Kuali Financial Systems Barry Walsh, Indiana University April 10, 2006

“Community source describes a model for the purposeful coordinating of work in a community. It is based on many of the principles of open source development efforts, but community source efforts rely more explicitly on defined roles, responsibilities, and funded commitments by community members than some open source development models.” …. from Community Source Projects

“Community source describes a model for the purposeful coordinating of work in a community. It is based on many of the principles of open source development efforts, but community source efforts rely more explicitly on defined roles, responsibilities, and funded commitments by community members than some open source development models.” …. from Community Source Projects

Kuali Financial Systems is a community/open source initiative to create a comprehensive financial information system for higher education Designed for any Carnegie Class institution, from Community College to R1 institutions –Indiana University is 8 campuses 2 R1 campuses 6 smaller campuses Has had significant review by NACUBO colleagues

What is it all about? New System Design ? Indiana Financial System Refactor The Technology Limited Enhancements Defined by Functional Council

Project Costs $7.4 m total project cost 72+ person-year effort Core partners: –$500,000  $2,000,000, depending on Size and Carnegie Class >$4,400,000 from Founding Partners –Cash or tendered personnel resources March, 2005: $2.5m grant from the Andrew W. Mellon Foundation

Founding Partners Currently have Six Institutional Founding Partners NACUBO is also a Founding Partner r*smart is a Founding Partner

Governance Kuali Board –Voting member from each Institution –NACUBO and r-smart –Chair from Indiana –Extended Board Project Manager –Developers from each Institution Functional Council –Members from each Institution –NACUBO and r-smart –Subcommittees

Kuali Foundation –Ongoing governance Kuali Partners Program –Free? Membership ‘fee’ ? –Commercial Affiliates Governance/cont’d

Phase I Chart of Accounts General Ledger Accounting e-Docs Disbursement Voucher On-line balance inquiries Routing and Approval Basic reports Phase II Labor Distribution Budget Construction Contracts & Grants (pre and post award) Capital Assets Accounts Receivable FDRS (Decision Support)* Purchasing Accounts Payable Endowment IU infrastructure elements that are also available: OneStart Workflow© (XML) Portal Framework* IUIE (Decision Support)* *Optional Proposed Kuali Scope

What’s not Included? Applications where each institution will have very specific policies and needs: –Decision Support Environment –Security Structure –Cash Disbursement Configuration, i.e. “Check writers”

Kuali Features Modular Design Scalability Distributed Access Flexible Chart of Accounts Robust Workflow Engine

Modular Design E-Forms Kuali ‘Transaction Engine’ --Workflow; Portal Chart of Accounts - General Ledger Reports Data Decision Support System and adhoc Queries and Reports “External” feeds Payroll Students Receivable Physical Plant Library fines etc.

Modular Design Clean “handshakes” between functions Can implement some or all of the modules –Capital assets module may be more than is needed for schools with limited research activity –The Endowment module may be attractive for schools running other financial systems

Scalability No limit to the number of –Users –Accounts –Data values –Transactions –Custom Attributes Two of IU’s campuses are major research institutions, others are similar in size to a liberal arts college

Distributed Access Department personnel initiate transactions from their desktop web browser – the software is not installed on their machines Initiator receives immediate feedback on the validity of the transaction – both valid data and compliance with business rules Past transactions can be retrieved and reversed or “templated” Transaction data can up uploaded from spreadsheets

Benefits for a Controller/CFO Chart of Accounts is custom made for higher education –Function Codes –Fund Groups –Restriction status Includes functionality missing in many vended packages: –Encumbrances –Carry forwards and reversions –Special attributes/functionality for programs and appropriations –Fiscal year to date and project year to date balances System is scaleable for the level of complexity required by individual institutions

Benefits for Controller/CFO – (continued) Workflow allows for individual school/department/campus set up for approvals/fyi Business rule configuration allows for enhanced internal controls Kuali product will include tools for effective financial management –Template of core financial policies –Training Series module for fiscal officers

Questions?

Chart of Accounts Bill Overman, Indiana University

What is the Chart of Accounts? CoA is the set of tables that define the codes and coding structures within Kuali.

