pa010: financial management for non-sponsored projects mgmt... · • rutgers will use 11 distinct...

PA010: Financial Management for Non-Sponsored Projects

Expectations

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Sign the attendance sheet at the beginning and end of the session.

Refrain from engaging in disruptive side conversations.

Silence cell phones, and minimize usage during training.

Check your e-mail during breaks only.

Participate actively, and share your experiences.

Complete the post-training survey prior to leaving this session.

Meet and Greet!

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Course Overview

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Course Name Financial Management for Non-Sponsored ProjectsCourse Duration 4 hours

CourseDescription

The course covers financial management processes for non-sponsored projects. Participants will learn foundational concepts related to projects in the Financial Management System (Oracle Cloud). Then, participants will learn how to perform project inquiries and cost adjustments.

TargetAudience

• RU Project Adjustments• RU Project Inquiry

Prerequisites • GN010: General Navigation in the Financial Management System

Table of Contents

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Lesson DurationCourse Introduction (Including the Icebreaker Activity) 15 minLesson 1: Introduction to Projects in the Financial Management System 30 minLesson 2: Reviewing a Non-Sponsored Project Setup 40 minLesson 3: Monitoring Non-Sponsored Project Expenditure and Revenue 60 minLesson 4: Project Adjustments 90 minCourse Conclusion 05 min

Course Objectives

Upon completing this course, you will be able to:• Describe the key concepts related to projects in the Financial Management System• Assess a project in the Financial Management System• Assess project expenditures in the Financial Management System• Assess project revenue in the Financial Management System• Adjust project costs

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Key Terms

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Key Terms DefinitionProject A project is a collection of related financial activities for one or

multiple business lines for a common objective and/or mission. Todefine financial activities in more detail, a project can be sub-divided into tasks.

Tasks Use tasks to organize work into smaller, more easily manageable units. Tasks are meaningful groups of activities that may span expenditure categories to define a division’s business objective. Tasks may aide in making decisions.

Sponsored Project A sponsored project is a project that receives funding or an award from a sponsor for research or some other specific purpose.

Non-sponsored Project A non-sponsored project is a project that is not award based. It can receive funding through internal and external sources. Spending has either minor or no restrictions.

Unit A unit is a school, institution, center, and/or a central unit that is required to produce a balanced balance sheet.

Division Use a division to group organizations into alternate hierarchies.Organization An organization is a business area with dedicated people and space.

LESSON 1: INTRODUCTION TO PROJECTS IN THE FINANCIAL SYSTEM

Cloud Financials Training

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Lesson Objectives

Upon completing this lesson, you will be able to:• Describe the key concepts related to projects in the Financial Management System• Differentiate between sponsored and non-sponsored projects• Describe the different project types for sponsored and non-sponsored projects• Describe the functionality provided by projects in the Financial Management System• Describe how transactions are charged to projects• Describe how accounting entries are created for project transactions

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What Is a Project?

• A project is a collection of related financial activities for one or multiple business lines for the same objective and/or mission. To achieve a more detailed picture of all of the financial activities, the project can be sub-divided into tasks.

• The Financial Management System uses projects and tasks to organize cost and revenue related to the project.

• Project features:– Projects are similar to the fund sources (RIAS) and

indices (Banner) that were used in the past.– A project is the highest level in the collection of related

financial activities in the Projects application.– Projects can be broken down into one or more tasks.– Transactions are charged against project-tasks and roll

up to the project level for reporting.– Reports can be generated by a project, task,

expenditure category, expenditure type, etc.

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Non-Sponsored Project209599

Task 200

Tran

sact

ions

Task 201

Task 202

Task n

Project Groups at Rutgers

Sponsored ProjectsA sponsored project is a project that receives an award or funding from a sponsor for research or other restricted purposes.

Non-Sponsored ProjectsA non-sponsored project is a project that is not award based. It can receive funding through internal and external sources. Spending has either minor or no restrictions.

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Non-Sponsored

ProjectSponsored

Project

Rutgers groups projects into two major categories:

Non-Sponsored Project Types

• Rutgers will use 11 distinct project types within the non-sponsored project type class. • The project type determines the project numbering and task structure of the project. • These project types also map to the fund sources or indices that were used in the past.

