Finance committee backs SAP Concur to replace Oxygen invoicing system

NEW HAVEN — The city’s finance committee on Tuesday recommended a three-year contract with SAP Concur to replace the Oxygen invoicing front end after city officials said the current system creates payment delays, governance risks and manual work across departments. City Controller Christy Sampieri told the committee the Oxygen system requires manual “releases” of invoices and that “the CEO of Oxygen has direct contact with our city vendors, holds the ability to manipulate our ERP system, and has full visibility into our funding sources, workflow structures, and vendor account numbers.” Sampieri said that external access presents financial and confidentiality risks and that the city should “take back control of our financial system.” The committee heard a presentation from SAP Concur representatives, who described Concur as a cloud-hosted invoice, travel and expense platform that integrates with the city’s Munis general ledger, adds daily ACH payment capability, and uses automation and machine-learning capture to reduce manual data entry. Terry Hagemeyer, a Concur representative, described features intended to speed vendor payments and create audit trails: “Daily ACH payment processing to vendors, contractors, and service vendor service providers,” and an automated capture process the vendor said achieves “over a 98% accuracy rate” for fields on invoices. Why it matters: Committee members and staff said vendors, nonprofits and minority-owned businesses have experienced slow payments under the current process, which staff said reverted to paper checks after a cybersecurity event about two years ago. Budget Director Shannon McHugh told the panel that departments and the board of education face program disruption when payments are delayed. Scope, cost and procurement: The contract before the committee covers a three-year term at $676,725 total (approximately $213,000 per year, per staff presentation). Sampieri told the committee the city spent about $965,156 on Oxygen from 2019–2025 and currently pays roughly $150,000–$175,000 per year for Oxygen; staff said Concur’s proposed annual subscription is about $213,000 but would bring additional features that staff expect to reduce labor and error costs over time. Security and data residency: Sampieri and others raised concerns about Oxygen’s ownership and offshore data residency; staff said Concur can host data in U.S. data centers and provide SOC 2 and other compliance reports. Implementation: Concur staff said typical implementation takes about three months for configuration and remote knowledge transfer; staff said the city would continue using Munis for the general ledger and replace only the Oxygen component. Committee action: The finance committee voted to move the item favorably to the full board. Committee members spoke in favor, noting vendor relations and fraud controls as priorities. The committee’s recommendation advances the contract for full approval. What committee members asked next: aldermen asked about vendor alternatives, lifecycle labor impacts and whether the new system would eliminate city positions. Controller Sampieri and Concur reps said the tool is intended to shift staff from low-value entry work to higher-value financial oversight and would not be used to eliminate the five-person accounts payable team. Staff will return with the procurement documents and, if the full board approves the contract, a schedule for implementation and legal review.