Financial Information System FIS http laser k-state edu

Financial Information System (FIS) http: //laser. k-state. edu More than FRS

Financial Information System (FIS) Presented by Kansas State University Controller’s Office

FIS Training Coordinator Ron Semarge

Session Objectives v. To provide you a beginning towards understanding v. The basic structure of our upcoming Financial Information System v. The basic structure of the new Chart of Accounts and how it functions within FIS v. Changes in methodology of inputs to the FIS v. Primary outputs (forms, reports)

Welcome to FIS Training • General Ledger – Chart of Accounts – Budget – Payroll – CASHNet (receipts) and e. Forms (expenditures) – Reports • Purchasing • Fixed Assets • Projects / Awards (Grants) • Future Training

System Complexity • FIS is far more complex, but more dynamic, than the current FRS system. • Transactions flow through multiple modules • User training is critical and will be required to fully utilize the system

Background Current hardware based on IBM mainframe – Old technology – Expensive to maintain (Maintenance and repair parts)

Background New System is Oracle Based - Very Robust, Modular System - Web based access – Enhanced ability to encumber funds - Enhanced capabilities and future growth – Enhanced ad-hoc reporting with access to University Wide data

Project Leaders for FIS Jennifer Gehrt – Director - Laser Project Bryan Kraus – FIS Functional Lead Mark Grinter – FIS Technical Lead

And many more are involved

When are we doing this? Being done in several phases

Timeframe? • Two Phases • Phase 1 – three internal portions – Discovery and Analysis (Jan 03 – Aug 04) – Testing and Analysis (Aug 04 – Mar 05) – Fine tune and Final Setup (Mar 05 – Jun 05)

Timeframe? • Phase I Objectives – Focus on critical business processes involving basic input and reporting – Exploration of modules for functionality and applicability – Develop and test internal processes and procedures – Develop training and methodology for conducting same

Timeframe? • Implementation – 1 July 2005 – Budget and Payroll a bit earlier

Timeframe? • Phase II Objectives – Continue to enhance input / query and reporting capabilities – Further fine-tuning of GL – Further exploration of Projects and Purchasing modules – To provide departments with greater ability to utilize FIS for their unique financial accounting needs

Timeframe? • Maintenance / Enhancement – Long term – Incremental enhancements to hardware and software

FRS Module Overview v. Two modules v. Accounts Payable (AP) v. Financial Accounting v. Interfaces with local programs v. PARS (Labor Distribution) v. Central Invoicing (Accounts Receivable) v. Fixed Assets

FRS Module Overview v. Other software interfaces with FRS v CASHNet – Receipts v HRIS (People. Soft) Payroll v Budgets (People. Soft) v BRS v e. Forms

FIS Module Overview v. Different Modules for different financial functions v. Projects / Awards (Grants) v. General Ledger (GL) v. Accounts Payable (AP) v. Accounts Receivable (AR) v. Labor Distribution (LD) v. Purchasing (Purch) v. Fixed Assets (FA)

FIS System Overview v. Other software interfaces with FIS Modules v CASHNet – Receipts v HRIS (People. Soft) Payroll v Budgets (People. Soft) v BRS v e. Forms

FIS Modules • General Ledger (GL) – core module of the system – all reporting (except grants) is based on information contained in the GL • Projects/Grants Accounting – Provides activity-based accounting with additional functionality to meet grant accounting needs – Initial focus will be Grant accounting • Accounts Payable (AP) – Processor for vendor and inter-departmental payments

FIS Modules • Accounts Receivable (AR) – Initial focus will be Grants Billing • Labor Distribution (LD) – Detailed payroll transactions will be interfaced to FIS through this module – Includes functionality for Effort Reporting (Grants) • Fixed Assets (FA) – Manage the University’s capital asset records

Changes to Account String

Current FRS Structure • 6 character accounts (General and Sub-Ledger) • Numerous attributes associated with account (done behind the scenes) • Starting and ending digits carry various meanings • Example • 267842 • Beginning 2 – indicates State appropriation as opposed to Restricted Fee • Ending 2 – indicates Unclassified Salary

Upcoming FIS Account Structure Multi-Segment account structure

Project • Program, project or activity • Links to the Awards/Projects module • Future item: Task – allows for further breakdown of a project into task and subtask (initial implementation will have this default to 01 or 02. )

Project Segment • Project is 10 Characters • 1 st character notes Grant/Non-Grant/Matching • 2 -4 contains Organization (Department) Alpha • 5 -10 characters are alphanumeric, determined by the individual department • Examples (Spaces for instructional use only) • N UCO 481003 • G UCO 00 MISC

Project Segment • The Controller’s Office staff is working with colleges to establish Project numbers for conversion from FRS to FIS • An e. Forms document will be created for departments to use to request a new Project

Source (Index) • A funding source designated by the state • Ex. General use, Restricted fees, Sponsored Research Overhead (SRO), etc.

