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.