Warsaw Schools to Invest in New HR Software
July 28, 2016 at 4:25 p.m.
By David [email protected]
During the school board’s public work session Tuesday afternoon, the board heard a presentation on a financial and human resources software package that will cost the school system more than $400,000 after five years.
Since the 1980s, WCS has used Kaufman as its financial software package, according to Steve Stichter, director of business operations. It runs on an IBM mini mainframe computer. The software is no longer viable for WCS to meet the demands of the business and human resources departments.
“We feel it’s time to move forward,” Stichter said.
He said they spent the last year to year and a half looking at different products. A committee was formed, and then a Request for Information was sent out. Eight companies responded to it, and the list was narrowed down to three.
Each of those three companies came in and gave a demonstration to the committee. The list was narrowed down to two, and both companies provided additional demonstrations.
Stichter said a unanimous decision was made to go with New World Systems out of Troy, Mich.
The school board is expected to approve the recommendation at its regular meeting Monday.
New World Director of Sales Michele Dotterer said the company is employee owned and financially strong. The company is in 48 of the 50 states, but mostly in the city and county side of public accounting. Warsaw will be New World’s third school district in Indiana, but 31st in Michigan and Indiana.
The agreement to be approved by the board is a five-year agreement.
According to information provided, total cost for the licensed software solution, along with implementation cost, is $199,200. An optional module is an additional $8,400, while travel expenses are estimated at $15,000 for a total of $222,600. WCS Chief Financial Officer Kevin Scott said the school district has a 2011 capital projects fund purchase order for $225,000 targeted for this purchase. The purchase also will require hardware and related items at a cost of $96,725.27, which will are budgeted and available in the 2012 CPF.
Annual maintenance costs start in the second year of the agreement and escalate about 3 to 5 percent each year after that.
Scott said state requirements keep increasing annually and the new system will be able to meet those requirements. Also, the life expectancy of WCS’s current equipment is at its end so something had to be done.
Dan Metzger, board member, said the cost of it all is $437,000 at the end of the five-year agreement. After that, what were the costs?
Stichter said WCS would just continue to pay the maintenance costs, and for any new hardware or software it chose to purchase. The money would come out of CPF.
Scott said there was adequate funding to pay for this purchase out of CPF. Metzger asked if that’s where they really wanted to spend the money. Elaine Bultemeier, director of technology, said there really wasn’t a choice. Stichter said the current hardware won’t be supported by IBM at the end of the current year, and with that comes software.
Dan Robinson, board member, was concerned about all the CPF money going into technology and none being left for buildings. Bultemeier said WCS has 3,500 devices for 7,000 students.
With all these continuing licenses, down the road, Robinson asked if WCS could afford them.
“Good question,” Bultemeier said.
“It worries me,” Robinson responded.
Stichter said WCS has been very fortunate to have the funds for technology.
WCS also is changing its provider for its Section 125 program for its employees.
Section 125 involves unreimbursed medical, dependent care and pretax handling of medical and dental premiums. Since the early 1990s, WCS has used AFLAC as its provider of the program.
Lately, however, Stichter said they’ve been frustrated with the customer service they’ve had with AFLAC. This past May, they began to look at new providers. After meeting with American Fidelity, Stichter said they want to change its Section 125 program provider from AFLAC to American Fidelity.
Currently, 185 WCS employees have purchased products from AFLAC. Each employee will be allowed to continue their relationship with AFLAC if they choose to do so, but the premiums for AFLAC then will be billed directly to the employee rather than collected through the payroll system. That also means the program won’t be tax free to the employees.
Robinson said if the school board elects to make the change Monday, it’s raising the cost to the employees who stay with AFLAC.
Robinson also asked how many employees would not be a position where they couldn’t make the change because of something like a pre-existing condition.
“It’s smaller than you might think,” Stichter said.
According to information provided, timing for this transition is to notify both AFLAC and American Fidelity of the change by Aug. 1. American Fidelity then will conduct plan setup and rollout prep work in August and September. There will be a 60-day enrollment period in October and November, followed by a plan “go live” date of Jan. 1.
Scott provided a 2013 corporation budget timeline.
The state calendar requires the last day of adoption of the 2013 budget to be Nov. 1. Prior to adoption, schools must publish their budget twice and conduct a public hearing.
At the Aug. 27 regular board meeting, the board will be presented with a request to advertise the budget. First publication of the 2013 budget will be Aug. 28, with the second publication Sept. 4.
