Structure Overview

FundS Questions by Fund Group Are there balance sheet reporting requirements? Is this an organizational unit? If so, this should be a business area. Do the funds meet the criteria of a grant? - If so, this should be a grant - If not, a fund is required for internal or external reporting Fund Type Starting Point Projected Final Restricted 9,666 30 Plant & Debt Service 2,345 24 Unrestricted 3 Endowment 89 2 Agency 586 1 Internal Services 6,107 Auxiliary 451 Total 19,274 62

Restricted Funds Fund Type Starting Point Projected Final Restricted 9,666 30 Plant & Debt Service 2,345 24 Unrestricted 3 Endowment 89 2 Agency 586 1 Internal Services 6,107 Auxiliary 451 Total 19,274 62 Area Funding Source Number of Funds Agriculture Federal Appropriations 10 State Line items 2 Student Loans Perkins, DHHS, Direct/Plus, Stafford, Purdue Student 6 Student Aid SEOG/PELL and TEACH Grants 3 Work Study Regular, Tutoring, Math Tutoring, Community Service 4 Gifts/Scholarships/Grants/PIP-C Allocation/ Restricted – Other Cash 5

FundS Represent a particular funding source and restriction Used to maintain accountability to the source Subdivide balance sheet reporting Can split all balance sheet G/L’s by fund In future state, funds mostly consolidated by fund type Internal Orders and WBSE’s will replace the use of multiple funds within a fund type Balances/transactions for A/R, A/P, etc. will be reportable by IO/WBSE

Company Codes Separates Distinct Legal Entities Current State: One company code (PUR) Future State: Multiple company does PUR PII NewU PUR: Purdue University PII: Purdue International PICO: Purdue Colombia PIAF: Purdue Afghanistan TBD: NewU PICO PIAF 7/1/2018: PII, PICO and PIAF will be implemented “NewU” implementation TBD

Business Area Within company codes, Business Areas divide the organization Today, Business Area represents campus West Lafayette, Fort Wayne, Northwest Future State, represents Organizations led by direct reports to the President, Provost, Treasurer, or EVPRP And equivalent positions at PNW / PFW And organizations which require a separate GAAP financial statement E.g. WBAA, North Central Nursing Clinic

Business Area Business Areas will be grouped into segments Two levels of segments will be used First grouping: based on executive reporting Segments for Provost, CFO, EVPRP and President Second grouping: based on campus Segments for West Lafayette, Fort Wayne, Northwest May want to mention that this allows full financial reporting at the campus level. This is a hot topic at the Fort Wayne campus especially.

Business Area Future State Example Segment Segment Business Area

Cost Center Future State Represents units To which multiple positions are assigned 1:1 with future state HR Departments (i.e. “org units”) That are accountable for their annual revenue and expenditures That can allocate revenues or make independent decisions about use for specific purposes and programs Will not be used for tracking programs, projects, etc. that don’t function as organizational units

Cost Center Future State Three-level hierarchy Level 1: “Department” Level 2: “Sub-Department” Level 3: “Program” Cost Centers can be reassigned to different departments and business areas without changing numbers Addresses many problems caused by reorgs Will not maintain “smart-numbering” after implementation No longer will be able to tell campus and major unit/college from looking at the cost center

Cost Center Structure Future State Example Emphasize that level 3 and level 4 are going to exist as organizational units Cost centers will be used forever Relations with other cost objects

Internal Orders Used for detailed tracking within Cost Centers Individual programs E.g. Study Abroad, Digital Education programs Individual gift/scholarship accounts Can be assigned to the “Sub-Department” and “Program” level Cost Centers Most transactions not associated with faculty or construction accounts will post to internal orders in the future state

Internal Orders Internal Order Types Allow grouping for more detailed reporting Internal Order Sub-Type/Funded Program Type Categorizes accounts by detailed restrictions/ designations Undergrad Scholarships, Graduate Scholarships, etc. Will determine IO numbering SIO’s will still not be available for use in conjunction with “RIO’s”

