August 2, 2012 LINE OF BUSINESS 2013 2 Line of Business 2013 PURPOSE • To classify financial activity across our three core missions (Lines of Business) for mission-based financial reporting • Implemented in clinical departments in FY2008 • “LOB 2013” will further refine the clinical department implementations, and be officially deployed in basic science departments for the first time 3 Line of Business 2013 METHODOLOGY (“How?”) • All financial activity at the University is organized by “Project” (the “P” in PTAEO) • Each Project has a “Functional Classification” (aka “Project Classification”) which indicates the primary purpose or objective of the activity • There are 12 functional classifications • The 12 classifications roll up into Lines of Business • The LOBs are Research, Clinical, and Education Line of Business 2013 METHODOLOGY (“How?”) • All financial activity at the University is organized by “Project” (the “P” in PTAEO) Line of Business 2013 METHODOLOGY (“How?”) • Each Project has a “Functional Classification” (aka “Project Classification”) which indicates the primary purpose or objective of the activity 6 Line of Business 2013 • There are 12 functional classifications METHODOLOGY (“How?”) Line of Business 2013 LINES OF BUSINESS PROJECT CLASSIFICATIONS 01 EDUCATION 02 ACADEMIC SUPPORT 03 STUDENT LIFE & SERVICES 04 ORGANIZED RESEARCH 05 RESEARCH TRAINING 06 RESEARCH SUPPORT 07 PROFESSIONAL PRACTICUM 08 PUBLIC SERVICES 09 OTHER SCHOLARLY ACTIVITIES 10 ADMINISTRATION 11 FACILITIES 12 INSTITUTIONAL EXTERNAL AFFAIRS RESEARCH EDUCATION CLINICAL ADMIN • The 12 classifications roll up into Lines of Business • The LOBs are Research, Clinical, and Education (plus Administration) METHODOLOGY (“How?”) 8 Line of Business 2013 METHODOLOGY (“How?”) 9 Line of Business 2013 KEY PRINCIPLE It’s not the source of funds (e.g., the Award) that defines Line of Business. It’s the PROJECT. EXAMPLE • 0051AM is the Clinical Account • The Projects associated with 0051AM may or may not be clinical • Project is the activity taking place; Award is how you are paying for it 10 Line of Business 2013 EXAMPLE: “Research” that is funded from a “Clinical” account CURRENT STATE Project: 3330001 One Project is used to record all activity Task: Task1 Award: 00051AM Org Unit: 799001 FUTURE STATE Project: 3330001 Old Project is used to record clinical activity Task: Task1 Award: 00051AM Org Unit: 799001 Project: 3330002 New Project is set up to record research activity Task: Task1 Award: 00051AM Org Unit: 799001 ONE ACCOUNT TWO ACCOUNTS [...]... accounts Line of Business 2013 RESOURCES & TIME LINE • • FinOps can provide direct administrative support (such as for LD schedule changes or submitting forms to set up new Projects) • 17 COA structure guidance from FinOps, COA Manager, and COA handbook website Changes need to be in place for the Sept 2012 closing Line of Business 2013 APPENDIX SAMPLE REPORTS 18 Line of Business 2013 Line of Business. .. 2013 Line of Business Labor Distribution – Time Survey Report Location This is a TOOL, not an exception report 19 Line of Business 2013 Line of Business Labor Distribution – Time Survey Report Sample 20 Line of Business 2013 BUG606a – Project/Task Maintenance Report 21 Line of Business 2013 BUG209a – Account Holder Listing (Modified Version) BUG 209a - Account Holder Listing (Modified to include Project... Listing (modified) • Review the activities in your department and classify them into the lines of business (see Quick Guide) 11 Line of Business 2013 Line of Business Classification Quick Guide 12 Line of Business 2013 BASIC STEPS TO CLASSIFY ACTIVITY BY LOB, CON’T • Review the Line of Business Labor Distribution Report to determine if the Projects on labor schedules are consistent with each individual’s... documents (such as PTAO lists for labs) Line of Business 2013 WHEN TO USE “ADMINISTRATION” INSTEAD OF AN LOB “Administration” may be used in place of an LOB where activities support multiple missions and cannot easily or reasonably be allocated across the LOBs EXAMPLES • • • 14 Business office staff & general expenses HR administration Leaves of absence Line of Business 2013 HOW “ADMINISTRATION” IS ALLOCATED... Labs-YSM 0053AM Curr Use-YSM 0061AM YSM-Medical Services Med Svs YNHH SS-YSM Med Svs YNHH SS-YSM 0051AM 0051AM 0058AM 0058AM Med Svs YNHH SS-YSM 0058AM Line of Business 2013 COA Handbook: www.yale.edu/COA COA Email: COA@yale.edu 23 Line of Business 2013 Questions? 24 ... the three Lines of Business based upon faculty FTEs in your department EXAMPLE: Net activity in “Administration” Projects: $1,200,000 Research FTES: Clinical FTEs: Education FTEs: TOTAL FTEs: 15 30 20 10 60 50% 33% 17% 100% $ 600,000 $ 396,000 $ 204,000 $1,200,000 This allocation will not be recorded on the GL, so it will not interfere with dept-level financial statements Line of Business 2013 SOME.. .Line of Business 2013 BASIC STEPS TO CLASSIFY ACTIVITY BY LOB • Review the LOB classification on your current Projects to determine if the activity you typically record in that account is consistent with its classification o BUG 606a – Project/Task Maintenance Report o BUG 209a – Account Holder Listing (modified) • Review the activities in your department and classify them into the lines of business. .. Professional Practicum C07 DDD92 Donner Johnson, Sam , 0026944 YNHH Shared Services Professional Practicum C07 DDD73 Damler 0058AM Med Svs YNHH SS-YSM 0058AM Johnson, Sam , 0026944 YNHH Shared Services Professional Practicum C07 FFF24 Ferrari 0058AM Med Svs YNHH SS-YSM 0058AM Johnson, Johnson, Johnson, Johnson, , , , , 0026944 YNHH 0026945 YNHH 0026945 YNHH 0026945 YNHH Professional Professional Professional... 0026944 YNHH Shared Services 0026944 YNHH Shared Services 0026944 YNHH Shared Services Project Class Nm Student Life & Services Professional Practicum Administration Administration Administration Professional Practicum Administration Professional Practicum Professional Practicum Professional Practicum Projec t Class Cd Task Num C03 00 C07 00 C10 00 C10 00 C10 00 C07 00 C10 00 C07 00 C07 00 C07 1 Task Nm... Administration Administration Administration Administration Administration Administration Administration Administration General task General task General task General task Education Professional Practicum Professional Practicum Professional Practicum C01 C07 C07 C07 00 00 00 00 General General General General 0061AM 0001AM 0001AM 0051AM Curr Use-YSM 0061AM General Appropriation - 0001AM General Appropriation . them into the lines of business (see Quick Guide) 12 Line of Business 2013 Line of Business Classification Quick Guide 13 Line of Business 2013 BASIC. objective of the activity 6 Line of Business 2013 • There are 12 functional classifications METHODOLOGY (“How?”) Line of Business 2013 LINES OF BUSINESS