Technology Progress Yreport by sol13192


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									                             The University of North Carolina
                             POST   OFFICE    BOX 2688, CHAPEL       HILL,   NC 27515-2688

                             Telephone: (919) 962-1000 FAX: (919) 843-9695

Constituent   Universities
Appalachian State

East Carolina

Elizabeth City                                The Chancellors
State University

Fayetteville State
                                              Erskine Bowles ~
                                              Next Steps in Ensuring Financial Integrity and Accountability
North Carolina
Agricultural and
Technical State
University                   In July you received a summary report outlining the results ofUNC's Operational
                             Assessment conducted by Ernst and Young (E&Y). The E&Y report identified high-
North Carolina               risk operations and proposed recommendations for improvement in the areas of (1)
Central University
                             general accounting, budgeting and financial reporting; (2) financial aid and student
North Carolina               accounts receivable; (3) contracts and grants; (4) payroll; and (5) the purchase-to-pay
School of the Arts           function. Common problems cited in the report related to:
North Carolina
State University                        •    Processes: Lack of formal policies and procedures, reconciliations, and
at Raleigh                                   checklists needed to ensure accountability;
                                        •    People: Lack of adequate staffing and training of personnel, as well as
University of
North Carolina                               challenges in hiring qualified staff; and
at Asheville                            •    Technology: Poor utilization of the Banner system and, in general, the
                                             lack of understanding of the complexities of an integrated system.
University of
North Carolina
at Chapel Hill               My purpose in writing to you today is to bring you up-to-date on where we are in
                             regards to the assessment, to set expectations for moving forward, and to ask for your
University of                leadership. The Board of Governors has made it clear to me that implementing the
North Carolina
at Charlotte
                             E& Y recommendations is among the highest University priorities. In the future, the
                             Board's Audit Committee will receive regular reports on the progress that we are
University of                making to ensure the University's financial integrity.
North Carolina
at Greensboro
                             Over the past eight weeks, UNC GA has been working collaboratively with Ernst &
University of                Young to prioritize their previous recommendations and outline an implementation
North Carolina               plan. In the next two weeks we will pressure test the plan and then begin to develop and
at Pembroke                  implement short-term process improvements (common policies and procedures among
University of                the campuses, standardization of business processes, common reconciliations and
North Carolina               checklists, and reporting of dashboard indicators). The recommended short-term
at Wilmington                improvements will be in effect by June 30, 2009. At the same time, we will be laying
Western Carolina
                             the ground work for long-term change including the creation of a shared services center
University                   to centralize the computing functions of certain campuses as well as the centralization
                             of some back office financial operations.
State University
                             Under the direction of Jeff Davies, General Administration is preparing to work with
Constituent High School      the E&Y team to implement both the short-term and long-term improvements. When
North Carolina               the short-term improvements are in effect, all campuses will have a number of
School of Science            standardized business processes in place and all campuses will be providing GA with
and Mathematics

An Equat Opportunity/
Amrmalive Action Employer
key performance indicators on a regular basis to enable us to monitor financial operations and
ensure the Board that we have system-wide financial accountability. UNC-Chapel Hill and NC
State, campuses that are utilizing the PeopleSoft ERP system, will not be subject to the same level
of consolidation and centralization as the other campuses. It is anticipated that those Banner
institutions that are currently operating effectively and without audit findings will continue to
operate independent ofthe shared services center, at least during the initial phase of this project.
The remaining Banner campuses, including but not limited to the nine campuses that now pay
employees through central payroll, will standardize more business processes and operate within a
shared services center model.

Effective October 1, General Administration has employed a Project Management Officer to be
fully dedicated to this effort. The Project Management Officer is Gwen A. Canady, former Chief
Deputy State Controller. Gwen is creating an overall project management structure to include a
detailed project plan, budget, and organizational structure, along with a communications and
change strategy. Les Davidson, Associate Vice President for Enterprise Resource Planning, and
his team of functional and technical experts will be assigned to this project along with some staff
members in our Finance Division and Information Resources Division. An Executive Committee
will be established to include Jeff Davies as Chair, Rob Nelson, John Leydon, a chancellor, a
provost, and campus representatives in the finance, student affairs, human resources, and
information technology functional areas. Additional advisory groups will be established to
provide guidance and expertise in the human resources, financial aid, and general accounting

I am asking that each of you appoint a project manager to work in close coordination with the
UNC Project Management Office and to coordinate the operational improvements on your
campus. You will further be responsible for defining a campus organizational structure to ensure
that all requirements are met. Your project manager should be your campus champion of this
effort though I am also asking that you personally embrace this project as a key part of your
agenda and make this project a priority for your leadership team. Collectively, we have a
responsibility to the Board of Governors, faculty, students, and to the general public to operate in
the most efficient and effective manner possible, providing full fiscal accountability in all of our
efforts. I am confident that the improvements we make will advance university financial
operations and, once implemented, will provide you with the ability to focus on other priority
agenda items.

cc:     Board of Governors
        Chairs, Boards of Trustees
        Chief Academic Officers
        Chief Financial Officers
        General Administration Council

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