Organization (Department) • Core departments within the University

Object Code (Object) • Assets, liabilities, fund balance, revenue, expense, budget • 1 st character defines type • E (Expense) A (Assets) • R (Revenue) L (Liabilities) • B (Budget) F (Fund Balance)

Benefit of Multi-Segment Structure • Multi-segment GL account structure will provide enhanced reporting and access to information

Budget v. Budgets will continue to interface from the budget system v. Budgets will interface for these funds: v. State General Fund v. General Fees v. Federal Appropriations v. Interest Fund v. Allocated Sponsor Research Overhead funds v. Institutional Support Fee funds

Budget v. Account code combination will interface from Budget v. Project v. Fund Source (index) v. Organization (budget department) v. Object (budget pools)

Budget v. Revenue budget will be posted to allocated GL accounts (project/source (index)/organization) equivalent to central expense budget allocations v. Revenue (cash) will be posted to allocated GL accounts equivalent to central expense budget allocations

Budget v. Restricted Use budgets are not required and therefore will not interface from the budget system v Cash, rather than budget, will be used to determine available balances v Users may choose to submit budgets for restricted use accounts and non-allocated budget accounts. v. Allows for budget view of data

Budget v. There will be minimum change to the budget system v. On-line (budget system) data entry panel (Feb 05) v. Replace 6 -digit FRS account with 10 -digit Project segment v. PCA will default from the Project segment v. Source (index) will need to be entered and the fund will default from index v. Organization will default from the budget department v. Changes effective with budget first proof (Feb-Mar 05)

Funding Line screen in the KSU Budget System NOAAFACSAL NOBO 381273 Project field added FRS # will appear for one year

Funding Line screen in the KSU Budget System Fund index (source) will PCA will default from project be entered Fund will default from index

Budget v. The following budget pools will be used in the General Ledger Module v. B 0100 – Revenue budget v. B 1000 – Classified salaries and benefits v. B 1100 – Unclassified salaries and benefits v. B 1200 – Student salaries and benefits v. B 2000 – Other Operating Expenditures v. Revenue and expenditures will roll to the appropriate pool to calculate budget balances

Budget v. Main Campus General Use (GU) unclassified fringe benefits will continue to be pooled v. Budget will be transferred to the appropriate project each pay period to equal unclassified benefit expense (no change from current process)

Budget v. Budget Transfers v. Transfers will be processed utilizing e. Forms input v. Future item: Transfers will be completed on-line as workflow is developed in FIS

Budget v. Year-End v. Follow current processes v. General use budget pools will be zeroed at year-end v. Budget Office will transfer any carry forward funds the following July as directed by the unit head v. Allocated SRO and institutional support fee fund balances will carry forward

• “Budget” report reflects budget balance available

Budget Flow

Payroll Funding Interface v. Chart of accounts will continue to interface daily from FIS to HRIS – Updated at the beginning of the new fiscal year (no change from current process) – Updated daily from FIS to reflect changes (no change from current process)

HRIS Payroll Funding Levels v. Payroll funding within the HRIS system will remain at the department, position or position pool level (No change from current process)

HRIS Payroll Funding Pages Earnings – Deductions - Taxes • Minimum change to the HRIS funding distribution pages – Will occur mid - June 2005 (FY 06 payroll funding) – Replace FRS account # with Project • Award will default from project number – Enter fund source (same funding flexibility) – Organization will default from position

Grants - award will default from project Enter fund source Earnings Enter project/task # Enter fund source

HRIS Retroactive Funding Changes • In the future, process may become more automated

Interface from HRIS to FIS • Daily updates contain detailed transaction information (position data, job codes, department codes, etc. ). • Detailed payroll expenses at the employee level – Labor distribution – Project Accounting • Summarized for the General Ledger

HRIS Payroll Flow

User Inputs to System • CASHNet – Receipts and expenditure of funds (money) • e. Forms – Payables and other users as present

CASHNet ® • Web-Based Commercial Application • With exception of Grants/Award, departments will use to receipt monies • Grants/Awards will continue to be handled by Sponsored Projects (SPA)

CASHNet ® • Minor changes in actual deposit screen to reflect new FIS Account structure

Individual fields for each element. While still being developed and tested with the vendor, the order and length of several fields will be adjusted to match FIS structure.

