FIS/Kuali Demonstration: October 11-12, 2005 Kuali Project Update 10/11/05

FIS/Kuali Demonstration: October 11-12, 2005

Kuali Project Update

10/11/05


http://Kualiproject.org.

• Kuali is a community/open source initiative to create a comprehensive financial information system for higher education

• Designed for any Carnegie Class institution, from Community College to R1 institutions– Indiana University is 8 campuses

• 2 R1 campuses• 6 smaller campuses

• Has had significant review by NACUBO colleagues


What is it all about?

New SystemDesign ?

Indiana Financial System

RefactorThe

Technology

Limited Enhancements

Defined byFunctional

Council


Why are we doing this?

• FIS functionality

• 10 more years.

• FIS technology base shaky – 12 year old technology – Vendor support ???? – Loss of Control ?


IU’s Options ?

• Retooling the FIS alone – Time– Ongoing support and costs

• Buy PSFT Financials?

• Partner with like minded colleagues– Share costs– Get enhancements faster

• Others have looked at the FIS– Mostly positive. – Several are investing in Kuali.

• For reasons ranging from cost to control of destiny, collaborative efforts such as this are becoming more common among our peer institutions.


Project Costs

• $7.4 m total project cost

• 72+ person-year effort

• Core partners:– $500,000 $2,000,000,

• depending on Size and Carnegie Class

• >$4,400,000 from Founding Partners– Cash or tendered personnel resources

• March, 2005: $2.5m grant from the Andrew W. Mellon Foundation


Founding Partners

• Currently have Six Institutional Founding Partners

• NACUBO is also a Founding Partner

• r*smart is a Founding Partner


What are we actually going to do?

• Client Server J2EE platform– Modular architecture

• Work will be done by Founding Partners and other approved investing partners

• At IU, it will be delivered through OneStart/u-Portal

• Kuali will work with the Onestart Workflow© engine.


Timeline

• Project calls for 27 months to do the development.– Phase I: Baseline system in 12 months– Phase II: Full System within 27 months– Phase III and beyond: TBD

• Enhancements not done in initial project


Governance

• Kuali Board– Voting member from each Institution– NACUBO and r-smart– Chair from Indiana– Extended Board

• Project Manager– Developers from each Institution

• Functional Council– Members from each Institution– NACUBO and r-smart– Subcommittees


Accomplishments to date

• Several Functional Council Retreats– Refine requirements– Prioritize enhancements in scope

• Several Technical Council Retreats– Define overall technical architecture

• J2EE, SOA, XML– Create Kuali Nervous System

• Tech Team has created the first working transactions

• Purchasing/AP modules already in production• Core Partners have tendered their pledged

resources


Next Steps

• Continued Functional Council meetings– SME’s working with development teams

• Six development teams working on specific functionality

• Kuali Research Administration


Baseline system

Chart of AccountsGeneral LedgerBasic accounting e-DocsRouting and ApprovalBasic reports

Additional Modules

Labor DistributionGrants Management (pre and post award)Capital AssetsAccounts ReceivableDisbursement VoucherFDRS (Decision Support)*PurchasingAccounts PayableBudget ConstructionEndowment

IU infrastructure elements that are also available

OneStart Workflow© (XML)Portal Framework*IUIE (Decision Support)*

*Optional

Proposed Kuali Scope


Questions ??


Chart of Accounts

Bill Overman


What is the Chart of Accounts?

•COA is the set of tables that define the codes and coding structures within the Financial Information System (FIS)

–Multiple Charts of Accounts•Organizations•Accounts•Sub-Accounts•Object Codes•Sub-Object Codes•Levels•Consolidations


Chart of Accounts at IU

IU COA

UA COA BL COA IN COA Regional COAs

BA COA IA COA


The Fundamentals

• External Financial Reporting– IU Chart – Consolidated Level

• Internal Financial Reporting– Responsibility Center Management– Departmental Management– Detail by Account

• Internal Control– Reporting Hierarchy– Routing

• Budget Construction


Benefits of Multiple Charts

• Ability to handle complex reporting structures

• Auxiliary Charts are not required to contain object codes unrelated to their activities (i.e. Tuition, State Appropriations)

• Campus charts are not required to contain object codes unrelated to their activities (i.e. Cost of Goods Sold, Inventory, etc.)

• Increased Information and Knowledge at the Campus Level

• Easy Access to Campus Level or Auxiliary Reporting.


Organizations

• Organization– Example: FMOP (FMS Administration)– Collection of accounts or a collection

of other organizations.– An organization may have any of the

following attributes• Chart of Accounts, Responsibility Center,

Campus, Department, Subunit• HRMS• Can include all fund groups• Up to four alphanumeric characters (eg.