Purpose of the Chart What is the primary purpose of a chart of accounts? To support and validate entries into a general ledger What other functions does the Kuali chart of accounts serve? Reporting, both internal and external Internal controls and document routing Framework for budget construction

Key Attributes of the Chart multiple charts of accounts organizations and the organization hierarchy accounts and sub-accounts object code and sub-object codes object level codes and object consolidation codes

Chart of Accounts at IU IU COA UA COABL COA BA COA IN COA IA COA Regional COAs

Benefits of Multiple Charts Ability to handle complex reporting structures Campus charts are not required to contain object codes unrelated to their activities (i.e. Cost of Goods Sold, Inventory, etc.) Auxiliary Charts are not required to contain object codes unrelated to their activities (i.e. Tuition, State Appropriations) Increased Information and Knowledge at the Campus Level Easy Access to Campus Level or Auxiliary Reporting.

Organizations Organization –Example: FMOP (FMS Administration) –Collection of accounts or a collection of other organizations. –Some organization attributes: Chart of Accounts, Responsibility Center, Campus, Department, Subunit Can include all fund groups Up to four alphanumeric characters (eg. FMOP) HRMS extension table

Organization Hierarchy at IU VPPF UA UNIV FMS FMOPFMSY

Accounts Account Number –Specific identifier for a pool of funds assigned to a specific organization for a specific function. Example: (FMS Administration) Reports to org FMOP –All accounts can be self-balancing

Account Attributes Account Number (continued) –Attributes of an Account include: Chart Organization Higher Education Function Code Restricted/Unrestricted Sub Fund Group and Fund Group –Responsibility for an Account Fiscal Officer, Account Manager and Account Supervisor

Org Hierarchy with Accounts VPPF UA IU FMS FMOPFMSY

Sub-Accounts Sub-accounts achieve further division of an account for internal reporting purposes. Example: custr (FMS Customer Service) Reports to Characteristics of a sub-account: –Account specific –Assumes all attributes of the account it reports to

Org Hier with Accounts/Sub-accounts VPPF UA IU FMS FMOPFMSY aucapcustr

Object Codes Object Codes are detailed identifiers for Income, Expense, Asset, Liability and Fund Balances. –Chart specific –Four numeric digits –Example 1: BL-2000 “Academic Salaries” IN-2000 “Academic Salaries” –Example 2: BL-1504 “Animal Care Income” IN-1504 “Card Services Income”

Sub-Object Codes Sub-object codes achieve further division of an object code for internal reporting purposes Attributes of a sub-object include the following: –Specific to an account and object code –Assumes all attributes of the object code it reports to Example: In State Travel Object Code 6000 –Faculty Instate Travel, Fac –Staff Instate Travel, Sta –Student Instate Travel, Stu

Levels and Consolidations All object codes report to a higher Level code and each Level code reports to a higher Consolidation code –Approximately 80 Levels (although no limit) –Approximately 20 Consolidations (no limit) –Example: Object Code 4100 “Office Supplies” Level S&E “Supplies and Expense” Consolidation GENX “General Expenses”

Enhancements to the Kuali chart Budget Year –Work in multiple fiscal years at the same time –Required for reporting uses of state appropriations in many states Flexible Claim on Cash –Post cash offsets to control accounts rather than having each account be self balancing Program Code –A requirement for all community colleges in California –Account attribute, will be displayed on each transaction line Custom Attributes –Create additional attributes as necessary on any existing table

Management Control and COA How can I use the chart for organizational management? –Flexibility in Reporting –Flexibility in making Routing decisions –Hierarchy for Responsibility Management –Facilitates internal controls by assigning fiscal officers, account managers, supervisors and delegates. –Tool for measuring the performance of a subunit

Management Control and COA What tools do I have to achieve my reporting objectives? –With the Approval of the Chart Manager Organizations Accounts Object codes –Sub-accounts (budgeting / spending) –Sub-object codes (budgeting / spending) –FDRS Reports –FIS

Questions?

Sterling George, Indiana University Vince Schimizzi, Michigan State University General Ledger Overview

Agenda Topics Overview of the accounting cycle from e-doc creation to decision support Components of the accounting cycle (ledger attributes, back office functionality, and year- end processes) Affect of system reference table updates & chart of accounts e-docs on ledger data Kuali GL enhancements On-line GL balance inquiry screens

