Finance and Administrative Services Finance Service Center

Transcription

1 FINAL DRAFT Finance and Administrative Services Finance Service Center Service Level Agreement January 3, 2011

2 Table of Contents Section I. Departments and Effective Dates...1 Section II. Overview and Objectives...1 Section III. Service Center Locations...2 Section IV. Service Center Staffing...2 Section V. Services Provided...4 Section VI. Service Commitments...8 Section VI. Roles and Responsibilities...11 Finance Function: Transaction Management...11 Accounts Payable...11 Accounts Receivable / Billing...13 Recharge Processing...16 Cashiering (Recording Results)...18 Expense Transfers (Also see Account / Fund (General Ledger) Verification)...19 Procurement (Supplies and Services)...20 Capital Project Accounting...21 Page i

3 Finance Function: Information and Data Management...27 Account / Fund (General Ledger) Reconciliation...27 Controller s Office Balance Sheet Reconciliation...29 Asset and Liability Management...29 Equipment Inventory...30 Financial Structure...33 Financial Data Management...34 Finance Function: Budget Development and Planning...35 Budget Preparation Including Labor and Related Cost Budgeting...35 Intradepartmental Services Cost Allocation...36 Periodic Forecasting...37 Recharge Rate Development...38 Staffing List (Permanent Budget)...40 Finance Function: Financial Reporting...42 Financial Reporting and Related Analysis...42 Ad Hoc Reporting and Related Analysis...43 Finance Function: Consultation...44 Finance Function: Internal Controls...45 Appendix Reports...50 Page ii

4 Section I. Departments and Effective Dates Effective Date of Agreement January 3, 2011 Departments Served Audit Information Technology Services (participation TBD) AVC Finance Legal Affairs Budget Office Program Management Office Campus Life Services Police Campus Planning Real Estate Capital Programs Risk Management Controller Strategic Comm. & Univ. Rel. (SCUR) Campus Procurement and Contracting Sustainability Facilities Management SVC Finance & Administration Human Resources Section II. Overview and Objectives This document is the service delivery agreement between the FAS Financial Service Center (FSC) and the departments listed above. The purpose of this document is to create an understanding of the goals and objectives of the FAS FSC and services that will be delivered to meet departmental business needs. This service delivery agreement provides a comprehensive listing of finance services performed by FAS FSC. While departments cannot opt out of using FAS FSC, departments may not require every service available, therefore a separate Memorandum of Understanding (MOU) will be written for each client department. At the discretion of FAS FSC and the client department, services that are not finance related may be performed by FAS FSC and included in the MOU. This service delivery agreement and related MOUs do not have specific expiration dates. The service delivery agreement and related MOUs will remain in effect indefinitely or until cancelled or superseded by FAS FSC and the client department. Cancellation of an agreement requires approval by the SVC Finance and Administration. The service delivery agreement and related MOUs will Page 1

5 be periodically reviewed and updated, no less than annually, to reflect new services provided, services eliminated, and changing business needs of client departments and / or when supporting systems and tools are modified. The FAS FSC is a regional center established to provide high quality consistent and timely finance services to clients within FAS and select other UCSF departments. It is organized to deliver services in a cost effective, efficient and professional manner, providing subject matter expertise and knowledge of, and in compliance with, University policies, practices and procedures. As a service center, the FAS FSC is dedicated to providing high quality, innovative and continually improving client services while upholding ethics and integrity standards. Section III. Service Center Locations The FAS FSC will operate in two physical locations as listed below. The physical locations work closely to ensure that services are provided in a consistent, quality and timely manner. MCB Service Center Director, Gary Forman 1855 Folsom Street Suite MCB 306 Box Minnesota Service Center Director, Jon Giacomi 654 Minnesota Street Suite 227 Box 0894 Section IV. Service Center Staffing A FAS FSC Business Partner has been assigned to each client department. The Business Partner is accountable for providing services in a professional and timely manner as outlined in this agreement. The Business Partner will draw support from a shared crosstrained support staff. Departments will utilize the assigned FAS FSC Business Partner as their point of contact. Depending on the nature of a specific work requirement, from time to time, an individual other than the Business Partner may be assigned to work with the client department. As the Business Partners and support staff will be cross trained, there will always be back up when the assigned Business Partner is not immediately available (vacations, business meetings or any other planned or unplanned absence). In the event that escalation is required, please contact the location Director listed for your Business Partner s physical location. Page 2

