BGSU/PeopleSoft Financial Management Solutions

1
BGSU/PeopleSoftFinancial Management Solutions

• Focus on FMS Features

2
The Benefits of FMS

• User Driven Configuration and Processing
• Hierarchical Tree Design for Rollup
• Effective Dated Tables
• Easy Access to Historical Transactions
• You Schedule the jobs to run when desired.
• Menu Driven Navigation
• Quicker Data Access Reporting
• User Friendly Reporting Tools
• Drill Down to Details From Many Reports
• Electronic Audit Trail
• Workflow Approval in Purchasing
• Other Universities to Look to for Solutions

3
Other Client Experiences

• 80 CIBER Higher Education Implementations in the
  US CAN
• 25 of the Total Higher Education Implementations
  of PeopleSoft
• Clients Who have been through this
• BYU Hawaii
• BYU Provo
• Clarkson University
• University of New Orleans
• Marquette
• University of Maryland - University College
• University of Houston
• University of North Texas
• West Chester University
• Towson University
• University of Baltimore
• Cambridge University in the UK

4
Agenda

• FMS Modules
• Commitment Control
• General Ledger
• Purchasing
• Accounts Payable
• Grants Management
• Asset Management
• Questions and Answers

5
Commitment Control

• Foundation of the FMS System. All activity flows
  through this sub-system for validation, spending
  authorization, and reporting.
• Process is similar to present system with control
  at the parent level and tracking at the child
  level.
• All transactions must pass budget checking.

6
AFIN
Expense Bud/ Appropriation
Revenue Budget
PURCHASING
Online Journals
Interfaces
CURR_BUD
GENLED
APP2
FMS
Budget Journals
Interfaces
Online Journals
PURCHASING
CC_APPROP
CC_PROJ
ACTUAL
BUDGET OVERVIEW
7
Compare and Contrast
AFIN
FMS
8
Significance of Changes

• Budget Overview screen displays the summary at
  the operating level
• Can drill down from the summary page to
  individual transactions
• Allows user to specify the level of summarization
  and the detail values to be combined.
• Reporting can be done from one ledger group.

9
NAVIGATION Commitment Control gt Budget
Activitiesgt Budget Overview
To activate Overview Report
10
Navigation Search from Overview Screen
Drill Down
11
Navigation Drill Down from Budget Details Screen
12
Budget Structure

• The Budget Definition, Rule sets, and Translation
  tables provide a flexible framework to establish
  different variations of budgeting.
• Three basic configurations 3-Way, 2-Way, and
  1-Way.
• Setup based on account and department cost center
  trees.

13
AFIN
2401860F Full Time
A/O Expense Budget ------------ 1010 2012 3010
2551907F Centralized Fringes
2401860O Operating

• 3-WAY
• Personnel
• Fringes
• Operating

FMS
Account Rollup
DCC Exp Line Budget ------------ 51010 52012 53100

• 2-WAY
• PERS
• OPER

Budget Definition Rulesets
DCC Rollup

• 1-WAY
• ALL_EXPENSE

14
Compare and Contrast
AFIN
FMS
15
Significance of Changes

• Pre-defined rules prevent setup errors.
• More structure allows for consistency.
• Structures
• 3-WAY used for approved budgets with centralized
  fringe funding.
• 2-WAY used for Auxiliary budgets with fringes in
  the personnel appropriation.
• 1-WAY used for all other budgets. All expense
  accounts pooled into one appropriation.

16
Revenue Budgets with Associated Expense Budgets

• As in our current system, FMS allows revenue to
  optionally increase the spending authority of the
  appropriation.
• Although the end-result is similar, the mechanics
  and reporting in FMS are different.

17
AFIN Process at Month-end
Receipts 8190
Current Budgeted Rev
Month-end Reports
APP2 OptY
REV2 Map to APP2
EXP2 8190
System automatically Updates APP2 Spending
authority
Month-end Batch Program updates EXP2 and REV2
for Recognized Rev
Revenue deposited and recognized
18
Month-end Reports
FMS Process Daily/Monthly
FMS Process Year-end
Rev Budget
Budget Overview
Rev Budget
Exp Budget
Year-end Allocation updates Expense Budget
for Recognized Rev
System automatically Updates Spending authority
Exp Budget 2007
Revenue deposited and recognized
Year-end Close Carries forward Unobligated
Budget
Exp Budget 2008
19
Compare and Contrast
AFIN
FMS
20
Significance of Changes

• Can use the FMS system as delivered while
  maintaining our practice of allowing additional
  spending authority based on generated revenue.
• Eliminates the need for custom batch process that
  would have to be maintained with each system
  upgrade.
• Ad hoc report writers using Query will have to be
  aware of the need to incorporate revenue budget
  data with expense data to arrive at an accurate
  remaining balance amount.

