings for your business, with features that allow you to cull employees for federal tax credits like the Work Opportunity Tax Credit (WOTC).

How We Help

• Provide all required forms/documentation to maintain regulatory compliance, plus additional forms/documentation customized to your business needs

• Offer “hire-to-payroll” services to ensure timely onboarding and payments to new employees

• Provide support with maintaining Equal Employment Opportunity (EEO) compliance

• Distribute online applications for optimal ease and efficiency

• Share guidance and support for leveraging tax credits

Paperless Employee Documentation Paper documents are still used by many organizations for new hire paperwork, performance evaluations, performance improvement plans, employee handbooks, and compliance related documents. Someone on your team has to physically print, distribute, collect, and file the documents which takes time away from more strategic tasks. Most likely they spend a large amount of their time keeping track of who has and hasn’t completed the paperwork and hunting down employees that have not completed their paperwork. Paperless employee documentation makes the process much more efficient for both the organization and employees.

How We Help

• Provide an automated process to distribute, collect, and file employee documents electronically

• Access to a library of standard documents ready for electronic signatures and the ability to transform your organization’s current paper documents to an electronic format

• Increases the capacity of staff currently responsible for printing, distributing, collecting, and filing paper document allowing them to be more productive

• Cloud-based storage increases office space by reducing the need for filing cabinets



Employee Benefit Management Phase out cumbersome, paper-based processes, reduce headaches and boost efficiencies with Wipfli’s online benefits administration system. From designing your benefit plans to tracking eligibility, the platform will provide you, your stakeholders and your managers with valuable insights into employees’ progress through benefits enrollment. Employees also have access to their own personal portal, allowing for hassle-free self-enrollment and up-to-date communication of important details related to benefits. You can also leverage the system to ensure your processes are in line with local, state and federal regulatory compliance requirements.

How We Help

• Provide simple, self-service online benefits enrollment

• Implement direct carrier feeds designed to automate and integrate the enrollment process

• Provide online benefits tracking, allowing for real-time data and reports on enrollment progress

• Offer mobile accessibility, allowing employees to monitor their benefits at their own convenience

Time & Attendance Like most business owners, a large portion of your labor cost likely can be attributed to manual timekeeping, whether it’s through paper time cards or a simple spreadsheet. Offload the responsibility, save costs and simplify your approach with our automated and integrated time and attendance solution. Build and track your employees’ schedules on one, easy-to-use platform, with the ability to tailor functions based on shift frequency, availability and company policy. Stakeholders and managers can gain real-time, instant access to attendance reports for their team, as well as updates on absence, tardiness and overtime worked. Employees can also use the platform to keep tabs on their schedules, track PTO and vacation accruals, and submit requests for time off.

How We Help

• Provide fully automated time-off requesting, scheduling and employee time tracking

• Grant access to a fully integrated, self-service portal tailored to both managers’ and employees’ needs

• Offer a user-friendly mobile app for managing and tracking punches, time cards, time-off requests and other related functions

• OPTIONAL FUNCTIONALITY – Geo-Fencing – uses Google Maps to create geographical boundaries around defined locations and sends an alert to the employee’s manager when the employee uses a mobile device to punch in from outside of the boundary. Great for employers with field staff.



Payroll & Human Resources Your payroll and human resource (HR) functions are essential to your relationship with your employees. Using a cohesive, all-in-one digital platform and broad experience across the human capital spectrum, our team will implement industry-leading payroll and HR solutions designed to benefit both your workforce and business. Our platform gives stakeholders and managers instant access to crucial payroll information, plus features that allow you to spot errors and inaccuracies before payroll is processed. You can also use the tool to manage PTO and vacation accruals, view reports on new hire progress through onboarding functions, access information on adjustments to compensation and job role, view historical performance evaluations and more.

How We Help

• Provide fully integrated support with retirement plan administration, advisory and reporting

• Grant access to a self-service manager and employee portal

• Leverage digital features to assist with monitoring new hire processes

• Manage general ledger reporting to ensure that your payroll information is entered appropriately and efficiently

• Provide direct deposit, paper checks, or pay cards

• Manage tracking for paid time off (PTO) and vacation accruals

• Conduct job costing in order to track hours and expenses spent on projects

• Provide comprehensive payroll tax payments and filing

• Leverage a completely integrated human resources information system (HRIS)

• Support wage garnishment processing and reporting

• Support workers compensation reporting

• Manage and distribute basic reports, and provide access to a report writer



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