Enterprise Services Center Oracle E-Business Asset Lifecycle Management

Enterprise Services Center Oracle E-Business Asset Lifecycle Management: Maximize Your Return on Assets Simplify your work

Enterprise Services Center Jean Matzke Functional Specialist • 23 Years of experience with the US Department of Transportation • 18 Years of experience in Accounting Systems • 7 years of experience with Oracle Applications • Setup and conversion of 15 Asset Depreciation Books 2 Simplify your work

Enterprise Services Center Vision: We are a Center of Excellence providing the best integrated business services and solutions to the Federal Government. Mission: We deliver products and services that enable our customers to excel in managing the business of government. 3 Simplify your work

Software Evaluation Process • DOT evaluated software products that met the General Services Administration Financial management Supply Schedule from March through December of 1997. • Oracle provided DOT with an Operational Capabilities Demonstration in December 1997 4 Simplify your work

What We’ve Done • Implemented Delphi at 15 agencies of the Department of Transportation in less than 4 years ($59 billion budget; 60, 000 employees) • DOT is the first cabinet-level department to be on a JFMIP-certified financial management system, on a single instance of the software • ESC cross-services National Endowment for the Arts • 3, 500 people use the Delphi system • In February 2005, OMB designated ESC as one of four Financial Management Centers of Excellence (COE) 5 Simplify your work

Delphi Implementations at DOT 15 DOT Agencies Implemented in Less than 4 Years! 6 Simplify your work

Upgrade Schedule • December 1997 installed Oracle 10. 7 with a single Org • October 1999 upgraded to 11. 0. 3 Multi-Org • December 2001 upgraded to 11 i (11. 5. 3) • August 2002 upgraded to 11. 5. 6 • April 2003 Upgraded to 11. 5. 8 • May 2004 Upgraded to 11. 5. 9 • February 2006 scheduled to upgrade to 11. 5. 10 7 Simplify your work

Oracle Footprint - Environment • • • General Ledger Purchasing Accounts Payable Accounts Receivable Projects Fixed Assets • Federal Extensions • Web ADI • Daily Business Intelligence • Balanced Score Card • Budget Execution 8 Simplify your work

Where We Were • Legacy system tracked Assets at the General Ledger level only • No Asset detail information was recorded in the legacy system • Legacy System did not contain support for Asset General Ledger balances • Asset details were tracked in separate systems, or spreadsheets that did not interface with the Legacy system 9 Simplify your work

Where We Were (cont) • Asset details did not reconcile to the Legacy system, to support the General Ledger balances • Expensed Assets were not tracked in the Legacy system • Asset Depreciation was calculated manually, and recorded Quarterly to the General Ledger • The Legacy System was written up in Audit findings with Assets as a material weakness 10 Simplify your work

Setting up Oracle Assets • Analyzed the existing Asset tracking systems for common elements • Determined key information needed – Asset Category of 3 segments: Operating Admin. Account. Class – Location of 6 segments: OA Region. State. City. County. Facility/Site. Geographic Location Code – Asset Key of 3 segments: Book. Region. Organization 11 Simplify your work

Setting up Oracle Assets (cont) • Created Custom Responsibilities for segregation of duties • Created key flexfield security rules • Attached security rules to custom responsibilities • Setup Security by Book • Modified the Workflow to record Asset transactions using the Expense Account detail values for unqualified segments 12 Simplify your work

Conversion Lessons Learned • Get buy-in from the users – Document mapping of fields from legacy system • Ask whether assets had been amortized prior to conversion. – This will effect the monthly depreciation of the asset • Will Parent and Child Assets be converted? – Parents will need to be posted before Children can be added • Do retired assets need to be loaded at the time of conversion? – If conversion is mid-year this information may be needed for Financial Statements 13 Simplify your work

Conversion Lessons Learned (cont) • We used the following methods to load the assets converted: – Manually added assets using Quick, and Detailed additions – ADI spreadsheets uploaded to Mass Additions – And SQL loader uploaded to Mass Additions • Segregate Depreciating Assets from Non-Depreciating Assets – You don’t want to depreciate Land • Upload Capital and Expensed Assets separately 14 Simplify your work

Conversion Lessons Learned (cont) • Run reports to be used for reconciliation to General Ledger: – – – Journal Entry Reserve Ledger Report Cost Summary Report Reserve Summary Report Asset Additions Report Non-Depreciating Asset Report Summary I Trial Balance • Compare Costs by Balancing Segment and Account • Enter adjustments in General Ledger, for Asset accounts to reconcile with General Ledger account balances. – Asset Cost Accounts – Accumulated Depreciation Accounts – Depreciation Expense Accounts 15 Simplify your work

Monthend Process • On the last day of the month, we close Purchasing, and Accounts Payable. • Mass Additions Create is run to interface asset related invoices from Payables to Assets • We encourage all Mass Additions to be posted on a Monthly basis • The Projects module is closed next, Capital Projects with Assets placed in service are interfaced from Projects to Assets • Depreciation is run, and Asset journals are interfaced to General Ledger • Assets are reconciled to General Ledger 16 Simplify your work

Business Benefits • Capital, Expensed, and CIP assets are tracked in Oracle Assets • Purchased Assets interface from Oracle Accounts Payables daily • Capital Projects interface from Oracle Projects when placed in service • Depreciation is recorded on a monthly basis • Assets reconciles to the General Ledger • Assets details support General Ledger balances • We have received clean audit reports for the past 5 years 17 Simplify your work

Questions and Answers Q&A 18 Simplify your work

Contact Information Jean Matzke Enterprise Services Center 405 -954 -6926 Jean. Matzke@FAA. gov Visit Our Website at http: //www. esc. gov 19 Simplify your work