The State of Idaho, in preparation for the implementation of its next-generation ERP system (Luma) has chosen to redesign its Chart of Accounts (COA).
The Chart of Accounts is a framework to classify and organize State and agency information. This will include financial transactions as well as non-financial data such as project details and performance metrics. The Chart of Accounts captures information at a meaningful level of detail to assist agencies in managing resources.
Redesigning Idaho's Chart of Accounts is one of the most strategically important actions the State will take in preparing the groundwork for Luma. The redesign of the Chart of Accounts will be based on leading practices in government and business. In addition, the new Chart of Accounts will be designed in advance of the implementation of Luma to help ensure that it, first and foremost, serves Idaho's strategic purposes. Beginning the redesign of the COA before the implementation of the Luma system will help to make sure the implementation is completed in a timely manner.
Idaho's Chart of Accounts redesign project seeks to:
The Luma Finance team took a multifaceted approach to the Chart of Accounts redesign. Tackling this task from several directions ensured that the Luma Finance team considered not just the State financial reporting impact of the new Chart of A design but also factored in budgetary needs, external/third-party reporting and oversight, end-user and operational considerations, cash management controls, Idaho state statutes, and change impacts. The methodology employed included high-level, policy-focused discussions as well as practical operational exercises.
The Luma Account Dimension Structure will hold a combination of STARS GL accounts, subobjects, and a selection of subsidiary accounts. Luma Account numbers will be a 6-digit integer.
Luma Fund numbers will drop the leading zero and will be a 5-digit integer primarily made up of the STARS fund number (minus the leading zero) and the STARS fund detail number. (See second graphic below). The leading zero was dropped from the Luma fund numbers to avoid issues when analyzing data in spreadsheets.
Infor Financials will help improve business transparency and strengthen financial discipline with proven functionality covering core financial management, budgetary control, project and grant accounting, and cash management. As part of the Infor Financials foundation, we deliver a flexible, configurable chart of account structure to accommodate our customers’ needs. Infor provides the ability to define multiple hierarchical rollups for each COA element. We define which hierarchy is used for processing (i.e. budgetary control) and can define as many others as needed for internal, external, and regulatory needs.