Medical College of Georgia

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Medical College of Georgia
Finance Division Fiscal Affairs Committee
(FAC) Town Hall Meeting
November 13, 2003
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Agenda

• Meeting Objectives
• The Finance Division
• Overview of the Fiscal Affairs Committee (FAC)
• Budget Checking Initiative
• Data Validation Initiative
• Other Pending FAC Initiatives
• Next Steps for Campus Users
• Questions and Answers

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Meeting Objectives

• Increase awareness of key Finance initiatives
• Educate users about pending business practice
  modifications
• Solicit increased Campus feedback and
  participation in financial processes
• Address Campus questions and concerns

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The Finance Division
Diane Wray Vice President of Finance / Chief
Financial Officer
Controllers Office
Supply Administration
Human Resources
Budget Management and Cost Management
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The True Finance Organization
School of Allied Health
GCHC
Grants Contracts
Diane Wray Vice President of Finance / Chief
Financial Officer
Research
University Advancement
School of Medicine
School of Dentistry
Internal Audit
GA War
Information Technology
Executive Management
Auxiliary Enterprises
External Affairs
Controllers Office
Supply Administration
Human Resources
Budget Management and Cost Management
Academic Affairs
Facilities Management
Student Services
Graduate Studies
School of Nursing
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The Fiscal Affairs Committee

• Objective To promote the collaborative effort
  and open communication necessary to effectively
  address MCGs most critical issues related to the
  Finance Organization.
• Rationale To be truly successful, the staff of
  the Finance Division, its customers, and other
  administrative units must work together
  effectively.
• Process Weekly meetings on Tuesday mornings
  followed by review and comment on discussion and
  decision summaries ad hoc sub-committee meetings
  as necessary.

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The Fiscal Affairs Committee
Roster / Participants

• Diane Wray, Vice President for Finance / Chief
  Financial Officer
• Tim Walsh, Office of the Chief Financial Officer
  (Chair)
• Deb Barshafsky, Executive Assistant to the
  President / Director, Institutional Research
• Beth Brigdon, Vice President for Information
  Technology / Chief Information Officer
• Joel Covar, Director of Operations, School of
  Medicine
• Chanda Crisp, Manager, Fiscal Affairs GCHC
• James Harris, Director, Supply Administration
• Cathy Holley, Cost Manager, Administrative
  Services
• Kelly Callaway, Fiscal Affairs Analyst, School of
  Medicine
• Pam Newman, Auditor 4, Internal Audit
• Susan Norton, Director, Human Resources
• Marsha O Connor, Associate Director, Grants
  Contracts
• Robert Prescott, Information Analyst, Information
  Technology Division
• Gordon Prettelt, Project Coordinator,
  Controllers Office
• Chris Snellings, Deputy Controller, Controllers
  Office
• Russ Williams, Director, Administrative Services

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The Fiscal Affairs Committee
Initial Objectives

• Fiscal Year 2003 audit preparation
• Fiscal Year 2003 close and financial report
  preparation

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The Fiscal Affairs Committee
Current Major Initiatives

• Zero Tolerance Elimination of Budget Checking
  Overrides
• PeopleSoft Data Validation

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The Fiscal Affairs Committee
Current Major Initiatives

• Zero Tolerance Elimination of Budget Checking
  Overrides
• PeopleSoft Data Validation

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Zero Tolerance-Budget Checking
MCG business processes that typically result in
budget checking overrides
Payroll
Direct Check Requests
Purchase Orders / Requisitions
Purchasing Cards
Telephone Bills
Refer to Appendix 1 for typical budget checking
errors and appropriate resolutions
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Zero Tolerance-Budget Checking
Issue Overview

• Previous practice The Finance staff would
  override budget checking errors to facilitate the
  processing of transactions
• Change rationale The Finance staff should not
  make decisions for Campus units that impact the
  budgets of those units
• New practice The Finance staff will stop
  transactions until an appropriate solution is
  identified

The budget checking module within PeopleSoft can
be a powerful control tool if used properly
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Zero Tolerance-Budget Checking
Anticipated impact on Campus users

• Short-term
• More calls from Accounts Payable and Purchasing
• Deeper involvement in budget checking resolution
  processes
• Delayed processing of certain transactions
• Long-term
• Enhanced financial management practices
• Greater awareness of budget position

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Zero Tolerance-Budget Checking
Initial exceptions to zero tolerance

• Purchase orders / requisitions
• GCHC transactions
• Suspense accounts within Finance

Transactions that force an account into deficit
will not be overriden
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Zero Tolerance-Budget Checking
Next steps for Campus users

• Resolve your budget checking errors promptly
• More importantly, avoid budget checking errors in
  advance
• Seek support from Finance as necessary (We are
  here to help you!)
• Attend budget checking training sessions