CASHNet® Flow

10 Minute Break

e. Forms Purchase Order, Payables and Budget • No change in use from current procedures – Web-based –. pdf format (Acrobat reader still required to render final forms and to print forms) • Will use e. ID for authentication while still continuing to use Position Number for document access (i. e. Documents are tied to position, not the person)

e. Forms Purchase Order, Payables and Budget Document Header

e. Forms Purchase Order, Payables and Budget • Becoming two (2) distinct forms – Purchase Order – Agency Payment Voucher – Other minimal changes in the heading section

e. Forms Purchase Order, Payables and Budget Example of Payment Voucher Header

e. Forms Purchase Order, Payables and Budget • Other minor changes in heading – – Document numbering will be restarted Agency and Div. No. boxes are being removed ‘APO No. ’ renamed to ‘User No. ’ ‘Tran Date’ renamed to ‘Remit date’

e. Forms Purchase Order, Payables and Budget Vendor and Purchaser Information Section

e. Forms Purchase Order, Payables and Budget • Minor changes – Vendor Number being changed to provide improved personal security – Account numbers to bring in-line with FIS

e. Forms Purchase Order, Payables and Budget • There are no changes to this portion for ‘Purchase Orders’ • For Payment Vouchers this section is being considered for use as a ‘Remittance data’ field

e. Forms Purchase Order, Payables and Budget Funding Information Section

e. Forms Purchase Order, Payables and Budget • FIS required changes here – For non-grant projects, enter a Source, for grant projects, enter an Award number – Completion of this portion drives the autofill described in the next slide – Invoice number – This column was removed – information will be captured from the description

e. Forms Purchase Order, Payables and Budget • Minor changes Autofilled – Still in design – Autofill capabilities remain as done today – Change in column order, heading titles and removal of unused or redundant columns

e. Forms Purchase Order, Payables and Budget Description section has no format changes *Future Item: The ‘Date & Inv No. ’ will be captured in e. Forms for use in future enhancements.

e. Forms Purchase Order, Payables and Budget • Signatures and Footnote Section – Minor modifications to textual comments to reflect new Tax Exempt Certificate number and other minor textual changes – Comments will be applicable to the specific form

e. Forms Flow

Non-Grant Reports

• View of assets and liabilities • “Account Balance” reflects balance available

• View of revenues and expenses for the fiscal year

• Similar layout to FRS month end transaction detail

• Similar view to FRS open commitment listing

Purchasing v. A new Purchase Order form is being developed in e. Forms vto differentiate from Payables document v to reflect the new multi-segment FIS account structure. v. New capability to commit funds in the system regardless of bid requirements v. Year-end encumbrance process (DA-118) will be handled through e. Forms (using multi-segment account)

Purchasing v. Purchasing Policies as reflected in PPM 6310 will not change v. Procedures concerning BPC, Real Estate Leases, Contract Cover sheets, etc. remain the same. v. Purchase Requisitions will continue to be submitted following current procedures using e. Forms

Fixed Assets • Changes – The physical appearance of the reports will change – Departments will have on-line inquiry access to their fixed asset records

Fixed Assets • Policies will remain the same – PPM 6510, Property Inventory, still applies • Disposition, transfer and gifting of property procedures are unchanged • Capitalization thresholds are unchanged • Departmental inventory records for items not meeting the University’s capitalization threshold are still required

Fixed Assets • Procedures will remain the same – Monthly inventory reports will continue to be sent to departments showing the capital expenditures made during the month – Departments will need to continue to supply the additional information regarding the asset purchased, sign and return the report to the Controller’s Office – Property number system will continue to be available for departments to assign their own property numbers

Fixed Assets • Procedures (Cont’d) – Continue to centrally update the Fixed Asset system and return a report to the department of the month’s additions. – Departments will need to continue to do an annual physical inventory and certification as of December 31.

