Session 10 - Capstone Columbia University Medical Center Training Certification Program For Senior Financial Administrators - Session 9

Session 10 - Capstone

Columbia University Medical CenterTraining Certification Program For Senior Financial Administrators - Session 9

June 2005Session 9 - Capstone Page 2


AgendaWelcome and Introductions

Acknowledgements

Remarks – Dr. Gerald Fischbach

Stephen Case

John Mattie

Capstone Presentation – Michael McGuire

Question and Answer

Presentation of Certificates

Closing Remarks


Steering Committee Members

David M. Cohen

Lisa Franciosa

Gary Herrmann

Galene Kessin

Kiki Korikis

Michael McGuire

Michael O’Connor, Ed.D.


Training FacultyName Department

Michael Barone PwC

Geoffrey Berg School of Nursing

Jerry Boak Controller’s Office

Yvonne Boothe Development Systems

Marlene D'Agostino Dept. of Anesthesiology

Lisa David Department of OB / GYN

Steve Elliott University Budget & Finance

Lisa Franciosa PwC

Steve Gillis PwC

Stephanie Goldberg Shared Practice

Amy Goldman PwC

Gary Herrmann CUMC Budget & Finance

Barbara Hurleigh Controller’s Office

Galene Kessin CUMC Human Resources

Name Department

Michael McGuire PwC

Edie Miller Budget & Finance

Myra Marte-Miraz Dept. of Medicine

Michael O’Connor Dean’s Office

Kathy O'Donnell Clinical Affairs

Sara Patterson Dental & Oral Surgery

Dorothy Pearlman Budget & Finance

Michael Reich Purchasing

Jamie Rubin Research Admin.

Richard Ruttenberg Restricted Funds

Carl Sparano Restricted Funds

Susie Stalcup Development

Michael Van Biema Purchasing

Ofra Weinberger Science Tech Ventures


Capstone:

Agenda

– Environment

– Current Trends

– Challenges / Opportunities

– Assessment Framework

– Meeting the Challenge


Capstone:

Role of Financial Administrators:

– Financial Administrators are trained and hired for the purpose of providing fiscal, policy, and internal control management of all funds in a department or division

– They are responsible for ensuring that processes and related controls have been established to achieve the mission and objectives of the organization.

– Internal Controls include procedures for ensuring reliable financial information, establishing accountability and safeguarding of assets, determining that transactions are proper for the account and in compliance with University policies, statutes, and regulations.

– Responsible for ensuring administrative effectiveness of the day to day operation of the department


Industry Drivers Shaping Financial Management

Institutional Reorganization

•Multiple Data Types•Disparate Systems and Processes•Fragmented Controls

•GAO Independence Standards•Revised OMB A-21 & CAS•FASB 116 & 117 and GASB 35•Senate Finance Com initiative

New Regulations

New Technologies•Web Based•Standard Tools and Data Models•Best of Breed Suite Solutions•New ERP Functionality

Business

Inefficiencies•Spreadsheet reporting•Multiple & Misused COA’s•Data Manipulation vs. Analytics•Multiple Signoffs

University Reporting

Consolidation

Mgmt.

ReportingFinancial

Reporting

•Transparency•Reliable, accurate and timely•Board of Trustees governance•Sponsor reporting

Stakeholder Demands


Current Trends ImpactingFinance and Accounting Operations

Market and regulatory conditions have placed greater importance on finance and accounting operations:

– Greater focus on timely and accurate information and internal controls and compliance

– Need to increase quality of skills and re-balance competencies and headcount between transaction processing, control and analysis

– Continued implementation of outsourcing and shared services for high volume transaction processing

– Deployment of new enterprise wide risk and treasury management tools


Current Trends ImpactingFinance and Accounting Operations

Under delivery of the Enterprise Resource Planning systems (ERP) promise has resulted in increased finance reengineering and system tuning:

– ERP systems implemented in prior years do not currently support changing business model

– Need for development of common data model and processes to link planning, budgeting and reporting

– Better processes and tools to analyze customer, channel and/or product profitability

– Increased investment and integration of performance management tools, self service and web deployed processing


Improvement Opportunities

Strategy Treasury & Finance

Planning, Budgeting & Forecasting

Back-Office Operations

Consolidation & Reporting

Strategic Planning Mission Initiatives Donor Relations Capital Structure Strategic Value

Initiatives Working Capital

Planning

Cash Controls & Management

Investment Management

Corporate Finance Financial Risk Insurance

Budget and Planning

Mission Performance Measures

Capital Management

Forecasting

Transaction Processing

Accounting Reconciliation

Outsourcing Shared Services Business

Integration

Financial Close and Consolidations

Inter-School Eliminations

Financial Analysis Financial Reporting Regulatory

Reporting

Performance Management Working Capital Management Performance Measurement Cost Management

Compliance Risk Management Decision Support Operational Investments

The current environment and market conditions present unique improvement opportunities for Finance and Accounting Organizations.


