Finance-Related Training

1. Finance-Related Training May 19, 2010

2. Outline Agenda • 8:30 Continental Breakfast • 9:00 UW System Structure • 9:30 Overview of Selected Policies/Constraints • 10:00 Financial Administration • 10:30 Stretch Break • 10:45 Financial Administration (cont.) • 11:45 Lunch (Capitol B)

3. Outline Agenda • 12:45 Administrative Services • 1:00 Safety and Loss Prevention • 1:45 Procurement • 2:45 Stretch Break • 3:00 Operations Review and Audit • 3:30 Trust Funds • 4:00 Concluding Remarks • 4:15 Adjourn

4. UW System Structure • Created by the merger of the former University of Wisconsin and the former Wisconsin State Universities (October 1971) • Governed by Chapter 36, Wisconsin Statutes • Governed by 18 member Board of Regents • 16 members appointed by the Governor • 2 ex-officio members (DPI and WTCS) • 14 of 16 have staggered 7 year terms • 2 of 16 are students with 2 year terms

5. UW System Structure • UW System President (Kevin Reilly) • 2 Senior Vice Presidents • Academic Affairs (Rebecca Martin) • Administration and Fiscal Affairs (Tom Anderes) • 1 Vice President (Debbie Durcan) • Associate, Assistant Vice Presidents, Directors • 14 Chancellors • 13 Degree granting institutions • 13 Two Year Colleges & State-wide Extension (72 counties and 3 tribal nations)

7. Interested Parties • Department of Administration • State Budget Office (Dave Schmiedicke, Bob Hanle, Dennis Rhodes) • State Bureau of Procurement (Helen McCain) • State Controller’s Office (Steve Censky, Jeff Anderson) • State Risk Management (Rollie Boeding) • Legislature • Legislative Audit Bureau (Jan Mueller) • Legislative Fiscal Bureau (Bob Lang, Dave Loppnow, Emily Pope)

8. UW System Quick Facts • Enrollment: More than 178,000 • Degrees Granted: 33,000 • Annual Budget: $4.75 Billion • State Funding: $1.14 Billion • Tuition Funding: $1.05 Billion • Gifts, Grants, Contracts: $1.44 Billion • Annual Economic Impact $10 Billion/Year

9. Selected UW System Policies • Board of Regents: Regent Policy Documents (RPD) http://www.uwsa.edu/bor/policies/rpd/ • UW System: Financial and Administrative Policies (FAP) http://www.uwsa.edu/fadmin/fap.htm

10. Selected Regent Policy Documents • 13-3 Authorization to Sign Documents • 15-1 Distance Education Pricing Principles • 20-19 Criminal Background Check Policy • 31-13 Investment and Social Responsibility • 32-7 Student Involvement in Differential Tuition Initiatives

11. Financial & Administrative Policies • F31 Personal Services Payments • F36 Travel Regulations • F43 Financial Management of Auxiliary Operations • F44 Tuition and Fee Policies for Credit Instruction • F46 Prizes, Awards and Gifts • F50 Segregated University Fees

12. Financial & Administrative Policies • G15 Student Services Funding • G18 Student FICA Exemptions • G29 Special Course Fees • G36 College Courses in High Schools • G38 Child Care Centers

13. Structure / Overview Questions?

14. Financial Administration

15. Financial Administration Mission Statement The Office of Financial Administration has the primary responsibility for the fiscal integrity of the University of Wisconsin System. It is expected to provide a financial environment that is secure, encourages the accomplishment of academic missions, provides timely and accurate information, and assists all levels of management in making prudent financial decisions.

16. Financial Administration Financial Administration is organized around the following five service categories: • System wide Accounting and Budget Control – Ginger Hintz • Shared Financial System Operations Management – Dwan Schuck • Financial and Administrative Policy Development –Terri Gill • Financial Analysis and Reporting - Vacant • System Administration Accounting and Budget Control –Laurie Grams

17. System Controllership Function • UWSA Controller • Facilitates information flow to/from Campus Controllers • Buffer between Department of Administration and Campuses on Accounting Issues • Interaction with State Budget Office • Interaction with State Controller’s Office • Owner of the Chart of Accounts • Responsible for reconciling SFS to WISMART • Responsible for University Banking

18. Business Units All Business Units are assigned an alpha character for identification and coding purposes. Institution SFSUW Budget / Wismart Madison UWMSN A Milwaukee UWMIL B Eau Claire UWEAU C Green Bay UWGBY D La Crosse UWLAC E Oshkosh UWOSH F Parkside UWPKS G Platteville UWPLT H River Falls UWRVF J Stevens Point UWSTP K Stout UWSTO L Superior UWSUP M Whitewater UWWTW N Colleges UWCOL R Extension UWEXT T System Administration UWADM W System-Wide UWSYS Y

