01-26-1994 Council Agenda - Laserfiche WebLink

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7J4 e( 2V/4 `V a//2aaa MAYOR Raymond G. Hanson COUNCIL Beverly Scalze Jim LaValle Steve More Ian Bob Pedersen 515 Little Canada Road, Little Canada, MN 55117 1600 ADMINISTRATOR (612)484-2177/FAX: (612) 484 -4538 Joel R. Hanson DATE: January 21, 1994 TO: Mayor & City Council FROM: Julie Manville, Accounting Clerk RE: REQUEST FOR APPROVAL OF HARDWARE /SOFTWARE PURCHASES At the January 12, 1994 workshop meeting, a proposal was discussed for the purchase of new computer hardware and software. The original amount proposed to the council for hardware and software was $15,154. The final amount has been lowered slightly to $14,868, a difference of $286. This decrease was a result of receiving lower than anticipated final figures from Banyon Data Systems and a revised estimate on the amount of Word Perfect 6.0 training required; therefore, I would like to request the approval of computer hardware purchases in the amount of $8,715 and computer software purchases in the amount of $6,153. I have listed below some specific information on the difficulties we have had with our current systems, and how the new systems will address these problems and enhance our data processing capabilities: * The current accounting system does not allow for the closing of the accounts payable month while leaving the general ledger month open. What this means is that when a month's transactions are completed, no payments for the next month can be made from the system until the prior month has been closed. All of the next month's payments must be hand -typed until the prior month is closed, and then these payments must be entered into the computer. This results in double work, as payments generated from the computer need only be entered once. The new accounting system will allow for the closure of one accounts payable month and the "opening" of the next, for check processing, while leaving the prior month's general ledger "open" for analysis and adjustments. * Another "end of period crunch" occurs again at the end of every accounting year when many year -end adjustments must be made and the new year must be started almost simultaneously. Until the old year can be closed, all checks must be hand -typed and then entered into the system when the old year is closed. The new accounting system will allow transactions to be posted to any prior accounting period designated. This will allow immediate closure of an old year, and work can begin on a new year. Postings related to the old year may then be processed, in the old year, when appropriate. -HPage 97