Improvement Opportunities

Systems & Tools Structure & Skills Risks & Controls

Performance Management

Budgeting and Forecasting

Finance Operations Consolidation and

Reporting

Organization Structure Competencies and

Skills Training and

Development

Control Environment Control Activities Operations Monitoring Internal & External

Testing


Operational Finance Assessment Framework– Your assessment framework links opportunities within the Finance Value

Chain with mission and operational strategies

Operational Strategy

And

Service Delivery

CustomerExpectations

Flows

Policies & Controls

Best Practices

Organizational Structure

Core Applications

Staffing Levels Interfaces

Competencies Infrastructure

Development Supporting Systems & Tools

BusinessRequirements

Data Model

Ownership

Performance & CostMeasurement


What is the Financial Management Cycle ?

Business Systems

Value Calculation

Value Calculation

Scenario Modeling

Scenario Modeling

SimulationSimulation

External Reporting

Strategy Evaluation

Strategy Evaluation

Strategic Loop

Data Mart/Dashboards

Reporting

Loop

Departmental Reporting

Consolidation and Reporting

Operations Loop

Adjust OperationsTarget Setting &

KPI’s

Budgeting &

Forecasting

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How will it all fit together?

Policy / Procedure

Data

Technology

Measures

Processes

Organization

Who needs financial data?

Department Chairs/Directors

Presidents/ Deans / VP’s

Board of Trustees


University Financial Management Challenges– Manually intensive effort

– Redundancy in data and reporting streams

– Inconsistent Data Model and Standards

– Numerous Data locations

– Spreadsheet Proliferation

– Poor access to information

– Overall process is cumbersome


How Are Institutions Meeting the Challenge?– A growing number of universities are embarked on a multi-year process to

enhance the financial management activities in order to provide timely and efficient financial results with a high level of integrity and flexibility.

Eliminated redundant non value added activities

Self-service user-oriented tools for on-line, real time

analysis

Created easy, prompt sophisticated

business queries

Reduced data manipulation to provide increased control and

analytics

Automated routine activities for data collection and

processing

Created flexible, timely, and accurate delivery of

information

Powerful visualization capabilities

Consistent information & reporting standards across

business units

Common steps in the process are…


This Leads to Overall Financial Framework and Best Practices

Strategic PlanningStrategic Planning• Vision for the Future

• Strategic Goals and Objectives

• Programmatic initiatives

Financial / Tactical PlanFinancial / Tactical Plan•Financial Plan of action for achieving goals

•Profit & Loss/ Cash Flow Impact of investing in new recruits, facilities, equipment, I/T, etc.

•Departmental Business Plans (Programmatic & Financial Goals)

Annual Budget:Annual Budget:•Operationalize strategy through the annual budget process

•Setting priorities when aligning resources to achieve goals

•Mission-based / All Funds Budget

Performance ManagementPerformance Management• Measurable Goals• Key Performance Indicators• Balanced Scorecards• Accuracy– Systems/ Data Management

AccountabilityAccountability•Performance vs. Goals

• Strategic & financial goals• Dept -> Division -> Investigator

•Faculty Compensation Plan•Resource Re-allocation

•Internal Funds •Space

University Reporting Processes – A critical step to solving the financial management challenge is the

establishment of effective university consolidated reporting:

Sub-LedgersMonth-End Accounting Reporting

Financial Consolidation

1. All transaction based activities complete

3. All data is final for reporting

2. General ledgers finalized

4. Reports completed & distributed

SOURCE DATA/SYSTEMS

Tuition / Fees / Gifts Income

Accounts Receivable

Federal /Non-Fed Grants & Contract

Asset Management

Payroll

Purchasing / Accounts Payable

Treasury/Cash Management

JUDGEMENTS & ESTIMATES

Acct. Reconciliations

Interdepartmental Accounting

Accounting Adjustments

Accruals and Reserves

Service Center & Research Cores Acct.

REPORTING

Spreadsheets

External Reports – (FSR’s, 990’s …)

Ad hoc analysis

Data Warehouse Reporting

Visualization

Segment Reporting

Operational Reporting

CONSOLIDATION ACTIVITIES

Intercompany Eliminations

Investment Accounting Consolidation

Investment earnings Accruals

Top-side Adjustments

Pledge Receivable Adjustments

Data/System Integration

Consolidation/Close

Financial Reporting

Management Reporting


Financial Management Building Blocks – Throughout our training sessions we described the establishment of the integrated set

of components (“Building Blocks”) that comprise the University financial management environment is essential to developing an efficient and effective financial reporting capability.

Data ModelStandards, data quality & integrity, integration

Procedures/ProcessInternal Controls, account usage, capitalization policy, process flows, procedural steps, training documents, etc

Organization / SkillsFinance structure, staff analytical skills, capability development, department administrator integration etc.

Performance Measures

Key financial and non-financial

operational metrics, balanced scorecard

reporting

Chart of Accounts‘Master file' for financial

data that is used to derive financial reports

ReportsTypes of reports, report

formats, content and volumes

Reporting Tools / Architecture Technology and tools used to source, consolidate, deliver and access information

Analytical AnalysisRequired “views” of

financial information (e.g., campus, school, center,

department, mission, etc.)

