Fiscal Administrators Meeting
Wednesday, November 16, 2011
South Meeting Room, Newcomb Hall
Opening Comments – Steve Kimata
· Recon@ - some statistics as of 11/15
79% of accounts have been prepared
52% of accounts have approved
Around 1300 left to be done in Medical School, but their due date is the 30th of the month
We are a little behind in getting back to everyone, we have had many questions and requests to change preparers, approvers, etc. Thank you for your patience and all the great work you and your colleagues have done.
The system generated emails are not working properly. The team is working to fix them at this time.
(Guest Speaker) Vice President and Chief Financial Officer – Yoke San Reynolds
· Will discuss (1) new leadership and (2) Internal Financial Model – how it will impact all of us and (3) projects she is working on.
· Yoke San and her managers – working on
- how to generate unrestricted revenues, increase productivity, cut costs, invest in Financial Aid, strategic balance sheet analysis.
- Support VPR’s objectives – expanded research to commercialization, Engineering looking at ways to get new sponsors for funding
- Enrollment growth of 1500 affects all areas of the University. Planning for impact on Housing, Dining, Parking & Transportation, Mail, other of our areas.
- Second daycare facility has opened for infants/toddlers, increase of 77 children
· We have a super new management team – President Sullivan, Michael Strine and John Simon
- Sullivan “Laws”
Don’t hide bad news
Good stewards of resources, people first
Respect, value people’s time in meaningful work
- Sullivan perceptive of form and function – put Provost, Exec VP and President on same floor in Madison Hall.
- Sponsored Research – Is our 2nd largest revenue stream, after tuition and fees, despite our not having a presence in Washington DC. Our own representative was surprised to hear that UVa gets federal money. President Sullivan tries to go to DC once a month to keep the federal government aware of UVa’s interests. She is building a working relationship with, e.g., Senator Mark Warner with regards to UVa’s needs.
- Michael Strine – wants us to get more involved in compliance, such as training for high risk areas.
Michal has a wonderful combination of experiences to bring to his role at UVa. He was a faculty member at the University of Colorado in Boulder and at the University of Denver. He has 10 years of experience in state government. He understands complex issues and can reduce them to the most important sound bites. Michael is a long-term thinker focused on strategic goals. He sees the need for more metrics to use in program assessment of original objectives to determine whether to change focus, modify objectives, or continue on the same course. An example is to use metrics to re-evaluate Access UVa now that we have three years of graduates who have been through the program.
· The new financial model - will provide the schools with their revenues so that they will be able to pay for all their expenditures. The Deans will be in charge of their Destiny so they can make informed decisions based on budget management at projected enrollment levels, program offerings, people and payroll, space, maintenance, utilities, and services needed. Revenues come in over time, so all the dollars may not be available at the beginning of the year. Cash management decisions may include getting loans from Treasury’ central bank.
Schools will take on some functions that are currently performed centrally. Other functions will continue to be performed centrally. Some services may be required but schools may be able to opt out of using other services.
Deans will get to see their whole economic picture. Their business administrators will have lots of opportunities to learn new skills. On a more practical level, there will be a need to create new reports. Central departments can’t walk in the departments’ shoes so central cannot develop the reports that the departments will need. Each school may choose to expand their reporting to the point of creating financial statements, such as income statements and balance sheets.
The new financial model includes incentives for Deans and departments to be entrepreneurial, partnering with external parties including corporate sponsors to generate extra dollars to shore up their budgets and advance their mission.
Q & A
Example of an incentive? Response: New Hampshire which charges schools and department for the space they occupy. There has been a reduced need to construct new space.
Do other schools use the same model? Response: Michigan, Cornell, and John Hopkins have moved away from using a centrally managed budget model to some form of responsibility center management or activity-based management where schools and departments have authority and accountability for their revenues and expenses and mission accomplishments. The approach is over 30 years old.
The timeline? Response: Timeline for implementing our new financial model is to have it up and running for FY14.