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Zero Tolerance-Budget Checking
Upcoming Training Sessions

• November 18 1000 a.m.
• November 19 200 p.m.
• Location Human Resources Training Room, Annex

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The Fiscal Affairs Committee
Current Major Initiatives

• Zero Tolerance Elimination of Budget Checking
  Overrides
• PeopleSoft Data Validation

Financial activity within the accounts of
academic and administrative units must be
monitored by those individuals with first-hand
knowledge of the transactional detail and
rationale underlying that activity.
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Data Validation
Historical Context

• Implementation problems
• Deficient reports
• Campus disenchantment with PeopleSoft

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Data Validation
Historical Context
Present / Future

• Implementation problems
• Deficient reports
• Campus disenchantment with PeopleSoft

• Improved financial processes
• Enhanced reports
• Reengagement of the Campus in PeopleSoft!!

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Data Validation
Facts to consider

• PeopleSoft is the official repository of MCG
  financial transactions
• PeopleSoft Financials and PeopleSoft HRMS provide
  the source data for all MCG financial reports,
  including reports for audit and compliance
  purposes
• Management across Campus is accountable for the
  financial performance of their respective units
  as reflected in PeopleSoft
• USG and MCG made a substantial investment to
  implement PeopleSoft it is critical that
  institutional personnel maximize the impact of
  that investment

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Data Validation
Overview of the Current Initiative
Objective

• Confirm the integrity of MCG data within the
  PeopleSoft Financial System

Process

• Campus-wide review of PeopleSoft data
• Written certification of completion by each
  department

Process

• Distribution of request to Campus November 10,
  2003
• Deadline for return to Office of the Chief
  Financial Officer December 5, 2003

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Data Validation
Role of End Users

• Review all activity within the PeopleSoft
  accounts of your units
• Seek help from Finance, as necessary
• Document any exceptions on the Certification
• Sign and return the Certification (department
  chairs and administrative unit directors)
• Provide feedback to Finance about potential
  process improvements and incremental report needs

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Data Validation
Role of Finance Staff

• Process Campus transactions accurately and
  quickly
• Supply necessary information to end users within
  reports
• Ensure that users have necessary PeopleSoft
  access
• Support end users give instructions and answer
  questions promptly

www.oacs.mcg.edu/peoplesoft/
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Data Validation
The Certification Statement
Personnel within the ______________ Department
have reviewed all transaction detail within our
PeopleSoft accounts for the period July 1-October
31, 2003, and we have either confirmed the
validity of the transactions or submitted
inquiries to members of the Finance Division.
Name
Signature
Department
Date
Exceptions
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Data Validation
Exception examples

• Invalid charge for supplies -- 457.50 on
  September 15, 2003 to CFC __________________ (see
  attached documentation).
• Detailed support is not available for charge
  500.10 on August 30 to CFC ________________ (see
  attached documentation).
• I dont have access to the necessary data
  because it is included within Report
  _________________.

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Data Validation
The Distribution Process (e.g. School of
Dentistry)
Department 1
Department 2
Office of the Chief Financial Officer
Deans Office
Department 3
Department 4
Timing On or around November 13
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Data Validation
The Return Process (e.g. School of Dentistry)
Department 1
Department 2
Office of the Chief Financial Officer
Deans Office
Department 3
Department 4
Timing To Office of the CFO by December 5
(administrative units) or December 12 (academic
units)
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Data Validation
Key PeopleSoft Reports
o       Budget Transaction Detail Report o      
Appropriation Status Report o       Department
Report (personal services only) o       Grants
Administrator Report o       Grants Administrator
Report Detail o       Certain queries
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Data Validation
Sample validation steps

• After hard close of a given month, print Budget
  Transaction Detail (BTD) Report and Appropriation
  Status (AS) Report for Resident Instruction (RI)
  accounts
• Review charges per the BTD Report and the AS
  Report for reasonableness compare to other
  financial records as appropriate
• Print Department Report or a valid PeopleSoft
  query
• Review personal service charges per Department
  Report or query and compare to expectations
• Print and review Grants Administrator Report and
  Grants Administrator Report Detail as appropriate
  for sponsored accounts (Department Report should
  agree with detail of personal service charges on
  the Grant Administrator Report)
• Communicate questions to the Campus Response Team
  at www.oacs.mcg.edu/peoplesoft/ promptly
• Sign certification statement confirming that you
  have performed the steps described above

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Data Validation
Frequently Asked Questions

• If I am regularly reviewing my units data within
  PeopleSoft, do I need to do it again using the
  recommended methods?

• No, the method described here represents
  guidance, not mandatory procedure.

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Data Validation
Frequently Asked Questions

• What should I do if I have questions as I review
  the data within the accounts of my unit?

• Contact the Campus Response Team (CRT) at
  www.oacs.mcg.edu/peoplesoft/.

