December 6th, 2018 Some of the rules and procedures discussed in - - PDF document

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December 6th, 2018 Some of the rules and procedures discussed in - - PDF document

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12/3/2018 W A S H I N G T O N S T A T E U N I V E R S I T Y Department Chair and Directors Workshop December 6, 2018 Recording date of this workshop is December 6th, 2018 Some of the rules and procedures discussed in this workshop are

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12/3/2018 1 W A S H I N G T O N S T A T E U N I V E R S I T Y

Department Chair and Directors Workshop

December 6, 2018

Recording date of this workshop is

December 6th, 2018

Some of the rules and procedures discussed in this workshop are subject to change. Please check university resources before relying exclusively

  • n this recorded presentation.

AGENDA

  • Understanding the University budget
  • Managing Your Unit Budget
  • Modernization
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12/3/2018 2 W A S H I N G T O N S T A T E U N I V E R S I T Y

Washington State Budget

Washington enacts budgets on a two-year cycle

  • Operating Budget
  • Capital Budget
  • Transportation Budget

Higher Education receives discretionary funding from the State

  • Funded after K-12, HHS, pension obligations, debt service

By law the Governor must propose a biennial budget (balanced) before the Legislature convenes in January.

University Operating & Capital Budgets 2015-17 Biennium - $2.297 Billion Total

Operating 87% Capital 13%

$296.7M $2.0B

2015-17 Capital Budget

Total Authority: $311.7 M Projected Expenditures: $296.7 M

(includes Re-appropriation Balances)

S&A Fees & Athletics less than1% each WSU Building/Land Grant Endowment 16% Housing & Dining 4% Local/Private 53% State General Obligation Bonds 26% Parking 1%

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12/3/2018 3 W A S H I N G T O N S T A T E U N I V E R S I T Y

Use of 2015-17 Capital Budget – By Expense Type

State Appropriation, Land Grant Income, and Student Building Fees

Minor Capital Projects – 20% Preventative Maintenance (Operating) – 7% Major Capital Projects – 73%

2015-2017 Operating Budget

Fund Sources – Estimated Total: $2.0 Billion

* Available for allocation

*Net Operating Tuition & Fees 24% Net Restricted Student Fees 4% Federal Grants & Contracts 16% State Grants & Contracts 9% Local Grants & Contracts 3% Ed Dept Sales & Services 2% Auxiliary Enterprises 14% *State Appropriations 16% Other 1% Net Investment Income - 6% Federal Appropriations 1% Gifts/Endowment – 4%

Use of 2015-17 Biennial Budget – By Function

State Appropriation and Operating Tuition

Research 9% Plant Operations & Maintenance 9% Student Services 5% Library 2% Primary Support 9% Public Service 6% Institutional Support 10% Instruction 50%

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12/3/2018 4 W A S H I N G T O N S T A T E U N I V E R S I T Y

Use of 2015-17 Operating Budget – By Expense Type

State Appropriation and Operating Tuition

Salaries and Wages 67% Benefits 18% Operations 15%

Budget Models

  • How institutions allocate resources
  • Two classic models
  • Incremental Budget
  • Responsibility Centered
  • WSU has elements of both
  • PBL
  • Tri-Cities / Vancouver Tuition
  • EBB

WSU Budget Principles

  • General funding is tracked by campus
  • Budget allocations are provided by the Budget

Office to areas/campuses

  • Areas/campuses determine distribution of

funding to their departments

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12/3/2018 5 W A S H I N G T O N S T A T E U N I V E R S I T Y

WSU Budget Principles

Pooled Benefits

  • WSU utilizes a central benefit pool to allocate

resources to cover benefit related costs for particular fund types (001-XX, 143-XX, 148-02, 148-05, 148-06)

  • Automatic budget allocations are made to area

departmental operating accounts where actual benefit expenses are incurred each payroll expense cycle

WSU Budget Principles Distributio Distribution of F

  • f F&A

A Reven Revenue

23% to F&A Revenue Generating Units 7% Libraries 38% Campus Support 28% University Support 4% Office of Research

