Benefits Realized From Update of Treasury Systems and Redesign of Processes

                 

The treasury department of a large municipality improved cash management, debt management, and investment functions to positively impact efficiency and customer service

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Client’s Challenge: Address operational challenges in the Treasury Department

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An ongoing challenge for municipalities is to provide effective and efficient services that meet their customers’ needs. A key consideration is to utilize state-of-the-art technologies to improve delivery of services. This requires innovative ways of conducting business through improved processes. Enterprise Resource Planning (ERP) systems provide a powerful tool, but real benefits are only realized if business processes leverage the capabilities of the ERP system.

 

The treasury department of a large municipality realized the need to make improvements in its core processes including cash, debit, and investment management. A key goal was to leverage the investment in its existing ERP system.

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PM&A’s Solution

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PM&A’s extensive experience in public sector financial operations, accounting, process redesign, and systems implementation provided the skills mix necessary for the project. PM&A was selected to assist with addressing the challenge.

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PM&A consultants developed a future high level document outlining a redesigned structure of cash, debt, and investment management processes. This was used as a roadmap for redesigning business processes to reflect current best practices and to leverage the client’s Oracle ERP application. Additionally, plans were made to implement and integrate a new treasury cash management software application and to reorganize the Treasury Department to better manage the Treasury enterprise.

 

Key goals of the roadmap included efficient use of technology, elimination of labor intensive and manual processes, restructured internal controls, and best practice delineation of responsibilities.

 

The implementation of a business process redesign plan proceeded. A city-wide review was conducted, assessing and documenting the current cash, debt, and investment management processes and business requirements. PM&A developed a detailed solution based on industry best practices, business requirements and our assessment of the function. This included:

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• Restructure of all City wide bank accounts and services.

• A gap analysis based on current processes, the Oracle cash management application functionality and a proposed re-designed solution.

• Process flows for each area of the cash, debt, and investment management functions.

• Restructured the accounting flows for cash receipts, disbursements, debt and investment consistent with the re-designed processes.

 

The Oracle treasury cash management application was installed. The application was tested and the software functionality was reviewed and tested to ensure the software processes and redesigned processes were in sync and provided maximum benefit.Reporting requirements were analyzed and report specifications were documented. The completed application was tested by end users to ensure redesigned workflows complemented the software functionality. PM&A developed training materials and provided process training to departments City wide. PM&A also provided post implementation process and application support.

 

To ensure complete integration of staffing, processes, and systems, a reorganization of the Treasury Department was undertaken. A revised staffing matrix and plan was developed, and job descriptions and skill set requirements for positions within the staffing plan were included.

 

Impact on Client’s Business: Prepared for the future

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The process redesign and software implementation project provided the foundation needed by the Treasury Department to continue delivering high quality services. The customer centric processes reflected a state-of-the-art solution that could be enhanced over time.

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The department reorganization facilitated the ongoing delivery of services using the process and systems enhancements. The department had an improved department wide understanding of functions and lines of responsibility. It also provided insight as to the staff resources that would be required, both technical and business related.