Departmental Indirect Projects process and system change
A change has been made to the Departmental Indirect Projects process to allow manual matching of income to spend on xx9981-99600. Since R12 went live the use of Departmental Projects has increased dramatically and continues to do so. This has led to a number of departments raising the issue of not being able to match departmental funding to the spend on ‘Indirect Projects’, ie internally funded projects. In direct response to the issues raised by users, a change has been made to Departmental Indirect projects to allow the posting of matched spend to natural account 99600.
Oracle Financials reports are available to support the financial management of projects. The key reports are:
UO Project Status & Activity - This report provides award summary information with the option of showing month-by-month expenditure by budgetary categories. The report will enable the department to identify the amount of expenditure to date on the grant and the remaining funds available for non-staff items, having taken purchasing commitments into account. At present there is no mechanism for loading salary commitments into Oracle Projects, so departments should be reminded that the staff costs may well be fully committed, even though they are not shown as such on the report. The report also enables departments to analyse project costs by task and expenditure category and to highlight overspend/underspend on a project or where the project may run the risk of being over/under spent.
UO Actual Expenditure - This report provides detailed transaction information on actual project expenditure within an accounting period. This is a useful report for finance officers who want to run an enquiry into expenditure against a particular award.
UO Projects Management Overview - This report gives a top level summary of a specified group of projects such as Department or Type. It includes budget, actuals, start and end date etc.
Review and reconciliation
As per the Purchase to Pay process it is important that all open purchase orders are regularly reviewed. Essentially, towards the end of the project all outstanding transactions must be addressed and any remaining Purchase Orders appropriately managed to ensure they are closed/matched before the project can be closed.
Where relevant, expenditure should be reconciled to invoiced amounts and cash received.
For projects that are running over the year end, it is important to ensure that the appropriate accruals are posted.