1. Kuali Financial System 2008 Update Kathleen McNeely Chairperson Kuali Functional Council Mark McGurk Functional Council Representative

2. Kuali Financial Systems History and Update

3. Community Source Projects “Community source describes a model for the purposeful coordinating of work in a community. It is based on many of the principles of open source development efforts, but community source efforts rely more explicitly on defined roles, responsibilities, and funded commitments by community members than some open source development models.” …. from www.sakaiproject.org

4. Kuali Financial Systems Community Source Comprehensive –Any Carnegie Class institution; Community College to R1 –e.g. Indiana University 2 R1 campuses 6 smaller campuses Internal Controls

5. Huh? Loose Coupling Decomposed (Non-Monolithic) Software Suites Best of Breed ‘Services’ Non-Proprietary Software Solutions ?? Value Propo$ition$ ??

6. KFS Partners Nine Institutional Partners NACUBO and The rSmart Group are Founding Partners

7. KFS Scope Release I Chart of Accounts General Ledger Financial e-Docs Disbursement Voucher On-line balance inquiries Kuali Enterprise Workflow (KEW) Basic reports Release II Phase I enhancements Completion of y/e closing processes Chart of Accounts global documents Labor Distribution Contracts & Grants (pre award) Purchasing Accounts Payable Release III Budget Construction Accounts Receivable Capital Assets Major Purchasing Enhancements Other Release I and II Enhancements Later Endowment

8. What’s not Included? Applications that could be specific to individual institutions: –Decision Support Environment –Security Structure –Cash Disbursement Configuration, i.e. “Check writers”

9. KFS Features Modular Design Scalability Distributed Access Flexible Chart of Accounts Robust Workflow Engine Sophisticated y/e processes

10. Modular Design E-Forms Kuali Workflow Portal Reports Data Decision Support System and adhoc Queries and Reports Chart of Accounts - General Ledger “External” feeds Payroll Students Receivable Physical Plant Library fines etc.

11. Modular Design Clean “handshakes” between modules Can implement some or all of the modules –Capital Assets module may be more than is needed for schools with limited research activity –The Endowment module may be attractive for schools running other financial systems

12. Scalability No limit to the number of –Users –Accounts –Data values –Transactions –Custom Attributes e.g. IU campuses

13. Distributed Access Department personnel initiate transactions from their desktop web browser – the software is not installed on their machines Initiator receives immediate feedback on the validity of the transaction – both valid data and compliance with business rules Past transactions can be retrieved and reversed or “copied” Transaction data can up uploaded from spreadsheets Documents can be attached in notes

14. Benefits for a Controller/CFO Chart of Accounts made for higher education –Function Codes –Fund Groups –Restriction Status Includes functionality missing in many vended packages –Encumbrances –Carry forwards and reversions –Special reporting attributes customized to each implementer –Fiscal year-to-date and project year-to-date balances

15. Benefits for a Controller/CFO cont’d System is scalable for level of complexity required by different institutions Workflow allows for individual set up for approvals/fyi: school/department/campus Business rule configuration allows for enhanced internal controls Exceptional documentation for users KFS product will include tools for effective financial management –Template of core financial policies –Training Series module for fiscal officers

17. Governance KFS Board –Voting member from each Institution –NACUBO and r-smartn –Chair from Indiana –Extended Board Project Manager –Developers from each Institution Functional Council –Members from each Institution –NACUBO and The r-Smart Group –Subcommittees

18. KFS Governance

19. Glossary of Terms Glossary of terms being developed by KFS Functional Council Exercise started last fall Goal is to have Glossary posted in June Current volume: –23 pages –Approximately 650 terms

20. Community Source or Commercial Financial Information System the University of Arizona Experience –Mark McGurk - Comptroller

21. University of Arizona’s Experience Research I University 36,805 Students, 11,661 FTE Employees $1.284 Billion in annual expenditures –66% salary & wages and fringe benefits Everything data-entered centrally No electronic workflow Departmental need for detailed costing

22. Partner Implementation Plans Start DateCompletion Date Indiana UniversitySpring, 20082011 University of ArizonaSpring, 2008July, 2009 Cornell UniversityJanuary, 20072012 Michigan State UniversityFall, 2008October, 2009 San Joaquin DeltaFall, 2009July, 2010 University of California Davis20082012 University of California Irvine20092011 University of Hawaii20082010-2011 Colorado State UniversityFall, 2007July, 2009 University of Southern California2010undetermined *Some Dates are tentative and will change with additional planning

23. Kuali Financial System 2008 Update Questions?