Bringing It All Together: Financial Reporting – KFS and KRA

1. Bringing It All Together:Financial Reporting – KFS and KRA Eric Stine, Vice President Exeter Group, Inc.

2. Agenda Understand the Business Need What is the end users’ expectation of the new system? 1 Plan, Plan, Plan Make sure your fundamental design covers end-user reporting 2 Learn from History Avoid Common Mistakes; Address Common Issues 3

3. The 80/20 Rule • 20% of your users will use 80% of the system. • 80% of your users will use 20% of your system, but they are: • The most vocal; • The largest; and • The most difficult group to satisfy

4. Understand the Business Need • Fiduciary Reporting and Control - Reporting • Federal, State, Agency • Board of Governance – Trustees etc. • Third Party – Banks, Foundations, Other Independent Entities • Faculty • Alumnae • Students

5. Understand the Business Need - Reporting • Managerial • Budgetary • Departments • Initiatives • Programs • Schools • Instructional Perspectives

6. Understand the Business Need - Reporting Cross-Functional • Where will you have visibility into procurement? • Student receivables? • Dining? Parking? Library? • Alumni donations? • Payroll postings? Benefits costs? 6

7. Understand the Business Need - Reporting • Timing • Real Time Standard (based on posting at the time of report execution) • Periodic Standard • Real Time Ad Hoc • Delivery Method • Online • Printed Preformatted • Printed Ad Hoc

8. Agenda Understand the Business Need What is the end users’ expectation of the new system? 1 Plan, Plan, Plan Make sure your fundamental design covers end-user reporting 2 Learn from History Avoid Common Mistakes; Address Common Issues 3 8

9. A Different Kind of RICE • Begin your implementation with a planning phase that: • Documents a requirements-level future state design; • Creates a shared understanding of new business processes; • Includes subject matter experts and end users; AND • Inventories all current-state and desired future-state reports, determining how they will be handled in the future state.

10. Develop and document a reporting strategy • Don’t wait – do it at the outset, or you’ll never catch up • Leverage existing tools • Make sure you cover: • Transactional data and operational reporting • Summary data • Analytic reporting (will you be doing financial planning? Budget prep?) • Strategic reporting • Cross-functional reporting • End user reporting tools (desktop) • Presentation layer (Portal?) and printing

11. Keep It Simple • You won’t be able to do extended training sessions for large communities of distributed end-users • Your tools must be intuitive to use and easy to find

12. Agenda Understand the Business Need What is the end users’ expectation of the new system? 1 Plan, Plan, Plan Make sure your fundamental design covers end-user reporting 2 Learn from History Avoid Common Mistakes; Address Common Issues 3 12

13. Commonly Required Reports & Surveys Federal Tax Reports • 990 - Return of Organizations Exempt from Income Tax • 990-T - Return of Unrelated Business Income Tax • 1099 - Statement of Miscellaneous Income • 1098-T - Tuition Statement Compliance Reports & Surveys • TD F 90-22.1 - Report of Foreign Bank and Financial Accounts • 5500 - Annual Report of Employee Benefit Plans • OMB Circular A-133 - Annual Report of Federal Programs • FISAP - Fiscal Operations Report and Application to Participate-Report on Federal Financial Aid Awards • NSF Survey of R&D Expenditures at Universities and Colleges Industry/Market Reports & Surveys • IPEDS Report • NACUBO Endowment Reports • Middle States Report 13

14. Organization Resource Planning Reports • Institutional Reports • Statement of Changes in Financial Activity Reports • Trial Balance Reports • Balance Sheet Reports • Income Statement Reports • Auditable Financials Statements • Budget Reports • Budget to Actual Balances Comparison Reports by Fund, Cost Center, Project, etc… • Budget Balance Available Reports by Fund, Cost Center, Project, etc… • Budget Balance Changes Reports by Fund, Cost Center, Project, etc… • Longitudinal Budget Comparison Reports • Detailed Transaction Reports • Detailed Accounts Payable History Reports • Detailed Accounts Receivable History Reports • Labor Distribution History Reports • Detailed Journal Transaction Reports • Encumbrance History Reports • Requisition , PO, and Receipts History Reports • Invoices and Payments History Reports • Special Fund Indirect Cost Reports • Special Fund Cost Sharing Reports 14

15. Common Reporting Mistakes Data Returned May Not Always Be The Correct Data! • Make sure that report parameters are clear and concise • Whenever possible provide a List of Values (LOV) from which to select report parameters (avoid manual entry of parameters) • Training for ad-hoc reporting tools is imperative…don’t find out the hard way that you aren’t the reporting expert that you think you are! • Perform reasonableness comparison tests of report results against certified data • Get a Second Opinion - Ask a colleague that you trust to review your reports for accuracy 15

16. Common Reporting Mistakes Your Database May Not Be Up To Date • Before creating reports be sure that all feeds to your database are up to date without errors • Ensure that all financial transactions are posted without errors • Guarantee that all accrual and carry-forward financial activity is complete and posted Special Requirements For Project Reporting May Be Overlooked • Adjustments for Indirect Costing may be overlooked • Adjustments for Cost Sharing may be overlooked • Project to Date vs. Year to Date balance reporting 16

17. Common Reporting Challenges Pre-Go-Live (Implementation Phase) • Capturing all Reporting Requirements • A list of too many reports is better than too little but don’t get hung up on the details! • Performing Reporting Gap Analysis • It is often difficult to obtain product report lists and samples • Product salespeople are often not very knowledgeable about reporting (don’t know the details!) • Rely on references and other product customers for the “real story” and actual samples of reports • Reporting often falls to the bottom of the Implementation To-Do list • Its common during an implementation for reporting to be put off until the end • Assign a reporting team made up of actual stakeholders • Create a reporting sub-plan that can be tracked for progress 17

18. Common Reporting Challenges (cont.) 18 Post-Go-Live/Lessons Learned • Proper Training – Ensure that you have reporting experts (super-users) in each functional area at time of Go-Live • Access to Reports/Data – Ensure that your users have access to the Reports and Data that they require to complete the responsibilities of their jobs • Report/Data Security – Ensure that your users do not have access to Reports and Data that they should not see • Inventory of Reports – Ensure that a list of reports with descriptions and instructions is available at the time of Go-Live • Support • Have a Q&A or FAQ document available to users at time of Go-Live • Ensure that a reporting support infrastructure is in place at time of Go-Live • Provide additional opportunities for on-going report training after Go-Live

19. Questions? 19