Chargebacks: Reconciling Primavera Enterprise Actuals to the General LedgerPresenters: Matthew Friedman, Director of Integration Services - EcoSys ManagementJeffrey Finkiel, Senior Financial Analyst - Guardian Life Insurance

· Primavera Service Provider and Technology Partner

Have supported over 130 enterprise project management Implementations

EcoSys Financial Manager software: bridges project management with financial management

Headquarters in New York; Branch offices in London, Atlanta, San Francisco

EcoSys Management

· Headquarters in New York City · $41 Billion including subsidiaries· 5000 employees, 700 in IT, incl. Consultants· Provider of life, health, disability to individuals

and businesses · Has rigorously reduced IT spending through

strong financial control· Fifth largest mutual life insurance company in

US· 85 agencies around the country

Guardian Life Insurance

Agenda - M

Providing Project Accountability via Chargebacks

Primavera Timesheets & Expenses

• Justification of Costs: Charging back to Department Profit Centers

• How to determine in your GL how to calculate the actual cost of doing business for a given month, by project

• Reconciliation: From Primavera Timesheets & Expenses to PeopleSoft General Ledger

PeopleSoft General Ledger

RECONCILIATION

Guardian Chargeback Rates & Costs

Rates are area specific. E.g. separate rates for Group, Life, Equity, etc.

Outside Svcs. - Emp, Expenses

Based upon the direct expense that needs to be recovered through project work

Method

Matt: See Excel SS (Sheet 2)

Current Guardian Financial Processes

Chargeback costs segregated

Business units split project funding by percentage

Results fed monthly through general ledger

Consolidated bill provided to business units by each IT division

Budgeting process incorporates commitments and targets on spending types (i.e. New development vs. Production support)

Tying Project Mgt to Financial Results - Overview - M

3. Resources Enter/Submit Timesheets> Log Tiemsheet Hours to Projects> Submit Timesheets or> Revise and Resubmit Timesheets

4. Timesheet Approval by COB Mondays> RMs Review Timesheet> RMs Reject/Approve Timesheets or> RMs Approve Resubmitted Timesheets

$$

4a. Actuals Applied to Projects by COB Tuesdays > PMs Apply Timesheet Actuals> PMs Update Project Plans, if needed

3a. PMs Log Expense Actuals> Start Activities> Log Actual Costs

6. Project Plan Updates> PMs Update/Clarify TeamPlay Information per Jeff Fikiel's Email Requests

$

8. General Ledger> CB App. Dev. Prog. Chargebacks Processed to ABC MainFrame Database> Reconciled Consultant Invoiced Costs Processed to CDS (Cash Disbursement System)

Pay to $

4b. VIC Feed> Consultant Timesheets Fed to Vendor Invoice Control Interface> Consultant Timesheets Reconciled to Received Invoices

8a. CB Reports> Monthly CB Project Actuals> Consolidate CB Report> YTD CB Aanalysis Report> Spend Type Analysis

7. Financial Manager – Final Run> Jeff Finkiel Generates Final FM GL Feed File for FM&C (PeopleSoft) 5. Financial Manager – Test Run

> Jeff Finkiel Begins 2 Iterations of FM GL Feed File Test Runs.> Jeff Finkiel contacts PMs Required to Resolve Questionable Entries.

Evolution of a process - M

Better Detail – Can catch many smaller issues.

Police the Projects – beyond the scope of what the CPMO does.

Ease of use for Non-PMs i.e. Finance People

Reports are scalable and easier to manipulate.

Improved Efficiencies from start to finish.

-No need to create individual SQL queries and export to Excel. Than combine these spreadsheets to come up with the required data that needs to be validated.

Past Method - MainFrame

Past Method - Remind

Past Method – 1st EcoSys Method - M

Resources entertimesheets

Project Managersenter expenses

Resourcetimesheetsapproved

Timesheets appliedto project plan byproject manager

First Business Day of Month: Financial Reporting runs

1) Script to Check Data2) Run script to execute stored procedure that generates G/L Feed Records and creates G/L feed file

G/L Feed file imported into ABC G/L system by FM&Cwhich contains chargeouts and chargebacks

Current EcoSys FM Method

Financial Manager (FM) is the financial repository for Primavera Data

Import Labor Costs and Expenses from Primavera into FM

Costs are Summarized by Budget Category in FM

A Debits/Credits Report Is Generated from FM in a format ready for Input to PeopleSoft

Graph of 4 Systems – Accuracy & Labor Estimates

Business Days to Complete

14 days

5 days

10 days

2 days

0 2 4 6 8 10 12 14 16

Mainframe System

Remind by Changepoint

EcoSys PM

EcoSys FM

65% Accuracy

85% Accuracy

95% Accuracy

97-99% Accuracy

Questions?

Timesheet to General Ledger - Overview

Resources Records Project Work by COB Fridays> Log Tiemsheet Hours to Projects

> Submit Timesheets or> Revise and Resubmit Timesheets

Timesheet Approval by COB Mondays> RMs Review Timesheet

> RMs Reject/Approve Timesheets or> RMs Approve Resubmitted Timesheets

$$

Actuals Applied to Projects by COB Tuesdays

> PMs Apply Timesheet Actuals> PMs Update Project Plans, if needed

PMs Log Expense Actuals> Start Activities

> Log Actual Costs

IT Finance Administrator Processes a Test GL Feed> GL Feed Test Runs.

> Contact PMs Required to Resolve Questionable Entries.

Project Plan Updates> PMs Update/Clarify Primavera

Information as per administrators Requests

IT Finance Admintrator Process GL Feed> Administrator Processes GL Feed File

from EcoSys FM

$

General Ledger> EcoSys FM generated file is entered into PeoplSoft GL

CB Reports from FM> Monthly CB Project Actuals

> CB and Non CB Project Costs> YTD CB Aanalysis Report

> Spend Type Analysis> Reconciled Consultant Invoiced Costs

7. Financial Manager – Final Run> Jeff Finkiel Generates Final FM GL Feed File for FM&C (PeopleSoft)

5. Financial Manager – Test Run> Jeff Finkiel Begins 2 Iterations of FM GL Feed File Test Runs.> Jeff Finkiel contacts PMs Required to Resolve Questionable Entries.

Profit Center Budget Allocations to IT Projects

CB System Timeline – Evolution Slide – SS – SS #1

Mainframe - ~1960’s – Dec. 1999

Changepoint Remind – Jan. 2000 – Dec. 2001

Guardian Purchases Primavera TeamPlay

EcoSys PM (SQL based process) - Jan. 2001 – Dec. 2006

EcoSys Financial Manager – Jan 2007 - Future

Remind System

Here's a screen shot of what the charges were for a project from Remind.

Remind System

Mainframe Method

People entered timesheets into a crude spreadsheet on the MF.

All calculations done through the MF

MF sent file directly to ABC financial system (ABC was the insurance industry standard ledger system)

You were able to enter time to any project in your area.

Only check was a once daily generated report

Adjustments were completely manual

Needed to rely on the MF programmer to make adjustments

Standard reports