For more information: BPPM 40.25

WSU Budget Principles Distribution of Generating Units F&A

23% of F&A revenue is distributed to revenue-generating units

Distributions are made in one of three ways:

PULLMAN CONTRACTS URBAN CAMPUS CONTRACTS

WITH Academic Unit Affiliation

URBAN CAMPUS CONTRACTS

WITHOUT Academic Unit Affiliation

Department: 15% Dean: 8% Academic Dean: 11.5% Chancellor: 11.5% Chancellor: 23%

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12/3/2018 6 W A S H I N G T O N S T A T E U N I V E R S I T Y

WSU Budget Principles Accruals (Salary Savings) Policy

* WSU Vancouver, WSU Tri-Cities, Extension, and Ag Research manage their own accruals.

  • Central pool provides for turnover costs (sick and annual leave

payouts), and PIDs

  • Areas retain savings from vacant faculty and graduate student

positions on WSU program 05 (libraries) and 06 (instruction)

  • Areas retain savings from the transfer of expenditures to grants

(programs 11A-14Y) regardless of employee type

  • Central captures savings from vacant classified, administrative

professional, and non-instructional faculty positions for the first four months. Subsequent accruals are returned to areas upon request

WSU Budget Principles Carry Forward Policy

What happens to funds at fiscal year end? Most funds carry forward at the area level. Dean, vice president or chancellor decides if they carry forward at the department level.

  • Operating budgets
  • F&A accounts
  • Donated funds

Some funds do not carry forward

  • Equipment replacement allocations
  • Special allocations for specific purposes,

such as proviso funds

QUESTIONS ?

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12/3/2018 7 W A S H I N G T O N S T A T E U N I V E R S I T Y

Managing Your Unit’s Budget

Don Holbrook

Executive Director, Office of the Provost

Overview

  • Fund Types
  • Budget Statement
  • Planning and Managing Accounts
  • Helpful Hints
  • Sample Reports

University Accounting

  • The source of funds determines the

rules for deposits and expenditures.

–State Appropriations –Self-Sustaining funds –Grant Funds –Donated Funds

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12/3/2018 8 W A S H I N G T O N S T A T E U N I V E R S I T Y Fund Types

  • Can be PBL or Non-PBL Funds
  • Goods and Services which are necessary for the completion of official University Duties

001- State Funds

  • Service Centers- University Community
  • Summer Session
  • F&A accounts

148 - Local Dedicated Funds

  • Course Fees & Administrative Fees
  • Enterprise – Service Centers – External Clients

570 – Other Enterprise Accounts

  • 17A Accounts
  • Advancement Director’s
  • Scholarships & Dean’s Discretionary

846- Advancement & Scholarship Funds

  • Restricted based on the approved/awarded grant budget

145 – Grants & Contracts

State Funds - PBL

  • Planning Budget Level or Planning Base Line (PBL)
  • PBL applies mainly to your state funded accounts
  • Departments normally receive the same PBL allocation

each year.

– A Mass Salary Increase (MSI) will increase your PBL – A Budget Cut will decrease your PBL

  • Not all funds going into your state accounts are PBL.

State funds also come in the form of temporary allocations which can be one-time allocations that may not reoccur.

Preparing the Department Budget

Factors essential to planning the departmental budget (not necessarily listed in priority order) are:

  • The budget from the prior year (PBL and or One-Time Allocations).
  • Enrollment trends in program areas – Enrollment Based Budget).
  • Adjustments in program offerings.
  • Requests for new line positions.
  • Requests for any additional office staff positions.
  • Program replacements or coverage for faculty on grants or

sabbaticals.

  • Number of graduate teaching assistants (GTAs) and fixed-term or

part-time faculty.

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12/3/2018 9 W A S H I N G T O N S T A T E U N I V E R S I T Y Budget Statement

  • 3 Main Areas of Your Unit’s Budget

–Object 00 - Salaries

–Faculty, Staff, Grad Assistants

–Objects 01,02, 03, 04, 06,16 – Operating

Expenses

–Wages, Goods & Services, Travel, Equipment etc.

