Banner Research Accounting Overview Version 0.02

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Banner Research Accounting OverviewVersion
0.02
The information contained in this presentation is
under development and is subject to change.
Project LINK
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All information is subject to change
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OBJECTIVES

• Project Scope LINK-Finance
• High level Banner Project/FOAPAL overview
• Define the Finance Grants and Contracts module
• Deferred Grant Processing Revenue recognition
  FA calculation Cost share
• Grant Events/Reporting/Billing
• Agency Hierarchy/Trail in and trail out periods

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PROJECT SCOPE - FINANCE

• General Ledger
• Research/Project Accounting
• Purchasing
• Accounts Payable
• Fixed Assets Management
• Endowment Accounting
• Non-student Accounts Receivable
• SCT Workflow
• SCT Finance Data Mart Brio Reporting

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Implementation Team

• General Ledger Duane Arruti
• Research Accounting Mike Schwantes
• Purchasing Julian Sandoval
• Accounts Payable Shannon Gilbert
• Fixed Assets Liz Metzger
• Endowment Accounting Frances Starnes
• Non-student Accounts Receivable Liesje Kerkmans
• CIRT Technical Leads Jeff OKeefe, Oscar Meyer,
  Susan Minter
• Work Groups within each team include many, many
  staff from departments, CIRT, central finance
  offices

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UNM Project LINK Finance Implementation July 2002
June 2003
Current State Analysis
Oct 03
Future State Analysis
Attend SCT Conference
July 2002
Jan 2003
Nov
Sept
Aug
Oct
Dec
May
Feb
Mar
Apr
June
COA Loaded in Development
SCT Implementation Team Banner Finance Training
Systems Validation
Dec 03
Ongoing Planning Communication
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UNM Project LINK Finance Implementation
July 2003-Aug 2004
Finance Go-Live July 1, 2004
Future Budgets Loaded to Banner
Load Pre-Production Data Conduct System Unit
Testing
Data Migration
July 2003
July 2004
Jan 2004
Nov
May
Sept
Aug
Oct
Dec
Feb
Mar
Apr
Jun
Aug
End User Training
Core Dept Training
Ongoing Planning Communication
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Future State
Finance System
Student and Financial Aid Systems
Accounts Payable
Purchasing
Accounts Receivable
COA
Human Resources and Payroll System
Endowment Management
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Banner and the Ledgers

• Information is stored in

Operating Ledger (Income Statement) General
Ledger (Balance Sheet) Encumbrance Ledger
(Commitments)
COA
Grants Ledger (Inception to Date)
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Ledgers and Chart of Accounts (COA)
All Ledgers are updated using the Chart of
Accounts
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Introduction To the New COA

• Specific instance of Banner Finance System
• One Digit
• Zero Levels
• Balance Sheet
• Six Digits
• Five Levels
• Budget Units, Departments
• Six Digits
• Eight Levels
• Assets, Liabilities, Fund Balance, Revenue,
  Transfers, Expenditures
• Six Digits
• Four Levels
• Mission and Facilities Administration
• Six Digits
• Five Levels

CHART C
R E Q U I R E D S E G M E N T S
FUND F
ORGANIZATION O
ACCOUNT A
PROGRAM P
O P T I O N A L
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Introduction to the New COA

• The new Chart of Accounts consists of an
  accounting string called FOAPAL
• Other acronyms frequently surrounding our chart
  are
• C-FOAPAL
• FOP
• FOAP
• FOPA
• FOPAL
• These acronyms are made from the names of the
  accounting string segments

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What is a Segment?
CHART C
FUND F

• The FOAPAL is a string of seven parts called
  segments
• Each segment contains part of the information
  held in a FOAPAL
• Not all segments are required by Banner for a
  transaction to be recorded

ORGANIZATION O
ACCOUNT A
PROGRAM P
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Hierarchies in Banner Segments

Many of the segments in Banner have multiple
levels, known as hierarchies.
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Banner Hierarchies

• Provide for flexible grouping and
  summarization of information
• Permit high level roll-up and detailed
  drill-down to facilitate reporting at all levels
  in the organization
• Typically, lower levels of hierarchies will be
  data enterable

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Sample of Banner Hierarchy
Level 1
Level 2
Level 3
Level 4
Level 5 (Data Entry)
Level 6 (Data Entry)
Level 7 (Data Entry)
Level 8 (Data Entry)
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C-F-O-A-P Definition

• This section deals with the first five segments

Chart Fund Organization Account Program
They are required in every operating ledger
transaction
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Chart
CHART C

• The CHART code refers to a specific instance of
  the Banner Finance System.

U is the chart code for UNMs Chart of
Accounts

• An institution can have multiple charts each with
  a unique chart code
• The chart code designates a finance instance that
  replaces the current FRS system.

