Session ID:

Managing Utility Funding 10191

without the Overhead of
Grants Prepared by:
Bruce Maghan, Sr Practice Director
Wendy Lamar, Sr Managing Consultant
Solution Overview and Case Studies Project Partners
@BruceMaghan | @Project_Experts
@WendyLamar3 | @Oracle_Projects

April 25, 2018 4:15 PM

Breakers K
Remember to complete your evaluation for this session within the app!
Introduction to…
Project Partners has over 20 years’ experience as the global leader in optimizing business
processes and IT investments within project-driven organizations.
We are experts in driving business value as a single point solution provider for all requirements
across Oracle® Cloud (ERP, EPM, HCM, PPM), Oracle E-Business Suite, and Oracle
Primavera.
Solution Architects with expertise in delivering end-to-end, integrated Oracle solutions within all
project-driven industries, including Engineering & Construction, Oil & Gas, Professional Services,
Public Sector, Healthcare, Financial Services, Aerospace & Defense, High Tech Manufacturing.
We have developed 10+ software products to support, augment, and integrate Oracle
Applications.
Oracle Authorized Reseller of Primavera | Cloud Financials | Cloud PPM
Oracle Accelerate Solutions
Oracle Validated Integration
Session Schedule
Opportunity to Project Flow with CRM and PPM April 22, 2018 12:30 PM Breakers K
Neeraj Garg, VP of ERP Solutions

Project Planning and Control with Oracle Cloud PPM April 23, 2018 1:15 PM South Seas C
Neeraj Garg, VP of ERP Solutions

Easily Submit and Monitor Scheduled Processes and Reports April 25, 2018 4:15PM South Seas G
for Oracle Cloud Applications
Neeraj Garg, VP of ERP Solutions

Managing Utility Funding without the Overhead of Grants April 25, 2018 4:15 PM Breakers K
Wendy Lamar, Sr Managing Consultant
Agenda

Standard Solution

How Does Project Partners Improve the Process?

Case Studies

Questions
Standard Solution
Standard Solution
Many organizations across the Utility, Water Management, Non-Profit, and
Higher Education industries use external funds to perform their major capital
initiatives
 Sources of external funds
• Public Bonds
• Grants
• Private Donations
Organizations that use external funds to support their capital initiatives are
often required to manage their projects against the fund balance to ensure
there is no overrun of costs
Transactions on these projects must have their accounting entries driven by
funding information
Standard Solution
Typically Oracle Grants is implemented to address some or all of the previously
mentioned requirements
Grants introduces additional overhead in that it requires dividing all transactions
based upon each funding “Award” when the function is not actually required thus
leading to significantly increased transaction volume
Grants introduces encumbrance accounting leading to additional overhead,
particularly in the Procure to Pay process, but does not benefit the utility when not
required for financial reporting
Process Improvement
How Does Project Partners Improve the
Process?
Common requirements were reviewed across our Utility and Water
Management customer base
 Many customers fund their projects with municipal bond proceeds
• Bond funding requires statutory reporting based upon which projects are funded by a
particular fund
• Clients also require the capability to track bond fund consumption in order to be proactive
when funds have been consumed
 Customers also fund projects using internal funds, or a combination of bond
proceeds and internal funds
• There is no system based tracking methodology for determining if a project was fully or
partially funded with bond proceeds
How Does Project Partners Improve the
Process?
 Projects will commence execution prior to bond funds being available
• Internally funded until external funds are available
• Internal funds are reimbursed upon external funds availability
• There is no mechanism in place to track the funding and reimbursement of internal funds
• Accounting is to be based upon the funding arrangement at the time the transaction
occurred
 Projects may be conducted to the benefit of one or more Improvement Districts
• Improvement Districts may be funded by a single Fund or may Funds
• Costs must be allocated to the Improvement District based upon the Improvement
District’s Ownership for a particular project
Project Partners has improved the process by developing solutions that
effectively addresses the lack of flexibility, and transaction volume issues
faced by customers that would typically be required to implement Oracle
Grants
Case Studies
Case Studies