6 Department Business Partner Phone Number Location Audit David Schachman (415) MCB AVC Finance David Schachman (415) MCB Budget Office David Schachman (415) MCB Campus Life Services Mike Wang (415) MCB Campus Planning Paula McQuillan (415) Minnesota Capital Programs Aaron McCoy (415) Minnesota Controller David Schachman (415) MCB Campus Procurement and David Schachman (415) MCB Contracting Facilities Management / Utilities Bernard Jones / Zoila Kelly (415) (415) Minnesota Human Resources Julie O Neal / Jenny Chin (415) / (415) Information Technology Services TBD MCB Legal Affairs Alice Finney (415) Minnesota Program Management Office Julie O Neal (415) MCB Police Julie O Neal / (415) / MCB Jenny Chin (415) Real Estate Aaron McCoy (415) Minnesota Risk Management David Schachman (415) MCB Strategic Comm. & Univ. Rel. (SCUR) Alice Finney (415) Minnesota Sustainability Alice Finney (415) Minnesota SVC Finance & Administration Alice Finney (415) Minnesota MCB Page 3

7 Section V. Services Provided FAS FSC provides the following services: 1. Transaction Management a. Accounts Payable b. Accounts Receivable / Billing c. Recharge Processing d. Cashiering (recording results) e. Expense Transfers f. Procurement (Supplies and Services) g. Capital Project Accounting h. Fiscal Close The Transaction Management service includes transactions related to the Procure to Pay (P2P) process, including order and invoice processing; accounts receivable and related billing; recording results of sales / cash receipts (cashiering); expense transfers; capital project accounting; and fiscal close. FAS FSC is also responsible for ensuring appropriate internal controls related to transaction management are observed. Funds disbursement (issuance of checks) related to all transactions is a Central function that will continue to be performed by the Controller s Office. 2. Information and Data Management a. General Ledger Verification b. Controller s Office Balance Sheet Reconciliation Page 4

8 c. Asset and Liability Management d. Equipment Inventory e. Financial Structure f. Financial Data Management The Information and Data Management service includes verification and / or reconciliation of all accounts and funds (SAS 115 and internal policy requirements), managing assets and liabilities, defining financial structure, managing financial data and related data repositories, and ensuring that internal controls related to data are observed. In coordination with client departments, FAS FSC will establish DPA / Fund and Department Code structure to facilitate timely and efficient transaction recording and resulting reporting. Data management systems maintained by FAS FSC will be utilized as the central data repository for client department financial and statistical business data. Such systems will facilitate periodic financial reporting as well as research and analysis as required to support client departments. Use of shadow systems by client departments will not be required and is highly discouraged. 3. Budget Development and Planning a. Budget Preparation including Labor and Related Cost Budgeting b. Intradepartmental Services Cost Allocation c. Periodic Forecasting d. Recharge Rate Development e. Staffing List (Permanent Budget) Page 5

