PRESENTATION TO BUDGET REVIEW COUNCIL FEBRUARY 23, 2012 FINANCE & ACCOUNTING

1. PRESENTATION TO BUDGET REVIEW COUNCIL FEBRUARY 23, 2012 FINANCE & ACCOUNTING

2. Today’s Agenda • Finance and Accounting (F&A) Mission • Organizational Structure • F&A Staffing • Customer Service • Areas Under Review: • Controller’s Office and Operational Controls and Efficiencies • Payroll and Tax Services • Gator Business Administrators Services (GBAS) • Tigert Hall Shared Service Center (SSC) • Financial Reporting • General Accounting • Cost Analysis • Summary • Q&A At End

3. Mission of Finance & Accounting • Maintain public trust and confidence in the University of Florida by safeguarding institutional resources and providing quality financial, accounting, and operational support to vested stakeholders • Consistently advance the vision and core missions of the University. • “Keeper” of sound University business processes and good internal control systems and is available to consult on these topics. • Maintain accounting records, collects and disburses University funds • Prepare various University-wide reports, including the Annual Financial Report, IPEDS, BOT reports and the National Science Foundation (NSF) annual report.

6. F&A Historical Staffing Levels We have focused on identifying the mission-critical functions in F&A and have been able to reduce FTEs

7. Makeup of F&A Staff • 44.1 Degreed Accountants • 13 Certified Public Accountants (CPAs) • Other Certified Professionals, CMA, CIA, CTP • 13 Other Degreed Professionals • 97.3 Other Fiscal Staff

8. Focus on Customer Service • Recognize our role as a support function for campus • Conduct customer surveys to assess areas in which we can improve or need to focus more efforts: • Sponsor quarterly CFO Roundtable (formerly F&A Roundtable) • Quarterly CFO Newsletter • Remedy system to effectively manage calls and emails • Office Communicator • UFS Phone System • FI Users Group • Consistent with CFO, encourage our employees to bring forth ideas for improvement • Research Participant Payment process

9. Distribution of 2013 Budget by Area

10. 6410 – Controller’s Office and Operational Controls & Efficiencies

11. Controller’s & Operational ControlsMajor Programs and Services • Management of Finance and Accounting (F&A) • General management and support of F&A – 154.4 FTEs and over $10 million budget • Controller and 4.1 Sr. Associate Controllers • Ongoing meetings with all levels of F&A • Continual review of F&A business processes and organizational structure to achieve efficiencies

12. Controller’s & Operational ControlsMajor Programs and Services • Accounting, Auditing, Reporting, Internal Control, Business Process Guidance and Support to Customers • Represent users of the MyUFL system with Enterprise Systems • Serve on Various University and DSO Boards and Committees; Staff support to BOT Finance and Facilities Committee and the Audit and Operations Committee • Prepare monthly and annual Scorecards • Departmental visits • Participate in ITN for Administrative Services Review

13. Controller’s & Operational ControlsMajor Programs and Services • Bond Financing: • Clinical Translational Research Building $30 million • Hough MBA and Harn Asian Wing $18.5 million refinancing • Upcoming JWRU $50 million Expansion and Renovation • Teach Several Pro3 Classes: • Color of Money • Internal Controls • Departmental Reconciliations

14. Controller’s & Operational ControlsMajor Programs and Services • Audit Liaison: • Auditor General Financial, Federal and Operational Audits • 23 Numbered Memos 2010-11 Fiscal Year • Coordination of responses to audit findings • Coordination of Management Representation Letters • Internal Revenue Service • 18 month duration • Over 200 Information Data Requests (IDRs) • Review and negotiate audit closing process: • Negotiated to $77K • Office of Audit and Compliance Review (OACR) exit conferences • Others Including HHS, Kellogg Foundation, other grant specific reviews, etc.

15. Controller’s & Operational Controls Accomplishments • Completed two bond financings during the 2011 FY; one currently planned for FY 2012 • Along with F&A staff worked to negotiate a $77,000 payment for back taxes and interest to IRS for a five-year audit period. • This was substantially less than other peer institutions have been assessed and our process for monitoring Unrelated Business Income Tax (UBIT) earned compliments from the IRS staff • 18 month duration with approximately 200 requests for information • Earned commendations from IRS for our procedures • Negotiated new F&A rates with DHHS (see Cost Analysis)

16. Controller’s & Operational Controls Accomplishments • Accumulated, prepared and sent out monthly and annual scorecards to 77 Departments/Centers/Institutes • Departmental Visits: • Vet Medicine • PURC (Public Utility Research Center) • JW Reitz Union • Various visits to assist with implementation of FI 9.1

