1. United Nations Development Programme United Nations University UNU Atlas Implementation Project Chart of Accounts/ChartFields and Key Coding Elements: Introduction and Possible Design

2. Overview Chart of Accounts (COA) Introduction Existing FBPMS Chart of Accounts UNU Reporting Requirements Atlas ChartField Framework Projects Page 2

3. Chart of Accounts (COA) An organizing framework used to budget, record and report on all financial transactions and account balances Identifies details about the organization’s financial transaction Atlas terms the individual elements of the Chart of Accounts as ChartFields UNU’s existing Finance, Budget, and Personnel Management System (FBPMS) organizes through two sets of codes: –Allotment Account Code –General Ledger Code Page 3

4. Allotment Code –Indicates specific Centre/RTC and whether operating or endowment fund –Example: IUR (Centre Operating) Section Code –UNU Centre - Indicates Thematic Area (Academic Activities) or specific office (Governance and Administration) –Example: 18800 (Admin), 13301 (Peace and Governance) Object of Expenditure –Nature of activity (i.e. expenditure) –Example: 421 (Electricity) Allotment Code Section Code Object of Expend Thematic Area Sub Program Core or Year Seq Project Code Fund Class Account Code Allotment Account Code General Ledger Code Unit Id

5. Sub Code Thematic Area –High level specialization –Example: 01 (Peace and Security) Sub Program –Lower level specialization –Example: 02 (Conflict and Security Studies) Core or Year –Year that budget first approved Sequence –Incremented as funds received from additional donors Allotment Code Section Code Object of Expend Thematic Area Sub Program Core or Year Seq Project Code Fund Class Account Code Allotment Account Code General Ledger Code Unit Id

6. Project Code –Each Project is tied to one Sub Code –Includes year, unit, sequence, and complete field in identifier Allotment Code Section Code Object of Expend Thematic Area Sub Program Core or Year Seq Project Code Fund Class Account Code Allotment Account Code General Ledger Code Unit Id

7. General Ledger Code Unit Id –Centre/RTC Fund Class –Operating or Endowment Fund Account Code –Example: 016 (Cash On Hand) –Bank information (cash) –Institution or nature of individuals (receivables) –Object code or expense account (expenditures) –Country –Currency Allotment Code Section Code Object of Expend Thematic Area Sub Program Core or Year Seq Project Code Fund Class Account Code Allotment Account Code General Ledger Code Unit Id

8. Page 8 Reporting Requirements - Income Collected Funds – includes funds where cash has been received –By Sub Program –By Donor Income – includes collected funds plus accruals for income not received –By Sub Program –By Donor Donor presentation should allow classification by –UN Agencies –Governments –Non-governmental Organizations –Private Sector –Individuals

9. Reporting Requirements - Expenditure Columns for –Budgeted/Allotment Amount –Obligation Amount –Liquidation Amount –Disbursement Amount –Total Expenditure Must shows amounts: –By Sub Code –By Object of Expenditure –By Section Page 9

10. Reporting Requirements - Budgets Budgeted Amount –Amount approved by UNU Council Allotment Amount –Current budget allotment –Could be higher than Budgeted Amount due to supplemental approval of budget Budgets include –Allotment Code –Section Code –Sub Code –Project Code (optional) –Object of Expenditure Page 10

11. Atlas Integration Page 11 Purchasing (Obligations) Accounts Payable (Vouchers) Treasury (Bank/Investment Transactions) Accounts Receivable Receivables/ Income HR/Payroll (Payroll Costs) Ledger Interfaced GL Journals Online GL Journals Projects

12. Atlas General Ledger – The Big Picture What is the GL? –Record financial activity and provide management useful current and historical financial data. –Encompasses the following areas: Process Journal Entries User-defined chart of accounts with multi-level reporting capability Maintain Budgets Process Allocations Creates closing entries required at the end of an accounting period. Revalues assets and liabilities Controls and executes the processes required to open a new reporting period –All financial transactions from the various Atlas modules ultimately are recorded in the General Ledger –Transactions are recorded based on the Atlas ChartFields Page 12

13. Atlas ChartField Framework The following slides provide an overview the Atlas ChartField framework in use by the 5 current Atlas agencies (UNDP, UNCDF, UNIFEM, UNOPS, UNFPA) Final UNU design and data mappings from FBPMS is still being considered, but current thoughts have been noted UNU design and data mappings to be driven by: –Financial reporting requirements –Management reporting requirements –Budgeting and commitment control There may not be a direct mapping from FBPMS to Atlas –Changes may be adopted to fit UNU in the Atlas framework and to improve upon the information that can be obtained for UNU’s financial and management reproting Page 13

14. Page 14 Atlas ChartFields GL Bus Unit Account Fund Code Operating Unit DeptId Project Id Impl Agent Donor Whose transaction is it? What type of transaction it is? Where the money comes from? What the money is being used for? Which entity is responsible?

