LaGOV LaGOV Version 1.0 Last updated: Nov 12, 2008 Agenda - PowerPoint PPT Presentation

Funds Management – – Budget Budget Funds Management Funds Management – Budget Availability and Control: Work Availability and Control: Work Availability and Control: Work Orders Orders Orders FI- -FM FM- -004 004 FI FI-FM-004 November 13, 2008 November 13, 2008 November 13, 2008 LaGOV LaGOV Version 1.0 Last updated: Nov 12, 2008

Agenda  Logistics, Ground Rules & Introduction  Project Timeline  Workshop Objectives  Business Process Review – Process overview – AS-IS process flow – Current system alignment – Process improvement opportunities – SAP terms Glossary – SAP concepts & functionality – Business process flow – Leading practices – Enterprise readiness challenges  Next Steps – Action items  Questions 2

3 Before we get started ... Logistics

Ground Rules  Has everybody signed in?  Everybody participates – Blueprint is not a spectator sport  Silence means agreement  Focus is key – please turn off cell phones and close laptops  Challenge existing processes and mindsets  Offer suggestions and ideas  Think Enterprise & Integration  Ask questions at any time  One person at a time please  Timeliness – returning from break  Creativity, Cooperation and Compromise 4

Introduction  Roles  Process Analyst and Functional Consultant – lead and facilitate the discussions, and drive design decisions  Documenter – take detailed notes to support formal meeting minutes to be sent by the Process Analyst to all participants for review and feedback  Team Members – provide additional support for process discussions, address key integration touch points  Subject Matter Experts – advise project team members on the detailed business processes and participate in the decisions required to design the future business process of the State Round the Room Introductions Name Position Agency 5

Project Phases  Five Key Phases Preparation Realization Preparation Business Blueprint Go Live Support Project Final and • Strategy & Approach Defined • Development & Unit Testing • Go-Live Support • Project Team Training • Integration Testing • Performance Tuning • End-User Training Materials • Business Process Definition • User Acceptance • Development Requirements • Technical Testing • End-User Training • Conversion 6

Project Organization - Functional Teams Finance Leads Logistics Leads Linear Assets Leads Beverly Hodges – Finance Lead Belinda Rogers – Logistics Lead Mark Suarez – Agile Assets Lead Drew Thigpen – Finance Lead Jack Ladhur – Logistics Lead Charles Pilson – Consulting Lead Mary Ramsrud – Consulting Lead Brad Denham – Consulting Lead General Ledger Accounts Payable Accts Receivable Cash Management Fernando Figueroa Lucie Hidalgo Cost Accounting Richard Lozano Funds Management Grants Mgt Project Systems Asset Accounting Budget Prep Grantor Real Estate Mgt 7

Blueprint Objectives  Review and discuss the Current or AS-IS business processes • Which helps to drive out the Business requirements Business requirements • As well as the integration points integration points with other processes  Define Master Data • Address key integration points • Support organizational requirements • Consistent and appropriate use of data fields  Define Future or TO-BE business processes based on: • Best Practices inherent in SAP • Intellectual capital from other SAP implementations • State business requirements  Identify development requirements • Which could result in the need for a F orm, R eport, I nterface, C onversion, E nhancement, or W orkflow (FRICE-W)  Understand and communicate any organizational impacts / Enterprise Readiness challenges  Gather system security authorizations and district-wide training requirements 8

Work Session Objectives  Review As is budget control for DOTD and Non-DOTD maintenance work orders in scope  Define posting, budget and budget control addresses in FM for work orders  Review expense types and reach budget control decision for each, including exemptions from budget control  Describe the timing of budget consumption and control for work orders 9

