Oracle Reporting Hierarchies

• While there are other hierarchies stored in the Oracle database used for processing and posting, these guidelines are focused on those hierarchies created for reporting purposes
• The Oracle Standard hierarchies support external statutory reporting requirements
• The Oracle Managerial Reporting hierarchies support internal financial management reporting
  • The Managerial Reporting Account hierarchy includes a one single balance sheet account, Account 300000, Net Position/Fund Balance and temporarily added Level 16000B Capital Assets accounts until the Fixed Assets module is fully implemented

Q: What is a hierarchy and what are some examples?

A:

• A hierarchy creates relationships between database items for reporting and processing purposes
• Hierarchies used for reporting purposes allow end users to drill up to a more general level of detail or drill down to a finer level of detail
• These guidelines focus on the Fund and Account hierarchies
• Examples of Oracle hierarchies commonly used in reporting include:
  • Entity hierarchy
  • Financial Unit Hierarchy
  • Fund Hierarchy
  • Account Hierarchy

• Standard Account hierarchy
  • Oracle name value: UCSD_ACCOUNT_T-UCSD_ACCOUNT_T_V1
• Standard Fund hierarchy
  • Oracle name value: UCSD_FUND_T-UCSD_FUND_T_V1

• Additional hierarchies rearrange the members of the standard hierarchies to meet different management information needs, allowing for flexible reporting
• UC San Diego-Campus has two additional hierarchies for reporting purposes, one for the Account hierarchy and one for the Fund hierarchy
• These are referred to as:
  • Managerial Reporting Account hierarchy
    • Oracle name value: UCSD_ACT_BUDG_ALTH_T-UCSD_ACT_BUDG_ALTH_T_V1
  • Managerial Reporting Fund hierarchy
    • Oracle name value: UCSD_FND_BUDG_ALTH_T-UCSD_FND_BUDG_ALTH_T_V1

• Financial reporting typically serves two diverse stakeholder groups:
  • External statutory reporting requirements
  • Internal financial management reporting and performance monitoring
• The Standard hierarchies support external statutory reporting requirements
• The Managerial Reporting hierarchies support internal financial management reporting:
  • Revenues/Resources and Expenses are grouped into categories that support financial planning, analysis and decision making, similar to sub accounts in IFIS
  • Funds are grouped into Core/Non-Core categories which is an essential component for campus resource allocations, such as the Core-Funded portion of the campus budget

• If the report follows external statutory financial reporting requirement: Standard Account hierarchy
• If the report measures financial performance of a campus unit or if Recharges and Allocations are included as resources: Managerial Reporting Account hierarchy
• If the report includes asset and liability accounts: Standard Account hierarchy
• If the report segregates funds by Unrestricted, Agency, Net Investment in Capital, Restricted Expendable, Restricted Unexpendable: Standard Fund hierarchy
• If the report segregates funds into Core/Non-Core categories: Managerial Reporting Fund hierarchy

Key Differences Between the Standard Account Hierarchy vs Managerial Reporting Account Hierarchy

• Managerial Reporting hierarchy places some 7x and 8x Accounts such as Recharges and Allocations into the Resources category
  • Standard hierarchy places these Accounts in the Expenses category
• Managerial Reporting hierarchy splits Expenses into three main categories: Compensation, Non-Compensation and Non-Operating Transfers/Expenses
  • Standard hierarchy splits Expenses across 11 categories specified in chart below
• Managerial Reporting Expense categories are based on those Expenses managed by a campus unit
  • Standard hierarchy Expense categories are based on financial reporting requirements
• An example is Pension Benefits which must be reported on external financial statements but is not a managed Expense by a campus unit and is not called out as a separate category in the Managerial Reporting hierarchy

Key Differences Between the Standard Fund Hierarchy vs Managerial Reporting Fund Hierarchy

• Managerial Reporting hierarchy groups Funds into categories required for managerial analysis, such as deficit reporting
  • The Managerial Reporting Fund Hierarchy is also used for allocating campus core resources
  • Standard hierarchy groups Funds into categories required for external financial statement reporting
• Managerial Reporting hierarchy groups Funds into Core/Non-Core categories; Standard hierarchy does not