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Data Network Recharge: Business Process

Dan Pucillo's picture

Data Network Recharge: Business Process

 

 

 

Business Process

Overview

UCSF IT implemented an electronic system which automates the Campus data network recharge in October 2009.  This Data Recharge System calculates and applies the appropriate recharge amount based on the monthly payroll earn file in the Online Payroll Personnel System (OLPPS). 

Purpose

The Data Network Recharge is consistent with UCSF’s Strategic Plan to urge optimal deployment of information technology and the development of new funding mechanisms, and to ensure the on-going investment in infrastructure of equipment replacement and maintenance. The Data Network Recharge of eligible faculty, staff, students and affiliates for usage of the UCSF data network generates revenue to support on-going improvements and stabilization of the network by replacing all network equipment every five to seven years.

Process

Data for the System is fed from the OLPPS monthly pay earn file. The OLPPS monthly pay earn file produces the payroll computation for the month which includes the computed payroll amount, full chart of accounts (COA) accounting information (Business Unit, Fund, Dept, Project, Function, Flexfield) and derived percent of time. Other data elements include control point, department, record type, title code and DOS code which will indicate recharge eligibility status (yes or no).

The monthly payroll earn file is imported into the Data Recharge System. The System applies logic regarding recharge eligibility, and then calculates the recharge amount based on the fixed monthly FTE cost and derived FTE percentage (for those who are recharge eligible). The data network recharge fee is then applied to the corresponding COA, according to the percent of time that an employee is paid by a particular funding source.  

For example, campus employee May Smith is paid on three different funds, with the $44 data network fee allocated each month according to the percent of time she is on each source:

 

May Smith

 20% COA x $44/mo.

= $8.80/mo.

   

 40% COA x $44/mo.

= $17.60/mo.

   

 40% COA x $44/mo.

= $17.60/mo.

 

Total

 100%

= $44.00/mo.
     

The FTE-equivalency for hourly employees will be based on the data and calculations applied to hourly employees in PPS.

The Account for the Data Recharge is 55056.

Each month, finance managers have an opportunity to review the recharge designations and request adjustments as needed. There are circumstances which may require additional steps for the recharge to be appropriately processed:

  1. Change in COA to be charged
  2. Payroll expense transfer
  3. Cost transfers
  4. Change in Recharge Eligibility

COA Change

After reviewing the data recharge results in the System and determining that no changes are required (verification of data), the recharge proceeds based on current system data and logic. On the other hand, if the review of the data reveals a need to correct any chart field data, the System must be manually updated to reflect this new information. This may be the case for instances such as expiration of current funding, a certain fund disallowing the recharge, etc.

Example:

According to OLPPS, campus employee June Smith is paid from four different funds 

 

June Smith

20% COA 1

 
   

30% COA 2

 
   

40% COA 3

 
   

10% COA 4

 
       

COA 2 stipulates that certain expenses (such as data network expenses) are not allowed to be charged against this type of fund. Therefore, Project B must be overridden and an alternate Project needs to be entered to indicate the redirection of the recharge. Project changes may only be updated one-for-one and cannot be further split to additional Projects.

E.g., June Smith’s recharge redirect could look like this:

 

June Smith

20% COA 1

 
 

30% COA 2

30% COA 4

 
   

40% COA 3

 
   

10% COA 4

 
       

These are the Project codes that then would be recharged for the following amount:

 

June Smith

20% x COA 1 x $44  = $8.80

   
   

40% x COA 3 x $44  = $17.60

   
   

40% x COA 4 x $44  = $17.60

   
 

Total

100%                                  = $44.00    
           

Thus, what needs to be identified by the finance manager is:

  • The COA to be changed/overridden
  • The alternate COA to be charged

The IT Billing Services unit (email: data.recharge@ucsf.edu) administers the override function for the Data Recharge System. The override function’s only purpose is to redirect funds to an alternate COA. It allows an override of any chart fields originally imported from the payroll earn file and then designating an alternate COA to be charged (redirect). The system is set up so charges can only be redirected by COA combination thus disallowing the ability to redirect based on an individual employee level.

In case a redirect need is determined, the financial manager can submit a COA override request to the IT Billing Services unit (email: data.recharge@ucsf.edu) . This change request should list the COA to be overridden, the COA to redirect the charge(s) to, and the rationale for the requested change. ITS Billing Service receives the override request, reviews the COA information (employees affected, validity of COA), and upon verification updates the COA information in the Data Recharge System (overriding the previous COA with the new COA information). After the change is made the recharge is processed based on the new data.