17. 6420 – Payroll and Tax Services

18. Payroll and Tax ServicesMajor Programs and Services • Payroll Processing • Biweekly payroll and off-cycle – 653,230 employee payments for $1.2 billion per year • Time and Labor Reporting System corrections and support – 1800 • Prepares Vouchers for Payroll Vendor Payments – approximately 1,500 payments totaling $60 million • Wage Refunds – 508 refunds for $465,000 • Collections, Garnishments – 10,000 a year • Direct Deposits Authorizations – 22,000 entries/year

19. Payroll and Tax ServicesMajor Programs and Services • Monitors Departmental Payroll Distributions (distributions allocate payroll charges to Cost Centers) • Teach PRO3 “Payroll Distributions” class • Prior and current year distribution changes

20. Payroll and Tax ServicesMajor Programs and Services • Tax Services • Monitor Employees for Correct FICA Status • W-2s – 35,193 W-2s provided • Social Security and Medicare tax monitoring • Unrelated Business Income Tax (UBIT) • Florida Sales and Use Tax – 292 departments reviewed with 12 consolidated returns filed

21. Payroll and Tax ServicesMajor Programs and Services • Payments to Foreign Nationals • 1042-S • Nonresident Aliens (NRA) and tax treaties • Foreign research participants review • Payments to foreign organizations (IRS reg 1442)

22. Payroll and Tax ServicesMajor Programs and Services • Other Services • Campus Support • Payroll - Email (64,000) & phone calls (11,000) • Tax Services – Email (21,000) & phone calls (7,600) • Campus training programs • UBIT training and departmental visits • Florida sales tax • Audit support e.g. IRS

23. Payroll and Tax ServicesAccomplishments • Online W-2s and End-of-Year Statements (EYES)

24. Payroll and Tax ServicesAccomplishments • Substantial Decrease in Number of Printed Checks

25. Payroll and Tax ServicesAccomplishments • Wireless Device Reimbursement • Change in IRS regulations allowed a change in the reimbursement process saved UF approximately $500,000 a year • Self service direct deposit functionality

26. 64300100 – Gator Business Administrator Services (GBAS)

27. GBAS Mission • Gator Business Administrator Services, or GBAS, targets business administrators on campus. • Define institutional expectations associated with the role of the business administrator • Provide ongoing professional development for existing business administrators • Identify and facilitate initial and on-going training in all areas of finance and administration • Ensure that Business Administrators and staff have a comprehensive understanding of policies, directives and procedures, rules (State, Federal, university, other) and that they are applied fairly and consistently across units • Partner Business Administrators across campus with core office leaders on a regular, on-going basis to actively engage in discussing current issues, providing input into new and existing policies and procedures, sharing information and best practices, and suggesting and implementing process improvements.

28. GBASMajor Programs and Services • Orientation: • 12 Online Modules to Introduce Newly-hired and those new-to-the position Business Administrators to the UF Financial, HR and Administrative Environment • Mentoring • Foundation – Pro3 curriculum • GBAS Institutes • Ongoing professional development • GBAS Credential – End of 2012

29. GBAS Accomplishments • Held one Business Office Institute in Fall, 2011 with 40 participants; Next Institutes in April and November 2012 • Held a reporting training class for Business Administrators with 30+ participants – Yesterday, February 22, 2012 • Started a mentoring program in February 2012 with 10 participants

30. 64300200 – Shared Services Center (SSC)

31. SSC Mission • To work in partnership with the academic and administrative management of the University of Florida to provide efficient and effective financial and administrative services and solutions, focused on unit level needs and university-wide objectives.

32. SSC Major Programs and Service • Financial and Human Resources transaction processing. • Cross Coverage - Highly trained staff members are available to assist units during employee absences and peak periods of activity. • Training – Unit training support may be provided to insure compliance with internal and external regulations. • Assist units with analyzing FTE needs and opportunities to streamline administrative processes for better quality service, improved efficiencies and customer service.

