1. Rutgers University Future state monthly close calendar
May 11, 2015

2. Agenda Rutgers University Finance close objectives
Key improvement themes identified during the assessment
Proposed monthly close process
Governance framework
High level close cycle
Stakeholder’s roles and responsibilities
Materiality thresholds framework
Next steps

3. Rutgers University Finance close objectives
Business Objectives
Develop a standard monthly close process across Rutgers enabling:
Consistency in processes and quality of business results
Ability to leverage technology to improve automation
Timeliness of month-end close and reporting
Agility with on-going finance improvement efforts (e.g. HFM, RCM, future ERP rollout)
Organization structure with right skills and capabilities to support finance and accounting requirements
Key Levers for Improvement
Standardize and formalize accounting processes for better integration of Legacy Rutgers and RBHS
Define overall governance model to ensure quality and accuracy of financial data
Leverage current technology to increase efficiency and data accuracy
Establish Finance organization and process model to align with future state reporting structure

4. Financial Statement Close Process
Rutgers University Financial Statement Close Process Key improvement themes identified during the assessment
Standardize and formalize accounting processes for better integration of Legacy Rutgers and RBHS
Establish process governance & monitoring
Reinforce control procedure leveraging technology enablers
Ensure appropriate financial statement quality review
Set up adjustment reporting materiality threshold and responsibility
Financial Statement Close Process
Standardize transactional processes across Rutgers organization (accounts payable, payroll, T&E, fixed assets)
Define a common monthly close calendar with clear cut-off dates
Standardize month end close activity
Standardize and automate JE’s
Standardize operating model between both structures to support transactional processes
Define roles and responsibilities across shared services, Central Accounting and school finance teams
Establish Finance organization and process model to align with future state reporting structure
Maximize use of current technology capabilities (e.g., close management, account reconciliation, fixed assets modules etc.)
Automate GL feeding
Automate revenue & cost allocation model based on RCM defined
Leverage current technology to increase efficiency and data accuracy

5. Proposed monthly close process Governance framework
DRAFT – For discussion purpose only
Proposed monthly close process Governance framework
Governance model
Define clear common accounting policies across Rutgers schools/central units (e.g., cut-off procedures, revenue recognition, AP and Payroll accrual calculation, cut-off procedures, escalation path)
Centralize transactional accounting activities
Define performance measurement framework
Embed Central Accounting oversight on close cycle by implementing controls and monitoring process (e.g., Pre-close meetings with accounting team) and centralizing close activities
Reinforce control and accountability at unit and campus levels regarding monthly financial reports (e.g., Campus Pre-close meetings coordinated by Vice Chancellor’s office, report analysis, sign off)
Work in progress
CONTROLLER’S OFFICE
CENTRAL ACCOUNTING
Decision & Policy
Establishes and monitors accounting policies and procedures
Review accruals journal entries and compliance with policy
Consolidates business results and prepare internal and external reports
Conducts final financial report reviews and variance analysis for Final RU reports
TBD - Accrual booking process and roles definition in progress
CAMPUS
Vice Chancellor’s office, Central
and School units
Interpretation & analysis
Determine and provide accrual information for JE posting
Signs off school level financial results according to policy and procedures
Perform financial reporting analysis at campus level (variance Actual vs Budget) ; Monthly budget will be developed across the University
CENTRALIZED DELIVERY
Transaction processing
Records all transactional entries (Accounts Payable, T&E, Fixed Assets, Accounts Receivable and collection, bank reconciliation, etc.)
Send query on outstanding items to the business for further investigation and resolution
Prepare units specific journal entries (e.g. accruals)
Decisions & Policy
Interpretation & Analysis
Accounting transactional activities

