EXECUTIVE FORUM: CHART OF ACCOUNTS REDESIGN

June 12, 2017

AGENDA

1 Chart of Accounts (COA)–What is It? 5 Challenges

2 COA Drivers – Why Now? 6 Timelines

– 1 year versus 2 years

3 Current and Proposed COA

4 Benefits

CHART OF ACCOUNTS (COA)WHAT IT IS• The basic structure used to record financial transactions

• The CoA is used to organize the finances of the university and to segregate expenditures, revenue, assets and liabilities in order to provide an understanding of the university’s financial status

• The CoA supports financial and management reporting and serves as the basis for the fiscal administration of the University’s organizations, funds, programs, projects and activities

Drivers Implementation of the Oracle PeopleSoft Grants module created a need to initiate changes to the university’s chart of accounts

• PeopleSoft Grants module imposes a basic requirement:

• Every project must be associated with a department

WHY CHANGE (COA)?

4

CURRENT LINEAR &

PROPOSED MULTIDIMENSIONAL COA

CURRENT LINEAR COA -

1Limited number of chartfieldsused:─ Department/Project # and

GL Account

3A department or project # is established for every cost center, program, or project to be tracked

2 Over 1000 departments and projects and 1000 accounts

4 Typically found in older, mainframe systems

03410323 - 727301 SDES-Housing-Libra Community –

Utilities Water and Sewer

16200302 - 711102CECS-Civil Eng - Stormwater testing

– Salary 9 month faculty

CURRENT COA

• Multiple segments – each recording a different element of information about the transaction

• Best reporting/fiscal management capacity is obtained when a sufficient number of fieldsareestablished to ensure that one field is not used for more than one purpose

• Important to strike a balance between confirming the uniqueness of each field, yet managing the number of segments

PROPOSED DATA ELEMENTS TO A NEW COACapturing the data elements in a multi-dimensional CoA

What? Why? Where?How? Who?

711101GL Account

21028Fund

5C0000Org

XXCost Center

11Program

24036037Project

00000Activity

01Location

HOW DO THE DESIGNS COMPARE?Linear Multi-dimensional

Requires significant intelligence in numberingand naming CoAvalues

Increased flexibility for program fiscal management

Limited capacity to trackmultidisciplinary activities and programs

Improved capacity for tracking fiscal activity of cross disciplinary activity

Limited capacity to track funds thatcrossorganizations or purposes

High scalability, supporting accounting needsofcomplex organizations

May rely on extensive use of “attributes” to meet reporting needs May require less maintenance than linearCoA

Simple concepts and easy to use from enduserperspective

May be a significant departure from legacy CoA –steeper learning curve

Minimal learning curve due to user familiarity Requires care in design to result in bestoutcome

BENEFITS &

CHALLENGES

BENEFITS• Modern financial systems assume multi-dimensional capacity; current

structure is linear with limited analytic capabilities

• Current structure does not address university's increasing demands for reporting

• Improves financial and management and budgeting

• Flexibility for tracking fiscal activity & program management

• Accommodates growth and adapt to changing business needs

CHALLENGES• Resources, commitment, and

costs

• Change management

• All programming, reporting, queries and interfaces need reviewed

• 5-7 years before another opportunity for CoA change or the move to cloud

• Training

• Cross-application impacts • Administration and Finance

• Facilities and Safety • Human Resources • Institutional Knowledge Management• Office of Research and

Commercialization • Provost/Academic Advising/Colleges• Student Development and Enrollment

Services • UCF IT• University Services

TIMELINES

CHARTFIELD CHANGEDISCUSSIONS/INFORMATION SESSIONS

PROTOTYPE DEVELOPMENT &VALIDATION

ERA SOLUTION IDENTIFIED

ATTAIN’S PEOPLESOFT ASSESSMENT/FINAL REPORT DELIVERED

FINALCHARTOF ACCOUNTS DESIGN

IMPLEMENT MINIMAL COA REDESIGN & PROJECT WAHOO

GOLIVE!

2017 FEBRUARY MARCH APRIL MAY JUNE JULY JULY 2018

JULY 2, 2018

SEPTEMBER 2017

JUNE2017

AUGUST 2017

AUGUST 2017

AUGUST 2017

PROJECT WAHOO ELECTRONIC RESEARCH ADMINISTRATION (ERA) & GRANTS IMPLEMENTATION — TIMELINE 1 YEAR

CHARTFIELD CHANGEDISCUSSIONS/INFORMATION SESSIONS

PROTOTYPE DEVELOPMENT &VALIDATION

ERA SOLUTION IDENTIFIED

ATTAIN’S PEOPLESOFT ASSESSMENT/FINAL REPORT DELIVERED

FINALCHARTOF ACCOUNTS DESIGN

IMPLEMENT COA REDESIGN & PROJECT WAHOO

GOLIVE!

2017 FEBRUARY MARCH APRIL MAY JUNE JULY JULY 2019

JULY 1, 2019

OCTOBER 2017

JUNE2017

CHART OF ACCOUNTS REDESIGN & PROJECT WAHOO ELECTRONIC RESEARCH ADMINISTRATION (ERA) & GRANTS IMPLEMENTATION — TIMELINE 2 YEARS

AUGUST 2017

SEPTEMBER 2017

AUGUST 2017

WHAT IS NEXTFeedback from areas most affected by 6/18/2017

• Academic Affairs/Colleges• Facilities and Safety• Human Resources • Institutional Knowledge Management • Office of Research and Commercialization • Student Development and Enrollment Services • UCF IT• University Services

THANK YOU FOR ATTENDING