1. FIS/Kuali Demonstration: October 11-12, 2005 Kuali Project Update 10/11/05

2. FIS/Kuali Demonstration: October 11-12, 2005 http://Kualiproject.orghttp://Kualiproject.org. Kuali is a community/open source initiative to create a comprehensive financial information system for higher education Designed for any Carnegie Class institution, from Community College to R1 institutions –Indiana University is 8 campuses 2 R1 campuses 6 smaller campuses Has had significant review by NACUBO colleagues

3. FIS/Kuali Demonstration: October 11-12, 2005 What is it all about? New System Design ? Indiana Financial System Refactor The Technology Limited Enhancements Defined by Functional Council

4. FIS/Kuali Demonstration: October 11-12, 2005 Why are we doing this? FIS functionality 10 more years. FIS technology base shaky –12 year old technology –Vendor support ???? –Loss of Control ?

5. FIS/Kuali Demonstration: October 11-12, 2005 IU’s Options ? Retooling the FIS alone –Time –Ongoing support and costs Buy PSFT Financials? Partner with like minded colleagues –Share costs –Get enhancements faster Others have looked at the FIS –Mostly positive. –Several are investing in Kuali. For reasons ranging from cost to control of destiny, collaborative efforts such as this are becoming more common among our peer institutions.

6. FIS/Kuali Demonstration: October 11-12, 2005 Project Costs $7.4 m total project cost 72+ person-year effort Core partners: –$500,000  $2,000,000, depending on Size and Carnegie Class >$4,400,000 from Founding Partners –Cash or tendered personnel resources March, 2005: $2.5m grant from the Andrew W. Mellon Foundation

7. FIS/Kuali Demonstration: October 11-12, 2005 Founding Partners Currently have Six Institutional Founding Partners NACUBO is also a Founding Partner r*smart is a Founding Partner

8. FIS/Kuali Demonstration: October 11-12, 2005 What are we actually going to do? Client Server J2EE platform –Modular architecture Work will be done by Founding Partners and other approved investing partners At IU, it will be delivered through OneStart/u-Portal Kuali will work with the Onestart Workflow© engine.

9. FIS/Kuali Demonstration: October 11-12, 2005 Timeline Project calls for 27 months to do the development. –Phase I: Baseline system in 12 months –Phase II: Full System within 27 months –Phase III and beyond: TBD Enhancements not done in initial project

10. FIS/Kuali Demonstration: October 11-12, 2005 Governance Kuali Board –Voting member from each Institution –NACUBO and r-smart –Chair from Indiana –Extended Board Project Manager –Developers from each Institution Functional Council –Members from each Institution –NACUBO and r-smart –Subcommittees

11. FIS/Kuali Demonstration: October 11-12, 2005 Accomplishments to date Several Functional Council Retreats –Refine requirements –Prioritize enhancements in scope Several Technical Council Retreats –Define overall technical architecture J2EE, SOA, XML –Create Kuali Nervous System Tech Team has created the first working transactions Purchasing/AP modules already in production Core Partners have tendered their pledged resources

12. FIS/Kuali Demonstration: October 11-12, 2005 Next Steps Continued Functional Council meetings –SME’s working with development teams Six development teams working on specific functionality Kuali Research Administration

13. FIS/Kuali Demonstration: October 11-12, 2005 Baseline system Chart of Accounts General Ledger Basic accounting e-Docs Routing and Approval Basic reports Additional Modules Labor Distribution Grants Management (pre and post award) Capital Assets Accounts Receivable Disbursement Voucher FDRS (Decision Support)* Purchasing Accounts Payable Budget Construction Endowment IU infrastructure elements that are also available OneStart Workflow© (XML) Portal Framework* IUIE (Decision Support)* *Optional Proposed Kuali Scope

14. FIS/Kuali Demonstration: October 11-12, 2005 Questions ??

15. FIS/Kuali Demonstration: October 11-12, 2005 Chart of Accounts Bill Overman

16. FIS/Kuali Demonstration: October 11-12, 2005 What is the Chart of Accounts? COA is the set of tables that define the codes and coding structures within the Financial Information System (FIS) –Multiple Charts of Accounts Organizations Accounts Sub-Accounts Object Codes Sub-Object Codes Levels Consolidations

17. FIS/Kuali Demonstration: October 11-12, 2005 Chart of Accounts at IU IU COA UA COABL COA BA COA IN COA IA COA Regional COAs