21
Budget Transfers

• The Budget transfer process is used to
  redistribute budget dollars within a Department
  Cost Center to other accounts in the same
  appropriation.
• It can also be used to transfer budget dollars to
  other Department Cost Centers.
• Defaults to Adjustment type so the change does
  not affect the next years Original budget amount.

22
AFIN Process
Yes
Same APPR ?
Signed Paper Request
Budget Admin initiates and signs Budget transfer
No
EB Reduce Donor
Yes, forward form to Grants Office
APP2
Grant Related ?
EB Increase Recipient
No
Yes, forward form to VP Fin Admin
Personnel ?
No
Approved ?
No
Yes, return to Bus Office
EB Reduce Donor
APP2
EB Increase Recipient
23
FMS Process
Update Transfer
Budget Activity
Yes
Within Security ?
Budget Transfer
No
Grant Related ?
Email notification to transferee
Budget Transfer Security Error
Email Grants Off
Review Transfer With Security Errors
Email BO
Update Transfer
Budget Activity
Yes
Yes, notify VP Fin Admin
Personnel ?
Approved ?
No
Email notification to transferor/ee
Email notification to transferor
No
Update Transfer
Budget Activity
24
Compare and Contrast
AFIN
FMS
25
Significance of Changes

• Eliminates paper processing and mailing.
• Eliminates duplicate input.
• Shortens update time lapse and notification.
• Notification process is delivered functionality
  of FMS.
• Provides department with ability to easily adjust
  their budget account distribution.

26
BUDGET TRANSFER HEADER
Navigation Commitment Control\Budget
Journals\Enter Budget Transfer
27
BUDGET TRANSFER LINES
Navigation Commitment Control\Budget
Journals\Enter Budget Transfer
28
BUDGET TRANSFER NOTIFICATION
29
Agenda

• FMS Modules
• Commitment Control
• General Ledger
• Purchasing
• Accounts Payable
• Grants Management
• Asset Management
• Questions and Answers

30
General Ledger Business Processes

• Create, approve, and process journal entries from
  other FMS modules using the Journal Generator
• Create, approve, and process journal entries from
  other BGSU feeder systems
• Create, approve, and process journal entries
  imported from spreadsheets
• Create, approve, and process journal entries
  online real-time
• Post all journals to appropriate ledgers

31
General Ledger Integrations

• Purchasing
• Asset Management
• Accounts Payable
• Accounts Receivable
• Grants Management
• Payroll

32
General Ledger Feeder Systems

• Bookstore (MBS)
• Dining Services (CBord)
• Telecommunications Services (Pyramid)
• Parking Services (IPS)
• Health Services (Media Highway)
• Rec Sports (Class)
• Purchasing Card (JP Morgan)
• Office Depot
• Student Information System (SIS)

33
EXPENSE TRANSFERS

• White form sent to the Business Office by the
  majority of users
• Business Office inputs from form and updates
• IX document input and updated by selected power
  users

34
Signed Paper Request
AFIN Process
Intra-Instit Cross Chrg IX
Journal Voucher JV
Intra-Instit Voucher II
General Ledger
General Ledger
No
No
FMS Process
Enter Exp Trans Journal
Inter-DCC ?
Bus Off Review IX Source Post
Yes, email notification
Other DCC Review
Yes, email notification
Approve ?
35
FMS LEDGER PROCESSES
P-CARD
HCM
TELECOMM
GRANTS
SIS
AR
PARKING
ASSET MGMT
DINING
SPREADHEETS
AP
BOOKSTORE
PURCHASING
Online Journals
Decentralized IX
JOURNAL GENERATOR
JOURNAL HEADER/ LINES
SPREADSHEET IMPORT
Budget Check, Edit, Post
CC_APPROP
ACTUAL
CC_PROJ
36
Compare and Contrast
AFIN
FMS
37
Significance of Changes

• Eliminates paper processing and mailing.
• Eliminates duplicate input.
• Shortens update time lapse and notification.
• Notification process is delivered functionality
  of FMS.
• Provides department with ability to easily
  correct errors in account distribution and charge
  other departments for shared expenses, e.g.,
  copier usage.

