GM010: Financial Management for Sponsored Projects Mgmt... · • Describe how accounting entries are created ... • Drill down to other Financial Management System modules to review

GM010: Financial Management for Sponsored Projects

Expectations

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Sign the attendance sheet at the beginning and end of the session.

Refrain from engaging in disruptive side conversations.

Silence cell phones, and minimize usage during training.

Check your e-mail during breaks only.

Participate actively, and share your experiences.

Complete the post-training survey prior to leaving this session.

Meet and Greet!

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Course Overview

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Course Name Financial Management for Sponsored ProjectsCourse Duration 4 hours

CourseDescription

The course covers financial management processes for sponsored projects. Participants will learn foundational concepts related to projects in the Financial Management System (Oracle Cloud). Then, participants will learn how to perform project inquiries and cost adjustments.

TargetAudience

• RU Project Adjustments• RU Project Inquiry• RU Grants Inquiry

Prerequisites • GN010: General Navigation in the Financial Management System

Table of Contents

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Lesson DurationCourse Introduction (Including the Icebreaker Activity) 15 minLesson 1: Introduction to Projects in the Financial Management System 30 minLesson 2: Reviewing a Sponsored Project Setup 40 minLesson 3: Monitoring Sponsored Project Expenditure and Revenue 60 minLesson 4: Project Adjustments 90 minCourse Conclusion 05 min

Course Objectives

Upon completing this course, you will be able to:• Describe the key concepts related to projects in the Financial Management System• Assess a project in the Financial Management System• Assess project expenditures in the Financial Management System• Assess project revenue in the Financial Management System• Adjust project costs

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Key Terms

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Key Terms DefinitionProject A project is a collection of related financial activities for one or

multiple business lines for a common objective and/or mission.

Tasks Each sponsored project will have one task, which is used to record transactions for the project.

Sponsored Project A sponsored project is a project that receives an award or funding from a sponsor for research or other restricted purposes.

Non-sponsored Project A non-sponsored project is a project that is not award based. It can receive funding through internal and external sources. Spending has either minor or no restrictions.

Unit A unit is a school, institution, center, and/or a central unit that is required to produce a balanced balance sheet.

Division A division is used to group organizations into alternate hierarchies.Organization An organization is a business area with dedicated people and space.

LESSON 1: INTRODUCTION TO PROJECTS IN THE FINANCIAL MANAGEMENT SYSTEM

Cloud Financials Training

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Lesson Objectives

Upon completing this lesson, you will be able to:• Describe the key concepts related to projects in the Financial Management System• Differentiate between sponsored and non-sponsored projects• Describe the different project types for sponsored and non-sponsored projects• Describe the functionality provided by projects in the Financial Management System• Describe how transactions are charged to projects• Describe how accounting entries are created for project transactions

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What Is a Project?

• A project is a collection of related financial activities for one or multiple business lines for a common objective and/or mission.

• The Financial Management System uses projects and tasks to organize cost and revenue related to the project.

• Project features:– Projects are similar to the fund sources (RIAS) and

indices (Banner) that were used in the past.– A project is the highest level in the collection of related

financial activities in the Projects application.– Sponsored projects contain a single task which is used

to record transactions.– Reports can be generated by a project, task,

expenditure category, expenditure type, etc.

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Sponsored Project842091

Task 800

AwardNSF-EAR9089007

Tran

sact

ions

Project Groups at Rutgers

Sponsored ProjectsA sponsored project is a project that receives an award or funding from a sponsor for research or other restricted purposes.

Non-Sponsored ProjectsA non-sponsored project is a project that is not award based. It can receive funding through internal and external sources. Spending has either minor or no restrictions.

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Non-Sponsored

ProjectSponsored

Project

Rutgers groups projects into two major categories:

Sponsored Project Types

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Land Grants(Federal) Clinical Research

Grants

• Rutgers will use four distinct project types in the sponsored project type class. • The project type determines the project numbering and task structure of the project. • These project types also map to the fund sources or indices that were used in the past.

Clinical Trial

Sponsored Project Types (Cont’d.)

