Mayor Luke Ravenstahl and Allegheny County Controller Mark Patrick Flaherty today signed the details of a historic cooperation agreement that will allow for the consolidation of the City and County’s financial management systems. The shared-services agreement will allow the governments to jointly operate state-of-the-art accounting and payroll management software that will improve operational efficiencies and accountability.
“This shared-services agreement is another step forward in our efforts to improve the efficiency and effectiveness of our operations,” Ravenstahl said. “Through this partnership, the City will greatly benefit from the County’s 10-plus years of experience in using this financial management software. The County will be able to help us train City employees, significantly driving down costs, while helping to ensure that our transition is as seamless as possible.”
“Such collaborations allow agencies to avert significant costs associated with implementing new financial software systems,” said Allegheny County Controller Mark Patrick Flaherty. “Moreover, licenses entered into by succeeding authorities create added benefits by distributing annual maintenance fees between parties.”
The ICA’s recent release of $13.3 million in 2010 state gaming revenue has allowed for the City to pay for the cost of the $2.4 million license with Oracle Corporation’s J.D Edwards EnterpriseOne software (JDE). The County has more than 10 years of experience in using Oracle’s financial management software and will help the City with implementation. The entities will be forming a shared-services committee that will meet regularly to monitor and help guide the implementation process.
“We look forward to working with the City to implement the shared system as soon as possible in order to realize immediate savings for residents,” said Flaherty.
The Intergovernmental Agreement calls for a five-year agreement with JDE at a cost to the City of approximately $12 million. The City will pay $2.4 million to purchase the license, and $8.8 million for implementation and maintenance fees. The new system is expected to be live by summer of 2012, with implementation efforts beginning immediately.