Financials ERP

1. Financials ERP Transition Session: GL/Chart of Accounts September 27, 2011

2. Housekeeping • Please set cell phones and pagers to silent • Handouts • Note cards for questions • Sign-in sheets

3. Welcome and Introductions Presenters: • Anne Sullivan, Executive Vice President for Finance • Alice Gleason, Deputy Controller / FIN ERP Functional Lead • Ting Shi, CUMC Deputy Controller / GL Core • Joy Dolan, Change Management Lead

4. Welcome and Introductions Core Team Members: • Karen Burke, CUMC Dept Surgery • Kim Chadourne, Budget Office • Kevin Cook, SPF • Alice Gleason, Controller’s Office • John Hogan, Facilities • Mike Kerstan, Controller’s Office • Brendan Mallee, EVPF • Terry Park, Purchasing • Ting Shi, CUMC Controller’s Office Extended Team Members and Subject Matter Experts: Harry Aristakesian, Internal Audit Rebecca Balentine, SPA Fran Caracappa, CUMC Controller Paul Cassidy, Engineering Marlene D’Agostino, Anesthesia Brian David, Medicine Jo-Ann Espaillat, Irving Institute Joel Fine, Libraries Jody Grunfeld, MSPH Karen Hoffer, Lamont Hugh Horowitz, Procurement Andy Hrycyk, General Studies Sean Johnson, Procurement Joe Labetti, Procurement Joann Li, Pathology Wil McKoy, CUMC Budget Office Ed Moroni, Law School Scott Norum, A&S Dorothy Pearlman, Internal Audit Michael Reich, Procurement Patricia Reid, Treasury Narda Romero, P&S Central Dionida Ryce, Basic Sciences Eileen Valerio, Internal Audit Mary Ann Wanner, Dental School Anna Wojnarowska, Business School

5. 2010 2011 2012 FY’11 FY’12 FY’13 Jul - Oct – Feb Mar – Jul Jul – Dec Jan – May Jun - Dec Sept Test & Training Prep Analyze & Design Build Deploy/ COA Design Support 3 months 5 months 5 months 6 months 5 months 6 months System Go-Live - July 1, 2012 • FIN ERP is our Project • ARC is the name of our new financial system

6. Financials ERP Scope Project Scope • Redesign our Chart of Accounts in PeopleSoft Financials • Implement a new General Ledger (core accounting module) • Implement new Accounts Payable and Purchasing modules • Implement Project Costing module; allows us to track certain activity across fiscal years • Retrofit current Budget Tool for a new Chart of Accounts • Design New Reporting—queries “in the system” and from the data warehouse • Conduct Training

7. What is a Transition Session? • Transition Sessions are intended to promote awareness and orientation to the changes that FIN ERP will bring and prepare you for the formal training and deployment of the new solution.  • Formal ARC System Training will begin in April 2012. • Objectives for Today: • Introduce the new Chart of Accounts and new terminology. • Understand what is changing from the current state and why. • Understand Columbia’s new Department structure.

8. Key System Components of the FIN ERP Solution

9. What is a Chart of Accounts? • The Chart of Accounts is used to organize our financial information • The Chart of Accounts provides all the fields we can choose from to organize and label our financial transactions • Examples include • Assets, Liabilities, Revenues, Expenses • Detailed Departments • Specific Funding Sources

10. Impact of the Chart of Accounts Redesign • The new Chart of Accounts helps us meet our FIN ERP goals: • Operational Improvements • Improved quality and access to information • Improved grants and contracts financial management and reporting • Ability to retire shadow systems • Financial management and reporting improvements • Standardization across MS, CUMC and Lamont • Positioned for Future Initiatives • Better able to support growth in research and international activities • Foundation set for Student Administration, Grants Management, eProcurement

11. CHART OF ACCOUNTS

12. Chart of Accounts The FAS Chart of Accounts does not equal the PeopleSoft Chart of Accounts FAS PeopleSoft The list of a department’s GL and SL Accounts The valid values CU will use to classify and group financial transactions But many FAS components will be used in our new Chart of Accounts…

13. What We Need to Take With Us

14. Why We Need It What we purchased or received Where the transactions took place in the University The funding source (GL Acct) and fund balance tracking

15. Why We Need It (Cont’d) Ledgers tell us how restricted the money is SL Accounts group the P&L for a program or activity The University function that the expense relates to (e.g., Research) – this is the COB line

16. What it will be in PeopleSoft Natural Account ChartFields Department Project 16

17. What it will be in PeopleSoft (Cont’d) Initiative ChartFields Segment Site Fund Ledger 4 Function 17

18. All ChartFields Initiative Segment Business Unit Natural Account Department Fund Project Project Activity Function PC Business Unit Site Separate Legal/ Reporting Entity (replaces 9-Ledger) COB Line (replaces Exp Function attribute) Natural Account (replaces SubCode / Account Control) Building Number or Country Code (replaces bldg attribute) Organization Chart (replaces BU/MU, Dept, some SLs) Generally a Person or Thing (replaces many SLs) Fund Type (replaces Ledger #) Generally a Program or Business Activity (replaces many SLs) Project Type (multi-year / fiscal year) Components of a Multi-Year Project Fund Source (replaces GL Acct) 18

19. The Benefits of ChartFields • ChartFields are the way we will keep track of information in PeopleSoft • ChartFields are recorded on every transaction • ChartFields then act like Column Headers in Excel to let us filter on common values Filter by Initiative to get everything for Conferences for any Department or Project Filter by Department to get only 21-01-115 Filter by Project to get only Unrestricted Project 01000X