9 The Budget Development and Planning service includes preparation of budgets reflecting outcomes of discussions with client departments; intradepartmental services cost allocation agreements and journal entries; budget transfer journal entries; periodic forecasts; recharge rate development and / or coordination; and staffing list (permanent budget). As a great majority of client departments budget is comprised of labor and labor related costs, special attention will be provided to this area during budget planning and related activities. Using standardized budget templates, FAS FSC will facilitate annual departmental operating budget preparation in collaboration and coordination with the client department. Using historical data, guidance from the SVC Finance & Administration, the Budget Office and specific client department information, FAS FSC will develop the pro forma budget for review and approval, as well as the final budget for submittal to the SVC Finance & Administration and the Budget Office. In addition, periodic forecasting will be performed as necessary to project annual spend using actual expenditures to date plus anticipated expenditures for the remainder of the fiscal year. Such forecasts will be informed by changing UC, UCSF and departmental business conditions and requirements. FAS FSC will facilitate development of recharge rates as well as intradepartmental services cost allocation agreements and related journal entries in accordance with policy. Recharge Agreements will be prepared in conjunction with the client department and submitted to the Budget Department for review and approval. 4. Financial Reporting a. Financial Reporting and Related Analysis b. Ad hoc Reporting and Related Analysis FAS FSC will prepare and distribute a standard set of financial reports for each client department. Such standard reports will enable delivery of said service in a timely and efficient manner. While FAS FSC will endeavor to provide information required to understand client department business results using the abovementioned standard reports, a client department may, on occasion, require additional information presented in report format Page 6

10 (ad hoc reports). In these instances, FAS FSC will work with the client department to provide such information timely and will ascertain whether an existing report already provides required information, or make a determination whether an additional standard report will be developed and distributed on a go forward basis. 5. Consultation On a monthly basis, or other periodic timeframe as agreed by FAS FSC and the client department, FAS FSC Business Partner will meet or conference via phone to discuss budget variances and other business information and metrics. The consultations are intended to timely inform and advise the client department on financial results, discuss possible course corrections as required to achieve budget targets and operating requirements, bring attention to potential anomalies and other finance related topics as necessary. In addition, the FAS FSC Business Partner will provide Business Analysis services which include assisting client departments with determining the feasibility and cost of a new service or a major modification to an existing service. 6. Internal Controls FAS FSC, in collaboration and coordination with client departments, is responsible for ensuring internal controls are observed for all functions performed on behalf of client departments. FAS FSC and the client department are jointly responsible and accountable for internal controls specifically related to finance functions. Internal controls not specifically related to finance functions performed by FAS FSC on behalf of the client department shall remain the responsibility of the client department and the client department will remain accountable for ensuring internal control requirements are met. FAS FSC will monitor internal controls that are the responsibility of the client department as appropriate. Page 7

11 Section VI. Service Commitments To ensure provision of consistent, quality, timely service, FAS FSC commits to the following: Activity Accounts Payable Accounts Receivable / Billing Cashiering (Recording Results) Expense Transfers Procurement (Supplies and Services) Capital Project Accounting Commitment Invoices requiring additional documentation and authorization will be routed from FAS FSC to the client department within 3 working days after receipt. Invoices with appropriate documentation and authorization will be processed within 5 working days after receipt. Funds disbursement (issuance of checks or release of EFT) related to all transactions is a Central function that will continue to be performed by the Controller s Office. Invoices and related journal entries will be prepared and processed prior to the close of the month. Journal entries to record results of sales and other collections will be processed prior to the close of the month. Expense transfers will be processed prior to the close of the month in which the transfer requirement is identified. P2P orders will be processed within 5 working days after all required information is entered into the P2P system; manual orders will be processed within 5 working days after all required information is received by processing personnel. Verification of accounts / funds will be performed per guidelines in the Controller s Office SAS 112 Key Control #13 General Ledger Verification and Review document dated April 30, Per guidelines, verification frequency may vary depending on relative risk, monthly transaction volume, average transaction value, and fund type. Page 8

