FY 2020 Year-End Closing Packet

Table of ContentsOVERVIEW.........................................................................................................................................................................2

PROCEDURES FOR YEAR-END REVIEW.....................................................................................................................2Review of Net Balances...................................................................................................................................................2

Summary......................................................................................................................................................................2Unrestricted Operating Funds – Yale Designated........................................................................................................4

Operating Funds – Gifts...............................................................................................................................................5Operating Funds – Grants.............................................................................................................................................8

Non-Operating Funds...................................................................................................................................................8Other Transaction Review................................................................................................................................................9

FP&A Year-End Review Steps & Actions Required for Planning Unit Coordinators..................................................11TRANSACTION INSTRUCTIONS (INCLUDING SYSTEM INFORMATION)..........................................................13

Journal Entries................................................................................................................................................................13Commitments.................................................................................................................................................................13

Payroll Processing..........................................................................................................................................................14Payroll Accounting Adjustments (PAA)........................................................................................................................14

Payroll / Compensation Payment Adjustments..............................................................................................................15Accounts Receivable and Year-end Customer Invoicing (YSM ONLY)......................................................................15

Accounts Payable and Expenses....................................................................................................................................15Supplier Invoices and Supplier Invoice Requests......................................................................................................16

Expenses (P-cards and Out-of-pocket) and Advances...............................................................................................17Accruals for Accounts Payable......................................................................................................................................18

Manual Accruals and Deferrals for Expenses or Revenues...........................................................................................19Prepaid Expenses........................................................................................................................................................19

Accrued Expenses......................................................................................................................................................19Deferred Income.........................................................................................................................................................20

Accrued Income..........................................................................................................................................................20Instructions for ALL Manual Entries for Expense Accruals, Prepaids, Income Accruals, and Income Deferrals....20

Accounting for Contributions During the Year-end Close.............................................................................................21Process and Deadlines................................................................................................................................................21

Donor Contributions Deposited to Incorrect Account................................................................................................21YEAR-END DATES FOR TRANSACTION PROCESSING AND REVIEW................................................................22

WORKDAY REPORTING................................................................................................................................................23

OVERVIEW

Standard monthly closing procedures should be followed for the May and June close. Refer to the Financial Review Checklist for review steps and reports to use. This package provides additional information that is applicable to the fiscal year-end close in addition to standard monthly closing procedures.

See section “Year-end Dates for Transaction Processing and Review” where you can find a link to the full schedule of all processing deadlines, net balances updates, and reporting events. From this schedule, you will be able to select dates you wish to add to your Outlook Calendar as a reminder through iCalendar functionality which has been added to the table of due dates. In addition, section “Workday Reporting” contains information about recommended parameters for the reports referenced in these instructions.

For help with financial inquiries in specialized areas, including Workday transactions and reporting issues contact the FINANCE SUPPORT CENTER (FSC), under the direction of Yale Shared Services (YSS), as follows:

1. Email: sharedservices@yale.edu2. Phone: 203-432-5394

FSC will triage and send your issue to the correct contact, whether this is a central email address or a supervisor by name, to ensure timely resolution.

For help with mobile access, technical issues, and outages including Workday mobile app, application, web browser, and desktop issues contact the ITS HELP DESK as follows:

1. Email: helpdesk@yale.edu2. Phone: 203-432-9000

Important information along with scheduled outages and open issues are posted online at: www.yale.edu/its/status.

PROCEDURES FOR YEAR-END REVIEW

Review of Net Balances

Summary

The institutional requirement is to close the fiscal year with a positive (or zero) net balance at the Cost Center level for each Funding Component value (Yale Designated, Gift or Grant). Given the current economic situation resulting from the COVID-19 crisis, if you have unforeseen debit balances that you cannot cover with existing funds, please request an out-of-budget approval by contacting your budget analyst (same procedure as all other years). See the section entitled “Operating Funds – Grants” for additional details and guidance for grants.

See Net Balance Requirements in the Accounting Manual for details. Department business offices are responsible for this activity mainly for the section of the fund hierarchy called “OP Funds Budgeted by Units”, but there are some additional review responsibilities discussed below. When evaluating the

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fiscal year-end balances and performing ongoing monitoring, please note that the COA segments appear in many reports as a “block”. However, these segments are not a connected string of values. Users must ensure that reviews are performed using the net total of all COA combinations (looking at multiple blocks) for a given Cost Center and Funding Component in order to fully evaluate the remaining balances. Be sure to adhere to any additional requirements established for your Department or School/Planning Unit. (Ex: Yale School of Medicine (YSM) units should follow guidance to be issued separately by the YSM Controller’s Office.)

All deficits at the Cost Center/Funding Component level (Gift/YD, excluding FD30 & all Grant funds) should be resolved prior to your unit’s closing deadline. Beginning in August, FP&A will follow up weekly with Planning Units regarding deficit balances equal to or greater than $100,000 at the Fund & Gift/Grant/YD level to be reported to Senior Leadership.

To Review Net BalancesFinancial reports are available directly in Workday.

(1) For Institutional Requirement at the Cost Center/Funding Component level run “Net Balance Review – Yale”

(2) For additional detail to support local requirements run “Account Balances Detail – Yale”. Please note that cost sharing will have both a Grant and Gift/Yale Designated value. If you export and pivot for analysis, these transactions may appear in both Grant and Gift/Yale Designated activity (i.e. the same balance may be seen in two places).

There are additional reports that will provide more detailed information. Please see the section “Workday Reporting” in this package.

Note that net balances are updated in Workday periodically during the year-end close (see calendar). Net balances are updated and booked based on transactions and balances in the Workday system at the time when net balance is run. Most management reports calculate the anticipated ending net balance based on SOA activity (income, expense, transfer, reclassification). Opening balances on reports are based on the booked balance in the net balance ledger account.

Net balance review responsibilities are generally driven by Fund.

There are five types of operating Funds and four types of non-operating Funds. Full details may be found in the online resources for Fund segment values. At a high level, the fund types are:

Operating Funds OP Funds Budgeted by Units

Unrestricted OperatingGrants & Contracts FundsEndowment Operating FundsSpendable Gift Funds

OP Funds Budgeted by Controller

Operating Funds for Plant and GAAP

Non-Operating Funds

Non-Op Funds Endowment Non-Operating FundsPlant Non-Operating FundsStudent Loan FundsOther Non-Operating Funds

You are expected to ensure that errors and unexpected activity are identified, researched, and corrected as necessary in your unit. Remember to use restricted funds first:

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Please perform final validation that there are no expenses charged to unrestricted operating funds that meet the restrictions of any endowment or current use gifts assigned to your unit. If you identify any expenses charged that meet the restrictions of a Gift (either endowment and/or spendable), you must reclassify the income from the restricted Gift to the unrestricted Fund and related Yale Designated segment to offset the expenses that meet the restriction. This should be done using the reclassification expenditure types listed in University Accounting Manual Procedure Transfer & Reclassification of Funds, Costs and Revenues. If the restricted purpose of a Gift assigned to your unit is unclear, it can be looked up in Workday or alternatively, contact Gift Accounting at giftawards@yale.edu.

When the University incurs expenses that fulfill the purpose of a restricted Gift, the restrictions are met, and the University has fulfilled its obligation. Using unrestricted Funds to cover expenses that meet the restrictions of a gift while holding onto restricted gift balances misclassifies the University’s balances in the general ledger and goes against University policy and Generally Accepted Accounting Principles (GAAP) to which Yale is audited. If you are unsure if restrictions have been satisfied or would like clarification of this message, please contact giftawards@yale.edu.

