1. Journal Entry Processing Project Update June 20 th, 2007 Financial UL Presentation

2. 2 The Paper Process Day 1 Day 2 Day 3Day 4 Day 5 Day 6Day 7 Paper Journals Approval to Post Key Entry by 3 rd party processor Ready to Post Errors  Keypunch  Chartfield Validation  Combo-Edit  Budget Check Final Post Hard- Copy Journal Entry Hard-Copy Support Hard- Copy Journal Entry Hard-Copy Support Department Procedure Central Accounting

3. 3 Objectives Identify the most timely and accurate processing methods for journal entries Enhance internal controls –Eliminate unnecessary journal activity –Reduce journal volume –Strengthen journal support and accountability

4. 4 Progress to Date Piloted online and direct upload with selected users under Service Level Agreement (SLA) restrictions –No sponsored activity allowed –Could not cross into another department group Improved internal Service Unit Billing (SUB) process –Improved load method (from FTP to webpage loader) –Cleaned up inactive internal vendors –Categorized internal vendors as rebill or recharge units Offered option for users to shift from paper journal to electronic journal file (upload) submissions through Financial Operations

5. 5 The Upload Process Day 1 Day 2 Day 3Day 4 Day 5 Day 6Day 7 Electronic Transfer Electronic Support Approval to Post Upload Approved Journals Ready to Post Errors  Chartfield Validation  Combo-Edit  Budget Check Final Post Errors  Chartfield Validation  Combo-Edit  Budget Check Final Post Email to FinOps SFTP Transfer Hard- Copy Support Department Procedure Central Accounting

6. 6 Room for Improvement Utilizing system enhancements –Get journal entries into the general ledger even faster –Provide more information on the journals More collaboration between central administration and departments –Business process reviews –New training opportunities –Streamlined customer service contacts –Internal control review

7. 7 Next Steps Implement system enhancements  Additional combo-edit rules  New field to journal header for the uniqname of the contact (accountable) person  Longer journal header description field for uploads  Internal (FinOps) workflow functionality to expedite review of Sponsored Programs activity  Considering additional system requirements on Service Unit Billings invoicing Remove existing fund and department restrictions Reduce central up-front reviews and increase post-processing analysis Provide direct journal entry options to all units Assist departments with transitioning Improve our customer service model

8. 8 The Future Process Day 1 Day 2 Day 3Day 4 Day 5 Day 6Day 7 Auto-Approval to Post Electronic Support Approval to Post Ready to Post Errors  Combo-Edit  Budget Check Final Post Errors  Combo-Edit  Budget Check Final Post Ready to Post Errors  Combo-Edit  Budget Check Final Post Direct Entry Entry Methods:  Key Entry  Upload Data Files  Copy Existing Journals  User Defined Templates Errors Chartfield Validation Hard-Copy Support Department Procedure Central Accounting

9. 9 Anticipated Roll-Out Timeline Today through August 2007 Communicate project to University community Train existing online and upload users on system changes September 2007 New system changes available with phased roll-out October 2007 through January 2008 Evaluate direct online users’ experiences Begin training for new online and upload users January 2008 Evaluate timeline for discontinuing paper journals

10. 10 Department Action Steps Review journal business processes Consider implementation timing that works best for your unit –FinOps staff are available to consult with you and your unit prior to scheduling training and system access –Access is granted via M-1 form submittal, with training as a prerequisite Visit the website for project updates and to schedule training –Open training sessions for individuals –Group training sessions by school or department

11. 11 Questions

12. 12 Contact Us Douglas Hovey dhovey@umich.edu 764-3499 Debbie Talley dtalley@umich.edu 647-5564