1. FI$Cal Change Discussion Guide Project Costing April 2016

2. Project Costing Overview FI$Cal: Transparency. Accuracy. Integrity.2 April 2016 Create Projects Create Project Budgets Collect, Distribute & Price Costs Project Capitalization Fund Distribution Expenses General Ledger Accounts Payables Billing Status Billing Create Projects Grants & Contracts Encumbrances ePro/ Purchasing Capital Assets Asset Management Project Processor Departmental Transactional System Project/ Grants status report Project Financial Reports Billing and Revenue Report Commitment Control Budgets Labor Distribution Expenditures Project information Billing Details

3. FI$Cal: Transparency. Accuracy. Integrity.3 April 2016 Process Overview Costs are collected from:  Commitment Control – Budget  Grants - Budget  Purchasing – Encumbrance/Committed Costs  Accounts Payable – Actual Expenditures and Commitment reversals  General Ledger – Expenses and/or Revenue Journals  Labor Distribution – Direct Charged Labor Hours and Labor Cost  Customer Contracts – Amount Based Billing and Revenue  Billing – Billing Adjustments Project Costing (PC) is a cost collection and processing tool that acts as a data warehouse PC is required for use if your Department has Capital Outlay projects or uses Federal Funds (0890). In addition, PC can be optionally used for Budget Act Reimbursement fund source Projects are directly linked to Grant Awards (State receiving funds) to collect associated expenditures and facilitate billing/drawdown and Customer Contracts Project Costing

4. FI$Cal: Transparency. Accuracy. Integrity.4 April 2016 Process OverviewKey Impacts Integration with Grants Management Integration with Customer Contracts Process Facilities & Admin Automated billing through Customer Contracts Automated Revenue Recognition (accounting entries) through PC and CA Automated updates from Billing for manual billing adjustments made to Project related invoices (BAJ Transaction) Interface from CA to PC for fixed amount based billing and revenue amounts Integration with Labor Distribution for daily detailed timesheets Enhanced reporting options Project Costing Heavy integration between Project Costing (PC), Customer Contracts (CA), Grants Management, and Billing modules  PC Collects, Processes, and Prices Costs (Expenditures)  PC Produces Billable rows to be sent to Billing to create invoices  CA contains the Customer Agreement and Billing Terms  Project/Activity is linked to a Customer Contract  CA “releases” the billable rows from PC into the Billing interface  CA recognizes revenue on the billable rows from PC

5. FI$Cal: Transparency. Accuracy. Integrity.5 April 2016 Department-Specific Impacts and Notes As we transition to FI$Cal roles and responsibilities will change as follows:  [ROLE] – [CHANGE IN ROLE RESPONSIBILITIES] Department business processes around Project Costing will change as follows:  [ENTER CHANGE IN BUSINESS PROCESS] Increased communication and integration between the following business areas will be needed:  [ENTER AREA 1 & AREA 2] – [ENTER ACTIVITIY THAT MUST BE COMPLETED TOGETHER] Project Costing

6. FI$Cal: Transparency. Accuracy. Integrity.6 April 2016 Process OverviewKey Impacts The Create and Maintain Project process covers all activities related to Project and Activity This includes the following sub- processes:  Create Project  Create Activity  Create Project Team Standardized project reporting capability across departments through consistency and use of common system configured fields Statewide reporting for emergencies Project Costing Create and Maintain Project

7. FI$Cal: Transparency. Accuracy. Integrity.7 April 2016 Department-Specific Impacts and Notes As we transition to FI$Cal roles and responsibilities will change as follows:  [ROLE] – [CHANGE IN ROLE RESPONSIBILITIES] Department business processes around a Project will change as follows:  [ENTER CHANGE IN BUSINESS PROCESS] Increased communication and integration between the following business areas will be needed:  [ENTER AREA 1 & AREA 2] – [ENTER ACTIVITIY THAT MUST BE COMPLETED TOGETHER] Create and Maintain Project Project Costing

8. FI$Cal: Transparency. Accuracy. Integrity.8 April 2016 Process OverviewKey Impacts The Collect, Distribute, and Price Project Cost process covers all activities related to project transactions This includes the following sub- processes:  Collect Costs from other modules  Fund Distribution  Project Accounting  Project Costing Pricing Funds distribution functionality allows source and target rules to be defined, producing new accounting distributions that will be sent to General Ledger Project Costing Collect, Distribute, and Price Project Cost

9. FI$Cal: Transparency. Accuracy. Integrity.9 April 2016 Department-Specific Impacts and Notes As we transition to FI$Cal roles and responsibilities will change as follows:  [ROLE] – [CHANGE IN ROLE RESPONSIBILITIES] Department business processes around Project cost will change as follows:  [ENTER CHANGE IN BUSINESS PROCESS] Increased communication and integration between the following business areas will be needed:  [ENTER AREA 1 & AREA 2] – [ENTER ACTIVITIY THAT MUST BE COMPLETED TOGETHER] Collect, Distribute, and Price Project Cost Project Costing

10. FI$Cal: Transparency. Accuracy. Integrity.10 April 2016 Process OverviewKey Impacts The Project Capitalization process covers the activities related to capitalizing expenditures identified as applicable to be capitalized from Project Costing to the Asset Management (AM) Module This includes the following sub- processes:  Define Asset  Relate Transaction to Defined Asset  Send the Asset to the AM Module Integration between PC and AM allows for automated tracking of WIP in projects, and automated interfacing of assets to AM when the asset is ready to be capitalized Project Costing Process Project Capitalization

11. FI$Cal: Transparency. Accuracy. Integrity.11 April 2016 Department-Specific Impacts and Notes As we transition to FI$Cal roles and responsibilities will change as follows:  [ROLE] – [CHANGE IN ROLE RESPONSIBILITIES] Department business processes around Project Capitalization will change as follows:  [ENTER CHANGE IN BUSINESS PROCESS] Increased communication and integration between the following business areas will be needed:  [ENTER AREA 1 & AREA 2] – [ENTER ACTIVITIY THAT MUST BE COMPLETED TOGETHER] Process Project Capitalization Project Costing

12. FI$Cal End-User Roles Project Costing FI$Cal: Transparency. Accuracy. Integrity.12 April 2016 FI$Cal End-User RoleDescription PC ProcessorEnd users who create and maintain projects. PC Job ProcessorEnd users who run batch processes for Project Costing, Customer Contracts Billing, Customer Contracts Revenue. PC MaintainerEnd users who maintain department configuration items for Project Costing (for example, e.g. source, category, and subcategory).

13. FI$Cal End-User Training Project Costing FI$Cal: Transparency. Accuracy. Integrity.13 April 2016 Course IDCourse NameDurationDelivery FS101*Introduction to FI$Cal 4 hours WBT FS102*FI$Cal Navigation 4 hours WBT PC101Introduction to FI$Cal Project Costing 4 hours ILT PC112Managing Projects in FI$Cal 4 hours WBT PC113Processing Project Costs 4 hours WBT PC114Analyzing Projects 4 hours WBT PC122Introduction to Customer Contracts 4 hours WBT PC123Customer Contract Management within PC 4 hours WBT PC222Introduction to Primavera 2 hours WBT *FS101 and FS102 are mandatory for all FI$Cal end users

14. FI$Cal: Transparency. Accuracy. Integrity.14 April 2016 For additional information on end-user training, visit the Training page of the FI$Cal Project website at : http://fiscal.ca.gov/training-academy/index.html FI$Cal End-User Training