–Object 07 - Benefits*

Budget Statement Layout

  • Expense Summary by Object
  • Expense Summary by Object/Subobject
  • Expense Detail by Object/Subobject
  • Revenue by Source Subsource
  • Revenue Detail

Sample Budget Statements – Expense Summary by Object

Object Codes Object Title Budget + Project = Account Object Titles Object Codes

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12/3/2018 10 W A S H I N G T O N S T A T E U N I V E R S I T Y

Sample Budget Statements – Expense by Object Sub-object

Subobject Codes Subobject Titles

Sample Budget Statement Expense Detail

“U” identifies Pcard Purchase

Helpful Tips

  • WSU’s Fiscal year runs from July 1 to June 30
  • The fiscal year is identified in the year that it ends (7/1/2018

– 6/30/2019 = fiscal year 2019)

  • Past or current budgets may be good indicators of overall

service and supply needs in the department.

  • Monitor your budgets and ensure that expenses don’t

exceed revenues/allocations.

  • Keep the dean's or VP’s office aware of your department's

budget position. Although they may not always be able to help, it is important to keep up an institutional awareness by constantly communicating your department's needs and cost pressures.

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12/3/2018 11 W A S H I N G T O N S T A T E U N I V E R S I T Y

  • Monthly PBL Reconciliation
  • Monthly Area Reserve Cash Reconciliation
  • Area Reserve - 5 year projections
  • Commitment Tracking (w/ scanned

documentation)

  • Budget Available vs Budget Awarded

Sample Reports

P B L / D E P A R T M E N T / P A G E

FY16-17 PERMANENT BUDGET LEVEL SUMMARY As of April 30, 2017 Type Posn Posn FY16 MSI FY17 Merit/Reten Faculty Position Abolish Other Adj Current Position Description Title JC Emp Posn No. Term FTE End Base Increase Beg. Base Salary Incr Promotion PID Reclass Position PBL Changes Needed Total Adj. PBL Comments Administration 001-01-03A-1151-0001 Employee Name PRINCIPAL ASSISTANT E P P 075247 12.0 1.000 53,267 959 54,226 54,226 Employee Name DIRECTOR F P P 039474 12.0 1.000 119,518 2,151 121,669 121,669 00 Total Salaries 2.0000 172,786 3,110 175,896 175,896 Support Funds: 01 Wages 1,000 1,000 1,000 03 Goods & Services 4,416 4,416 4,416 04 Travel 7,500 7,500 7,500 Total Support Funds 12,916 12,916 12,916 Grand Total 185,702 3,110 188,812 188,812 Processing 001-01-03A-1151-0006 Employee name Program Assistant C P P 038041 1.000 28,644 528 29,172 1,356 1,356 30,528 PID July Employee name Program Coordinator C P P 038818 1.000 37,312 671 37,983 37,983 Employee name Student Svcs Manager E P P 039104 1.000 73,267 1,319 74,586 74,586 Employee name PROG SUP SUPERV I C P P 039248 1.000 47,208 852 48,060 48,060 Employee name Student Svcs Specialist E P P 039895 1.000 51,739 931 52,670 52,670 Employee name Program Assistant C P P 041507 1.000 35,292 636 35,928 2,616 2,616 38,544 JAN Employee name Program Assistant C P P 041822 1.000 40,704 732 41,436 41,436 Employee name Office Assistant 2 C P P 116396 1.000 24,912 492 25,404 1,212 1,212 26,616 PID August Employee name Program Coordinator C P P 116397 1.000 37,008 672 37,680 37,680 00 Total Salaries 13.65 549,534 9,949 559,483 3,657 2,616 6,273 565,756 Support Funds: 01 Wages 35,617 40,617 (4,836) (4,836) 35,781 03 Goods & Services 35,467 30,467 30,467 04 Travel 8,600 8,600 8,600 Total Support Funds 79,684 79,684 (4,836) (4,836) 74,848 Grand Total 629,218 9,949 639,167 3,657 2,616 (4,836) 1,437 640,604 DEPARTMENT TOTAL SALARY 15.65 722,320 13,059 735,379 3,657 2,616 6,273 741,652 DEPARTMENT TOTAL OPERATIONS 92,600 92,600 (4,836) (4,836) 87,764 DEPARTMENT GRAND TOTAL 814,920 13,059 827,979 3,657 2,616 (4,836) 1,437 829,416 Summary of changes to Operations PBL: Beginning Balance: 92,600 Psn 41507 Reclassification (4,836) Operations PBL 87,764 Difference