Timeliness

Controls

Integrity

Efficiency

Flexibility

Real Time Reporting requires:


Summary– Best results occur when all of the “building blocks” are addressed

– Alignment with overall business strategies and objectives at the department level is essential

– Technology solution is critical but is usually only one component of the solution

– Need to address on going controls, standards, data quality, process and organizational responsibilities


Q&A Session

Questions and Discussion


Track 5 GraduatesDiane Amato Surgery

Sandra Bacharach Surgery

Larry Beilis Surgery

Charles Berolo Mailman School of Public Health

Linda Blatnik Center for Emergency Medicine

Daniel Carrier Radiation Oncology

Minu Chaudhuri Neurology

Qing Chen Ophthalmology

Kathryn Clark Student Health Service

Atul Dave School of Dental & Oral Surgery

Latressa Fulton IACUC

Stephen Getz Medicine

Wendy GoldbergGenome Center and Joint Center for System Biology

Peter Hague Oral and Diagnostic Sciences

Nancy Hirshan Neurology

Ana Ignat Pediatrics

Francoise Jeanpierre Medicine

Geronimo Jimenez Orthopaedic Surgery

Danielle Johnson Neurology - Pediatrics

Sean Kelly Medicine

Stella Lau Psychiatry

Pamela Madden Radiology

Cynthia McIntosh Pediatrics

Kim Morel-Betances Neurology

Angela Muniz Kreitchman PET Center

Frederique Nerestan Mailman School of Public Health

Edmund Petro Neurology

Jennifer Quill Surgery

Cesar Rodriguez Neurology

Tina Rosengarten Pediatrics

Steven Schutzer Surgery

Patricia Scipio Internal Audit

Allan Vergara Harlem Affiliation Finance Office

Bonnie Wang Neurology

Cevita Webb Neurology

William Yandolino Office of Budget & Finance

Alan Zank Anesthesiology


Track 6 GraduatesEdith Abreu Heilbrunn Dept. of Population & Family Health

Miriam Acosta Pediatrics

Irina Baramidze Office of Budget & Finance

Hannah Benzaken General Medicine

Mihaela Boghian Taub Institute

Gabriele Briggs Herbert Irving Cancer Center

Maxine Cohen Internal Audit

Marci Ecker Obstetrics and Gynecology

Julie Fisher Medicine/Cardiology

Thomas Glaser Free To Grow

Janique Grant Curricular Affairs

Sally Hodgson Medicine

Todd Hoisington Obstetrics and Gynecology

Elnora Johnson Pathology

Jade Johnson Radiation Oncology

Phyllis Katz Biochemistry & Molecular Biophysics

Narine Malcolm Mailman School of Public Health

Michael Masri Treasury

Ebone McIntosh Harlem Hospital Affiliation

Susan McMahon Mailman School of Public Health

Magdalena Mencia Mailman School of Public Health

Erma Merritt Daffin Medicine / Molecular Medicine

Lesley Muir Mailman School of Public Health

Ernestine Pantel Programs in Occupational Therapy

Pamela Rodman Urology

Jessica Sama Heilbrunn Dept. of Population & Family Health

Carol Schoenberg Office of Budget & Finance

Mera Lee Scovern Controller's Office

Kate Sheeran Treasury / Controller

Esperanza Soriano Orthopaedic Surgery

Elisabeth Tapley Infectious Diseases/Medicine

Milton Tucker Pathology

Theresa Vanni-Reyes Medicine

Edna Velez Government & Community Affairs


Track 7 GraduatesLeila Arbaje Harlem Affiliation Finance Office

Ahsia Badi Harlem Health Promotion Center

Wilfredo J. Baez Psychiatry

Michael Bandura Pediatrics

Edson Black Internal Audit

Rafael Cruz Neurology

Jeanne Dalton Pediatrics

Carmen DeLeon Mailman School of Public Health

Marla Deneff School of Dental & Oral Surgery

Melanie Foley CUMC Administration

Mary Ann Garcia Radiology

Vanessa Gonzalez Dermatology

Catherine Hardy Pediatrics

Katharine Idrissi Surgery

Francis Jones Pediatrics

Rodney Kopec School of Dental & Oral Surgery

Vasiliki Korikis CUMC Administration

Piyumika Kularatne School of Dental & Oral Surgery

Salmen Loksen Radiation Safety

Ira Messer Office of Budget and Finance

Patricia Ann Micek Obstetrics and Gynecology

Valerie Osgood Institutional Review Board

Joyce Plaza Psychiatry-Center for Bioethics

Johnny Quinones Health Sciences Facilities Management

Cynthia Reed Mailman School of Public Health

Cheryl Ross Controller

Abigail Sarokin Pediatric Cardiology

Dona-jean Solski Dermatology

Lauren Sosa Mailman School of Public Health

Claudia Suero Office of Clinical Trials

Susanne Sullivan Medicine-Pulmonary

Christine Villani Pathology

Chantal Volel Surgery

Margaret Walker Student Health Service

Diana Zambrano Pediatrics

COURSE EVALUATION

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Session 9

Session 9 - Capstone

Documents

Session 10 - Capstone Columbia University Medical Center Training Certification Program For Senior Financial Administrators - Session 9