IRIS Project Update

1. IRIS Project Update IRIS Steering Committee June 28, 2005

2. Today’s Agenda • Organization Structures  David Hardison • Security Officer Requests  David Hardison • Student Acctng Comm Report  Karen Combs/David Hardison • Communication Plans  Lana Dearinger • System Security  Kathy Hamperian  • Change in Timeline - KMSF  Phyllis Nash   • Integration Testing  Lee Nelson  • Updates  Team Leads • Questions

3. Organization Structure

4. Organizational Structure • Provides framework for functionality • Must reflect “How things work” • FRS provides for FRS and HRS • Goal: Improve data integration and reporting • We assumed this required one structure for all modules of the SAP system

5. As we became more familiar with SAP and SAP consultants became familiar with UK…

6. Realizations during Realization • A single structure is not in the best interest of the University nor would it reflect the way the University operates. • There will be different structures (FI and HR/CM) because their functions are different.

7. Org Structures • FI - Built on financial relationships • Cost centers and how funds “roll up” • HR/CM – How people report • We’ve never had an HR structure • Every position will be connected to the funding cost center

8. Reasonable Questions “Why can’t they be the same?” If UK was organized with purely vertical relationships where $ and responsibility flowed in linear, non-branching ways – we could. But we aren’t. So we can’t.

9. Reasonable Questions “Do I really care? Does this have any real impact on end users?” We are told that this does not have any real impact on end users; we’re only bringing this up because it is different that what we had said previously.

10. Reasonable Questions “Will this make reporting more difficult?” Our SAP consultant says that reporting issues are not related to Org Structure.

11. Summary This is not a big deal. We’ll have the right structure for the right situation.

12. Security Officer Requests

13. We’ve been asking the ASOs to balance a lot of requests…

14. ASO Requests to Date • Testing – FI, HR, MM • Delivery Addresses • Training - FI, HR, MM • Leave accruals and balances • working with HR • not for faculty • Review of academic relationships in org structure

15. Future Requests to ASOs • Training – review of planned courses for individuals • Approver levels • Time entry – levels of responsibility • Other

16. Student Payment and Accounting Issues Committee Report • Committee Members: • Karen Combs, Provost Budget Office (co-chair) • David Hardison, IRIS Project (co-chair) • Linda Jacobs, Planning, Budget and Policy Analysis • Susan Krauss, Treasurer’s Office, (Kim Lush, alternate) • Linda Smitha, Student Billing Services • Ruby Watts, Registrar

17. Student Payment and Accounting Issues Committee Report • Ex Officio: • Tonya Prince, IRIS Project/Registrar • Michelle Nordin, IRIS Project/Admissions & Registrar • Lynda George, IRIS Project/Student Financial Aid • Dale Austin, IRIS Project/Treasurer’s Office • Loretta DeToma, IRIS Project/Student Billing Services • Marlies Burkhard, SAP consultant

18. Summary of Issues and Recommendations • Payment Options and Late Fees • Current Status • Options Considered • SAP’s Automatic Payment Plan • No Payment Plan • Modified IPP and Plan for Exceptional Cases

19. Payment Options and Late Fees • Recommendation • Require payment of all tuition and fees at the beginning of each term • Financial aid applied in current manner • For students who are unable to make the full payment at the beginning of the term: • No enrollment fee or additional action required by student • Accounts with a balance in excess of $50.00 will be assessed a “late fee” charge (rate range of 1.0% to 1.5% per month) • The late fee assessment continues on the unpaid balance until account paid in full or placed with a collection agency • Financial ombud to work with students with unusual circumstances

20. Write-off of Unpaid Balances • Current Status • Recommendation • Write-off of bad debt for unpaid accounts under $20 prior to data conversion and annually thereafter

21. Clearing of Credit Balances • Current Status • Recommendation • Write-off of credit balances $10 or less prior to data conversion and annually thereafter for accounts with no activity for two years • Write-off of credit balances over $10 (after SBS researches and tries to locate students) prior to data conversion and annually thereafter for accounts with no activity for two years • Detail available for reversal if students request refunds

22. Hierarchy of Payment • Current Status • Recommendation • Apply payments following the principle of “first in, first out” in order of the due date of the charge Note: Since tuition/mandatory fees from priority registration would be the first charges posted to the student account, the majority of student accounts would have these paid first.

23. $25 Credit Card Convenience Fee • Current Status • Recommendation • Eliminate the convenience fee • Note: The estimated revenue from the new recommended late fee would offset the revenue loss from discontinuing the IPP and cover the cost of the bank fees for the credit card usage.

24. Student Statement of Obligation • Current Status • Recommendation • Minor revisions of the statement previously approved by Provost • Statement of Obligation forwarded to University Legal Counsel

25. Communication • Recommendation • Subgroup of this committee, with involvement from Public Relations, will develop and oversee a communication plan

26. Communications Update • Communication Plan for Student Accounting -Audiences -Messages -Vehicles -Timing • Other Communication Efforts -Chart of Accounts, new terminology -Training -HR communication

27. Security in SAP • Role-based security • Defined by how each user (or group of users) will interact with the system • Transaction (update) • View only • Update and view • The current system is rules-based • Rules based on membership in a group • Update • View only • Update and view

28. Access to Information in SAP System • Current systems are highly restrictive • Access is granted at the field level • Evolved over time • View only is restricted • What access is possible in SAP • Highly secure system • Transactional interaction (updating) will be tightly controlled • Philosophy for view access to the system is that the system will be as open as possible.

