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PROPOSAL:

Implement Recommendations to Modify AQMD Policies and Procedures for New Finance and Human Resources System

SYNOPSIS:

As part of the implementation of the new integrated Finance and Human Resources System, the consultant has recommended changes to our current business practices to streamline our processes and make the best use of the new system’s capabilities. The changes, if approved by the Board, will require revision to the Procurement Policy and Procedure, administrative policies and procedures for fixed assets and related policies as needed. Final changes to these AQMD policies will be brought back to the Board for approval. Approval in concept is required at this time in order to meet the January 1, 1999 "live" date for implementation of the new Year 2000 compliant system.

COMMITTEE:

Administrative, September 18, 1998, Recommended for Approval

RECOMMENDED ACTION:

Approve in concept the recommended changes to AQMD’s Procurement Policy and Procedure, administrative policies, and related policies and procedures.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

On April 10, 1998, the Board authorized the Executive Officer to execute an agreement with Mikon Computer Systems for new financial/human resources software, hardware, and implementation services. Although the primary motivating factor for acquiring a new finance system was Year 2000 compliance, there is also a need to keep up with current technology and to enhance the functionality of the overall finance system, eliminating duplicate effort where possible and integrating processes that access the same data. The implementation subcontractor retained by Mikon Computer Systems has reviewed AQMD’s current business processes and is recommending several changes aimed at streamlining our work flow to make use of best business and accounting practices. The goal is to eliminate bottlenecks in the approval process wherever possible while at the same time ensuring proper checks and balances and timely summary level reports.

Proposal

RFQ and RFP Process

• Currently, all RFQs and RFPs for budgeted items over $50,000 require approval by the Board prior to release. It is recommended that AQMD policies and procedures be revised to eliminate this requirement except for those RFPs or RFQs which deviate from approved AQMD policies and procedures. Instead, a report listing all RFQs and RFPs scheduled to be released within the next month will be included in the Board’s monthly agenda package. Such action will provide adequate time for Board requested review of any RFPs or RFQs.

  Benefit: Elimination of Board approval of RFPs and RFQs on items already approved in the budget will greatly reduce the amount of staff time spent in preparing and approving individual Board letters as well as Board member time spent in reviewing these items. The goal is to streamline the process for release of RFPs and RFQs which comport with AQMD policies and procedures and keep the Board fully informed on a monthly basis of upcoming AQMD solicitations.

• AQMD policies currently define fixed assets as those items having a total acquisition cost of $1,500 or more. It is recommended that this dollar amount be increased to $2,500.

  Benefit: Information received from our consultant regarding the current industry trends in establishing dollar thresholds for fixed assets and our survey of other agencies revealed that our dollar limit is low. This change would result in accounting changes for capitalization but that controlled items under $2,500 would still be tracked in our system.

Resource Impacts

Administrative and cost savings as noted above.

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