15. GL Business Unit Existing Atlas Usage An independent entity which segregates its accounting data for tracking, reporting and auditing purposes Represents the highest financial reporting level in Atlas/PeopleSoft Entries are balanced by GL Bus Unit (in addition to Fund and Operating Unit) GL Business Unit currently be used for agencies and UNDP major subfunds (UNCDF, UNIFEM) There are a total of five existing GL BUs: –UNDP1, UNCDF, UNFEM, UNFPA, and UNOPS Proposed sixth GL BU to be used for all of UN University: UNUNI GL Bus Unit Account Fund Code Operating Unit DeptId Project Id Impl Agent Donor 5 alphanumeric characters - Examples: UNDP1, UNOPS, UNFPA Possible UNU Usage/FBPMS Mapping Sixth GL BU to be used for all of UN University: UNUNI

16. Account GL Bus Unit Account Fund Code Operating Unit DeptId Project Id Impl Agent Donor Existing Atlas Usage Natural classification of balance sheet and income and expenditure transactions Supports corporate statutory reporting Supports reporting the nature of financial transactions without going to sub-module Accounts are shared across all Atlas agencies Account ranges are used to simplify identification of account classification New accounts added only upon approval of all agencies –Few accounts added for specific agencies when requirements are unique 5 numeric characters - Examples: 11005 (Cash at Bank), 73105 (Rent) Possible UNU Usage/FBPMS Mapping UNU will adopt existing shared Account values utilized by all Atlas agencies Accounts can be rolled up on UNU-specific tree to facilitate financial reporting If UNU account needs are identified which are not available, will be submitted to inter- agency accounts committee for review Accounts will be mapped from the existing Account Code and Object of Expenditure

17. Account Page 17 GL Bus Unit Account Fund Code Operating Unit DeptId Project Id Impl Agent Donor Account TypeAccount Range Assets10000 to 19999 Liabilities20000 to 29999 Net Assets30000 to 39999 Revenues40000 to 59999 Expenses60000 to 79999 Account ranges are used to simplify identification of account classification

18. Fund Code GL Bus Unit Account Fund Code Operating Unit DeptId Project Id Impl Agent Donor Existing Atlas Usage Legally separate source of funds which is self balancing and has a separate board or donor mandate Each Atlas organization maintains a separate set of fund values Funds of a similar type are grouped into ranges Fund generally establishes the rules for budgetary control in Commitment Control, such as the level at which budgets are controlled (Fund/Project/Donor, Fund/Dept, etc.) 5 alphanumeric characters Examples: 02000 (Reg Res Mgmt & Adm – HQ), 30000 (Prog Cost Sharing) Possible UNU Usage/FBPMS Mapping Single fund code for Operating Fund Further allocated to institute level through combination with Operating Unit and/or Department Single fund code for Endowment Fund Further allocated to institute level through combination with Operating Unit and/or Department One or more fund codes for Specific Project Contributions (SPCs) Fund Code serves similar purpose and will be mapped from FBPMS Fund Classification

19. Operating Unit GL Bus Unit Account Fund Code Operating Unit DeptId Project Id Impl Agent Donor Existing Atlas Usage For UNDP and UNFPA, represents country offices, major HQ units ISO code is used for country offices Operating unit is self-balancing UNCDF does not use the Operating Unit ChartField, UNOPS only uses for banks While the Operating Unit ChartField is generally shared, some specific units have been established specifically for individual agencies Operating unit controls bank account security, can secure certain bank functions in Atlas based on operating unit to which user has access 3 alphanumeric characters Examples: H17 (Office of Finance), MYS (Malaysia), 5AE (UNOPS UAE) Possible UNU Usage/FBPMS Mapping One Operating Unit for each RTC One Operating Unit for UNU Centre (Tokyo and Kuala Lumpur) Format 6xx where xx will be an alphanumeric identifier for the RTC or Centre (possibly same as FBPMS allotment code prefix) 6 signifies UNU as Atlas agency #6 Similar format to UNOPS (5xx) and UNFPA (4xx) operating units used for bank accounts Operating Unit maps to FBPMS Allotment Code

20. Department Id GL Bus Unit Account Fund Code Operating Unit DeptId Project Id Impl Agent Donor Existing Atlas Usage Represents the hierarchical management structure of entities Identifies departmental owner of a transaction Departments (DeptId) correspond with and are created automatically from HR departments Each employee in HR belongs to a department Each project assigned an owning department Usually represents a lower level breakdown beyond Operating Unit Separate Department values used for each of the 5 existing GL BUs Budgetary department is a “higher level” department used for budgeting only Budgetary department is of format B0xxx where xxx becomes the first three characters of the detail department (i.e. B0136 = 13601 to 13699) 5 numeric characters (budget department prefixed with B) Examples: 13601 (BOM/CBS/Cntrl Managed Support), B0136 (BOM/CBS Budget Dept) Possible UNU Usage/FBPMS Mapping For RTCs, Department represents RTC For UNU Centre, department represents various offices or Thematic Areas Peace and Governance UNU Council Office of the Rector Admin Safety and Security Outstanding Questions Does Sub Program also need to be captured in DeptId or can Sub Program be handled via project tree rollup or via fund? Should Administration be broken down into Finance, Procurement, HR, etc? At what level are budgets prepared?