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Project Type Former Fund Source

Former Index

Project Numbering

Task Structure

Grants 4 series; cost share–22/23 series

R Index with fund type 02

8 series One task (named after the project)

Clinical ResearchClinical Trials

4 series R Index with fund type 2K/2P/2F

8 series One task (named after the project)

Land Grants (Federal)SEBS Only

257/267 series NA 29 series Multiple tasks as necessary to properly reflect the purposes and needs of the units

Sponsored Project – Sample

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Non-Sponsored Project Types

• Rutgers will use 11 distinct project types within the non-sponsored project type class. • The project type determines the project numbering and task structure of the project. • These project types also map to the fund sources or indices that were used in the past.

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Loans Federal Work Study Designated

StateAppropriations

(SEBS only)Future

Restricted Gifts Endowments Investment Management

Treasury Bonds

Capital RU Initiative

Non-Sponsored Project Types (Cont’d.)

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Project Type Former Fund Source

Former Index Project Numbering

Task Structure

Loans 05 series L – fund code 1 series One task per loan, fund source, or indexFederal Work Study 538 series NA 17 series One task: student aid

Designated 28/20 series R index with fund type 04 2 series

For conversion – one taskwill be expanded post-go-live to accommodate the needs and purpose of the units

State Appropriations (SEBS only) 247 series NA 29 series Multiple tasks as necessary to properly reflect

the purposes and needs of the units

Future NA NA 3 series Multiple tasks as necessary to properly reflect the purposes and needs of the units

Restricted Gifts 53 series R index with fund type 75 5 series

One task per combination of fund type, activity, and fund source (can be expanded post go-live), EOF – three tasks

Endowments

Principal: 06 series (term, true and quasi) E – fund code 6 series

Two tasks: principal and operatingOperating: 6 series R index with fund

type 75 6 series

Investment Management 068 series NA 68 series Four tasks: investment, un-invested cash,

realized gain/loss, income/expensesTreasury Bonds 08 series NA 69 series Four tasks, structure TBD

Capital 88 and 77 series P – fund code 7 series Three tasks: construction, design, and administration

RU Initiative New NA Alpha-numeric Reporting project

What Functionality do Sponsored Projects Provide?

Use sponsored projects to:• Budget at the project task level (natural account) and monitor budget versus actuals

in real time.• Collect cost and revenue as transactions are recorded.• Adjust costs on projects or between projects and the GL if necessary. • Generate invoices and recognize revenue.• Review detailed project transactions (expenditures, commitments, revenue, etc.).• Drill down to other Financial Management System modules to review details related

to project transactions.

Note: GL accounting entries for project transactions are created automatically.

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Converting Active Fund Sources and Indices

All active sponsored fund sources and indices will be converted into sponsored projects in the Financial Management System.

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Functionality: Sponsored Versus Non-Sponsored Projects

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Functionality Sponsored Non-SponsoredSetup

Requires an award setup in the Grants module üRequires a contract setup in the Contracts module ü üRequires a project setup in the Projects module ü üFunding allocated from an award to a project üFunding recorded as a manual revenue event üBudget entered for a project ü ü

Transaction ProcessingCosts collected against a project ü üCosts adjusted (if necessary) on a project ü üInvoices generated for a project üInvoices interfaced to Accounts Receivable (AR) for collection üRevenue recorded and/or recognized for the project ü üAccounting entries generated for transactions ü ü

ReportingReport on project performance ü ü

Key Project Responsibilities

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Grant and Contract Accounting

Controller’s Office

• All setups for sponsored projects

• All invoicing and revenue recognition for sponsored projects

• All setups for non-sponsored projects

• All revenue recognition for non-sponsored projects

University Units• Financial management of projects,

including inquiry, reporting, review, and cost adjustment (if necessary)

• Recording the receipt of funding (income) for non-sponsored projects

• Completion of an electronic form to request and expedite the creation of non-sponsored projects and related tasks

How are Transactions Charged to Projects?