FMOP)


Accounts

• Account Number– Specific identifier for a pool of funds

assigned to a specific organization for a specific function.• Example: 19-126-10 (FMS Administration)

Reports to org FMOP

– All accounts can be self-balancing– Attributes of an account include the

following:• Chart• Organization• Function• Restricted/Unrestricted • Fund Group specific


Sub-Accounts

• Sub-accounts achieve further division of an account for internal reporting purposes.

• Example: custr (FMS Customer Service) Reports to 19-126-10

• Attributes of a sub-account include the following:– Account specific– Assumes all attributes of the account it reports to– Cost Share Functionality– Reporting Code for separate linkages to units


Object Codes

• Object Codes are detailed identifiers for Income, Expense, Asset, Liability and Fund Balances.– Chart specific– Four numeric digits– Example: BL 1504 “Animal Care

Income” IN 1504 “Card Services

Income”


Sub-object Codes

• Sub-object codes achieve further division of an object code for internal reporting purposes

• Attributes of a sub-object include the following:– Specific to an account and object code– Assumes all attributes of the object code it

reports to• Example: In State Travel Object Code 6000

– Faculty Instate Travel, Fac– Staff Instate Travel, Sta– Student Instate Travel, Stu


Levels and Consolidations

• All object codes report to a higher Level code and each Level code reports to a higher Consolidation code – Approximately 80 Levels (although no

limit)– Approximately 20 Consolidations (no limit)– Example:

Object Code 2403 “Exempt Staff Salary Savings” Level PRSA “Professional Salaries” Consolidation CMPN “Compensation”


Hierarchy of COA at IU - Example

Highest Organization Level

Organization that is also a Campus

Organization that is also an RC

Organization

Organization

Account

Sub Account

VPPF

UA

IU

FMS

FMOPFMSY

19126101912631

aucap custr


Management Control and COA

• How can I use the chart for organizational management?– Flexibility in Reporting– Flexibility in making Routing decisions– Hierarchy for Responsibility Management– Facilitates internal controls by assigning

account managers, supervisors and delegates.

– Tool for measuring the performance of a subunit


Management Control and COA

• What tools do I have to achieve my reporting objectives?– With the Approval of the Chart Manager

• Organizations• Accounts • Object codes

– Sub-accounts (budgeting / spending)– Sub-object codes (budgeting / spending)– FDRS Reports – FIS


Conclusions about the COA

Questions?


Kuali Conference10/11/2005

General Ledger

Processing


Agenda Topics

• Four Basic Tables: Labor Ledger Detail & Balance – General Ledger Detail & Balance - views exist that pull together chart and ledger data for reporting (pre-joined)

• Nightly Batch Components and the Affect of System Reference Tables & Chart of Accounts Documents

• Touch on Data Inquiries and Reports (Kuali & FDRS/IUIE)

• Month-End Processing• Year-End Processing


General Ledger Detail

FIELD NAME FORMAT BUSINESS NAME

• UNIV_FISCAL_YR NUMBER(4) FISCAL YEAR• FIN_COA_CD VARCHAR2(2) CHART• ACCOUNT_NBR VARCHAR2(7) ACCOUNT NUMBER• SUB_ACCT_NBR VARCHAR2(5) SUB ACCOUNT• FIN_OBJECT_CD VARCHAR2(4) OBJECT CODE• FIN_SUB_OBJ_CD VARCHAR2(3) SUB OBJECT• FIN_BALANCE_TYP_CD VARCHAR2(2) BALANCE TYPE• FIN_OBJ_TYP_CD VARCHAR2(2) OBJECT TYPE• UNIV_FISCAL_PRD_CD VARCHAR2(2) FISCAL PERIOD• FDOC_TYP_CD VARCHAR2(4) DOCUMENT TYPE• FS_ORIGIN_CD VARCHAR2(2) ORIGIN CODE• FDOC_NBR VARCHAR2(9) DOCUMENT NUMBER• TRN_ENTR_SEQ_NBR NUMBER(5) SEQUENCE NUMBER• TRN_LDGR_ENTR_DESC VARCHAR2(40) TRANSACTION DESCRIPTION


General Ledger Detail Cont.