18. FIS/Kuali Demonstration: October 11-12, 2005 The Fundamentals External Financial Reporting –IU Chart – Consolidated Level Internal Financial Reporting –Responsibility Center Management –Departmental Management –Detail by Account Internal Control –Reporting Hierarchy –Routing Budget Construction

19. FIS/Kuali Demonstration: October 11-12, 2005 Benefits of Multiple Charts Ability to handle complex reporting structures Auxiliary Charts are not required to contain object codes unrelated to their activities (i.e. Tuition, State Appropriations) Campus charts are not required to contain object codes unrelated to their activities (i.e. Cost of Goods Sold, Inventory, etc.) Increased Information and Knowledge at the Campus Level Easy Access to Campus Level or Auxiliary Reporting.

20. FIS/Kuali Demonstration: October 11-12, 2005 Organizations Organization –Example: FMOP (FMS Administration) –Collection of accounts or a collection of other organizations. –An organization may have any of the following attributes Chart of Accounts, Responsibility Center, Campus, Department, Subunit HRMS Can include all fund groups Up to four alphanumeric characters (eg. FMOP)

21. FIS/Kuali Demonstration: October 11-12, 2005 Accounts Account Number –Specific identifier for a pool of funds assigned to a specific organization for a specific function. Example: 19-126-10 (FMS Administration) Reports to org FMOP –All accounts can be self-balancing –Attributes of an account include the following: Chart Organization Function Restricted/Unrestricted Fund Group specific

22. FIS/Kuali Demonstration: October 11-12, 2005 Sub-Accounts Sub-accounts achieve further division of an account for internal reporting purposes. Example: custr (FMS Customer Service) Reports to 19-126-10 Attributes of a sub-account include the following: –Account specific –Assumes all attributes of the account it reports to –Cost Share Functionality –Reporting Code for separate linkages to units

23. FIS/Kuali Demonstration: October 11-12, 2005 Object Codes Object Codes are detailed identifiers for Income, Expense, Asset, Liability and Fund Balances. –Chart specific –Four numeric digits –Example: BL 1504 “Animal Care Income” IN 1504 “Card Services Income”

24. FIS/Kuali Demonstration: October 11-12, 2005 Sub-object Codes Sub-object codes achieve further division of an object code for internal reporting purposes Attributes of a sub-object include the following: –Specific to an account and object code –Assumes all attributes of the object code it reports to Example: In State Travel Object Code 6000 –Faculty Instate Travel, Fac –Staff Instate Travel, Sta –Student Instate Travel, Stu

25. FIS/Kuali Demonstration: October 11-12, 2005 Levels and Consolidations All object codes report to a higher Level code and each Level code reports to a higher Consolidation code –Approximately 80 Levels (although no limit) –Approximately 20 Consolidations (no limit) –Example: Object Code 2403 “Exempt Staff Salary Savings” Level PRSA “Professional Salaries” Consolidation CMPN “Compensation”

26. FIS/Kuali Demonstration: October 11-12, 2005 Hierarchy of COA at IU - Example Highest Organization Level Organization that is also a Campus Organization that is also an RC Organization Account Sub Account VPPF UA IU FMS FMOPFMSY 19126101912631 aucapcustr

27. FIS/Kuali Demonstration: October 11-12, 2005 Management Control and COA How can I use the chart for organizational management? –Flexibility in Reporting –Flexibility in making Routing decisions –Hierarchy for Responsibility Management –Facilitates internal controls by assigning account managers, supervisors and delegates. –Tool for measuring the performance of a subunit

28. FIS/Kuali Demonstration: October 11-12, 2005 Management Control and COA What tools do I have to achieve my reporting objectives? –With the Approval of the Chart Manager Organizations Accounts Object codes –Sub-accounts (budgeting / spending) –Sub-object codes (budgeting / spending) –FDRS Reports –FIS

29. FIS/Kuali Demonstration: October 11-12, 2005 Conclusions about the COA Questions?

30. FIS/Kuali Demonstration: October 11-12, 2005 Kuali Conference 10/11/2005 General Ledger Processing

31. FIS/Kuali Demonstration: October 11-12, 2005 Agenda Topics Four Basic Tables: Labor Ledger Detail & Balance – General Ledger Detail & Balance - views exist that pull together chart and ledger data for reporting (pre- joined) Nightly Batch Components and the Affect of System Reference Tables & Chart of Accounts Documents Touch on Data Inquiries and Reports (Kuali & FDRS/IUIE) Month-End Processing Year-End Processing

