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