Questions regarding balances or transactions in Funds that are not part of the department business offices’ standard review of “OP Funds Budgeted by Units” should be directed as follows:

Endowments (FD08-FD11, FD20, FD27) – Gift team at giftawards@yale.edu Plant funds (FD12 and FD17) – Capital accounting team at capitalmgnt@yale.edu Other (FD06, FD07, FD14) – General Accounting at controller.genacct@yale.edu

Unrestricted Operating Funds – Yale Designated

All unrestricted operating funds must be reviewed for net balance deficits. These funds are: FD01 – Unrestricted Operating FD18 – Internally Designated - Unrestricted FD30 – GA Fund

Special, additional considerations are noted below.

GA Fund (FD30)Determine whether all revenues and expenses in GA are appropriate based on your knowledge of the approved GA budget for the year. An additional report that can assist with this review is “Budget to Actuals for Management Office Reporting by Gift/YD/Fund – Yale”. More detailed information is available in the “Workday Reporting” section at the end of this packet. (Note: YSM defines GA as YD000003/FD01).

Work with your Budget Analyst to clear any unapproved, unfavorable bottom line variances, and provide explanations.

Repair, Replacement, and Alteration Contingency projects are associated with these funds and are used primarily to account for smaller repairs and facility upgrades covered out of an annual facilities repair budget. The projects are set up in your unit to ensure the proper allocation of building costs. Repair and Replacement charges and Alterations Contingency charges for June will be posted in the GL by July 10 and are expected to be funded by July 15.

GA SweepThe “GA Sweep” is a process that is performed for balances in fund/funding component combinations

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defined as General Appropriations (GA). This process occurs individually for each Planning Unit and sweeps the balances from various detailed COA combinations to one COA combination per Planning Unit (defined by the Planning Unit Lead Admin). The GA Sweep uses a unique transfer ledger account (92025 / SC737). This allows the transaction to be visible to all users and reports.

Starting in FY20, suspense projects and programs have been removed from the GA Sweep process. This means that any GA balances sitting in suspense programs or projects (defined below) will NOT sweep at the year-end close. The purpose of this change is to enable easier tracking and monitoring of remaining balances.

COA segments: PG99999 Transaction Suspense - SYSTEM-GENERATED (52)PJ028458 – Labor Suspense (Temp Charging – Payroll Only – to be Cleared)PJ101291 – Non-Labor Suspense (Temp Charging – Non-Payroll Only – to be Cleared)PJ105201 – Cost Transfers denied by OSP – Payroll OnlyPJ105202 – Cost Transfers denied by OSP – Non-Payroll Only

During this transition, there may be manual journal entries required to update the balance for FY20 credits arising from the resolution of pre-conversion, FY18 or FY19 “swept” debit balances. The Controller’s Office will provide guidance and advice, likely on a case-by-case basis.

Unit or School ReservesReview your reserve balances, if applicable. All unrestricted reserves should appear in YD000371 (and FD18). If you need to modify the YD being used, please contact your Budget Analyst. You will be expected to report on your reserve balances to the FP&A Office as part of your closing report. (Note: YSM units should follow guidance on departmental reserves to be issued separately by the YSM Controller’s Office.)

Dowry Request: YSM ONLYDowry payment requests should be forwarded to David Crockett, david.crockett@yale.edu in the YSM Controller’s Office as soon as possible, but no later than June 19. Reimbursement requests will not be accepted after this date. Please estimate the outstanding transactions for FY2020 and include them with your requested amount. For example, if on June 19 all projected expenses except for one AP accrual have been processed, the requested amount should be the current balance plus the outstanding AP accrual. In your email to David Crockett, please include a brief explanation of the difference between your request and the current balance.

All dowry funding agreements should be in writing, detailing arrangements, time frame and amounts, and should be on file in the YSM Finance Office. Expenses will not be funded if documentation is not available.

Operating Funds – Gifts

All endowment operating deficits and spendable gift deficits must be cleared at the Gift level. The Gift operating Funds that must be monitored by units are:

FD03 Unrestricted UFFE Income (Direct Charge) FD04 Loosely Restricted Spendable Gifts (Direct Charge) FD05 Highly Restricted Spendable Gift Income (Direct Charge) FD19 Unrestricted UFFE Income (Auto and Unrestricted Recovered) FD21 Unrestricted Endowment Income (Unrestricted Recovered)

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FD22 Loosely Restricted Endowment Income (Auto Recovered) FD23 Highly Restricted Endowment Income (Direct Charge) FD24 Loosely Restricted Endowment Income (Direct Charge) FD25 Loosely Restricted Spendable Gifts (Auto Recovered) FD26 Unrestricted Spendable Gift Income - Recovered

Deficits should be cleared by moving excess expenses to another appropriate account; never by transferring or reclassifying money into a Gift. Remember, the institutional requirement for clearing deficit balances on these accounts is that each Gift must have a positive net balance by Cost Center (and Fund). If units have additional requirements, those should be adhered to. The unit should work with Gift Accounting to understand stewardship requirements. Good stewardship includes utilizing the income to the fullest extent possible within the constraints of the indenture. Endowment net balances should not be viewed as “rainy day” funds.

Review activity in Gift #GS052996 Designated Purpose Miscellaneous Spendable Gifts and #GS052995 General Purpose Miscellaneous Spendable GiftsReview all small (less than $25,000) restricted contributions that were received by your unit and credited to gift #GS052996 or #GS052995 during the past fiscal year by running Financial Transactions – Yale with this gift selected in the filters.

If the restricted purpose of the gift has been fulfilled and the gift has a residual balance, the remaining balance may be reclassified to an unrestricted fund (and corresponding funding component) or recovered for unrestricted purposes. This should be done using LA43002/RC031 on both sides of the entry and may be done by the unit. No forms are required to be completed or submitted since this gift will not be closed. However, the unit should have documentation supporting the fulfillment of donor restrictions. All entries should be completed prior to the FY2020 closing deadlines. If Gift Accounting review is needed, please submit inquiries to giftawards@yale.edu by May 29.

Any contribution within #GS052996 or #GS052995 that will not be spent in accordance with donor restrictions in its entirety before the end of the fiscal year should be in a COA combination that provides the unit with enough information to ensure proper spending stewardship in the next fiscal year. If necessary, the balance can be reclassified to a different project (or other COA segment within the unit) so that the balance may be tracked in the following fiscal year. Use LA43002/RC031 on both sides of the entry. All entries should be completed prior to the FY2020 closing deadlines. If Gift Accounting review is needed, please submit inquiries to giftawards@yale.edu by May 29.

Contributions must be spent in accordance with donor restrictions.  If donor documentation is needed to ensure this please submit inquiries to development.gifts@yale.edu by May 29. Donor documentation should only be viewed by staff whose functional responsibility requires its access. Such information is the property of the university and may not be distributed or used for unauthorized purposes or for personal gain.

As part of a unit’s review of gift funds, there may be a need to make requests to Gift Accounting for special transactions or changes.

A. Requests to return unspent endowment income to principal:Some restricted endowment gifts may have terms that REQUIRE the reinvestment of any endowment income that has gone unspent during the current fiscal year. It is the responsibility of all Lead Administrators and Operations Managers to identify any such gifts that are held by their units. If the units have incurred expenses that meet the restrictions of the gifts but

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have charged those expenses to other Funding Components (Yale Designated or Grant), the remaining unspent income should be reclassified to the Funding Component where the expenses have been charged. If the units have not incurred expenses that meet the restrictions of the gifts then they must complete FORM 2203FR.03, Request to Reinvest Unspent Endowment Income to Principal so that Gift Accounting can process the necessary entry to reinvest the income to principal. Form must be submitted by June 26.

In cases where the reinvestment of endowment income is NOT REQUIRED by the terms of the gift agreement, FORM 2203FR.03, Request to Reinvest Unspent Endowment Income to Principal, may be used to request reinvestment and MUST BE APPROVED BY THE PROVOST. Such requests must include an explanation as to why the income is being reinvested. [YSM requests must first be approved by Cynthia Walker, Deputy Dean of Finance & Administration. Please send requests to YSM Controller’s office at ysmcontroller@yale.edu to facilitate the YSM approval process.]

