In$ite: a finance analysis model for education

• US 5,991,741 A
• Filed: 02/21/1997
• Issued: 11/23/1999
• Est. Priority Date: 02/22/1996
• Status: Expired due to Term

• Current Assignee: Fox River Learning, Inc. (EDmin.com, Inc.)
• Original Assignee: Fox River Holdings, LLC
• Inventors: Speakman, Sheree Teresa, May, Jay Frank
• Primary Examiner(s): Kemper, Melanie A.
• Application Number:
  US08/803,991
• Time in Patent Office: 1,005 Days
• Field of Search: 705/1, 705/7, 705/8, 705/30, 705/35, 705/36, 707/7, 707/100, 707/104, 707/205, 707/563, 707/504, 707/517, 434/107
• US Class Current: 705/30
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

An advanced software package for cost accounting and analysis, management reporting, performance assessment and decision support tool is described. The IN$ITE™ software package collects, organizes, manages and consolidates financial data and permits the standardized evaluation and comparison of different educational institutions. The software package implements the Finance Analysis Model For Education as a relational database for the efficient and cost-effective management of educational institutions.

Financial data is organized into three dimensions: Functions, Programs and Locations. IN$ITE has five Functions which are subdivided into 15 Subfunctions and further divided into 32 Detail Functions, each of which provides greater clarity of fund use. The Program Dimension of IN$ITE permits the identification and determination of the costs of various special programs within the school system. The Organizational (or Locational) Dimension of IN$ITE comprises three levels: Expenses that are to be charged to the central location, to various school-sites, or to be retained as non-allocated expenses. IN$ITE also permits reporting of decision-support data by school-site or cost-center.

Claims

1. A computer readable media storing a software program wherein said software program is based on a relational database, and wherein said software program implements a method for cost accounting and analysis, management reporting, performance assessment and decision support in an educational institution that permits the standardized evaluation and comparison of expenditure data of said educational institution with one or more other institutions to enable cost effective management of said educational institution, wherein said software comprises a method and said method comprising the steps of:

importing line items of financial data from a General Ledger of said educational institution;

classifying selected ones of said imported line items of financial data as benefit expenditure line items;

mapping said imported line items of financial data to a specific and standardized set of Functions, Programs and/or Locations;

allocating selected ones of said imported line items and said classified benefit expenditure line items to one or more Locations based upon user input, said allocation of selected imported line items being performed by an allocations process and said allocation of said classified benefit expenditure line items being performed by a benefits allocation process;

analyzing said allocations and creating summary expenditure data for each Location and wherein said summary expenditure data is internally stored and is externally manipulable in an intermediate format and wherein said intermediate format has multiple basic dimensions which further include a Functional Dimension, a Program Dimension and a Locational Dimension and wherein said Functional Dimension shows expenditures and budgets comprising all of an educational entity'"'"'s funds and categorizes said expenditures and budgets into at least five classes, including an Instruction class, an Instructional Support class, an Operations class and an Other Commitments and Leadership class; and

generating one or more reports based upon the results of said analysis.

2. The method of claim 1 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said step of importing financial data from said General Ledger system is performed manually.

3. The method of claim 1 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said step of importing financial data from said General Ledger system is performed automatically by said software program.

4. The method of claim 1 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said software program acts as an overlay on said General Ledger system or similar financial application program.

5. The method of claim 4 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein regulatory reporting and financial accounting data is further converted into cost accounting and management reporting information.

13. The methods of claim 1 or 6 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocations process further comprises the following steps:

selecting an allocation method and category;

identifying one or more of said imported line items as needing to be allocated;

mapping each of said identified line items to said selected allocation method and category;

computing an allocation weight for each of said mapped line items; and

obtaining user approval to the creation or deletion of line items based upon said allocations process.