WBS Element (WBSE) Similar to an Internal Order Allows for linkages to “projects” Construction projects (C.X0.00000) Faculty* members (F.XXXXXXXX.XX.XXX) Each faculty member will have a project Will be categorized by Funded Program Type Also categorized by “node” *Staff who receive allocations for their personal research/instruction/ engagement activities may also have projects

WBS Element (WBSE) Simplified Faculty Allocations Structure (next slide is bigger – if you want to get closer) Faculty can see all accounts in one place Allows departments to identify and segregate resources allocated to faculty for their individual activities

Data Clean Up & Conversions

Master Data Conversion Convert 60,000+ valid cost strings to new account structure Define functional area, public/non public, and available/unavailable for each item Define type of account and associated faculty member Giving units all active cost centers/internal orders/funds as of 8/31/17 Prepopulating as much data as possible Focusing on identifying faculty accounts Asking users to evaluate What am I using this account for? Do I need to track this in this way? Can I combine this with other accounts?

Master Data Conversion Timeline SAP 101 Sessions Train on system functionality & changes to master data September 11 – September 29 Pilot Group Training Test Training materials Develop SMEs to assist with full conversion September 27 Pilot Group Conversion Select group of departments perform conversion mapping September 27 – October 11 SAP 101 – 5 Sessions Full Group Training – week of October 16th Conversion Mappings due to project team 11/17

Pilot Structure Participating units were given 10 days to review and map cost strings 11 departments selected from all campuses 7 PWL, 2 PFW, 2 PNW Mixture of academic, academic administration, academic support, administrative and auxiliary units Representative of a variety of units But not necessarily representative proportionally Data is not handled consistently across departments currently, so it is difficult to determine where we need to focus efforts for additional simplification and consolidation; this exercise will give us the visibility to do that

Account Mapping Pilot Includes: Student Success Engineering Administration Rec & Wellness Vice President for HR Chemistry Forestry Political Science Chancellor – Purdue Northwest College of Nursing – Purdue Northwest Athletics – Fort Wayne Music Department – Fort Wayne

OVERALL CONVERSION METRICS *Units were not instructed to consolidate scholarships pending decisions on overall university management of scholarship selections

OVERALL CHANGE Pilot departments currently are responsible for 3650 cost strings Excluding sponsored programs 45% of cost strings were eliminated in the first conversion iteration 16 funds 81 cost centers 1265 754 IO’s WBSE’s

Data Conversion & Clean Up Data Object Activity Needed Business Lead Goal Business Partner Identify active vendors, remove duplicates, assign proper roles, fill in all required fields Jennifer Littlefield/Judy Ewbank/Julie Smith/Edie Doland/Nicholas Urcuioli Scrub 100% of data by 12/31/17 Faculty Allocations Map all faculty accounts to new structure; close any unneeded accounts TBD Map all Faculty accounts by 10/31/17 Funds/Cost Centers/Internal Orders Map all accounts to new framework; close any unneeded accounts Finalize cost center structure & departmental funding structures 11/15/17 Grants Close all inactive grants 100% of inactive grants closed by 12/31/17 Accounts Receivable Scrub all open accounts receivable balances and close inactive accounts Edie Doland 100% of accounts cleansed by 12/31/17 Accounts Payable Close Open PO line items, Open GR/IR, Open purchase requisitions, pending Concur transactions, outstanding checks, and prior year checks Janessa Martin/Judy Ewbank

Third Party Integration

Third Party Integration Master Data Roadshow Additional Follow Up Meetings Student Systems (All three campuses) ECSI Paymetric/Biller Direct Ariba Concur Coeus

Other Updates

Signature Delegation Update A framework has been proposed for signature delegation Background reviews with DFA, SPS, IA, Costing, Procurement, Accounting, BPR Team Established minimum level of fiscal approval at $10K and revised current levels Fiscal Approvals targeted directly to authorized level versus progressing through the delegation levels Opportunities exist for simplification

Signature Delegation Update Focused reviews over next 5 weeks Ariba Concur S/4 HANA Contract Management Procurement Outcome Finalize scope & blueprint design for signature delegation work Sessions lead by EPI-USE to determine scope of signature delegation work required. Scoped work needs to be included into planning process.