In accordance with University investment policy, units will be purchased using the current month end unit market value. Submit completed form and any supporting documents to Gift Accounting at giftawards@yale.edu no later than June 26 for processing during the current fiscal year.

B. Requests to Decapitalize a UFFE:Use FORM 2203FR.05, Decapitalize a UFFE.

This form must be completed by units requesting the partial or complete decapitalization (liquidation) of a UFFE (University Fund Functioning as an Endowment) gift. Such requests must include an explanation as to why the gift is being decapitalized – e.g. because the gift’s purpose has been fulfilled. Requests should be approved by the unit’s responsible Deputy Provost and requires authorization by the University’s Provost. In accordance with University investment policy, units will be redeemed using the current month end unit market value. [YSM requests must first be approved by Cynthia Walker, Deputy Dean of Finance & Administration. Please send requests to the YSM Controller’s office at ysmcontroller@yale.edu to facilitate the YSM approval process.]

Submit completed form and any supporting documents to Gift Accounting atgiftawards@yale.edu no later than June 26 for processing during the current fiscal year.

C. Requests to Close Restricted Spendable Gift Units should review all restricted spendable gifts to identify any gifts for which the restricted purpose has been fulfilled. An example is a restricted spendable gift established with a donor contribution, the purpose of which was to acquire a piece of equipment, and the equipment has now been acquired.

If the restricted purpose has been fulfilled but the gift has a residual balance, the remaining balance may be reclassified to an unrestricted gift or recovered for unrestricted purposes, after which the gift may be closed. Please use Form 2203 FR.06, Request to Close Restricted Spendable Gift and submit to Gift Accounting at giftawards@yale.edu no later than May 22. This form requires approval by the Provost’s office (for Centrally-Supported units) or by a school’s Lead Administrator (for Self- Supported units).

If the restricted purpose has been fulfilled and the gift has a zero balance it should

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be closed by completing the same form (Form 2203 FR.06, Request to Close Restricted Spendable Gift) and submitting it to Gift Accounting at giftawards@yale.edu no later than May 22.

D. Requests for Restricted Gift COA Segment ReclassificationChanges to the home cost center or default COA segments (includes unit reorganizations) for a restricted gift must be submitted to giftawards@yale.edu no later than May 29. Requests submitted by this deadline will be processed and non-operating balances will be transferred by the year end close.

E. Requests for Restricted Gift Worktag Revision Changes to other gift worktags (such as recovery code or purpose code) must be submitted to giftawards@yale.edu no later than May 29 for proper review. Requests submitted by this deadline will be reviewed and, if changes are approved, they will be processed by the year end close deadline.

Operating Funds – Grants

Sponsored agreement overdrafts should be cleared for fiscal year-end if no additional funding is anticipated and all payments have been realized to date. Overdrafts are cleared by moving the expenses off the Grant.

Note that additional information is available online regarding Grant closeouts and balances (see “Net Balance Requirements” in the Accounting Manual). However, this is not part of the standard year-end close process and is based on the individual award calendar.

Non-Operating Funds

In general, business offices do not interface with non-operating funds. However, for Planning Unit Lead Administrators there are year-end activities in certain funds that may require attention.

Student Loan Funds (FD15, FD16)Review net balances of student loans sources for identification of deficit balances that need to be cleared. Yale University student loan deficits must be cleared at the Yale Designated/Gift and Fund level. Work with the Controller’s Office or SFAS (Student Financial and Administrative Services) if you have any question on these funds.

Plant Non-Operating Funds (Capital) (FD13)In June, Capital Asset Accounting of the Controller’s Office will contact you if your unit is responsible for providing at least part of the funding for a capital project and if you have not already provided the COA.  If requested, the COA should be provided before Friday, July 10 at 5:00 PM so that it is available to be funded during the June month-end process. If you need to view your CRC account for transactions or balances, the COA will include: YD000385 and your unit Cost Center(s).

Please note that the Controller’s Office also monitors operating plant funds (FD12 and FD17) for deficits at the Gift level. This is not part of departmental responsibilities, as these do not fall within “OP Funds Budgeted by Units”. The Controller’s Office will contact you directly should there be anything you are required to do with regards to a deficit in this area.

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Other Transaction Review

Assets and LiabilitiesAs of May 31, and June 30, using “Assets and Liabilities – Yale”, review all assets and liabilities recorded in your cost center(s) based on the parameters listed in the “Workday Reporting” section at the end of this packet. Each asset or liability must be substantiated (fully documented, including any required account reconciliations) or it must be written off. Units are responsible for retaining supporting documentation for their assets and liabilities and must be able to provide such documentation when contacted by the Controller’s Office or YSM Controller’s Office. Contact these offices if help is needed to resolve asset or liability issues or if you expect to manage asset or liability accounts that do not fall in the parameters listed here. Please note that there are special instructions for reviewing and clearing balances in ledger account 11015 (Receivable - Expense Advance & Personal Expenses); see Advances and Spend Authorizations in the accounting manual.

For YSM units, any adjustments to accounts receivable ledger accounts must go through the YSM Controller’s office (contact at ysminvoicing@yale.edu). Please also see the section below entitled “Accounts Receivable and Year-end Customer Invoicing (YSM only)”.

Endowment and Investment IncomeThe final pro-rata endowment income distribution entry will be processed in May. This distribution will reflect new contributions and other endowment unit activity processed in the third quarter. If you have questions, contact giftawards@yale.edu.

Non-endowment investment income, such as building rent, interest on gifts, income from trusts, etc. should be reviewed for accuracy and proper application to your unit’s accounts.

Interest & AmortizationFinal I&A for FY2020 will be posted to the GL by June 12.

Unallowable CostsYale’s expectation is for units to ensure that controls and procedures are in place to consistently assign charges to proper accounting components (ledger account, spend/revenue category). This enables the University to appropriately capture and exclude unallowable costs from the federal Facilities & Administrative (F&A) rate proposal and subsequent reimbursement when the F&A rate is applied to sponsored awards. If any initial costs were identified as incorrectly charged, please make corrections to the appropriate accounting components in accordance with the closing schedule.

Transactions Posted to “Other” Ledger AccountsLedger Accounts (and Spend/Revenue Categories) with “other” in the title are set up in the system to account for transactions that could not be properly recorded in any of the existing transaction-specific ledger accounts. It is important that these accounts are not used for material (significant) amounts when there are more descriptive accounts.

Unit administrators are requested to pay attention to transactions that are posted to the below ledger accounts with the objective of classifying them into the proper specific ledger accounts and spend/revenue categories. For assistance in determining the proper ledger accounts and spend/revenue categories, please consult the segment values in the COA website or contact the Chart of Accounts team at coa@yale.edu. Transaction information can be found using “Financial Transactions – Yale”, limiting to these segment values for better performance and streamlined results.

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Ledger Account # Ledger Account Name42017 Medical Services Income-Other45011 Other Fee / Service Income45016 Income-Other45022 Other Income - non-operating81051 Other Expenses

Planning Unit AssessmentsInternal assessments are processed by the charging unit. If you are expecting a charge, please contact the administrator of that unit. These charges must be processed by July 10, the journal entry deadline for university service providers (USP, formerly referred to as ISP) charging and charges to departments other than your own, including any charging outside of your Planning Unit.

Reclassifications and Fund Transfers (including Closeouts and Deficit Funding) There are specific ledger accounts and spend/revenue categories to use for reclassifications and transfers based on the Funds involved and the underlying business circumstances. Please see the detailed accounting guidance in the University Accounting Manual for Transfer & Reclassification of Funds, Costs and Revenues.