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Data Validation
Frequently Asked Questions

• What should I do if I am still uncomfortable
  certifying our data after receiving help from
  Finance?

• Note exceptions, issues, and concerns on the
  Certification, sign the Certification, and return
  the Certification to Finance through appropriate
  channels

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Data Validation
Next steps for Campus users

• Respond to the data validation request in
  November
• Reconcile your PeopleSoft activity regularly
• Seek support from Finance as necessary (We are
  here to help you!)

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Data Validation
Upcoming End User-Assistance Sessions (By
Appointment)

• November 12 100-400 p.m.
• November 14 1200-200 p.m.
• November 14 200-400 p.m.
• November 17 200-400 p.m.
• November 18 200-400 p.m.
• November 19 900-1100 a.m.
• November 20 200-400 p.m.
• Location Human Resources Training Room, Annex

Please sign up for sessions at http//www.mcg.edu/
hr/training/regform.htm
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The Fiscal Affairs Committee
Pending Major Initiatives

• PeopleSoft Security / Access Control
• MCG Management 101
• PeopleSoft Reports Committee

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The Fiscal Affairs Committee
Pending Major Initiatives

• PeopleSoft Security / Access Control
• MCG Management 101
• PeopleSoft Reports Committee

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The Fiscal Affairs Committee
Pending Major Initiatives

• PeopleSoft Security / Access Control
• MCG Management 101
• PeopleSoft Reports Committee

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The Fiscal Affairs Committee
Pending Major Initiatives

• PeopleSoft Security / Access Control
• MCG Management 101
• PeopleSoft Reports Committee

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Next steps for Campus users

• Provide feedback to the Finance Division
• Engage in MCGs financial processes and
  initiatives
• Look for updates from the Fiscal Affairs Committee

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Questions Answers

• ?

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Medical College of Georgia
Finance Division Fiscal Affairs Committee
(FAC) Town Hall Meeting
Thank you for coming!!!
November 6, 2003
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Common Error Messages from the PeopleSoft Budget
Checking Module (BCM)What They Mean and What To
Do About Them.
Appendix 1
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What does BCM do?
Appendix 1

• Determines if budget checking applies to the
  transaction
• Are revenue and expenditure budgets affected?
• Checks for valid dates
• Validates the account
• Makes sure it is not a budget only account

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What does BCM do?
Appendix 1

• Determines which budget line to use
• Which budget ledger to update?
• Org, Approp, Revest, Project/Grant
• Is there a valid chartfield combination?
• Checks the spending authority
• Approp and Project/Grant budgets do not allow
  overdraft
• Org and Revest budgets normally allow overdraft

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BCM Status Codes
Appendix 1

• There are 53 BCM status codes in PeopleSoft
• BE SPECIFIC!!
• Almost all BCM errors at MCG are one of these 20
  common errors

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A Budgetary Account Only
Appendix 1

• Cause
• The transaction contains an account that has been
  designated as a Budget Only account (ex.
  511000)
• Resolution
• Use a different account (ex 511100)
• Tip
• All Revenue and Expenditure accounts that end
  with 000 are Budget Only

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(No Transcript)
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F Org Budget Data Not Found
Appendix 1

• Cause
• There is no Org budget for the chartfield
  combination in the transaction
• Resolution
• Check the chartfields for accuracy, or
• Post a new Org budget journal (Budget Analyst)
• Tip
• To view valid Org budgets, run the Org Budget
  Status Report (GogtProcess Financial
  InformationgtAnalyze Controlled BudgetsgtUsegtOrganiz
  ation Budget Status)

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G Revenue Estimate Data Not Found
Appendix 1

• Cause
• There is no REVEST budget for the chartfield
  combination in the transaction
• Resolution
• Check the chartfields for accuracy, or
• Post a new REVEST Budget Journal (Budget Office)
• Tip
• Run the Revenue Estimate Budget Status Report
  (GogtProcess Financial InformationgtAnalyze
  Controlled BudgetsgtUsegtRevenue Estimate Status)

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H Project/Grant Data Not Found
Appendix 1

• Cause
• There is no Project/Grant budget for the
  chartfield combination in the transaction
• Resolution
• Check the chartfields for accuracy, or
• Post a new Project/Grant Budget Journal (Grants
  Contracts/Budget Office)
• Tip
• Run the Project/Grant Budget Status Report
  (GogtProcess Financial InformationgtAnalyze
  Controlled BudgetsgtUsegtProject/Grant Budget
  Status)

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T Project/Grant Data Not Found
Appendix 1

• Cause
• The Project ID used does not exist in the Project
  Table
• Resolution
• Change the project id to a valid code, or
• Establish the Project/Grant ID in the Design
  Chartfields panels (OGC/Comptroller)

