PAYROLL OVERSIGHT STANDING COMMITTEE
TUESDAY, JUNE 4, 2013


Call to Order

10:00 a.m.       Meeting called to Order by Supervisor Alves. Supervisor Pedersen, and Supervisor Alves are present. CAO Robertson, and Clerk of the Board Wellemeyer are also present.

Public Comment
None.


Approval or additions/deletions to agenda
No changes, agenda approved as submitted.


1. Update from Monica Derner as to Final Presentation of the Payroll Process.
CPA Monica Derner reports there was a very good meeting yesterday.  Majority of the managers want to see the ADP Time & Attendance module installed as soon as feasibly possible.  Some departments may require a modification of procedures which they discussed a couple of options.  Fiscal Officers would like to have ADP access to view the departments they are responsible for.  A request was made to have the different types of leave accruals and balances reflected on pay stubs.  Most managers were in agreement that a pay date subsequent to the pay period would be better process to reduce future corrections.  They did not like the idea of having two pay cycles per month due to the added burden of additional payroll processing.  Most were in favor of a subsequent date with a short transitional pay cycle.  Most of the managers were concerned about the July 1st deadline as it is looming.
 
Supervisor Pedersen asks about the ADP Time & Attendance module and how that would affect field personnel.  CPA Derner reports that was one of the hybrid models we had talked about.  They could calculate their time and turn it in at the end of the month or use smart phones to input the data.  He also states under training sessions and communications, he hopes that we will always include department heads on these.

Supervisor Alves asks about the July 1st deadline concern.  CPA Derner thinks the consensus was to move forward but in baby steps and not try to do it all in one shot.  She also asks about there not being any current policies & procedures for managing payroll at this time.  CPA Derner states that is her understanding and that should be corrected.  Lastly, she asks about the cost of module and if it could be cost allocated.  Yes it could be.
 
Asst. CAO Randall is in the process of meeting with the Fiscal Officers and developing some policies and procedures together.  
 
OES Deputy Director McQuarrie states that right now we don't have a clear and concise timeline as to what is coming and what is expected of the departments.  CPA Derner agrees and she will be working with Asst. CAO Randall to get that on paper and out to everyone.  There was also discussion about changing Change of Status forms with the Personnel Notification Form and it doesn't meet the needs of their department.  There are multiple other extra pays that are not currently included and she thinks we need to visit revamping this form so it will make it easier for not just them but other departments with extra pays as well.  Supervisor Alves thinks that needs to be addressed as well, the committee would like to have uniformity with the forms but maybe a few departments will have to have their own forms.  Asst. CAO Randall reports that this will be addressed when they meet with the Department Heads and Fiscal Officers to come up with a solution together.  Auditor Locken reports that mistakes do happen but if we could include these extra pays on the list then it might help curb some of these errors.

First 5 Director Hoy reports that surely we are not the only county that has a Sheriff's Dept and Road Dept and we could contact those other counties that could provide them with documents of what they use.  Supervisor Pedersen asks if Deputy Director McQuarrie has examples from other counties.  She doesn't; they have been using the Change of Status form for quite some time and has always been a problem.  This will be a new form for them and we need to make sure they have uniformity.
 
Supervisor Alves asks CPA Derner what she recommends in regards to the timeline.  She thinks we should get all of the forms completed and ready to use by July 1st and then work through that to discuss processing change.  Supervisor Alves would like to see the comments from the departments in writing so we can see what is working for them and what isn't. 

Auditor Locken thinks the biggest hurdle will be the timesheets.  She would suggest switching over the processing by July 1st and work with the new summary sheets and personnel notification forms.  Then they could do the timesheet change by January 1st and have six months to work out any kinks before then.  Only have to change the timesheets once instead of looking at doing it twice.  Supervisor Alves would like to look into funding for the Time & Management module.
 
Supervisor Pedersen asks about changing to a monthly timesheet and not be behind, he asks how that would work with Union Negotiations.  CAO Robertson reports they had discussed that but for twice a month pay, so he would have to go back and open those discussions.  CPA Derner states the discussion yesterday was that most were in favor of not being paid twice a month, but would be okay with subsequent paychecks.
 