Factors to consider when selecting the proper ledger accounts and categories: These accounts almost always require the same ledger account and category on both the debit

and credit side of the entry. When reclassifying gift balances (within the same gift or to a YD), the transaction assumes

release of restriction when moving off the Gift. Do not transfer or reclassify balances into a Gift. Gift reclassifications should not be used to move balances between different Gifts. Internal Program Support represents planned funding arrangements. Do not use this

account to reclassify or allocate restricted gift or endowment income. Some transactions may require two steps: (a) releasing the restrictions on a Gift by

reclassifying into a Yale Designated, and then (b) funding another unit’s programs via Internal Program Support.

Special attention is required when using or adding to unrestricted reserves.

As part of the year-end and periodic reviews, FP&A must be able to identify when a School/Planning Unit might need additional support to fund their operations by using or adding to unrestricted reserves, as defined by the Dean or Director of a School/Division. When performing the annual close-out, the Lead Administrators of all Schools/Planning Units must perform these accounting transfers with LA92003/RC268 – Use of Unrestricted Reserves. These accounts are used on both sides of the accounting entry. These accounts are ONLY for the use of reserves that are discretionary and under the control of the Dean or Director of a School/Planning Unit. The Planning Unit Lead Administrators should be the only individuals authorizing transactions with this transfer code.

Special Note on Building ChargesMost, but not all, units have building costs being charged to cost centers in their hierarchy. Unless you are a self-support unit, it can be tempting to overlook the activity in these areas as most of the activity is centrally allocated from the Office of Facilities. However, even if you are not expected to fully control the costs of the building accounts, you do need to review them and make necessary corrections. The University’s calculation of the Finance and Administration (F&A) rate rests heavily on the costs of the buildings being correct, and thus, from an institutional point of view, it is extremely important for building costs to be accurately recorded.

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You must have a general understanding of the Location costs booked to your Cost Center(s) and you need to research and understand significant variances in costs (vs budgets that were based on prior year activity). In most years, a periodic review of the building activity in comparison to prior years may be the first line of defense in discovering a defective utility meter or other problems. Most operating costs on building Locations are for physical plant, custodial, grounds, utilities, and fire marshal charges. The

Office of Facilities is responsible for processing these charges in accordance with the USP journal deadlines.

Location is used to capture financial transactions for University plant/buildings only. However, there are two known exceptions in Workday, which can be screened out of your detailed review.

Payroll transactions – do not contain Location as financial worktag but brings HR demographic data including an employee’s assigned Location.

System generates other “secondary” entries off payroll transactions. These will also contain the Location worktag – fringe benefit expense (LA 91001), grant revenue (LAs 41000 and 41001), and F&A cost on grants (LA 91017).

In addition to the University-wide building services projects, most building Locations also have other charges in various programs and projects. Often things such as elevator telephones are billed there. Please also review these charges in your operating funds to ensure that such charges are appropriate.

Additional information on Accounting for University Building s can be found in the online Accounting Manual.

FP&A Year-End Review Steps & Actions Required for Planning Unit Coordinators

Please see the closing calendar for the detailed dates for the following: Deadline for USP charging and any charging outside of your Planning Unit. Closing deadline for non-self-support units and YSM departments. Closing deadline for self-support schools (including YSM Central), Division of Faculty Salaries

and Provost Administration.

July 6June month end close process will populate Financial Plan (FP) working plan files with June actuals, YBT will be down for the morning while this process runs.

FY2020 Year End Institutional Plan (IP) files and submission reports will be available to all Planning Units. FY2020 Year-End IP’s can be found on the Axiom ribbon in YBT under “Institutional Planning”. FY2020 Year-End Submission reports can be found on the Axiom ribbon in YBT under Reports – YBT Report Library - 01-University Submission – Year End Submission.

After July 6IP year end files only will be updated nightly until the final June close in September, and actuals will be available for reporting purposes.

Working plan files will not be updated as doing so would require the full month end close process. Reports with actuals will include the same data as W o r k d a y (all activity through the previous day’s cutoff) and should be used for year-end analysis.

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July 27 Central Units; July 29 Others* IP variance explanations are due to FP&A. Please submit the IP for review in YBT using the Process functionality.

*Others includes only the following: Self-Support Schools (SOM, Nursing, Law, FES, Divinity, and YSM), Division of Faculty Salaries, and Provost Administration

The FY2020 Year End IP includes two variance comparisons and comments sections – FY2020 Budget vs. FY2020 Actuals and FY2020 Actuals vs. FY2019 Actuals. The Q2 forecast is included in the IP as a reference but does not need explanations in the IP (major variance explanations of actuals to forecast are required in the year-end narrative). As part of the IP submission, please populate variance explanations for all material variances +/- $500,000 or +/- 20% for both variance sections. Variance explanations in IP are essential to ensure an accurate closing process. Please quantify your explanations wherever possible. For example, if tuition is over budget due to more students, please identify the number of students, the average rate and the dollars explained. Quantified variance explanations help ensure accurate data and present a clear picture of a unit’s financial situation. For additional space for providing explanations within the IP files, please use the blank tabs in the IP workbook.

In addition, review the net fund balances within the IP Plan report to ensure that they are within the established thresholds provided by the Controller’s office.

July 29 Central Units; July 31 Others*High-level year-end narrative and submission reports are due to FP&A. Please submit a copy of both your narrative and submission reports as attachments to an email to your financial analyst on this date and save copies in your unit’s folder on the budget server. Narratives will be compiled and submitted as a package to the VP for Finance and to the Provost.

The recommended narrative template will be provided in each unit’s FY20 Year End Budget folder; however, units can submit their narratives in any format they choose and can vary in length depending on the unit’s complexity and level of variances. It is important, however, that each narrative address each of the areas outlined in the template and be reported on both GA and Non-GA for Centrally Supported units and on an ALL funds basis for Self-Support units.

The purpose of the narrative is not to duplicate what was already provided in the IP but to provide a programmatic summary and analysis describing the total impact for an activity which may be presented on multiple lines in the SOA. Please refer to your submission reports (specifically the F35 and L50) to support your narrative.

Submission reports due on this date are listed below and can be found in YBT under Reports > YBT Report Library > 01 University Submission > Year End Submission. There are only two reports that need to be submitted: F35 and L50.

Additional Questions regarding YBT and Year-end1) Q: What will be the communication method for YBT issues or delays, will it be posted on the YBT

home page or email sent?  A: Communications will be sent via updates on the YBT home page or depending on the degree of criticality notifications will be sent to all YBT end-users.

2) Q:  Will actuals load into to YBT on Saturday and Sunday if people are working? A:  Beginning July 6, the actuals will load daily (7 days a week) into YBT from Workday.

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TRANSACTION INSTRUCTIONS (INCLUDING SYSTEM INFORMATION)

For training guides on all key Workday financials business processes and operational transactions, please see the Workday@Yale training website.

For year-end purposes, beginning on July 1, users will be able to create and authorize transactions for multiple periods (e.g. both June FY2020 and July FY2021) at any time. Both FY2020 and FY2021 transactions will be posted to the General Ledger daily. You will need to consider the fiscal period carefully for all transaction types, especially when submitting items to AP, approving supplier invoices, creating expense reports, preparing journal entries, and performing adjustments.

Please note that due to scheduled quarterly maintenance, access to Workday is not available from 2AM to 2PM on Saturday, July 18.

Journal Entries

See the closing schedule for important dates pertaining to FY2020 year-end journal transaction processing. Strict observance of these guidelines will ensure the processing of transactions in the appropriate accounting period.

Reminder: There are three journal cutoff days – July 10, July 17, and July 24 (see schedule). Starting July 25, the system will only allow individuals within the Controller’s Office to make journal entries in the June period. All units (including USPs and central teams like OSP) are subject to the journal cutoff deadlines. If there is a true need for a journal hitting a unit in June after July 10, the person who has identified the journal must contact that unit’s business office, share the information, and receive confirmation from the unit that the entry may be completed. If judgment is required on the question of “must post to June/”, the individual should contact General Accounting.

