Administrative & Student Information Systems Refresh ... Strategy... · Phase 1 Project – Timeline Key: Completed Active Planning Chart of Accounts and HFM 3/1/15 - 10/15/15 RAPSS

Treasurer’s Town Hall @ Rutgers University – Newark J. Michael Gower

Senior Vice President for Finance and Treasurer October 7, 2015

Administrative & Student Information Systems Refresh:

Phase I Project Update

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Transformational Goals •  University-wide efficient, effective, and responsive business practices and

systems are foundational elements of the Rutgers Strategic Plan as a way to provide real savings for strategic initiatives

•  The University’s move to a Responsibility Center Management budgeting approach requires changes to budget processes and supporting infrastructure

•  The University must provide reliable and accessible information to our

academic and administrative leadership

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Transformation Guiding Principles Our vision is being guided by these five pillars for organizational transformation, focusing on administrative efficiency and effectiveness: 1.  Rutgers’ people and organizational structures

2.  The business processes

3.  The impact of the services on internal and external customers

4.  The way that Rutgers measures its performance and applies metrics

5.  The technologies employed in conducting services

Finan

cial M

anag

emen

t Bu

dget

Proc

urem

ent

Cost

Rese

arch

Ad

min

Stud

en t HR

/ Pay

roll

Phase 1 Project – Timeline Completed Active Planning Key:

Chart of Accounts and HFM 3/1/15 - 10/15/15

RAPSS Phase 1 3/1/15 - 4/30/15

Excellence in Research Administration Implementation 5/1/15 – 6/1/16

RAPSS Phase 2 5/1/15 – 4/30/16

Cost Management 6/1/15 - 9/25/15

Controller's Office BPR Implementation 8/1/15 - 12/31/15

Budget/Planning: FY17 Imp- Central Units 8/1 - 10/15/15

Budget Planning: FY17 Imp- All Units 10/1/15 - 3/1/16

General Ledger Implementation and Project Accounting / Grants Management 8/15/15 - 7/1/16

Procure to Pay (including BPR and Implementation) 9/1/15 - 7/1/16

Interim Solution - RBHS Migration to PeopleSoft 9/1/15 - 7/1/16

Student BPR/Org Review 10/1/15 - 2/1/16

Capital Planning, Position Mgmt, Strategic Finance – TBD 1/1/16 - 7/1/16

Expense Management System 1/1/16 - 7/1/16 Travel Card Program 1/1/16 - 7/1/16

System Selection 4/1/16 - 5/31/16

Accounts Receivable, Cash Mgmt, and Treasury – TBD as capacity permits

HR/Pay BPR/Org Review 7/15 -12/16

Today

System Go-Live

CY 2015 CY 2016 March April May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun July Aug

Procurement Org Alignment 8/1/15 - 12/31/15

Monthly Close – Pilot to Full Implementation 1/1/16 – 6/30/16

eCOI eIRB

Stakeholder Engagement – Engagement Layers

SVPs And

Chancellors

Vice Chancellors/CFOs

Central Units

CFOs from Schools / Centers / Institutes /

Central Units

School / Unit Representatives

All Faculty and Staff (and students where applicable)

Executive Steering Committee

AIS Steering Committee / SIS Steering Committee

Business Advisory Group(s)

Subject Matter Experts (SMEs) / Team Members / School/Unit Representatives

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Comparable Project Role:

Stakeholder engagement at multiple levels throughout the organization.

Roles and Responsibilities Role Selection / Definition Responsibilities

Executive Steering Committee

•  SVP-Finance •  SVP-Administration •  SVP-Research •  Chancellors •  SVP-CIO •  SVP-AA

•  Overall approval on recommendations •  Program Leadership, including setting program

priorities/ objectives •  Reviews progress and performance against timeline,

budget, benefits •  Obtain resources, as needed

Project Steering Committee (i.e., AIS, SIS)

•  Deans •  Vice Chancellors •  Other key stakeholders

•  Provides guidance and advice •  Reviews recommendations and progress; endorses

recommendations to Executive Steering Committee

Business Advisory Group

•  Project Manager •  Business Readiness team •  PMO Change Management &

Communications •  High-level administration from schools/

units (i.e., Vice Deans/CFOs of schools/ centers/ institutes/ units)

•  Serves as liaisons to the school/unit which they represent

•  Assists in determining specific change management, communications, and/or training strategies for a specific project

•  Assists in disseminating information to their school/unit

School/Unit Representatives

•  Part-time •  Selected by Project Leadership to

represent schools, campuses, and units across the university

•  Provides input into the project •  Hands on during design and testing •  Serves as a change agent •  Communicates project updates and key changes

within their organization

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Questions?

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Appendix (Details of Each Project)

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Summary of Project Target Timeline Next Steps

Monthly Financial Close

Establish and implement a monthly close, review and financial reporting process plan that supports the goals of the university for obtaining timely financial information in order to make informed decisions.