How will the 26% cap on administrative recoveries in the F&A rate affect the schools when the new financial model pushes indirect costs to the schools? Response: The F&A distribution will have to be discussed. Dollars that go back to the schools may have to be used to pay for the indirect costs like facilities costs. Although the calculated administrative rate is over 30%, the federal government restricts the recovery to 26%. The schools will need to make decisions about what the F&A will pay for, whether the Dean chooses to use all the F&A to pay for all the O&M costs and give nothing to the Chairs (or the Dean could give some F&A to the Chairs and find another way to pay for the remaining indirect costs). The F&A costs were first paid with central funds, and after the fact being reimbursed through the F&A rate for the portion allocated to actual sponsored projects.
Comment: Some units may not be able to replace federal funding with corporate funding, e.g. in basic sciences. Response: Federal funding for research is not expected to grow. Schools may seek to increase the number of awards with agencies other than NIH or NSF or they may seek to increase public/private partnerships in efforts similar to pharmaceutical drug studies.
Accounting Services – Tommye Arnold
· Work Study Corrections – must be moved off by end of this month.
· University owned Cell Phones – IRS has given guidance, incidental use is ok, do not have to be taxed back. Effective January 1, 2012, form will have to be completed UVA Funded Cell Phone Agreement when purchasing a phone. This form can be found on the Forms Directory under the Comptroller. Anyone who currently has a University owned phone, should sign off on form to keep in your department, but it is not required.
· Closing Projects in Oracle – a form is on the Forms Directory under Accounting Services, projects can only be closed in Grants Accounting, nothing is ever closed in GL. Need to check periodically, things could still hit there.
· GL Journals on last day of the month – best to wait until next morning to do these. They will forward through workflow if you process them, but will have to be sent back to have the month changed.
Assistant VP for Budget and Financial Planning – Melody Bianchetto
Upcoming Budget Cycle – Some changes this year as we are in a transition year as we plan/develop a new budget model
· Budget assumptions developed and taken to the BOV in November instead of February. Under a new budget model, the assumptions will be developed with greater collaboration and will include more information that will be critical to schools and units who are managing their own revenues. For example, compensation changes, fringe benefits, etc. We will be able to make earlier compensation decisions as our workforce becomes primarily University Staff, versus the way we have had to wait until the General Assembly finalizes the Appropriation Act previously.
· Narrative, Addenda, Forms, etc. – will be uploaded in a share point website, budget developers will have access. The site, while portions will still be under development, will go live December 1st. Two of the forms (Tuition Request and Addenda Request) will be web forms, rather than excel templates. The Budget Office will send out notification when the new budget development portal is ready.
· Budget kickoffs will be in first week of January. January 4th in the morning for areas reporting to the President; January 4th in the afternoon for areas reporting to the Provost; and January 6th in the morning for areas reporting to the Chief Operating Officer. Invitations were sent out right before Thanksgiving
· Rolling calendar of due dates, February or March to EVP, meeting for each VP or Dean will be a week to 10 days later
· The request for increased tuition/fees will be due at the same time as all other budget submission items.
· Will communicate addenda decisions earlier, in late April/early May. Considering how to make the process more transparent.
Information Technology Services (ITS) – Shy Hicks
· Encumbrance Issues in Production Continue….
We were not able to liquidate the biweekly encumbrances before we closed October. However, the encumbrances for the monthly payroll were correct. As I discussed last month, we have been unable to terminate employees because the Labor Distribution module is not recognizing that the biweekly encumbrances have been relieved. Despite this service request being a severity one (the highest level) for more than two weeks, we are still working with Oracle to get a fix that will relieve the encumbrances so that we can terminate employees. We will know by the end of the week whether the latest fix is going to work. If it does, we will move the fix to Production on the last Sunday of this month and your encumbrances should be correct when we close November. However, if we cannot liquidate the biweekly encumbrances by the end of November, you will again have to ignore those encumbrances when reconciling your accounts. I promise that we are doing everything possible to get this resolved before month-end.
Assistant VP for Treasury Management and Fiscal Planning – Gene Crouch
· Petty Accounts – Updated all policies, they are broken down into 3 policies, in the past, just one. They are approved and out. We will start visiting departments next month, may be able to close some accounts that are not being used. Will be streamlining and making paperless soon.
