Columbia University Medical Center

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Columbia University Medical Center

• Training Certification Program For Senior
  Financial Administrators - Session 9

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(No Transcript)
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Agenda

• Welcome and Introductions
• Acknowledgements
• Remarks Dr. Gerald Fischbach
• Stephen Case
• John Mattie
• Capstone Presentation Michael McGuire
• Question and Answer
• Presentation of Certificates
• Closing Remarks

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Steering Committee Members

• David M. Cohen
• Lisa Franciosa
• Gary Herrmann
• Galene Kessin
• Kiki Korikis
• Michael McGuire
• Michael OConnor, Ed.D.

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Training Faculty
Name Department Michael McGuire PwC Edie
Miller Budget Finance Myra Marte-Miraz Dept.
of Medicine Michael OConnor Deans
Office Kathy O'Donnell Clinical Affairs Sara
Patterson Dental Oral Surgery Dorothy
Pearlman Budget Finance Michael
Reich Purchasing Jamie Rubin Research
Admin. Richard Ruttenberg Restricted Funds Carl
Sparano Restricted Funds Susie
Stalcup Development Michael Van
Biema Purchasing Ofra Weinberger Science
Tech Ventures

• Name Department
• Michael Barone PwC
• Geoffrey Berg School of Nursing
• Jerry Boak Controllers Office
• Yvonne Boothe Development Systems
• Marlene D'Agostino Dept. of Anesthesiology
• Lisa David Department of OB / GYN
• Steve Elliott University Budget Finance
• Lisa Franciosa PwC
• Steve Gillis PwC
• Stephanie Goldberg Shared Practice
• Amy Goldman PwC
• Gary Herrmann CUMC Budget Finance
• Barbara Hurleigh Controllers Office
• Galene Kessin CUMC Human Resources

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Capstone

• Agenda
• Environment
• Current Trends
• Challenges / Opportunities
• Assessment Framework
• Meeting the Challenge

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Capstone

• Role of Financial Administrators
• Financial Administrators are trained and hired
  for the purpose of providing fiscal, policy, and
  internal control management of all funds in a
  department or division
• They are responsible for ensuring that processes
  and related controls have been established to
  achieve the mission and objectives of the
  organization.
• Internal Controls include procedures for ensuring
  reliable financial information, establishing
  accountability and safeguarding of assets,
  determining that transactions are proper for the
  account and in compliance with University
  policies, statutes, and regulations.
• Responsible for ensuring administrative
  effectiveness of the day to day operation of the
  department

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Industry Drivers Shaping Financial Management
Business

• Institutional Reorganization
• Multiple Data Types
• Disparate Systems and Processes
• Fragmented Controls

Mgmt.
New Regulations
Financial
Reporting

• GAO Independence Standards
• Revised OMB A-21 CAS
• FASB 116 117 and GASB 35
• Senate Finance Com initiative

Reporting
University Reporting
Consolidation

• New Technologies
• Web Based
• Standard Tools and Data Models
• Best of Breed Suite Solutions
• New ERP Functionality

Stakeholder Demands
Inefficiencies

• Transparency
• Reliable, accurate and timely
• Board of Trustees governance
• Sponsor reporting

• Spreadsheet reporting
• Multiple Misused COAs
• Data Manipulation vs. Analytics
• Multiple Signoffs

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Current Trends ImpactingFinance and Accounting
Operations

• Market and regulatory conditions have placed
  greater importance on finance and accounting
  operations
• Greater focus on timely and accurate information
  and internal controls and compliance
• Need to increase quality of skills and re-balance
  competencies and headcount between transaction
  processing, control and analysis
• Continued implementation of outsourcing and
  shared services for high volume transaction
  processing
• Deployment of new enterprise wide risk and
  treasury management tools

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Current Trends ImpactingFinance and Accounting
Operations

• Under delivery of the Enterprise Resource
  Planning systems (ERP) promise has resulted in
  increased finance reengineering and system
  tuning
• ERP systems implemented in prior years do not
  currently support changing business model
• Need for development of common data model and
  processes to link planning, budgeting and
  reporting
• Better processes and tools to analyze customer,
  channel and/or product profitability
• Increased investment and integration of
  performance management tools, self service and
  web deployed processing

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Improvement Opportunities

• The current environment and market conditions
  present unique improvement opportunities for
  Finance and Accounting Organizations.

• Working Capital Management
• Performance Measurement
• Cost Management

• Compliance Risk Management
• Decision Support
• Operational Investments

Performance Management
Planning, Budgeting Forecasting
Strategy
Treasury Finance
Back-Office Operations
Consolidation Reporting

• Strategic Planning
• Mission Initiatives
• Donor Relations
• Capital Structure
• Strategic Value Initiatives
• Working Capital Planning

• Budget and Planning
• Mission Performance Measures
• Capital Management
• Forecasting

• Cash Controls Management
• Investment Management
• Corporate Finance
• Financial Risk
• Insurance

• Transaction Processing
• Accounting Reconciliation
• Outsourcing
• Shared Services
• Business Integration

• Financial Close and Consolidations
• Inter-School Eliminations
• Financial Analysis
• Financial Reporting
• Regulatory Reporting

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Improvement Opportunities
Systems Tools
Structure Skills
Risks Controls

• Performance Management
• Budgeting and Forecasting
• Finance Operations
• Consolidation and Reporting

• Organization Structure
• Competencies and Skills
• Training and Development

• Control Environment
• Control Activities
• Operations Monitoring
• Internal External Testing