For units that must be closed on July 17, the Planning Unit Lead Administrator (or their designee) is responsible for ensuring that her/his unit does not perform journal entries during the period from July 18-24.

To perform this evaluation run “Find Journals by Cost Center – Yale”. Information on parameters is available in the “Workday Reporting” section at the end of this packet. Any journal entries that should not have been booked must be reversed by the unit. Click for instructions on reversing journal entries.

In the event the Planning Unit Lead Administrator (or their designee) discovers that an entry has been posted subsequent to their close deadline, and this results in a bottom-line funding that needs to occur, please discuss with your budget analyst immediately. If it is decided that an entry should occur, the budget analyst will help coordinate this with General Accounting.

Journals that are in-progress on the dates that reference Net Balance Update will be canceled. Every effort should be made to approve Journals prior to the cutoff times listed in the calendar.

Commitments

Consistent with all other month-ends, any open PO commitments will be carried into the new period.

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Manual commitments will not be carried over into the next fiscal year.

Payroll Processing

The final Monthly and Semi-Monthly payrolls for FY2020 will include all paid payroll transactions through June 30.

The final Weekly payroll for FY2020 will include all paid payroll transactions through Saturday, June 27 with payment date of July 1. Departments will see expenses as normal in the June period.

The first Weekly payroll for FY2021 will include all paid payroll transactions from Sunday, June 28 through Saturday, July 4 with payment date of July 9. The University’s payroll accrual basis is 5 days, not 7 days, as such, there will be an accrual for Monday, June 29 and Tuesday, June 30 as of June 30, 2020. This payroll accrual is automatically calculated by Workday and will be based on 40% (2 of 5 days) of actual time-entry wage activity for the week ending June 27. [Note: During the fiscal year, the accrual process occurs every month end, as applicable. The reversal of the accrual happens in the subsequent month.]

Payroll Accounting Adjustments (PAA)

Adjustments may be required to payroll actuals due to incorrect charging instructions including, but not limited to, labor suspense. Strict observance to the transaction deadlines noted in the closing schedule will ensure that payroll adjustments are processed in the appropriate accounting period. If the PAA is for payroll results applicable to FY2020 and the business process is not complete before 3PM on July 17, the PAA will post in FY2021.

Labor SuspenseReview and clear any balances remaining in transaction suspense. Refer to Suspense Transactions in the Accounting Manual for details. Labor suspense balances are always cleared via a PAA if it relates to pay periods after 7/1/2017. To avoid future charges going to suspense, please also update the current payroll costing for the impacted employee(s).

Transactions that are greater than $100 per employee per pay period should be cleared. If the individual devotes effort to a sponsored project, all labor suspense regardless of whether

it relates to a sponsored award or not, must be cleared (see Effort Reporting item below). The only exception to clearing labor suspense is if the grant set-up is in process, but not yet

complete. These items in suspense should be cleared as soon as the new grants have been established.

(Note: Two of the projects (PJ101291 and PJ105202) included in the definition of suspense are related to non-payroll transactions. These are cleared by journal entry, not by PAA. These are covered by this section to avoid separate sections in these instructions related to suspense.)

Effort ReportingAs noted in Policy 1315-Effort Reporting: Certifying Effort on Sponsored Projects, certification is due within sixty days of notification of availability. Charges remaining in suspense accounts at close impact the ability to certify effort reports accurately, and on time. All suspense charges related to effort on sponsored awards (where grant setup is complete) must be cleared by July 17. Suspense charges not cleared prior to the effort reporting release will require the adjustments be made through the

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effort report. An effort reporting period release is scheduled for July 31, 2020. Initiation will begin in the morning and will be announced by the Office of Sponsored Projects (OSP) when complete.

Payroll / Compensation Payment Adjustments

Overpayments to Employees / Staff:To make timely and appropriate accounting entries reflecting adjustments for periods prior to June 1, 2020, all related overpayment information must be received in the Payroll Office (Attention –Employee Service Center 203-432-5552) by Monday, June 1.

Overpayment information should include:1. Completed Payroll Payment Adjustment Form – Please provide as much detail as possible,

along with contact information in case additional detail is necessary. Link to policy 3501 PR.04 contains forms.

2. Original Yale paychecks and / or personal (employee) checks to be deposited by the Payroll Office.

3. Any other information related to the overpayment that may be useful in determining correction needed.

If you need assistance determining the net amount that someone owes back to the University, please contact Employee Service Center telephone (432-5552) or via e-mail (see below) for a calculation. Adjustments not received by the above dates may not be made or reflected until FY2021.

Contacts: For any questions regarding payroll adjustments please contact employee.services@yale.edu Address: Payroll Office, 25 Science Park, 150 Munson St

Accounts Receivable and Year-end Customer Invoicing (YSM ONLY)

This section covers the procedure for invoicing YSM non-patient customers for year end. All invoices to be processed by the YSM Centralized Billing unit should be emailed in the normal manner to ysminvoicing@yale.edu no later than noon on June 23 in order to be guaranteed to be processed for year end in Workday. Invoices received after this date will be processed as time permits. Any invoices not processed in Workday but received by June 30 will be accrued for as revenue and processed as an invoice in July 2020 (FY2021).

All services performed by June 30 and after the invoicing cutoff (noon at June 23) for YSM non-sponsored customers, which includes all non-insurance billed amounts at the Medical School should be handled per the normal invoice process with the proper service dates listed. If these amounts are not ready for invoicing by July 17 please send a mock invoice clearing indicating this is an estimate and related documentation to ysminvoicing@yale.edu. These invoices will be reviewed by the YSM Controller’s office for proper accounting (GAAP) treatment.

Units are responsible for reviewing their respective AR Aging report during year end. This can be facilitated by reviewing “Non-Sponsored Receivables Aging Detail by Cost Center – Yale”. Information on parameters is available in the “Workday Reporting” section at the end of this packet. Please note that the report must be run on June 30 to result in an accurate aging. For those receivables that are uncollectible please send those along to ysminvoicing@yale.edu for write-off.

Accounts Payable and Expenses15

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It is our joint responsibility as financial managers of the University to ensure that all expenses are recorded in the appropriate fiscal year.

This section covers the procedure for transaction processing and accruals associated with Accounts Payable (both Supplier Invoices and Supplier Invoice Requests) and Expenses (expense reports for P-cards, out-of-pocket reimbursements, and advances).

Where possible, the native functionality in Workday will be used to achieve proper transaction cutoff, ensure timeliness of accounting information, and reduce manual work.

The AP and Expenses system will remain open until July 10. During the period from July 1 – July 10, the system will book transactions to the appropriate fiscal period based on transaction dates:

Supplier Invoices – based on the Invoice Date Supplier Invoice Requests – based on the Invoice Date Expense Reports – based on the Expense Report Budget Date

This replaces the need for most manual accruals previously done by the units at the unit COA level.

Supplier Invoices and Supplier Invoice RequestsAll Supplier Invoices and Supplier Invoice Requests related to FY2020 must be submitted by July 2.

Accounts Payable teams and unit reviewers will be responsible for ensuring that all transaction dates under their control are input accurately, with special focus on Invoice Date and Budget Date. We recognize that invoices related to FY2020 may be received and processed after this date. Where this is the case, please be aware of the following so that information is visible to the central accrual process:

Supplier Invoices – Units must ensure that the invoice date and budget date is accurate for all invoices.

o The Invoice Date must match the invoice.o The Budget Date must reflect the date when we received the product or service. Where

the product or service was received on or before June 30, 2020, please ensure that the budget date fall within FY2020.

o Where invoices are received manually in the unit and sent to AP, it is very important that invoices be reviewed and marked by units to indicate the year to which the invoice relates. We recommend that units continue to write the performance period clearly and prominently on the invoice.

o At this time, units cannot update the Budget Date during the Workday approval process. If you note that the Budget Date is incorrect, click the “Use Budget Date” button; this sends the transaction to AP Specialists. Use the comments field to provide instruction to AP. (ex: This transaction relates to FY20. Please correct budget date to be 6/19/2020.)

