Kuali Days Conference 11/13/2007

1. Kuali Days Conference11/13/2007 Labor Distribution Module Sterling George, Indiana University Marcel Villalobos, University of Arizona Suzanne Zimbardo, University of Arizona

2. Labor Distribution Module Agenda Topics • Labor Distribution – Release 2.0 / Release 3.0 • Labor Distribution Overview • Demonstration • Effort Certification

3. Labor Distribution ModuleRelease 2.0 Processes • Labor Ledger Scrubber • Labor Ledger Poster • Labor Ledger Year End – Creation of Inception to Date Beginning Balances e-Docs • Salary Expense Transfer (ST) • Benefit Expense Transfer (BT) • Labor Ledger Correction Process (LLCP) • Labor Ledger Journal Voucher (LLJV)

4. Labor Distribution ModuleRelease 2.0 • Year End Salary Expense Transfer (YEST) • Year End Benefit Expense Transfer (YEBT) Balance Inquiries • Account Status (Base Funds) • Account Status (Current Funds) • Calculated Salary Foundation • Employee Funding • July 1 Position Funding • Labor Ledger View • Labor Ledger Pending Entry • Position Inquiry

5. Labor Distribution ModuleRelease 2.0 Ledger Tables • Labor Ledger Detail • Labor Ledger Balance Maintenance Tables • Labor Benefits Calculation • Labor Benefits Type • Labor Object Code • Labor Object Code Benefits • Labor Position Object Group Labor Reports • Labor Account Transactions

6. Labor Distribution ModuleRelease 3.0 Processes • Effort Certification Automated Report Period Update Process • Effort Certification Batch Process • Effort Certification eDoc Create Process • Payroll Accrual Program e-Docs • Effort Certification • Effort Certification Re-Create

7. Labor Distribution ModuleRelease 3.0 Inquiries • Outstanding Effort Certification Forms by Organization • Outstanding Effort Certification Forms Maintenance Tables • Effort Certification Automated Report Period Definition • Effort Certification Report Period Definition • Effort Certification Report Period • Effort Certification Report Type • Effort Certification Report Period Status

8. Kuali Accounting Cycle Diagram

9. Labor Distribution – General • Labor ledger contains detail salary and wage by person, position, type of pay, and pay period – benefits are aggregated by accounting string • Payroll encumbrances recorded in labor ledger as internal encumbrances – updated with each payroll closing • Two views of Labor – (AC) based on time of posting or (A2) when effort occurred • Accounts Not Accepting Fringes must Identify an Account that can accept Fringes • Sub Funds can be set up to Not Accept Wages • Document Types can be established for Payroll Types – Normal Pay (PAY), Payroll Cancellations (PAYC), Payroll Accruals (PAYA), etc… • Entries processed by the labor poster are aggregated and feed the general ledger • When Labor transactions reach the GL, offsets are specified by Document Type – i.e., PAYC to hit Cash directly, PAY to run through Salaries Payable, etc…

10. Labor Distribution – Maintenance Tables • Payroll Object Codes report to Levels which report to Consolidations • 2000 Academic Salaries -> Academic Salaries (ACSA) -> Compensation (CMPN) • 2500 Clerical Professional -> Bi-Weekly Salaries (BISA) -> Compensation (CMPN) • 3000 Non-Student Hourly -> Hourly Compensation (HRCO) -> Compensation (CMPN) • 5625 Fringe Benefits –> Benefits (BENF) -> Compensation (CMPN) • Payroll Object Codes are assigned Benefit Types • 2000 Academic Salaries has Benefits Types of FICA (F), Fringe Benefits (G), and Retirement Exempt (R) • Benefit Types are assigned Percentages and Object Codes each Fiscal Year • FICA (F) – 7.07% on Object Code 5760 • Fringe Benefits (G) – 12.74% on Object Code 5625 • Retirement Exempt (R) – 18.74% on Object Code 5772

11. View Kuali Labor Distribution • E-Docs • Balance Inquiries • Processes

12. Labor Distribution – Enhancement Requests • Labor Ledger Details by Pay Period and possibly Earn Code for ST and BT • Additional Data Elements in Detail Labor Ledger • Error Certification on Salary Transfer • Fringe Benefit Re-Distribution • Benefit Transfer by Person • Flat Rate Fringe Benefit by Account

