Finance Strategic Transformation: Phase 1 Scope/Activities Fiscal Administrators Group August 8, 2018

Phase 1 – Assessment and Planning Scope of Assessment & Planning Activity Current State Review/Future State Opportunities Functional Gap Analysis Implementation Roadmap Business Case Change Management 1

Finance Strategic Transformation (FST) Phase 1 – Assessment and Planning Functional Scope Financial Budgeting & Planning General Accounting & Financial Reporting Gifts & Endowments (Accounting) Payroll (Integrations with Financial System) Procure to Pay Accounts Payable Accounts Receivable/Internal Billing Post-award Research Administration Labor Distribution Student Financial Services (Integrations from SIS to Fin. System) Bank Reconciliation/Cash Management Fixed Assets/Capital Project Finance Chart of Accounts, Internal Controls, IT Landscape (will be addressed in context of functions above) 2

Phase 1 – Assessment and Planning Activities and Participants Note: Tentative; not confirmed Source: Deloitte Key Activity Step Objectives Format/ Duration Participants Current State / Future State Design Business Process Maturity Model (BPMM) Workshops Overview of current state Alignment with desired future state Priorities for BP transformation Business requirements 1 half-day workshop per functional area Funct. Bus. Owner Business Officers Central Finance Key Unit Reps IT Landscape Workshops High-level of current state/future state landscape, integrations 12 two-hr workshops by system types Functional and technical system owners Key Business Structures Straw Model CoA Design Understand current Chart of Accts Reporting Requirements Examples of FDM used by peers CoA straw model Done as part of BPMM workshops See participants for BPMM workshops Functionality Gap Analysis Fit/Gap of Workday solution Fit/Gap of bus. Reqts. of Workday solution proposed workarounds needed to fill critical business gaps High-level analysis of Oracle Cloud 2 two-hr vetting sessions See above Business Case/ Impl. Roadmap Total Cost of Ownership / Roadmap Recomm. deployment scenario Costs to implement/ongoing costs Quantitative & qualitative benefits Exec. Officers + above 3

Phase 1 – Assessment and Planning High-Level Timeline Note: Tentative; not confirmed Source: Deloitte Aug Sep Oct Nov Dec Jan Feb Project Launch Current State Review and Future State Vision Functional Gap Analysis Implementation Roadmap Business Case Change Management 4

Phase 1 Decisions/Evaluations (for Steering Committee) Business Process Maturity Model Where UVA currently sits on the maturity continuum for each business function Given that, to what degree should we expect to transform each business function? Business Case / Total Cost of Ownership (TCO) / Implementation Roadmap Key Assumptions Recommended Organizational Scope Recommended Functional Scope Technology Landscape Proposed Timeline of Implementation Project Recommended implementation deployment 5

Decisions for New Executive Leadership Team (Informed by Phase 1 Deliverables) Technology Investment Invest in new enterprise financial system(s)? If yes, which solution/configuration? How do we mitigate fit-gap? If not, do we modify existing systems/make smaller investments? Business Process Transformation Organizational/Functional Scope Service delivery model Invest in major transformation? Implement smaller, incremental change? 6

Engagement/Outreach Business Process Workshops Finance Jive Community UVAFinance blog, Finance Matters podcast VP Finance website and Finance Strategic Transformation website (coming soon) Email: FinanceTransformation@Virginia.edu 7

Next Steps Project launch: preliminary project planning (2-3 weeks in duration) Provide consultants with background on processes, policies, procedures, systems/current IT landscape Establish Phase 1 governance model Draft project charter Plan for Phase 1 change management activities Schedule Kick-off Project Kick-off 8