Enterprise Services Center

1. Enterprise Services Center Oracle E-Business Asset Lifecycle Management: Maximize Your Return on Assets

2. Enterprise Services Center Jean Matzke Functional Specialist • 23 Years of experience with the US Department of Transportation • 18 Years of experience in Accounting Systems • 7 years of experience with Oracle Applications • Setup and conversion of 15 Asset Depreciation Books

3. Enterprise Services Center Vision: We are a Center of Excellence providing the best integrated business services and solutions to the Federal Government. Mission: We deliver products and services that enable our customers to excel in managing the business of government.

4. Software Evaluation Process • DOT evaluated software products that met the General Services Administration Financial management Supply Schedule from March through December of 1997. • Oracle provided DOT with an Operational Capabilities Demonstration in December 1997

5. What We’ve Done • Implemented Delphi at 15 agencies of the Department of Transportation in less than 4 years ($59 billion budget; 60,000 employees) • DOT is the first cabinet-level department to be on a JFMIP-certified financial management system, on a single instance of the software • ESC cross-services National Endowment for the Arts • 3,500 people use the Delphi system • In February 2005, OMB designated ESC as one of four Financial Management Centers of Excellence (COE)

6. Delphi Implementations at DOT 15 DOT Agencies Implemented in Less than 4 Years!

7. Upgrade Schedule • December 1997 installed Oracle 10.7 with a single Org • October 1999 upgraded to 11.0.3 Multi-Org • December 2001 upgraded to 11i (11.5.3) • August 2002 upgraded to 11.5.6 • April 2003 Upgraded to 11.5.8 • May 2004 Upgraded to 11.5.9 • February 2006 scheduled to upgrade to 11.5.10

8. General Ledger Purchasing Accounts Payable Accounts Receivable Projects Fixed Assets Federal Extensions Web ADI Daily Business Intelligence Balanced Score Card Budget Execution Oracle Footprint - Environment

9. Where We Were • Legacy system tracked Assets at the General Ledger level only • No Asset detail information was recorded in the legacy system • Legacy System did not contain support for Asset General Ledger balances • Asset details were tracked in separate systems, or spreadsheets that did not interface with the Legacy system

10. Where We Were (cont) • Asset details did not reconcile to the Legacy system, to support the General Ledger balances • Expensed Assets were not tracked in the Legacy system • Asset Depreciation was calculated manually, and recorded Quarterly to the General Ledger • The Legacy System was written up in Audit findings with Assets as a material weakness

11. Setting up Oracle Assets • Analyzed the existing Asset tracking systems for common elements • Determined key information needed • Asset Category of 3 segments: Operating Admin.Account.Class • Location of 6 segments: OA Region.State.City.County .Facility/Site .Geographic Location Code • Asset Key of 3 segments: Book.Region.Organization

12. Setting up Oracle Assets (cont) • Created Custom Responsibilities for segregation of duties • Created key flexfield security rules • Attached security rules to custom responsibilities • Setup Security by Book • Modified the Workflow to record Asset transactions using the Expense Account detail values for unqualified segments

13. Conversion Lessons Learned • Get buy-in from the users • Document mapping of fields from legacy system • Ask whether assets had been amortized prior to conversion. • This will effect the monthly depreciation of the asset • Will Parent and Child Assets be converted? • Parents will need to be posted before Children can be added • Do retired assets need to be loaded at the time of conversion? • If conversion is mid-year this information may be needed for Financial Statements

14. Conversion Lessons Learned (cont) • We used the following methods to load the assets converted: • Manually added assets using Quick, and Detailed additions • ADI spreadsheets uploaded to Mass Additions • And SQL loader uploaded to Mass Additions • Segregate Depreciating Assets from Non-Depreciating Assets • You don’t want to depreciate Land • Upload Capital and Expensed Assets separately

15. Conversion Lessons Learned (cont) • Run reports to be used for reconciliation to General Ledger: • Journal Entry Reserve Ledger Report • Cost Summary Report • Reserve Summary Report • Asset Additions Report • Non-Depreciating Asset Report • Summary I Trial Balance • Compare Costs by Balancing Segment and Account • Enter adjustments in General Ledger, for Asset accounts to reconcile with General Ledger account balances. • Asset Cost Accounts • Accumulated Depreciation Accounts • Depreciation Expense Accounts

16. Monthend Process • On the last day of the month, we close Purchasing, and Accounts Payable. • Mass Additions Create is run to interface asset related invoices from Payables to Assets • We encourage all Mass Additions to be posted on a Monthly basis • The Projects module is closed next, Capital Projects with Assets placed in service are interfaced from Projects to Assets • Depreciation is run, and Asset journals are interfaced to General Ledger • Assets are reconciled to General Ledger

17. Business Benefits • Capital, Expensed, and CIP assets are tracked in Oracle Assets • Purchased Assets interface from Oracle Accounts Payables daily • Capital Projects interface from Oracle Projects when placed in service • Depreciation is recorded on a monthly basis • Assets reconciles to the General Ledger • Assets details support General Ledger balances • We have received clean audit reports for the past 5 years

18. Questions and Answers Q & A

19. Contact Information Jean Matzke Enterprise Services Center 405-954-6926 Jean.Matzke@FAA.gov Visit Our Website at http://www.esc.gov