20. Why So Many ChartFields? • Unlike FAS, we can mix and match ChartFields • FAS has a long “vertical” list of GL and SL accounts to choose from, PeopleSoft breaks these into more fields with shorter lists for each • To make it easier, Fund, Function and PC Business Unit default from other ChartFields Supplies Dept 2101115 Project 01000X Smith Gift Confs ERP New York Function SL Acct 8 SL Acct 7 Fund Site SL Acct 6 SL Acct 5 Segment Initiative SL Acct 4 SL Acct 3 Project Activity SL Acct 2 Project SL Acct 1 PC Biz Unit Dept GL Acct 3 GL Acct 2 Natural Account GL Acct 1 Business Unit Room Rental Dept 2101118 Smith Gift Annual Prgms Tax Law ERP France

21. What we will do with the numbers • Numbers are organized into Ledgers in PeopleSoft (not the same meaning as in FAS) • Ledgers are tables of numbers representing Budget, Actuals and Encumbrances • We will move FAS numbers into PeopleSoft

22. What it Looks Like in PeopleSoft Natural Account (replaces SubCode / Account Control) Fund Source (replaces GL Acct) Generally a Person or Thing (replaces many SLs) Fund Type (replaces Ledger #) Organization Chart (replaces BU/MU, Dept, some SLs) Generally a Program or Business Activity (replaces many SLs) Building Number or Country Code (replaces bldg attribute) COB Line (replaces Exp Function attribute) 22

23. What it Looks Like in PeopleSoft 62001 02101115 01000X CONFS ERP NYC 01 INSTR Each has a drop down list of potential values 23

24. Mapping to PeopleSoft FAS Site indicates the international location PeopleSoft These SLs move into Initiative & Segment Segment can use used for Score Card reporting This SL becomes a Dept 24

25. ChartFields Ways of Organizing 1. Ranges Each ChartField has conventions for assigning names and ranges to group similar values together (similar to FAS ranges) 3. Trees Trees are used to organize ChartField data into hierarchies which can be used for security, reporting and managing organizational structure NEW 2. Attributes Attributes categorize ChartFields for security, reporting, programming and other purposes (similar to FAS attributes) 25

26. FAS Department Ranges After years of growth, many FAS Departments are not in ranges ERP will organize the new PeopleSoft Departments into ranges

27. Organizational Views of Columbia University Budget Provost Finance PeopleSoft Department Tree Human Resources

28. Department Tree Design Approach • When designing Columbia’s Department Tree, the ERP team considered the following key design objectives: • End User Experience: • Simplify user experience through smart numbering in ranges • Future Growth and Organizational Change: • Optimize the use of ranges and trees to allow for growth and change • Alignment of Schools and Departments of Instruction: • Provide consistent positioning of Schools and Academic Departments across the University • Human Resource Management: • Accommodate HR position management at different levels in the organization • Central Budget Reporting: • Ensure consistency with current reporting and budget views 28

29. Department Tree through Level 4 Level 1 Level 1: Total University Level 2: Campus Level 3: Group Level 2 Level 3 Level 4 Level 4: School / Major Admin Unit

30. Department Tree – Level 4 and Below P&S Department Tree (Draft Excerpt) Level 4: School /Major Admin Unit • Budget uses same tree • HR Positions (Faculty & Staff) can be managed at level 4, 6, 7 or 8 Level 5: Reporting-only roll-up Level 6: Academic Dept / Admin Unit Level 7: Division Level 8: Detailed Department

31. Columbia’s Department Tree ( 8 Levels )

32. Facilitated Q&A

33. All ChartFields Initiative Segment Business Unit Natural Account Department Fund Project Project Activity Function PC Business Unit Site Separate Legal/ Reporting Entity (replaces 9-Ledger) COB Line (replaces Exp Function attribute) Natural Account (replaces SubCode / Account Control) Building Number or Country Code (replaces bldg attribute) Organization Chart (replaces BU/MU, Dept, some SLs) Generally a Person or Thing (replaces many SLs) Fund Type (replaces Ledger #) Generally a Program or Business Activity (replaces many SLs) Project Type (multi-year / fiscal year) Components of a Multi-Year Project Fund Source (replaces GL Acct) 33

34. Meeting Wrap-Up

35. ARC Training Timeline

36. Project Resources • Review FIN ERP Project Website: http://www.finance.columbia.edu/fin_erp/index.html • Send Questions to FIN ERP Project Email Address: FINERP@columbia.edu • School / Admin Unit Liaisons (see following slide for detailed list)

37. Your Extended Support Network: FIN ERP School/Admin Unit Liaisons Alumni and Development – Hannia Smith American Assembly - Karla Garcia Architecture - Elizabeth Alicea Arts and Sciences - Ellen Binder Athletics - James Grate Business School - Janet Horan Columbia College - Andrea Burrell Continuing Education - Karyn Smith Columbia Technology Ventures - Tony Cerone CUMC - Raquel Marin-Oquendo Earth Institute - Wayne Belcher Facilities - Barbara Tracy Finance - Lisa Rogerson General Counsel - Helene Newman General Studies - Robert Hoffmeister GSAS - Rebecca Hirade Journalism School - Lucia Viterbo Kraft Center for Jewish Life - James Levin Lamont Doherty Earth Observatory - Edith Miller Law School - Gabriele Werffeli Libraries - Kristine Kavanaugh President’s Office - Kate Townsend Provost’s Office - Michelle Baggan-Bacchus Public Affairs/Government and Community Affairs - Allen Poole Research - Debbie Stiles School of Engineering and Applied Science - Anna O’Neill School of International and Public Affairs - Patrick Bohan School of the Arts - Barbara Batcheler Social Work - Cynthia Kong Student Administrative Services - Marcela Ruano