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Loans Federal Work Study Designated

StateAppropriations

(SEBS only)Future

Restricted Gifts Endowments Investment Management

Treasury Bonds

Capital RU Initiative

Non-Sponsored Project Types (Cont’d.)

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Project Type Former Fund Source

Former Index Project Numbering

Task Structure

Loans 05 series L – fund code 1 series One task per loan, fund source, or indexFederal Work Study 538 series NA 17 series One task: student aid

Designated 28/20 series R index with fund type 04 2 series

For conversion – one taskwill be expanded post-go-live to accommodate the needs and purpose of the units

State Appropriations (SEBS only) 247 series NA 29 series Multiple tasks as necessary to properly reflect

the purposes and needs of the units

Future NA NA 3 series Multiple tasks as necessary to properly reflect the purposes and needs of the units

Restricted Gifts 53 series R index with fund type 75 5 series

One task per combination of fund type, activity, and fund source (can be expanded post go-live), EOF – three tasks

Endowments

Principal: 06 series (term, true and quasi) E – fund code 6 series

Two tasks: principal and operatingOperating: 6 series R index with fund

type 75 6 series

Investment Management 068 series NA 68 series Four tasks: investment, un-invested cash,

realized gain/loss, income/expensesTreasury Bonds 08 series NA 69 series Four tasks, structure TBD

Capital 88 and 77 series P – fund code 7 series Three tasks: construction, design, and administration

RU Initiative New NA Alpha-numeric Reporting project

Non-Sponsored Project – Sample

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Sponsored Project Types

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Land Grants(Federal) Clinical Research

Grants

• Rutgers will use four distinct project types in the sponsored project type class. • The project type determines the project numbering and task structure of the project. • These project types also map to the fund sources or indices that were used in the past.

Clinical Trial

Sponsored Project Types (Cont’d.)

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Project Type Former Fund Source

Former Index

Project Numbering

Task Structure

Grants 4 series; cost share–22/23 series

R Index with fund type 02

8 series One task (named after the project)

Clinical ResearchClinical Trials

4 series R Index with fund type 2K/2P/2F

8 series One task (named after the project)

Land Grants (Federal)SEBS Only

257/267 series NA 29 series Multiple tasks as necessary to properly reflect the purposes and needs of the units

Sponsored Project – Sample

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What Functionality Do Projects Provide?

Use projects to: • Structure financial activities to support management and reporting.• Budget at the project task level, and monitor budget versus actuals in real time.

– Sponsored – Natural account level– Non-sponsored – Task level for Designated and Capital projects

• Apply transaction controls at the task level to prevent unallowable expenditures.• Collect cost and revenue as transactions are recorded.• Adjust costs on projects or between projects and the GL if necessary. • Generate invoices for billable costs or invoices independent of cost.

– Only for sponsored projects• Recognize revenue from cost or independent of cost

– Only for sponsored projects• Review detailed project transactions (expenditures, commitments, revenue, etc.).• Drill down to other Financial Management System sub-ledgers to check details

related to project transactions.

Note: GL accounting entries for project transactions are created automatically.

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Converting Active Fund Sources or Indices

• At go-live in October 2016, non-sponsored projects will be created for active fund sources or indices with…

– Non-zero balances and/or at least one transaction recorded in or after FY15– Non-zero cost or expenses incurred– Non-zero revenue or funding recorded

• …that can be categorized into any of the non-sponsored project types discussed on the previous slides.

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Note: If the fund sources or indices cannot be categorized into any of these project types and sufficient and distinct business lines exist, transactions will be charged directly to the Chart of Accounts (COA) string in the source systems and posted to the GL (bypassing the projects module).