Overview of Accounting Cycle

Accounting Cycle Continued

General Ledger Detail FIELD NAMEFORMATBUSINESS NAME UNIV_FISCAL_YRVARCHAR2(4)FISCAL YEAR FIN_COA_CDVARCHAR2(2)CHART ACCOUNT_NBRVARCHAR2(7)ACCOUNT NUMBER SUB_ACCT_NBRVARCHAR2(5)SUB ACCOUNT FIN_OBJECT_CDVARCHAR2(4)OBJECT CODE FIN_SUB_OBJ_CDVARCHAR2(3)SUB OBJECT FIN_BALANCE_TYP_CDVARCHAR2(2)BALANCE TYPE FIN_OBJ_TYP_CDVARCHAR2(2)OBJECT TYPE UNIV_FISCAL_PRD_CDVARCHAR2(2)FISCAL PERIOD FDOC_TYP_CDVARCHAR2(4)DOCUMENT TYPE FS_ORIGIN_CDVARCHAR2(2)ORIGIN CODE FDOC_NBRVARCHAR2(14)DOCUMENT NUMBER TRN_ENTR_SEQ_NBRNUMBER(5)SEQUENCE NUMBER TRN_LDGR_ENTR_DESCVARCHAR2(40) TRANSACTION DESCRIPTION

General Ledger Detail Continued FIELD NAMEFORMATBUSINESS NAME TRN_LDGR_ENTR_AMT NUMBER(19,2)TRANSACTION AMOUNT TRN_DEBIT_CRDT_CDVARCHAR2(1)DEBIT CREDIT CODE TRANSACTION_DTDATETRANSACTION DATE ORG_DOC_NBRVARCHAR2(10)ORG DOCUMENT NUMBER PROJECT_CDVARCHAR2(10)PROJECT CODE ORG_REFERENCE_IDVARCHAR2(8)ORG REFERENCE ID FDOC_REF_TYP_CDVARCHAR2(4)REFERENCE DOCUMENT TYPE FS_REF_ORIGIN_CDVARCHAR2(2)REFERENCE ORIGIN CODE FDOC_REF_NBRVARCHAR2(9)REFERENCE DOCUMENT NUMBER FDOC_REVERSAL_DTDATEREVERSAL DATE TRN_ENCUM_UPDT_CDVARCHAR2(1)ENCUMBRANCE UPDATE CODE TRN_POST_DT DATEPOST DATE

General Ledger Balance FIELD NAMEFORMATBUSINESS NAME UNIV_FISCAL_YRNUMBER(4)FISCAL YEAR FIN_COA_CDVARCHAR2(2)CHART ACCOUNT_NBRVARCHAR2(7)ACCOUNT NUMBER SUB_ACCT_NBRVARCHAR2(5)SUB ACCOUNT FIN_OBJECT_CDVARCHAR2(4)OBJECT CODE FIN_SUB_OBJ_CDVARCHAR2(3)SUB OBJECT FIN_BALANCE_TYP_CDVARCHAR2(2)BALANCE TYPE FIN_OBJ_TYP_CDVARCHAR2(2)OBJECT TYPE ACLN_ANNL_BAL_AMTNUMBER(19,2)ANNUAL BALANCE FIN_BEG_BAL_LN_AMTNUMBER(19,2)FINANCIAL BEGINNING BALANCE CONTR_GR_BB_AC_AMTNUMBER(19,2)C&G BEGINNING BALANCE

General Ledger Balance Continued FIELD NAMEFORMATBUSINESS NAME MO1_ACCT_LN_AMTNUMBER(19,2)MONTH 1 AMOUNT (JULY) MO2_ACCT_LN_AMTNUMBER(19,2)MONTH 2 AMOUNT (AUGUST) MO3_ACCT_LN_AMTNUMBER(19,2)MONTH 3 AMOUNT (SEPTEMBER) MO4_ACCT_LN_AMTNUMBER(19,2)MONTH 4 AMOUNT (OCTOBER) MO5_ACCT_LN_AMTNUMBER(19,2)MONTH 5 AMOUNT (NOVEMBER) MO6_ACCT_LN_AMT NUMBER(19,2)MONTH 6 AMOUNT (DECEMBER) MO7_ACCT_LN_AMTNUMBER(19,2)MONTH 7 AMOUNT (JANUARY) MO8_ACCT_LN_AMT NUMBER(19,2)MONTH 8 AMOUNT (FEBRUARY) MO9_ACCT_LN_AMT NUMBER(19,2)MONTH 9 AMOUNT (MARCH) MO10_ACCT_LN_AMTNUMBER(19,2)MONTH 10 AMOUNT (APRIL) MO11_ACCT_LN_AMTNUMBER(19,2)MONTH 11 AMOUNT (MAY) MO12_ACCT_LN_AMTNUMBER(19,2)MONTH 12 AMOUNT (JUNE) MO13_ACCT_LN_AMTNUMBER(19,2)MONTH 13 AMOUNT (CLOSING)