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All project transactions are recorded utilizing the segments below:

• The project number to which the cost or revenue is bookedProject

• The task number on the project to which the cost or revenue is booked (Note: The fund type is hard coded to the task on setup)Task

• The natural account or the type of expense or revenue incurredExpenditure Type

• The organization that incurs the expense or revenue (unit + division + organization)Expenditure Organization

• The area serviced (the GL segment)Location

• The mission serviced (the GL segment)Business Line

• An initiative that may span multiple units (the GL segment)Activity

• A reporting project used to group related costs or revenue across project and fund types as well as the GL (optional field)RU Initiative

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RU Initiative

• The RU Initiative is a project used only for reporting across Projects and the GL. • You cannot charge transactions or create budgets for RU Initiative projects. • RU Initiative projects are used to report on related costs or revenue recorded to

different project types. – For example, you can create an RU Initiative project, tag transactions for other projects or GL

transactions, and report consolidated costs or revenue at the RU Initiative level. • This type of project is used for reporting only and is an optional field used when

recording transactions.

Source of Transactions

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Most project transactions will originate from external systems or other Financial Management System (Oracle Cloud) sub-ledgers.

Financial Aid Management System

PeopleSoft

Student Accounting System

SciQuest

Financial Management System

Expense Payables

Project Costing

General Ledger

Scholarships

Payroll Entries

Tuition Remission

Req / PO / Receipt

AP Invoice

Req / PO / Receipt

Expense Reports

Accounting Entries

Procurement

AP InvoicePinnacle

Telephone Cost

Accounting for Project Transactions – Chart of Accounts

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Segment Description LengthUnit Is a school, institution, center, and/or a central unit that is required to produce a

balanced balance sheet 3

Division Is used to group organizations into alternate hierarchies 4

Organization Is a business area with dedicated people and space 4

Location Is the area to which you are providing services and which may or may not be the geographical location of the people providing the service 4

Fund Type Is used for identifying the funding source that is used to acquire goods and services (Unrestricted, Restricted, Endowment, Plant, Loan, and Auxiliary) 3

Business Line Identifies the specific line of business (or mission) being offered 4

Account Identifies the nature of the transaction, such as expense or revenue (a natural account) 5

Activity Identifies the total activity of high-level, interdisciplinary, and strategic initiatives that span multiple responsibility centers or units 4

Intra-Unit Is a system-generated transaction (no user input is required) to balance journals for financial activity between units 3

Future Serves as a placeholder for a potential segment 5

RU Initiative Involves reporting projectand GL costs and revenue to group-related transactions (not a Chart of Accounts segment) 6

Journal entries are created automatically for transactions charged to projects and are transferred to the GL. The following is an example of how project segments drive accounting for expenses.

Mapping the Project String to the COA String

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Project

Task

Expenditure Type

Expenditure Org

Location

Business Line

Activity

RU Initiative

Project Segments

Unit

Division

Organization

Location

Fund Type

Business Line

Account

Activity

Chart of Accounts

Intra-Unit

Future

RU Initiative (Not a COA segment)

Mapping the Project String to the COA String (Cont’d.)


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Project

Task

Expenditure Type

Expenditure Org

Location

Business Line

Activity

RU Initiative

Project Segments

Unit

Division

Organization

Location

Fund Type

Business Line

Account

Activity

Chart of Accounts

Intra-Unit

Future




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Project

Task

Expenditure Type

Expenditure Org

Location

Business Line

Activity

RU Initiative

Project Segments

Unit

Division

Organization

Location

Fund Type

Business Line

Account

Activity

Chart of Accounts

Intra-Unit

Future




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Project

Task

Expenditure Type

Expenditure Org

Location

Business Line

Activity

RU Initiative

Project Segments

Unit

Division

Organization

Location

Fund Type

Business Line

Account

Activity

Chart of Accounts

Intra-Unit

Future


Knowledge Check

Select all the apply.

Sponsored projects allow you to:

A. Report on project financial performanceB. Review detailed project transactionsC. Budget only at the project levelD. Collect cost and revenue

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Knowledge Check

Select the correct answer.

With regard to charging costs to projects, a business line refers to:

A. Programs that may span multiple unitsB. The expenditure type (natural account) or the type of expense incurredC. The mission (business line) servicedD. The area (location) serviced

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Knowledge Check

Crossword: Fill in the answers based on the clues provided.