32. FIS/Kuali Demonstration: October 11-12, 2005 General Ledger Detail FIELD NAMEFORMATBUSINESS NAME UNIV_FISCAL_YRNUMBER(4)FISCAL YEAR FIN_COA_CDVARCHAR2(2)CHART ACCOUNT_NBRVARCHAR2(7)ACCOUNT NUMBER SUB_ACCT_NBRVARCHAR2(5)SUB ACCOUNT FIN_OBJECT_CDVARCHAR2(4)OBJECT CODE FIN_SUB_OBJ_CDVARCHAR2(3)SUB OBJECT FIN_BALANCE_TYP_CDVARCHAR2(2)BALANCE TYPE FIN_OBJ_TYP_CDVARCHAR2(2)OBJECT TYPE UNIV_FISCAL_PRD_CDVARCHAR2(2)FISCAL PERIOD FDOC_TYP_CDVARCHAR2(4)DOCUMENT TYPE FS_ORIGIN_CDVARCHAR2(2)ORIGIN CODE FDOC_NBRVARCHAR2(9)DOCUMENT NUMBER TRN_ENTR_SEQ_NBRNUMBER(5)SEQUENCE NUMBER TRN_LDGR_ENTR_DESCVARCHAR2(40) TRANSACTION DESCRIPTION

33. FIS/Kuali Demonstration: October 11-12, 2005 General Ledger Detail Cont. FIELD NAMEFORMATBUSINESS NAME TRN_LDGR_ENTR_AMT NUMBER(19,2)TRANSACTION AMOUNT TRN_DEBIT_CRDT_CDVARCHAR2(1)DEBIT CREDIT CODE TRANSACTION_DTDATETRANSACTION DATE ORG_DOC_NBRVARCHAR2(10)ORG DOCUMENT NUMBER PROJECT_CDVARCHAR2(10)PROJECT CODE ORG_REFERENCE_IDVARCHAR2(8)ORG REFERENCE ID FDOC_REF_TYP_CDVARCHAR2(4)REFERENCE DOCUMENT TYPE FS_REF_ORIGIN_CDVARCHAR2(2)REFERENCE ORIGIN CODE FDOC_REF_NBRVARCHAR2(9)REFERENCE DOCUMENT NUMBER FDOC_REVERSAL_DTDATEREVERSAL DATE TRN_ENCUM_UPDT_CDVARCHAR2(1)ENCUMBRANCE UPDATE CODE TRN_POST_DT DATEPOST DATE TIMESTAMPDATETIMESTAMP

34. FIS/Kuali Demonstration: October 11-12, 2005 General Ledger Balance FIELD NAMEFORMATBUSINESS NAME UNIV_FISCAL_YRNUMBER(4)FISCAL YEAR FIN_COA_CDVARCHAR2(2)CHART ACCOUNT_NBRVARCHAR2(7)ACCOUNT NUMBER SUB_ACCT_NBRVARCHAR2(5)SUB ACCOUNT FIN_OBJECT_CDVARCHAR2(4)OBJECT CODE FIN_SUB_OBJ_CDVARCHAR2(3)SUB OBJECT FIN_BALANCE_TYP_CDVARCHAR2(2)BALANCE TYPE FIN_OBJ_TYP_CDVARCHAR2(2)OBJECT TYPE ACLN_ANNL_BAL_AMTNUMBER(19,2)ANNUAL BALANCE FIN_BEG_BAL_LN_AMTNUMBER(19,2)FINANCIAL BEGINNING BALANCE CONTR_GR_BB_AC_AMTNUMBER(19,2)C&G BEGINNING BALANCE

35. FIS/Kuali Demonstration: October 11-12, 2005 General Ledger Balance Cont. FIELD NAMEFORMATBUSINESS NAME MO1_ACCT_LN_AMTNUMBER(19,2)MONTH 1 AMOUNT (JULY) MO2_ACCT_LN_AMTNUMBER(19,2)MONTH 2 AMOUNT (AUGUST) MO3_ACCT_LN_AMTNUMBER(19,2)MONTH 3 AMOUNT (SEPTEMBER) MO4_ACCT_LN_AMTNUMBER(19,2)MONTH 4 AMOUNT (OCTOBER) MO5_ACCT_LN_AMTNUMBER(19,2)MONTH 5 AMOUNT (NOVEMBER) MO6_ACCT_LN_AMT NUMBER(19,2)MONTH 6 AMOUNT (DECEMBER) MO7_ACCT_LN_AMTNUMBER(19,2)MONTH 7 AMOUNT (JANUARY) MO8_ACCT_LN_AMT NUMBER(19,2)MONTH 8 AMOUNT (FEBRUARY) MO9_ACCT_LN_AMT NUMBER(19,2)MONTH 9 AMOUNT (MARCH) MO10_ACCT_LN_AMTNUMBER(19,2)MONTH 10 AMOUNT (APRIL) MO11_ACCT_LN_AMTNUMBER(19,2)MONTH 11 AMOUNT (MAY) MO12_ACCT_LN_AMTNUMBER(19,2)MONTH 12 AMOUNT (JUNE) MO13_ACCT_LN_AMTNUMBER(19,2)MONTH 13 AMOUNT (CLOSING) TIMESTAMPDATETIMESTAMP

