OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Finance Network Meeting August 19, 2004

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 2 Agenda  Announcements  Organization Changes  Field Operations Goals for FY2005  Year End Close Planning  Lien Cleanup Project

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 3 Announcements – Field Operations  WN forecasts due to Budget Office today  BSD Picnic – after year end close  Field Operations supervision – no change from current setup  NIH proposal writing seminar-9/09  Resource Mgt Leadership Council being created – will meet 2 nd Thurs/Friday of each month

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 4 Announcements – Mary Clary  IRIS via Netscape  Training

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 5 Announcements – BLIS Update  Employee Lookup report added Public HR Reports – Employee Rosters Detailed info about a single employee Prompts for last name + status  Query output limit now rows  Project Expense Summary – additional detail effort reports  Team’s current emphasis is on Ops Scorecard and Janus data acquisition

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 6 Jeffrey A. Fernandez (Acting) Chief Financial Officer Linda Wuy Business Manager Deborah Smith CFO Support Vacant Controller’s Office Sallie Frainier Accounts Receivable David Hathaway General Accounting Barbara Gomez Disbursements Nancy Lee (Acting) Payroll Anne Moore (Acting) Budget Office Anne Moore Direct Budgeting Jim Dahlgard Indirect Budgeting Eloise Moffet (Interim CPO) Procurement Jeff Weiner Sponsored Projects Office Lauretta Corsair Financial Systems and Reporting Michele Mock Financial Policy & Training Chuck Axthelm Field Operations Manager Chris Watchmaker HR Center Head Office of the Chief Financial Officer Revised: August 16th, 2004

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 7 Field Operations Goals for FY2005  Integration and communication  Training and certification program  New employee orientation  Common core RA expectations  Staffing support & coordination  Improve budget management processes and clarify roles & responsibilities (eg, close; mgt rpt; WFO)

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Year End Close Planning

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 9 Year End Close - Agenda  Report from 3 teams focused on improving the schedule, accrual processes and communication  New AP query  Rules for opening/closing projects

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Close Schedule David Hathaway

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 11 The Close Schedule Team  Michele Blaha  Helena Cheng  Deb Connell  Nancy Fleischauer  Daisy Guerrero  David Hathaway  Angela Huang  Vickie Ng  Rich Nosek  Emmy Randol  Lisa Rebrovich  Julia Rudniski

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 12 FY 2004 Close Schedule - DRAFT

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 13 Key WFO Deadline  Friday, September 10 – Last day to send FY04 proposals, awards, and waiver requests to your SPO officer

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Year End Close Procurement Team Status Report Joy Lofdahl August 19, 2004

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 15 Team Objective  Discuss procedures  Implement improvements  Clarify ambiguities For procurement, receiving, accruals, pre- payments, certifications:

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 16 The Procurement Team  Joy Lofdahl  Cynthia Andrada  Jim Bettencourt  Maureen Cowger  Rick Larson  Bill Llewellyn  Michele Mock  Aurora Pecoraro filling in for Barbara Gomez  Denise Rasson  John Speros

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 17 What We Know - I  DPU cut-off is Sept. 23. Cost must hit card or won’t be in GL for September.  Electronic receipt for DPU purchase can be seen in Procard II IRIS reports.  If an order is picked up, it must be taken to receiving to generate a receipt accrual.  If it’s a service, an must be sent to receiving.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 18 What We Know - II  Too late for furniture orders now.  Manual accruals that will reduce liens should be sent to AP only.  Procurement and DPU will not be doing accruals. Will be left up to Division analysts’ discretion.  The lien-clean team will stop cleaning as of Aug.31.  New report – “outstanding certifications waiting for approval”

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 19 Items Outstanding  All cutoff dates need to be determined  Information on payroll accruals, esp. contract labor  Travel liens, manual accruals  Standardizing year-end manual accrual control #s for divisions. AP will put into description field.  Need a query giving details on receiving  Communication asked for: existing reports to help

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Year End Close Communication Team Status Report Chuck Axthelm