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Across3. Is used to group organizations into alternate hierarchies (8 letters)

Down1. Is a business area with dedicated people and space (12 letters)2. Is a school, institution, or center that is required to produce a balanced balance sheet (4 letters)

D I V I S I O N

ORGAN

ZATION

UN

T

LESSON 2: REVIEWING AWARDS, CONTRACTS, AND SPONSORED PROJECT SETUPS


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Lesson Objectives

Upon completing this lesson, you will be able to:• Search for awards in the Financial Management System• Review awards in the Financial Management System • Search for sponsored projects in Financial Management System• Review sponsored projects in the Financial Management System

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Main Setups

• The Financial Management System requires three main setups before transactions can be recorded against sponsored projects:

– An award setup– A contract setup– A sponsored project setup

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Sponsored Project Setup

Award Setup

Contract Setup

Award Setup Overview

At a high level, each of these elements serves the following purposes:

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Element Purpose

Award• Defines the basic details of the sponsor’s funding• Defines associations with related sponsored projects• Allocates funding to associated sponsored projects• Consolidates financial performance at the award level

Contract • Defines the billing plan for associated sponsored projects• Defines the revenue plan for associated sponsored projects

Sponsored Project

• Helps to collect and process award-based expenditures• Generates invoices for awards (per the billing plan defined in the contract)• Recognizes revenue for awards (per the revenue plan defined in the contract)• Helps monitor detailed financial performance at the project level

The Awards work area can be accessed by clicking the Award tile on the Home page.

Navigation to the Awards Work Area

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Henry Rutgers

Henry Rutgers

Henry Rutgers

Henry Rutgers

• Click the Manage Awards button on the Awards work area to search for awards.• Expand the search region and click the Advanced button (optional).• Enter the search criteria to search for existing awards. • You can search by the award name, number, principal investigator, sponsor, or any

of the other criteria visible on the screen.

Searching for an Award

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An award in the Financial Management System consists of four main pages: Details, Projects, Funding, and Review.

Reviewing an Award

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Henry Rutgers

The Details page contains basic information about the award, such as the sponsor, principal investigator, award dates, and award amount.

Details Page

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Use the Referencessection to find the

legacy award number.

Henry Rutgers

The Projects page displays a list of the sponsored projects associated with the award.

Projects Page

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Henry Rutgers

The Funding page contains a detailed break-up of the funding and graphs that allow you to monitor funding over the life of the award.

Funding Page

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The Review page provides a summary of key award details, and also provides the number of the associated contract.

Review Page

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Demonstration

Click the link below to view the steps to:• Review an award

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https://www.youtube.com/watch?v=NNwVTLfW4hA&feature=youtu.be

Exercise 1

Step # Sub-Step Result

Navigate to the Manage Awards page

1 Click the Awards tile The Overview page appears

2 Click the Manage Awards button The Manage Awards page appears

Search for and Open an Award

3 Click the Expand Search triangle The Search region expands

4 Optional – click the Advanced Search button Additional fields appear

5 Enter 842091 in the Number field Data entered in field

6 Click the Search button Award appears in the Search Results region

7 Click the Award Number link The Award opens

Review the Award

10 Review award details on the Details page Award details reviewed

11 Click the Projects radio button The Award Projects page appears

12 Review details on the Award Projects page Award projects reviewed

13 Click the Funding radio button The Award Funding page appears

14 Review details on the Award Funding page Award funding reviewed

15 Click the Review radio button The Review Award page appears

16 Review details on the Review Award page Award summary details reviewed

17 Click the Done button The Award Overview page appears

END 18 Click the Home button The Home page appears

Scenario: Review an Award

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Projects > Project Financial Management

Navigation to the Projects Work Area

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Projects > Project Financial Management > Enter search criteria as needed

Searching for a Project

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Demonstration

Click the link below to view the steps to:• Review a sponsored project

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https://www.youtube.com/watch?v=6XSL9NKWND0&feature=youtu.be