Functionality: Sponsored Versus Non-Sponsored Projects

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Functionality Sponsored Non-SponsoredSetup

Requires an award setup in the Grants module üRequires a contract setup in the Contracts module ü üRequires a project setup in the Projects module ü üFunding allocated from an award to a project üFunding recorded as a manual revenue event üBudget entered for a project ü ü

Transaction ProcessingCosts collected against a project ü üCosts adjusted (if necessary) on a project ü üInvoices generated for a project üInvoices interfaced to Accounts Receivable (AR) for collection üRevenue recorded and/or recognized for the project ü üAccounting entries generated for transactions ü ü

ReportingReport on project performance ü ü

Key Project Responsibilities

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Grant and Contract Accounting

Controller’s Office

• All setups for sponsored projects

• All invoicing and revenue recognition for sponsored projects

• All setups for non-sponsored projects

• All revenue recognition for non-sponsored projects

University Units• Financial management of projects,

including inquiry, reporting, review, and cost adjustment (if necessary)

• Recording the receipt of funding (income) for non-sponsored projects

• Completion of an electronic form to request and expedite the creation of non-sponsored projects and related tasks

How are Transactions Charged to Projects?

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All project transactions are recorded utilizing the segments below:

• The project number to which the cost or revenue is bookedProject

• The task number on the project to which the cost or revenue is booked (Note: The fund type is hard coded to the task on setup)Task

• The natural account or the type of expense or revenue incurredExpenditure Type

• The organization that incurs the expense or revenue (unit + division + organization)Expenditure Organization

• The area serviced (the GL segment)Location

• The mission serviced (the GL segment)Business Line

• An initiative that may span multiple units (the GL segment)Activity

• A reporting project used to group related costs or revenue across project and fund types as well as the GL (optional field)RU Initiative

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RU Initiative

• The RU Initiative is a project used only for reporting across Projects and the GL. • You cannot charge transactions or create budgets for RU Initiative projects. • RU Initiative projects are used to report on related costs or revenue recorded to

different project types. – For example, you can create an RU Initiative project, tag transactions for other projects or GL

transactions, and report consolidated costs or revenue at the RU Initiative level. • This type of project is used for reporting only and is an optional field used when

recording transactions.

Source of Transactions

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Most project transactions will originate from external systems or other Financial Management System (Oracle Cloud) sub-ledgers.

Financial Aid Management System

PeopleSoft

Student Accounting System

SciQuest

Financial Management System

Expense Payables

Project Costing

General Ledger

Scholarships

Payroll Entries

Tuition Remission

Req / PO / Receipt

AP Invoice

Req / PO / Receipt

Expense Reports

Accounting Entries

Procurement

AP InvoicePinnacle

Telephone Cost

Accounting for Project Transactions – Chart of Accounts

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Segment Description LengthUnit Is a school, institution, center, and/or a central unit that is required to produce a

balanced balance sheet 3

Division Is used to group organizations into alternate hierarchies 4

Organization Is a business area with dedicated people and space 4

Location Is the area to which you are providing services and which may or may not be the geographical location of the people providing the service 4

Fund Type Is used for identifying the funding source that is used to acquire goods and services (Unrestricted, Restricted, Endowment, Plant, Loan, and Auxiliary) 3

Business Line Identifies the specific line of business (or mission) being offered 4

Account Identifies the nature of the transaction, such as expense or revenue (a natural account) 5

Activity Identifies the total activity of high-level, interdisciplinary, and strategic initiatives that span multiple responsibility centers or units 4

Intra-Unit Is a system-generated transaction (no user input is required) to balance journals for financial activity between units 3

Future Serves as a placeholder for a potential segment 5

RU Initiative Involves reporting projectand GL costs and revenue to group-related transactions (not a Chart of Accounts segment) 6

Journal entries are created automatically for transactions charged to projects and are transferred to the GL. The following is an example of how project segments drive accounting for expenses.

Mapping the Project String to the COA String

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Project

Task

Expenditure Type

Expenditure Org

Location

Business Line

Activity

RU Initiative

Project Segments

Unit

Division

Organization

Location

Fund Type

Business Line

Account

Activity

Chart of Accounts

Intra-Unit

Future

RU Initiative (Not a COA segment)

Mapping the Project String to the COA String (Cont’d.)