19. Chart of Accounts Coding Chart of Accounts • http://www.uwsa.edu/fadmin/sfs/chrtacct.htm • Full funding string includes: • Business Unit – Fund – DeptID – Program Code – ProjectID – Account – Subclass (used for Building #) • Example • UWADM-350-281000-1-2172

20. State Appropriation Structure Categories and Types • Categories • GPR – General Purpose Revenue • PR – Program Revenue • PRF – Program Revenue Federal • SEG – Segregated Revenue • Types • Annual • Continuing • Sum-Sufficient • Biennial

21. State Appropriation Structure • Carryover or Lapse? • Annual – unless program revenue, funds which are not encumbered or expended lapse at the end of each fiscal year • Continuing – balances remaining at the end of the fiscal year are available for expenditure in future years • Sum-Sufficient – expenditures are allowable up to the amount necessary to accomplish the purpose for which the appropriation was made • Biennial – unless program revenue, funds which are not encumbered or expended lapse at the end of the biennium

22. Major Classes Permanent Salaries LTE/Student Salaries Fringe Benefits Supply and Expense (S&E) Capital Debt Service Aids (Financial and Local Assistance) Special Purpose (Transfers) Allotment UW Campuses

23. System Controllership Function • Allotments cannot be overspent without DOA approval • Approval is given in the form of an allotment increase • Exception - PR-continuing allotment increases are automatically approved • Transfers between classes may be restricted

24. System Controllership Function Transaction Flow Reconciliation Daily Interface WISMART – Official Accounting Records of the State of Wisconsin (DOA) SFS – Official Accounting Records of UW System UW Campuses

25. Revenue and expense bank accounts differ in requirements and process All receipts deposited into local campus deposit account Zero Balance Account (ZBA) Campus Vendors State Statute 20.906 [1] requires all collections be deposited in the Wisconsin State Treasury within one week.

26. UW System Controllership Questions?

27. Shared Financial System • Shared Financial System (SFS) • SFS Governance • SFS Team • Production Support • Development • HRS Retrofit/Interface • SFS Change Management

28. SFS Governance Structure Senior Vice President for Admin. University of Wisconsin System (Tom Anderes) Common Systems Review Group SFS Executive Committee SFS Leadership Team SFS Advisory Committee SFS Managers Group Supply Steering Committee SFS Project Mgmt. Office

29. SFS Team • SFS Financial Administration Roles • Production Support and Maintenance • Monitoring production processes • Troubleshooting end user and system errors • Ongoing care and feeding of the system • Recurring operations • Development • Active participation in new system/module implementation • Identification of user requirements • Functional lead in design, development, and unit testing • Lead role in integration testing • Manage roll out to end user community • SFS-HRS Retrofit

30. SFS Team SFS-HRS Retrofit • Overall structure • Roles and responsibilities • Engagement Directors • Program Managers • Site Leaders

31. Overall Structure Executive Sponsor Glen Nelson, UWSA Engagement Directors Dwan Schuck, UWSA Carol Block, DoIT Program Managers Katie Chase, DoIT Cara Grib, Huron Consulting Site Leaders Technical Security Batch Scheduling Infrastructure GL Payroll GL Tuition Remission DOA AP/EX AP Vendor Trailer Checks AP Taxes Expense Grants Grants ECRT Cost Share Reporting WISDM Reports

32. Roles and Responsibilities Engagement Directors • Review and communicate project status • Campus interaction • Review new functionality / changes to business processes • Allocate resources

33. Roles and Responsibilities Program Managers • Prepare and manage project plan, timeline and budget • Monitor progress on the project plan and tasks and communicate to all stakeholders on a regular scheduled basis • Support the project team in all project efforts • Review final deliverables • Produce statistics

34. Roles and Responsibilities Site Leaders • Advocate campus needs and viewpoints to the project team • Provide leadership to site • Communicate project details to respective campus • Facilitate training • Work with subject matter experts along with functional and technical staff • Facilitate testing • Ensure the necessary testing, prototyping and piloting tasks are completed, according to the agreed upon timelines and deadlines, and that related documentation is complete and accurate for the site

35. SFS ChangeRequest Process

36. SFS Change Management Objectives • Make improvements while maintaining stable, supportable system • Give consideration to individual campus initiatives • Systematically manage, track and document change requests • Communicate change requests and make visible to all impacted parties

