Vince Schimizzi, Michigan State UniversityClaire Tyson, San Joaquin Delta College

Kim Yeoh, Cornell University

Building a Kuali Chart of Accounts

Agenda

I. Kuali Financial System (KFS) Key Chart Features

– Chart

– Organization

– Account/Sub-account

– Fund/Sub-fund

– Function

– Object/Sub-object

– Project Code

– Extended Attributes

II. Laying the Groundwork

– Reporting requirements

– Multiple charts

– Organizational hierarchies

– Security/Workflow

– Chart Document Routing

III. Chart Experiences and Challenges

– San Joaquin Delta College

– Cornell University

– Michigan State University

Kuali Financial System (KFS)Key Chart Features

KFS Chart Features

Chart

• An aggregation of related accounts (e.g. campus, auxiliary activities)

• Individual charts report to higher level charts

KFS Chart Features

Organization

• A unit of activity typically represented by a department (e.g. Chemistry is a department in the College of Natural Science at MSU).

• Organizational structure facilitates workflow in KFS, strengthening internal controls

KFS Chart Features

Account/Sub-account

• Specific identifier for a pool of funds assigned to a specific organization for a specific function (e.g. a grant account).

• Accounts report up through organizations

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

Organization Hierarchy with Accounts/Sub-Accounts

Division

Campus

University

Department

Program BProgram A

AccountAccount

Sub-acct 1 Sub-acct 2

KFS Chart Features

Fund/Sub-fund

• Accounts also map to sub fund groups and then to fund groups (i.e. sub-fund is an attribute of account number).

• For those that use fund accounting, an account may belong to– FUND – restricted– SUB FUND – grants / sponsored

programs

KFS Chart Features

Function

• Higher education function code is an attribute of account used in the creation of functional classification financial reports

• Enables multiple views and levels of reporting

KFS Chart Features

Object/Sub-object

• Transaction descriptor (asset, liability, fund balance, revenue, expense)

• Object codes map to levels and then to consolidations

• Object codes also map to object codes of higher level charts allowing for the rollup to an institutional chart for external reporting

• Reports to functionality enables multiple chart of accounts

KFS Chart Features

Project Code

• Specific transaction attribute

• Established and approved at the organization level

• Example: Inter-department project

KFS Chart Features

Extended Attributes

• Can be used throughout Chart (e.g. Orgs, Accounts, Object Codes, etc.)

• Implementation– Set of developer instructions to use additional table as

an extension of an existing table

– Can be supplemented with support tables to control related data and structure

• Example– Linking otherwise unrelated organizational units

Laying the Groundwork

Laying the Groundwork

Reporting Requirements

Questions related to:• Reporting

– Institutional financial reporting (external)– Summarized management reporting– Departmental detail– Online queries

• Structure of Institution– Campuses (organizational units)– Fund accounting

• Higher Ed Functions

Laying the Groundwork

Multiple ChartsQuestions to ask…• Does the institution need multiple charts?

– For separate campuses– For Auxiliary operations

• Will interfaced systems be able to accommodate multiple charts?

• Does there need to be a high level chart for institutional financial reporting?

Laying the Groundwork

Organizational HierarchiesQuestions to ask…

• Should the institution model its organizational hierarchy based on:– lines of authority

– lines of business (disciplines, auxiliaries, etc.)– system security schemas– reporting requirements

Laying the Groundwork

Security/Workflow

Questions to ask…• Will the established chart accounts facilitate

use of the institution’s security management tool?

• Will the organizational hierarchy enable desired workflow requirements?

• How can KFS hierarchies and workflow support the institution’s internal control policies?

Laying the Groundwork

Chart Document Routing

•The routing sequence of the primary chart documents occur as follows:

– Account – fiscal officer, org hierarchy, campus chart manager, university chart manager, special conditions routing– Account Delegate - fiscal officer, org hierarchy, special conditions routing– Organization - org hierarchy, campus chart manager, university chart manager– Object Code - campus chart manager, university chart manager– Sub Accounts/Sub Objects - fiscal officer, org hierarchy, special conditions routing– Project Code - org hierarchy

Chart Experiences and Challenges

San Joaquin Delta College

Objectives

• Purpose of a Financial System– Data for Decision Making

– Financial Tracking

– Categorizations

– Reporting

• Fulfill Institutional needs for financial data• Mirror Financial System Org Hierarchy to

Operational Structure

San Joaquin Delta College

Starting with the End in Mind

• Financial Reporting– Internal

• Management Reports• Department Accountability• Online queries

– External• GASB / FASB requirements• Federal reporting• State reporting• Other

San Joaquin Delta College

KFS Training / Implementation

• Changes– Campus buy in– Top 3 internal report wish list– Hands on Training– Old to New mapping– What stays the same

Cornell University

Change Management for KFS

• Decentralized campus• Significant change (not a bad thing!)• How/when to get campus involvement

– Local module teams

– Start up phase planning (meetings with major campus colleges/divisions)

– Demos/presentations

– Kuali Days

Cornell University

Reporting Requirements

• Financial reporting (external) vs management reporting

• Shadow systems

• Faculty reporting

• “Funding Year” reporting

Cornell University

Forward-looking Configuration

• Support the reporting requirements at many levels– Use of extended attributes

• Standardization vs flexibility – Organization level (extended attribute)– Object codes– Project code

Michigan State University

KFS Considerations

• Multiple reporting structures vs. a hierarchical organization structure in KFS.

• Object code groupings (external reporting vs. institutional budgeting vs. individual deptartment/account needs)

• “User Defined” attributes

• Overall change management