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Project

Task

Expenditure Type

Expenditure Org

Location

Business Line

Activity

RU Initiative

Project Segments

Unit

Division

Organization

Location

Fund Type

Business Line

Account

Activity

Chart of Accounts

Intra-Unit

Future




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Project

Task

Expenditure Type

Expenditure Org

Location

Business Line

Activity

RU Initiative

Project Segments

Unit

Division

Organization

Location

Fund Type

Business Line

Account

Activity

Chart of Accounts

Intra-Unit

Future




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Project

Task

Expenditure Type

Expenditure Org

Location

Business Line

Activity

RU Initiative

Project Segments

Unit

Division

Organization

Location

Fund Type

Business Line

Account

Activity

Chart of Accounts

Intra-Unit

Future


Knowledge Check

Select all the apply.

Projects help you:

A. Report on project financial performanceB. Review detailed project transactionsC. Budget only at the project levelD. Collect cost and revenue

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Knowledge Check

Select the correct answer.

With regard to charging costs to projects, a business line refers to:

A. Programs that may span multiple unitsB. The expenditure type (natural account) or the type of expense incurredC. The mission (business line) servicedD. The area (location) serviced

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Knowledge Check

Crossword: Fill in the answers based on the clues provided.

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Across3. Is used to group organizations into alternate hierarchies (8 letters)

Down1. Is a business area with dedicated people and space (12 letters)2. Is a school, institution, or center that is required to produce a balanced balance sheet (4 letters)

D I V I S I O N

ORGAN

ZATION

UN

T

LESSON 2: REVIEWING A NON-SPONSORED PROJECT SETUP


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Lesson Objectives

Upon completing this lesson, you will be able to:• Search for projects in the Financial Management System• Assess a project in the Financial Management System• Identify project attributes that are unique to non-sponsored projects

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Navigating to My Projects

Projects > Project Financial Management

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Searching for a Project

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Projects > Project Financial Management > Enter search criteria as needed

Demonstration Instructions

Important: Read all of these instructions before advancing to the next slide

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Scenario: Review a Non-Sponsored Project

1. Advance to the next slide

2. Press Shift + F5 to enter Slide Show mode

3. Right click on the screen and select Play

Click here to end the demonstration while in Slide Show mode

Exercise 1

Step # Sub-Step Result

Navigate to the My Projects page

1 Click the Projects tile The Projects menu expands

2 Click the Project Financial Management tile The My Projects page appears

Search for and Open a Project

3 Click the Expand Search triangle The Search region expands

4 Optional – click the Advanced Search button Additional fields appear

5 Delete the name from the Team Member field The Team Member field is cleared

6 Enter 209599 in the Project Number field Data entered in field

7 Click the Search button Project appears in the Search Results region

8 Click the Project Number link The Project opens

Review the Project

9 Review projectdetails on the Overview tab Project details reviewed

10 Click the Documents tab The Documents tab appears

11 Review details on the Documents tab Project documents reviewed

12 Click the Financials tab The Financials tab appears

13 Review details on the Financials tab Project financials reviewed

14 Click the Done button The My Projects page appears

END 15 Click the Home button The Home page appears

Scenario: Review a Non-Sponsored Project

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LESSON 3: MONITORING NON-SPONSORED PROJECT EXPENDITURE AND REVENUE


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Lesson Objectives

Upon completing this lesson, you will be able to:• Search for project expenditures in the Financial Management System• Review project expenditures in the Financial Management System• Search for project revenue in the Financial Management System• Review project revenue in the Financial Management System

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Introduction

The Financial Management System provides you the functionality to review transactions that have been charged to projects. For non-sponsored projects, these transactions include:

• Expenditure Items• Commitment Transactions• Revenue

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The Projects Overview Page

The Financials tab of the Projects Overview page provides a consolidated view of transactions charged to a non-sponsored project.

Review total recognized revenue for the non-sponsored project.

Review actual expenditures versus budgeted amounts for the non-sponsored project. 42

Review Expenditure Items

You can view a list of all expenditure items charged to the non-sponsored projects from the Manage Expenditure Items page.

To navigate to the Manage Expenditure Items page:

Navigation

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Review Expenditure Items

Enter search criteria as needed to view expenditures charged to non-sponsored projects.

