Cardinal Project

Commonwealth of Virginia

Cardinal Payroll Project Update

FOCUS Spring 2017 Conference

April 18, 2017

2

Agenda

• Welcome and Introductions

• Cardinal Program History

• Cardinal Payroll Project Overview

• Agency Involvement

• Nuances of Higher Education Institutions

• Project Communication

• Questions

3

Cardinal Program

History

4

Story of Cardinal

Chapter One

1986

5

Story of Cardinal

Chapter Two

1986 2009

6

Story of Cardinal

Chapter Three

1986 2009

Dec2011

7

Story of Cardinal

Chapters Four, Five and Six

1986 2009

Oct2014

Dec2011

Oct2012

Feb2016

8

Story of Cardinal

Chapter Seven

1986 2009

Oct2014

Dec2011

Oct2012

Feb2016

Mar2016

9

Story of Cardinal

Chapter Seven

1986 2009

Oct2014

Dec2011

Oct2012

Feb2016

May2015

Aug2016

Apr2016

Revised Surprise Twist

10

Cardinal Payroll

Project Overview

11

Payroll Current State

The Commonwealth Integrated Payroll/Personnel System (CIPPS) serves

as the current payroll system for the majority of the state’s agencies.

• Mainframe application built in 1986

• Current vendor support expires in May 2018

• ~200 agencies currently use CIPPS; 43 agencies use CIPPS Leave

• ~90,000 salaried and hourly employees in CIPPS

• Other central systems supporting payroll and time capture:

o CIPPS Payroll Audit Tool (PAT) used currently for agency access to pay and leave

information and reporting

o Payline used to view payroll information (e.g., paystub, W-2, leave)

o Reportline and FINDS are used for payroll reporting

o DHRM’s Time, Attendance, and Leave (TAL) system is used to capture time,

attendance, and leave usage for participating agencies

12

Cardinal Project Vision and Benefits

• Reduce risks associated with aging payroll system

• Meet majority of Commonwealth payroll business requirements

• Continue to leverage the ERP system which provides:

• Enterprise focus with integration to Cardinal financials

• Proven software aligned with standard, proven government business

processes

• Vendor supplied upgrades to software for functional and technical

improvements

• Robust reporting tools and capabilities

By replacing CIPPS with Cardinal Enterprise Planning Resource (ERP)

solution, the Commonwealth will:

13

Scope of Cardinal

Payroll

14

Who will Use Cardinal Payroll?

• Agencies will be given the option to use Cardinal as online or

interfacing

• Christopher Newport University

• Longwood University

• Norfolk State University

• Radford University

• All state agencies currently using CIPPS will use Cardinal for

Payroll processing, including:

• Richard Bland College

• University of Mary Washington

• Virginia Community College System

• Virginia State University

15

What is included in Cardinal

Payroll?

• CIPPS, PAT and TAL will be retired and Cardinal will become the

Commonwealth’s new time and attendance and payroll management

system

• Payroll functionality will be fully integrated with Cardinal Financials

• While there are three functional areas (Payroll, Time and Attendance,

Human Resources/Benefits) included in the Cardinal Human Capital

Management (HCM) system, there are five PeopleSoft v9.2 software

modules included:

– Payroll for North America

– ePay

– Time and Labor

– Absence Management (Leave)

– Human Resource including Base Benefits (limited to support payroll functionality)

Cardinal HCM

16

Cardinal HCM Cardinal Financials

Time and Attendance

HR Module

Person Record

Position Record

Job Record

T&L/AM Enrollment

Payroll Module

Paysheets

Pay Calculation

Pay Confirm

T&L Module

Time Data

Absence Module

Absence/Leave

Data

Base Benefits

Employee Benefit

Elections

GL Module

ChartFields

Journal Entries

AP Module

Vendors

3rd Party Provider/

Garnishment

Payments

EX Module

Employee Profiles

PC Module

Project

Accounting

External Benefits

PMIS/ PMIS

Exempt Systems

External Payroll

Inputs

Agency Time

Capture Systems

Agency Absence

SystemsExternal Systems

17

What Business Processes are

included in Cardinal HCM?

