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HomeMy WebLinkAboutREP FC 425 08/13/1991 REPORT OF THE COMMITTEE ON FINANCE Date: August 13, 1991 Place: Councilroom Time: 10 : 00 a .m. Chairman and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Resolution - No. 358-91, reports as follows : The purpose of Resolution No . 358-91 is to approve the proposal submitted by Deloitte and Touche to examine the County' s System Plan for computerization and to fund the service by transferring and appropriating $18, 000 as follows : Out and From: 010-101-5101 . 02-115 Clerk/Council Svc. OCE - Misc. Contract Services Credited To: 010-101-5101. 15-115 External Audit - Misc. Contract Services Deloitte and Touche ' s proposal, dated July 10, 1991, indicates said System Plan review will not exceed $18, 000, including out-of-pocket expenses and Hawaii general excise tax. The project will require approximately three weeks to complete. The specific objectives of management review of the County' s System Plan for computerization is to determine whether it is : .Realistic in the Current Industry Environment .Realistic in the Current County of Hawaii Environment .Complete in addressing Known User Needs .Affordable to the County of Hawaii The scope will include review of the County' s Data Processing Review and Long Range Plan (June 1991) , FY 1991-1992 computer equipment budgetary requests , Data Processing Project Status Reports and other background material . Your Committee discussed subject Resolution No. 358-91, along with Communication No . 2680 and Resolution Nos . 346, 347 and 348 . Your Committee voted to defer Communication No . 2680 and Resolution Nos . 346 , 347 and 348 . FC REPORT N0, 425 ADOPTED: SEP 4 1991 FC-425 Page 2 August 13, 1991 Representatives of Deloitte & Touche were present at the meeting. They explained their experience with computer management consulting included development of long range plans and projects for the State Judiciary and Honolulu Board of Water Supply, as well as a long range telecommunication plan for the City and County of Honolulu. Representatives from Deloitte & Touche informed the members that the proposed audit extension would be a critical review of the County' s System Plan for computerization as outlined in the EDP Review and Long Range Plan. They outlined in more depth the scope of proposal, stating it would include an examination of hardware, software and other peripheral equipment to determine the present direction of computerization; analyze the strategic plan, objectives and budgetary considerations; determine if the County' s key computer architecture is properly addressed from budget standpoint as well as data processing and other known applications; evaluate the established timetable to assess if future needs and goals are properly planned, realistic and affordable to the County. Several Committee members voiced opposition to a contract study of the newly released computer plan. The Chair noted the County review and long range plan was more an assessment or inventory of computer assets than it was a strategic long range plan. Therefore, she noted another review was unnecessary, rather a plan is what the County really needs . Other members noted the proposed review would not include evaluation of the Real Property Tax planned computer system, which they felt was a critical component of the County computer plan. The Real Property Tax Division has already received Council support and approved funding to proceed with establishing an independent data processing system. Your Committee was informed by the Administrator, RPT division, they are in the process of developing specifications for their system and upon issuing a request for proposal (RFP) an outside computer consultant would be needed to help evaluate bid proposals . He added, these services have been budgeted; however, no timetable for issuance of RFP has been established as of yet . Your Committee members expressed concern the RPT system be given attention and necessary resources to establish an independent computer system as soon as possible. This is because in 1994 the City and County of Honolulu ' s data processing services will no longer be available to the County RPT division. FC-425 Page 3 August 13 , 1991 Also noted as a concern was the recent merger of Wang Industries and IBM which several members of the Committee and Administration felt could have significant impact on the future of Wang and the future of the County' s Wang mainframe system and maintenance program. It was noted that some sort of integrated computer system plan was necessary and several members felt such applications as geographical information, accounting, data processing, etc. would be looked at collectively, rather than purchasing hardware and software applications on a piecemeal basis . In this regard, Committee members suggested that the proposed consulting study should also include in-depth interviews at departmental level to determine user needs, desires and problems . They recommended consideration be given to an integrated system which interfaces between designated departments and agencies . The Deloitte & Touche consultants explained that the Committee direction was more in line with drafting a plan for the County which would take three to four months to complete. The proposed review is only an extension of the financial audit and therefore an examination of the internal controls for the County' s computer system. The Committee questioned Administration' s representatives whether they could enhance the Data Processing Review and Long Range Plan. The Administration noted they did not have the resources in-house and to contract for desired services would cost approximately $150, 000-$200, 000 . The Finance Director added that he felt the Administration' s review was in fact a plan and sufficient as a starting point for implementing a strategic computerization project . The Committee requested information regarding Administration' s plans to implement the recommendations made in the subject EDP review and plan. The Finance Director informed members that using departmental justification form as outlined in the same study, the Administration' s steering committee would be able to evaluate equipment requests and decide on equipment which is best for the County. Also, they would be able to redefine County' s needs on an annual basis . The Committee then suggested a member of the Council be appointed to the steering committee. FC-425 Page 4 August 13, 1991 The Committee recessed for lunch and reassembled at 5 :26 p.m. the same day. One member suggested the Administration have each department submit the (FORM-H) justification forms for Council review, prior to the Council releasing funds requested in Resolution Nos . 346, 347 and 348 and suggested the Administration use the new information to develop a plan which addresses Council concerns . He also suggested the subject $18, 000 for contract services might be used to perform an evaluation of the enhanced plan. Pursuant to Section 10-9 of the Hawaii County Charter, the Council, by resolution, may transfer part or all of any unencumbered appropriation balance from one agency to another . Your Committee on Finance is not in accord with the intent and purpose of Resolution No. 358-91 and recommends the file be closed. HELENE H. HALE, CHAIRWOMAN I � / ROBE•T H. MAKUAKANE, VICE CHR. BRIAN 1 . DE LIMA, MEM: . ' f4 - 414J l( 41I1P TAKASHI DOMING' , MEMB';i• MER K. LAI, MEM •HARRY S. DDLE, MEMBER SPE C R K. SCHUTTE, MEMBER POL