1. Structure Overview

2. FundS Questions by Fund Group
Are there balance sheet reporting requirements?
Is this an organizational unit? If so, this should be a business area.
Do the funds meet the criteria
of a grant?
- If so, this should be a grant
- If not, a fund is required for
internal or external reporting
Fund Type
Starting Point
Projected Final
Restricted
9,666 30
Plant & Debt Service
2,345 24
Unrestricted 3
Endowment 89 2
Agency
586 1
Internal Services
6,107
Auxiliary
451
Total
19,274 62

3. Restricted Funds Fund Type Starting Point Projected Final Restricted
9,666 30
Plant & Debt Service
2,345 24
Unrestricted 3
Endowment 89 2
Agency
586 1
Internal Services
6,107
Auxiliary
451
Total
19,274 62
Area
Funding Source
Number of Funds
Agriculture
Federal Appropriations 10
State Line items 2
Student Loans
Perkins, DHHS, Direct/Plus, Stafford,
Purdue Student 6
Student Aid
SEOG/PELL and TEACH Grants 3
Work Study
Regular, Tutoring, Math Tutoring, Community Service 4
Gifts/Scholarships/Grants/PIP-C Allocation/ Restricted – Other
Cash 5

4. FundS Represent a particular funding source and restriction
Used to maintain accountability to the source
Subdivide balance sheet reporting
Can split all balance sheet G/L’s by fund
In future state, funds mostly consolidated by fund type
Internal Orders and WBSE’s will replace the use of multiple funds within a fund type
Balances/transactions for A/R, A/P, etc. will be reportable by IO/WBSE

5. Company Codes Separates Distinct Legal Entities
Current State: One company code (PUR) Future State: Multiple company does
PUR
PII
NewU
PUR: Purdue University
PII: Purdue International
PICO: Purdue Colombia
PIAF: Purdue Afghanistan
TBD: NewU
PICO
PIAF
7/1/2018: PII, PICO and PIAF will be implemented
“NewU” implementation TBD

6. Business Area
Within company codes, Business Areas divide the organization
Today, Business Area represents campus
West Lafayette, Fort Wayne, Northwest
Future State, represents
Organizations led by direct reports to the President, Provost, Treasurer, or EVPRP
And equivalent positions at PNW / PFW
And organizations which require a separate GAAP financial statement
E.g. WBAA, North Central Nursing Clinic

7. Business Area Business Areas will be grouped into segments
Two levels of segments will be used
First grouping: based on executive reporting
Segments for Provost, CFO, EVPRP and President
Second grouping: based on campus
Segments for West Lafayette, Fort Wayne, Northwest
May want to mention that this allows full financial reporting at the campus level. This is a hot topic at the Fort Wayne campus especially.

8. Business Area
Future State Example
Segment
Segment
Business Area

9. Cost Center Future State Represents units
To which multiple positions are assigned
1:1 with future state HR Departments (i.e. “org units”)
That are accountable for their annual revenue and expenditures
That can allocate revenues or make independent decisions about use for specific purposes and programs
Will not be used for tracking programs, projects, etc. that don’t function as organizational units

10. Cost Center Future State Three-level hierarchy
Level 1: “Department”
Level 2: “Sub-Department”
Level 3: “Program”
Cost Centers can be reassigned to different departments and business areas without changing numbers
Addresses many problems caused by reorgs
Will not maintain “smart-numbering” after implementation
No longer will be able to tell campus and major unit/college from looking at the cost center

11. Cost Center Structure Future State Example
Emphasize that level 3 and level 4 are going to exist as organizational units
Cost centers will be used forever
Relations with other cost objects

12. Internal Orders Used for detailed tracking within Cost Centers
Individual programs
E.g. Study Abroad, Digital Education programs
Individual gift/scholarship accounts
Can be assigned to the “Sub-Department” and “Program” level Cost Centers
Most transactions not associated with faculty or construction accounts will post to internal orders in the future state

13. Internal Orders Internal Order Types
Allow grouping for more detailed reporting
Internal Order Sub-Type/Funded Program Type
Categorizes accounts by detailed restrictions/ designations
Undergrad Scholarships, Graduate Scholarships, etc.
Will determine IO numbering
SIO’s will still not be available for use in conjunction with “RIO’s”