12 Activity Commitment Fiscal Close General Ledger Verification Controller s Office Balance Sheet Reconciliation Asset and Liability Management Equipment Inventory Financial Structure Financial Data Management Budget Preparation including Labor and Related Cost Budgeting Intradepartmental Services Cost Allocation Perform fiscal close activities per schedule distributed by Controller s Department. Verification of accounts / funds will be performed per guidelines in the Controller s Office SAS 112 Key Control #13 General Ledger Verification and Review document dated April 30, Per guidelines, verification frequency may vary depending on relative risk, monthly transaction volume, average transaction value, and fund type. Reconciliation of Balance Sheet accounts will be performed monthly unless otherwise agreed with the Controller s Office. Such reconciliations will be performed within 45 calendar days of the last day of the closed month, with approval one week thereafter and review prior to the end of the approval month. Journal entries will be processed by the end of the processing month. Periodic audits for assets and liabilities will be performed as agreed with each client department. Periodic inventory records will be processed within 5 working days of receipt. Requests for account changes will be worked with the client department and submitted to the Controller s Office within 5 working days of receipt of authorizations from the client department and other departments as required. Financial data will be managed within appropriate databases in conjunction with data entry and monthly close requirements. Budget preparation and related coordination will be performed in accordance with schedules published by the SVC Finance & Administration and the Budget Office. Intradepartmental services cost allocation agreements will be developed in coordination and collaboration with client department on an as needed basis. Related journal entries will be Page 9

13 Activity Periodic Forecasting Recharge Rate Development Staffing List (Permanent Budget) Financial Reporting and Related Analysis Ad Hoc Reporting and Related Analysis Consultation Internal Controls Commitment processed on a periodic basis as defined in the agreement. Forecasts will be prepared on a periodic basis as agreed between the FAS FSC and client department. Recharge rate development will be performed on an as needed basis, typically prior to the start of a new fiscal year. Off cycle recharge rate development will be performed as agreed with the client department. Recharge Agreements will be prepared in conjunction with the client department and submitted to the Budget Department for review and approval. Prepare Staffing List per annual Budget Department schedule. Financial reports will be prepared and distributed on a monthly basis no later than 10 working days subsequent to completion of month end closing. Ad hoc reports will be developed and delivered on an as needed basis. The FAS FSC Business Partner will meet (or communicate via phone) with client department at least monthly or other periodic basis as agreed. The Business Partner will be available for consultation on an as needed basis to discuss general finance / accounting questions and concerns. Internal controls, by policy, will be observed in every FAS FSC activity. FAS FSC, in collaboration and coordination with client departments, will ensure internal control requirements are met for all finance functions. Page 10

14 Section VI. Roles and Responsibilities Finance Function: Transaction Management Accounts Payable FAS Department Managers Vendor Setup Request product or service from new vendor Transmit information to Controller s Office with request to setup new vendor (shared responsibility with vendor W9) Consult with client department regarding vendor setup Enter vendor in FAS FSC database(s) Gather required vendor information Set up vendor Send vendor information to FAS FSC for setup in database(s) Vendor Invoices Receive vendor invoice (non P2P) Receive and scan vendor invoice Receive and scan vendor invoice Assign fund / DPA Approve Enter invoices in database(s) Enter invoices in database(s) Match as necessary to purchase order Enter invoices sent directly to Controller s Office Page 11

15 Forward to FAS FSC with appropriate supporting documentation Validate account / DPA information Upload files to PeopleSoft Process Management Retain records Close vouchers Post journal entries in general ledger Expense Reports, Including Travel (responsibilities for this function may change as Concur the automated expense reporting system is implemented and adopted by client departments) Prepare expense report forms Enter expense report information in database(s) Validate documentation (receipts, etc.) Approve expense report Enter expense report Send hard copies to Controller s Office Enter expense reports in system Release expense reimbursement to employee Forward to FAS FSC Discrepancy Resolution Respond to inquiries from FAS FSC and assist in resolving discrepancies as appropriate Correct error as required Inquire with client department Inquire with vendor Correct error or send back to department client for correction as necessary Assist in discrepancy resolution as necessary P Card Payment Processing Gather receipts Assign account / fund Page 12

16 Compare receipts to statement and resolve discrepancies (reconciliation) Prepare and submit payment request form with statement and receipts attached Create PDF and send to Controller s Office Review and approve payment request form Approve online Funds Disbursement Release vendor payments Accounts Receivable / Billing FAS Department Managers Invoices Prepare invoice Transmit bill to customer Review invoices Consult with FAS FSC as necessary Prepare and / or transmit invoices to customer Consult with client departments as necessary Process recurring and onetime bills Post transactions to general ledger Page 13