Grants

Grants Accounting Module • This module is dependent on the Projects Module for much of the functionality - Each award established in the grants module will also have at least one project number assigned - Some awards may have multiple project numbers - i. e. awards that have multiple subawards Grants 1

Grants Accounting Module • Grant budgets are established through the Projects module, not in the General Ledger module – The total award amount (budget) may be funded via one project number, or multiple project numbers Grants 2

Grants Accounting Module • All award/project accounts will be set up in the system by the Sponsored Projects Accounting (SPA) office – Six-digit Award numbers will be assigned by SPA – Colleges/departments may determine the last sixdigits of the 10 -digit project number. For initial conversion, current FRS numbers will be used for the last six digits – When applicable, additional project numbers for subawards, etc. will be determined by SPA. Grants 3

Grants Accounting Module • Examples of Project/Award combinations: – Initial conversion: • – Current FRS 530706 will consist of both a Project Number and an Award Number – Project number: GOPY 530706 » last six digits are the current FRS account number – Award number: 000001 A crosswalk from FRS numbers to FIS Project/ Award numbers will be provided for users

Grants Accounting Module • Examples of Project/Award combinations: – After conversion: • Project number: GOPYSREB 01 – last six digits are determined by the department or college. Here they include a combination of letters (from the P. I. ’s name) and numbers to create a unique number • Award number: 000002 – Project numbers and award numbers cannot be reused once the award has ended and is closed

Grants Accounting Module • Basic business processes for invoicing and for preparing financial reports will remain essentially the same from the college/department perspective. • Custom reports and views are being developed for grants accounting similar to those shown for non-grant accounts. • Users may also use the Award Status Inquiry option available in FIS for viewing the award online Grants 4

Grants Accounting Module • The Award Status Inquiry view allows for easy viewing of various award details

Grants Accounting Module The Award Inquiry button takes you to a view of basic award information such as titles, dates, sponsor name

Grants Accounting Module • Both the Project Funding button and the Funding Summary button will take you to a view of project number(s) and funding information

Grants Accounting Module Project Funding: An award with multiple project numbers: Grants 9

Grants Accounting Module Funding Summary of the same award: Grants 10

Grants Accounting Module Funding Summary: an award with one project number Grants 11

• Start, End, and Close Dates are used by the system to control what expenditures may be posted to the award. – Expenditures dated after the End Date (or before the Start Date) will not post to the award – NO expenditures will post to the award after the Close Date. To comply with federal guidelines, this date should be 90 days after the end date. Grants 6

Grants Accounting Module • The Resource Status button allows you to view budget details – The budget categories or “resources” are the same as those currently used in FRS Grants 12

Grants Accounting Module Resource Status for an award with one project number: Grants 13

Grants Accounting Module • The Actuals button allows you to view expenditures posted to the award • You can choose to limit the view by designating one or a combination of – A range of expenditure dates – An organization – An expenditure type Grants 14

Actuals for an award with one project number Grants 15

Grants Accounting Module • The Invoice Review button allows you to see a list of invoices sent to the sponsor. Details such as amount, sponsor name and bill-through date are available Grants 16

Grants Accounting Module An Invoice Lines button allows you to view the invoiced amounts by resource (budget pool) categories Grants 17

Grants Accounting Module Invoice lines by resource (budget pool): Grants 18

Training • Overview – January through February • Hands-On – March through June – Required prior to getting system access • Continual Training – Refresher, new employee – New functionality • On-Line Sign up via ITAC web site

Website and Email Addresses Laser Web Site: http: //laser. k-state. edu Newsletter: http: //laser. k-state. edu/newsletter/home. htm Email address for questions: laser@ksu. edu ITAC Web Site for Class Enrollment: http: //main. itac. ksu. edu/training/calendar. htm

Now switching gears

Dealing with Change

What might the elements of the parable (metaphor) represent? The maze? Dealing with Change The cheese? The characters?

What attitudes or beliefs about change did each of the characters hold? Dealing with Change

Which of the four characters do you identify with? Why? HEM SCURRY HAW Dealing with Change SNIFF

Are people typically proactive or reactive to change? Dealing with Change

Do you feel that you can adapt to these latest changes? What do you need to be more comfortable? Dealing with Change

“Most change—whether you realize it at the time or not—leads to something better. ” -Spencer Johnson, M. D. , author Dealing with Change