YMCA Canada 1867 Yonge Street / rue Yonge Suite 601 / bureau 601 Toronto, ON M4S 1Y5 416-967-9622 ymca.ca Memorandum

To: CEOs From: Laura Palmer-Korn, Executive Vice-President Subject: Member Association Guidance for calculating “user”costs Date: August 12, 2016 I am writing as a follow-up to Wednesday’s national webinar, during which information was provided regarding user fees for KPMG’s Dynamics for Membership (DfM) and the Microsoft “stack”. A number of questions were raised regarding them, and, in the interest of enabling member associations to undertake a meaningful assessment of their potential user licensing and support costs, a model has been developed that may prove useful for arriving at those calculations. Solution License and Support Fees The key ongoing costs for use of DfM are license and support fees. The information below, and the accompanying Excel model, are intended to help each association estimate its fees based on a number of assumptions and pricing information available from Microsoft and KPMG at this time.

The Master Services Agreement (MSA) defines a contractual relationship and remedies, however, it does not detail the licensing and support cost per every potential user category at an individual YMCA Member Association. It does, however, establish the initial DfM licensing and support fee per user. Listed below are specific DfM (KPMG) and Microsoft components that comprise the YMCA Solution. The table is intended to describe each component and its functions as they pertain to the overall Solution. The cost of each type of license has been estimated based on figures obtained from Microsoft and our Licensing Solution Provider, Softchoice Canada. The specific solution components to be licensed are: Solution Component Description KPMG’s Dynamics for Membership (DfM) Microsoft Dynamics customized for membership sales and

management. A single YMCA-wide database will have portals for each participating YMCA and membership portals for online self-serve features.

Microsoft Azure A cloud computing platform and infrastructure for building, deploying, and managing applications and services through a global network of Microsoft-managed data centers.

Microsoft Dynamics AX An Enterprise Resource Planning (ERP) platform which provides core functionality, including Finance, Human Resource Management (HR), Project Management and Supply Chain Management.. (Note: the Enterprise version is used to

customize the Task version used by most users.) Microsoft Dynamics CRM A Customer Relationship Management (CRM) platform which

provides sales, marketing and customer service functionality. Microsoft Office 365 with Yammer A suite of business programs, including Excel, Outlook,

PowerPoint, SharePoint, Word. Yammer is a social network and collaboration tool.

Microsoft Power BI A business intelligence (BI) reporting and dashboard tool. While the underlying basis for some of these components is fixed, the licence fees have been set on a per user basis for all components. All users of DfM will also require licenses for Azure, Dynamics AX, and Office 365. A "user" means an individual employee for their term of employment in a specific role; no sharing of user IDs or switching of licenses between multiple individuals will be permitted. Each user will be a named individual. This also ensures elements required for PCI compliance. The potential factors and assumptions to be considered in identifying a Member Association’s users may include the following: • the number of staff persons in each key role • the use of full-time vs. part-time employees in key roles • the ability of staff to fill multiple roles (e.g., membership and wellness instructor) currently

providing scheduling flexibility • the number of HFA centres, Child Care centres, Employment & Newcomer Centres, Camps, etc. • optimization of member vs. staff inputs, e.g., for registrations • separation of duties to enforce sound internal controls

The Excel model which accompanies this memo is designed to help an association to estimate the prospective user license and support fees by organizational/operational role. It is suggested that a minimum and maximum range of users be calculated for reference purposes, since the final calculation of the number of users may change over time. You recently completed an IT Survey for this initiative and in that exercise we asked you to calculate people and positions, it may be a good place to start. It would be extremely helpful if the preliminary results of each member association’s user calculation is shared with YMCA Canada. Such information will be an important indicator of the potential user costs to the federation. In closing, please feel free to get in touch at your convenience if questions arise or further clarification is required regarding the above.

CEO WEBINAR Considerations for: IT Operating Costs & Budgeting Moving Beyond CLASS Project Monday, August 29, 2016

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Purpose

• To provide advice regarding a member association’s prospective considerations for preparing an operating budget supporting its Information Technology needs, including Dynamics for Membership (DfM) and Microsoft license and support fees

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Budgeting for implementation of DfM Solution – project costs

The Participation Agreement with YMCA Canada commits the participating YMCA to pay the one-time costs as outlined in the memo sent to each YMCA.. o Timing: Oct. 1, 2016 – Sept. 30, 2017

Other project costs to consider (cashflow timing): • Costs to prepare for implementation, including data preparation, data

migration (potentially requiring third-party assistance), and staff time for training (fall 2016 – Sept. 30, 2017)

• Modifications to DfM which fall outside the agreed-upon system requirements. (summer 2017)

• Interfaces to other systems, including websites, where those interfaces are outside of the DfM scope (spring-summer 2017)

• Hardware – building access, tablets/computers (summer 2017)

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Ongoing operating cost of DfM Solution

The DfM solution, including the Microsoft components, are charged on a per user basis. Use the License Cost Estimator. Other operating cost considerations: • Software components • Hardware • People Deduct current expenses for elements which will be replaced by the DfM Solution to determine the net increase in costs. Payment processing costs are independent of the DfM Solution and should be budgeted separately. More information will be provided as it becomes available to assist associations with budgeting for 2017.