38
Agenda

• FMS Modules
• Commitment Control
• General Ledger
• Purchasing
• Accounts Payable
• Grants Management
• Asset Management
• Questions and Answers

39
METHODS OF PURCHASING

• AFIN
• PDQs
• Decentralized Purchase Orders for Purchases under
  1,500
• PO1s
• Paper Payment Orders for purchases under 1,500
  not ordered on a PDQ
• RXQs
• An On Line Requisition for purchases
• P-Card
• Store Charge
• Travel Business Entertainment
• Green Yellow forms
• Bookstore Dining Interface
• Manual vouchers created by Business Office

• FMS
• Quick Invoice
• On Line entry for purchases under 100
• Store Charges
• Low Requisition
• On Line entry for purchases under 1,500
• Requisitions/Purchase Order
• On Line entry for purchases over 1,500
• ONL,CNF,BLK,SVC,CON
• P-Card
• Travel Business Entertainment
• Forms still submitted to Business Office
• Bookstore Dining Interface will continue
• Voucher will be built in PS during transmittal

40
DEFINITIONS OF APPROVERS

• Requestor Designated employee by the
  Departmental Senior Administrator
• Budget Administrator In Academic Units, most
  often the Chair, Administrative Unit, someone
  appointed by the Senior Admin
• Senior Administrator Dean, Director, Assistant
  or Associate Vice President or Vice Provost
• Vice President Departmental or Provost
• President University President, Senior Vice
  President of Finance Administration, Provost

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APPROVAL PROCESS

• Requestor
• Can enter approve direct purchase requisitions
  up to 1,499
• Budget Administrator
• Can approve purchase requisitions up to 9,999
• Senior Administrator
• Can approve purchase requisitions up to 49,999
• Vice President
• Can approve purchase requisitions up to 99,999
• President
• Can approve any requisition with amount equal to
  or above 100,000

42
DOLLAR AMOUNT APPROVAL WORKFLOW
43
SPECIAL CATEGORY APPROVAL

• AFIN
• Computers
• Scanned/E-Mail from Purchasing to ITS for
  approval
• Audio-Visual Equipment
• Scanned/E-Mail from Purchasing to IMS for
  approval
• Radioactive Isotopes
• Paper form is sent through ENVHS to Purchasing
  allowing purchase

• FMS
• Computers
• Audio-Visual
• Radioactive Isotopes
• Lasers
• Alcohol
• Institutional Memberships
• All will be sent through electronic workflow
  before being sent through dollar amount approval.

44
SPECIAL CATEGORY WORKFLOW
45
CONSTRUCTION

• FMS
• Feasibility study creates a Project ID and money
  is transferred
• Requisitions submitted on line by Design
  Construction
• Purchasing creates purchase orders for all
  vendors/contractors involved
• Change orders will continue to be submitted as
  paper for the purchasing department to enter
• Tracking exists from feasibility to project
  termination within FMS by project number

• AFIN
• Feasibility study is done
• If feasible, the process begins
• Paper requisitions are sent to Purchasing and
  purchase orders are created
• Purchasing creates physical construction files
  data bases for tracking purposes
• Change orders are sent to purchasing by paper
  with all the proper signatures. Purchasing enters
  them
• Often, initial costs are not easily linked to
  projects and not able to be tracked

46
CONSTRUCTION WORKFLOW
47
PROJECT WORKFLOW
48
HOW TO APPROVE ON LINE

• Sign on to PeopleSoft FMS
• Open Worklist
• Verify Chartfields
• Fund/Dept Cost Center/Account
• Approve/Recycle/Deny
• After refresh, transaction no longer on worklist

49
VIEW OF WORKLIST
50
(No Transcript)
51
Summary

• Entire process is now electronic
• Travel Business Entertainment will still be
  handled as it is today
• History will be viewable on line
• No more file cabinets to rummage through
• Easily auditable
• Reports Queries can be run to find almost any
  information needed