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Fund
FUND F

• Designates a fiscal and accounting entity with a
  self-balancing set of accounts
• Balance Sheet
• Required for tracking Assets and Liabilities
  other than Fund Balance and Claim on Cash

Fund, to some extent, replaces the General Ledger
segment (six digits) of the FRS account number
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UNM Fund Hierarchy
Fund Type Level 1
Level 2
Fund Code Level 1 Level 2 Level
3 Level 4 Level 5
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Organization
ORGANIZATION O

• Used to track the financial activities by
  functional reporting units
• Designates a department or unit of budgetary
  responsibility
• Accommodates reporting at any level of
  organizational hierarchy
• Organization replaces the UNM organization
• code attribute

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Organization Hierarchy
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Account
ACCOUNT A

• Designates asset, liability, equity, revenue,
  expenditure, and transfer account classifications
•  
• Hierarchy has built in the reporting requirements
  related to Governmental Accounting Standards
  Board (GASB) Financial Statements

Account will replace the FRS 4 digit
account control/object code.
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Account Codes
ACCOUNT A
6 digits / 4 levels of hierarchy

• Users will not be able to create ad-hoc user
  defined account codes as currently can be done in
  FRS(sub codes)
• All account codes must be pre-defined and
  established in Banner before they are available
  for use

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Program
PROGRAM P

• PROGRAM designates NACUBO functional
• classifications such as
• instruction
• research
• public service
• sub-classifications

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Program and Mission
PROGRAM P
6 digits / 5 levels of hierarchy

• The major Mission category will be at Level 1 of
  the hierarchy
• The Facilities Administration subcategory will
  be at Level 2 of the hierarchy
• We are exploring the possibility of Levels 3, 4,
  and 5 being used by departments/units
• NSF Checking is allowed at all budgeted program
  levels

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The Rest of FOAPAL!

• This section covers the last two segments in the
  FOAPAL string
• Activity and Location are not required to
  complete any transaction and many times will not
  be used at all

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Activity
Activity A
6 digits / 0 levels of hierarchy

• Designates temporary units of work, subsidiary
  functional classifications, or short duration
  projects
• Reduces the need to create separate FOAPs to
  track activities
• Replaces some uses of shadow systems and user
  defined object codes created to track activities
• Activity codes are available to the end user only
  after they are added by central administration

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Location
Location L
6 digits / 5 levels of hierarchy

• Location is used mainly for fixed assets
• The Location Workgroup is defining location codes
  
• This segment is optional and not needed for many
  transactions

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C-FOAPAL Segment Definition Summary

• Specific instance of Banner Finance System
• One Digit
• Zero Levels
• Balance Sheet
• Six Digits
• Five Levels
• Budget Units,Departments
• Six Digits
• Eight Levels
• Assets,Liabilities,Fund Balance,Revenue,
  Transfers Expenditures
• Six Digits
• Four Levels
• Mission and Facilities Administration
• Six Digits
• Five Levels

CHART C
R E Q U I R E D S E G M E N T S
FUND F
ORGANIZATION O
ACCOUNT A
PROGRAM P
O P T I O N A L
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Introducing the Index or Speed Dial Key

• Shortcut key to the FOAPAL String--Input an index
  and elements of the FOAPAL will default
• Used in lieu of the old FRS Account number in
  legacy and feeder systems, i.e. HRS,
  telecommunications, etc.
• Example
• The Index will be put on Personnel Action
  Notices (PANs) to identify labor distribution

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Banner Research Accounting

• Common system for financial transactions and
  processing billings and aging receivables
• Event tracking of billings, reports, and other
  reminders will assist PI with stewardship and
  accountability of funds.
• Reporting functionality will allow users to roll
  up related project funds on a single report and
  show related receivables.

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Banner Research Accounting Definition

• The banner Research Accounting module consists
  of the Grant Ledger which
• Provides inception to date accounting for grants
  and projects.
• Accounting, reporting and billing functions after
  receipt of the grant/project award include
• indirect cost
• cost share calculations
• tracking expenditures (billed unbilled)
• generating bills and reports for sponsors
• and processing payments received from sponsoring
  agencies

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Deferred Grant Process (FRRGRNT)

• This process defines when Banner will perform
  following calculations
• Facilities Administrative Costs (FA or IDC)
• Cost share
• Revenue recognition calculations
• Can be set to calculate multiple times per
  month(cash management) and the order of
  calculating cost share vs. FA can be changed.

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Deferred Grant Processing T Account example
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Calculating FA then Cost Share
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Banner Research Events

• Banner allows for linking events (billing,
  reporting and other reminders) to grants and
  contracts which are date driven.
• UNM can specify who is responsible for indicating
  when the event is finished (satisfied) and Banner
  will send reminders to the responsible person or
  people.
• Common events can also be grouped by sponsor and
  linked to a grant or project.

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Grant Events Example(FRVEVNT)
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Grant Events Form (FRAEVGA)
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Research Fund Hierarchy
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Agency Hierarchy

• In addition to the fund hierarchy in
• FOAPAL, there is an agency hierarchy in the
• Grants Module
• Reduces the number of funds required
• Consists of 5 levels which define the sub
  agencies.

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Agency Hierarchy
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Trail in/Trail out periods

• Trail in Allows costs to be incurred prior to
  the project start date.
• Trail out Allows costs to be incurred after the
  project end date.
• The fund(s) associated with the grant/contract
  contains the dates which will determine when
  transactions will be allowed to post.

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New Grant Cover Sheet
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Questions to Ponder

• How will this information effect the way we
  operate?
• How do we communicate the info to our work
  group(s)?
• How do we communicate the info to those who
  interface with us and have a need to know?
• How does this effect what I currently do?
• What effect does this have for people outside the
  Finance community?
• What can I do to ensure a smooth transition?

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Research Accounting Challenges

• Conversion Inception to date expenditures,
  outstanding invoices, receivables and deferred
  revenues.
• Identifying and meeting reporting requirements of
  departments and the principal investigator (this
  includes events).

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Any Questions?
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Thank you for coming!