37. SFS Change Request Decision Criteria Use of delivered PeopleSoft functionality is implicit unless compelling justification can be made.  Each proposed SFS Change Request to delivered PeopleSoft functionality is considered based on the following decision criteria: • Strategic Alignment • Regulations, Legislation, and Mandates • Functionality Impact and Technical Design Impact • Security Impact • Production Support Impact • Funding (e.g., cost savings) • Upgrade Impact • PeopleSoft Support • Time Constraints • Alternative Solutions

38. Shared Financial System Questions?

39. Financial and Administrative Policy Development Financial Policies • http://www.uwsa.edu/fadmin/finad.htm • Financial Administration • Academic Administration • Information Technology • Procurement / Risk Management • Tuitions and Fees • Other

40. Travel Policy • Travel Policies and Reimbursement Rates • http://www.uwsa.edu/fadmin/fppp/fppp36.htm • Travel Contracts • Car Rental • http://www.uwsa.edu/fadmin/fppp/fppp36c.htm • Lodging • http://www.uwsa.edu/fadmin/fppp/fppp36e.htm • Airfare • Brick and Mortar • Online • http://portals.foxworldtravel.com/University • Cliqbook self-booking tool • Must register at https://my.uwsa.edu/

41. Travel Policy • Miscellaneous Travel • Sales Tax Exemption • http://www.uwsa.edu/fadmin/fppp/fppp36i.htm • Traveler’s Reference Guide • Reimbursement rates and receipts • http://www.uwsa.edu/fadmin/travpub.htm • Travel warnings, baggage fees, currency converters, etc. • http://portals.foxworldtravel.com/University • Relocation • http://www.uwsa.edu/fadmin/fppp/fppp19.htm

42. Reimbursement • Reimbursement instructions and forms • http://www.uwsa.edu/fadmin/fppp/fppp3624.htm • Complete Expense Report (Excel form) • http://www.uwsa.edu/fadmin/travpub.htm For UW-Madison, the paper based expense reporting system has been replaced with the implementation of the PeopleSoft Expense Management module of SFS which incorporates electronic signature and paperless workflow.

43. Reimbursement Process • User submits request to supervisor • Campus business office reviews for policy and procedural compliance • Meal & lodging costs over the allowed policy maximums • Reimbursement claimed for costs that should have been paid directly by the University • Absence of UW business purpose for incurring reimbursable costs • Missing or incomplete required receipts or supporting documentation • Food and refreshments for meetings do not included required agenda, justifications or other supporting documentation • Payment • Paper Check • Direct deposit (Madison only)

44. Travel and Purchasing Card Programs • Travel Card • http://www.uwsa.edu/fadmin/usbank/usbank.htm • Individual Liability • Issue based on individual’s credit rating • Charges must be paid in full within 60 days • US Bank limits vendors • Purchasing Card • http://www.uwsa.edu/fadmin/Purchasing%20Cards.htm • Corporate liability • Campus liability not individual • Access Online • Manage applications • Card expenditures • Transaction funding • Reporting • US Bank limits vendors

45. Purchasing Card Program Visa Card issued by US Bank • UW business expenses only • Individual purchases up to $5,000 • Campus may approve lower limits • Limitation on vendor categories and commodities • Best practice for making low dollar purchases • Allows employees to obtain supplies and equipment much more quickly and reduces the number of purchase orders and requisitions • Provides cost savings through consolidated payment (biweekly payments to US Bank covering each campus’ purchasing card transactions versus individual vendor invoices) • Authorized for travel costs • airfare, lodging, conference registrations • may reduce out-of-pocket costs for UW System traveler

46. Purchasing Card The Purchasing Card is not: • For personal purchases • A means to avoid appropriate procurement or payment procedures • A card to access cash, cash equivalents or credit • A right of employment • For reimbursable meal costs (use your Travel Card) • For tax (1099) reportable services

47. Purchasing Card • Process • Delegated purchasing authority • Supervisor approval required to obtain card • Training required • Receipts and supporting documentation • Bi-weekly reconciliation • Campus Purchasing Card Program Administrator

48. Financial and Administrative Policy DevelopmentQuestions?

49. Financial Reporting • Financial Reporting unit is responsible for: • Compiling the annual financial report • Providing grants management expertise • Construction accounting • IRS tax compliance and reporting • Various cost studies and financial analysis • Primary interface with the Legislative Audit Bureau for financial audits

50. Financial Reporting • CAFR • State Comprehensive Annual Financial Report • ftp://doaftp04.doa.state.wi.us/doadocs/2009CAFR_Linked.pdf • UW is a major enterprise fund of the State of Wisconsin and included in the CAFR (page 46) • Annual Financial Report • http://www.uwsa.edu/fadmin/finrep/afr.htm • Available in total and by campus • Audited by Legislative Audit Bureau