52
Agenda

• FMS Modules
• Commitment Control
• General Ledger
• Purchasing
• Accounts Payable
• Grants Management
• Asset Management
• Questions and Answers

53
METHODS OF PAYMENT

• AFIN
• Forms
• Blue, Green, Yellow, White encompassing many
  kinds of transactions
• Invoices
• Payments made for items ordered outside of AFIN
• PO Vouchers
• Payment of Purchase Orders
• Reimbursements/Stipends
• Memos/E-Mails/Spreadsheets sent from departments
• Payments from Interfaces
• Manual Checks
• Student/Customer accommodation

• FMS
• PO Voucher
• Copied from the purchase order
• Quick Invoice Voucher
• Created from end users entry of Quick Invoice
• Direct Voucher
• Used for payment of Travel Business
  Entertainment
• Created by Interfaces
• Express Payment
• Manual emergency checks

54
ONBASE DOCUMENT IMAGING

• All source paperwork will be sent to the scanning
  headquarters to be scanned and linked to its
  corresponding voucher
• While on several voucher pages in FMS, all will
  be able to link to the invoice for easy viewing

55
Voucher with Invoice Link
56
THREE WAY MATCH

• All payments need a three way match between
  Purchase Order, Receipt, and Voucher
• Workflow is set up for matching errors
• Pricing errors will be redirected to the Buyer in
  Purchasing to correct
• Receiving errors will be redirected to the
  Requester

57
MATCH WORKFLOW
58
Summary
59
Agenda

• FMS Modules
• Commitment Control
• General Ledger
• Purchasing
• Accounts Payable
• Grants Management
• Asset Management
• Questions and Answers

60
Grants Management Business Processes

• Prepare budgets for awards
• Grant budget accounting integration
• Process grants-related payments

61
Preparing an Award Budget Today

• Pre-award office prepares detailed Excel
  spreadsheet without AFIN OBJ codes
• Post-award office loads into AFIN after assigning
  OBJ codes
• Entire process not integrated within financial
  system

62
Preparing an Award Budget Today
63
Preparing an Award Budget in PeopleSoft

• Pre-award office utilizes same module and account
  codes as post-award
• Eliminates post-award replication of data
• Facilitates later budget revisions
• All revisions, changes, tracked in common system,
  integrated with FMS and HCM

64
Preparing an Award Budget in PeopleSoft
65
Generating a Grant Award Today

• Several manual processes
• Maintain two separate databases
• Limited coordination between pre- and post-award
  offices
• Duplication of budget data entry

66
Generating a Grant Award Today
67
Generating a Grant Award in PeopleSoft

• Integrates workflow between two office functions
• Eliminates duplicate budget data entry
• Facilitates post-award coordination between the
  two offices
• Automated processes replace several manual
  processes

68
Generating a Grant Award in PeopleSoft
69
Grant Numbers Today

• FUND 4-digit code designating funding
  source(i.e., 4105, separate fund for this grant)
• AGCY 3-digit code denoting department, college,
  etc.(i.e., 025 is the legacy code for Biological
  Sciences)
• ORGN itemizes activities within the AGCY(i.e.,
  in Grants, the ORGN was usually the same as FUND)

70
Grant Numbers Today

• With very few exceptions, every grant has its own
  fund and therefore its own balance sheet
• Three funds dedicated to federal letters of
  credit (4401NIH, 4402ED, 4403NSF)
• Some fund ranges designate type of funding while
  others designate type of activity
• AGCYORGN provide the unique number for each
  Appropriation with ORGNFUND except in the case
  of the letters of creditRESULT Unique
  numbering combinations become limited making
  recycling of old numbers necessary, thereby
  making tracking difficult

71
Grant Numbers in PeopleSoft

• FUND for grants, focused purpose to facilitate
  year-end financial reporting
• PROJECT/GRANT provides a unique identifier for
  university projects (i.e., construction) and
  externally sponsored programs and research

72
Grant Numbers in PeopleSoft

• Both FUND and PROJECT/GRANT number will be
  required for transactions
• Only 5 funds 40000 (federal), 41000 (state),
  42000 (local), 43000 (other), and 47000 (BGSU
  Foundation)
• Project numbers begin with 9Grant numbers
  begin with 1