Functional Area Business Process

Human Resources & Benefits*Setup and Maintain Employee HR Data

Benefits Reconciliation

Payroll

Maintain Employee Payroll Data

Process Payroll

Post Payroll Process

Payroll Costing

Periodic Legislative Reporting

Time and Attendance

Time and Attendance Employee Setup

Time and Absence Capture

Time and Attendance Approval and Processing

Payroll Integration and Cost Allocation

*Used only for the purpose of Payroll processing, not intended to replace HR or Benefits systems.

Employee Set Up and Maintenance

Enter Employee Record

• Record established to hold basic employee identifying information (e.g., name, address, SSN, service date)

• Data interfaced from PMIS, agency system, or entered online, as allowed by DHRM

Establish Position Record

• Each employee must have one or many positions with basic identifying data (e.g., business unit, position number, salary plan, location, reports to)

• Data interfaced from PMIS, agency system, or entered online, as allowed by DHRM

Link Employee, Position, and

Job Data

• Position data is connected to the employee record and additional information about the job is collected (e.g., pay rate)

• Information is effective dated and linked to payroll data (e.g., pay group, employee type)

1 2 3

18

Time & Labor High Level Process Flow

Enter Time on the Timesheet

• Employees, timekeepers, interface enters time by day, by TRC, and by ChartFields.

• Entries are checked for valid ChartField combinations and saved to reported time table

Run Time Administration for Rules/Edits

• Time administration processes reported time and executes validation and exception T&L rules to create payable time, which is available for approval

Approve Time

• Online timesheets or adjustments to interfaced timesheets require online approval

• ‘Reports To’ position approves the timesheet, which does not need to be the supervisor

Time Available for Payroll

• Once approved and all rules/edits passed, time is processed by payroll. Any ChartFields entered on the timesheet will be used for payroll distributions

19

Absence Management High Level

Process Flow

Enter Absence Event on the Timesheet

• Employee, TL Administrator, or the interface enters absence event, including absence start date, end date, absence name, reason, and hours for the event

Forecast Absence Event

(if applicable)

• Available balances checked to take the event, consider other future events and accruals through the period prior to the event date

• If forecast is successful, the absence can be submitted

• If forecast is unsuccessful, user can change hours or leave type with available balance

Approve Absence Event

• Online entry or adjustments to interfaced absences require approval

• ‘Reports To’ position approves the absence, which does not need to be the supervisor

Run Absence Calculation

Process

• Once approved and all rules/edits passed, the absence is processed by payroll

• ChartFields are defaulted from the position/ department defaults

• Available on payable time

20

Payroll Implementation Schedule

We are here

Phase

Au

g-1

6

Sep

-16

Oct-

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No

v-1

6

Dec-1

6

Jan

-17

Feb

-17

Mar-

17

Ap

r-17

May-1

7

Ju

n-1

7

Ju

l-17

Au

g-1

7

Sep

-17

Oct-

17

No

v-1

7

Dec-1

7

Jan

-18

Feb

-18

Mar-

18

Ap

r-18

May-1

8

Ju

n-1

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Ju

l-18

Au

g-1

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Sep

-18

Oct-

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No

v-1

8

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Plan/Analyze

Design

Build

Test

Deploy

Support

Test - Release 2

Deploy - Release 2

Support - Release 2

Cardinal Payroll Project Schedule

Release 1 Release 2

Targeted Go-Live

Dates:Release 1 – April 2018 Release 2 – October 2018

22

Payroll Rollout Strategy

• Reduce risk; deploy Cardinal Payroll to agencies in two releases

• Collectively, all agencies engaged in the following tasks (from August 2016

to January 2018):

• Design

• Business Process Workshops and Role Mapping

• Build and system test of all reports, interfaces, conversions, and extensions (RICE)

• Interface testing (for all interfacing agencies)

• Traditional payroll parallel testing

• Release 1 deployment April 2018 (25% employee population) following:

• Delivery of “just in time” training (January – March 2018)

• Release 2 deployment October 2018 (75% employee population)

following:

