Lawson Roadshow June 11, 2009

Agenda Lawson: What are we getting? Finance transition activities for the practice plans Q&A 2

Lawson Overview 3

Lawson System Integration 4

Understand How to Login to Lawson Logging into Lawson will be familiar if you access to other secure websites, for example, the USC intranet 1.Go to 2. Enter the User Name and Password provided 3.Click “Login” User Names and Passwords are case sensitive 5

The Lawson Portal Home Page The bookmarks in the Navigation Pane allow you to move between pages by clicking on a link Clicking on the Lawson logo from any page will bring you back to the Portal Home Page You can conduct searches within Lawson, and also on specified Internet sites Refer to the Status Bar to learn the status of your job 6

Drilling Around GL95 – Account Analysis 1.Enter department’s Company number 2.Enter Accounting Unit 3.Enter Account (or range) 4.Click on Account 5.By clicking on the Accounting Unit, this screen appears which displays the balance for the particular Accounting Unit and Account previously entered 6.To view more details click on Transactions 7

Drilling Around GL95 – Account Analysis 7.All the detailed transactions are listed 8.To view more details of the transaction right click on the transaction 9.View the source and posting date of the transaction 8

The Drill Around feature for Reports is the ability to view additional detail about values or items that appear in a Report. For Reports that have been set up to allow Drill Around activities, many values or items in the Report appear as links. By clicking on these links, as highlighted when viewing the Report, it is possible to drill down to the original source system for specific information. 9 Drill Around for Reports Any blue text within the report is a link that can be drilled for additional information. For this asset report, we click a total…..

….and specific information about the asset appears. …..And we see a series of drill options within the Drill Explorer section. We pick “Asset Information”…… 10

We can go further by clicking on the ‘Accounts’ link…… And we see specific information about the account types, accounting units, accounts, etc….. 11

And So On…….. 12

And So Forth…….. The flexibility of Drill Around enables you to conduct in-depth analysis of key data via convenient access to supporting transactional information. 13

The Use of Standard Reports Lawson provides an excellent selection of standard reports, including financial, asset and transactional reports. For example, you can Run Balance Sheet (GL292) to print a report of all Balance Sheet accounts printed in the Chart of Accounts hierarchical order. 14

GL292 Standard Report Output 15

The Use of Configured Reports Using Report Writer, a user can configure Reports. Rows and formats can be defined separately for ease of maintenance and greater flexibility in Report creation. 16

Lawson Training Update Practice Plan users will attend one classroom session of up to three hours, tailored to how they will be using Lawson. Topics include: Lawson Basic Navigation GL Inquiry and Reporting AM Inquiry and Reporting Allocating Payroll to Cost Centers Training registration s are being sent this week. The will include a link to the online registration page and instructions about how to register Classes are being offered from June 24 th through July 1 st All training will take place at HSC in the Stauffer Pharmaceutical Sciences Center (PSC), room 302B Class size is limited to 15 participants Access to Lawson will be granted on July 1 st to those who have completed training. A high-level refresher course is being considered for the end of July. Course Presentation Quick Reference Card 17

Lawson Go Live Activities Timeline June July August Communications Data Conversions User Support Post 7/1 Activities Training End User Support TR Financial Systems Sunsetting Close Out System Assets GL Actuals Feedback Interviews Pre-Go Live Go Live Post Go Live TR = Training Refresh = s = Interviews = Roadshows 18

Financial Transition Activities 19

Cash and Non-Cash Investments Pre July 1Post July 1 Choose a USC investment category that matches the purpose of the department’s fund –Departmental designated –Endowment account Transfer authority for departmental bank accounts to USC Care/USC Funds will be accounted for by department –Departmental designated (working capital fund) –Endowment account (permanently restricted) 20

