Chart of Accounts - Rice University

Chart of AccountsTown Hall Presentation

3/3/2020

For Discussion Purposes Only

2

Session Agenda

1 CoA Project Overview

2

3

Prototype CoA Design

Appendix – Segment Definitions

Draft Guiding Principles

1The CoA should support consistent, standardized University-wide reporting, and should enhance the capacity of the University to

provide a standard experience for financial administrators and stakeholders across the institution.

2 The CoA should be transparent, simple, intuitive, and easy to comprehend and use.

3The CoA should be flexible to meet ongoing needs and accommodate for growth and changes to business processes and

requirements.

4 The CoA should serve the needs of stakeholders as the common language used to describe financial transactions and information.

5 Each CoA segment should have a single use with a clear and consistent definition.

6 The use of CoA values should be supported by robust guidelines, communications, and documentation.

7

The CoA should capture transactional level detail that, when combined with CoA element attributes and data from subsidiary

systems, is sufficient to support campus-wide financial and budgetary analysis, financial and management reporting needs, and

any external and legislative requests for University data.

8 The CoA design should be informed by best practices as well as facilitate comparisons to peer organizations.

9 Hierarchies should be leveraged across CoA segments to support financial management, reporting, and budgeting needs.

3

Guiding PrinciplesGuiding principles were established to maintain a consistent and focused approach to developing and adopting the new Chart of Account.

Discovery and Design – Information and requirements gathering, prototype CoA design and segment definition

Initial Value Development – Value, range, and hierarchy development

Proof of Concept – Scenario demonstration, validation of prototype CoA

Conversion Mapping – Full CoA string mapping and value finalization

Deployment and Transition – Transition of transactional activity, processes, and reporting to new structure

Deployment & Transition

Initial Value Development

Discovery & Design

Conversion Mapping

Proof of Concept

Inventory and definition of key business processes

Implementation Phase (3/20 – 1/21) Discovery Phase (11/19 – 2/20)

Financial TransformationRedesigning the CoA is a multi-phased initiative that begins with developing an understanding of the financial and management reporting needs and ends with the translation and transition of CoA segments and values, processes, and systems to a new structure.

4

5

Discovery Phase ProgressThe team has completed 49 interviews with campus partners and documented 92 chart and non-chart business requirements.

Develop Guiding Principles to serve as a foundation for decision-making regarding the

design of the CoA.

Perform information gathering and analysis to identify and understand key financial management and reporting needs to be addressed by the CoA.

Identify and analyze institution-wide CoA requirements to develop a Requirements

Traceability Matrix.

Identify institution-wide Proof of Concept scenarios.

Develop a prototype CoA structure that includes chart segment functional definitions and use

criteria.

Objectives

Established and communicated 9 Guiding Principles to information gathering session

participants.

Performed 49 information gathering sessions with campus partners to record chart and non-chart related business requirements.

Documented 80 chart and 12 non-chart requirements for consideration in Chart of

Accounts redesign.

Identified and demonstrated 14 scenarios within the prototype CoA structure.

Established and defined 9 segments for the redesigned Chart of Accounts.

Completed Tasks

6

Data Elements IdentifiedThe data elements identified in the RTM (sample listed below) informed the design and usage of the CoA segments.

Data Elements (Representative Sample)

Academic Term Course Location School

Activity Department Account Sponsor

Asset Division Account Type Sport

Asset Type End Date Organization Task

Award Function Patent Transaction Date (Period, Date)

Budget Fund Source Person Identifier Unit

Budget Year Fund Type Program Vendor

Center Gift Project Vendor Type

College Granting Agency Project Type

Contract Institute Service

# CoA Requirement Example of RequirementChart?

Y/NPotential Future State

OptionRequirement

TypeSource

Meeting Date

Key Data Elements

Supporting Data Element

#1

1Ability to track startup and other designated faculty funds by faculty / PI

Funds often come from multiple funding sources; there is a need to keep track of individual sources and balances in aggregate.

