Fiscal Research Division
Fiscal Brief
Executive Summary
Information Technology
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September 17, 2008
BEACON – Building Enterprise Access for North Carolina's Core Operation Needs
The BEACON Human Resources ( HR)/ payroll
system is the HR/ payroll system for
approximately 90,000 State employees. Beginning
in early June 2008, local print and television
media began reporting problems with the new
system. The problems included reports of pay
shortages for overtime, shift premiums, etc.,
incorrect leave accruals, and resolution issues for
some employees.
As a result of these media reports and several
inquiries from legislators, the Fiscal Research
Division ( FRD) has reviewed the reported post-implementation
issues with the Office of State
Controller. Staff has also interviewed several
agencies and departments relative to the
BEACON HR/ payroll system. These agencies and
departments include the Department of Health and
Human Services, Department of Correction,
Department of Transportation, the Office of
Administrative Hearings, the Community
Colleges System Office, and the Department of
Insurance.
While there have been some issues with the
proper crediting of leave and in some instances
supplemental pay, it appears the system is
generating base pay correctly for all employees
and supplemental pay correctly for the majority of
employees when agency time administrators or
supervisors have entered/ approved time by
payroll cut- off dates.
Please see the complete report for background
information and our findings.
Background:
In 2001, the General Assembly authorized a State
Business Infrastructure Study and directed the
Office of State Controller ( OSC) to determine the
feasibility of developing and implementing a new
business infrastructure ( human resources/ payroll,
budgeting, accounting, revenue collection, cash
management, investments, and other business
functions) for the State. The study commenced in
February 2003 under the direction of OSC with
assistance from the Office of State Budget and
Management, the Office of Information
Technology Services, the Office of State
Personnel, and the Department of Transportation.
Completed on October 31, 2003, the study
concluded that continued use of the current
business systems may adversely impact the fiscal
integrity of State government as well as the
efficiency and effectiveness of its operations. This
conclusion was based in part upon findings that
the legacy systems supporting the State's core
business functions were over twenty years old
with limited functionality. These systems rely on
dated technology, do not communicate well with
each other, are difficult to change for new
operational requirements, and are hard to operate
and maintain. Moreover, they are at risk of failure
due to age, withdrawal of vendor support and the
loss of experienced personnel that are reaching
retirement age.
The General Assembly subsequently approved the
recommendation to move forward with an
Enterprise Resource Planning solution to develop
one integrated system. The adopted strategy