6. Proposed monthly close process (Cont’d) High level close cycle
DRAFT – For discussion purpose only
Proposed monthly close process (Cont’d) High level close cycle
D-0 & prior
D+1
D+2
D+3
D+4
D+5
D+6
D+7
D+8
D+9
D+10
D+11
Target
Unit close activities
Consolidation,
Units review & Sign off
Reporting
Pub.2
Oracle and Banner data uploaded into HFM on daily basis (To Be Confirmed)
FA capitalization and depreciation cut-off
Cost
AP cut-off
AP accruals
Payroll & Fringe accrual
Payroll 1 reallocation
Student tuition revenue cut-off and accrual process
Patient services revenue cut-off and accrual process
RBHS consolidated data review
Final Rutgers report consolidated data review
Report published on RU website
Auxiliary revenue cut-off and accrual process
Legacy Rutgers consolidated data review
RU report variance analysis
(Actual vs Budget, Act. M vs Act. M-1)
Revenue
All other revenue cut-off and accrual process
Units reporting final review, variance analysis at Campus level (Actual vs Budget) & sign-off
Financial aid
cut-off and accrual process
Final material adjustment postings in HFM
Fed. & State Student Aid program
cut-off and accrual process
Loan information
Cut-off
Grants and contracts revenue
Cut-off and accrual process
Bank transfer/investment posting Bank reconciliations
General accounting
Indirect cost allocation
Due to/from accounts reconciliations 6
(1) Banner Payroll reallocation
(2) RU report will be published a week before Finance Board meeting
Legend:
Accrual and provision JE posted into Oracle / Banner GL at Unit level
Timing of activity to be confirmed with Central Accounting

7. DRAFT – For discussion purpose only
Proposed monthly close process (Cont’d) Stakeholder’s roles and responsibilities
Work in progress
Close
date1
Current State
Controller’s Office
Campuses
Key activities
Central accounting
Central and School units
D-0 to
D+5
Determine and provide accrual information (Accrual posting roles between Central Accounting and Units are To Be Determined)
D+6 to
D+8
Review final unit financial report and certification sheet for sign- off, determine necessary top side adjustments (based on materiality thresholds matrix - see page 8),
Review top side adjustments, approve and post top side entries
Review and submit final Campus/Central unit financial statement, variance analysis at campus/central unit level, and Units certification sheet signed off
Validate Campus/Central unit level financial statements
D+9
D+11
Review Legacy and RBHS consolidated financial statements
Determine Rutgers consolidated final top side adjustments, approve and post top side entries
Validate and publish Rutgers consolidated financial data
General Accounting
Unit Business offices
Unit Business offices
Consolidation & Reporting
4 Vice Chancellors
& 5 Central Units Reps.
Consolidation & Reporting
Consolidation & Reporting
Consolidation & Reporting
Consolidation & Reporting
(1) Close dates are Business days; “D-0” corresponds to the last business day of the closed period

8. DRAFT – For discussion purpose only
Proposed monthly close process (Cont’d) Materiality threshold framework
Month-end close materiality threshold matrix
D+1
D+2
D+3
D+4
D+5
D+6
D+7
D+8
D+9
D+10
Unit Close Activities
Consolidation, Units Review & Sign Off
Reporting
Key processes / milestones
Units and
Central Accounting (General Accounting group)**
Central Accounting
(General accounting, Consolidation & Reporting groups)
Due to/From account
No transactions < $5K*
JEs into Oracle/Banner systems (GL)
Units/Department revenues
No materiality limits
Materiality > $50K*
JEs in HFM
Units/Department costs
JEs into Oracle/Banner syst. (GL)
Consolidated Profit & Loss
Requirements To Be Determined
Materiality > $250K*
Materiality > $500K*
Consolidated Balance Sheet
Work in progress
Note:
(*) $ amount thresholds to be determined
(**) Roles and responsibilities of manual accrual/provision Journal Entries (JE) posting between Central Accounting and Units To Be Determined

9. Next Steps
Include your feedback to inform a finalized design and determine change requirements
Continue to socialize the Future state monthly close process with other Campus Business Offices to get further inputs in the design
Continue to have open communication with Vice Chancellors and Business offices on project progress and outputs