YSub-Ledger Functionality, Chart Segment Values &

Hierarchies

Chart, Process, System

Budget Office, Engineering,

Natural Sciences

11/18/2019 (Various)

Person Identifier

Fund Source

4Ability to split salary & benefits costs for faculty and staff

There is a need to distinguish between salary, wage and benefit expenses. Account types 60 and 62 in Banner often conflate transactions, making distinctions difficult.

YChart Segment Values /

HierarchiesChart Budget Office 11/18/2019 Account

7Ability to track revenue by schools and units

Ability to produce aggregated / roll-up financial information


HierarchiesChart, Reporting

Cashier's Office, Engineering

11/18/2019 (Various)

School Organization

37Ability to track cross-unit research awards and the award, project, and task

Currently have grants that span multiple organizations; need a way to be able to allow multiple PI’s to see the entire grant.

YSub-ledger Functionality / Chart Segment Values &

Hierarchies

Chart,Process, System

Natural Sciences 12/3/2019 Project Organization

64

Ability to create comprehensive reports by organizational or fund hierarchy

Currently there are three organizations that represent graduate housing that have individual P/L sheets but cannot be reported on in aggregate unless moved into an excel sheet.


HierarchiesChart

Residence & Dining

12/11/2019 Organization Fund Type

7

Requirements Traceability MatrixBelow is a sample of the RTM CoA requirements.

8

Prototype CoA Design

8

9

CoA Segment: OrganizationThe Rice University prototype is intended to meet the majority of the CoA requirements and capture all identified data elements.

Data Elements

Organization

• Areas that meet the definition of an Organization are identified as unique values in the Organization Segment.

• Organizations may be arranged in a hierarchical structure to derive Schools and other needed roll-ups, such as divisions and departments.

• A Center / Institute may represent an individual organization and/or may be captured in the Program Segment.

• Residential Colleges may be captured as organizations and/or operational locations.

Organization / Department

School

Sport

Center / Institute

Residential College

Segment

Single Segment Data Element

Potential Multi-Segment Data Element


Academic Term Course Location SchoolActivity Department Account SponsorAsset Division Account Type Sport

Asset Type End Date Organization TaskAward Function Patent Transaction Date (Period, Date)Budget Fund Source Person Identifier Unit

Budget Year Fund Type Program VendorCenter Gift Project Vendor TypeCollege Granting Agency Project TypeContract Institute Service

10

Prototype OverviewThe Chart of Accounts is separated into 9 unique segments to provide a matrix-style reporting ability to financial transactions that occur in the new cloud ERP tool.

Entity Organization Fund Type Fund Source Account Classification Program Activity Location

DefinitionMajor

operational unit at Rice

OrganizationalUnits with positioned employees,

space, budget authority, and permanence

Overall spending

restriction of the fund source

Individual pot of money that’s

being budgeted for or funded,

and spent against

Nature of transaction –

revenue, expense, asset,

liability etc.

Designates the purpose of a

transaction as it applies to

NACUBO and A-21

Formalized set of ongoing activities

Tracking mechanism for

events and other

institution-wide or department

specific activities

Operational location

Example Segment Values

10 - Rice University

10050 –Mechanical Engineering

100 -Unrestricted

Operating

100000 -General

Operating

5123 – Guest Speaker Expense

10 - Instruction

2035 -Mechanical Engineering

Master’s Program

5005 – Master’s Lecture Series

502 –Farnsworth

Pavilion


10050 –Mechanical Engineering

500 – Temp Restricted

Contributions

510023 – Smith Eng

Advancement

5201 –Domestic

Airfare10 - Instruction

2126 –Developing Tomorrow’s

Engineers

4268 – 21st

Century Engineering Symposium

999 -Unspecified


70001 – Dining Services

110 –Unrestricted

Operating Auxiliary

110000 –Auxiliary

Operating

5203 – Food & Beverages

60 - Auxiliary9999 -

Unspecified9999 -

Unspecified999 -

Unspecified

Segment Length2 Characters

Alphanumeric5 Characters








Alphanumeric

Use Who? Who? How? How? What? Why? Why? Why? Where?

