Financial Systems Financial Systems Replacement Initiative Replacement Initiative

ProjectProject

Judith FreedJudith Freed

Project DirectorProject Director

November 6, 2009November 6, 2009

Project Background Project Background

KPMG reviewed financial systems in 1998 KPMG reviewed financial systems in 1998 and determined that further enhancement and determined that further enhancement of existing systems would be beneficial -- of existing systems would be beneficial -- ISTIPISTIP

Bearing Point reviewed financial systems Bearing Point reviewed financial systems in 2007 and determined that the strategy in 2007 and determined that the strategy of incremental improvement to legacy of incremental improvement to legacy systems is nearing end of useful life. Time systems is nearing end of useful life. Time for a move to an ERP or best of breed for a move to an ERP or best of breed

Current Systems Current Systems

Technology includes back-end legacy systems Technology includes back-end legacy systems built in COBOL that have been heavily built in COBOL that have been heavily customized over the yearscustomized over the years

Front-end web applications have been built on Front-end web applications have been built on top of these legacy systems; some of these are top of these legacy systems; some of these are now out of date technologiesnow out of date technologies

System interfaces have helped to automate but System interfaces have helped to automate but have made the technology and the business have made the technology and the business more complicated more complicated

Project ProposalProject Proposal

Financial Systems Replacement Project was presented Financial Systems Replacement Project was presented to CITI in Fall 2007 by Sue Abeles with a $7.3M to CITI in Fall 2007 by Sue Abeles with a $7.3M proposed budget and proposed schedule of 5 years for proposed budget and proposed schedule of 5 years for the planning phasethe planning phase

Life cycle replacement issue; legacy systems are 20 to Life cycle replacement issue; legacy systems are 20 to 30 years old and difficult to maintain30 years old and difficult to maintain

Received highest priority ranking among all projects Received highest priority ranking among all projects presentedpresented

Planning was considered to be key issue to avoiding the Planning was considered to be key issue to avoiding the usual pitfalls of ERP projectsusual pitfalls of ERP projects

Opportunity for reengineering of business processesOpportunity for reengineering of business processes

Bearing Point view of ApplicationsBearing Point view of Applications

More Current, More Detailed View More Current, More Detailed View of Applicationsof Applications

Web Merit

Inter AISUCLAUC Net

DACSS & PANISIS UCOP/Merced

Admissions Financial Aid

Student Records

BAR Account

General Ledger

Budget Purchasing/ APPersonnel & Payroll

QDB Campus Data Warehouse

DB2 Shared Components

QDB Operational Data Store

UID

ISIS / Shibboleth

Law Web URSA Online

Advance

Cashiering

Cyberpay

Cons. Gift Reporting

CBIG

InfoEd

RATS

OFSR

FasTrax Chancelorial Commitment

Web Input

Garnishment

EDB Web Inquiry

Staffing List

Travel Express

Equipment Management

UCOP

Non Pear

Effort Reporting

Enterprise DirectoryUCLA Logon

Campus Directory

Law Net Email

BOL EmailCTS

Directory UDP App

DACSS

UC Merced

BruinBuy

PAN

Business

Student Services

Infrastructure

Non-AIS UCLA

Vendor Invoice Portal

Mainframe Hosted

Distributed

TOF J ournalPay Exp Transfer

Open Prov

Project StartProject Start

Project was given $700k for 2 years of funding beginning Project was given $700k for 2 years of funding beginning in FY08; additional funding allocated in July 2009in FY08; additional funding allocated in July 2009

Project Director was hired November 2008 at 50% time; Project Director was hired November 2008 at 50% time; changed to 100% time October 2009changed to 100% time October 2009

Project Control Document v. 3.0 presented in October to Project Control Document v. 3.0 presented in October to Executive CommitteeExecutive Committee

Current timeline 3 ½ years and budget $6.5MCurrent timeline 3 ½ years and budget $6.5M Presentation made to CAO/CFO at quarterly meeting in Presentation made to CAO/CFO at quarterly meeting in

OctoberOctober Staffing of core project team is just beginning with Staffing of core project team is just beginning with

several positions posted in Octoberseveral positions posted in October

Project PlanProject Plan Staff project teamStaff project team with functional and technical with functional and technical

subject matter expertssubject matter experts Form workgroups with campusForm workgroups with campus departmental departmental

and central office representativesand central office representatives Document and verify current business processes Document and verify current business processes

from an end to end perspectivefrom an end to end perspective Document technical interfaces, issues, Document technical interfaces, issues,

transaction volumes, costs and service qualitytransaction volumes, costs and service quality Determine key performance indicators as current Determine key performance indicators as current

measures of business processesmeasures of business processes Assess campus readiness for changeAssess campus readiness for change

Project Plan continuedProject Plan continued

Review what other universities are doing or Review what other universities are doing or lessons learned from prior implementationslessons learned from prior implementations

Look at offerings and direction of current Look at offerings and direction of current solution vendors (SAP, Oracle/Peoplesoft, Kuali)solution vendors (SAP, Oracle/Peoplesoft, Kuali)

