The New Financial System and UMD Faculty and Administrators

INTRODUCTION

Efficient and effective administrative services, including financial services, are critical to the University’s ability to conduct business and are part of the strategic positioning effort. In July 2008, the University financial system will be transformed from multiple, separate, disconnected, and, in some cases, outdated systems to an integrated, Web-based, single-enterprise financial system. Virtually all the University’s financial processes—from establishing accounts, to employee reimbursements, to purchasing, to grants management—will be positively impacted. Thousands of financial system users on all campuses will be using this new tool. Implementation of a comprehensive training and assessment program began in June 2007.

The University community has been part of the development of this new system from the beginning. During focus groups and interviews in 2005, selected faculty members and staff were asked for their input about the qualities required for the new financial system. This information, along with input from financial system users and University stakeholders, was incorporated into the design of the new system.

While interaction with the financial system will vary among faculty and administrators, we want to make sure that you are aware that it will soon be part of normal University operations. Some will simply need to remember a new account number, while others will use the new system for purchasing supplies and other items. Others may be affected only because financial staff will be affected.

WHAT ARE THE OVERALL BENEFITS OF THE NEW FINANCIAL SYSTEM?

• The new Web-based financial system replaces an outdated mainframe system that was installed in 1991, as well as several other systems.
• With installation of the new financial system, the University is bringing together all information systems into a single enterprise, including human resources, libraries, grants management, and student systems.
• Ineffective and costly redundant and supplemental systems will be reduced and, in most cases, eliminated, as a result of installing the new system.
• The new financial system protects the University from the potential risk associated with sudden loss of the current system (CUFS), which is no longer supported by the vendor.
• The new financial system presents improvements in processes, quality, and quantity of information.
• Staff will be better supported in terms of ease of use, access, and navigation with all of the training courses to be offered right here on the UMD campus. Class attendance will be dependent upon the financial tasks assigned.
• Robust data analysis and reporting capabilities will be available, equivalent to or better than the financial reporting and information currently provided by the Data Warehouse, UM Reports, and Financial Reports on the Web.
• A strong internal control environment will be reinforced through the clustering of high-risk financial activities.

HOW WILL THE NEW FINANCIAL SYSTEM AFFECT FACULTY AND ADMINISTRATORS?

• Financial services at UMD have been organized to provide better data integrity, efficiency, accountability, and process consistency. A primary cluster of services will be at the Business Office level, as currently exists today. A secondary clustering of duties will be created at the collegiate office level, providing oversight and financial management for the unit. End department users will continue financial activities such as purchasing goods and services, preparing expense reimbursements and purchasing card reports, to name a few.
• Because the new financial system is a Web-based tool, it has multiple capabilities for generating and creating reports. Overall reporting will be improved with the potential for more robust data analysis.
• The new system provides for online submission and approval of travel and other expenses. User-friendly forms will simplify and speed up processing for faculty members and administrators, whether they complete them or have a staff member complete them.
• The process for completing a requisition for supplies and other items will be smoother because the staff who have completed the proper education classes can complete a requisition. For example, a department head may assign a staff member the task of purchasing supplies.
• The grants management system allows online proposal and award tracking, electronic NOGA delivery, and delivered PI reports. Because sponsored data will be integrated, cost sharing will be linked to projects within the system. Information will be more timely; for example, F&A processing will be done nightly versus the current weekly. Proposal preparation will remain in the current Electronic Grants Management System.
• Account numbers (currently called CUFS numbers) will change because the Chart of Accounts will be completely new. The new Chart of Accounts information will be distributed across campus as July 1, 2008 approaches.
• Services should be enhanced as a result of a more efficient financial system and changes in may organizational structure. However, during the transition to the new system as with previous implementations of HR and Student systems, it is possible that service may be reduced in the short-term, while financial staff attend training classes and during the period when staff are learning the new system.

FACULTY AND ADMINISTRATOR INTERACTION WITH THE NEW FINANCIAL SYSTEM

For security purposes, the University will have policies regarding access to the new financial system. Faculty access to the new financial system will depend on the activities of each faculty member or administrator and the ways in which they wish to interact with the new system.

For Those Who Initiate Financial Processes

Purchase requisitions. Principal Investigators who wish to create purchase requisitions in the financial system will be required to take education classes and pass competency assessments to gain financial system access, including the Basic Accounting online tutorial; the instructor-led Chart of Accounts class; and the instructor-led Create Requisitions class.

Employee Reimbursement. Should faculty members or administrators wish to complete travel and other expense reimbursements online, they will be required to take the instructor-led Travel Authorizations and Expense Reimbursement course, as well as the Basic Accounting and Chart of Accounts prerequisites. Administrators and faculty members may wish to have a staff member complete these reimbursement forms for them after providing appropriate receipts, justifications, and account numbers. In that case, the staff member would need to complete the class requirements.

Financial reporting. A tutorial demonstration on running queries and delivered reports will be available. It will include a list of common queries and reports, and it will give step-by-step instructions for running reports and queries. Special features will also be covered. If administrators or faculty are interested in using the reporting tools, the UMD campus is recommending that the Chart of Accounts online tutorial, the PeopleSoft Navigation online tutorial and the Financial Reporting online tutorials be completed.

Note: The Basic Accounting online tutorial and assessment and instructor-led Chart of Accounts courses will begin in December at UMD. Visit http://www.finsys.umn.edu/Training.html for more information.

CHANGE MANAGEMENT

Change is a fact of life for everyone at the University. Although faculty will be, for the most part, minimally impacted by the transition, financial staff will be affected because they will be attending training, taking competency assessments, and learning the new system. By demonstrating support, faculty members can be instrumental in helping financial system employees as they undergo this financial system change. Suggestions include giving positive reinforcement, acknowledging staff accomplishments, offering encouragement, and saying “Thanks for a job well done.” Training began in June 2007 with online Basic Accounting, and will get underway for all classes in April 2008.

FOR MORE INFORMATION

Enterprise Financial System Web site: www.d.umn.edu/efsumd

E-mail the EFS project at UMD: efsumd@d.umn.edu

Contact your organizational design committee. Committee members are listed online at http://www.finsys.umn.edu/ODcommitteemembers.html.