11

Subledger Data ElementsSubledgers capture detailed information that is summarized to the GL. As such, certain granular data elements in the subledgers are mapped to specific values in the Chart of Accounts.

Data Elements

PPM,Procurement,AP,Expense Management,Asset Management,Budget Management

• The PPM subledger contains award / project specific data elements such as data required for the NSF survey, CFDA numbers, project and award owning organizations etc. will be tracked.

• Faculty funds may be also be tracked in PPM to gather greater detail.

• Supplier/Vendor information will be tracked in AP.• P-Card purchases and relevant information on

vendors, regions, etc. will be captured in the Expense Management Subledger.

• Asset tagging, tracking by location, and setting depreciation schedules may be done through the Asset Management Subledger.

Award / Contract

Granting Agency / Sponsor

Project / Project Type / Task

Contract / End Date

Person Identifier

Segment






Budget Year Fund Type Program VendorCenter Gift Project Vendor TypeCollege Granting Agency Project Type


12

Sample Rollup from Subledger to GL

Expenses ModuleExpense Type

Projects ModuleExpenditure Type

General LedgerNatural Account

Domestic Lodging

Domestic Airfare

Domestic Meals

Domestic Travel

Domestic HotelDomestic

Airbnb

Domestic Airfare – First

Class

Domestic Airfare –

Economy Class

Domestic Meals –

Breakfast

Domestic Meals – Lunch

Subledgers will contain as much detail as the institution chooses. The ‘layer’ from which a user reports will determine the level of detail available.

13

Example of CoA ChangesBelow are a few examples of how current usage of values and segments may be realigned with the newly established and defined segments.


10 – Rice University

20133 – Political Science

100 - Unrestricted Operating

100000 - General Operating

5123 – Travel Domestic

10 - Instruction4213 – Graduate

Support

3310 –Professional

Development999 - Unspecified

Fund Org Account Program

A1 – General Operating874800 – Political Science Graduate Funding

72341 – Travel Airfare Domestic IDR1 - Instruction & Dept Research

Current-state Org doesn’t meet the definition of a

future-state Organization An organized set of ongoing activities is identified in the

current-state Org field

A specific activity is identified via the

combination of the current-state values

Sample Values Only

14

Example of CoA ChangesBelow are a few examples of how current usage of values and segments may be realigned with the newly established and defined segments.


10 – Rice University

40332 – Surface Lot Operations

110 –Unrestricted

Operating Auxiliary

110000 –Auxiliary Operating

7113 – Taxable Sales Revenue

60 – Auxiliary9999 -

Unspecified9999 -

Unspecified131 – Greenbriar

Lot

Fund Org Account Program

A26650 – Parking Auxiliary Operations 665020 – Surface Lot Operations 57240 – Sales Texas subject to sales tax AUX - Auxiliary Enterprises

Sample Values Only

Information tracked extraneously in shadow systems and

spreadsheets can now be captured in the new CoA

15

Next Steps

15

16

Next Steps

1 Begin preliminary value and hierarchy development starting 3/1

2 Confirm value and hierarchy design with campus partners

3 Begin preliminary Chart of Accounts mapping starting 6/1

18

Appendix – Segment Definitions

18

19

CoA Segment: EntityThe Rice University prototype is intended to meet the majority of the CoA requirements and capture all identified data elements.

Data Elements

Entity

Unit



Entity

• The Entity Segment is used to identify every major operational unit for which financial statements need to be produced.

• Examples of Entities may include Real Estate Holding Companies and Trusts (such as Rice Trust Inc.).

Segment






20

CoA Segment: OrganizationThe Rice University prototype is intended to meet the majority of the CoA requirements and capture all identified data elements.

Data Elements

Organization

• Areas that meet the definition of an Organization are identified as unique values in the Organization Segment.

• Organizations may be arranged in a hierarchical structure to derive Schools and other needed roll-ups, such as divisions and departments.

