San Bernardino header
File #: 11733   
Type: Consent Status: Passed
File created: 2/27/2025 Department: Auditor-Controller/Treasurer/Tax Collector
On agenda: 3/11/2025 Final action: 3/11/2025
Subject: Budget Adjustments for SAP S/4 HANA with RISE Annual Subscription
Attachments: 1. Item #11 Executed BAI

REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS

OF SAN BERNARDINO COUNTY

AND RECORD OF ACTION

 

                                          March 11, 2025

 

FROM

ENSEN MASON, Auditor-Controller/Treasurer/Tax Collector 

         

SUBJECT                      

Title                     

Budget Adjustments for SAP S/4 HANA with RISE Annual Subscription

End

 

RECOMMENDATION(S)

Recommendation

1.                     Authorize an allocation of $3,601,939 from the Enterprise Financial System Post Implementation Costs General Fund Reserve to the Auditor-Controller/Treasurer/Tax Collector for the S/4 HANA with RISE subscription.

2.                     Authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustments to the 2024-25 budget, as detailed in the Financial Impact section (Four votes required).

(Presenter: Vanessa Doyle, Assistant Auditor-Controller/Treasurer/Tax Collector, 382-7005)

Body

 

COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES

Improve County Government Operations.

Operate in a Fiscally-Responsible and Business-Like Manner.

 

FINANCIAL IMPACT

Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). The Auditor-Controller/Treasurer/Tax Collector (ATC) is requesting to fund the $3,601,939 cost for the S/4 HANA with RISE subscription with a General Fund ongoing allocation in the amount of $3,731,000, currently funded in the Enterprise Financial System Post Implementation Costs General Fund Reserve (Reserve) approved by the Board of Supervisors (Board) as part of the 2024-25 Budget on June 11, 2024 (Item No. 110).

 

The following 2024-25 budget adjustments are requested:

 

Fund  Center

Commitment Item

Description

Action

Amount

3400001000

52002115

Computer Software Expense

Increase

$3,601,939

1000

37008435

Fund Balance-Committed - Enterprise Financial System Post Implementation Costs

Decrease

$3,601,939

 

BACKGROUND INFORMATION

On July 30, 2024 (Item No. 1), the Board approved Agreement No. 24-674 with SAP Public Services, Inc. (SAP), for SAP S/4 HANA with RISE and Ariba subscriptions, covering the software support, infrastructure support, and maintenance in the amount of $20,701,203 for the term of July 31, 2024, through September 8, 2029.

 

The County uses SAP’s enterprise resource planning system countywide, as well as for other non-county entities, for financial operations and reporting.  SAP’s platform was originally deployed within the County’s owned, managed, and operated data center but is required to move to SAP’s S/4 HANA with RISE Private Cloud environment by 2027. The SAP S/4 HANA with RISE software as a service and infrastructure as a service subscription will allow the County to migrate its current SAP on-premise system to a cloud environment, increasing the security of the County’s financial data and providing advanced capabilities to streamline processes across County departments.

 

Due to an oversight regarding the timing of the S/4 HANA with RISE subscription invoice, $3,731,000 ongoing funding for the annual subscription was included in the Reserve rather than ATC’s budget. The requested budget adjustment will transfer $3,601,939 from the Reserve to ATC’s budget to pay for the SAP S/4 HANA with RISE annual subscription.

 

PROCUREMENT

Not applicable.

 

REVIEW BY OTHERS

This item has been reviewed by County Counsel (Kristina Robb, Deputy County Counsel, 387-5455) on February 7, 2025; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, General Accounting Manager, 382-7022) on January 17, 2025; Finance (Jenny Yang, Administrative Analyst, 387-4884) on February 13, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on February 24, 2025.