· Special Cash Advances – Should now come to Treasury, not Comptroller for approval. Still being processed in Comptroller’s Office.
· Cash – A counterfeit $5 bill was passed here at UVa…be on the look-out for counterfeit bills, we have been instructed by the UVA POLICE Department to let units know if they come across a counterfeit bill that they should immediately call 911 (no matter how small the counterfeit bill). Please contact Gene Crouch in Treasury Management as well.
Office of Sponsored Programs – Andrew Bedotto
STATISTICS - Number of LD Adjustments affecting sponsored projects
· 30/day (this includes expenditure type change for Graduate Assistants from October biweekly payroll)
· 120 in the first month
VERY FEW REJECTIONS!!!!
ACTIONS we can take from the Integrated System worklist, not from the emails you receive:
· REJECT (OSP)/CANCEL/FINISH- All of these delete the batch entirely. If any of these options are selected, you’ll have to key the batch again.
· SUBMIT- self explanatory
· APPROVED(OSP)- self explanatory
· RETURN WITH COMMENTS- OSP returns a batch for additional information.
After providing the additional information in the comment box, don’t finish, rather, submit the batch again, unless you want to delete the batch. OSP reviewers do not see the batch in the workflow once it is returned for comments so we won’t know if you have accidentally clicked finish instead of submit.
· COMMENT BOX- The OSP reviewer and the creator of the batch have a terse and meaningful exchange about the LD adjustment. It is part of the supporting documentation of the batch, so please do not erase the comments.
o Include the reason code from the list or provide detail if no reason code fits
o Include the employee’s role, not his working title, unless it accurately describes the his role on the project
§ Staff and Wage employees: their role should be technical in nature, not departmental support, in which case CAS issues arise and require additional documentation before charging the grant. In this regard, consider clerical/fiscal personnel as well as LSP/departmental computer support personnel.
LD EXENDITURE TYPE CHANGES IN RESPONSE TO PAYROLL PROCESSING ERROR
(Biweekly Payroll Period 10-Oct-11 to 23-Oct-11)
· Departments responsible for changing non-student expenditure types when appropriate
· Use reason code 12 “Other” with a brief explanation including “due to payroll processing error”
· 1,200 STILL NEED TO BE CHANGED
· 2 Implications for OSP:
o Effort Reporting- Only GRA/GTA expenditures included in GRA reports
o Tuition Remission- Without GRA expenditures, tuition remission is not allocable to a sponsored project.
Fixed Assets – Gary Young
The workflow for PO’s using expenditure types that contain “Eq Capital” in their names will soon begin routing to Donna Cox in the Fixed Assets Accounting group. (“Eq capital” refers to capital equipment expenditure types.) The accurate use of these expenditure types is critical to the University’s accounting and financial reporting. So once the new routing begins, if an expenditure type is used incorrectly, Donna will reject it back to the department to be corrected. If you have questions about this, or the coding of capital equipment, please call Donna at 4-4323.
· Announced the conversion of 38 non-catalog vendors to electronic purchase order delivery in the Marketplace. Departments will no longer have to deliver orders manually to these vendors, saving time and resources. This conversion will electronically deliver approximately 6,000 purchase orders per year.
We recommend shoppers closely review purchase order notifications for delivery method and fully describe the products and services being purchased on non-catalog purchase orders to avoid vendor confusion. If your department has any questions regarding electronic delivery of purchase orders or suggestions of other vendors you would like converted, please contact Charles Kidd at email@example.com or 434-924-3507.
· Furniture – we will remove from restricted items, this will occur around December 1st. Please think about the description used when ordering, this will now go directly to the vendor, and they need to understand what is being ordered.
· Travelectra – test system set up in December, hope to roll out in January or February, we have asked them to do a pre-session in February.
· Please remember to send receipts in with travel reimbursements.
· Matt Marshall and Wanda Taylor have left Procurement.
The December meeting is canceled. The next meeting is scheduled for Wednesday, January 18, 2012, at 10:00 am in the South Meeting Room, Newcomb Hall.