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I Insufficient Appropriation
Appendix 1

• Cause
• The remaining spending authority in the Approp
  budget was not sufficient to cover the
  transaction
• Resolution
• Change the chartfields to use a different approp
  budget, or
• Enter a budget journal to increase the spending
  authority (Budget Analyst)
• Tip
• To view valid Approp budgets, run the
  Appropriation Budget Status Report (GogtProcess
  Financial InformationgtAnalyze Controlled Budgetsgt
  UsegtAppropriation Status)

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I2 Appropriation is Frozen
Appendix 1

• Cause
• The chartfield combination on the transaction
  points to an Approp budget that has been frozen
• Resolution
• Change the chartfields to use a different Approp
  budget, or
• Post a new budget journal to unfreeze the Approp
  budget (Budget Analyst)
• Tip
• Be nice to your Budget Analyst

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K2 Organization Budget is Frozen
Appendix 1

• Cause
• The chartfield combination on the transaction
  points to an Org budget that has been frozen
• Resolution
• Change the chartfields to use a different Org
  budget, or
• Post a new budget journal to unfreeze the Org
  budget (Budget Analyst)

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L Insufficient Proj/Grant Budget
Appendix 1

• Cause
• The remaining spending authority in the Grant
  budget was not sufficient to cover the
  transaction
• Resolution
• Change the chartfields to use a different Grant
  budget, or
• Enter a budget journal to increase the spending
  authority (OGC/Budget Office)
• Tip
• Run the Project/Grant Budget Status Report
  (GogtProcess Financial InformationgtAnalyze
  Controlled BudgetsgtUsegtProject/Grant Budget Status

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L2 Project/Grant Budget is Frozen
Appendix 1

• Cause
• The chartfield combination on the transaction
  points to a Grant budget that has been frozen
• Resolution
• Change the chartfields to use a different budget,
  or
• Post a new budget journal to unfreeze the Grant
  budget (OGC/Budget Office)

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N Not Budget Checked
Appendix 1

• Cause
• The transaction either
• Has never been budget checked, or
• Is in a group of transactions where other lines
  failed, but this one would have passed, or
• The BCM process ran, but detected a severe error
  which did not update the status
• Resolution - ????

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Q Requisition Over LiquidatedR Purchase
Order Over Liquidated
Appendix 1

• Cause
• The purchase order exceeds the requisition or the
  voucher (invoice) amount exceeds the purchase
  order amount by more than 10
• Resolution
• Investigate and inform the department and/or
  purchasing, then
• Re-enter the amount within the tolerance limit,
  and/or
• Enter a new voucher line charging the difference
  to a another budget (or budget period)
• Speak with Finance representatives

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S Project/Grant is Required
Appendix 1

• Cause
• Certain Approp/Org budgets require a project id
  for all transactions (Cost Sharing, Unexpended
  Plant Projects)
• Resolution
• Change the chartfields to point to a different
  budget, or
• Enter the appropriate project id in the
  transaction

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(No Transcript)
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W Transaction not Allowed for FY
Appendix 1

• Cause
• Each transaction type (Req/PO/etc) has beginning
  and ending dates for which the transaction is
  allowed
• The transaction date or budget period is in a
  prior or future fiscal year that is closed
• Resolution
• Change the transaction date or budget period, or
• Change the Budget Transaction Control Dates
  (Comptroller)

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X Outside Appropriation Budget DateX3
Outside Organization Budget DateX5 Outside
Proj/Grant Budget Date
Appendix 1

• Cause
• Every budget journal has a beginning and ending
  date.
• Each time a budget journal is posted, these dates
  override all previously posted budget dates.
• Transaction accounting dates must fall between
  the beginning and ending dates of the
  corresponding budget

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X, X3, X5 (continued)
Appendix 1

• Resolution
• Change the accounting date of the transaction, or
• Post a new budget journal with appropriate
  beginning and ending dates (OGC/Budget Office)
• Tip
• DO NOT use accounting/transaction dates that are
  not within the current period (month).

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(No Transcript)
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Y Invalid Project/Grant Date
Appendix 1

• Cause
• The accounting date of the transaction is not
  within the start and end dates on the
  Project/Grant Chartfield Panel
• Resolution
• Change the transaction/accounting date, or
• Change the start or end dates on the
  Project/Grant chartfield panel (OGC/Comptroller)

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(No Transcript)
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V Valid Budget Check
Appendix 1

• Cause
• Somebody may have done something right!
• Resolution
• Make sure its right, then pat them on the back
• Tip
• Just because its valid, doesnt mean its correct!
• Celebrate anyway!

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Appendix 1
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One More Tip
Appendix 1

• Transactions may have more than one budget
  checking problem. However, they can only have
  one BCM error status. Therefore, resolving one
  error may only reveal another problem.