Search

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Scenario: Review a Project Expenditure Item




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Exercise 2Scenario: Review a Project Expenditure Item

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Navigate to the Manage Expenditure Items tab


2 Click the Costs tile The Project Costs page appears

3 Click the Manage Expenditure Items link The Manage Expenditure Items tab appears

Search for and Open an Expenditure Item

4 Click the Advanced Search button Additional fields appear


6 Select Oracle Fusion Payables in the Transaction Source field Data entered in field

7 Select Supplier Invoice in the Document field Data entered in field

8 Click the Search button Project expenditures appear

Review Non-Sponsored Project Expenditures

9 Click Transaction Number 31007 Expenditure item opens to the General tab

10 Review details on the General tab General expenditure item details reviewed

11 Click the Costing tab The Costing tab appears

12 Review details on the Costing tab Costing details reviewed

13 Click the Adjustment History tab The Adjustment History tab appears

14 Review details on the Adjustment History tab Adjustmentdetails reviewed

15 Click the Done button Manage Expenditure Items page appears


Review Commitments

You can view a list of all expenditure items charged to the non-sponsored projects from the Review Commitment Transactions page.

To navigate to the Review Commitment Transactions page:

Navigation

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Review Commitments

Enter search criteria as needed to view commitments charged to non-sponsored projects.

Search

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Scenario: Review a Commitment Transaction




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Exercise 3Scenario: Review Commitments

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Navigate to the Review Commitment Transactions tab


2 Click the Costs tile The Project Costs page appears

3 Click the Review Commitment Transactions link

The Review Commitment Transactions tabappears

Search for Commitment Transactions

4 Click the Advanced Search button Additional fields appear


6 Click the Search button Project expenditures appear

Review CommitmentTransactions

7 Review Commitment transactions Commitment transactions reviewed

8 Click the Export to Excel button Excel document downloads

9 Open the downloaded Excel document Excel document opens

10 Review Commitments in spreadsheet Commitment transactions review

11 Close the Excel file Returned to Review Commitment Transactions

12 Click the Done button The Overview page appears


Review Revenue

Use Financials tab of the Projects Overview page to review the revenue recognized for non-sponsored projects.

Review total recognized revenue for the non-sponsored project.

Review revenue by Period to Date and by Inception to Date.

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LESSON 4: PROJECT COST ADJUSTMENTSCloud Financials Training

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Lesson Objectives

Upon completing this lesson, you will be able to:• Describe the different types of adjustments that you can perform• Describe the approval process for project adjustments• Adjust project costs

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Introduction to Project Adjustments

Previously…• Manual journal entry in the GL to

adjust fund sources or indices

Going forward…• Projects will replace fund sources or

indices and project adjustments will replace journal entry adjustments

• Ability to adjust and/or reallocate costs for non-sponsored projects

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ProjectsGL

Cost Adjustment Types

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• Transfer the entire expenditure amount from one project task to another task on the same project, or to a task on another project.

Transfer

• Split the expenditure amount charged to one project task and transfer the split amount to another task on the same project, or to a task on another project.

Split and Transfer

• Split the expenditure amount on the original project task (without transferring) to change an attribute of the transaction, for example, a natural account.

Split

Approval for Cost Adjustments

Approvals are required for the following cost adjustments:• Transfer• Split Transfer• Split

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Note: Cost adjustments are routed to the finance approver for approval.

Viewing Adjustment History for Cost Adjustments

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• The date on which the expenditure item was adjustedDate

• The person who adjusted the expenditure itemAdjusted By

• How the expenditure item was adjustedAdjustment Type

• The approval or processing status of the adjustmentAdjustment Status

• The reason that the expenditure item was adjustedJustification

Note: Whenever an adjustment is made to a project expenditure, the accounting for the original expenditure is reversed, and a new accounting entry is created for the adjustment. The GL accounting for adjustments is automatic.



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Scenario: Adjust a Project Expenditure Item




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Knowledge Check

Select the correct answer.

This cost adjustment type allows you to reallocate the entire expenditure amount from one task in a project to another task in the same project.

A. TransferB. Split and TransferC. Split

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COURSE CONCLUSIONCloud Financials Training

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Course Summary

You are now be able to:• Describe the key concepts related to projects in the Financial Management System• Assess a project in the Financial Management System• Assess project expenditures in the Financial Management System• Assess project revenue in the Financial Management System• Adjust project costs

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