14. The methods of claim 1 or 6 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said benefits allocations process further comprises the following steps:

identifying one or more of said imported line items as salary line items;

mapping one or more of said identified salary line items to select ones of a defined set of salary types;

identifying one or more of said imported line items as actual benefit expenditure line items;

selecting a distribution percentage for each said salary type;

iteratively estimating the allocation of benefits till the said selection of a distribution percentage results in the allocation all or most of the sum of said identified actual benefit expenditure line items;

mapping any shortfall between actual benefit expenditure line items and estimated benefit expenditure line items to a Function; and

providing obtaining user approval to the creation or deletion of line items based upon said benefits allocations process.

15. The method of claim 14 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said step of iteratively estimating the allocation of benefits is automatically terminated when said shortfall between actual benefit expenditure line items and estimated benefit expenditure line items is found to be less than a selected threshold value.

6. A computer readable media storing a software program wherein said software program is based on a relational database, and wherein said software program implements a method for cost accounting and analysis, management reporting, performance assessment and decision support in an educational institution that permits the standardized evaluation and comparison of expenditure data of said educational institution with other institutions to enable cost effective management of said educational institution, said method comprising the steps of:

installing and customizing said software program to be operable on a selected hardware platform;

determining the format of data to be imported for analysis;

importing metric data and line items of financial data from a General Ledger system of said educational institution;

identifying selected ones of said imported line items of financial data as representing a benefit cost;

mapping said imported line items of financial data to a specific and standardized set of Functions, Programs and/or Locations;

defining one or more allocation methods, each having an associated allocation metric;

selecting one or more of said imported line items of financial data for allocation to one or more of said Locations;

assigning a selected allocation method to each one of said selected line items;

executing an allocations process on said selected line items using said allocation metric that is associated with said selected allocation method;

allocating said identified line items representing benefit cost in said imported line items of financial data to a specific Location using a benefits allocation process;

validating the results of the allocation processes and generating summaries therefrom; and

generating one or more reports in a standardized format based upon said generated summaries.

7. The method of claim 6 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is the number of Full-Time Equivalent (FTEs) Reading Recovery Teachers.

8. The method of claim 6 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is the number of Special Education Students.

9. The method of claim 6 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is the number of meals served at each of a select group of Locations.

10. The method of claim 6 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is the relative value of a centrally-provided service measured using a proprietary or internal charge-back rate such as a Work-Order subsystem.

11. The method of claim 6 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is the student enrollment at each school-site.

12. The method of claim 6 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is an externally-generated measure of service utilization such as kilowatt-hours of electricity.

16. A computer readable media storing a software program wherein said software program is based on a relational database, wherein when executed by a computer said software provides instructions for a system for cost accounting and analysis, management reporting, performance assessment and decision support in an educational institution that permits the standardized evaluation and comparison of expenditure data of said educational institution with one or more other institutions to enable cost effective management of said educational institution, said system comprising:

means for importing line items of financial data from a General Ledger of said educational institution;

means for classifying selected ones of said imported line items of financial data as benefit expenditure line items;

means for mapping said imported line items of financial data to a specific and standardized set of Functions, Programs and/or Locations;

means for allocating selected ones of said imported line items and said classified benefit expenditure line items to one or more Locations based upon user input, said allocation of selected imported line items being performed by means for allocation and said allocation of said classified benefit expenditure line items being performed by means for benefits allocation;

means for analyzing said allocations and creating summary expenditure data for each Location wherein said summary expenditure data is internally stored and is externally manipulable in an intermediate format which has multiple basic dimensions and wherein said basic dimensions further include a Functional Dimension, a Program Dimension and a Locational Dimension and wherein said Functional Dimension shows expenditures and budgets comprising all of an educational entity'"'"'s finds and categorizes said expenditures and budgets into at least five classes, including an Instruction class, an Instructional Support class, an Operations class and an Other Commitments and Leadership class and wherein said basic dimensions further include a Functional Dimension, a Program Dimension and a Locational Dimension and wherein said Functional Dimension shows expenditures and budgets comprising all of an educational entity'"'"'s funds and categorizes said expenditures and budgets into at least five classes, including an Instruction class, an Instructional Support class, an Operations class and an Other Commitments and Leadership class; and

means for generating one or more reports based upon the results of said analysis, wherein said summary data is internally stored and is externally manipulable in an intermediate format.