73
Grant Purchases in PeopleSoft Definition of
Approvers

• Requestor Employee designated by the
  Departmental Budget Administrator
• Special Category Approval for special
  commodities
• PI Principal Investigator on the Grant,
  responsible for all activity
• Grants Accounting Approves budget item and
  availability of funds
• Budget Administrator Chair of the Department or
  Director of the Program
• Senior Administrator Dean, Assistant or
  Associate Vice President or Vice Provost
• Vice President VP of the Division
• President University President, Senior VP of
  Finance Administration, Provost

74
Grant Purchases in PeopleSoft Approval Process

• Special Category
• Approves all special category commodities, no
  matter what cost
• Principal Investigator
• Approves all requests, and requisitions up to
  1,499
• Grants Accounting
• Approves ALL requests for appropriateness to
  awarded budget and availability of funds
• Budget Administrator
• Approval required for requisitions up to 9,999
• Senior Administrator
• Approval required for requisitions up to 49,999
• Vice President
• Approval required for requisitions up to 99,999
• President
• Approval required for requisitions with amount
  equal to or above 100,000

75
Grant Purchases in PeopleSoft Approval Workflow
76
Agenda

• FMS Modules
• Commitment Control
• General Ledger
• Purchasing
• Accounts Payable
• Grants Management
• Asset Management
• Questions and Answers

77
What is Asset Management?

• What are Capital Assets?
• What tracking is required while maintaining asset
  records?
• Why are reports prepared annually?
• What types of regulations must be followed?
• What are the Policies and Procedures for Asset
  Management?
• How is PeopleSoft Asset Management different from
  AFIN?

78
What is Asset Management ?

• The management, monitoring, and reporting of
  financial, operational, and construction projects
  including personal and/or real property.
• What are Capital Assets?
• Defined as acquisitions having a cost equal to or
  greater than 3,500 and a useful life or more
  than one year. The amount of 3,500 is limited
  to an individual piece of equipment or the
  composite thereof.
• Are recorded at their original cost (historical
  cost) during acquisition, or fair value at the
  date of donation in the case of gifts.
  Acquisition is no longer strictly regarded as a
  purchase but may include leasing in specific
  instances.
• Include renovations that exceed 5 of cumulative
  building cost
• Infrastructure whereby cost exceeds 100,000

79
What are Types of Capital Assets?

• Land and Easements
• Buildings
• Equipment, Machinery and Vehicles
• Improvements Other than Buildings a.k.a.
  Infrastructure (including such things as roads,
  lighting systems, sidewalk systems, utility
  systems, and others)
• Construction in Progress
• Historical Treasures

80
Examples of Capital Assets Vehicles,
Equipment, Land
81
Examples of Capital Assets Buildings,
Historical Treasures, and Infrastructure
82
What is Considered as State Owned Property?

• Definition
• and Section 125.16 of the Ohio Revised
  Code, the Department of Administrative Services
  has defined Property as assets that are owned
  (purchased or donated), subject to ownership
  (e.g., leased asset), acquired under a grant or
  sub-grant, or held on behalf of the State of
  Ohio. Property has an initial estimated useful
  life of two years or more and is neither consumed
  nor expended during its useful life.
• Obligations As required by Section 125.16 of
  the Ohio Revised Code (ORC) and DAS Directive No.
  04-27, all state agencies, boards and commissions
  have stewardship responsibilities with
  maintaining and reporting an inventory
  representing the activities of their state owned
  assets..
• Abstracted from http//das.ohio.gov/Directives/di
  rective_05-06/06-27.pdf

83
What is BGSU Owned Property?

• Purchase of Items for Personal Use
• No employee of Bowling Green State University
  shall utilize the Purchasing Department, the name
  of the University, or University funds, to secure
  merchandise or to obtain a savings on the
  purchase of items for personal use or
  consumption. (Obsolete and in need of updating
  as we now have opportunity to take advantage of
  employee discounts based upon negotiated
  contracts by the Purchasing Department.)
• This includes the purchase of clothing with
  departmental/university logos, and the purchase
  of University event tickets. (Does not apply to
  required departmental uniforms which by IRS
  definition cannot be used as clothing outside the
  workplace.)
• Abstracted from the Business Office Policy
  Manual (pg.9)

84
Asset Management Responsibilities within the
Business Office

• Coordinate, collect and review annual
  physical inventories
• and maintain records.
• Assist other departments on campus in their
  preparation of
• inventory report an annual basis.
• Process all major equipment transfers,
  disposed, replaced and
• surplus property in order to make changes
  to assets in the
• system.
• Assist other departments on campus in
  establishing procedures
• for maintaining and controlling their
  major assets.