Exercise 2


Navigate to the My Projects page

1 Click the Projects tile The Projects menu expands

2 Click the Project Financial Management tile The My Projects page appears

Search for and Open a Project

3 Click the Expand Search triangle The Search region expands

4 Optional – click the Advanced Search button Additional fields appear

5 Delete the name from the Team Member field The Team Member field is cleared

6 Enter 842091 in the Project Number field Data entered in field

7 Click the Search button Project appears in the Search Results region

8 Click the Project Number link The Project opens

Review the Project

9 Review projectdetails on the Overview tab Project details reviewed

10 Click the Documents tab The Documents tab appears

11 Review details on the Documents tab Project documents reviewed

12 Click the Financials tab The Financials tab appears

13 Review details on the Financials tab Project financials reviewed

14 Click the Done button The My Projects page appears


Scenario: Review a Sponsored Project

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Knowledge Check

Fill in the blanks.

A. ______generate invoices for awards per the billing plan defined in the contract.B. ______are use to allocate funding to sponsored projects.C. ______are used to define the billing method and revenue recognition method.

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LESSON 3: MONITORING SPONSORED PROJECT EXPENDITURE AND REVENUE


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Lesson Objectives

Upon completing this lesson, you will be able to:• Search for project expenditures in the Financial Management System• Review project expenditures in the Financial Management System• Search for project revenue in the Financial Management System• Review project revenue in the Financial Management System

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Introduction

The Financial Management System provides you the functionality to review transactions that have been charged to projects. For sponsored projects, these transactions include:

• Expenditure Items• Commitment Transactions• Revenue• Invoices

Many of these transactions can be reviewed at a consolidated level for the award, or at a detailed level for each sponsored project associated with the award.

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The Award Overview Page

The Award Overview page provides a consolidated view of transactions charged to the sponsored projects associated with the award.

The Award Overview page can be accessed from the Awards tile on the home page

Enter an award number and click the search button (magnifying glass) to review the financial performance of your awards.

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The Award Overview Page (cont’d)

After searching for an award, use the Award Overview page to review:

Funding for sponsored projects

Consolidated budget details for sponsored projects

Expenditure items charged to sponsored projects

Commitment transactions charged to sponsored projects

Detailed budget lines

The Period Type, which should be changed to “Inception-to-Date”

The Budget Period

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Review Expenditure Items

You can view a list of all expenditure items charged to the sponsored projects associated with your awards from the Awards Overview page.

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Demonstration

Click the link below to view the steps to:• Review a project expenditure item

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https://www.youtube.com/watch?v=7pr91K2rDyo&feature=youtu.be

Exercise 3


Search for Sponsored Project Expenditures

1 Click the Awards tile The Overview page appears2 Enter 842091 in the Search field Data entered in field3 Click the Magnifying Glass button Financial Performance of award appears4 Click the Drop-Down arrow for award project Drop-down menu appears5 Select Manage Expenditure Items from list Manage Expenditure Items page appears6 Click the Expand Search triangle The Search region expands7 Click the Advanced button Additional fields appear

8 Select Oracle Fusion Payables in the Transaction Source field Data entered in field

9 Select Supplier Invoice in the Document field Data entered in field10 Click the Search button Project expenditures appear

Review Sponsored Project Expenditures

11 Click Transaction Number 75620 Expenditure item opens to the General tab

12 Review details on the General tab General expenditure item details reviewed13 Click the Costing tab The Costing tab appears14 Review details on the Costing tab Costing details reviewed15 Click the Billing tab The Billing tab appears16 Review details on the Billing tab Billing details reviewed17 Click the Adjustment History tab The Adjustment History tab appears18 Review details on the Adjustment History tab Adjustmentdetails reviewed19 Click the Done button Manage Expenditure Items page appears


Scenario: Review a Project Expenditure Item

Review Commitments

You can also view a list of all commitment transactions charged to the sponsored projects associated with your awards from the Awards Overview page.