14. WBS Element (WBSE) Similar to an Internal Order
Allows for linkages to “projects”
Construction projects (C.X )
Faculty* members (F.XXXXXXXX.XX.XXX)
Each faculty member will have a project
Will be categorized by Funded Program Type
Also categorized by “node”
*Staff who receive allocations for their personal research/instruction/ engagement activities may also have projects

15. WBS Element (WBSE) Simplified Faculty Allocations Structure
(next slide is bigger – if you want to get closer)
Faculty can see all accounts in one place
Allows departments to identify and segregate resources allocated to faculty for their individual activities

16. Data Clean Up & Conversions

17. Master Data Conversion
Convert 60,000+ valid cost strings to new account structure
Define functional area, public/non public, and available/unavailable for each item
Define type of account and associated faculty member
Giving units all active cost centers/internal orders/funds as of 8/31/17
Prepopulating as much data as possible
Focusing on identifying faculty accounts
Asking users to evaluate
What am I using this account for?
Do I need to track this in this way?
Can I combine this with other accounts?

18. Master Data Conversion Timeline
SAP 101 Sessions
Train on system functionality & changes to master data
September 11 – September 29
Pilot Group Training
Test Training materials
Develop SMEs to assist with full conversion
September 27
Pilot Group Conversion
Select group of departments perform conversion mapping
September 27 – October 11
SAP 101 – 5 Sessions
Full Group Training – week of October 16th
Conversion Mappings due to project team 11/17

19. Pilot Structure
Participating units were given 10 days to review and map cost strings
11 departments selected from all campuses
7 PWL, 2 PFW, 2 PNW
Mixture of academic, academic administration, academic support, administrative and auxiliary units
Representative of a variety of units
But not necessarily representative proportionally
Data is not handled consistently across departments currently, so it is difficult to determine where we need to focus efforts for additional simplification and consolidation; this exercise will give us the visibility to do that

20. Account Mapping Pilot Includes: Student Success
Engineering Administration
Rec & Wellness
Vice President for HR
Chemistry
Forestry
Political Science
Chancellor – Purdue Northwest
College of Nursing – Purdue Northwest
Athletics – Fort Wayne
Music Department – Fort Wayne

21. OVERALL CONVERSION METRICS
*Units were not instructed to consolidate scholarships pending decisions on overall university management of scholarship selections

22. OVERALL CHANGE
Pilot departments currently are responsible for 3650 cost strings
Excluding sponsored programs
45% of cost strings were eliminated in the first conversion iteration
16 funds
81 cost centers
IO’s WBSE’s

23. Data Conversion & Clean Up
Data Object
Activity Needed
Business Lead
Goal
Business Partner
Identify active vendors, remove duplicates, assign proper roles, fill in all required fields
Jennifer Littlefield/Judy Ewbank/Julie Smith/Edie Doland/Nicholas Urcuioli
Scrub 100% of data by 12/31/17
Faculty Allocations
Map all faculty accounts to new structure; close any unneeded accounts
TBD
Map all Faculty accounts by 10/31/17
Funds/Cost Centers/Internal Orders
Map all accounts to new framework; close any unneeded accounts
Finalize cost center structure & departmental funding structures 11/15/17
Grants
Close all inactive grants
100% of inactive grants closed by 12/31/17
Accounts Receivable
Scrub all open accounts receivable balances and close inactive accounts
Edie Doland
100% of accounts cleansed by 12/31/17
Accounts Payable
Close Open PO line items, Open GR/IR, Open purchase requisitions, pending Concur transactions, outstanding checks, and prior year checks
Janessa Martin/Judy Ewbank

24. Third Party Integration

25. Third Party Integration
Master Data Roadshow
Additional Follow Up Meetings
Student Systems (All three campuses)
ECSI
Paymetric/Biller Direct
Ariba
Concur
Coeus

26. Other Updates

27. Signature Delegation Update
A framework has been proposed for signature delegation
Background reviews with DFA, SPS, IA, Costing, Procurement, Accounting, BPR Team
Established minimum level of fiscal approval at $10K and revised current levels
Fiscal Approvals targeted directly to authorized level versus progressing through the delegation levels
Opportunities exist for simplification

28. Signature Delegation Update
Focused reviews over next 5 weeks
Ariba
Concur
S/4 HANA
Contract Management
Procurement
Outcome
Finalize scope & blueprint design for signature delegation work
Sessions lead by EPI-USE to determine scope of signature delegation work required.
Scoped work needs to be included into planning process.