36. FIS/Kuali Demonstration: October 11-12, 2005 Accounting Cycle Chart of accounts updates (COA documents and reference tables) occur in Kuali upon approval and are copied out to decision support environments Sufficient funds checking is optional for Kuali accounts (calculates budget – actual - encumbrance - pending variances by object, level, consolidation, and account or perform cash checking) Two pending entry tables for Kuali documents – labor ledger and general ledger Labor ledger contains detail salary, wage, and benefits by person, position, type of pay, and pay period Entries processed by the labor poster are aggregated and feed the general ledger

37. FIS/Kuali Demonstration: October 11-12, 2005 Accounting Cycle Continued Collection of accounting feeds for GL processing –Entries from labor poster (LL Kuali documents – i.e. salary & benefit transfers, payroll closings, and payroll accruals) –GL Kuali documents (CR, DI, DV, etc…) –Entries from other university systems (EPIC, SIS, travel, etc…) –Entries from external feeds (ID billings, bank transmissions)

38. FIS/Kuali Demonstration: October 11-12, 2005 Accounting Cycle Continued All of the collected data then pass through the following processes –Pre-Scrubber and Scrubber –De-Merge Process –General Ledger Poster –Automated Reversal Entries –ICR Calculation –ICR Poster

39. FIS/Kuali Demonstration: October 11-12, 2005 Scrubber Edits are performed to validate data and identify any accounting transactions with errors (all non free-form fields are checked) Expired accounts are rolled to continuation accounts (C&G accounts have a 3 month extension after the expiration date) The following entries are generated by the Scrubber –Generated offsets by document type and balance type – ensures balanced accounting entries –Plant fund capitalization entries by organization –Plant fund indebtedness entries by organization –Cost share transfers –Cost share encumbrances

40. FIS/Kuali Demonstration: October 11-12, 2005 De-Merge, Poster, and Reversals The De-Merge process pulls all records on a document that has been found to have errors - corrections are then made via the Kuali General Ledger Error Correction (GLCP) document The Poster applies the scrubbed accounting and system generated entries to the general ledger tables (GL detail, GL balance, account balance, sufficient funds balance, and open encumbrances) The Automated Reversal process systematically reverses documents that were created using the reversal date feature

41. FIS/Kuali Demonstration: October 11-12, 2005 Indirect Cost and Decision Support Indirect Cost Recovery (ICR) is charged to eligible accounts and revenue is recorded in the associated income stream account, usually a GF Responsibility Center (RC) account – sometimes a portion of ICR revenue is siphoned off to a central administration account for university projects The accounting and system generated entries are then passed on to the decision support environments (data direct, pre-defined queries, ad hoc reporting)

42. FIS/Kuali Demonstration: October 11-12, 2005 Account Inquiry Main

43. FIS/Kuali Demonstration: October 11-12, 2005 Account Inquiry Budget – Sufficient Funds

44. FIS/Kuali Demonstration: October 11-12, 2005 Account Inquiry Responsibility – Continuation Accounts

45. FIS/Kuali Demonstration: October 11-12, 2005 Offset Definition Reference Table

46. FIS/Kuali Demonstration: October 11-12, 2005 Org Maintenance - Capitalization

47. FIS/Kuali Demonstration: October 11-12, 2005 Account Inquiry C&G - ICR

48. FIS/Kuali Demonstration: October 11-12, 2005 Sub Accounts Inquiry - Cost Share

49. FIS/Kuali Demonstration: October 11-12, 2005 Administrative Error Correction (GLCP)

50. FIS/Kuali Demonstration: October 11-12, 2005 Kuali GL Enhancements Flexible Claim on Cash – allows posting of cash entries to a separate “offset account” and the generation of bank specific cash transactions to institutionally defined accounts and object codes Budget Year – a new attribute of the general ledger and e-docs that will allow tracking of financial transactions by budget year for a given funding source Indirect Cost Recovery Encumbrances – will assist project investigators (PI’s) in forecasting all expenses for Contract and Grant accounts

