OFFICE OF THE CHIEF FINANCIAL OFFICER CFO

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO CFO Highlights Accounts Receivable Sallie Frainier Finance Network April 22, 2005

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Accounts Receivable Mission  Accounts Receivable is responsible for all invoicing, collecting, cash application, account reconciliation and other accounting requirements related to Work for Others Awards (WFO).  WFO represents approximately 25% of total Laboratory funding. This number is expected to grow.  Recent Changes – Staff Added Added strength to the accounting and contract close out functions. Better able to comply with increased accounting requirements by the DOE, federal agencies, and UC.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Accounts Receivable Policies  AR Guiding Policies Department of Energy (DOE) Accounting Handbook, Chapter 8, Receivables.  Policy Changes New DOE Collections Requirements require invoices unpaid at 120 days referred to DOE/Treasury, exceptions are repayment agreements. UC Performance Measures on account reconciliations in place.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Monthly Invoice Process  Costs are entered by Divisions to WFO Projects. Day two of the monthly close, the Project Costing to Billing function runs and picks up all the costs charged to the project. Monthly, approximately 500 invoices and statements are generated. Of these, approximately 80 are sent to DOE via flat file to be entered into the federal interagency payment system (IPAC).

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Types of Sponsors Invoiced  Work for Other Federal Agencies.  Work for Other Non-Federal Agencies.  Cooperative Research and Development Agreements (CRADAs).  Work for Other DOE Integrated Contractors.  Other agencies such as National Institutes of Health are invoiced and make payment via their own electronic system.  AR also handles miscellaneous billing requests defined as those not related to WFO where an invoice is required.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Payments & Inquiries Invoice and Advance Payments are submitted to AR by wire transfer or check.  Sometimes AR receives inquiries from Sponsors regarding costs on the invoice. At this point, we must refer the question to you, the Division.  This is because as an accounting department we cannot comment on the reasons or appropriateness of individual costs.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Organization Chart & Location Controller’s Office Accounts Receivable Located in Bldg 937 (2120 University Avenue, corner of University and Shattuck), 4 th Floor, in Berkeley, CA.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Controller’s Office Jeffrey A. Fernandez Chief Financial Officer Controller Vacant Sallie Frainier Manager Accounts Receivable David Hathaway Manager General Accounting Paula Meo Manager Payroll Barbara Gomez Manager Disbursements (Accounts Payable) Linda Brown Administrator

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Accounts Receivable Vacant Controller Kimmy Cheung, Ops Accountant Kathleen English, Recons Grace Huang, Contract Close-Out Mira Jamnadas, Recons Judy Lee, Cash Aps Gyozo (Victor) Lorincz, Billing Shirley Tanaka, Collections Sallie Frainier Manager

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Staffing Trends

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Recent Achievements/Highlights Added accounting staff. Instituted to facilitate quick turnaround time on questions and coordinate Reconciled all accounts and acted upon audit recommendations. Instituted procedures to contact sponsors and divisions earlier in the payment cycle in order to reduce delinquencies. Prepared and submitted policies including Misc. Invoices. Resource analysts given access to Aging Report. Resource analysts given ability to reprint invoices. AR Website developed.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO FMS/BAR  The PeopleSoft Billing and Accounts Receivable system (BAR) will be enhanced/improved after the general FMS 8.8 upgrade.  The goal is accurate accounting, streamlined accounting, and utilization of PeopleSoft functionality.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Challenges & Complexities  The department must adhere to complex accounting regulations by various federal agencies and the DOE. These requirements have driven customizations in our system which sometimes limit streamlining.  For example, new DOE Standard Accounting Reporting System (STARS) may add complexities to account reconciliations.  AR continues to address legacy accounting issues.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Migration & Management  Planned system enhancements, and recently implemented business processes, will allow us to continue resolving legacy issues.  There is a light at the end of our tunnel!

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Other Question Period