Accounting Cycle Components Sufficient Funds Checking - In general, calculates an available amount and prevents document approval in the event of insufficient funds (budget - actual expenses - outstanding encumbrances - pending entries). An optional feature by account with five variations - object code, level, consolidation, by account, and cash checking. Pre-Scrubber and Scrubber – Perform the following major functions: Validation of Data Application of select missing values Reference to chart of accounts for validation (non-free form fields) Continuation account logic Generation of offsets Document balancing Capitalization of assets and liabilities Plant indebtedness Cost share transfers Cost share encumbrances Error handling Most common source for error files for input into the GLCP e-doc (in conjunction with De-Merge process)

Accounting Cycle Components Continued De-Merge Process – Pulls all of the transactions for a document that the scrubber found to have errors and backs out any scrubber generated offsets. This is the main source of transactions for the General Ledger Correction Process (GLCP) e-doc. GL Poster – Performs the following major functions: Three instances of the poster Primary poster for the scrubbed transactions Automated reversal process Indirect Cost Recovery (ICR) Limited validation of data (amount, account number, object type, balance type, fiscal year, chart, debit/credit indicator, & reversal date) Updates and inserts to GL tables GL Detail (GLEN) GL Balance (GLBL) Account Balance (ACBL) Sufficient Funds (SFBL) Open Encumbrances (GLEC) GL Reversals (GLRV) Initial determination of expenses eligible for ICR GL Expense Transactions (GLEX) temporary table

Accounting Cycle Components Continued Automated Reversal Process - Systematically reverses transactions that were created with a reversal date. A copy of the original transaction remains in the GL Reversal (GLRV) table until the reversal date is reached, at which time a reversing entry is created and posted. The original entry is then removed from the GLRV table. Indirect Cost Recovery (ICR) – Calculates ICR based on the expenses found in the GL Expense Transactions (GLEX) table. Generally, ICR is charged to the account incurring the original charge and revenue is recorded in an associated income stream account, usually a general fund Responsibility Center (RC) account (table driven). The ICR process references attributes of account and supporting reference tables to derive an amount. –From account - financial series ID, ICR rate, ICR types, custom exclusions by object code, and revenue chart and account –From reference tables – ICR automated entry, ICR type, and account exclusions Accounting Cycle – Kuali Test Drive accounting cycle runs 11pm EDT Sunday – Friday with refreshes of the test database each Saturday at 5:30am. Documents fully approved by the 11pm accounting cycle will post to the General Ledger tables.

Functionality and Chart Set-Up Attributes of Account Numbers –Sufficient funds checking on/off indicator and type of checking (object code, level, consolidation, cash checking, account) –Expiration date, closed indicator, and continuation accounting string for continuation account processing –Indirect cost rates, financial series ID’s, exclusions, and revenue accounts for Indirect Cost Recovery (ICR) calculations Attributes of Sub-Account Numbers –Identifies cost share sub accounts and the source accounting string for cost share transfers and cost share encumbrance processing Attributes of Organizations –Identify the plant fund account numbers for capitalization and plant indebtedness Offset Definition Reference Table –Determines the appropriate offset in the event a balancing transaction is needed Many other examples for other GL fields and reference tables…

GL Correction Process (GLCP)

GL Enhancements - Turn On/Off Flexible Offsets – Allows posting of generated offsets (cash, accounts payable, salaries payable, etc…) to a specified offset accounting string. Each implementing institution can determine if offsets should post to the same account as the original transaction or to another defined accounting string. An offset accounting string can be established by document type within an account. Bank Specific Claim on Cash – At the document level, allows the association of receipts and disbursements with a specific bank account. When activated users can specify a specific bank on appropriate e-docs (DV, ND, CR, PREQ, etc…). When specified an additional set of cash transactions will be generated which reclassify the original cash entry to a bank specific cash entry, likely in an institutional level account. The accounting string for the additional bank specific entries is maintained via bank reference tables. Indirect Cost Recovery (ICR) Encumbrances – An extension of the actual ICR calculation for encumbrances. This is an optional feature, that when activated will calculate ICR encumbrances based on the outstanding encumbrance balances for an account. The intent is to provide a more complete view of an account’s position.