Supplier Invoice Requests – Please date your Supplier Invoice Request with the correct fiscal year.

o In most cases, the date on the supplier’s statement or other backup documents will match the performance date (the date Yale received the goods or service).

o In order to ensure that these transactions are visible to the central accrual process, users must use the performance date (June or prior) as the invoice date. This requires special

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attention, as the supplier invoice request form automatically defaults to the current date. User must update with the true product/service date. If your Supplier Invoice Request relates to FY2020, please make sure the invoice date is 6/30 or prior. If your Supplier Invoice Request relates to FY2021, please make sure the invoice date is 7/1 or later. Note that when creating a Supplier Invoice Request, a user may add notations to the Internal Memo section clarifying the performance date. For example, if the backup carries a date of 7/1/20 or later, and the goods or services were received prior to 7/1/20, a user can indicate in the Internal Memo section that the Budget Date is in FY2020. The invoice date field will be 6/30/20 or prior.

Note: Although there is no cutoff for supplier setup or changes, should you need to add a new supplier or make a change to an existing supplier, you must add an extra five days to any deadline cited herein. Accounts Payable needs five business days for the supplier setup and/or change and another five business days to process the invoice. This is especially important to keep in mind if you have an invoice that must get paid prior to June 30, 2020.

In-Process Transactions Invoices in your Workday Inbox Pending Approval - Determine whether there are invoices in

your inbox pending your approval. These are visible in report “Invoices in Progress by Cost Center – Yale”. Refer to the “Workday Reporting” section at the end of this packet. All FY2020 invoices with an invoice date < = June 30 must be approved by 3:00 PM on July 10 to be booked to the June period.

Open Requisitions – Units should approve all open requisitions by June 30. These are visible in report “Find Requisitions by Cost Center – Yale” by selecting a status of “draft” and “in progress”. Refer to the “Workday Reporting” section at the end of this packet.

NEVER DO A JOURNAL ENTRY TO CLEAR ACTUAL HOLD TRANSACTIONS. Doing so will not result in processing and payment of the transaction, nor will it remove it from your inbox. Please contact Finance Support Center (FSC) at sharedservices@yale.edu if you have problems clearing transactions from your inbox.

Expenses (P-cards and Out-of-pocket) and AdvancesAll expense reports related to FY2020 must be entered and approved by July 10 at 3pm to be included in (posted to) the June period.

All Expense ReportsDuring the period where both fiscal periods are open, the expense will post to the proper period based on the expense report budget date.

To ensure that an expense report is booked in the proper period while June is still open, it is important to have a correct date at the expense report level.

Expense line item dates: P-card – The expense item line date will always reflect the original transaction date that imports

with the credit card information. Out of pocket – the user enters the expense line date, which must match the receipt date (where

receipts are attached, the Expenses Team will kick back any items where the line date does not match the receipt).

After July 10, if the p-card transaction is in July but relates to a product or service received prior to June 30, the unit will need to perform a manual accrual. Please see “Manual Expense Accruals” below.

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Out of Pocket Expense ReimbursementsOut of pocket transactions should be completed in a timely fashion. Per University policy 3215, all cardholders are expected to prepare and submit expense reports for p-card transactions, with supporting documentation, within thirty (30) days from the date the expense is incurred.  For expenses incurred during business travel, cardholders are expected to prepare and submit expense reports, with supporting documentation, within ten (10) days from the end of travel. Unit administrators are responsible for ensuring compliance with this policy. Faculty, students, and staff should be reminded that any business expense incurred for business travel and other University business in FY2020 should be submitted for reimbursement by June 30, 2020. Such expense reports must be fully approved by July 10 at 3pm. Please follow up on your unit’s outstanding travel or expense advances and monitor the timely submission of expense reports to clear the advances.

If faculty or staff members are expected to be away for an extended period, they should be encouraged to submit reimbursement requests incrementally and not wait until they return to the University.

Travel AdvancesTravel advances for trips completed during FY2020 should be cleared by June 29. Emphasis should be placed on clearing advances for travel on sponsored awards as soon as possible. It is important that units use the correct central COA combination for any repayments of advances (travel or any other advances originating from spend authorizations). See instructions for Advances and Spend Authorizations in the accounting manual.

Accruals for Accounts Payable Accruals are recorded at fiscal year-end to recognize expenses that have been incurred by the University but not recorded as of June 30. This practice is performed to ensure that all material expenses are recorded in the appropriate fiscal year. Only expenses for goods and services received in FY2020 ultimately should be recorded in FY2020.

The extension of the Account Payable and Expenses system close date means that units are not responsible for booking manual accruals for most invoices and expense reports. The Accounts Payable department is responsible for reviewing invoices received in July and August and recording accruals for the whole University as appropriate based on the following criteria:

Up to July 10 – The AP team will book accruals using the unit COA values for supplier invoices with an invoice date on/after 7/1 and a transaction budget date <= 6/30. Note: On July 13, departments will be able to see accruals processed through July 10.

After July 10 – The AP team will book accruals using a central University COA combination for supplier invoices with invoice dates on/after 7/1 and transaction budget dates <= 6/30Note that after July 17, a materiality threshold of $50,000 will be used to determine the need for accruals.

Expense reports are not part of the central accrual process because they have been accrued in summary at the University level. Please see the Manual Accruals (Accrued Expenses) section below for instructions related to expense reports that relate to FY20 and are approved between July 11 and your unit close deadline.

June ReportingExpense accruals that are recorded via manual journal entry according to the above schedule will appear in the June statements with a journal memo beginning with APACCR. This will also be the journal source.

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July and August ReportingThe manual journal entries containing June expense accruals will be reversed in FY2021 with an accounting date of July 1. This will result in a credit to the July accounting period. This credit will net with the AP/Expenses transactions that posted to the July or August period (which is based on the invoice date noted in the table above).

Before assuming that you have been charged twice for an invoice or expense report (once in June and again in July), please check your July statements to determine whether a credit has been recorded. Accruals and reversals will have a reference number that includes the Supplier Invoice (SI) number. An accrual reversal (credit) in Workday will reference the accrual journal entry number in the journal memo field.

If you find a problem with the accruals, contact AP by e-mail to sharedservices@yale.edu.

Manual Accruals and Deferrals for Expenses or Revenues

As noted above, Accounts Payable can only accrue expenses based on the invoices that have been submitted and are fully approved. Consequently, any unit Lead Administrator who has knowledge of a significant expense ($5,000 or more) that has been incurred in FY2020 but not yet invoiced should bring this transaction to the attention of General Accounting. These adjustments must be handled differently from the normal unit journal entries. General Accounting will consult with you to determine if it is appropriate to record an estimated expense accrual based on the information available.

In limited circumstances where entries are needed, units will draft and submit journal entries, which are subject to review by General Accounting who will authorize all accrual / deferral transactions. This will facilitate the review of the transactions and ensure the reversal of the entries in the new fiscal year. Units may only prepare these transactions through the manual journal close dates (July 17 and July 24 – see schedule for units subject to each date).

Expenses and income only qualify for accrual if we received products/services or earned the income (provided products/services) in FY2020. If income/expense was budgeted in FY2020 but was not earned/incurred until FY2021, these items are NOT eligible for accrual.

Prepaid ExpensesExpense paid in FY2020 but applicable to FY2021.

