HRPayroll Service Delivery For The New Economy Executive

HR/Payroll Service Delivery For The New Economy Executive Overview Presentation June 12, 2012 GOV|EEducation D Government

About ADP: Who We Are? Industries Served • Global Companies • Government & Education 201 Regency Executive Park Drive Charlotte, NC 28217 • Founded in 1949 • Fortune 200 • 1 of 4 AAA rated companies – S&P, Moody’s • 640, 000 Organizations Worldwide • 2, 614 K-12 Systems Served • 51, 000 employees • 1 out of every 5 Americans are serviced by ADP • ADP moves over $1, 000, 000 Ø State Ø Municipalities ØCounties Ø Higher Education Ø K-12 Ø Public Healthcare Ø Law Enforcement Ø Agencies Ø Utilities ØFederal • Health Care • Services • Automotive • Manufacturing • Retail • Financial • Hospitality Experience – Innovation – Best Practices - Sustainability Government | Education GOVED

What we do – Hosted (Cloud) Services § We are ADP, not an outsourced or partnered service § Data stays with one partner § Single point of contact § We are an Application Service Provider (ADP) § Not a co-location, Web or managed hosting provider § We only host ADP products § Highly transactional and complex applications § We arguably the most successful ASP § We service approximately 155, 000 clients § 300+ Associates dedicated to Hosting Services § We offer a predictable, reliable and scalable solution § You only pay for what you use § We provide independent assessments of our offerings § Over 20 SAS 70 Type II reports which include effectiveness tests of hosting controls. Government | Education GOVED

ADP’s Recruit – Retire Suite of Services Technology + Process + People • Self Service Applications • Call Center • Case Management • Change Management Program • Standard Operating Procedures • Continuous Improvement Group • Business Process Improvement • Proven Implementation Methodology • Unmatched Experience © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Government | Education GOVED

Government & Education Critical Themes Budget Crisis Compliance Issues / Concerns Human Capital Crisis Key Stakeholders HR Managers Finance Executives School Boards State Legislatures Legacy Systems Costly ERP Upgrades © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Doing More with Less Best Practices Government | Education GOVED

Total Cost of Ownership Overview Pw. C Methodology • Total Cost of Ownership (TCO) of four core business functions • Payroll (PR) • Workforce Administration (WA) • Time & Attendance (TA) • Health & Welfare Administration (H&W) • Factors impacting core business function costs © Copyright 2012 ADP, Inc. Proprietary and Confidential Information • Update on original studies, in light of significant market changes in the delivery, technology, and scope of HR systems since 2003 Government | Education GOVED

Total Cost of Ownership Overview Technology Costs • System Installation Cost • System Upgrade Costs • System Maintenance Costs Process Costs • Outsourcing Costs People Costs • Direct Labor Costs • Direct Non-Labor Costs • Indirect Labor Costs © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Government | Education GOVED

Total Cost Of Ownership Finding Payroll $507 PEPY 35% Visible Costs System Installation Costs System Upgrade Costs Direct Labor Costs Outsourcing Costs Workforce Administration $354 PEPY In-House TCO $1, 403 PEPY Health & Welfare $221 PEPY 65% Hidden Costs Indirect Labor Costs Direct Non-Labor Costs System Maintenance Costs Time & Attendance $321 PEPY © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Government | Education GOVED

Total Cost Of Ownership Finding Payroll $507 PEPY Workforce Administration $354 PEPY In-House TCO $1, 403 PEPY Health & Welfare $221 PEPY Time & Attendance $321 PEPY © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Payroll $436 PEPY 40% Average Cost Reduction Workforce Administration $101 PEPY Partnered Approach TCO $845 PEPY Health & Welfare $174 PEPY Time & Attendance $134 PEPY Government | Education GOVED

So What? $10, 044, 000/Year Savings By Partnering/Outsourcing/Privatization © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Government | Education GOVED

The Service Based Approach Risk People Services Software Disaster Recovery Service Organization Core Competency © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Government | Education GOVED

Summary Benefits of Partnering With A Service Provider Lowers Financial Risk • Decrease TCO • Variable Cost Model Lowers Technology Risk • No Fear Of Obsolescence • Proven Technology • Single Vendor Management • Tier 4 Data Centers • Proven Disaster Plans through 9/11 & Hurricane Katrina Lowers Compliance Risk • Portion Of Risk Shifted To Service Provider • Stable Vendor – AAA Credit Rating • Easily Integrate Additional Organizations and Services • Automated Compliance Services © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Government | Education GOVED