Kuali Financial System Overview for Carnegie Class Institutions

1. Kuali Financial SystemOverview David Lyons NACUBO Liaison to Kuali April 2007

2. What is Kuali? Kuali is a community source initiative with the goal to develop a comprehensive financial information system that will serve the needs of all Carnegie Class college and universities.

3. Current Participants

4. Current Timeline

5. Indiana University FIS • 12 Years of Operations • 7 Campuses of Different Sizes • $2.4 Billion Annual Expenditures • Modular Design • Flexible Chart of Accounts • Need to Port to New Technology Environment

6. FIS Enhancements and Modifications • Rigorous Review of Each Module • “Webinar-Style” Presentations • Critiqued by Specialists at Each Institution • Consensus on Enhancements and Modifications • Priorities Agreed Upon

7. Technology Environment • Java 2 Enterprise Edition (J2EE) • XML (Workflow) • Modular Architecture • Standard Connections to Other Systems • Standards Based • No Proprietary Technology for the Long Term

8. Kuali System Core Modules • Chart of Accounts • General Ledger • Transaction Processing • Workflow (KEW) • Kuali Nervous System (KNS)

9. Kuali System Additional Modules • Accounts Payable/Purchasing • Budget Construction • Labor Ledger • Grants and Contracts (Scheduled Release October 2007)

10. Kuali System Additional Modules (cont’d) • Scheduled Release June 2008 • Accounts Receivable • Capital Assets Management System • Separate Projects • Endowment (KEM) • Research Administration (KRA)

11. Kuali Chart of Accounts • Simple Account Identification Number • Transaction Object Code • Sub Accounts/Sub Object Codes as Needed • Numerous Attributes Linked to the Account Identification Number • Multiple Charts if Needed

12. Conceptual Data Model

13. Transaction Processing • Electronic Documents • Built-in edits before routing for approvals • Only fully approved transactions posted to general ledger

14. Business Rules • Maintained by financial system parameter tables • Functional users can maintain and create business rules • Institutions can customize based on their policies

15. Workflow • Routing engine for validated transactions • Could be used for legacy and other systems • Routes transaction to proper approvers • Highly customizable

16. Standard Reports Base System • Account Status • Consolidated account status • Consolidated object codes • Account transactions • Trial balance • External reports

17. Balance Inquiry • Balances by account, sub-account, object code and sub-object code • Balances by consolidation and drill down to object code • Budget balances after actual or encumbrances

18. Balance Inquiry (Cont’d) • Drill down to detail transactions and to electronic transactions • Include/Exclude pending entries • Export functions (e.g. Excel) • Sort in ascending/descending order

19. Financial Policy Guidance Base System • Internal Control • Chart of Accounts • Cash Receipts • Cash Disbursements • Journal Vouchers • Workflow • Reports

20. Fiscal Officer Development Series • “Tool Kit” for success for Fiscal Officers • Development not training • Establish relationships • Assist Fiscal Officers in identifying their role

21. Not Included in Kauli • Decision support environment • Security Structure • Check Writers

22. Post-Project Sustainability • Community of users • User-controlled organization • Commercial partners

23. More KAULI Information • WWW.KUALI.ORG • Downloads and Resources • Kuali Appliance • Kuali News • Sign up on the website for e-mail notices

24. KUALI • Questions? • Comments?

25. Chart of Accounts Claire Tyson San Joaquin Delta College

26. What is the Chart of Accounts? • Kuali has a flexible Chart of Accounts. • CoA is made up of sets of tables that define the codes and coding structures within Kuali. • Kuali CoA specifies organization hierarchy and provides a framework for reporting financial data.