• Supplemental interface testing (June – July 2018)

• Additional mock conversion (July 2018)

• Delivery of “just in time” training (July – August 2018)

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Deployment Release Outcomes

Release 1 Outcomes

• Agencies representing 25% of CIPPS

employees go live with Cardinal Payroll

• Release assignments will be finalized

Summer 2017

• All RICE deployed into production and

stabilized with pilot agencies

• Agencies that go live with Cardinal in this

Release no longer transact in or interface

to CIPPS (as a general rule)

Transactions entered into Cardinal

are not sent to CIPPS and will not be

reconciled to CIPPS

• Central system-of-record applications

interface to both CIPPS and Cardinal

• Cardinal becomes the Payroll system of

record for deployed agencies

Release 2 Outcomes

• All remaining agencies go live with

Cardinal

• Transaction processing in CIPPS ceases

and the system is brought offline

• Tax year 2018 reporting produced from

Cardinal

24

Key Business Impacts

25

Major Business Impacts

HR Data

• A job record is required for Cardinal Payroll. This will

require the establishment of a position record for each

employee. This will be required of PMIS and non-PMIS

agencies, salaried and wage employees, as well as

adjunct faculty

• Each employee will have one employee id number across

the Cardinal enterprise, even if they hold jobs at multiple

agencies

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Major Business Impacts

HR Data (continued)

• Employees with multiple jobs (intra or inter agency) will be converted

under a single Employee ID with multiple employee records

• There is typically a one-to-one correspondence between employee job

record and position

• An employee will have one Personal Data record and one Direct Deposit

record converted, regardless of number of jobs and number of agencies

• An employee will have separate tax data, general deduction, and

garnishment records converted for each agency / FEIN

• An employee will have separate earnings and related balances converted

for each agency / FEIN (which will generate a separate W2 statement for

each agency under which payments were received in the calendar year)

• In general, other converted information is separated by the employee’s

jobs where the legacy system can identify the position with which it is

associated

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Major Business Impacts

Time and Attendance

• For both online and interfacing agencies, Cardinal timesheet records

will drive pay for:

• Wage/Hourly employees (excluding Adjunct Faculty)

• Non-exempt and exempt salary employee exception time (e.g.,

overtime). Any day with exception time requires all hours,

including regular hours, to be reported

• Timesheets will collect detailed time by day, by type, and by accounting

distribution (optional) to feed payroll, and to support allocation of pay in

the Cardinal Financial system at a detailed level

• Agencies may elect to utilize “employee self-service” feature to collect

productive time and leave detail directly in the system or they may use

“timekeeper” approach (or a combination of the two)

27

Employee/Position/Job Data Table

Relationships

00100123400

John Doe

123 Main Street, Richmond, VA 23222

123-45-6789

PERSONAL DATA

00100123600

Mark Thomas

123 Valley Dr, Richmond VA 23222

345-67-8999

DOA10001

Senior Account Analyst

Business Unit: 15100

Company: DOA

Reports To: DOA10003

POSITON DATA

DOA10002

Senior Account Analyst

Business Unit: 15100

Company: DOA

Reports To: DOA10003

ABC10012

Store Clerk

Business Unit: 99900

Company: ABC

Reports To: ABC10123

00100123400, 04/01/2015

Empl Rcd: 0

Position: DOA10001

Business Unit: 15100

Company: DOA

Reports To: DOA10003

Pay Rate: 40,200.00/yr

JOB DATA

00100123600, 06/01/2016

Empl Rcd: 1

Position: ABC10012

Business Unit: 99900

Company: ABC

Reports To: ABC10123

Pay Rate: 12.00/hr

00100123600, 01/01/2016

Empl Rcd: 0

Position: DOA10002

Business Unit: 15100

Company: DOA

Reports To: DOA10003

Pay Rate: 38,200.00/yr

2 13

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Major Business Impacts

Time and Attendance (continued)