Operating Cash – A/P Pre July 1Post July 1 Estimate anticipated cash needs for all expenses incurred by the department prior to 07/01/09 and all patient credit balances listed in the Cash – Revenue & A/R section Set up vendors in WEBBA Department will forward last check run through 06/30/09 to Medical Finance Department to pay all A/P > 60 days old before 07/01/09 and will use best efforts to pay as much of A/P as possible prior to 07/01/09 (this will avoid more work for the departments) Transfer all A/P 0-60 days old to USC Care for payment (Must go through normal USC purchasing and A/P processes) Department will no longer have access to “old” corporate 501(c)(3) bank accounts to draft new checks Set up vendors in WEBBA (if not completed pre July 1 st ) Department will utilize USC process for vendor payments 21

Operating Cash – Revenue and A/R Pre July 1Post July 1 Transfer authority for departmental bank accounts to USC Care/USC USC will reserve any A/R accounts >240 days old in the net valuation Identify patient credit balances >360 days, USC will not absorb these accounts Identify credit balances >60 days old and reserve cash for this amount Department to reconcile corporate bank account that includes transactions through 06/30/09 Department will reconcile subsequent monthly bank statements for the existing corporate accounts Medical Finance will review bank reconciliations Corporate bank account(s) will be swept on a daily basis Medical Finance will reconcile the USC Care bank accounts for post July 1 activity USC Care/USC to set up mechanism with bank(s) for daily deposits to be electronically transferred to USC Care/USC identified accounts Departments will continue to follow current process for services provided prior to 07/01 (e.g. payment posting by department) Departments will follow new IDX policies for services post 7/1 (e.g. payment posting will be done centrally) 22

Patient Accounts Receivable Pre July 1Post July 1 Maximize collection efforts on any accounts >240 days old. Medical Finance will value >240 days at zero. Account for allowances and bad debt based on aged trial balance and historical cash collections analysis Identify any patient account credit balances >60 days as they will need to be included in the cash reserve amount identified in the Cash – Revenue & A/R section Identify any patient account credit balances >360 days old and refund these amounts. USC will not absorb these accounts. See diagram on next page 23

Accounts Receivable Process Old bank account New bank account Point of Service Payments New IDX Lawson G/L Automated Interface Old IDX Post 7/1 Pre 7/1 Journal Entry Date of Service 24

Payroll Related Pre July 1Post July 1 Provide a detailed description of any accrued payroll related liabilities held by the department at 06/30/09. It is anticipated departments will make final payments 06/30/09. Physician compensation and year end incentive payments will need to be estimated 06/30/09 as an accrued liability. Identify and pay any pension related costs prior to 06/30/09 Payroll will be processed in accordance with USC’s payroll processing procedures Departments will enter clinical pay allocation splits directly into Lawson at the cost center level Departments will track physician compensation incentives on a quarterly basis 25

Fixed Assets Pre July 1Post July 1 Provide a listing to USC Care, fixed assets by major classification utilizing the template provided Identify obsolete fixed assets to be written off by 06/30/09 Transfer individual fixed assets >$5,000 to USC and depreciable useful life > 1 year Department will procure fixed assets through USC policies and procedures Load individual fixed assets >$5,000 into the Lawson System Medical Finance will load the transferred departmental fixed assets into Lawson 26

Other Assets Pre July 1Post July 1 Provide a detailed listing to USC of these assets These items will be acquired and/or monitored through USC’s policies and procedures Maintain current inventory tracking systems Transfer these assets to USC Care Note: Examples of other assets could include inventory, prepaid expenses, non patient related A/R 27

Other Liabilities Pre July 1Post July 1 Provide a listing to USC of these liabilities Transfer these liabilities to USC Care These items will be acquired through USC’s procurement policies and procedures Note: Examples of other liabilities could include rent payable, external debt payable, etc. 28

How often will data be posted to Lawson? Weekly: Old IDX payments (posted at the department level) Daily: New IDX payments Purchasing Employee demographic data Patient Refunds Old IDX Departments will process patient refunds and enter check requests into WEBBA New IDX Patient refunds will be centrally processed by USC Care 29

Questions and Answers 30