Consistent information across UC Merced various financial management systems is the goal of the Oracle Data Integrity Project (ODIP).
Staff in several Division of Finance and Administration units are working to identify and reconcile out-of-balance project actuals and align project budgets. The project’s objective is financial data integrity, defined as the consistency (i.e. data matches between systems) and accuracy (i.e. data is coded correctly) of financial data across systems with little to no tolerance for data variances. As a result, the transactions that drive UC Merced’s activities in education, research and community will be correct as long as data across the systems match exactly (i.e., Data Point A in System No. 1 equals Data Point A in System No. 2).
It’s important to note that correct financial information and related reporting is a joint responsibility between DFA and campus units. It is DFA’s responsibility to ensure data consistency as defined above while it is the responsibility of campus units and Oracle users to ensure data accuracy. Data accuracy relates to the proper coding, via chart string segment values, of financial transactions. Even if data has integrity, it may not be accurate if the transaction has been miscoded. The combination of data consistency and data accuracy ensures correct financial information and reporting.
June 27: Oracle Data Integrity Project Update
ODIP is being carried out in stages, starting with areas that represent the highest impact on UC Merced’s mission of teaching, research and community service. Data in these areas will be reconciled with the general ledger – the university’s main financial structure that uses the Chart of Accounts to record transactions and record balances.
- Stage 1: Project Portfolio Management (PPM)
- Stage 2: Accounts Payable
- Stage 3: Accounts Receivable
- Stage 4: Remaining sub-ledgers (e.g. Fixed Assets, Cash Management, etc.)
- Stage 5: Reconcile UCMPlan budgets to general ledger and PPM budgets
- Nov. 2021: Stage 1 begins
- Dec. 2021 - March 2022: Begin Stages 2-4 concurrently
- April 2022: Complete Stages 2-4
- May 2022: Begin Stage 5
- June 2022: Anticipated completion of Stages 1 and 5
Example of Reconciliation Process 1. Compare General Ledger totals to PPM totals by project
2. Identify variances between General Ledger and PPM at transaction level
3. Share findings and drivers of recurring variances
4. Determine corrective action to address variances in closed accounting periods
5. Propose corrections to address root causes and reduce frequency of identified variance drivers in current and future accounting periods.
6. Execute agreed-upon corrective actions to support prospective data integrity
7. Monitor data integrity metrics as part of the month-end and year-end closing procedures and respond with corrective action as needed
Example of Reconciliation Process
- Compare general ledger totals to PPM sub-ledger totals by project
- Identify variances between general ledger and PPM at transaction level
- Share findings and drivers of recurring variances
- Determine corrective action to address variances in closed accounting periods
- Propose corrections to address root causes and reduce frequency of identified variance drivers in current and future accounting periods.
- Execute agreed-on corrective actions to support prospective data integrity
- Monitor data integrity metrics as part of the month-end and year-end closing procedures and respond with corrective action as needed