Through July 10 Units should direct FY2020 operational transactions directly to a prepaid expenses account. Supplier Invoices / Supplier Invoice Requests should use Spend Category SC658 (Prepaid

Expenses). Business offices are responsible for reviewing and reconciling the prepaid expenses ledger

account for their Cost Center(s).

July 10 through Your Journal Closing DeadlineIf it is not possible to process a prepaid expense through the system process discussed above because it was identified after the deadline has passed, business offices are responsible for processing manual journals to recognize the expense and remove the prepaid expense. Manual journal entries to this account also require additional signoffs in the Controller’s Office, so reliance on the system process is quicker and easier.

Debit: CO01.YD000001.CCyour.PG00363.PJ103072.17008 (Prepaid Expenses)19

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Credit: Unit Expense COA

Accrued ExpensesExpense incurred in FY2020 but paid in FY2021 – subject to the accrual process above. There should be little or no need for a unit to create a journal entry to accrue expenses if transactions are coded properly. If there are any questions about whether your transaction has been included in the central accrual process, please contact AP by e-mail to sharedservices@yale.edu.

Manual accruals may be needed if:

Supplier Invoices/Invoice Requests completed/approved after June 30 (invoice dated FY2021 / relates to FY2020) are found after approval/posting to have an incorrect Budget Date.

P-card transaction or out of pocket invoice is dated in July but relates to a product or service received prior to June 30. This applies to items processed with an incorrect date up to July 10 and to expense reports that relate to FY20 and are approved between July 11 and your unit close deadline.

Significant expenses are known but invoices have not been received. Before a journal entry can be performed, the unit must use their best efforts to obtain a timely, accurate invoice from the vendor or supplier.

Debit: Unit Expense COA Credit: CO01.YD000001.CCyour.PG00363.PJ103072.20005 (Accrued Expenses)

Deferred IncomeIncome/payments received in FY2020 but applicable to FY2021. Initiated at the Planning Unit level only.

Debit: Unit Income COACredit: CO01.YD000001.CCyour.PG00363. PJ103072..20004 (Deferred Revenue)

Accrued IncomeIncome earned in FY2020 but was not invoiced via Customer Invoice function for June 30. This is often discovered when payment is received in FY2021. Initiated at the Planning Unit level only.

Debit: CO01.YD000001.CCyour.PG00363. PJ103072..11007 (Receivables – Other)Credit: Unit Income COA

Instructions for ALL Manual Entries for Expense Accruals, Prepaids, Income Accruals, and Income DeferralsTo achieve uniformity and minimize confusion and frustration in processing these types of adjustments, please observe the following guidelines:

1. Identify the transaction for which you need to manually establish an accrued expense, prepaid expense, income accrual, or income deferral.

2. Use the COA guidelines noted above by transaction type. Pay particular attention to the required ledger accounts and project (PJ103072).

3. Submit only via Manual Journal source in the user interface (i.e., typing into Workday – NO journal uploads will be permitted for these entries).

4. In the journal entry header, ensure that the “Create Reversal” box is checked, and the reversal date is 7/1/2020.

5. Ensure that the journal attachments contain all relevant information to show the amount incurred/earned and to validate to what fiscal period it relates.

6. Send an email to General Accounting containing your journal entry (JE) 20

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numbers. If you anticipate a large volume of journal entries in a given week, please group them together in one email. Email to controller.genacct@yale.edu.

General Accounting will review and confirm the journal entries. It will also ensure that the entry will properly reverse in the new fiscal year.

YSM – If you need to process a year-end adjustment to record any of these items applicable to FY2020, please contact YSM Controller’s office at ysmcontroller@yale.edu. Sue DeCrescente will ensure that these transactions are appropriate and will get processed in the system for review and confirmation by General Accounting. For non-sponsored customers please see the “Accounts Receivable and Year-End Customer Invoicing” section above.

Accounting for Contributions During the Year-end Close

Process and DeadlinesContribution Processing of the Development Office (Contribution Processing) records all donor contributions into the Hopper system which loads to the University’s general ledger accounts. The guidelines herein must be followed to ensure the proper processing, recording, and reconciliation of contributions to the University.

All donor contributions received by units should be immediately deposited to the Gift Clearing Account via cash sales using revenue category RC237 (Contribution Clearing) with the following charging instructions: CO01.GS054999.CC1520.PG00655.PJ000001.FD05. All gift documentation, including the cash sale transaction number, should be attached to the Cash Sale and/or Journal at the time of submission in Workday, no later than July 2, to have timely year-end entry. Contribution Processing does not back date revenue dates for gifts and pledge payments deposited after June 30th.

Note: The address for Contribution Processing is 157 Church St. – 8th Floor.

Upon entry into the Hopper System by Contribution Processing, the gifts will be transferred from the Gift Clearing Account to the appropriate unit account crediting the following: Spendable gifts – LA43000/RC028 Endowment gifts – LA43003/RC235 Capital gifts – LA43004/RC236

The total of contributions credited to the General Ledger during the fiscal year is reconciled to the total of the contributions processed in the Hopper System. Thus, it is very important to communicate with Contributions Processing at 432-5896 before making any changes.

Donor Contributions Deposited to Incorrect AccountUnits should not book any current year contributions themselves using ledger accounts 43000, 43003, or 43004 and the Gift Clearing Account. If such transactions occur in error, units should reverse the entry and credit the Gift Clearing Account using ledger account 43005. The donor documentation, journal entry number, and explanation as to where the donor contribution should be credited should then be sent to contribution.processing@yale.edu so it can be entered into Hopper properly as a new donor contribution. Contribution Processing will then transfer the donor contribution out of the clearing account and into the proper Gift using ledger account 43000, 43003, or 43004. Contribution Processing will also adjust the donor record in Hopper.

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If Contribution Processing deposits a donor contribution to the incorrect Gift, the unit should contact gift.adjustments@yale.edu and provide the correct COA where the donor contribution should be deposited. Please also provide all information known about the donor contribution including the donor ID, contribution amount, contribution date, and designation number.

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YEAR-END DATES FOR TRANSACTION PROCESSING AND REVIEW

Refer to the link below which will navigate you to an EXCEL table with calendar dates for processing deadlines, net balances updates, and reporting events. From this EXCEL table, you can select those items you would like to add to your Outlook Calendar. When doing so, it is important to consider and to follow the steps below:

1. The Task column captures a general phrase regarding the activity. 2. The Description column provides more detail regarding the Task. This is IMPORTANT to

read when making your determination as to what item to add.3. To add a calendar item, refer to the Add to Outlook columns. There are two separate columns:

(1) Distributed Units, and (2) Central Only.a. DOUBLE-CLICK on the icon. b. A box will pop open and you will be asked “Do you want to open this file?” Click

“Open”. This will cause the item to open as an Appointment in Outlook. c. Select SAVE & CLOSE from the menu.d. Your item has been added to your Outlook Calendar.

NOTE: Refer to the notations for applying filters to column A which are found at the top of the calendar table. This will impact your view of the icons that are visible.

4. After the calendar event has been added to Outlook:a. Please note that the Description will appear as the Subject.b. Start time and End time will match the Date, Day and Time columns, as appropriate.

If there is no Time identified, the Calendar entry will show as “All Day”.

https://your.yale.edu/policies-procedures/other/year-end-closing-calendar

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WORKDAY REPORTING

There is no lag on financial information in Workday reporting. When financial transactions have completed, the information is available to all Workday financial reports. The DataMart that feeds the Account Holder report is populated with Workday financial data each night. This daily update continues throughout the month of July for the June close.

As discussed in the Net Balance Review section above, net balances are updated in Workday periodically during the year-end close (see detailed calendar). Net balances are updated and booked based on transactions and balances in the Workday system at the time when net balance is run. Most management reports calculate the anticipated ending net balance based on SOA activity (income, expense, transfer, reclassification). Opening balances on reports are based on the booked balance in the net balance ledger account.

