RAL 21 May 2009 SHARED SERVICE CENTRE PROJECT Paul Blackford - STFC

What is changing? Formation of the Shared Service Centre Formation of the Shared Service Centre Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) New software and enhanced functionality New software and enhanced functionality Benefit to STFC as finance will move to a single system Benefit to STFC as finance will move to a single system The new system includes project accounting and management functionality The new system includes project accounting and management functionality

General Ledger Accounts Receivable Accounts Payable Purchasing Human Resources Project Costing Project Invoice Committed Costs Expense Reports Invoice Costs Post Depreciation Post Cost Distribution Post Burden Absorption Post Receivables Post Vendor Expense Post Revenue Customers Fixed Assets Capital Costs POPO Asset Depreciation Suppliers Project Management Employees OTL Inventory Employees Timecards Issues Oracle Projects Suite Project Billing Organisations Miscellaneous / Usages Post Encumbrances Payroll Grants Cash

What is changing? Now Now Projects are currently recorded in the General Ledger as a project/analysis code Projects are currently recorded in the General Ledger as a project/analysis code Future Future SSC will deliver both General Ledger and Projects modules - with projects functionality SSC will deliver both General Ledger and Projects modules - with projects functionality Goods, services etc will be posted to tasks/projects which are mapped to General Ledger Goods, services etc will be posted to tasks/projects which are mapped to General Ledger

Oracle Projects will provide… Single system based project record and functionality Single system based project record and functionality Modules where primary purpose is project accounting/management – brings project management requirements together in one place Modules where primary purpose is project accounting/management – brings project management requirements together in one place Project accounting – including budgeting and forecasting Project accounting – including budgeting and forecasting Customer billing Customer billing Project costing – build bid budgets (later) Project costing – build bid budgets (later) Project management Project management Drill-down to transactions in General Ledger Drill-down to transactions in General Ledger

Oracle Projects will provide… Project reporting Project reporting Whole life Whole life Improved reporting – eg classifications Improved reporting – eg classifications New reporting tool New reporting tool MS Project interface MS Project interface Possibility of more functionality later – eg Resource Management Possibility of more functionality later – eg Resource Management

Constraints ‘Vanilla’ implementation – only business critical changes allowed initially ‘Vanilla’ implementation – only business critical changes allowed initially The functionally can be developed by SSC after ‘go live’ The functionally can be developed by SSC after ‘go live’ Some cross-council harmonisation but STFC policy/process/preferences maintained wherever possible Some cross-council harmonisation but STFC policy/process/preferences maintained wherever possible

STFC Output directorates/units - based in Projects Technology Technology Space Science & PPD Space Science & PPD Facilities Facilities Science Programmes Office Science Programmes Office Knowledge Exchange Knowledge Exchange Overhead directorates - based in GL Cost Centres Corporate Services Corporate Services Finance Finance Corporate Affairs Corporate Affairs Projects & activities

Project structure Projects Tasks General Ledger Cost Centres Tasks Corporate high level Projects suite

STFC Projects Group Representatives from each directorate and Project Managers Representatives from each directorate and Project Managers Reviewing user preferences which can in most cases be changed later Reviewing user preferences which can in most cases be changed later

Current activity Sample projects and tasks (work breakdown structure) tested to ensure they can be loaded Sample projects and tasks (work breakdown structure) tested to ensure they can be loaded Project data and task structures being gathered for all STFC projects - templates Project data and task structures being gathered for all STFC projects - templates Loaded onto Oracle for testing as part of migration Loaded onto Oracle for testing as part of migration Also work on policy/process, including budgeting and forecasting Also work on policy/process, including budgeting and forecasting

After ‘go-live’ STFC finance staff will set up projects and budgets STFC finance staff will set up projects and budgets Using pre-defined templates but some data can be changed later Using pre-defined templates but some data can be changed later Project managers will set up task structures and input forecasts Project managers will set up task structures and input forecasts

Oracle Time & Labour time recording Takes pay costs from GL to Projects Suite based on time worked on a project or activity Takes pay costs from GL to Projects Suite based on time worked on a project or activity Central overheads will also be recorded against project/activities as management information - burdening Central overheads will also be recorded against project/activities as management information - burdening Also some usage of facilities/services to be charged to projects, eg MNT Centre Also some usage of facilities/services to be charged to projects, eg MNT Centre

Oracle Time & Labour time recording Standard pay rates by grade Standard pay rates by grade Hours not percentages Hours not percentages Pay will be recorded as: Pay will be recorded as: Productive time Productive time Unproductive time (eg Annual Leave) Unproductive time (eg Annual Leave) Paid overtime Paid overtime

Benefits summary Single STFC finance system using latest Oracle software – single authoritative database Single STFC finance system using latest Oracle software – single authoritative database ERP allowing linkage between modules/systems ERP allowing linkage between modules/systems Brings together project accounting and management functionality in one place Brings together project accounting and management functionality in one place Although ‘vanilla solution’ we will get projects functionality Although ‘vanilla solution’ we will get projects functionality Opportunity to align STFC financial policy & processes Opportunity to align STFC financial policy & processes Powerful reporting tools Powerful reporting tools

Questions Questions This presentation will be made available later This presentation will be made available later