Planning/Budgeting System & Chart of Accounts Redesign 1
Today s Agenda 1. Project Vision 2. Project Organization 3. Project Schedule 4. Hierarchy Structure 5. Chart of Accounts Redesign 6. Reporting 7. Planning Budgeting Sneak Peak 8. Next Steps 9. Questions 2
icat Project Vision This new system will provide a better understanding of financial health by articulating the accounts that define each class of items for which money is spent or received, and by organizing finances and segregating expenditures, revenue, assets and liabilities. James L. Gaudino 3
Project Organization Project Sponsor: Joel Klucking AVP of Finance & Business Auxiliaries Project Manager: Tina Short Project Steering Committee: 9 Executive Members Project Team: 30 Plus Members from various departments across campus 4
Project Schedule 5
Project Benefits Transparency, Consistency, Accountability Improved quality of data Clear Financial Reports for better decisions Reduced need for ad hoc spreadsheets Faster realignment after reorganizations Consolidated department and division level Reporting Powerful, flexible analytical planning & operational budgeting tool Multi-year planning and forecasting 6
Hierarchy Structure Executive Division: Cabinet level organizational areas, includes; academic and student life, business and financial affairs, operations, and the president s area. Division/College: A primary organizational entity within an executive division, reporting to a Cabinet member or senior management. A division/college may be subdivided into distinct sub-divisions or departments. Sub-Division: An organizational entity within a division. A sub-division is subdivided into distinct departments. Department: A specialized area responsible for one or more support functions or programs. A department typically includes support staff. A department will have distinct personnel and budgetary identification. 7
Hierarchy Structure Example 8
Chart of Accounts Definition What is Chart of Accounts (COA)? A COA (Chart of Accounts) is designed to be a way for an entity to store, categorize, structure, and segregate transactional and statistical data for management and financial reporting. What is a ChartField? Independent Data Elements each with its own attributes. The combination of chartfields creates a chartfield string. 9
Chart of Accounts Redesign Chartfield Change Definition/Purpose Fund Code No Change Where is the money coming from? Account Code No Change What category of transaction? Operating Unit No Change What physical location benefits? Program Code No Change What function does it serve? Department Re-Design Who s responsible for the transaction? Project ID Re-Define What Grant or Capital Project? Component New What specific activity entity (i.e. student club, course, theatre production)? Note: Retired Chartfields- Class and Budget Reference. 10
Fund Code - Where is money coming from? State General Grants and Contracts Work Force Student Activities Tuition Revenue Housing and Food Services Trust & Agency Endowments (i.e. 001, 149, 148, 522, etc.) 11
Account What category of transaction? Account is used to categorize the nature of the transaction as a specific type of revenue, expense, asset, liability, or net asset (equity). (Goods & Services 53110, Benefits 52110, Classified 51105, etc.) 12
Operating Unit What physical location benefits? The Operating Unit is a required field that identifies a physical university center location with an identifiable financial activity. (Ellensburg, Des Moines, Lynnwood, etc.) 13
Program - What purpose does the transaction serve? The Program Code ChartField, is generally defined as an ongoing specific regular activity. Programs may cross organizations, funds, sources of funds, and they may have revenues and expenses. Program Codes shall be defined to represent categories in accordance with Programs for state reporting. Examples: Instructional, Research, Public Service, Institutional Support, etc. 14
Program - Examples Instructional Research Public Service Community Service Library Services Student Services Instructional Support Plant Operations & Maintenance Sponsored Programs Working Capital Capital Projects 15
Department Who s responsible for the transaction? A Department is a specialized academic or operational unit responsible for one or more support functions or programs. A Department is an independent unit that rolls up in an organizational hierarchy structure such as Executive, Division/College, and Sub-Division. 16
Department Units generally meet the following criteria to be considered a department when they: Have an ongoing business purpose and objective within the University Have an established control budget Have fiscal oversight by a responsible person Have positioned employees Represent workflow approval 17
Project/Grant ID What Grant or Capital Project? The optional Project ID ChartField now only defines transactions associated with a grant or capital project (such as a new building). Typically with a specific start and end date. 18
Component What specific activity entity? The Component is an optional, user-defined code that provides a tracking mechanism for activities that can t be defined with other chartfields such as fund, department, and/or program. 19
Component - Examples Professional Development Gate Revenues Special Projects (example icat) Special Events Courses Indirects Start-Ups Theater Productions Student Clubs TaiChi Yoga Beer Certificate 20
COA Examples 21
Multiple Project Summary Reports - Today
One Consolidated Department Report - Future
Sneak Peak of Planning/Budgeting System *Web based *Familiar Excel like Experience *Tasks and Forms *Flexible Variance Reports *Historical Trend Analysis 24
Next Steps & What We Need From You Validation of Hierarchy Structure Detail Meetings with Individual Departments Meetings with Admin Assistants, Secretaries, Fiscal Techs & Department Chairs Your Support Bring the Message Of Benefits and Change to Others across Our Campus 25
Questions 26
Planning/Budgeting-Chart of Accounts Redesign Project Status Information on Project Website http://www.cwu.edu/project-management/icat-chart-accountsbudgetingposition-control-project Thank You for Attending. Questions: Contact Tina Short (shortt@cwu.edu) 27