27. Purpose of the Chart • What is the primary purpose of a chart of accounts? • To support and validate entries into a general ledger • What other functions does the Kuali chart of accounts serve? • Reporting, both internal and external • Internal controls • Document routing and approvals • Framework for budget construction

28. Key Attributes of the Chart • Multiple charts of accounts • Organizations and the organization hierarchy • Accounts and sub-accounts • Object code and sub-object codes • Object level codes and object consolidation codes • Extended attributes

29. Chart of Accounts at Sample U

30. Benefits of Multiple Charts • Ability to handle complex reporting structures • Campus charts are not required to contain object codes unrelated to their activities (i.e. Cost of Goods Sold, Inventory, etc.) • Auxiliary Charts are not required to contain object codes unrelated to their activities (i.e. Tuition, State Appropriations) • Easy access to campus level or Auxiliary reporting • Increased information and knowledge at the campus level

31. Organizations • Organization • Example: FMOP (Financial Management Operations) • Collection of accounts and/or other organizations • Some organization features: • Chart of Accounts, Campus, Department, Responsibility Center, Subunit • Can include all fund groups • Up to four alphanumeric characters (eg. FMOP) • Extension HRMS table (customizable)

32. Organization Hierarchy at SU UNIV WA VPBus FM FMSY FMOP

33. Accounts • Account Number • Specific identifier for a pool of funds assigned to a specific organization for a specific function. • Example: 1912610 (Financial Management Administration) Reports to org FMOP • All accounts can be self-balancing

34. Org Hierarchy with Accounts UNIV WA VPBus FM FMSY FMOP 1912631 1912610

35. Sub-Accounts • Sub-accounts achieve further division of an account for internal reporting purposes. • Example:custr (FM Admin Customer Service) Reports to 1912610 • Characteristics of a sub-account: • Account specific • Assumes all features of the account it reports to

36. Org Heir with Accounts/Sub Accounts UNIV WA VPBus FM FMSY FMOP 1912631 1912610 aucap custr

37. Object Codes • Object Codes are detailed identifiers for Income, Expense, Asset, Liability and Fund Balances. • Chart specific • Four numeric digits • Example 1: West-2000 “Academic Salaries” East-2000 “Academic Salaries” • Example 2: West-1504 “Animal Care Income” East-1504 “Card Services Income”

38. Sub-Object Codes • Sub-object codes achieve further division of an object code for internal reporting purposes • Features of a sub-object include the following: • Specific to an account and object code • Assumes all features of the object code it reportsto • Example: In State Travel Object Code 6000 • Faculty Instate Travel, Fac • Staff Instate Travel, Sta • Student Instate Travel, Stu

39. 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 4100 “Office Supplies” Level S&E “Supplies and Expense” Consolidation GENX “General Expenses”

40. Extended Attributes • Extended Attributes are extensions of an Account that enable: • Search by attribute • Lookup by attribute • Balance inquiry retrieval by attribute • Reporting by attribute • Extended Attributes can be alpha / numeric. • They are optional.

41. Enhancements to the Kuali chart • Flexible Claim on Cash • Post cash offsets to control accounts rather than having each account be self balancing • Budget Year • Work in multiple fiscal years at the same time • Required for reporting uses of state appropriations in many states

42. 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 fiscal officers, account managers, supervisors • Transparency of data to measure performance of departments and subunits

43. Management Control and COA • What tools are provided to achieve reporting objectives? • With the Approval of the Chart Manager • Organizations • Accounts • Object codes • Sub-accounts (budgeting / spending) • Sub-object codes (budgeting / spending) • On line balance inquiries and formal reports through use of data warehouse

44. CoA Next Steps • Kuali Demo Labs • Kualitestdrive.org

45. Questions?

46. Financial Transactions, Workflow and General Ledger Bill Overman Indiana University

47. TP Global Concepts Transaction Processing • Users create transactions with built-in edits before transactions route for approval. • Fully approved transactions are sent to the general ledger. • Allows read-only access to transactions via document search.

48. Electronic Documents • Document groups: • Accounts Receivable • Capital Assets • Contract & Grants • Financial Documents • Labor Distribution • Chart of Accounts Maintenance • Financial documents include: • Budget Adjustment • Cash Receipt • Disbursement Voucher • Distribution of Income/Expense • General Error Correction • Internal Billing • Journal Voucher • Disbursement Voucher • Transfer of Funds

49. Edits and Rules • Validations • Restrictions • Account • Object code • Balancing rules • Special features/Specific documents • Authorizations/Routing

50. eDoc Account Edits