Determine infrastructure readiness for Determine infrastructure readiness for implementation and maintenance of new systemimplementation and maintenance of new system

Keep campus engaged and informedKeep campus engaged and informed Provide cost/benefit alternatives and Provide cost/benefit alternatives and

recommendationsrecommendations

ChallengesChallenges We are the only UC that processes business We are the only UC that processes business

transactions for other campuses (e.g., Merced transactions for other campuses (e.g., Merced UCOP, and possibly others)UCOP, and possibly others)

Our transaction volume (13M annually) going Our transaction volume (13M annually) going through the General Ledger is the largest among through the General Ledger is the largest among UC’sUC’s

We have concurrent replacement/reengineering We have concurrent replacement/reengineering projects for Payroll (with UCOP) and Research projects for Payroll (with UCOP) and Research Administration (Huron) that will have an impact Administration (Huron) that will have an impact on the Financial Systems Replacement Initiativeon the Financial Systems Replacement Initiative

DACSS and PAN-like requirements are unique, DACSS and PAN-like requirements are unique, even among universitieseven among universities

Next StepsNext Steps Set up quarterly Executive Sponsors meetings Set up quarterly Executive Sponsors meetings Identify membership of Management Steering Identify membership of Management Steering

Committee and schedule meetingsCommittee and schedule meetings Identify members for process workgroups, Identify members for process workgroups,

schedule meetings and begin documenting the schedule meetings and begin documenting the current end to end business processescurrent end to end business processes

Determine what shadow systems are currently Determine what shadow systems are currently being used and why they are neededbeing used and why they are needed

Review processes, policies, and unmet campus Review processes, policies, and unmet campus needs and document requirementsneeds and document requirements

Publish next version of Project Control Publish next version of Project Control DocumentDocument

Processes to ReviewProcesses to Review

General Accounting/ General Ledger

Account Validations

Journal Entries

Maintain FAUs and Attributes

GA/GL Online Query/Reporting

Chart of Accounts

Recharge Processing

General GA/GL Functionality

Procure to Pay

Purchasing/Receiving

Accounts Payable

General AP Functionality

Match Transactions

Invoices

Credit Memos

Calculate Payment

Recurring Payables

Process Payment

AP Online Query/Reporting

Tax Reporting

Purchasing General Functionality

Bid Processing

Procurement Card

Purchase Orders/Low Value Order

BruinBuy Workflow

Purchase Orders/ High Value Order

and Blanket Orders

Requisitions

Receiving

Supply Contract Management

Purchasing Online Query/Reporting

Budgeting

Budget Forecast

Budget Modification

Budget Development/ Parameters

Budget Monitoring

Budget Development/ General Functionality

Budget Online Query/ Reporting

Accounts Receivable

GL Transactions

Statements (for students)

Invoices ( for non-students)

AR Tax Withholding for Non-Resident

Alens

Collection

Cashiering

Student Accounts

AR Customer Self Service

Adjustments/ Refunds

AR Apply Payments

AR General Functionality

AR Online Query/ Reporting

Encumbrances

Memo Liens

Organizational Hierarchy

E-ProcurementE- catalog E- RFxReverse auctionsRoundTrip

Strategic Sourcing Vendor

Maintenence

Travel Payments

Transfer of Expense

Workgroup ParticipationWorkgroup ParticipationDepartmentDepartment Management Management

CommitteeCommitteeGeneral Ledger General Ledger WorkgroupWorkgroup

Procure to Pay Procure to Pay WorkgroupWorkgroup

Budget Budget WorkgroupWorkgroup

Receivables Receivables WorkgroupWorkgroup

Academic PersonnelAcademic Personnel

AdministrationAdministration

Anderson SchoolAnderson School

Arts and ArchitectureArts and Architecture

Acad Plan, Budget & Cap PgmsAcad Plan, Budget & Cap Pgms

DentistryDentistry

External AffairsExternal Affairs

Geffen School of MedicineGeffen School of Medicine

Graduate DivisionGraduate Division

GSE & ISGSE & IS

LawLaw

Letters and ScienceLetters and Science

LibraryLibrary

Medical CenterMedical Center

NursingNursing

Public AffairsPublic Affairs

Public HealthPublic Health

Research AdministrationResearch Administration

SEASSEAS

Student AffairsStudent Affairs

Theater, Film & TelevisionTheater, Film & Television

UCLA ExtensionUCLA Extension

Other UniversitiesOther Universities

Colorado StateColorado State Implemented Kuali July 2009Implemented Kuali July 2009

U of MichiganU of Michigan Peoplesoft (impl. 1996-2001)Peoplesoft (impl. 1996-2001)

U of WashingtonU of Washington FSNA ongoing – SAP or KualiFSNA ongoing – SAP or Kuali

MITMIT SAPSAP

U of TexasU of Texas OracleOracle

U of ArizonaU of Arizona Kuali in January 2010Kuali in January 2010

USCUSC Joined Kuali in 2007Joined Kuali in 2007

Ohio StateOhio State PeoplesoftPeoplesoft

HarvardHarvard Oracle/PeoplesoftOracle/Peoplesoft

PurduePurdue SAPSAP

Questions Questions