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see following slides

Annual Operating Cost - Software

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Element Notes

Microsoft licenses Will replace some existing Microsoft cost and expand functionality; includes hosting

Microsoft support Will replace some existing Microsoft cost

DfM licenses Will replace current membership software and potentially form-development and electronic marketing tools

DfM support Is included in the DfM license and support fees

National YMCA support desk Will provide support for level 1 issues and triage/direct level 2 & 3 issues to the DfM support team Structure & cost to be determined & communicated

Accounting system (Dynamics AX or Great Plains)

Will replace current accounting system cost (unless on Unison)

Annual Operating Cost – hardware & other

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Element Notes

Hardware – servers Eliminate in-house servers for membership/accounting database and email

Hardware – bandwidth Awaiting specifications

Hardware – devices More portable devices to provide consumer choice in access

Hardware – access gates/turnstiles, photos and membership card printing

Intent is that solution will work with existing building access, but more work needed on this

Paper, office supplies

Most transactions will be online with file attachment capability, eliminating need for paper handling & storage

Annual Operating Cost - people

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Element Notes

IT structure (most appropriate models are being considered by the Core Solution Group)

Reduce/eliminate on-site servers Greater reporting capability in hands of users Support issues handled by National YMCA support desk/DfM support

Front line structure Member self-serve capability Direct links to email and social media Shift focus from administration to relationships & engagement

Back office support Streamlined, real-time transaction handling should reduce administrative workload

Reporting Essential standard reports aimed at Board/management/operations included in implementation cost

Training Deployment and ongoing training materials and delivery included in implementation cost; staff time is an association cost

Per User Per Month: Licensing and Support Costs—KPMG for DfM and Microsoft (MS) for Dynamics “Stack”

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YMCA User Type (examples only)

DfM

Azur

e

Dyn

amic

s AX

Dyn

amic

s CR

M

Off

ice

365

Pow

er B

I

Tota

l

Customer Service Representative 87 9 18 6 $120

Program staff 87 9 18 6 $120

Program coordinator/supervisor/manager 87 9 18 6 $120

Centre manager/General manager 87 9 18 6 4 $124

Executive manager 87 9 18 6 4 $124

Accountant/business analyst 87 9 18 6 4 $124

Marketing/communications specialist 87 9 18 19 6 4 $143

IT - superuser 87 9 112 19 6 4 $237

Discussion

Questions?

Comments?

THANK YOU

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YMCA Canada Aug 12, 2016Technology ProjectAnnual License Cost Estimator

Table 1 - License Costs (as presented during Aug 10, 2016 webinar, slide 17). License costs are preliminary and reflect the latest information from our LSP and Microsoft

DFM Azure Dynamics AX Dynamics CRM Pro Office 365 E3 Power BI Pro TotalCustomer Service Representative 87 9 18 6 $120Program Staff 87 9 18 6 $120Program coordinator/supervisor/manager 87 9 18 6 $120Centre Manager / General Manager 87 9 18 6 4 $124Executive Manager 87 9 18 6 4 $124Accountant/business analyst 87 9 18 6 4 $124

CRM Power User Marketing / communication specialist 87 9 18 19 6 4 $143Super User IT Supervisor 87 9 112 19 6 4 $237

Table 2- User CategoriesUser Categories / Levels

Regular User

Senior User

CRM Power User

Super User

Instructions and NotesStep 1 - Using information presented in Table 1 and Table 2 calculate the number of users in 4 user categories - Regular, Senior, CRM Power User, and Super User.Step 2 - Enter the numbers of users in each category in Table 3 to calculate your YMCA's estimated annual license cost

YMCA staff performing multiple roles should be counted only once in a category that covers most of the required functional capabilitiesDynamics AX license cost for super users reflects cost for Enterprise edition of Dynamics AX Azure hosting fee component is an estimate of per user share of total cost

Table 3 - Estimate of YMCA License costsUser Categories / Levels Estimated number of named users Estimated Annual

License Cost, $

Regular User 0 $0Senior User 0 $0CRM Power User 0 $0Super User 0 $0

TOTAL 0 $0

CEO, CFO, Controller, Executive Manager, General Manager, Senior Accountant, Member Services Director, Business Analyst

Marketing Manager, Communications Manager, Manager of Fundraising (e.g. Annual Giving) and etc.

IT Director/Manager, System Administrator, Back Office Administrator

YMCA User Types (examples only)Monthly License Costs, $

Ability to use core DFM functions and advanced analytical, business intelligence features of the solution.

All of above and ability to manage advanced CRM functions related to sales, marketing, fundraising, etc. Ability to manage all advanced back office features of the application for example set core entities, categories, manage user permissions, etc.

User Categories

Senior User

Regular User

Functional Capability Enabled by Solution

Ability to use core DFM functions, e.g. register program participants, approve financial assistance, manage waivers, view member profiles, print rosters, etc.

Examples of YMCA Roles and Job Titles

Frontline Customer Services Representative (CSR), Program Staff, Team Lead, Instructor, Program Corrdinator (e.g.Chilld Care coordinator) and etc.