Item - 2013.GM26.20

This report responds to the Audit Committee request that the Deputy City Manager and Chief Financial Officer prepare a detailed and comprehensive analysis of all related costs to date and costs to completion of the  Financial Planning Analysis Reporting System (FPARS), including all anticipated financial and operational benefits of the FPARS project.

The FPARS project is a complex, business transformation and technology project, utilizing new SAP technologies, the first of its kind since amalgamation. The total project budget is $69.9 million with actual spending projected to year-end 2013 of $49.2 million. Total spending to the end of the project is currently estimated at $69.9 million, as the project is still underway. Ongoing operating costs to meet the meet the sustainment needs of the Financial Planning, Accounting Services, Pension, Payroll and Employee Benefits, Human Resources and Information and Technology Divisions will be $2.0 million and an additional 11 positions.

To date, ongoing salary and benefits savings of $5.646 million net has been identified through the use of the new PBF personnel expenditure planning capability. Capital savings of $2.03 million has been realized in the Financial Services' 2011 to 2020 Capital Plan with the deletion of a separate Business Information Warehouse Project, as the FPARS project will meet these needs. Other future benefits and savings will require further analysis once the FPARS project is completed and fully operational. Staff will be reporting back on the final costs and benefits at that time.