The biggest changes are sometimes the quietest, far from the headlines and TV undercover reports.

For the next year, a citywide project team, including 15 of the 82 Controller's Office employees, will begin implementing the city's new financial management system, part of a new enterprise resource planning (ERP) system that has been on the drawing boards two years.

The massive $22.7 million project will implement a web-enabled SAP system designed to replace the city's antiquated late-'80s software. Phase I will include financial and procurement (accounting, purchasing, asset inventory, construction project cash flows and so forth). Phase II, scheduled to go online January 2, 2007, will include human resources and payroll.

"This is a system that has long been on the verge of collapse and must be replaced," City Controller Annise Parker said. "Taxpayers and city employees also should benefit greatly from enhanced efficiency."

"I would like to thank the city employees who will be performing their regular jobs in addition to this special project. It could be the most challenging year of their lives as we work against an extremely aggressive timeline," she said.

By July 2006, the project team is expected to have trained financial personnel from all city departments  to use the new system that will manage the complex financial operations of a city with a $2.5 billion annual budget.

The $15,113,464 SAP Public Services contract includes software, maintenance and support, licensing, training and a performance bond (included at the controller's request) to protect the city. Related project costs, such as  hardware, conversion services and specialized personnel, total $7.6 million. Major funding sources include the Combined Utility System ($4.5 million), the Airport Improvements Fund ($2.5 million) and the Consolidated Equipment Acquisition Fund ($13.7 million).

An audit released by City Controller Annise Parker confirms that a contractor in the city’s 2003-2004 After School Achievement Program (ASAP) consistently failed to meet daily attendance and programming requirements and repeatedly sought reimbursement for questionable expenses.

Phoenix Outreach Youth Center received $20,000 in grant funding to provide after school programming during the 2003-2004 school year. The contract required minimum average daily attendance of 50 participants with programming in four specific areas: academic enhancement, personal skills development, enrichment and community involvement.

According to the audit, Phoenix did not meet the attendance requirement nor did it provide programming in all four specified areas. Phoenix  was also cited for submitting reimbursement requests for unsupported expenses. From January to May 2004, more than $6,000, or 30.5% of the $20,000 grant, was denied due to inadequate documentation.

Parker believes Phoenix should have to repay the $12,000+ it received. “It's obvious from our audit Phoenix did not comply with any of the terms of its contract with the city,”  Parker said. “Therefore, the organization should not be entitled to any funding at all.”

Parker also recommended penalties for future contractors who don’t comply.
In its official response, the Houston Parks and Recreation Department, which oversees the program, indicates that all audit findings have been addressed through implementation of strict new program guidelines. Phoenix Outreach is not a recipient of ASAP funds this school year.

The Controller’s Office initiated in-depth financial audits of Phoenix Outreach and five other ASAP contracts after a preliminary review by Mayor Bill White’s office identified numerous problems. Although the problems were not as serious as Phoenix Outreach's, auditors identified a couple of minor non-compliance issues with two of the other five contractors.

ASAP is offered at nearly 90 sites throughout Houston. The program costs the city about $2.8 million annually.

In the past week, Houston has lost three civic leaders who made Houston a much better place to live - neighborhood activist Ruby Cooper, social worker Helen Fisher and state Rep. Joe Moreno.

Ruby Cooper was one of the great neighborhood leaders who make Houston such a strong city. As president of the East Houston Civic Club and treasurer of the local PIP (Positive Interaction  Program) affiliated with HPD's Northeast Command, Ruby was always there with her polite, but persistent efforts when things needed to get done.  She died Sunday at the age of 76.

By day,  pioneering social worker Helen Fisher enriched the lives of many children.  But she didn't stop there. Fisher also helped found SEARCH,  an agency for the homeless that helps about 2,000 adults and children each month, as well as New Hope Housing, a low-cost housing program for the homeless.  A dedicated political activist, she also served as Democratic Precinct 214 chair for 25 years until her death Sunday at age 75. 

Rep.  Joe Moreno, a highly respected and well-liked four-term legislator, was a strong advocate for his East End district, especially concerning cleaner air, bilingual education and the mental health needs of children. In 1999, the Harris County Delegation chair received the outstanding legislator award from the Coalition of Texans with Disabilities. He also was named the 2003 Legislator of the Year by the Justice of the Peace and Constables Association.  The 40-year-old legislator was killed in an auto accident early Friday morning.