GL Enhancements Continued - Turn On/Off Budget Year – Allows an institutions to associate individual transactions by a budget year (for a given funding source), which may differ from the institution’s fiscal year. Examples might include: annual appropriations from the federal government to land-grant institutions; annual appropriations from state or local governments; and funding for sponsored research projects, which may cover a period of several years. When assigned the budget year attribute will post to the general ledger detail (GLEN) table and additional budget year balance tables. Additional features of the budget year enhancement include: –Multiple budget years for the same funding source may exist at various stages of the budget year life cycle (future, open for budget, open, restricted, extended, closing, and closed). –Business rules will govern the appropriateness of an assigned budget year based on the budget year life cycle status and the document being processed. –A default process will assign an appropriate budget year should an external feed not provide a budget year value. –A budget year close process, driven by business rules, will govern how unexpended funds are carried forward or lapsed back to a granting agency.

On-Line Balance Inquiries Common Inquiry Features: Drill Down Capability – Users can drill down from balances to detail transactions and from detail transactions to e-docs. Include/Exclude Pending Entries – Inquiry screens will have the ability to include all pending ledger entries, approved pending ledger entries, or exclude pending entries from the results. Consolidation/Detail Option – Allows the users to accumulate results by Sub- Account, Sub-Object Code, and Object Type or return each occurrence for these fields. Export Functions – The results of the balance inquiry screens may be downloaded in CSV, Excel, or HTML formats. Sort-able Results – The output may be sorted in ascending or descending order by clicking on the appropriate columns.

On-Line Balance Inquiries Continued Balance Inquiry Screens: Available Balances - Summary totals of Budget, Actual, Encumbrance, and Variance amounts by Fiscal Year, Chart, Account Number, Sub-Account Number, Object Code, and Sub-Object Code. Balances by Consolidation - Summary totals of Budget, Actual, Encumbrance, and Variance amounts by Fiscal Year, Chart, Account Number, Sub-Account Number, and Consolidation. Users have the ability to drill down to Level and then to Object Code. Cash Balances - Provides Beginning, Annual, and Ending Cash Balances by Fiscal Year, Chart, Account Number, and Sub-Account Number. General Ledger Balances - Summary totals of General Ledger balances by Fiscal Year, Chart, Account Number, Sub-Account Number, Object Code, Sub-Object Code, Object Type, Balance Type, and Accounting Period. Balances can be displayed individually for each Accounting Period or accumulated and reported as year-to-date totals. General Ledger Detail - Listing of transactions posted to the General Ledger. Pending General Ledger Detail - Listing of Pending Ledger Entries for the General Ledger. When a financial transaction E-Doc is initiated, Pending Ledger Entries are created. These entries remain in the Pending Ledger Entry table until they are posted to the General Ledger. Open Encumbrances - Listing of the open encumbrances for an Account Number. Both the original encumbrance amount and the amount relieved to date are displayed.

Year-End Processing Cancellation of select unapproved E-docs after June 30 accounting cycle Activation of year-end documents for posting to fiscal periods 12 & 13 –Accounting transactions occur in two fiscal years Normal Kuali documents post in the period approved –Prior to June 30 they post to the previous fiscal year –After June 30 they post to the new fiscal year Year-end documents post to the prior fiscal year –Through first closing they post to period 12 –After first closing through final closing they post to period 13 Snapshots of Account and Organization tables for year-end reporting Generation of Business Manager Reports – General Fund Organization Reversion, Negative/Positive Cash, Outstanding Encumbrances, Prior Year June Activity, General Ledger, Fund Statements, Preliminary Balance Sheet – also available as Pre-Defined Queries (PDQ’s) at Pre-Closing (June 6), First Closing (July 6), Second Closing (July 14), and Final Closing (July 25) Generation of Monthly Standard Reports for First and Final Closing