Reporting Event - definedThe closing schedule includes activities called “Account Holder Report Event”. A reporting event is where the DataMart that feeds the Account Holder report is populated with Workday financial data.

Schedules on HoldBecause there are multiple Reporting Events during the June close, units may wish to consider placing selected schedules (specifically faculty members) on a temporary INACTIVE status for one or more of the events. Remember to place the schedules back on ACTIVE status for the event you wish to run. If you need assistance, please contact sharedservices@yale.edu.

Reports That May Aid in Year-end ReviewReports that may aid in year-end review are listed below. Questions regarding use of parameters and output of results may be directed to fss@yale.edu. Note that units should use Management as the parameter for Book when running the reports.

Workday Reporting Guide for Year-End Financial Closing ProceduresProcedure Report Parameters for Report Review Net Balances

(provides information to support the requirement for balances at the Cost Center/Funding Component level)

Net Balance Review – Yale

Account Balances Detail – Yale

Time Period: Defaults to Current Period YTD - do not change. Fund Hierarchies: - For all items = "Op Funds Budgeted by Units"- For YD only = "Unrestricted Operating"- For Endowment only = "Endowment Operating Funds"- For Spendable only = "Spendable Gift Funds"- For direct charge Grants only = "Grants & Contracts Funds"

Time Period: Leave default filter to "Current Period YTD" otherwise ending funding balance amount will not be accurate.Fund Type: Leave default filter to 01 Non-SponsoredFund Hierarchies: Leave default filter since most units will use OP Funds Budgeted by Units.Company: Keep default as Yale University.

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Procedure Report Parameters for Report Review Net Balances (continued)

(provides information to support the requirement for balances at the Cost Center/Funding Component level)

Other Available Reports include:

Account Balances Summary – Yale

SOA Actuals by Fund Summary

Gift Account Balances - Yale

No parameters are provided for the reports at left.

Validate revenues and expenses in GA are appropriate to the GA budget

(replaces the business use cases for the Account Holder by PTAO report)

Budget to Actuals for Management Office Reporting by Gift/YD/Fund – Yale

Select your Cost center / CC hierarchyFund: 30 Central GA Fund Repeat by: Fund Keep all the other defaulted prompts

Review activity in Gift # GS052996 Designated Purpose Miscellaneous Spendable Gifts

Financial Transactions – Yale

Time Period: Current Period YTDGift: GS052996Keep below defaulted prompts:Ledger: ActualsCompany: YaleAdditional Options: Exclude Pro Forma JournalsInclude payroll details (will only show if you have the security access)

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Procedure Report Parameters for Report Review all assets and liabilities recorded in your cost center

Assets and Liabilities – Yale

Trial Balance by Cost Center – Yale

Time Period: Keep default of Current period YTD (otherwise balances will not be accurate)Cost Center/CC Hierarchies: Select your CC / HierarchyFund Hierarchies: Op Funds Budgeted by UnitsLedger Accounts and Summaries: (pay attention to punctuation) Yale Chart of Accounts: Accounts receivable, net

Yale Chart of Accounts: Other assets Yale Chart of Accounts: Accounts payable and accrued liabilities 10005: Cash - Petty – Boxes 13004: Notes Receivable – Other 21002: Advances on Tuition, Room & Board 21003: Advances – Other 21004: Advances - Royalties Payable

Company: Keep Company Yale defaultDO NOT review ledger accounts:20011 (Accrued Wages & Salaries Payable) and 20033 (Accrued Wages & Salaries Payable - Forward Accrual) - these are managed centrally by Payroll.11002 (Receivable - Grants & Contracts) and 11016 (Receivable - Unbilled - Grants & Contracts) - these are managed centrally by OSP.20025 (Due to/from Balancing Worktag), 20026 (Due to/from non-Yale Company), and 20036 (Due to/from Balancing Worktag Offset) – these are managed centrally by the Controller’s Office.NOTE – for any units that also manage student loans, add FD15 and FD16 to the Fund prompt.

Same parameters are used as noted above for Ledger Accounts and Summaries.

Endowment and Investment Income - Review gift balances to determine all endowment income due your unit.

Gift Balances - Yale Keep all default promptsInput cost center Change period for June

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Procedure Report Parameters for Report Unallowable costs - Identify high risk expenditures that need to be reviewed for allowability; confirm charges are to proper expense types in order to properly exclude unallowable costs from the federal Facilities & Administrative (F&A) rate proposal and subsequent reimbursement when the F&A rate is applied to sponsored awards.

Sponsored High Risk expenditures – Yale

Identifies those that are in high risk (unallowable category). Please note this report gives the high-risk items, not all of them are unallowable however they should be reviewed for allowability. Allowability is award specific and could have other high-risk expenditures not captured in this report. Ensure that you rely on the award terms and conditions for any special terms.

Transactions Posted to “Other” Ledger Accounts - Review transactions within these ledger accounts to determine if they should be moved to a more specific ledger account.

Financial Transactions – Yale Detail Transactions - Yale

Limit to ledger accounts (for better performance) Ledger Account: 42017, 45011, 45016, 45022, 81051

Note that this report can be used for various other types of analysis by changing the prompts.

Review Labor Suspense to identify payroll accounting adjustments that may be required to payroll actuals due to incorrect charging instructions. (See Note 1 on page 28.)

Labor Suspense Review - Yale

Program: PG99999 and/or Projects: PJ006725, PJ028458 and PJ105201

Company: Defaulted to Yale. Period and Time Period: Defaulted to current month and current period YTD, but you can change it as needed. To see most up-to-date data, you should run it current period YTD. Amount Type: Defaulted to Activity and Ledger to Actuals – These should not change.

Note: You can add your cost center or cost center hierarchy at your option.

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Procedure Report Parameters for Report Review Non-labor Suspense to identify adjustments that may be required due to incorrect charging instructions. (See Note 1 on page 28.)

Account Balance Detail - Yale

Program: PG99999 and/or Projects: PJ006725, PJ101291 and PJ105202

Journal Entries - For units that must be closed on July 17, the Planning Unit Lead Administrator (or their designee) is responsible for ensuring that her/his unit does not perform journal entries during the period from July 18-25.

Find Journals by Cost Center – Yale

For in-process journals:Keep all default promptsInput cost center or cost center hierarchyPeriod: JUN Starting Created On: 07/18/2020Ending Created On: 07/25/2020

For posted journals:Keep all default promptsInput cost center or cost center hierarchyPeriod: JUN Starting First Posted Date: 07/18/2020Ending First Posted Date: 07/25/2020

Invoices in your Workday Inbox Pending Approval - Determine whether there are invoices in your inbox pending your approval. All invoices must be cleared by July 2.

Invoice Aging in Progress – Yale

Company: Defaulted to Yale University. Other Prompts: Can be used as needed.

Open Requisitions- Units should approve all open

Find Requisitions by Cost Center – Yale

Select a status of “draft” and “in progress”. Defaults are included in status and Company defaults to Yale University.

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requisitions by June 30.

Procedure Report Parameters for Report Aging- Units should reviewing their respective AR Aging report during year end. Please note that the report must be run on June 30 to result in an accurate aging.

Non-Sponsored Receivables Aging Detail by Cost Center – Yale

Organization: Required and is normally Cost Center or Cost Center Hierarchy.Company: Defaulted to Yale. Reporting date: Should be 6/30/20 for year-end reporting.

Note: The report MUST be run on 6/30/20 in order to get data as of 6/30. Currently, you cannot run the report after 6/30 has passed and tie to the ledger trial balance amount as of 6/30/20.

Other prompts: Optional based on individual department reporting needs.

Note 1: In lieu of running the reports as cited, you may refer instead to the Monthly Financial Review Checklist dashboard which includes both the Labor Suspense and Non-labor Suspense data where you can drill into the detail for purposes of your analysis.

29Last updated May 6, 2020