21. Project Id GL Bus Unit Account Fund Code Operating Unit DeptId Project Id Impl Agent Donor Existing Atlas Usage Captures development as well as management project costs and revenue Provides the link between General Ledger and Projects, Grants and Contracts modules Projects are also grouped into “Projects Business Units” which can be used to segregate lookups of projects and establish unique project rules Sequentially numbered, no logic embedded in numbering Projects are mapped to Awards and assigned attributes as discussed later in the presentation 8 numeric characters (except summary projects, which are alphanumeric) Examples: 0061675 UNU Atlas Implementation, 00061085 (Atlas Application Support) Possible UNU Usage/FBPMS Mapping Single Projects Business Unit for all of UNU to allow all projects to be rolled in a single tree Project Ids are sequentially numbered as they are for other Atlas agencies Project Code from FBPMS will be mapped to Project Id, but logic will no longer be embedded in the Project Id numbering Projects can be rolled up to Thematic Code and Sub Program via Project Tree Outstanding Questions Are projects linked to Thematic Code and/or Sub Program via Department Id tied to the project or just in a tree?

22. Implementing Agent GL Bus Unit Account Fund Code Operating Unit DeptId Project Id Impl Agent Donor Existing Atlas Usage Tracks advances and payments made to or on behalf of implementing agencies and executing agencies. Shared by all GL Business Units 6 numeric characters Examples: 001981 UNDP (Direct Execution), 001977 UN Office for Drug and Crime Possible UNU Usage/FBPMS Mapping Implementing agent not necessary Advances can be tracked either by AR or through Open Items

23. Donor GL Bus Unit Account Fund Code Operating Unit DeptId Project Id Impl Agent Donor Existing Atlas Usage Required to track donors’ revenue as well as expenses apportioned to different donors/funding sources and to facilitate donor reporting Donor table is populated automatically when a new Customer code is added UNFPA does not use Donor ChartField because this information is imbedded in their Fund code Donor shared among UNDP and its sub-funds (UNCDF, UNIFEM) UNOPS uses unique donor code 5 numeric characters Examples: 00012 UNDP, 00034 UNU, 10012 Bill and Melinda Gates Foundation Possible UNU Usage/FBPMS Mapping Specific list of donors managed by UNU (not shared with UNDP) Donors established and mapped from existing Institution portion (Additional Information 1) of FBPMS General Ledger Code

24. Trees Page 24 Used to roll up ChartField values into higher level groupings for reporting and other purposes Can be established for any ChartField If needed, can also define more than one tree for each ChartField Example: UNDP Fund TreeExample: UNDP Donor Tree

25. Additional GL Data Elements Currency Code –Balances are maintained in the GL in both original transaction currency and base currency (i.e. USD) –Base currency balances are periodically revalued according to prevailing exchange rates (UNORE) –Unlike FBPMS, separate accounts by currency are unnecessary Open Item Key –Used to maintain advance balances that are not managed in Accounts Receivable, such as staff advances Other data elements such as detailed bank account information, receivables, etc. are maintained in the various source modules and not in the General Ledger Page 25

26. Application Business Unit Page 26 PO Bus Unit AP Bus Unit AR Bus Unit Billing Bus Unit AM Bus Unit Existing Atlas Usage Application Business Units allow transactions to be managed and grouped together based on the operational unit processing the transaction Includes business units in Purchasing, Accounts Payable, Accounts Receivable, and other modules Forms part of the transaction identifier Example: MYS10 00000300 and UNDP1 00000300 are two separate vouchers Application business unit does not indicate who is being charged for the transaction (this is determined by the regular ChartFields) Generally aligned with operating unit values xxx10 = UNDP, xxx20 = UNCDF, xxx30 = UNIFEM, xxx40 = UNFPA, xxx50 = UNOPS xxx = operating unit value 5 alphanumeric characters Examples: UNDP1 (UNDP HQ), MYS10 (UNDP Malaysia), THA30 (UNIFEM Thailand) Possible UNU Usage Operational business units created to correspond with each RTC and UNU Centre (Tokyo and Kuala Lumpur) Format adopted is xxx60 where xxx is the Operating Unit value 6IU60 for UNU Centre (6IU as operating unit) Operational business units will not be necessary in some modules for some offices because those offices do not perform functions in the module Accounts Receivable might only be processed by UNU Kuala Lumpur Dependent RTC’s might have some additional functions perfomed by UNU Kuala Lumpur

27. Projects Project Id field serves as the link between the General Ledger module and the Projects module Projects module contains additional project-related details needed for managing and monitoring projects All source systems feed information into Projects, similar to how they feed information into the General Ledger Page 27

28. Project Hierarchy and Key Attributes Award ID Project ID Activity ID Resource ID Project ID Activity ID Resource ID Sub Program Thematic Area Sub Program Project Description Baseline & Indicators Annual Target Annual Achievement Project Type (R) Start/End Date Risks Issues Monitoring Schedule Major Goals Award Purpose (R) Start/End Date Purpose Description Quality Criteria Quality Assessment Activity Type (R) Start/End Date ChartFields Vendor Amount Accounting Date Transaction Date Project Tree