Year-End Processing Continued Four primary year-end processes are run in sequence to properly close a fiscal year: Organization Reversions and Carry Forwards – Driven by the GL Balance (GLBL) table and Organization Reversion reference table. Computes budget and cash reversion and carry forward amounts based on a set of defined business rules. Business rules are established for organizations within the General Fund and computations are performed by common categories (Salaries and Wages, Financial Aid, Compensation, Travel, Capital, Other Expenses, etc…). Following are two examples of possible business rules: –Carry forward enough budget to cover outstanding encumbrances. Then carry forward any remaining positive budget balances and revert any remaining negative budget balances. –Don’t carry forward enough budget to cover outstanding encumbrances. Then revert remaining budget balances. Encumbrance Forwards – References the GL Open Encumbrance (GLEC) table and sets up outstanding encumbrances for the new fiscal year. Close Out of Nominal Activity – Closes all nominal activity (Income and Expenses) to Fund Balance based on amounts found in the GL Balance (GLBL) table. Beginning Balance Forwards – Establishes beginning balances for Assets, Liabilities, and Fund Balance (as Financial Beginning Balances) and cumulative Income and Expenses (as Contracts and Grants Beginning Balances). The latter is only performed for a select set of Fund Groups.

Questions?

Basic Transaction Documents Joan Hagen, Indiana University Kymber Horn, University of Arizona

TP Global Concepts Transaction Processing Users create transactions with built-in edits before transactions route for approval. Fully approved transactions are sent to the general ledger. Allows read-only access to transactions via document search.

Electronic Documents Document groups: –Accounts Receivable –Capital Assets –Contract & Grants –Financial Documents –Labor Distribution –Chart of Accounts Maintenance Financial documents include: –Budget Adjustment –Cash Receipt –Disbursement Voucher –Distribution of Income/Expense –General Error Correction –Internal Billing –Journal Voucher –Disbursement Voucher –Transfer of Funds

Edits and Rules Validations Restrictions –Account –Object code Balancing rules Special features/Specific documents Authorizations/Routing

eDoc Account Edits

eDoc Object Code Edits

Kuali Business Rules Maintained by Financial System Parameter Tables Allows Functional Users to maintain and create business rules. Allows institutions to customize out of the box business rules based on their codes and policies.

Moving Expense Business Rule

Financial System Parameter

Editing Business Rules

Offset Entries Users create transactions based on what they know - From/To, etc. The system creates the offsets to the appropriate balance sheet account. Flexibility of where cash is posted: –Within the account to create self balancing accounts –To an institutional account Pending Entries are part of the document.

General Ledger Pending Entries

After Validation Once an eDoc is validated it is routed through workflow. –Fiscal Officer Routing –Organization Routing –Special Conditions Routing

Questions?

Workflow Damon Dorsey, Indiana University

What is Workflow? Functionally... Workflow is the art of moving transactions from one place to another, requesting and recording actions related to that transaction along the way. Technically... Workflow is a routing engine that works with Kuali. Workflow functions by matching attributes of a transaction to existing rules that indicate where a transaction with those attributes should go. Most commonly Workflow is used to collect approvals.

How does Workflow work? After a transaction is initiated, Workflow electronically routes the transaction to the proper approvers. The path of approval can be influenced by: –The type of transaction (example: a Cash Receipt document may route differently than a Transfer of Funds) and... –The content of the transaction itself (example: a transaction charging supplies to a grant account may need to route for special approval)

What Workflow Actions are Available? Workflow can send users action requests of various types. These requests are collected in the user’s Workflow Action List. Common types of action requests include: Approve: Verify that the transaction is acceptable. Approved financial documents will continue routing to additional approvers, or--if fully approved-- be included in the next update to the General Ledger. Acknowledge: A request to view and acknowledge a transaction without the need for a formal approval. FYI Review: A courtesy request allowing the user to view the transaction or just clear the request from their action list without viewing it.

What Workflow Actions are Available? Disapproval: Requests for approval can be disapproved, indicating the transaction is incorrect or unacceptable. Disapproved transactions cease further routing and will not be sent to the general ledger. The document initiator and any previous approvers receive an Acknowledgement action request, letting them know the document has been disapproved. Disapproved documents (in fact, any documents) can be copied and used as the basis for future documents. This allows for easy correction and re-submission.

Financial Document Routing Overview Documents pass through one or more route levels (also called “route nodes”). Route levels represent different sets of rules that will evaluate a document to determine its routing. Different documents may pass through different route levels. Commonly, financial documents pass through the following route levels: –Account Level (Fiscal Officer) –Organization Level (Review Hierarchy) –Special Conditions Routing

Financial Document Routing Overview Account Level (Fiscal Officer) All accounts used on the document are identified and it routes to a designated approver (in Kuali we call this person a “Fiscal Officer”) for each of those accounts. Example: Sue is the Fiscal Officer for account All financial transactions involving that account will require her approval. All approvals at this level must happen before the document moves forward.