FM Sessions Session No of Schedul Description/Major Session # Overview of major Session Topics days e Business Process Group FM master data fields will be introduced. The use, mapping to legacy, naming convention and FI-FM-001 1 days 7-Aug FM Master Data maintenance process will be determined. Need to coordinate Budget Prep design with FM, GM, GTR and PS in ECC 6.0 for budget preparation and budget amendments. Define FM budgeting characteristics including Budget Budget Preparation, Versions, Budget Types/processes (Original, Carry Forward, Supplementary, Transfers & 17-18 FI-FM-002 2 days Amendments and Returns), Budget & Posting address (Budget Structures), Budget Doc types. Discuss options Sep Integration for Budget Amendments/Adjustments (AS-IS & TO-BE). Determine the frequency of “Plan” Retraction to SAP R3 (FM, GM, PS, HR-PBC) and update frequency of “Actual” data into BW cubes, from ECC and other systems Define budget control level (AVC addresses) in FM for departments/agencies, capital projects 22-23 Budget Availability and grant budgets (by FM Master Data) by fund and expense type. Define exceptions for FI-FM-003 2 days Oct and Control - General budget control. Define the FM standard and budget tolerance profiles used by SBBC. Review other FM functionality which may be useful in budget control Budget Availability Define budget control address for work orders from PM and Agile Assets. Determine use of FI-FM-004 1 day 13-Nov and Control - Work automatic reservations at time of order creation. Determine the process for creating related FM Orders master data and coordination with PM/Agile assets master data. FM Budget Process by which FM gets updated for actual expenditures (posting address) Consumption - Pre-encumbrances and encumbrances from MM FI-FM-005 1 day 1-Oct Expenses and FM Earmarked funds – type, use and liquidation process Encumbrances Use of non-consumable budget types for reservations Review FM Month End Activities including Opening / Closing FM Periods and Transferring FM Period End Commitments to FI-GL. Review Additional FM Year End Activities including Commitment and FI-FM-006 1.0 days 8-Oct Processing associated budget balance carry-forwards, Residual Budget Carry-Forwards and Fund Balance Carry-Forwards. Review requirements for budget basis reporting Budgetary Basis FI-FM-007 1 day 18-Nov Review current reports Reporting Determine To Be reports framework 10

SAP Glossary – FM module FM BUDGET AVAILABILITY FUND CENTER (AGENCY, APPROP CONTROL (AFS / DOTD Budget EXPENSE PROGRAM, AFS Control) - Component in FM DIV/SECTION, DOTD DISTRICT or SECTION/DIV/GANG) - lowest level which controls budget according to FM dimensions of fund, fund areas of responsibility for budgetary center, commitment item, funded monitoring and control. program, functional area and COMMITMENT ITEMS (BAL.SHEET grant. ACCOUNT, OBJECT, SUB-OBJECT, FUND (FUND, MOF (TBD)) - A REVENUE SOURCE) – represent fiscal and accounting entity with a balance sheet, revenue and expenses accounts in FM. self-balancing set of accounts which are segregated for specific activities or attaining certain FUNDED PROGRAM (CAPITAL objectives in accordance with PROJECTS, GRANT PROGRAMS) - lower level internal programs or special regulations, restrictions, or limitations. Represent the lowest initiatives, such as capital projects, grant level of funding used for tracking, funded programs, grantor programs, controlling and reporting on expense projects or maintenance orders, used for budgetary control & available financial resources. reporting in FM. 11

SAP Glossary – FM module FUNCTIONAL AREA (ACTIVITIES, FUNCTIONS) – Cross-organization FM object used to divide organizational costs according to functional aspects, activities or programs to meet legal or internal reporting requirements GRANT (REPORTING CATEGORY) – Lower-level funding instruments used to document, control and report on the results of an agreement between a sponsor and an organization. Represents externally funded grants. 12

As Is: Budget Control – DOTD Work Orders  Work Orders are entered into SAP HR and interfaced to DOTD accounting system: – Salaries/Benefits: Recorded against home organization and are not allocated or charged to the organization where the work order is being performed. – Equipment usage: Cost of equipment usage is charged to the work order but no budget is checked at work order. The equipment expense is charged to the organization that purchased it at the time purchase. – Inventory/materials: Like equipment, inventory is charged to work orders but is not budget checked. Inventory is budget checked when it is purchased. There is no budget check when inventory is consumed except when the consumption is by another district or section than the issuing district. 13