85
Continued Asset Management Responsibilities

• Maintain the Asset Management Module within the
  PeopleSoft System for the University and report
  updated changes annually along with depreciation
  where applicable.
• Ensure that all major equipment is tagged. This
  process includes the replacement of tags in the
  event of lost tags and the distribution of BGSU
  tags upon ownership or purchase.
• Ascertain compliance with state and institutional
  regulations

86
Roles of University Departments

• Affix BGSU Tags to the capital assets and provide
  information essential for maintaining records for
  the asset management system when requested by
  the Business Office.
• Complete the Equipment Disposal form
  (dispensation) http//www.bgsu.edu/offices/servic
  es/purchasing.html and report to AM any changes
  that occur related to transfers, retired,
  replaced, surplus, sold or stolen assets.
• If fabricating an item, discuss with the Business
  Office because a tag can be issued for an overall
  project as an accumulated value meeting the
  specifications of a capital asset.
• Perform annual inventories upon request from the
  Business Office and report results with
  validation.

87
Equipment Disposal Form

• General Disposal Information
• Disposal Method Surplus, Scrapped, or Other
• Stolen Property Information
• Transferred to a different Department
• Trade-in on New Equipment
• http//www.bgsu.edu/offices/services/purchasing/Eq
  uipmentDisposalForm.pdf

88
Surplus Property Policy
SURPLUS PROPERTY REQUEST FORM gtgt The materials
handling department has been designated as the
responsible agency for the processing and
disposal of items which are no longer needed or
usable by bowling green state university. This
centralization is important to insure compliance
with applicable state statutes, and also to match
the surplus property of one university department
with the needs of another. Our goal is to
redistribute university property to other
university departments where feasible. 
Departments should notify materials handling at
372-2121 whenever items become surplus for
possible placement in other areas. If your
department is seeking a surplus item, we hold
periodic viewings of the surplus property in the
reed street warehouse.  Please call 372-2121 to
find out when the next viewing is scheduled.
Abstracted from http//www.bgsu.edu/offices/mater
ials/page22565.html
89
Method of Depreciation

• Capital Assets
• Depreciation is computed using the
  straight-line method
• over the estimated lives of the assets,
  generally 40 years
• for buildings, 20 to 30 years for
  infrastructure and
• improvements, and 5 to 12 years for
  equipment. Library
• materials are capitalized and written off
  over 10 years.
• Abstracted from Budget Book Summary of
  Significant Policies

90
Shared Procedures PeopleSoft AM and AFIN Fixed
Assets

• Tagging capital assets/replacing tags when lost
• Annual inventory/validate submit annual report
• Complete Equipment Disposal form to change
  status of assets.

91
Benefits of Using PeopleSoft Asset Management

• An integrated system that allows the capturing of
  information and data in an overall enterprise
  resource planning system resulting in improved
  controls
• ?Within Purchasing and Accounts Payable Modules
  there is opportunity to identify capital assets
  and interface with the Asset Management Module.
• ?Physical information tracks to the receiver
  document.
• ?Financial information tracks to the voucher
  document.

92
Continued--

• Improved procedures for tracking capital assets
  
• ?Ability to track leased assets and recognize
  as operational assets
• ?Ability to track components within a clustered
  asset
• ?Ability to identify a custodian or physical
  owner of the asset
• ?Ability to track related aspects to assets and
  prompted when associated licenses, registrations,
  etc. are due.
• ?Ability to identify land with extensive
  descriptions including lot , parcel , block,
  and legal description.

93
Data Flow
Data Flow

• Physical information tracks
• to the receiver document.

?Financial information tracks to the voucher
document.
94
Click on Run button. Choose inventory reports
Detail or Short Version
95
Summary Report
96
Detailed Report
97
Focus on FMS

• Questions
• Comments