Area Reserve Cash Reconciliation

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12/3/2018 12 W A S H I N G T O N S T A T E U N I V E R S I T Y

Enrollment Ma na g eme nt Rese rve s (Are a 04) Projec tions

As of: 4/ 30/ 2017 Ac tua l & to Da t e Pr

  • je c t

e d Pr

  • je cte d

Pr

  • je c te d

Pr

  • je c t

e d Pr

  • je c t

e d Pe r m a ne nt Bud g e t L e ve l Funding (PBL ) 2016 2017 2018 2019 2020 2021 Are a PBL 6,847,399 $

  • $
  • $
  • $
  • $
  • $

L e ss PBL Sa la rie s (5,121,498) $

  • $
  • $
  • $
  • $
  • $

L e ss Unit Ope ra tio ns (1,684,430) $ PBL Ad just m e nts for t he Ye a r (55,425) $ 424,829 $

  • $
  • $
  • $
  • $

E nding PBL Ba la nc e (Ar e a R e se r ve ) 8,299 $ 433,128 $ 433,128 $ 433,128 $ 433,128 $ 433,128 $ Ca sh I n - Ar e a Rese r ve 2017 2018 2019 2020 2021 2022 Prior Ye a r Ba la nc e Fo rwa rd 899,322 $ 278,957 $ 8,469 $ 12,383 $ 16,298 $ 20,212 $ Initia l PBL to Ca sh Allo c a tio n (Inc lud e s Pe rm-Te mp $) 8,299 $ 433,128 $ 433,128 $ 433,128 $ 433,128 $ 433,128 $ Ne t Inc o me fro m NSP 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ Fe e A c c o unts 859,259 $ 1,016,323 $ 1,016,323 $ 1,016,323 $ 1,016,323 $ 1,016,323 $ Misc 618,399 $ 104,398 $ 104,398 $ 104,398 $ 104,398 $ 104,398 $ T

  • t

a l Ca sh In - Ar e a Re se r ve 2,523,861 $ 1,932,807 $ 1,662,318 $ 1,666,233 $ 1,670,147 $ 1,674,062 $ Ac tua l/ Pr

  • je c te d

Pr

  • je c te d

Pr

  • je c t

e d Pr

  • jec te d

Pr

  • je c te d

Pr

  • je c t

e d Ca sh Out

  • Ar

e a R e ser ve 2017 2018 2019 2020 2021 2022 Co mmitme nts to Enro llme nt Ma na g e me nt (457,545) $ (336,343) $ (61,940) $ (61,940) $ (61,940) $ (61,940) $ Co mmitme nts to EIT (52,078) $ (79,675) $ (79,675) $ (79,675) $ (79,675) $ (79,675) $ Co mmitme nts to Re c ruitme nt (1,078,835) $ (1,169,378) $ (1,169,378) $ (1,169,378) $ (1,169,378) $ (1,169,378) $ Co mmitme nts to Re g istra r (248,569) $ (30,000) $ (30,000) $ (30,000) $ (30,000) $ (30,000) $ Misc e lla ne o us C ommitme nts (1) $ (60,000) $ (60,000) $ (60,000) $ (60,000) $ (60,000) $ Eq uipme nt Re pla c e ment/ 1187-0004, 1187-0005 & 7304-0998 (98,308) $ (227,461) $ (227,461) $ (227,461) $ (227,461) $ (227,461) $ T