A public hearing will be held Sept. 7, with the adoption at the Sept. 17 regular board meeting, according to information provided.[[In-content Ad]]
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During the school board’s public work session Tuesday afternoon, the board heard a presentation on a financial and human resources software package that will cost the school system more than $400,000 after five years.
Since the 1980s, WCS has used Kaufman as its financial software package, according to Steve Stichter, director of business operations. It runs on an IBM mini mainframe computer. The software is no longer viable for WCS to meet the demands of the business and human resources departments.
“We feel it’s time to move forward,” Stichter said.
He said they spent the last year to year and a half looking at different products. A committee was formed, and then a Request for Information was sent out. Eight companies responded to it, and the list was narrowed down to three.
Each of those three companies came in and gave a demonstration to the committee. The list was narrowed down to two, and both companies provided additional demonstrations.
Stichter said a unanimous decision was made to go with New World Systems out of Troy, Mich.
The school board is expected to approve the recommendation at its regular meeting Monday.
New World Director of Sales Michele Dotterer said the company is employee owned and financially strong. The company is in 48 of the 50 states, but mostly in the city and county side of public accounting. Warsaw will be New World’s third school district in Indiana, but 31st in Michigan and Indiana.
The agreement to be approved by the board is a five-year agreement.
According to information provided, total cost for the licensed software solution, along with implementation cost, is $199,200. An optional module is an additional $8,400, while travel expenses are estimated at $15,000 for a total of $222,600. WCS Chief Financial Officer Kevin Scott said the school district has a 2011 capital projects fund purchase order for $225,000 targeted for this purchase. The purchase also will require hardware and related items at a cost of $96,725.27, which will are budgeted and available in the 2012 CPF.
Annual maintenance costs start in the second year of the agreement and escalate about 3 to 5 percent each year after that.
Scott said state requirements keep increasing annually and the new system will be able to meet those requirements. Also, the life expectancy of WCS’s current equipment is at its end so something had to be done.
Dan Metzger, board member, said the cost of it all is $437,000 at the end of the five-year agreement. After that, what were the costs?
Stichter said WCS would just continue to pay the maintenance costs, and for any new hardware or software it chose to purchase. The money would come out of CPF.
Scott said there was adequate funding to pay for this purchase out of CPF. Metzger asked if that’s where they really wanted to spend the money. Elaine Bultemeier, director of technology, said there really wasn’t a choice. Stichter said the current hardware won’t be supported by IBM at the end of the current year, and with that comes software.
Dan Robinson, board member, was concerned about all the CPF money going into technology and none being left for buildings. Bultemeier said WCS has 3,500 devices for 7,000 students.
With all these continuing licenses, down the road, Robinson asked if WCS could afford them.
“Good question,” Bultemeier said.
“It worries me,” Robinson responded.
Stichter said WCS has been very fortunate to have the funds for technology.
WCS also is changing its provider for its Section 125 program for its employees.
Section 125 involves unreimbursed medical, dependent care and pretax handling of medical and dental premiums. Since the early 1990s, WCS has used AFLAC as its provider of the program.
Lately, however, Stichter said they’ve been frustrated with the customer service they’ve had with AFLAC. This past May, they began to look at new providers. After meeting with American Fidelity, Stichter said they want to change its Section 125 program provider from AFLAC to American Fidelity.
Currently, 185 WCS employees have purchased products from AFLAC. Each employee will be allowed to continue their relationship with AFLAC if they choose to do so, but the premiums for AFLAC then will be billed directly to the employee rather than collected through the payroll system. That also means the program won’t be tax free to the employees.
Robinson said if the school board elects to make the change Monday, it’s raising the cost to the employees who stay with AFLAC.
Robinson also asked how many employees would not be a position where they couldn’t make the change because of something like a pre-existing condition.
“It’s smaller than you might think,” Stichter said.
According to information provided, timing for this transition is to notify both AFLAC and American Fidelity of the change by Aug. 1. American Fidelity then will conduct plan setup and rollout prep work in August and September. There will be a 60-day enrollment period in October and November, followed by a plan “go live” date of Jan. 1.
Scott provided a 2013 corporation budget timeline.
The state calendar requires the last day of adoption of the 2013 budget to be Nov. 1. Prior to adoption, schools must publish their budget twice and conduct a public hearing.
At the Aug. 27 regular board meeting, the board will be presented with a request to advertise the budget. First publication of the 2013 budget will be Aug. 28, with the second publication Sept. 4.
A public hearing will be held Sept. 7, with the adoption at the Sept. 17 regular board meeting, according to information provided.[[In-content Ad]]
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