Case Study 1
 Oracle EBS 12.1.3
 Project Costing
 No Improvement Districts

Case Study 2
 Oracle EBS 12.2.5
 Project Costing
 Project Planning and Control
 Improvement Districts in Play
Case Study 1
Case Study 1
Key Concepts
 Custom Forms are created for
• Creating Funding Arrangements
• Assigning Bond Proceeds Funding
– A project can be funded by multiple Bond Funds over the life of the project but not
simultaneously
• Inquiring on Bond Proceed Activity
 Standard AutoAccounting/Sub-Ledger Accounting is used to account transactions
based upon active Bond Fund Arrangement
• Procure to Pay transactions go through a standard subledger accounting process to
apply the correct GL Work Order and Fund segments in the accounting event
 Custom Concurrent Programs to deliver the following
• Verify if all Bond Proceeds have been consumed. If they have, the current Bond Proceed
Funding Line is end dated and the project is to be considered Internally Funded until
additional Bond Proceeds are available.
• Provide reporting to Bond Fund Management of which Bond Funds have been completely
consumed and require action
Case Study 1
• Bond Proceeds Setup
Case Study 1
• Bond Proceeds Funding
Case Study 1
• Bond Proceeds Inquiry
Case Study 1 – Process Flow
Case Study 2
Case Study 2 – Key Concepts
Project Fund functionality created
 Allows for tracking each individual fund
 A project fund can spread across Improvement Districts (OR) be limited to assignment to one
Improvement District
 Possible to assign multiple funds to one General Ledger fund
• Allows for further reporting classification at the project level
– i.e. GL tracks a bond, but there is a need to track each bond disbursement separately
Project level assignment of each improvement district that owns the project
 Includes percentage of ownership
 Any number of IDs allowed but total 100% ownership
 Functionality to allow manual entry of the Improvement District split ownership (OR) a list of standard ID
split ownership combinations (repetitive use)
Assignment of Source of Funds to Each ID assigned to the Project
 Includes percentage of funding by ID
 Any number of funds per ID allowed but total 100% funding
Custom Concurrent Programs to do the following:
 Validate there are no projects with incomplete Improvement District and Fund Pattern assignments
 Create Cash Reclass entries to support properly accounting of costs to Improvement Districts and Funds
based upon Ownership
 Provide reconciliation capability of Cash Reclass activity
Case Study 2 – Configure Project Fund Source
Funding Source Configuration (Global)
 Assign Fund number
 Assign Project Fund number
 Determine if the Project Fund can be applied to a single ID or to any ID
 Assign effective dates
 Indicate the total amount available in the fund
 Project Funds available to assign during ID and Fund assignment at the project
level
Case Study 2 – Assign ID and Fund to Project
Project level information defaults to page accessed from the Project Home
Enter split effective start date. End date is optional.
Determine the type of split assignment
 Custom = Manually entered ID splits
 Standard = Choose from a list of commonly used ID splits that automatically apply
to the project
Populate the ID Splits and Save
ID Splits must total 100% for the project
Funds are entered at ID level
 Assign funding to each ID assigned to the project
 Per each ID, 100% funding must be assigned
Case Study 2 – Assign ID and Fund to Project
Case Study 2 – Assign Fund to ID
(Project Level)
Case Study 2 – Process Costs and
Reclassification of Cost
Project costs are collected normally, and accounted as typical project cos
 GL Segment for ID will charge a suspense value
 GL Segment for Fund will charge a suspense value

Periodically, the costs incurred must be reclassed to move the ID and Funds to
the correct GL segment value
 The original cost journal entry is not impacted by account
 Cash account is DR/CR, and the correct ID and Fund segments are charged in the
reclassification accounting event

Custom subledger accounting process generates accounting events to create

additional journal entries to reclassify the Cash related to incurred costs,
moving to the correct improvement district and fund source

Additional accounting event; does not reverse the cost incurred

Case Study 2 – Process Flow
 Presenter(s)
wlamar@project.com
bmaghan@project.com

Session ID:
10191

Remember to complete your evaluation for this session within the app!
 Q&A
Visit Booth - #1143 B
Contact Us
Rebecca Portela
Vice President, Marketing | Business Development
rportela@projectp.com www.ProjectP.com

Session ID:
10191

Remember to complete your evaluation for this session within the app!