17. The system of claim 16 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said means for importing financial data from said General Ledger system is manual entry of data.

18. The system of claim 16 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said means for importing financial data from said General Ledger system is an automated process within said software program.

19. The system of claim 16 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said software program acts as an overlay on said General Ledger system or similar financial application program.

20. The system of claim 19 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein regulatory reporting and financial accounting data is further converted into cost accounting and management reporting information.

28. The systems of claim 16 or 21 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said means for allocation further comprises the following:

means for selecting an allocation method and category;

means for identifying one or more of said imported line items as needing to be allocated;

means for mapping each of said identified line items to said selected allocation method and category;

means for computing an allocation weight for each of said mapped line items; and

means for obtaining user approval to the creation or deletion of line items by said means for allocation.

29. The systems of claim 16 or 21 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said means for benefits allocations further comprises:

means for identifying one or more of said imported line items as salary line items;

means for mapping one or more of said identified salary line items to select ones of a defined set of salary types;

means for identifying one or more of said imported line items as actual benefit expenditure line items;

means for selecting a distribution percentage for each said salary type;

means for iteratively estimating the allocation of benefits till the said selection of a distribution percentage results in the allocation all or most of the sum of said identified actual benefit expenditure line items;

means for mapping any shortfall between actual benefit expenditure line items and estimated benefit expenditure line items to a Function; and

means for providing obtaining user approval to the creation or deletion of line items based upon said benefits allocations process.

30. The system of claim 29 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said means for iteratively estimating the allocation of benefits additionally comprises means for automatically terminating said benefits allocation when said shortfall between actual benefit expenditure line items and estimated benefit expenditure line items is found to be less than a selected threshold value.

21. A computer implemented software system based on a relational database, wherein said system is in the form of a software program stored on a computer readable media, said software program being for cost accounting and analysis, management reporting, performance assessment and decision support in an educational institution that permits the standardized evaluation and comparison of expenditure data of said educational institution with other institutions to enable cost effective management of said educational institution, said system comprising:

means for installing and customizing said software program to be operable on a selected hardware platform;

means for determining the format of data to be imported for analysis;

means for importing metric data and line items of financial data from a General Ledger system of said educational institution;

means for identifying selected ones of said imported line items of financial data as representing a benefit cost;

means for mapping said imported line items of financial data to a specific and standardized set of Functions, Programs and/or Locations;

means for defining one or more allocation methods, each having an associated allocation metric;

means for selecting one or more of said imported line items of financial data for allocation to one or more of said Locations;

means for assigning a selected allocation method to each one of said selected line items;

means for allocating said selected line items using said allocation metric that is associated with said selected allocation method;

means for allocating said identified line items representing benefit cost in said imported line items of financial data to a specific Location using means for benefits allocation;

means for validating the results of the allocation processes and generating summaries therefrom; and

means for generating one or more reports in a standardized format based upon said generated summaries.

22. The system of claim 21 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is the number of Full-Time Equivalent (FTEs) Reading Recovery Teachers.

23. The system of claim 21 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is the number of Special Education Students.

24. The system of claim 21 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is the number of meals served at each of a select group of Locations.

25. The system of claim 21 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is the relative value of a centrally-provided service measured using a proprietary or internal charge-back rate such as a Work-Order subsystem.

26. The system of claim 21 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is the student enrollment at each school-site.

27. The system of claim 21 for cost accounting and analysis, management reporting, performance assessment and decision support, wherein said allocation metric is an externally-generated measure of service utilization such as kilowatt-hours of electricity.