13. Labor Distribution – Enhancement Requests (Cont.) • Enhancements to Effort Certification • Route to PI • Identify Posting and Service Dates • Display Additional Pay • Time Paid vs. Gross Pay • Move Percents by Period

14. Questions?

15. Kuali Days Conference11/13/2007 Effort Certification Scheduled for Kuali Release 3.0

16. Effort Certification Overview • KFS Effort Reporting system is fully integrated with the KFS Labor Ledger • Creates routable Effort Report electronic documents based on Labor Ledger data • Reporting periods can be customized by institution • Reports can be approved as generated, or with changes. Changes create automatic payroll transfers in the Labor Ledger

17. Effort Certification Process Process of generating Effort Reports • Effort Certification Administrator logs into the system and instructs it to send out the Effort Certification Documents. • This is the Effort Certification Batch Process • The time periods for certifications are defined by the institution • At this time, Labor Ledger Salary Transfers are locked for the period. Any changes must be made on the Effort Certifications that have just been sent. • Effort Certifications are then either approved as-is, or can be changed.

18. Effort Certification Process (Cont.) • If the Effort Certification is approved as-is, the accounting is unchanged and the report is complete. • If the Effort Certification is changed and fully approved, a Salary Transfer Document is automatically generated by the system to change the affected accounts. • These automatic Salary Transfers book to the last month of the reporting period • After an Effort Certification is fully approved and completed, changes cannot be made for that period except in special circumstances. • The Effort Certification Re-create Document is used for this

19. Relationship between Effort Reporting and Salary Adjustments in Labor Ledger Effort Report Batch Process Effort Report Fully Approved Window of using a Salary Transfer Document for adjustments Effort Certification Document complete. Cannot make changes to salary via Salary Transfer or Effort Certification. Must contact administrator for an Effort Certification Re-create. Effort Certification Documents sent. Cannot use a Salary Transfer to move salary. Must change the Effort Certification which will spawn an automatic Salary Transfer.

20. Effort Certification Re-create • Effort Certification Re-create Documents are used on an exception basis to generate a replacement Effort Report • To replace a previously certified Effort Report • Previously certified periods are locked in Labor Ledger and Salary Transfers are not allowed • Requires adequate justification to meet audit risk

21. Effort Certification Re-create - Request • Special request received for Re-creates • Through the CGA21RECRE Workgroup • Verify no existing “Unapproved” report • Justification • E-mail • Letter

22. Current Project Status • As of October 2007 • Functional Specification Draft Documents • Report Period Update Process • Batch Process • Enhancement Request Drafts • Route to PI • Identify Posting and Service Dates • Display Additional Pay • Time Paid vs. Gross Pay • Move Percents by Period

23. FIS Screenshots • Represents functionality, not the look and feel • Will have the same format and feel as Labor Ledger and other KFS modules

24. Labor Ledger Effort Certification Balance View • Example 0001693647 (FY05 – 2005M02 1/1/05 - 6/30/05)

25. Report Period Definition Table

26. Effort Report

27. Effort Report Notes

28. Questions

29. Labor Distribution Module Progress • Functional Subject Matter Experts (SME) Team Kickoff in March 2006 • Release of Phase 2 November 2007 • Functional Specification Written for all Phase 2 Processes, E-Docs, Maintenance Tables, and Inquiries October 2006 • Testing February 2007 – November 2007 • Estimated Release Effort Certification, Kuali Phase 3.0, June 2008

30. Functional Subject Matter Experts Team Contacts • Wes Buchanan, Cornell • Julianna Douches, Michigan State • Robert Emborski, Cornell • Sterling George, Indiana • Cindy Jones, California • Brenda Mathias, California • Keiko Takahashi, Business Analyst, RSmart • Sharon Underwood, San Joaquin Delta • Mike Wong, Hawaii • Suzanne Zimbardo, Arizona

31. Thanks for Attending Labor Distribution

32. Labor Distribution Module Workshop Contacts Sterling George, Indiana sgeorge@indiana.edu Marcel Villalobos, Arizona marcel@email.arizona.edu Suzanne Zimbardo, Arizona zimbardo@arizona.edu