  • t

a l Ca sh Out - Ar e a Re se r ve (1,935,691) $ (1,902,858) $ (1,628,455) $ (1,628,455) $ (1,628,455) $ (1,628,455) $ Ac t ua l Ca sh Ba la nc e - Ar e a Re se r ve 588,184 $ L e ss Co mmitme nts Pro je c ted to Po st in FY17 (309,227) $ 2017 Pr

  • je c ted

2018 Pr

  • je c t

e d 2019 Pr

  • jec te d

2020 Pr

  • je c te d

2021 Pr

  • je c t

e d 2022 Pr

  • jec te d

Pr

  • je c t

e d Ca sh Ba la nc e - Ar e a R e se r ve 278,942 $ 29,949 $ 33,863 $ 37,778 $ 41,692 $ 45,607 $ Annua l Net Ga in / (L

  • ss) - Re ve nue le ss Com m itm e nt

s (620,379) $ (249,009) $ 25,395 $ 25,395 $ 25,395 $ 25,395 $

Commitment Tracking

B U D G E T / S P E N D

Provost FY17 Budget (All 3 Areas Combined)

Unit Total Budget Awarded PBL Salaries (001 & 148‐05) PBL Operations (001 & 148‐05) Salaries, Bens & Operations (148‐01) Area 68 Perm/Temp Funding (001 & 148‐02) Other Temporary Funding (Includes EBB to OUE) (001) Academic Success & Career Advising 1,066,736 702,170 26,415 63,756 274,395 Admissions 829,416 741,652 87,764 Assessment & Innovation 453,592 365,501 42,764 4,904 40,423 Corporate Relations 228,690 208,690 20,000 Enrollment Area Reserves 543,444 (9,049) 270,590 281,903 Enrollment Equipment Replacement 182,971 ‐ 41,471 141,500 Enrollment Information Technology 1,072,470 1,102,811 (75,341) 45,000 Enrollment Management Admin 213,629 180,204 33,425 Equity & Diversity 478,323 305,674 34,873 1,564 136,212 Freshman Seminar 116,999 54,110 30,889 32,000 Honors College 1,158,253 1,136,892 21,361 Institutional Research 748,370 713,050 16,968 18,352 Misc Small Units (ROTC/Ombuds, etc) 611,072 331,436 96,295 182,278 1,063 Museum of Arts 382,768 361,142 21,280 346 Native American Programs 414,771 317,922 13,928 2,169 80,752 New Student Programs 1,803,267 ‐ ‐ 1,803,267 Office of Undergraduate Education 971,779 552,566 36,805 1,306 5,687 375,415 Provost Administration 1,571,303 1,473,323 97,980 Provost Support / Commitments 919,018 ‐ ‐ 908,918 10,100 Recruitment & Marketing 2,471,671 1,014,397 567,775 849,499 40,000 Registrar 1,027,393 665,142 ‐ 362,251 Student Academic Success 286,136 286,136 ‐ Student Financial Services 2,071,214 1,852,819 218,395 Writing Program 379,286 269,130 54,156 56,000 Total Budget Awarded in Area 01 & 04 20,002,571 12,625,718 1,657,793 3,557,119 1,332,199 829,742 ‐ Colleges 796,476 796,476 Colleges ‐ Partner Accommodation 500,000 500,000 Colleges ‐ Dean Searches 215,000 215,000 Other ‐ Non College 210,000 210,000 Grand Total Budget Awarded 21,724,047 12,625,718 1,657,793 3,557,119 3,053,675 829,742 Total Available Budget 20,572,722 12,706,658 1,873,608 3,035,299 2,168,924 788,233 Net Long / (Short) (5.3%) (1,151,325) 80,940 215,815 (521,820) (884,751) (41,509)

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12/3/2018 13 W A S H I N G T O N S T A T E U N I V E R S I T Y

B U D G E T / P L A N N I N G

Enrollment Management Finan

(Does not include 7/1

Unit ----> % of Total Totals % of Admissions Admissions Area Reserves Enrollment Management % of Enrollment Info Tech Enrollment Information Technology Incoming Funding Salaries - PBL 56% 5,271,400 75% 720,604 202,256 98% 1,071,978 Operations - PBL 17% 1,585,152 10% 92,600 14,947 33,425 2% 22,659 Revenue Generated (Net after fees) 28% 2,624,358 16% 150,186 0%