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 21 Team Objective  Ensure that participants in the year end fiscal close have access to timely, relevant and accurate information about the close process  Build on prior years’ successes  Implement improvements

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 22 The Communication Team  Chuck Axthelm  Mary Clary  David Hathaway  Rich Nosek  Armando Bautista  Lauretta Corsair  Michelle Blaha

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 23 Old Things That Still Work  Hotline more coordination with s  Twice daily s from Mary Clary Coordination with Communication Center  IRIS processing status Has already been implemented Parallel processing will be turned on

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 24 New Things to be Tried  Targeted close training and announcements  Expanded contact list - done  “Communication Center” - will meet to coordinate & plan close activities twice each day  More effective use of TABL  Web site with schedule, forms, policies, contacts, FAQ’s – accessible from IRIS and BLIS

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 25

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 26 Next Communication Steps  Coordinate content and timing of TABL items  Add content to web site  Develop, schedule, and deliver in- depth YE Close Training  Per Jim Dahlgard: Indirect budgets should be “on budget by budget”.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO New AP Query Aurora Pecoraro

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 28 Query Name  Query to show vouchers waiting for certification with certifier’s name:  INV_PENDING_CERT_BY_DIVISION

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 29 Sample Output

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Opening/Closing Projects During Year End Close Michelle Blaha

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 31 DOE Projects DOEOP, EQFAB, EQPUR, CONSTR…  Ongoing Projects No changes should be made to project status or tree structure between DAY 0 (expected to be 9/24/04) and the 1st day of new period (10/7/04)  New Projects No new projects will be opened by the Budget Office between noon on DAY 0-1 (expected to be 9/23/04) and the 1st day of the new period (10/7/04) New FY05 projects may be open in advance of the close with a 10/1 effective date, you must contact the Budget Office by 9/15/04

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 32 Other Project Types  OVERHEAD PROJECTS No new projects opened and no changes should be made to project status or tree structure between DAY 0 and the 1st day of the new period  WORK ORDERS and JOB ORDERS No new projects opened and no changes should be made to project status or tree structure between DAY 0 and the 1st day of the new period  WFO Projects: RMBNF, RMBOF, WFO, CRADA, DOEIN No FY04 WFO projects opened after 9/16/04 New FY05 WFO projects opened beginning 10/7/04

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 33 In Summary  Project Opening deadlines are in place to allow adjustments and allocations to process correctly and to manage workflow  We may be able to make emergency exceptions on a case by case basis, please contact the Budget Office  Any project with anticipated September costs should not be closed prior to DAY 0  Please note that closed projects may be opened by General Accounting in order to clear suspense  All dates are contingent upon a final General Accounting Year End schedule

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 34 Lien Clean Project Presentation to Financial Network 8/19/04 John Speros Jim Bettencourt

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 35 Background 5,000 POs were converted to PeopleSoft from former Oracle and Accounts Payable systems Causes of Lien Issues Cleanup Methodology

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 36 Lien Clean Statistics Closed & Journaled Kept Open Query 4 - Blanket Contracts $4.6M 69 in process $13.5M Query 5 - One-time POs $1.6M 18 in process 52 - $1M New PeopleSoft Blankets (67s) $.74M New PS One- Time POs (67s) $.17M

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 37 Status  Hammer solves problem immediately in most cases.  Doing last batch of journals should go into soft close tonight. Will see first cut when ledger opens after soft close.  Will review for right values and correct next week. Final journals go in at end of month  Mission accomplished. All POs closed that were not designated to stay open by Div or buyer. GL entries will be completed.

OFFICE OF THE CHIEF FINANCIAL OFFICER CFO 38 Going Forward  No mass fixes scheduled for future  Ongoing, PeopleSoft POs can be closed at any time. Send request to buyer (Jim will work).  Contract Closeout procedure is being developed in Procurement to de-obligate liens and close POs.  We’ll try to fix open converted POs with lien problems (close out old lines and get a new requisition for new lines)  For PS 8.8, we want to complete as many orders as possible.  Lien work will be ongoing