Financial Document Routing Overview Organization Review (Review Hierarchy) Every account belongs to an organization and customized routing to individuals or workgroups can be established by each organization based on document type and dollar amount. This routing can take advantage of the Chart of Accounts Organization Hierarchy. Examples: The Dean of Biology wants a chance to approve every Transfer of Funds document over $1,000 that involves a Biology account. The Chancellor’s office wants to see Transfer of Funds documents over $100,000 for all organizations that answer to a particular campus. All approvals at this level must happen before the document moves forward.

Financial Document Routing Overview Special Conditions Routing This is a blanket-term for additional route levels that might be triggered by various attributes of a transaction. They often represent special administrative approvals that may be required. They can be based on the type of document, attributes of the accounts being used, or other attributes of the transaction. Examples: Disbursement Vouchers for travel must be approved by Travel Management. A transaction using a grant account must be approved by a central Contract & Grant Administration area.

Delegates Fiscal Officers can delegate approval authority to other users based on attributes of a specific transaction such as document type and dollar amount. Delegates can approve documents at the “Account Level” of routing as if they were the Fiscal Officer. Two kinds of delegates exist: Primary delegates and Secondary delegates. Fiscal Officers can choose to establish either type of delegate or both.

Delegates Primary Documents route directly to primary delegates instead of routing to the Fiscal Officer. Secondary These delegates have a special “filter” option in their action list that allows them to retrieve documents for which they have been given approval authority. Fiscal Officers can still access any documents they are responsible for.

Workgroups A workgroup is a collection of approvers who share a similar responsibility. If a document routes to a workgroup, all members of the workgroup will see that document in their action lists. Once any member of the workgroup takes action on that document, the document is removed from the action list of all other members of that workgroup.

Ad-Hoc Routing Ad-Hoc routing allows a document initiator or approver to add additional individuals or workgroups to the routing of a specific document. Approvers inserted into the routing “interrupt” the regular routing process. Example: If I initiate a financial document and ad-hoc route it to my boss for approval it will go to her before it goes to the Fiscal Officer. You can request that an ad-hoc recipient Approve, Acknowledge or FYI Review the transaction.

Blanket Approval Users can be established as Administrators, giving them the ability to blanket approve most transactions they initiate or for which they are an approver. Blanket approval pushes a document to “Approved” status. All approvers who are skipped by the blanket approval receive an Acknowledgement request for that document—ensuring that they see it.

System Supervisor Approval A user established as a System Supervisor (“super user”) can take special workflow actions: –Fully Approve or Disapprove any document, regardless of currently pending approvals. –Approve a single action request for a particular user. –Approve the document through to a different route level (sending it straight to Organization Review, for example).

Is it Flexible? Routing can be configured in Workflow. –Delegates / Organization Review / Ad-Hoc routing. –Different rules can be constructed and associated with specific document types or groups of documents. –Different attributes of transactions can be used to trigger routing rules.

Questions?

Standard Reports and Balance Inquiry David Lyons, NACUBO

Standard Reports Account Status Consolidated Account Status Consolidated Object Codes Account Transactions Trial Balance External Reports Balance Inquiry

Account Status For Accounts with Budgets: Budget, Actual to Date, Balance, Commitments, and Final Balance For General Ledger Accounts and/or Object Codes: Beginning Balances, Actual to Date and Ending Balances for Each Object Code

Consolidated Account Status Groups of Accounts by Organization Unit Organization Unit Examples : Academic Department, Dean, School, Auxiliary Enterprise, Physical Plant, Vice President

Consolidated Object Codes Groups of Object Codes by Organization Unit Highest Level: Summary of Object Codes for Entire College or University

Account Transaction Details the Individual Transactions Shown in Summary in the Account Status Report Descriptions and Document Reference Numbers Actual and Encumbrances

Trial Balance For Each Account: Beginning Fund/Net Equity Balances with Additions, Deductions and Ending Balances. Columns for Assets, Liabilities and Cash Ownership to Complete the Accounting Equation

External Reports FASB or GASB as Appropriate Use Kuali Attributes and Chart Structure to Develop These Reports

Balance Inquiry Include/Exclude Pending Entries Account, Sub-account, Object Code, Sub-object Code Budget, Actual Encumbrance, Variance Drill Down to Underlying Transaction Document Number

Questions?