End of Dec 2015 – Implement a pilot of the Monthly Close Process Spring 2016 – Roll out Monthly Close Process for all

•  Select cost centers, schools, and institutes for pilot of December month end

BPR/ Organizational Review

Assess and implement an efficient and integrated accounting organization within the Controller’s office to better support the new monthly close, financial review and reporting processes. The scope is each of the 4 Vice Chancellor’s units and 3 Central Administrative SVP units.

Dec 2015 – Implement recommendations

•  Develop plan for implementing recommendations including staffing

Chart of Accounts and HFM

Redesign the chart of accounts structure to incorporate the mission reporting of the University.

Oct 2015 – Develop definitions for each chart value

•  Finalize data mapping of existing Orgs to new Divisions and Orgs

General Ledger, AP, AR, Projects and Grants

Implement a single GL that incorporates the needs of both the legacy RU and legacy UMDNJ schools, centers and central units currently using Oracle and Banner GL systems.

July 1, 2016 – Go-Live •  Develop project work plan

Financial Management

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Budget Planning and Forecasting - FY17 Implementation

Update the Hyperion application to accommodate the new RCM budget model for FY17 budget process.

Oct 15, 2015 – Cost Center Planning Application Go-Live March 1, 2016 – Responsibility Center Planning Application Go-Live

•  User Acceptance Testing and Training

Budget and Financial Planning

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Cost Management

Implement a university cost management model.

End of Sept 2015 – Go-Live (COMPLETE)

•  Being utilizing for the FY17 budget planning process

Cost Management

Procurement

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Procure to Pay (P2P)

Implement an automated, university-wide purchasing and accounts payable tool that streamlines the purchasing and payment process at the University.

July 1, 2016 – Go-Live •  Develop project work plan

Expense Management

Implement an automated, university-wide expense management tool to expedite the travel and expense reimbursement process.

July 1, 2016 – Go-Live •  Finalize and issue RFP

Travel Card Program

Implement a University Travel Card Program.

July 1, 2016 – Go-Live •  Finalize and issue RFP


Interim Solution – RBHS Migration to PeopleSoft

Migrate legacy UMDNJ employee records on Banner payroll system into the existing legacy Rutgers PeopleSoft.

July 1, 2016 – Go-Live

•  Develop project work plan


Conduct an organizational review of the Human Resources and Payroll function.

Fall 2016 – Complete BPR Assessment

•  Finalize and issue RFP

HR / Payroll

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Conduct phase 1 of business process and organizational review of student processes: enrollment management and financial aid.

Sept 2015 – Evaluate vendor presentations

•  Select vendor •  Develop project work plan

System Selection

Select a system that optimally meets requirements determined in the BPR/Organizational Review Project.

TBD •  TBD

Student


Excellence in Research Administration

Implementation of process improvements, including updated policies, procedures and forms to create efficiencies in research administration functions for faculty and staff.

June 2016 – Completion of Wave 2 and 3 process enhancements

•  Continue to monitor feedback and evaluate changes

•  Complete Wave 2 implementation

RAPSS Implementation

Implementation of an electronic research administration and proposal submission system in two phases; Phase 1 implementation is complete and Phase 2 is underway.

Spring 2016 – Phase 2 Go-Live

•  Complete design/build phase

ERAITProcess Establishinventoryofallpre-award,post-award,andresearchcomplianceITprojectsandlinktoERAandRAPSSprojects

Fall2015–FinalizeinventoryandGmelineofITprojects

•  IntegratewithERAprocessimprovementsandAISiniGaGvesoutsideresearch

eCOI ImplementaGonofasinglesystemforConflictofInterest(COI)disclosures

October2015–Go-Live •  MakesystemmodificaGonstoaccommodateallinvesGgators

•  TrainandcommunicateeIRB ImplementaGonofasinglesystemforrouGngand

trackingofhumansubjectsresearchprotocolsneedingInsGtuGonalReviewBoard(IRB)approval

March2016–Go-Live •  AdduserinformaGonintoeIRBforallinvesGgators

•  DevelopprojectworkplanEffortCer)fica)on ImplementaGonofasinglesystemforcerGficaGon,

andsimplificaGonofexisGngRBHSsystemunGltransfertoECRTsystem

TBD–IniGaGngprocess •  MeetwithRWJMStodetermineFTERSsimplificaGon

•  DevelopworkinggroupforcerGficaGonprocess

eIACUC ImplementaGonofasinglesystemforrouGngandtrackingofanimalresearchprotocolsneedingInsGtuGonalAnimalCareandUseCommi[ee(IACUC)approval

TBD •  CompletepolicychangesandlinksineIACUCsystem

•  Developprojectworkplan

Research Administration

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Virtualized Administrative Environment

Create a virtualized hardware and software environment to provide University services reducing costs and equipment footprints in a more robust data center.

November 1 , 2015 – Fully Operational

•  Final configuration of Hardware and Network components

University-wide Cloud-based Email and Calendaring

Consolidate the numerous email and calendaring systems into Microsoft’s Office 365 A single University-wide Cloud-based environment.

July 1, 2016 – 75% of University migrated

•  Finalize licensing and implementation partner contracts

Upgrade of Data Centers

Improve services provided by the University Data Centers to better support Research Computing.