29. Types of Testing • Baseline Testing Module Specific Transaction Testing Purchasing Example: “Can we complete requisitions, PO’s and Goods Receipts?” • Integration Testing Complete Process Testing Example: “Can we complete the entire Procurement to Payment Process, AND are the resulting postings correct in Financials?” • Parallel Testing – Payroll • Validation of Payroll results with Legacy (entire population) • Production Simulation (sample population)

30. Purpose of Integration Testing The purpose of Integration Testing is… • Validate configuration of business processes • Validate cross-module integration • Validate user security permissions (Cycle 2) • Expose SMEs to the system prior to Go Live by utilizing them as testers, and to obtain user acceptance.

31. Areas of Cross Module Integration Purchasing • Requisitions/Purchase Orders > Funds Management • Valuated Goods Receipts > Funds Management, General Ledger • Invoice Verification > Accounts Payable, General Ledger HR Payroll • Employee Creation > CM (create Student), FICO (Account Assignment) • Payroll Run > Funds Management/General Ledger Student AR • Posting Charges > Funds Management, General Ledger • Incoming Payments > Funds Management, General Ledger • Outgoing Payments > Funds Management, General Ledger

32. Integration Testing Cycles Cycle 1: Scenario Testing (without security) Cycle 2: Interfaces Cycle 3: With Security Integration Testing is not limited to 3 cycles. The project team will complete as many cycles as required up to Go Live to validate that system is functioning as expected.

33. Cycle 1: Schedule Purchasing: June 20 – July 1 Financials: June 27 – July 8 Student A/R: July 25 – August 5 HR Payroll: June 27 – July 15 (Internal) July 18 – July 29 (SME’s)

34. Financial (FI) Update Tasks recently completed: • Interface development/testing (journal entries) • Business Process Procedures (BPP’s) • Data conversion testing (all except grants) • Attribute data mapping • Work with Training team to help develop training materials

35. Financial (FI) Update Tasks currently being worked on: • Organizational structure- academic units • Integration testing • KMSF component • Reporting priority list • Interface transaction testing • Faculty Effort replacement • Endowment System replacement

36. Financial (FI) Update Tasks forthcoming: • Cycle 2 Testing (starts in July) • Report Development • End user training • Security roles development and assignment • Grant data conversion (OSPA)

37. Materials Management

38. Materials Management (MM) Update Tasks recently completed: • Developed Requisition and PO Approvals • Prepared and Validated the QA System for Integration Testing • Established Tolerance Limits for Campus and Hospital • Prepared Integration Scenarios

39. Materials Management (MM) Update Tasks recently completed (cont’d): • Developed Printed Outputs of Purchasing Documents • Mapped and Tested initial load of Vendor and Material Data

40. Materials Management (MM) Update Tasks currently being worked on: • Training of Procurement and A/P Staff in preparation of End-User Support • Integration Testing • Development of Hospital Enhancements • CDM • Form Development • Business Process Procedures

41. Materials Management (MM) Update Tasks forthcoming: • Determine Authorizations and Roles • Configuration of the ABC supply analysis for cycle counting. • Final design of the item master.

42. Campus Management

43. Financial Aid • ProSAM Sandbox Environment - 100% complete • Configuration & Testing of the following modules - 98% complete • Institutional Student Information Record (ISIR) • Data Load • ISIR Correction Module • Tracking Module • Need Analysis Module

44. Financial Aid • Configuration and testing of Budget Module – 40% complete • Packaging module will be the next area of focus. • Development of schema and process to convert current system “active” financial aid fund subcodes to ProSAM “Aid IDs” – 40% complete

45. Student Administration • Academic Year and Term configuration • (Academic Year will begin with Fall semester and continue through summer) • Booking Rules • Progression Rules • Data Mapping from SIS to SAP • Ole Miss Training

46. Student Accounting • Identifying end users who will need training for October 2005 go-live • Formatting of bills • Dunning letters • Communication plan • Identification of roles/transactions • Biller Direct consultant • BPPs

47. End-user Training Update • Feedback via security report received from Area Security Officers last week. Training team is compiling the information to determine final End User numbers for the October 1, 2005 go-live. • Training team is furiously working on solidifying training locations and logistical strategies for Phase I implementation. Have identified (with Dave Watt’s assistance) 11 potential locations across the campus.

48. End-user Training Update Continued • Working with the process teams to continue to train testers for MM and FI areas. Have taught 10 SAP Awareness and six Requisition to Check Overview courses to approximately 80 testers to date. • Developed and implemented on line help (myHelp) to accompany SAP help. • Working with the Basis team to get the training client (500) up and running.

49. Preparation for Oct. 1 Go-Live SAP Awareness & NavigationUK1004 Hrs. Level 100 Req. to Check OverviewRtC2002 Hrs. Finance OverviewFI2002 Hrs. General Reporting RPT2004 Hrs. Level 200 Req. to Check 5.0 days FI, FM, & CO 10.5 days Contract Accounting 1.25 days Level 300 THE BEST-RUN UNIVERSITIES RUN SAP