At a City of South Pasadena Finance Commission meeting (date not specified), finance staff presented a detailed FY2025–26 work plan that centers on modernizing core systems, strengthening internal controls and improving capital‑project accounting.

Nick, finance department staff leading the presentation, said the department will migrate its 14‑year on‑premises Springbrook enterprise resource planning (ERP) system to a cloud‑based Springbrook platform. "We have a 14 year old on premises version of that, which is no longer being supported. So we're upgrading to a cloud based version," Nick told commissioners. He described a schedule of data validation and process review from January through June, with a target transition in July. Staff plan to run dual systems for about a month and "declare victory" roughly a year after implementation if the cutover proceeds as planned.

Officials said the upgrade aims to expand reporting, workflow approvals and audit trails, and to provide redundancy for business continuity. Nick said typical first modules to migrate will be the general ledger and payroll, with procurement and other modules added later.

The presentation also outlined the department's annual audit timeline. Staff reported the FY2024 audit was completed in September and that auditors have begun work on the FY2025 file. Audited financial statements (ACFAR) are tentatively scheduled for a joint presentation to the commission and city council in January or February.

On budgeting, staff previewed a more collaborative budget development process that will give the finance commission an "intentional curriculum" to prepare commissioners before the May release of the proposed budget. The plan includes monthly budget‑to‑actual reporting (with a roughly 45‑day lag), five‑year general fund projections and trend analysis for major revenues such as property tax and sales tax.

Purchasing and contracts were a second major focus. Staff said the city recently hired a purchasing and contracts administrator and has begun department trainings (recorded on Teams for staff access). The goal, staff said, is to modernize the purchasing ordinance and reduce lead times by using cooperative purchasing and "piggybacking" where permitted. Nick noted the city currently uses PlanetBids to broaden vendor outreach and encourage competition.

Commissioners pressed staff on ways to reduce costs on large capital projects — for example, by improving specifications to reduce change orders, encouraging competition among bidders, and tightening contract management. Staff emphasized that stronger bid competition and detailed baseline specifications help limit low‑bid/high‑change‑order outcomes.

Staff said capital‑improvement accounting requires a midyear cleanup. Over recent years, the city moved funds from special revenue accounts into a general capital fund, making project tracking difficult. Nick said staff expect a cleanup entry at midyear to restore fund‑accounting best practices before FY2026–27.

The presentation included staffing and software notes: finance is budgeted for 11 full‑time positions (including an IT manager housed under finance). Staff listed named finance personnel present and said they will rely on temporary accounting help to maintain day‑to‑day operations during the ERP implementation. The department also is evaluating reporting tools: Questica has been canceled and OpenGov remains under review.

Why it matters: The plan aligns modernization (ERP and reporting), internal controls (audit and purchasing updates), and fiscal sustainability (CIP accounting and long‑term projections). Staff asked the commission for ongoing advisory review of audit reports, budgets and policy updates.

Next steps: staff will begin kick‑off activities with Springbrook on implementation scheduling, continue auditor work for FY2025, present monthly budget reports and a midyear CIP cleanup to the commission, and return with specific policy updates and training timelines.