CPA Derner then goes over the updated payroll process.  She was able to take the two proposals and combine them into one document.  PANs will be completed by Department Heads and submitted to Administration, and a copy will be sent back to them.  Staff maintains the timesheet throughout the cycle and the Department Head will approve them.  The Summary Sheets didn't change, they will be collectively compiled to create the batch and input the time.  Compiling will be done by the Payroll Processor and once the numbers have been reconciled a report will be sent to the Departments as well as the Auditor who will review the data as necessary.  Once the Auditor has approved they will submit to ADP.  ADP will do everything as normal and return the checks and paystubs to Administration.  The Payroll Processor will reconcile 3rd party negotiations and request warrants, the Auditor will review and submit to the Treasurer.  Quarterly reporting will be done by ADP, as well as the year end reporting and issuing W2s.  The Payroll Processor will reconcile payroll reports, and Administration is responsible for reporting new hires to EDD and CalPERS.  The Personnel Action Form is also attached, along with a draft payroll calendar, timesheet, and a Summary Sheet.  Asst. CAO Randall provides a draft summary sheet that she would like to see the departments use as it will then tie back to their budgets and help them reconcile.  Lastly, CPA Derner goes over the flowchart and shows the updates from yesterday's meeting.

Auditor Locken also provided documentation that shows the documents needed for acceptance of ADP Payroll Preview and Manual Payroll Checks.  Supervisor Alves states if manual checks are needed she would like us to be very accommodating to the employee.

CPA Derner reports the last piece she has is a template showing deductions and has broken it down to Federal, State, etc. and should be able to tie them back to the reports.  She thinks tools like this are needed.

CAO Robertson states CPA Derner had discussed the July 1st deadline, and they have been working with ADP and will have an item coming before the Board which would give the Chair the ability to state who the contact person will be whether it's the Auditor or Administration.  Auditor Locken states she will have a definite issue with that if they are determining who will be doing what and she doesn't think that will work while they are working through this process.  Asst. CAO Randall reports they have a list of permissions and IT has been working on that and who will have certain permissions.  Auditor Locken would like to see that before they move to the next step.
 
CPA Derner reports she has a response letter to the previous letter that was submitted to the committee and discussing the two proposed payroll processes.  Supervisor Pedersen reports he had a couple calls from individuals that weren't contacted as Fiscal Officers and they don't agree to the previous letter.  He takes exception to this since not all Fiscal Officers were represented.  Supervisor Alves understands that she was criticized for accepting that letter, but she believes they are an information gathering committee and that is why the letter was accepted.  Supervisor Pedersen clarifies that he appreciates employees stepping up with ideas but we need to work together.
 
Director Hoy asks if anyone can address the discrepancies of taxes reported to the State Franchise Board and she is showing only nine months were paid in 2011 and three months in 2012.  Auditor Locken addresses that, stating that as of today that information has been submitted and the taxes have been paid but the individual information isn't showing up on the system yet because the State is still updating that.
 
Supervisor Alves requests a comprehensive report of how many claims have been submitted, how many have been resolved and she would like to see that brought before the whole board.  Auditor Locken will provide another matrix showing this information, and reports on some of the issues she is currently facing and what she is doing to address them.  Supervisor Alves will want to focus on the employees that are having problems.
 
CAO Robertson would like to dialogue now if okay with the committee.  If we are going to work on a July 1st deadline, we need to have the ability to modify pay codes and other things to ensure it is correct, and his goal would be to have the Chair authorize those permissions if they are to meet that deadline.  Auditor Locken doesn't think they need to be the system administrator to make these changes and she can give them those permissions.  She is not willing to give up the ability to submit checks.  Before they can relieve her of that duty they need to relieve her of the liability as well.  CAO Robertson disagrees and feels they need the ability to have ADP respond to them and will at least need those permissions unless the Board decides to go another direction.
 
Supervisor Pedersen reports this isn't going to happen overnight, so we shouldn't get too discouraged but this will take some time.


ADJOURNMENT
11:10 a.m. Meeting Adjourned.





Stephanie Wellemeyer, Clerk