TBD •  Improve the power and cooling capacity of the Hill Research Data Center

Technology

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Reporting Strategy and Roadmap

Define Reporting Strategy and Roadmap to meet key University Requirements. Create solutions, determine tools and transition path to meet University needs.

October - 2015 •  Review current architecture and prepare future cloud-based reporting model

•  Inventory current reporting tools and use

Hyperion Financial Management Reporting

Build a core of 10 – 15 management reports that will support FY16 financial analysis.

November 1, 2015 •  First two completed reports are in testing and will be used in Pilot for month-end variance analysis

Reporting

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An Update: Responsibility Center Management

(RCM)

Treasurer’s Town Hall @ Rutgers University – Newark

J. Michael Gower Senior Vice President for Finance and Treasurer

October 7, 2015

Implementation Unique In Higher Education

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Ø Most complex RCM implementation that we can identify

Ø Involves multiple campuses

Ø Complicated by merger taking place simultaneously with two universities that are: Ø On different IT systems Ø With different practices and procedures

Why Switch to RCM?

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Academically Centered - “Academics over Economics”

Provides schools with better data, more control, and greater

flexibility over resource decisions

Greater focus on long-range strategic planning

RCM enables understanding of “ROI” and priority decisions given

limited resources

Increased accountability and

transparency

How Does RCM Work?

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REVENUE • Tuition and Fees • F&A Return • Other Income

RESPONSIBILITY CENTERS • Schools • Research Centers • Auxiliaries

DIRECT & INDIRECT COSTS • Direct Expenses • System-wide Support Units • Local/ Regional Support Units

Revenues are credited to the Responsibility Center

that generate them

Responsibility Centers must then pay for their

direct expenses as well as a share of the expenses to

fund the Support Units

Allocation of Costs

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Costs that are incurred by

system-wide support units

providing services to NB, RBHS, Newark and

Camden

System-wide

Costs that are incurred by

support units providing services

at the local/ regional or

chancellor level

Local/ Regional

Allocation of Costs System-wide Cost Pools

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General Administration Facilities (O&M and Utilities)

Academic and Student Support Debt Service

Strategic Fund Information Technology Libraries Research Support

Metrics for Allocation of Costs

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Ø Cost pools allocated to the schools and other RCs using a metric that is a reasonable measure of their use of those services

Ø The metrics based on “best practices,” verifiable, easy to understand, and uniform

Ø Our model includes the following metrics: unit expenditures, net assignable square footage, F&A return data, student headcounts and faculty & staff FTE

Who Decided on the RCM Model?

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Ø  RCM Steering Committee Ø  Consists of Chancellors, CFOs, SVP Finance, SVP Administration, and VP Budget Ø  Provided policy direction and came to consensus on the current model Ø  Committee will continue in FY16 and also include the SVP Academic Affairs

Ø  RCM Advisory Committee Ø  Consists of deans, support unit heads, and faculty representatives from the Senate budget

committee Ø  Provided ongoing advice, questions, etc.

Ø  RCM Technical Committee Ø  Consists of business managers from major units Ø  Reviewed metrics, data sources, and calculations

Primary Benefits Responsibility Centers (RCs)

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Ø Makes clear the full cost of programs, both direct expenses and overhead costs for support services

Ø Demonstrates the level of university support needed for each RC on

common set of assumptions

Ø Encourages discussion of appropriateness of ratio of self-funding to university support

Ø Promotes trade-off discussions

Ø Encourages better planning

Primary Benefits Support Units (Cost Centers)

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Ø Pushes support units to justify their costs and evaluate services being provided

Ø Makes support units more accountable to schools and other RCs that

clearly see the charges for the services being provided

Ø Makes clearer that choices are needed within fiscally constrained environment

Ø Encourages priority setting

NO Fund Raising in

Chancellor’s or President’s Office

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Ø Requests for university funds need to be truly strategic and to complement other revenue sources

Ø  Focus on new audiences, new revenue sources, strategic initiatives to

move the university forward

Ø Emphasis on greater self reliance in a changing higher education fiscal environment

Normal Anxiety With Any Major Change

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Ø RCM went into effect and the sun came up in the morning

Ø Units becoming accustomed to thinking in an RCM way: more strategic, more trade offs, more cognizant of the need to take control of both revenues and costs

Is the Model Done?

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Ø No budget model is perfect or “done”

Ø  Issues deferred to phase 2 for further study now underway Ø Business process redesigns in key areas in progress Ø Current model is a significant step forward in increasing the understanding

of the true financial position of RCs under a common set of assumptions

Ø  Finishing project to automate cost allocations for budget and accounting needs

RCM IT Work In Progress With Hyperion Products

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Ø Consolidating chart of accounts for two universities Ø Aligning monthly close procedures for two universities

Ø Aligning the revised budget planning system and the new AIM system with RCM’s HPCM to allow sharing of data between the various systems

Ø Automating RCM cost allocations

Ø Reducing amount of time required to create “what if” cost allocation scenarios

Questions?

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Documents

Administrative & Student Information Systems Refresh ... Strategy... · Phase 1 Project – Timeline Key: Completed Active Planning Chart of Accounts and HFM 3/1/15 - 10/15/15 RAPSS