Building a Kuali Chart of Accounts

Vince Schimizzi, Michigan State University Claire Tyson, San Joaquin Delta College Kim Yeoh, Cornell University

Agenda I. Kuali Financial System (KFS) Key Chart Features

– Chart – Organization – Account/Sub-account – Fund/Sub-fund – Function – Object/Sub-object – Project Code – Extended Attributes

II. Laying the Groundwork

– Reporting requirements – Multiple charts – Organizational hierarchies – Security/Workflow – Chart Document Routing

III. Chart Experiences and Challenges

– San Joaquin Delta College – Cornell University – Michigan State University

Kuali Financial System (KFS) Key Chart Features

KFS Chart Features

Chart • An aggregation of related accounts (e.g. campus, auxiliary activities) • Individual charts report to higher level charts

KFS Chart Features

Organization • A unit of activity typically represented by a department (e.g. Chemistry is a department in the College of Natural Science at MSU).

• Organizational structure facilitates workflow in KFS, strengthening internal controls

KFS Chart Features

Account/Sub-account • Specific identifier for a pool of funds assigned to a specific organization for a specific function (e.g. a grant account).

• Accounts report up through organizations • Sub-accounts achieve further division of an account for internal reporting purposes

Organization Hierarchy with Accounts/Sub-Accounts

University Campus Division Department Program A Program B Account Account Sub-acct 1 Sub-acct 2

KFS Chart Features

Fund/Sub-fund • Accounts also map to sub fund groups and then to fund groups (i.e. sub-fund is an attribute of account number).

• For those that use fund accounting, an account may belong to – FUND – restricted – SUB FUND – grants / sponsored programs

KFS Chart Features

Function • Higher education function code is an attribute of account used in the creation of functional classification financial reports • Enables multiple views and levels of reporting

KFS Chart Features

Object/Sub-object • Transaction descriptor (asset, liability, fund balance, revenue, expense) • Object codes map to levels and then to consolidations • Object codes also map to object codes of higher level charts allowing for the rollup to an institutional chart for external reporting • Reports to functionality enables multiple chart of accounts

KFS Chart Features

Project Code • Specific transaction attribute • Established and approved at the organization level • Example: Inter-department project

KFS Chart Features

Extended Attributes • Can be used throughout Chart (e.g. Orgs, Accounts, Object Codes, etc.) • Implementation – Set of developer instructions to use additional table as an extension of an existing table – Can be supplemented with support tables to control related data and structure • Example – Linking otherwise unrelated organizational units

Laying the Groundwork

Laying the Groundwork

Reporting Requirements Questions related to: • Reporting – Institutional financial reporting (external) – Summarized management reporting – Departmental detail – Online queries • Structure of Institution – Campuses (organizational units) – Fund accounting • Higher Ed Functions

Laying the Groundwork

Multiple Charts Questions to ask… • Does the institution need multiple charts?

– For separate campuses – For Auxiliary operations • Will interfaced systems be able to accommodate multiple charts?

• Does there need to be a high level chart for institutional financial reporting?

Laying the Groundwork

Organizational Hierarchies Questions to ask… • Should the institution model its organizational hierarchy based on: – lines of authority – lines of business (disciplines, auxiliaries, etc.) – system security schemas – reporting requirements

Laying the Groundwork

Security/Workflow Questions to ask… • Will the established chart accounts facilitate use of the institution’s security management tool?

• Will the organizational hierarchy enable desired workflow requirements?

• How can KFS hierarchies and workflow support the institution’s internal control policies?

Laying the Groundwork

Chart Document Routing •The routing sequence of the primary chart documents occur as follows: – Account – fiscal officer, org hierarchy, campus chart manager, university chart manager, special conditions routing – Account Delegate - fiscal officer, org hierarchy, special conditions routing – Organization - org hierarchy, campus chart manager, university chart manager – Object Code - campus chart manager, university chart manager – Sub Accounts/Sub Objects - fiscal officer, org hierarchy, special conditions routing – Project Code - org hierarchy

Chart Experiences and Challenges

San Joaquin Delta College Objectives

• Purpose of a Financial System – Data for Decision Making – Financial Tracking – Categorizations – Reporting • Fulfill Institutional needs for financial data • Mirror Financial System Org Hierarchy to Operational Structure

San Joaquin Delta College Starting with the End in Mind

• Financial Reporting – Internal • Management Reports • Department Accountability • Online queries – External • GASB / FASB requirements • Federal reporting • State reporting • Other

San Joaquin Delta College

KFS Training / Implementation

• Changes – Campus buy in – Top 3 internal report wish list – Hands on Training – Old to New mapping – What stays the same

Cornell University Change Management for KFS

• Decentralized campus • Significant change (not a bad thing!) • How/when to get campus involvement – Local module teams – Start up phase planning (meetings with major campus colleges/divisions) – Demos/presentations – Kuali Days

Cornell University Reporting Requirements

• Financial reporting (external) vs management reporting • Shadow systems • Faculty reporting • “Funding Year” reporting

Cornell University Forward-looking Configuration

• Support the reporting requirements at many levels – Use of extended attributes • Standardization vs flexibility – Organization level (extended attribute) – Object codes – Project code

Michigan State University KFS Considerations

• Multiple reporting structures vs. a hierarchical organization structure in KFS.

• Object code groupings (external reporting vs. institutional budgeting vs. individual deptartment/account needs) • “User Defined” attributes • Overall change management