  • Total Incoming Funding

100% 9,480,910 100% 963,390 14,947 235,681 100% 1,094,637

  • Outgoing Funding

Salaries Expense - PBL 54% (5,369,394) 89% (720,604)

  • (202,256)

95% (1,169,978) Salaries Expense - Temporary 3% (262,370) 0% 0% Salaries Expense - Revenue 5% (461,292) 0% 0% Benefits Expense - Revenue 2% (201,281) 0% 0% Sub Total - Salaries/Benefits 64% (6,294,337) 89% (720,604)

  • (202,256)

95% (1,169,978) Operations Expenses - PBL 17% (1,638,852) 11% (92,600) (33,425) 2% (22,659) Operations Expenses - Temp 0% (33,108) 0% 0% Operations Expenses - Revenue 19% (1,905,746) 0% 4% (45,000) Sub Total - Operations Expenses 36% (3,577,706) 11% (92,600)

  • (33,425)

5% (67,659) Total Outgoing Funding 100% (9,872,043) 100% (813,204)

  • (235,681)

100% (1,237,637) Net Long / (Short)

  • 4%

(391,133) 16% 150,186 14,947

  • 13%

(143,000)

Expenditure Tracking Looking at Expenditures at the 75% Mark

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12/3/2018 14 W A S H I N G T O N S T A T E U N I V E R S I T Y

25% increase ’15 to ‘16 83% increase ‘12 to ‘16 Tremendous increase in

  • perations, due mainly to

University initiatives. Travel up from ’15 to ‘16, but down from ‘12. Salaries up 50% ‘12 to ‘16

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12/3/2018 15 W A S H I N G T O N S T A T E U N I V E R S I T Y

Tracking Benefit Allocations on 001 Tracking “Run Rate” Need Help?

Key Contacts

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12/3/2018 16 W A S H I N G T O N S T A T E U N I V E R S I T Y

OFFICE CONTACT FOR ASSISTANCE WITH:

BUDGET OFFICE Kelley Westhoff, Executive Director for Budget, Planning and Analysis 509-335-0907; kwesthoff@wsu.edu CAPITAL BUDGET Deborah Carlson, Capital Budget Director 509-335-3344; dcarlson@wsu.edu Capital Budget CAPITAL BUDGET Carrie Johnson, Capital Budget Analyst 509-335-4606; c.johnson@wsu.edu Capital Budget OPERATING BUDGET Pete Beeson, Budget Office 509-335-4606; beesonp@wsu.edu Planning Budget Level (PBL), Budget Planning System (BPS) OPERATING BUDGET Chris Jones, Budget Officer 509-335-9682; chris.jones@wsu.edu Staff Planning, Fiscal Notes OPERATING BUDGET Maggie McFadden, Budget/Policy Analyst 509-335-1614; maggie.mcfadden@wsu.edu F&A Allocations, S&A Allotments, Fiscal Notes OPERATING BUDGET Dave Anderson, Computer System Administrator 509-335-6829; anderson@wsu.edu BPS STAFF PLANNING Anne-Lise Brooks, Budget/Policy Analyst 509-335-8815; adbrooks@wsu.edu Staff Planning

OFFICE CONTACT FOR ASSISTANCE WITH:

BUSINESS AND FINANCIAL SERVICES Matt Skinner, Associate Vice President 509-335-5524; skinnerm@wsu.edu CONTRACTS OFFICE Amanda Owen, Manager 509-335-7739; amanda.owen2@wsu.edu Contracts, real estate agreements, student affiliation agreements, interagency agreements, contract training CONTROLLER’S OFFICE Manali Bettendorf, Controller 509-335-2008; manali.bettendorf@wsu.edu General financial and accounting policy CONTROLLER’S OFFICE Sponsored Programs & Purchasing Card Casey St Clair, Assistant Controller 509-335-1471; casey.stclair@wsu.edu Sponsored Programs and Purchasing Card CONTROLLER’S OFFICE Accounts Payable &Travel Jessica Johnson, Fiscal Manager 509-335-2033; jhjohnson@wsu.edu Accounts Payable and Travel CONTROLLER’S OFFICE University Receivables Debbie Stellyes, Manager 509-335-1419; stellyes@wsu.edu General questions, student accounts, collections, cashier’s office, general accounts receivable CONTROLLER’S OFFICE Payroll Services Rick Grunewald, Associate Director 509-335-2014; rgrunewald@wsu.edu General Payroll CONTROLLER’S OFFICE Financial Reporting & General Accounting Tami Bidle, Manager 509-335-1202; tbidle@wsu.edu General Accounting, financial statements, account code setup, journal vouchers PURCHASING SERVICES Eric Rogers, Director 509-335-1257; emrogers@wsu.edu Procurement training, commodity purchases, personal services contracts TREASURY SERVICES Karen Kellerman, Senior Investment Fund Manager 509-335-8154; karenk@wsu.edu Banking relationships, investments, electronic payments, WSU Cashiering System

OFFICE CONTACT FOR ASSISTANCE WITH:

FINANCIAL SYSTEMS MODERNIZATION Joy Morton, Director 509-335-2072; joy.morton@wsu.edu Workday implementation project scope and policy questions related to Finance System changes or to escalate issues related to Finance, Change Management or Financial Reporting. HUMAN RESOURCE SYSTEMS MODERNIZATION Jennifer Klein, Director 509-335-4521; kleinj@wsu.edu Human Resource system changes or functionality as part of the Workday

  • implementation. Functions in scope

include: position management, time & leave, benefit administration, compensation and recruitment. FINANCIAL SYSTEMS MODERNIZATION Gerik Kimble, Assistant Director 509-335-2074; gerik_kimble@wsu.edu Workday finance system functionality, and functional concerns related to day-to-day project operations, integrations and data conversion.

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12/3/2018 17 W A S H I N G T O N S T A T E U N I V E R S I T Y QUESTIONS ?

Welcome

to the

Modernization Initiative

Department Chairs & Directors Workshop December 6, 2018

Awareness

What Why Outcomes When Cost Funding Getting involved

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12/3/2018 18 W A S H I N G T O N S T A T E U N I V E R S I T Y

What is the Modernization Initiative

A university-wide effort to prevent system failure and improve support for WSU’s growing research and instruction activities through the replacement of our 38 year old mainframe system and processes

Why now

Recognizing a shared fiduciary responsibility to ensure continuity of University operations, the WSU Board of Regents asked WSU leadership to address this urgent need in a thoughtful and prompt manner. The effort has been underway since January 2016. The decision to proceed is driven by four key areas…

Why now

Coded in a programing language no longer taught in school No outside vendor support Declining number of staff able to make required updates Rapid decline in ability to support system

Growing Failure Risk

System Failure Risk

Case in Point In fall 2014 a glitch in the legacy system halted payroll during the busiest pay cycle of the year, threatening to leave over 1500 employees unpaid. Fortunately, the system issue was fixed just in time for payroll to be processed. Unfortunately, the employee who fixed the issue retired in 2015.

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12/3/2018 19 W A S H I N G T O N S T A T E U N I V E R S I T Y

Why now

Federal and state regulations become more detailed WSU’s workforce grows outside of the state and around the globe Grant awards become more complex Case in Point Federal labor and health care standards have become more detailed, yet WSU continues paper leave reporting, which are difficult to track. Current leave reports are inaccurate 45% of the time.

