Vince Schimizzi, Michigan State UniversityClaire Tyson, San Joaquin Delta College
Kim Yeoh, Cornell University
Building a Kuali Chart of Accounts
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
Division
Campus
University
Department
Program BProgram A
AccountAccount
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 RequirementsQuestions 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 ChartsQuestions 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 HierarchiesQuestions 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/WorkflowQuestions 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