• Agencies without an agency-based Absence Management system that

tracks leave accrual / leave balances will be required to maintain

absence data in Cardinal

• Employees will be assigned a work schedule in Cardinal to facilitate the

merging of employee absences with productive time capture on the

Cardinal time sheet. This will provide a complete picture of the

employee’s time (and provide for enhanced edits and reporting –

including identification of potential leave without pay situations)

29

30

Major Business Impacts

Reporting / Data Retrieval

• With the implementation of Cardinal Payroll, Payline, Reportline, and

PAT will no longer be populated, but will be available to retrieve

historical data

• Cardinal Payroll will provide users the ability to run / generate their own

reports and queries. While there may be a subset of key reports that

will be generated for the agencies in batch, there will be hundreds of

reports, queries and inquiries that users can generate on their own.

These reporting tools will allow for flexible run control parameters, and

often provide the ability to export data to other tools (e.g., Excel)

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Agency Involvement

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Agency Involvement

• Cardinal Change Network

• Configuration

• Conversion

• Interfaces

• Agency Readiness

33

• Report issues, concerns, questions

• Inform of agency specific needs

• Contribute to agency readiness

• Project updates, timeline, training

• Change Network meetings

• Agency workshops

• Agency tasks, surveys, calls, e-mail, newsletters

• Understand agency readiness

• Supply project updates and status

• Know business process changes

• Complete tasks for agency readiness

• Work with agencies on readiness tasks

• Monitor and assess agency readiness

• Address agency issues and questions

Cardinal Change Network

Agency

Cardinal Project

Agency Change Network Members

Agency Readiness Liaisons

34

Agency Change Network

Members

• CIPPS agencies assigned to logical groups called “Assembled” agencies based

on reporting structure, transaction processing, and agency relationships

• Each assembled agency had assigned Change Network members who represent

the entire group

• Each assembled agency has one Primary Contact and an additional zero to six

agency contacts:

– Subject Matter Expert (SME) Payroll

– SME Time and Attendance

– SME HR (Employee Setup / Benefits)

– Technical/Interface

– Security (Assignment of System

Access)

– Training

Primary

Contact

Subject

Matter

Expert

Security

Contact

Subject

Matter

Expert

Training

ContactTechnical/

Interface

Contact

35

Configuration

• Agencies will make dozens of important decisions

concerning how Cardinal will be used, for example:• Online entry, interface data, combination

• Employee self-service, timekeeper approach, combination

• FLSA schedule(s)

• These decisions drive configuration data that will need

to be established in the system

36

Conversion

• ~30 different types of conversions are planned

• Each agency will have an active role in conversion

• Develop Crosswalks

• Review Legacy Data

• Cleanse Legacy Data

• Validate/Approve Converted Data

37

Conversion Inventory Summary

Human Resource– Department / Position Defaults– Employee Position Data– Employee Personal / Demographic– Employee Job Data

Benefits– Current Health and Life Plan

Enrollment– Current FSA Enrollment– Current Savings and Retirement Plan

Enrollment

Time and Attendance– Time Reporter Data– Time and Labor (TL) Schedules– Comp Time Balances– Leave Balances

Payroll– Additional Pay– Garnishments– General Deductions– Tax Elections and Tax Distribution– Direct Deposit Elections– Calendar Year Balances (Earnings,

Deductions, Taxes, Garnishments and Check Year to Date)

Accounts Payable– Payroll Vendors

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Agency Interfaces

• Most Higher Education institutions will interface with

Cardinal

• Each interfacing agency will have an active role in

interface work• Update technical and functional documentation

• Participate in data mapping activities (interfacing agencies)

• Develop and test agency system interfaces, if needed (interfacing

agencies)

• Prepare and test interface files (interfacing agencies)

Agency Interfaces

Upload Interfaces (4)

Human Resources

– Employee Demographic Upload

(PMIS Exempt agencies*)

– Position Upload (PMIS Exempt

agencies*)

Time and Attendance

– Time Entry Upload

– Absence Data Upload

Extract Interfaces (2)

Time and Attendance

– Payable Time Extract (including

time and absence processed

data)

Payroll

– Payroll Data Extract

39*Exceptions have been granted for non-salaried employees/positions for Higher Ed

Agency Interfaces

*For PMIS agencies, Employee Demographic and Position data will be interfaced from PMIS (exceptions have been granted for non-salaried

employee and position data for in scope Higher Ed Institutions).