• A Center / Institute may represent an individual organization and/or may be captured in the Program Segment.

• Residential Colleges may be captured as organizations and/or operational locations.

Organization / Department

School

Sport

Center / Institute

Residential College

Segment







21

CoA Segment: Fund TypeThe Rice University prototype is intended to meet the majority of the CoA requirements and capture all identified data elements.

Data Elements

Fund Type Fund Type

• Fund Type provides a mechanism for categorizing and reporting on the overall restriction of the fund.

• Life Income Annuities may be captured broadly within the Fund Type Segment.

• A hierarchy is established within the Fund Type Segment and is connected to the Fund Source Segment.

Segment








22

CoA Segment: Fund SourceThe Rice University prototype is intended to meet the majority of the CoA requirements and capture all identified data elements.

Data Elements

Fund Source

• Individual funds are captured as unique values within the Fund Source Segment.

• Donor / Gift funds may be captured as individual named Fund Source values.

• Start-up Funds, Discretionary Funds, F&A Recovery Funds, and/or other types of Funds such as Financial Aid may be summarized with individual Fund Source values.

• Fund Source values will be arranged in a hierarchy to create categorization and will connect to the Fund Type Segment.

• Individual Life Income Annuities may be captured as individual Fund Source values

Fund Source

Financial Aid

Donor / Gift

Segment








23

CoA Segment: AccountThe Rice University prototype is intended to meet the majority of the CoA requirements and capture all identified data elements.

Data Elements

Account

• The type of Account should be identified through the development of an Account hierarchy.

• Levels of the Account hierarchy may be used to support budgeting and reporting needs of the university, including the development of University financial statements.

• Accounts will be used to capture commitments / obligations.Liability

Revenue

Expense

Asset

Net Asset

Segment








24

CoA Segment: ClassificationThe Rice University prototype is intended to meet the majority of the CoA requirements and capture all identified data elements.

Data Elements

A-21

NACUBO

Classification

• Classifications are unique values that track expenditures by external reporting categories.

• The Classification Segment may be used to report on Budget vs. Actuals by functional classification such as Instruction or Administrative Support.

Segment








25

CoA Segment: ProgramThe Rice University prototype is intended to meet the majority of the CoA requirements and capture all identified data elements.

Data Elements

Center / Institute

Joint / Cross Disciplinary Degree

Product / Service

Student Program

Academic Program Program

• Unique values can be established to track unit-specific and cross-disciplinary academic programs.

• Other programs or sets of organized activities such as Student Programs (e.g. Student Counseling, Willy Week, etc.) may exist as unique values.

• Centers and Institutes may exist as unique Program values and may span multiple Organizations.

• Product lines and service categorizations may be broadly captured within the Program field.

Segment








26

CoA Segment: ActivityThe Rice University prototype is intended to meet the majority of the CoA requirements and capture all identified data elements.

Data Elements

Activity

• Activities and events that occur within or across departments, programs, and funds can be captured in the Activity Segment.

• Individual services and products may be captured by creating unique activity values.

• Specific course offerings may be captured as individual activity values.

• Individual tracking of equipment and asset expenses (e.g. maintenance) may be captured in the Activity Segment.

Course

Event / Activity / Initiative

Patents

Product / Service

Vehicle / Equipment / Instrument

Segment




Academic Term Course Location SchoolActivity Department Account Sponsor

Asset Division Account Type SportAsset Type End Date Organization Task

Award Function Patent Transaction Date (Period, Date)Budget Fund Source Person Identifier Unit



27

CoA Segment: LocationThe Rice University prototype is intended to meet the majority of the CoA requirements and capture all identified data elements.

Data Elements

Building / Lot

Location / Region

Residential College

Location

• The Location Segment provides the ability to track revenue and expenses by specific physical or operational location (e.g., garage, parking lot, residential college).

• Residential Colleges and other building may be represented by different Location values when there is need for operational location reporting.

Segment







Chart of Accounts - Rice University

Documents

Transcript of Chart of Accounts - Rice University