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Operational Finance Assessment Framework

• Your assessment framework links opportunities
  within the Finance Value Chain with mission and
  operational strategies

Core Applications
Customer Expectations
Organizational Structure
Business Requirements
Flows
Staffing Levels
Interfaces
Data Model
Operational Strategy And Service Delivery
Policies Controls
Competencies
Infrastructure
Ownership
Development
Best Practices
Supporting Systems Tools
Performance Cost Measurement
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What is the Financial Management Cycle ?
External Reporting
Strategy Evaluation
Simulation
Value Calculation
Who needs financial data? Department
Chairs/Directors Presidents/ Deans / VPs Board
of Trustees

Strategic Loop
Adjust Operations
Target Setting KPIs
Scenario Modeling
Operations Loop
Budgeting Forecasting
Department Administrators Faculty
Academic Administration

• How will it all fit together?
• Policy / Procedure
• Data
• Technology
• Measures
• Processes
• Organization

Consolidation and Reporting
Reporting Loop
Data Mart/ Dashboards
Departmental Reporting
Business Systems
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University Financial Management Challenges

• Manually intensive effort
• Redundancy in data and reporting streams
• Inconsistent Data Model and Standards
• Numerous Data locations
• Spreadsheet Proliferation
• Poor access to information
• Overall process is cumbersome

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How Are Institutions Meeting the Challenge?

• A growing number of universities are embarked on
  a multi-year process to enhance the financial
  management activities in order to provide timely
  and efficient financial results with a high level
  of integrity and flexibility.

Common steps in the process are
Created easy, prompt sophisticated business
queries
Reduced data manipulation to provide increased
control and analytics
Self-service user-oriented tools for on-line,
real time analysis
Automated routine activities for data collection
and processing
Created flexible, timely, and accurate delivery
of information
Consistent information reporting standards
across business units
Eliminated redundant non value added activities
Powerful visualization capabilities
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This Leads to Overall Financial Framework and
Best Practices

• Financial / Tactical Plan
• Financial Plan of action for achieving goals
• Profit Loss/ Cash Flow Impact of investing in
  new recruits, facilities, equipment, I/T, etc.
• Departmental Business Plans (Programmatic
  Financial Goals)

• Strategic Planning
• Vision for the Future
• Strategic Goals and Objectives
• Programmatic initiatives

• Accountability
• Performance vs. Goals
• Strategic financial goals
• Dept - Division - Investigator
• Faculty Compensation Plan
• Resource Re-allocation
• Internal Funds
• Space

• Annual Budget
• Operationalize strategy through the annual budget
  process
• Setting priorities when aligning resources to
  achieve goals
• Mission-based / All Funds Budget

• Performance Management
• Measurable Goals
• Key Performance Indicators
• Balanced Scorecards
• Accuracy Systems/ Data Management

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University Reporting Processes

• A critical step to solving the financial
  management challenge is the establishment of
  effective university consolidated reporting

Consolidation/ Close
Financial Reporting
1. All transaction based activities complete
3. All data is final for reporting
2. General ledgers finalized
4. Reports completed distributed
Month-End Accounting
Financial Consolidation
Sub-Ledgers
Reporting
SOURCE DATA/SYSTEMS Tuition / Fees / Gifts
Income Accounts Receivable Federal /Non-Fed
Grants Contract Asset Management Payroll Purchas
ing / Accounts Payable Treasury/Cash Management
REPORTING Spreadsheets External Reports
(FSRs, 990s ) Ad hoc analysis Data Warehouse
Reporting Visualization Segment
Reporting Operational Reporting
JUDGEMENTS ESTIMATES Acct. Reconciliations Inter
departmental Accounting Accounting
Adjustments Accruals and Reserves Service Center
Research Cores Acct.
CONSOLIDATION ACTIVITIES Intercompany
Eliminations Investment Accounting Consolidation
Investment earnings Accruals Top-side
Adjustments Pledge Receivable Adjustments
Management Reporting
Data/System Integration
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Financial Management Building Blocks

• Throughout our training sessions we described the
  establishment of the integrated set of components
  (Building Blocks) that comprise the University
  financial management environment is essential to
  developing an efficient and effective financial
  reporting capability.

Real Time Reporting requires
Analytical Analysis Required views of financial
information (e.g., campus, school, center,
department, mission, etc.)

• Timeliness
• Controls
• Integrity
• Efficiency
• Flexibility

Performance Measures Key financial and
non-financial operational metrics, balanced
scorecard reporting
Chart of Accounts Master file' for financial
data that is used to derive financial reports
Reports Types of reports, report formats, content
and volumes
Organization / Skills Finance structure, staff
analytical skills, capability development,
department administrator integration etc.
Reporting Tools / Architecture Technology and
tools used to source, consolidate, deliver and
access information
Data Model Standards, data quality integrity,
integration
Procedures/Process Internal Controls, account
usage, capitalization policy, process flows,
procedural steps, training documents, etc
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Summary

• Best results occur when all of the building
  blocks are addressed
• Alignment with overall business strategies and
  objectives at the department level is essential
• Technology solution is critical but is usually
  only one component of the solution
• Need to address on going controls, standards,
  data quality, process and organizational
  responsibilities

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QA Session
Questions and Discussion
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Track 5 Graduates
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Track 6 Graduates
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Track 7 Graduates
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COURSE EVALUATION

• Please complete course evaluation form.

Session 9
Session 9 - Capstone