Non Compliance Risk System Failure Risk

Why now

Non Compliance Risk System Failure Risk Outdated Processes Impede Mission Fulfillment

Then Now

1 Campuses 6 4,400 Faculty/Staff 8,000 8,000 Unique Headcount Receiving a Payroll Distribution 18,800 15,000 Students Served 27,000 $200M Operating Budget $1B ~$41M Research Expenditures ~$300M Circa 1979 Admin Processes and Systems No Change

1980 to Today @ WSU

Case in Point: Grants Management

23,000 manually generated reports, invoices, and effort certifications completed and routed per year. 57,000 estimated faculty and staff labor hours consumed per year. Research deliverables and invoicing are often late

  • r missed due to disconnected manual processes.

Limited ability for faculty to plan and manage grants and contracts.

Why now

Non Compliance Risk System Failure Risk Outdated Processes Impede Mission Fulfillment

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Case in Point: Basic Fiscal Management

30,000 budget or expense transfers routed, signed and input per year. 36,000 estimated faculty and staff hours consumed per year. Unable to easier see remaining budget without a complex financial reconciliation. Planning for revenue is not available

Why now

Non Compliance Risk System Failure Risk Outdated Processes Impede Mission Fulfillment

Case in Point: Paying Employees

115,000 manual adjustments to payroll, routed across departments each year. 28,000 estimated faculty and staff hours consumed per year. Increasing number of errors as WSU grows in complexity

Why now

Non Compliance Risk System Failure Risk Outdated Processes Impede Mission Fulfillment

Case in Point: Tracking Annual Leave

50,000 paper reports completed, routed, and signed per year. 60,000 estimated labor hours consumed per year. 45% error rate.

Why now

Non Compliance Risk System Failure Risk Outdated Processes Impede Mission Fulfillment

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Why now

Non Compliance Risk System Failure Risk Lagging fiscal data to Support Decision Making Outdated Processes Impede Mission Fulfillment

Do you know how much budget you have left for the year?

  • Without a complex reconciliation by finance staff?

Where is that effort certification for my grant? Should I approve the request for time off?

Why now

“Decisions are often based off of anecdotes given a lack of data available. Decisions are based off of what you think you know instead of what is actually occurring” “A lot of money isn’t spoken to in the system” “All of the business rules are in our heads” “What is my current leave balance? No idea” “A mile of paper on top of everything we do” “How much budget do I have left for the year? No idea!” “No single point of truth as to financial performance. Risk of under or over committing resources is high.” “Several hundred different shadow systems to track leave, payroll, and budgets” “Growing research expenditures will be impossible until we have the financial tools to manage grants expenditures effectively.”

In the words of the University community…

Outcomes

End Costly inefficient and ineffective processes Ensure Continuity of university

  • perations

Embrace Modern, scalable and standardized processes to support growth Encourage Data enabled decision making and budget management

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When will it happen

We are here

How much will it cost

  • One-Time Costs = $30M
  • Includes costs such as:

– Integration partner (a consulting firm that helps configure the software to meet WSU needs) – Change management – Training – Appropriate project contingencies.

  • On-Going Costs = $7.0M per year
  • Includes costs such as:

– ERP software – Dedicated staffing – User training and support.

Funding the investment

  • One-Time Costs = $30M
  • Debt financing repaid using $3.1M in revenues that have

covered key infrastructure investments for many years:

  • Student information system debt payment, $1.3M
  • Veterinary Hospital debt payment, $1.8M
  • No increase in annual debt payment
  • No impact on unit budgets.
  • On-Going Costs = $7.0M per year
  • Investment from Strategic Reallocation Pool and revenue

from enrollment growth

  • Seed funds saved up for this investment
  • “Payroll tax” assessed to all units
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modernization.wsu.edu

CONTACTS

Matt Skinner, AVP Financial Services 509-335-5524 skinnerm@wsu.edu Joy Morton, Director Financial Systems Modernization 509-335-2072 joy.morton@wsu.edu Jennifer Klein, Director Human Resource Management Systems Modernization 509-335-4521 kleinj@wsu.edu Gerik Kimble, Assistant Director Financial Systems Modernization 509-335-2074 gerik_kimble@wsu.edu

If you attended this live training session and wish to have your attendance documented in your training history, please notify Human Resource Services within 24 hours of today's date:

hrstraining@wsu.edu

This has been a WSU Training Videoconference