• TRN_LDGR_ENTR_AMT NUMBER(19,2) TRANSACTION AMOUNT• TRN_DEBIT_CRDT_CD VARCHAR2(1) DEBIT CREDIT CODE• TRANSACTION_DT DATE TRANSACTION DATE• ORG_DOC_NBR VARCHAR2(10) ORG DOCUMENT NUMBER• PROJECT_CD VARCHAR2(10) PROJECT CODE• ORG_REFERENCE_ID VARCHAR2(8) ORG REFERENCE ID• FDOC_REF_TYP_CD VARCHAR2(4) REFERENCE DOCUMENT TYPE• FS_REF_ORIGIN_CD VARCHAR2(2) REFERENCE ORIGIN CODE• FDOC_REF_NBR VARCHAR2(9) REFERENCE DOCUMENT NUMBER• FDOC_REVERSAL_DT DATE REVERSAL DATE• TRN_ENCUM_UPDT_CD VARCHAR2(1) ENCUMBRANCE UPDATE CODE• TRN_POST_DT DATE POST DATE• TIMESTAMP DATE TIMESTAMP


General Ledger Balance


• UNIV_FISCAL_YR NUMBER(4) FISCAL YEAR• FIN_COA_CD VARCHAR2(2) CHART• ACCOUNT_NBR VARCHAR2(7) ACCOUNT NUMBER• SUB_ACCT_NBR VARCHAR2(5) SUB ACCOUNT• FIN_OBJECT_CD VARCHAR2(4) OBJECT CODE• FIN_SUB_OBJ_CD VARCHAR2(3) SUB OBJECT• FIN_BALANCE_TYP_CD VARCHAR2(2) BALANCE TYPE• FIN_OBJ_TYP_CD VARCHAR2(2) OBJECT TYPE• ACLN_ANNL_BAL_AMT NUMBER(19,2) ANNUAL BALANCE• FIN_BEG_BAL_LN_AMT NUMBER(19,2) FINANCIAL BEGINNING BALANCE• CONTR_GR_BB_AC_AMT NUMBER(19,2) C&G BEGINNING BALANCE


General Ledger Balance Cont.


• MO1_ACCT_LN_AMT NUMBER(19,2) MONTH 1 AMOUNT (JULY)• MO2_ACCT_LN_AMT NUMBER(19,2) MONTH 2 AMOUNT (AUGUST)• MO3_ACCT_LN_AMT NUMBER(19,2) MONTH 3 AMOUNT (SEPTEMBER)• MO4_ACCT_LN_AMT NUMBER(19,2) MONTH 4 AMOUNT (OCTOBER)• MO5_ACCT_LN_AMT NUMBER(19,2) MONTH 5 AMOUNT (NOVEMBER)• MO6_ACCT_LN_AMT NUMBER(19,2) MONTH 6 AMOUNT (DECEMBER)• MO7_ACCT_LN_AMT NUMBER(19,2) MONTH 7 AMOUNT (JANUARY)• MO8_ACCT_LN_AMT NUMBER(19,2) MONTH 8 AMOUNT (FEBRUARY)• MO9_ACCT_LN_AMT NUMBER(19,2) MONTH 9 AMOUNT (MARCH)• MO10_ACCT_LN_AMT NUMBER(19,2) MONTH 10 AMOUNT (APRIL)• MO11_ACCT_LN_AMT NUMBER(19,2) MONTH 11 AMOUNT (MAY)• MO12_ACCT_LN_AMT NUMBER(19,2) MONTH 12 AMOUNT (JUNE)• MO13_ACCT_LN_AMT NUMBER(19,2) MONTH 13 AMOUNT (CLOSING)• TIMESTAMP DATE TIMESTAMP


Accounting Cycle

• Chart of accounts updates (COA documents and reference tables) occur in Kuali upon approval and are copied out to decision support environments

• Sufficient funds checking is optional for Kuali accounts (calculates budget – actual - encumbrance - pending variances by object, level, consolidation, and account or perform cash checking)

• Two pending entry tables for Kuali documents – labor ledger and general ledger

• Labor ledger contains detail salary, wage, and benefits by person, position, type of pay, and pay period

• Entries processed by the labor poster are aggregated and feed the general ledger


Accounting Cycle Continued

• Collection of accounting feeds for GL processing– Entries from labor poster (LL Kuali documents –

i.e. salary & benefit transfers, payroll closings, and payroll accruals)

– GL Kuali documents (CR, DI, DV, etc…)– Entries from other university systems (EPIC, SIS,

travel, etc…)– Entries from external feeds (ID billings, bank

transmissions)


Accounting Cycle Continued

• All of the collected data then pass through the following processes– Pre-Scrubber and Scrubber– De-Merge Process– General Ledger Poster– Automated Reversal Entries– ICR Calculation– ICR Poster


Scrubber

• Edits are performed to validate data and identify any accounting transactions with errors (all non free-form fields are checked)

• Expired accounts are rolled to continuation accounts (C&G accounts have a 3 month extension after the expiration date)

• The following entries are generated by the Scrubber– Generated offsets by document type and balance

type – ensures balanced accounting entries– Plant fund capitalization entries by organization– Plant fund indebtedness entries by organization– Cost share transfers– Cost share encumbrances