17 Process invoices to non UC entities Record Keeping Revenue Receipt Cash Outs Revenue Receipt Record Keeping Perform cash outs according to policy and procedures Enter cash out data in database Submit information supporting each day s cash out to FAS FSC Audit invoices for appropriateness Ensure processes are running efficiently and accurately; monitor / evaluate system and application logs Prepare and process journal entries Receive cash out supporting documentation Compare documentation to database entries Make necessary corrections; communicate with client department Maintain copies of deposit slips, check copies and Page 14

18 other documentation for 7 years Revenue Receipt Journal Entries Revenue Receipt Reconciliation Revenue Receipt Collections Support FAS FSC in collection activities Approve write offs as necessary Prepare, approve and submit journal entries for cash and credit card receipts within 5 working days after date of deposit except at month end when journal entries must be prepared within 2 working days of deposit Retain records for cash receipts Reconcile accounts / funds Perform collection activities as necessary with non UC vendors Turn over to collection agency as appropriate Manage activities with collection agency Page 15

19 Obtain approval for writeoffs Prepare and enter journal entries as necessary Reconciliation Respond to FAS FSC inquiries Reconcile account / fund balances Resolve discrepancies / correct transactions Recharge Processing FAS Department Managers Recharge Initiation Prepare recharge invoice Transmit invoice to customer Validate account / fund and transmit recharge file to FAS FSC Prepare and / or transmit invoices to customer Consult with customer as necessary Validate account / fund and prepare recharges Ensure recharge files are uploaded to general ledger Return invalid account / fund lines to suspense account Review invoices Consult with FAS FSC as necessary Process recurring and ongoing recharges based on recharge agreements Page 16

20 Process invoices to non UC entities Post transactions to general ledger Suspense Journals Support FAS FSC in suspense journal activities per MOU Correct the account / fund charged for journal lines in suspense Refer back to the department as necessary for follow up contact with the customer Record Keeping Retain source information / documentation in support of invoices Provide backup to recharge customer Audit recharges for appropriateness Ensure processes are running efficiently and accurately; monitor / evaluate transaction logs Prepare and process journal entries Provide backup documentation to recharge customer Page 17

21 Reconciliation Respond to FAS FSC inquiries Reconcile account / fund balances Resolve discrepancies / correct transactions Cashiering (Recording Results) FAS Department Managers Cash Outs Record Keeping Perform cash outs according to policy and procedures Enter cash out data in database Deposit receipts at bank Submit information supporting each day s cash out to FAS FSC Receive cash out supporting documentation Compare documentation to database entries Make necessary corrections; communicate with client department Page 18

22 Maintain copies of deposit slips, check copies and other documentation for 7 years Journal Entries Reconciliation Prepare, approve and submit journal entries for cash and credit card receipts within 5 working days after date of deposit except at month end when journal entries must be prepared within 2 working days of deposit Retain records for cash receipts Prepare, approve and submit journal entries for cash and credit card receipts within 5 working days after date of deposit except at month end when journal entries must be prepared within 2 working days of deposit Retain records for cash receipts Reconcile accounts / funds Expense Transfers (Also see Account / Fund (General Ledger) Verification) FAS Department Managers Verification Verify items Determine validity of transactions recorded in Maintain verification / reconciliation repository Page 19

23 Collaborate with FAS FSC to research and resolve issues Contact FAS FSC if discrepancies are noticed or suspected account / fund Research and resolve differences, consulting with client department as required with appropriate validation documentation, including approval records Retain verification records Journal Entries Identify items that require expense transfers Provide justification for transfer and correct account / fund Prepare correcting journal entries in accordance with policies and procedures, providing required supporting documentation Obtain journal approval Retain journal entries and supporting documentation Procurement (Supplies and Services) FAS Department Managers Purchase Requests Initiate request Purchase Request Approvals Approve request Requisitions and Purchase Orders Enter requisition Select vendor as required Select account / fund Approve requisition and / or Verify account / fund Assist with negotiating with vendor and placing order Approve and release purchase order Release purchase orders exceeding delegated thresholds Page 20

