LINE OF BUSINESS 2013 August 2, 2012 Line of Business 2013 PURPOSE - PowerPoint PPT Presentation

LINE OF BUSINESS 2013 August 2, 2012

Line of Business 2013 PURPOSE To classify financial activity across our three core • missions (Lines of Business) for mission-based financial reporting Implemented in clinical departments in FY2008 • “LOB 2013” will further refine the clinical • department implementations, and be officially deployed in basic science departments for the first time 2

Line of Business 2013 METHODOLOGY (“How?”) All financial activity at the University is organized • by “Project” (the “P” in PTAEO) Each Project has a “Functional Classification” (aka • “Project Classification”) which indicates the primary purpose or objective of the activity There are 12 functional classifications • The 12 classifications roll up into Lines of • Business The LOBs are Research, Clinical, and Education • 3

Line of Business 2013 METHODOLOGY (“How?”) All financial activity at the University is organized by • “Project” (the “P” in PTAEO)

Line of Business 2013 METHODOLOGY (“How?”) • Each Project has a “Functional Classification” (aka “Project Classification”) which indicates the primary purpose or objective of the activity

Line of Business 2013 METHODOLOGY (“How?”) There are 12 functional classifications • 6

Line of Business 2013 METHODOLOGY (“How?”) The 12 classifications roll up into Lines of Business • The LOBs are Research, Clinical, and Education (plus Administration) • LINES OF BUSINESS PROJECT CLASSI FI CATI ONS 01 EDUCATION EDUCATION 02 ACADEMIC SUPPORT 03 STUDENT LIFE & SERVICES 04 ORGANIZED RESEARCH RESEARCH 05 RESEARCH TRAINING 06 RESEARCH SUPPORT 07 PROFESSIONAL PRACTICUM CLINICAL 08 PUBLIC SERVICES 09 OTHER SCHOLARLY ACTIVITIES 10 ADMINISTRATION ADMIN 11 FACILITIES 12 INSTITUTIONAL EXTERNAL AFFAIRS

Line of Business 2013 METHODOLOGY (“How?”) 8

Line of Business 2013 KEY PRINCIPLE It’s not the source of funds (e.g., the Award) that defines Line of Business. It’s the PROJECT. EXAMPLE 0051AM is the Clinical Account • The Projects associated with 0051AM may or may • not be clinical Project is the activity taking place; Award is how • you are paying for it 9

Line of Business 2013 EXAMPLE: “Research” that is funded from a “Clinical” account CURRENT STATE Project: 3330001 One Project is used to record all activity Task: Task1 Award: 00051AM ONE Org Unit: 799001 ACCOUNT FUTURE STATE Project: 3330001 Old Project is used to record clinical activity Task: Task1 Award: 00051AM TWO ACCOUNTS Org Unit: 799001 Project: 3330002 New Project is set up to record research activity Task: Task1 Award: 00051AM Org Unit: 799001 10

Line of Business 2013 BASIC STEPS TO CLASSIFY ACTIVITY BY LOB Review the LOB classification on your current • Projects to determine if the activity you typically record in that account is consistent with its classification o BUG 606a – Project/Task Maintenance Report o BUG 209a – Account Holder Listing (modified) Review the activities in your department and • classify them into the lines of business (see Quick Guide) 11

Line of Business 2013 Line of Business Classification Quick Guide 12

Line of Business 2013 BASIC STEPS TO CLASSIFY ACTIVITY BY LOB, CON’T Review the Line of Business Labor Distribution • Report to determine if the Projects on labor schedules are consistent with each individual’s activities After reviewing current classifications, it is likely • that you will need to: Change LOB classifications on some Projects o Set up some new Projects o Update labor schedules o Update standing POs, ISP billing, internal o reference documents (such as PTAO lists for labs) 13

Line of Business 2013 WHEN TO USE “ADMINISTRATION” INSTEAD OF AN LOB “Administration” may be used in place of an LOB where activities support multiple missions and cannot easily or reasonably be allocated across the LOBs EXAMPLES Business office staff & general expenses • HR administration • Leaves of absence • 14

Line of Business 2013 HOW “ADMINISTRATION” IS ALLOCATED ACROSS THE LOBs When producing LOB financial statements, activity classified as “Administration” will be allocated across the three Lines of Business based upon faculty FTEs in your department EXAMPLE: Net activity in “Administration” Projects: $1,200,000 Research FTES: 30 50% $ 600,000 Clinical FTEs: 20 33% $ 396,000 Education FTEs: 10 17% $ 204,000 TOTAL FTEs: 60 100% $1,200,000 This allocation will not be recorded on the GL, so it will not interfere with dept-level financial statements 15

Line of Business 2013 SOME ASSUMPTIONS Some accounts will default to “Research” unless a specific LOB is identified: EXAMPLES Sabbaticals • Faculty discretionary accounts • 16

Line of Business 2013 RESOURCES & TIME LINE COA structure guidance from FinOps, COA • Manager, and COA handbook website FinOps can provide direct administrative support • (such as for LD schedule changes or submitting forms to set up new Projects) Changes need to be in place for the Sept 2012 • closing 17

Line of Business 2013 APPENDIX SAMPLE REPORTS 18

Line of Business 2013 Line of Business Labor Distribution – Time Survey Report Location This is a TOOL, not an exception report 19

Line of Business 2013 Line of Business Labor Distribution – Time Survey Report Sample 20

Line of Business 2013 BUG606a – Project/Task Maintenance Report 21