De-Merge, Poster, and Reversals

• The De-Merge process pulls all records on a document that has been found to have errors - corrections are then made via the Kuali General Ledger Error Correction (GLCP) document

• The Poster applies the scrubbed accounting and system generated entries to the general ledger tables (GL detail, GL balance, account balance, sufficient funds balance, and open encumbrances)

• The Automated Reversal process systematically reverses documents that were created using the reversal date feature


Indirect Cost and Decision Support

• Indirect Cost Recovery (ICR) is charged to eligible accounts and revenue is recorded in the associated income stream account, usually a GF Responsibility Center (RC) account – sometimes a portion of ICR revenue is siphoned off to a central administration account for university projects

• The accounting and system generated entries are then passed on to the decision support environments (data direct, pre-defined queries, ad hoc reporting)


Account Inquiry Main


Account Inquiry Budget – Sufficient Funds


Account Inquiry Responsibility – Continuation Accounts


Offset Definition Reference Table


Org Maintenance - Capitalization


Account Inquiry C&G - ICR


Sub Accounts Inquiry - Cost Share


Administrative Error Correction (GLCP)


Kuali GL Enhancements

• Flexible Claim on Cash – allows posting of cash entries to a separate “offset account” and the generation of bank specific cash transactions to institutionally defined accounts and object codes

• Budget Year – a new attribute of the general ledger and e-docs that will allow tracking of financial transactions by budget year for a given funding source

• Indirect Cost Recovery Encumbrances – will assist project investigators (PI’s) in forecasting all expenses for Contract and Grant accounts


Pause from PowerPoint Presentation

• Balance inquiry screens with drill down

• Example of GL entries in Kuali


Month-End Processing• Majority of time spent on legacy systems and

external feeds– RC assessments– Student health insurance and student fees– Bi-weekly payroll accruals– C&G letter of credit cash transfers

• Legacy/external feeds are balanced, pre-edited, and accepted into accounting batch cycle

• Kuali documents process as usual (must have completed routing and approval process)


Last Working Day of the Month

• Generation of monthly Standard Reports:– Monthly Operating Detail Listing– Monthly Operating Statement– C&G Monthly Operating Detail Listing– C&G Monthly Operating Statement– Labor Operating Detail Listing– Interdepartmental Billings– Expired Accounts Listing– RC/Campus Budget Report– RC/Campus Budget Summary Report– ICR Income/Expense– Fund Statements & General Ledger


1st Working Day of the Month

• Place monthly Standard Reports on FDRS/IUIE Account View (electronic dynamic packet generation)

• Electronic notification of reports to all fiscal officers, account managers, supervisors, and selected delegates (primary and ERD)

• Remote printing and distribution of selected report packets (RDM) – ending December 2005


Account View Main


Account View Report Selection


Account View – Operating Statement


Account View – Transaction Listing


Pre Year-End Closing

– Creation of new fiscal year’s chart of accounts (Genesis)

– Budget construction– Generation of pre-closing business manager

reports – general fund org reversion, negative/positive cash, outstanding encumbrances, prior year June activity, general ledger, fund statements, preliminary balance sheet

– Update Kuali org reversion reference table– Posting of accrued vacation & sick liability


Pre Year-end Closing Cont.

– Monitoring of system reference tables• Accounting periods (open/close, assign dates)• System reference table (beginning balance

flag)• Payroll dates table• Benefit calculation rates

– Cancellation of selected unapproved Kuali documents after June 30 batch cycle

– Activation of year-end documents (for posting to periods 12 & 13)

– Snapshots of account and org tables for year-end reporting


Org Reversion Table


Accounting Periods Table


Systems Options Table


Document Type Table


First Closing (July 6)

• Normal month-end closing items including the first day standard reports

• First closing business manager reports

• Accounting transactions occur in two fiscal years

– Normal Kuali documents post in the period approved

• Prior to June 30 they post to the previous fiscal year

• After June 30 they post to the new fiscal year

– Year-end documents post to the prior fiscal year

• Through first closing they post to period 12

• After first closing through final closing they post to period 13


Second Closing (July 14)

• The time between first and second closing is primarily reserved for campuses to make adjustments

• Second closing business manager reports including a listing of transactions since first closing


Final Closing (July 25)

• Campus closing meetings are scheduled prior to final close

• Final closing first and second day reports• Final closing business manager reports


Year-End Balances and Carry Forwards (July 26 – 29)

• Org reversions and carry forwards• Encumbrance forwards• Close out current fiscal year nominal activity

(balance type NB)• New fiscal year balance forwards• Create C&G beginning labor balances• Special cash consolidations for auxiliary and

service units


QUESTIONS?