1. Building a Kuali Chart of Accounts Jim Corkill, University of California, Santa Barbara Mark McGurk, University of Arizona Kim Yeoh, Cornell University

2. Agenda I.Key KFS Chart Features II.Laying the Groundwork III.Experiences and Challenges - Cornell University - UC Santa Barbara - University of Arizona

3. Kuali Financial System (KFS) Key Chart Features

4. KFS Chart Features Chart –Ability to have multiple charts –Charts are hierarchical Organization –Hierarchical –Facilitates reporting, workflow, controls Account/Sub-Account –Report up through organizations –Allows for further division of an account for internal reporting purposes

5. Organization Hierarchy with Accounts/Sub-Accounts University Program A Sub-Acct 1Sub-Acct 2 Account College Campus Account Program B Department University of California System 4801 Cost Share 111480 Black Hole Research Astrophysics Physics - Unit 3102 College of Science - 3100 University of California at Santa Barbara (UCSB)

6. KFS Chart Features Extended Attributes Can be used throughout Chart (e.g. Orgs, Accounts, Object Codes, etc.) What is it? –Additional field to “tag” chart objects with a unique identifier How to use –Use to “link” chart objects that are not naturally linked for reporting purposes – i.e. tool for pre-existing reporting requirements that don't fit neatly into hierarchical structure Example –Interdepartmental activities, link unrelated organizational units (cross functional teams, etc.), inter-disciplinary activities

7. Laying the Groundwork

8. General questions to consider: Just because it can be changed, should it? –What currently works, what doesn’t? –Implications for historical comparisons What are the reporting requirements? –Institutional financial reporting (external) –Summarized management reporting –Departmental detail –Ad hoc reporting

9. Laying the Groundwork Chart questions to consider: Does the institution need multiple charts? –For separate campuses –For auxiliary operations –For high level institutional financial reporting Will interfaced systems be able to accommodate multiple charts? Will it add confusion for users?

10. Laying the Groundwork Organization questions to consider: What should be the basis for the organizational hierarchy? –Lines of authority –Lines of business (disciplines, auxiliaries, etc.) –Financial reporting requirements How should the org structure relate to other administrative systems (e.g. HR)? Do orgs need to be grouped in a way other than hierarchical? How narrowly should org attributes (e.g. type) be defined?

11. Laying the Groundwork Account questions to consider: Should existing account structure be preserved or should entirely new structure be created? If new structure is used, can a map from old to new be created? Should fund/sub-fund attribute perpetuate fund accounting or represent a different way of grouping accounts? Should accounts be self-balancing, or should the institution use the “flexible claim on cash” option? How should sub-accounts be used?

12. Experiences and Challenges

13. Cornell University Cornell Environment Decentralized campus High level and broad support Varying receptiveness to change “Homegrown” system on mainframe Third financial system discussed

14. Cornell University Campus Involvement Demos of FIS (Feb – Apr ’05) KFS Release 1 Demos (Apr – Aug ’06) Local COA team (Jun ’05 – present) Kuali Days Kuali Implementation Team (Jan ’07 – present) –meetings with campus financial leaders –inventory of current business processes, reports, and interfaces (both central and campus)

15. Cornell University Cornell Chart of Accounts Team Membership –main KFS implementation group –central financial affairs staff (accounting, reporting, business analysts) –college/unit financial officers –budget and planning office staff Objectives –compare and contrast the IU/KFS chart structure at a conceptual level with Cornell’s –determine how the chart fields will be used to meet the university’s financial management and reporting needs –identify any gaps that exist

16. Cornell University Challenges Thinking “out of the box” –organizational hierarchies –self-balancing accounts vs. flexible offsets (assets and liabilities as object codes, not accounts) Making sense of current attributes Standardization vs. flexibility What rules should be established?

17. Cornell University Challenges Meeting reporting requirements –external vs. management reporting –FASB vs. GASB –faculty reporting –“funding year” reporting Coming to consensus!

18. University of California, Santa Barbara Challenges Where do we start? Solutions Created a UC Kuali Team, consisting of campus project managers, programmers, and controllers, with a shared vision of a UC Kuali

19. University of California, Santa Barbara Challenges Will Kuali work for us? Our biggest concern is the Chart of Accounts. Solutions Document our current Chart of Accounts Perform a Gap-Fit analysis with our COA and Kuali –Hired rSmart for the analysis

20. University of California, Santa Barbara Challenge Our Current Chart of Accounts utilizes a data element called “fund” (different than the Kuali “fund”), which identifies funding source and used by our Office of the President for reporting Solution Use the “Extended Attribute” in Kuali to accommodate “fund” information

21. University of California, Santa Barbara Challenge Each campus has a different Chart of Accounts, yet we rollup as one for financial reporting Solution Kuali enables multiple charts, which would allows for consolidated reporting.

22. University of California, Santa Barbara Next Steps Evaluate Results of the Gap-Fit Analysis –Options for Implementation –Potential for Data Migration Reviewing one module at a time with the help of campus SMEs and consultants when needed

23. University of Arizona Starting the Conversation Meet with campus business leaders Demo application or mocks Include campus in KFS SME teams Develop implementation plan with Central IT group/Administration involvement

24. University of Arizona 3 Data Conversion Points Accounts –FRS – Current many to one vs. self balancing Balance sheet general ledger (assets, liabilities, FB) Sub-ledgers for income & expense (many accounts) Vendor File/Purchasing Fixed Assets

25. University of Arizona Conversion of Object Codes Determined we need 2 Charts –Institutional Chart AHSC Main Campus –Management or Reporting Chart Roll-up for Financial Reporting

26. University of Arizona Unit Hierarchy Utilize Budget Roll-up Structure –(e.g. Executive – College – Dept.) Allow creation of sub-units within –(e.g. Dept. – Sub. Dept.) Prohibit creation of roll-up of units at this time –(e.g. Dept. – Dept. – Dept. = Unit)

27. Kuali Financial Systems Questions?