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Demonstration

Click the link below to view the steps to:• Review commitments

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https://www.youtube.com/watch?v=RPACK4rIKME&feature=youtu.be

Exercise 4


Search for CommitmentTransactions

1 Click the Awards tile The Overview page appears

2 Enter 842091 in the Search field Data entered in field

3 Click the Magnifying Glass button Financial Performance of award appears

4 Click the Drop-Down arrow for award project Drop-down menu appears

5 Select Review Commitments from list Review Commitment Transactions page appears

Review Commitment Transactions

6 Review Commitment transactions Commitment transactions reviewed

7 Click the Export to Excel button Excel document downloads

8 Open the downloaded Excel document Excel document opens

9 Review Commitments in spreadsheet Commitment transactions review

10 Close the Excel file Returned to Review Commitment Transactions

11 Click the Done button The Overview page appears


Scenario: Review Commitments

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Review Budget Details

You can use the Awards Overview page to review budget details and compare actual expenditures to budgeted amounts.

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Demonstration

Click the link below to view the steps to:• Review a project budget

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https://www.youtube.com/watch?v=0-KBm4mYsJE&feature=youtu.be

Review Revenue and Invoices

You can also review recognized revenue and invoiced amounts for your sponsored projects. This information must be viewed from the Projects Overview page.

The Projects Overview page can be accessed by following the navigation path below.

Navigation

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The My Projects page appears after clicking on Project Financial Management. Use this page to search for your sponsored projects.

Searching for Sponsored Projects

Enter search criteria as needed to find your sponsored projects.

Search results will appear in the Search Results region of the form.

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After finding and opening a sponsored project, you are able to review the invoiced amount and recognized revenue for the project on the Financials tab of the project.

Reviewing Revenue and Invoices

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Knowledge Check


You can review revenue and invoices individually for sponsored projects associated with an award by accessing the:

A. The contract associated with the projectB. The award details associated with the project C. The Financials tab of the project D. The Overview tab of the project

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LESSON 4: PROJECT COST ADJUSTMENTSCloud Financials Training

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Lesson Objectives

Upon completing this lesson, you will be able to:• Describe the different types of adjustments that you can perform• Describe the approval process for project adjustments• Adjust project costs

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Introduction to Project Adjustments

Previously…• Manual journal entry in the GL to

adjust fund sources or indices

Going forward…• Projects will replace fund sources or

indices and project adjustments will replace journal entry adjustments

• Ability to adjust and/or reallocate costs for sponsored projects

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ProjectsGL

Cost Adjustment Types

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• Transfer the entire expenditure amount from one project task to a task on a different project.Transfer

• Split the expenditure amount charged to one project task and transfer the split amount to a task on another project.Split and Transfer

• Split the expenditure amount on the original project task (without transferring) to change an attribute of the transaction, for example, a natural account.

Split

• Recalculate the burdened cost amount for all project expenditures after processing a change to the projects’ burden schedule.

Recalculate Burdened Cost Amounts

(GCA Functionality Only)

Approval for Cost Adjustments

Approvals are required for the following cost adjustments:• Transfer• Split and Transfer• Split

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Note: Cost adjustments are routed to the finance approver for approval.

Viewing Adjustment History for Cost Adjustments

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• The date on which the expenditure item was adjustedDate

• The person who adjusted the expenditure itemAdjusted By

• How the expenditure item was adjustedAdjustment Type

• The approval or processing status of the adjustmentAdjustment Status

• The reason that the expenditure item was adjustedJustification

Note: Whenever an adjustment is made to a project expenditure, the accounting for the original expenditure is reversed, and a new accounting entry is created for the adjustment. The GL accounting for adjustments is automatic.

Demonstration

Click the link below to view the steps to:• Adjust a project expenditure item

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https://www.youtube.com/watch?v=qXyjsEJf5Pk&feature=youtu.be

Knowledge Check


This cost adjustment type allows you to reallocate the entire expenditure amount from one task on a project to another task on a different project.

A. TransferB. Split and TransferC. Split

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COURSE CONCLUSIONCloud Financials Training

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Course Summary

You are now be able to:• Describe the key concepts related to projects in the Financial Management System• Assess a project in the Financial Management System• Assess project expenditures in the Financial Management System• Assess project revenue in the Financial Management System• Adjust project costs

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