Cardinal Module Integration

Cardinal

Payroll

Cardinal

Financials

PY

Agency Systems

Journals

Time

Entry

Upload

PMIS Exempt

Employee

Demographics

Upload*

Absence

Data

Upload

HR T&L AM

GL APEX

Vendor

Information,

3rd Party Provider

and Garnishment

Payments

Employee

Profiles

Payable

Time

Extract

Payroll Data

Extract

(ECE)

Time and Attendance

40

PMIS

Exempt

Position

Upload*

41

Data Source and System Usage

for Cardinal Payroll Higher Ed

Data Source Cardinal System Usage

Salaried Hourly & Adjunct Faculty

InstitutionEmployee

Demographics PositionEmployee

Demographics PositionTime Entry (includes

Absence Takes)

Absence Management (includes Accruals and

Balance Tracking) Payroll

Christopher Newport University PMIS PMIS AGENCY SYSTEM AGENCY SYSTEM ONLINE* ONLINE ONLINE

Longwood University PMIS PMIS AGENCY SYSTEM AGENCY SYSTEM INTERFACE N/A ONLINE

Norfolk State University PMIS PMIS PMIS PMIS ONLINE** ONLINE** ONLINE

Radford University PMIS PMIS AGENCY SYSTEM AGENCY SYSTEM INTERFACE N/A ONLINE

Richard Bland College PMIS PMIS PMIS PMIS ONLINE ONLINE ONLINE

University of Mary Washington PMIS PMIS AGENCY SYSTEM AGENCY SYSTEM INTERFACE N/A ONLINE

Virginia Community College System PMIS PMIS AGENCY SYSTEM AGENCY SYSTEM INTERFACE N/A ONLINE

Virginia State University PMIS PMIS PMIS PMIS ONLINE*** ONLINE ONLINE

* Agency system for Dining, Catering Full-time, and Part-time employees, Cardinal Online for all others** Agency system for Facilities employees, Cardinal Online for all others*** Agency system for Hourly/Wage employees, Cardinal Online for all others

42

Agency Readiness

• Relies heavily on agency participation in the Cardinal

Change Network. Members should ensure:• Timely and accurate completion of assigned tasks

• Attendance at required Cardinal meetings

• Full focus during Business Process Workshops

• Existing agency processes are adapted to work with Cardinal Payroll

system and processes

• Agency employees impacted by the changes are kept informed

• Right people are placed in the right roles, and they attend required

Cardinal training

43

Nuances of

Higher Education

Institutions

44

What is unique about Higher Eds?

• Adjunct faculty

• Large volume of wage/hourly employees, with high turnover– PMIS exceptions granted by DHRM

• Cardinal Payroll Higher Ed Agencies can interface hourly and adjunct faculty employee demographic data and position data directly from agency based systems (vs. from PMIS)

• Must be consistent across agency - Cardinal will only accept hourly employee records from one source.

• Still required to create hourly employee identification numbers in PMIS Wage 3

• Must continue to create and maintain all salaried employee records in PMIS. Salaried employee demographic and position information will be interfaced from PMIS to Cardinal

• PMIS remains the official record for the Commonwealth of Virginia. Your agency remains responsible for providing hourly employee information directly to DHRM in support of other Commonwealth data and/or reporting requirements. In other words, Cardinal will not be interfacing hourly employee records from Cardinal to PMIS and will not serve as an agency’s data repository for hourly employees

• Pooled positions heavily utilized for work study and select hourly employees

• Non-traditional leave programs offered for select employees

• Work study students are FICA exempt

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Project

Communication

46

Project Resources

• Cardinal Project Website and Newsletters http://www.cardinalproject.virginia.gov/index.shtml

• Cardinal Project Email Address: ProjectCardinal@DOA.Virginia.gov

• Cardinal Assembled

Agency Change Network

47

Questions

48

Thanks in advance

for your support!