1. Streamlining the Journal Process June 21, 2006 Presentation to Financial Unit Liaisons

2. 1 Background What’s wrong with the current process? –The paper-based Journal Process (Batch Entry) often results in problems with Accuracy Timeliness Efficiency

3. 2 Objective What do we want to achieve? –Timely and accurate journal entries, by streamlining the process while maintaining appropriate internal controls Better leverage technology Eliminate redundancies

4. 3 Progress What’s been accomplished so far? –Piloted electronic journal entry (online and upload) processes Phase I – Primarily Auxiliary Units (5) Phase II – Primarily Academic/Admin Units (7) Survey – to ascertain level of process accuracy, efficiency and customer satisfaction –Analyzed existing journal utilization, processing options and looked for opportunities for improvement

5. 4 Moving Forward Expanded Upload Journal Processing –Now available to all campus users Enhanced upload template with instructions and contact information; eliminated Service Level Agreements New web-based user self-service for JE number assignment –Upload process benefits Can cross all funds and department groups No journal line restrictions More timely, accurate and efficient processing –Eliminates redundancies of third party outsource for batch entry –Estimate that complete* journal uploads will be posted to the general ledger in approximately two - four business days * - For timely processing, it is important that journals have complete chartfield combinations, line descriptions and supporting documentation (when applicable); which includes support required to meet all applicable cost transfer guidelines. Visit the FinOps website at http://www.finops.umich.edu/GenInfo/jeguide.htm for journal guidelines. Your FinOps coordinator is available if you need clarification or assistance.http://www.finops.umich.edu/GenInfo/jeguide.htm

6. 5 Logistics Communication and Support –During the month of May communications began to flow to campus –The upload template is available on the FinOps homepage ( www.finops.umich.edu ) at the following URL www.finops.umich.edu/FormsReports/Forms/jrnlload.xlt www.finops.umich.edu www.finops.umich.edu/FormsReports/Forms/jrnlload.xlt –Upload journal numbers can be obtained at the following website (requesters must be able to authenticate with their Kerberos password) https://www.finops.umich.edu/apps/uploads/ https://www.finops.umich.edu/apps/uploads/ –FinOps staff are available for customized departmental training –Units may be contacted about participating based on their current JE utilization

7. 6 Future Enhancements ●Improve upload usability We are considering a single JE template with upload functionality that looks similar to the existing paper based form We would like feedback from users on the current journal layout and format ●Consider other opportunities to improve processing Additional system validations for journals Workflow system for electronic routing and approval of journals

8. 7 Next Steps Address Overall Volume of Journal Entries –Approximately 900,000 lines of journal transactions are processed on an annual basis –Significant journal activity could signal opportunities to improve underlying business processes, training or internal controls

9. 8 Journal Processing Trends

10. 9 Pilot JE User Feedback Satisfaction with entering journals –Online 84% Satisfied/Very Satisfied –Upload 84% Satisfied/Very Satisfied User friendliness –Online 75% User Friendly/Very User Friendly –Upload 73% User Friendly/Very User Friendly Recommend to others –Online 77% Probably/Definitely Yes –Upload 85% Probably/Definitely Yes Improved Process Efficiency –Online 75% To a Good Extent/Very Much –Upload 84% To a Good Extent/Very Much Improved Data Accuracy –Online 73% To a Good Extent/Very Much –Upload 85% To a Good Extent/Very Much

11. 10 Questions?

12. 11 Attachments