24 purchase order Process, approve and release purchase order Send purchase order to vendor Receipt of Supplies and Services Physically receive supplies and services Enter receipt in system Submit receipt document Discrepancy Resolution Respond to inquiries from FAS FSC and assist in resolving discrepancies as appropriate Consult with client department to resolve discrepancies including match exceptions and missing receipts Research and resolve missing receipts Consult with FAS FSC as required to research and resolve match errors Capital Project Accounting FAS Department Managers Set Up and Maintain Project Information in Business System Set up project information in business system, including funding requested, amount Page 21

25 committed and amount remaining for each budget level Establish and Maintain Work Orders, Requisitions and Cost Centers Validation and Reconciliation Request Work Orders, Requisitions and Cost Centers Request modification to Work Orders, Requisitions and Cost Centers Set up Work Orders, Requisitions and Cost Centers in the business system Increase Work Order liens as requested by Project Manager Update Cost Centers as funding changes occur Validate amounts in business system monthly or quarterly (based on transaction volume or amount) reconciling the approved budget, funding received, expenses to date, encumbrances and uncommitted balance to the Plant Account Ledger in PeopleSoft Page 22

26 Make adjustments as necessary Prepare Projections Update Prepare detailed projections of cost to complete major projects as requested Develop detailed Project Accounting Master Spreadsheets and detailed explanatory notes Meet with Controller s Office and Budget Office to discuss projects that appear to be heading into overdraft status or require additional funding Consult with Controller s Office and Budget Office to identify and properly categorize projects eligible for capitalization Meet with Capital Project Accounting to discuss projects that appear to be heading into overdraft status or require additional funding Provide consultation to help identify and properly categorize projects eligible for capitalization Close Requisitions, Work Orders and Contracts Notify Capital Project Accounting of Requisition, Close out Requisitions, Work Orders and Contracts Page 23

27 Work Order and Contract completion Notify Capital Project Accounting of project completion in business system Close out projects upon completion Funding Requests Request project funding Review requests for funding from project managers Validate financial statements for correctness and ensure schedules are mathematically accurate Progress Reports Recharge Rates Capital Project and Operating Budgeting Management Fund Draws Provide project status information to Capital Project Accounting Provide information to assist in developing recharge rates With the assistance of Capital Project Accounting, prepare capital project and operating budgets Update Capital Programs website with quarterly status information Develop recharge rates, create agreements, obtain approvals Assist in preparation of capital project and operating budgets Assist in obtaining draws Page 24

28 against secured funding from outside resources (banks, etc.) UCOP Capital Project Database Management Input, manage and monitor data in the UCOP Capital Project Database Fiscal Close FAS Department Managers Final Reconciliation Reconcile final account balances Prepare correcting entries as necessary Prepare Accruals Collaborate with FSC to determine items eligible for accrual per UCSF thresholds Collaborate with Departments to determine items eligible for accrual per UCSF thresholds Enter data from accrual spreadsheet into GL Obtain signatory approval Prepare accrual spreadsheet Forward accrual Page 25

29 19900 Carry Forward Prepare Request for Carry Forward of Operating Funds Prepare Closing Entries Perform Preliminary Close Obtain approvals spreadsheet with supporting documentation to Controller s Department Prepare Request for Carry Forward of Operating Funds Obtain approvals Review requests prepared by Client Department Review account balances to determine need for closing entries and / or reappropriation Prepare closing journal entries Prepare re appropriation per guidelines Obtain approval Enter journal entries in GL Run preliminary reports Review results Make final adjustments Approve carry forward requests Provide direction and consult to FSC and Departments Approve journal entries as required by policy Approve final adjustments as required by policy Page 26