Electronic Timekeeping Star/Storyboard_BooneCo...Analyze - Process Analysis Employee enters time according to approved schedule: • AESOP, the district’s electronic substitute and

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

2© 2009 APQC. ALL RIGHTS RESERVED.

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, re-classifications 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.

Electronic TimekeepingMilestones

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

Team Charter


PS I O C

Electronic Timekeeping

Suppliers Inputs Outputs Customer

• Employees

• Supervisors

• Timesheets

• Budget coding

• Employee data

• Time

reports

• Pay

checks

• Employees

High Level Process

Start End

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


Define Voice of the Customer and Voice of the Organization

Insert graph or other info about

customer data collection (monitoring

plan to make sure process is running

on time

Voice of Customer

•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


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


Measure – Key Performance Indicators

KPI – Outcomes & OutputsEmployee perspective – Accurate and timely pay for all employeesOrganizational perspective – Labor hours associated with payroll process- Error rate- Audit findings and notifications of non-compliance 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


Measure - COPQ

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

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.


Visuals of One Two-Week Certified Payroll Cycle

Dec-16

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

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.


Visuals of One Two Week Classified Payroll Cycle

Dec-16

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


Analyze - Process AnalysisEmployee 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.


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)



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.



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.



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.



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 bi-

weekly deadline to upload payroll information to the bank.


Improve – Process Design

•Veritime

•AESOP

•PD Tracking Software

•ACA reporting Tools

Reduce the

number of hours

to process payroll

•Better budgeting data

•Reduction in Error Corrections

•Clear clarification of policy and procedures

•Simplify reporting to outside funding sources

Increase Accuracy of Data

•Resource Utilization

•Goal Setting for college and career ready students

More Time

Spent on Value

adding projects


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.


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


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.


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.


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.


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.


Key Findings (learnings)

Culture changeAdapting to accountability as a result of the new method of recording work time – electronic vs paper

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

Key Findings Key Concerns


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).


Q & A

Electronic Timekeeping Star/Storyboard_BooneCo...Analyze - Process Analysis Employee enters time according to approved schedule: • AESOP, the district’s electronic substitute and

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