Office of the Chief Financial Officer Gwendolyn Sykes Chief Financial Officer November, 2007 © Yale University 2007

1 1 Operating David Soper Director Procurement John Mayes Assoc Vice President Controller Cary Scapillato Asst Vice Presiednt Chief Financial Officer Gwen Sykes Assoc Vice President and CFO Accounts Payable Purchasing Services Quality Assurance and Compliance Communications and Training Financial Reporting Investment Accounting Funds Jane Lee Director Office of OCFO Capital Debbi Hayden Director Special Projects Cynthia Nethercut Director Financial Support Systems General Accounting Payroll and Compensation Accounting Policies and Procedures Risk Management Tax Compliance and Planning Treasury Services Trusts and Estates Systems and Electronic Commerce Business Management Financial Systems University Auditing Sal Rubano and Doug Bebbington Directors Budgeting

© Yale University Key customers Office of CFO Internal Colleges Schools Departments Corporation Senior Leadership External Vendors Donors Markets

© Yale University OCFO goals  Enable the CFO and Business Operations workforce to provide world-class management and processes in support of the Schools, Departments and Units  Provide the Schools, Departments and Units with financial (Procurement, Budget, Accounting, Monitoring, Controls and Reporting) expertise, analysis, tools  Ensure that all stakeholders have a clear understanding and accurate assessment of how Yale uses resources to support its mission and vision

© Yale University What we provide  Expertise  Analysis  Tools and Systems

© Yale University OCFO Transformation  All parts of F&A will focus their efforts on…  Operating flawlessly;  Institutionalizing what we have already begun;  Paving the way to transform how Yale operates  OCFO is part of F&A transformation

© Yale University Financial Management Plan  Key initiatives make up OCFO’s Financial Management Plan for FY08  Initiative documentation includes outcomes, metrics, action steps, and accountability  OCFO staff meeting regularly to review status and progress of initiatives…to make sure we deliver for the University  Next step, planning for FY09-11

© Yale University Operating Flawlessly  Develop time metrics for all accounting process areas  Reduce A/P holds and bounces  Improve Internal Service Provider support  Setup Gift and Endowment Funds  Archive Oracle operational data  Develop and implement the audit plan  Ensure tax exempt bond compliance  Improve Form 990 and 990T filing process

© Yale University Institutionalizing  Improve Account Holder reporting package  Refine policies and procedures  Convert credit card infrastructure from legacy system  Implement new gift stewardship structure

© Yale University Paving the Way  Improve Internal Service Provider support  Develop requirements for operating and capital budget process and system  Support Bayer Acquisition from financial management  Standardize Chart of Accounts  Develop internal audit standard operating procedures

© Yale University Governance  Will establish Steering Committees for initiatives where  Decision-making is shared with people outside OCFO and/or  Project has both high visibility and a large impact on groups outside OCFO  Steering Committees include the key decision makers – project may also have multiple working groups or other vehicles to get input  Steering Committees and formal work groups will be set up with formal charter documents

© Yale University Future of Financial Management Decision Support Transaction Processing Fiscal controls Financial Reporting Change roles, responsibilities, authorities, and resource capacities Process / system integration / Internal controls System generated standard and ad hoc reports Integrated systems / standard processing Decision Support & Analysis Transaction Processing Fiscal controls Financial Reporting TODAY TOMORROW Driving Yale’s Financial Direction

© Yale University Budget Office overview  Project goals  Provide all stakeholders with timely, accurate, and useful budget and financial information by: Identifying ways to continue to enhance the Budget Office's current processes, procedures, systems to support the University’s goal of delivering world-class programs and services Providing expertise and tools to the University’s financial community throughout the University Budget Office Overview – Continuing our ongoing efforts to enhance the budgetary and financial support provided to the University.

© Yale University Why now?  Remarkable financial growth over the last decade  Manually intensive processes and procedures for developing and maintaining annual departmental budgets and long-term management plans  CFO direction – transformation of key financial processes:  Budgeting, accounting and transaction management, financial reporting and internal controls  Purpose of transformation; achieve better financial information and eliminate stove-piped functions  Integration of planning, budgeting, programming and reporting processes is a significant requirement for financial accountability

© Yale University Project approach  Phase I: Discover and Plan  Analyze the current environment Review, inventory, and validate policy and procedure documentation Identify gaps, issues, and areas for improvement  Identify and prioritize Budget Office improvements  Phase II: Design and Define  Develop process, policy and procedure improvements  Identify and define Budget Office process & system improvements  Develop training materials that detail the changes  Phase III: Implement New Processes  Implement policies and procedures to support the new processes  Communicate and train on the new processes

© Yale University Project timeline Oct-Nov Review and document current processes, policies, procedures, and tools Nov-Dec Document High-level Process Design enhancements Jan-Feb Detail-level Process Design Feb-Mar Develop new processes and procedures Mar-June Implement new policies, procedures and processes Ongoing feedback from Budget and Academic Communities Phase IIPhase IIIPhase I

© Yale University Project scope  The Budget Office Overview will focus on the following:  Documented and standardized policies and procedures  Documentation of current processes (“As-Is”) and recommendations for improved processes (‘To-Be”)  Identification of high-level system architecture and requirements to support To-Be operations  Budget Office Overview will not focus on the following:  An updated chart of accounts  Review of grants management  Assessment of staffing levels or capabilities

© Yale University Next steps  Here is what will happen next:  The Office of Budget and Planning will be working closely with the academic and budget communities on this effort.  Over the next couple of weeks, you may be contacted for an interview, focus group, or to request your participation in the Budget Office Overview Steering Committee.  Information about this project will be disseminated throughout the financial community on a regular basis.

© Yale University Stay tuned, stay in touch Gwen Sykes Chief Financial Officer