33. SSC Accomplishments • Tigert Hall SSC go live date – October 26, 2010 • Total units served – 16 • Total AP transactions processed, October, 2010 to January, 2012 – 2419 • Total HR transactions processed, October, 2010 to January, 2012 – 326 • Support to CLAS – analysis of FTE and research administration support

34. 6450 - Financial Reporting

35. Financial ReportingMajor Programs and Services • Annual Reports • UF Annual Financial Report • SUS Consolidated statements • IPEDS, UF Fact Book, US News and World Report, others • SACS • Credit rating agencies • Quarterly Financial Statements with a Variance Analysis to the UF Board of Trustees

36. Financial ReportingMajor Programs and Services • Report Writing • nVision reports for Auxiliaries to use in creating financial statements • Assistance to other F&A departments • Assistance to Campus • Assist with journal entries for financial statements • Teach Departmental Reconciliation and Basic Accounting Concepts classes – 8 times a year each

37. Financial ReportingAccomplishments • Electronic Reporting • Implemented electronic (Excel) workbooks and eliminated 79, 3-ring binders. Saved paper, space and time. • Workshops are videotaped and available to remote locations and can be viewed when convenient to user. • In person visits to preparers with complex entries.

38. Financial ReportingAccomplishments • Streamlined Documentation  • Based on feedback from users, reduced the amount of documentation for each preparer by preparing journal entries for the following centrally:  • Accounts Payable • Compensated Absences • Salaries Payable • Investment Allocations • Investment Interest and Fair Value Adjustments • Other Postemployment Benefits • Reversing Entries and Beginning Net Assets

39. 6460 - General Accounting

40. General AccountingMajor Programs and Services • Maintain the Integrity of the University’s Accounting Records • Create and Maintain all Chartfields and HR Account Codes in PeopleSoft • Review and Post General Ledger and subsystem journals • Keep Subsystems/GL/KK In Sync • Close General Ledger and Sub-Systems at Month and Year-End (which affects the timely release of reports to Campus)

41. General AccountingMajor Programs and Services • Auxiliary/Educational Business Activity • New Requests and Ongoing Support • Auxiliary Enterprise Committee Meetings (3/year) and related reports • Quarterly Auxiliary Financial Statements Support and Annual training • Annual Service Center Rate Review to Comply with Circular A-21 Guidelines

42. General AccountingMajor Programs and Services • Reporting • Review Monthly Financial Reports and Data Warehouse • Negative Balances Reporting to Campus • Support to Campus • Financial Services (FI) User Group • Monitor the Fringe Benefit Pool Assessment • Accounting and Reporting Support to UF and 11 DSOs • Training via Human Resources Online courses and Instruction Guides

43. General AccountingMajor Programs and Services • Other Services • myUFL Upgrade Testing Support • Agency Fund Requests • Unclaimed Property • Search & Claim UF’s property from the State • Prepare Annual Unclaimed Property Report to the State

44. General Accounting Accomplishments • Started the Financial Services User Group • Changed the E2E & E2R process to be more streamlined for Campus – eliminated 3,000 checks • Streamlined process for creating Contracts & Grants HR Account Codes and shortened timeline by as much as 3 days • Changed Cash Management Funding Process for COM Resulting in Fewer COM FTEs Needed for the process

45. 6490 – Cost Analysis

46. Cost AnalysisMajor Programs and Services • Responsible for maintaining the Effort Reporting system required by Circular A-21: • Approximately 20,000 emails and inquiries from campus • New Effort Reporting System for Summer, 2011 • Conducted 13 open labs and 30 training sessions • 45,000 Effort submissions • Pulling old Effort reports for HHS Audit – over 7000 • Prepares various reports for agencies such as the annual NSF report • Prepares the annual Schedule of Expenditures of Financial Awards (SEFA) report required under Circular A-133.

47. Cost AnalysisMajor Programs and Services • Assists campus and core offices on questions regarding grantor awards and compliance issues. • Coordinates Annual Campus Space Study • Over 40,000 campus rooms • Biggest driver of indirect cost recovery (FnA) calculation • Cost Analysis staff “walks” Organized Research space for FnA base years

48. Cost AnalysisMajor Programs and Services • Prepares the University-wide indirect cost (Facilities and Administrative (FnA)) study: • Results in approximately $70 million of reimbursements coming to the University annually • “Base Year” study is prepared every four to five years • “Off-Year” studies are conducted to look for unusual or expected trends • Very, Very Personnel Intensive

49. Cost Analysis Accomplishments • Facilities and Administrative (FnA) rates approved (yet to be signed) • 2010, 2011 and 2012 – 46.5% • 2013 and 2014 – 49% • Results in an increase of approximately $1.7 million/year to UF compared to 2012 • 2015 – 50% • Results in an increase of approximately $2.4 million/year to UF compared to 2012

50. Cost Analysis Accomplishments • Implemented New Effort Reporting System (direct response to HHS audit) • Fringe Benefit Pool Analysis, Projection and Submission to Federal Government