Financial Management and Project Reporting Update

March 28, 2017

We recognize and appreciate the significant effort being made by faculty and staff across the University to partner with the Cornerstone project team to identify issues, assist with testing solutions, and manage day-to-day operations in this new environment.

Recent analyses and reports conducted by the Controller’s Office, and Grant and Contract Accounting indicate that while the project sub-ledger account balances are accurate (excluding the transactions described below), there are some account balance variances in the general ledger for sponsored and non-sponsored projects. We have a dedicated team, including partners across the University, Deloitte, Oracle, Huron and other consultants assessing the situation and working to identify and resolve the root causes.

The remediation plan is underway to expedite the availability of accurate and stable financial accounting reports. The corrective measures that can be taken immediately and the long-term solutions are as follows:

  • Reconcile converted and post-go-live data
  • Validate that all system transactions in the projects sub-ledger are posting correctly to the general ledger
  • Identify and correct system accounting rules that impact transactions between the projects sub-ledger and the general ledger
  • Validate and create reports linked to source data in the projects sub-ledger, and provide guidance on how to use these reports to view account balances
  • Update general ledger and grant entries for the changes in the New Jersey fringe benefit rate
  • Implement processes to prevent disruptions for calculating and posting revenues on grants and contracts
  • Continue work with Oracle on key service requests for grants functions and with Deloitte on system configurations
  • Continue work on Fiscal Year 2017 audit readiness, related reports, and business processes

Viewing Project Account Balances
The most accurate reporting of project accounting is in the projects sub-ledger. To view your project balance, you will need to run Oracle Transactional Business Intelligence (OTBI) queries. We acknowledge that there are some errors in the sub-ledger, which we are working to resolve. Account balance variances in these queries, may be the result of:

Reasons for Variance Corrective Measures
Invoices that have not been posted to the general ledger due to missing, incorrect, or incomplete information in the purchase order Most outstanding payments will post to the general ledger by March FY17 close (April 18)
Incorrect default chart of accounts’ segment values for expense reports

Action to be taken by unit
While we work through a long-term solution, if you need to charge a different general ledger string or Project string, then you can change the default before submitting the expense report.

 
On Projects strings, the system will use the Project Owning Organization (UDO) from the project. If this is incorrect, then contact Grant and Contract Accounting at gca@ored.rutgers.edu for sponsored projects; or coa@finance.rutgers.edu for non-sponsored projects to request a project set-up correction for future transactions.

 

For expense reports that have been submitted, if you need to correct a general ledger string or the Project string that has been charged, you will need to do a regular journal entry (general ledger-to-general ledger) or a Project cost transaction (Project-to-Project, general ledger-to-Project or Project to general ledger).

Data that converted incorrectly Grant and Contract Accounting, and the Controller’s Office have ongoing efforts to complete analysis of conversion data over the next few weeks.
Variances in fringe benefit rates An estimated journal entry has been made for the first eight months of FY17. We will make retroactive adjustments to update fringe benefit charges to the FY17 rate for the entire fiscal year. We expect this to be complete by the March FY17 close.
IPO credits be applied to a default account

Action to be taken by unit
Run the OTBI query, “IPO Invoices and Payments.” If you need to make a correction and have been assigned the General Ledger-to-Projects cost transactions role, refer to the attached job aid for detailed instructions on how to journalize the general ledger transaction to Projects.

Subset of payroll actions affected by grant award future end dates Review of outstanding payroll actions affected by PeopleSoft end date issues is underway.
Ongoing processing of Change in Source of Funds (CISF) and Salary and Wage Redistribution and Justification Cost Transfers (SWRJ) forms Please refer to the salary cost transfers adjustments update for guidance on the forms and instructions.
Indirect costs for grants (Facilities and Administration reimbursement) credits that are not being applied F&A application is working generally on sponsored programs. Examples of individual issues and past expenses that have not burdened should be sent to gca@ored.rutgers.edu.

We ask that you continue to review your accounts and either confirm the accuracy of the data or notify Grant and Contract Accounting or the Financial Management Help Desk if you have questions. Due to the high volume of calls and emails, it may take up to 48 hours for staff to respond.

Grant and Contract Accounting

 

Controller’s Office

Your patience and support as we stabilize the systems is appreciated.

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