SAP Flexible Real Estate Contract Lease Management Implementation

SAP Flexible Real Estate Contract Lease Management Implementation City of Portland

Project Overview • What’s New? • The Governmental Accounting Standards Board (GASB) released new guidance, GASB 87 “Leases” • Based on the principle that leases are financings of the right to use the underlying asset • Why? • Recognition of lease assets and liabilities in the financial statements • More useful information to financial statement readers

Project Scope • Implement the SAP Contract Lease Management Solution • Goals: • Identification of all City lessee and lessor agreements • Support the regulatory compliance of GASB-87 • Define Standard processes for lease management and accounting • Success Criteria • Able to report all lease activities as required in GASB-87 • Leases across the city will be accounted for and processed in a standardized method.

Project Status • The GASB board moved the GASB 87 implementation date to 2021. The City implementation must be complete by 7/1/2021. • We slowed down the project and the EBS team has been working on the system design. • The EBS Team has studied CLM’s configuration and programming, has reviewed the consultant’s base configuration, are fixing issues, developing solutions to meet the City’s requirements, and are working to complete the configuration and programming.

Project Schedule NOV EBS Planning DEC JAN FEB System and Process Design MAR Configuration Development APR SIT Testing MAY UAT Testing Prep and Support JUN Cutover Preparation JUL *Support Go Live Accounting and Bureaus All Support the System and Process Design Training Planning Training SME’s User Testing Mock Data Migration Prepare Data for Migration Maintain Data Migration Project Management Communication Team Meetings Training

Project Needs and Benefits What do we need from you? • • Awareness Support on the Standardization Appropriate Resources for Design meetings and training Support of the data gathering tasks How will this effort benefit? • • Process efficiency gains through automation Transparency of the City’s lease assets and obligations Robust lease, financial, and managerial reporting Compliance with the GASB requirement