Dates and Deadlines for Inquiry/Review/Request

The system will display the most up-to-date information, always reflecting the previous month’s payroll data as soon as it is available from the payroll system. Inquiries and overrides can be done at any time during the month. In order for the override change to take effect for the payroll period that is supposed to reflect the change, the request for the override should be communicated to IT Billing Services as soon as payroll data for the previous month is available but no later than two business days before Month End Close for that payroll period or the scheduled monthly data recharge production day, whichever comes first. 

Payroll Expense Transfer

Payroll Expense Transfers (PETs) will need to be initiated by department and processed (in PPS) as they usually are. Since the Data Recharge System is fed by the PPS data, PETs will be automatically accounted for within the Data Recharge System. No additional processes will be required. PETs will not be a transaction (nor functionality) that is initiated within the Data Recharge System. The System will generate a financial journal to credit old COA and debit the new COA.

Cost Transfer via Suspense Journals Process

In the case of charges that can’t be processed as originally reported, the following process will be implemented:

  1. IT Billing Service will, on a monthly basis, submit an electronic journal load of data network recharges, which will include any error journal entry lines that are due to invalid PeopleSoft COA combinations. At the time the journal is loaded all these invalid entries will automatically be posted to a data recharge Suspense Account (Source Code 5B2).
  2. IT Billing Service will download from PeopleSoft a detailed list of rejected journal lines with the corresponding type of chart field errors (e.g., invalid COA combination, etc.) - the day immediately following the journal load.
  3. IT Billing Service will contact those departments whose COA generate chart field errors to get the correct COA combination. In case departments do not respond to inquiries from IT Billing Service within a specific period of time, IT Billing Services will utilize previously collected “default” COA from departments initially, that IT Billling Service will then in turn charge any unresolved suspense journal entries to.

Edit of Factors for Recharge Eligibility

Recharge eligibility status for different UCSF staff groups may change over time. Groups (and what factor determines their recharge exception status: control point, department, fund, record type, title code or DOS code) will be communicated to IT Billing Service. When a new exception has been communicated,IT Billing Service will change the factor which controls whether a payroll earn file row will be selected for data recharge calculation. If a previously included group changes to now be excluded from the recharge, the factor will be changed to “0” (exclude). If a group changes from exclusion to inclusion in the recharge process, the factor will be changed from “0” to “1”. The exception list will need to be reported to the Campus Budget Office so that it can be accurately inserted in the Federal Indirect Cost (i.e. F&A rate) computation.

High-level Processes for Ongoing Data Recharge:

 

Step

Responsible Entity

   

1. Payroll file download

IT Business Applications

2. System runs data recharge logic (exemptions, % charged, appropriate accounts charged)

IT Business Applications

3. Departmental finance managers review accuracy of accounts being charged (and eligibility)

Department

4. Departmental finance managers communicate any changes needed

Department

5. Manipulation of data/use of override function as needed for redirect of funds

IT Business Applications

6. Data Recharge is calculated

IT Business Applications

7. System generates Journal and imports into People Soft

IT Business Applications

8. Correction of any Suspense Journals

IT Business Applications and Department

9. Journal is posted to General Ledger in People Soft

IT Business Applications

10. Ledger is reviewed and reconciled as necessary

Department

Roles and Access to Data Recharge System

Affected Units:

The following business units and departments will be affected by the recharge process:

  1. IT Business Applications
  2. IT Production Services
  3. Finance Managers in each UCSF department with recharge eligible employees

Functionality

Who

   

Inquiry/Review/Request

Dept.Finance Manager, IT Business Applications

Override/Redirect for Fund/DPA

IT Business Applications

Edit of Factors for recharge eligibility/exceptions

IT Business Applications

System Reporting

Finance Manager, IT Business Applications

Data Recharge Production Run

IT Business Applications, IT Production Services

Available Functionality and Roles

Inquiry/Review/Request

Departmental Finance Manager reviews accuracy/eligibility of COAs being charged

The following reports are available:

  • Department
  • Inquiry 
  • Monthly Recharge

Report functionality will include:

  • Sortability
  • Ability to export to Excel