51. FIS/Kuali Demonstration: October 11-12, 2005 Pause from PowerPoint Presentation Balance inquiry screens with drill down Example of GL entries in Kuali

52. FIS/Kuali Demonstration: October 11-12, 2005 Month-End Processing Majority of time spent on legacy systems and external feeds –RC assessments –Student health insurance and student fees –Bi-weekly payroll accruals –C&G letter of credit cash transfers Legacy/external feeds are balanced, pre- edited, and accepted into accounting batch cycle Kuali documents process as usual (must have completed routing and approval process)

53. FIS/Kuali Demonstration: October 11-12, 2005 Last Working Day of the Month Generation of monthly Standard Reports: –Monthly Operating Detail Listing –Monthly Operating Statement –C&G Monthly Operating Detail Listing –C&G Monthly Operating Statement –Labor Operating Detail Listing –Interdepartmental Billings –Expired Accounts Listing –RC/Campus Budget Report –RC/Campus Budget Summary Report –ICR Income/Expense –Fund Statements & General Ledger

54. FIS/Kuali Demonstration: October 11-12, 2005 1st Working Day of the Month Place monthly Standard Reports on FDRS/IUIE Account View (electronic dynamic packet generation) Electronic notification of reports to all fiscal officers, account managers, supervisors, and selected delegates (primary and ERD) Remote printing and distribution of selected report packets (RDM) – ending December 2005

55. FIS/Kuali Demonstration: October 11-12, 2005 Account View Main

56. FIS/Kuali Demonstration: October 11-12, 2005 Account View Report Selection

57. FIS/Kuali Demonstration: October 11-12, 2005 Account View – Operating Statement

58. FIS/Kuali Demonstration: October 11-12, 2005 Account View – Transaction Listing

59. FIS/Kuali Demonstration: October 11-12, 2005 Pre Year-End Closing –Creation of new fiscal year’s chart of accounts (Genesis) –Budget construction –Generation of pre-closing business manager reports – general fund org reversion, negative/positive cash, outstanding encumbrances, prior year June activity, general ledger, fund statements, preliminary balance sheet –Update Kuali org reversion reference table –Posting of accrued vacation & sick liability

60. FIS/Kuali Demonstration: October 11-12, 2005 Pre Year-end Closing Cont. –Monitoring of system reference tables Accounting periods (open/close, assign dates) System reference table (beginning balance flag) Payroll dates table Benefit calculation rates –Cancellation of selected unapproved Kuali documents after June 30 batch cycle –Activation of year-end documents (for posting to periods 12 & 13) –Snapshots of account and org tables for year-end reporting

61. FIS/Kuali Demonstration: October 11-12, 2005 Org Reversion Table

62. FIS/Kuali Demonstration: October 11-12, 2005 Accounting Periods Table

63. FIS/Kuali Demonstration: October 11-12, 2005 Systems Options Table

64. FIS/Kuali Demonstration: October 11-12, 2005 Document Type Table

65. FIS/Kuali Demonstration: October 11-12, 2005 First Closing (July 6) Normal month-end closing items including the first day standard reports First closing business manager reports Accounting transactions occur in two fiscal years –Normal Kuali documents post in the period approved Prior to June 30 they post to the previous fiscal year After June 30 they post to the new fiscal year –Year-end documents post to the prior fiscal year Through first closing they post to period 12 After first closing through final closing they post to period 13

66. FIS/Kuali Demonstration: October 11-12, 2005 Second Closing (July 14) The time between first and second closing is primarily reserved for campuses to make adjustments Second closing business manager reports including a listing of transactions since first closing

67. FIS/Kuali Demonstration: October 11-12, 2005 Final Closing (July 25) Campus closing meetings are scheduled prior to final close Final closing first and second day reports Final closing business manager reports

68. FIS/Kuali Demonstration: October 11-12, 2005 Year-End Balances and Carry Forwards (July 26 – 29) Org reversions and carry forwards Encumbrance forwards Close out current fiscal year nominal activity (balance type NB) New fiscal year balance forwards Create C&G beginning labor balances Special cash consolidations for auxiliary and service units

69. FIS/Kuali Demonstration: October 11-12, 2005 QUESTIONS?