Workday Chart of Accounts Business Use Cases for Consistent COA Segment Usage

Transcription

1 Workday Chart of Accounts Business Use Cases for Consistent COA Segment Usage 1 of 23

2 Table of Contents USE CASES: General... 3 USE CASES: Activities and Programs... 9 USE CASES: Yale s Internally Designated Funding (including selected Oracle Award principles) USE CASES: Gifts USE CASES: Research and Grants USE CASES: Patient Care USE CASES: Agencies and Investments USE CASES: Buildings, Facilities, Software of 23

3 USE CASES: General Business Use Case How it s done Today How it will be done in Workday Ongoing Functional Activities Activities grouped by University mission (line of business) significant for reporting to Dean / Chair / Director Project, Task, Org, Award Project - the functional classification gives us line of Business/mission Program Program the Program Hierarchy will group these together by University mission (line of business) External Requirements GAAP requires that expenses be presented by functional classification. At a minimum the expenses must be separated into program services, management and general, and fundraising. Program services should be broken out in sufficient detail to provide readers of the financial statements with a clear understanding of the not-for-profit s activities. Functional classification reporting is required on the IRS Form 990 which the University is required to file each year. The University is required to participate in the IPEDS (Integrated Postsecondary Education System) survey for the US Department of Education which requires classifications of expenses by program in a consistent manner across participants. Certain Programs will be used in the preparation of the federal F&A rate calculation. Yale Requirements The Provost has requested that the Workday chart of accounts and reporting provide a clear view of activities that are the same in nature but performed in multiple cost centers. At a minimum this is required for: o IT 3 of 23

4 o Fundraising/Development o Facilities o Business Offices o Security o Human Resources Officers and Deans have expressed a need to readily report on certain activities that occur across multiple cost centers. These activities would be large strategic initiatives and may be multidisciplinary. Officers, Deans and Directors have expressed a need to report on line of business or different missions. These activities cross many schools and units. Administrative activities where certain programs will be REQUIRED as leaflevel programs Various Projects or Orgs The following programs will be required as leaf-level programs that roll up to School and Unit Administration in the program hierarchy: PG00051 Business Office Operations PG00271 IT Support Local PG00401 School and Unit Administration ** PG01098 Human Resources Activities Local PG01593 Security Local (other than supplied/billed by Yale Police and Security) PG01423 Facilities Operating Activities Local (not supplied/billed by Yale Facilities) PG00052 Recruiting and Retention - Faculty PG00372 Recruiting and Retention - Staff ** For Target Units that are university administrative units (ex: HR, Police/Security, OCR, EHS, etc.),other than business office costs (which go to PG00051). The remaining local administrative activities should not to be split between PG00401 (School and Unit Admin) and PG00363 (General University Admin); please use ONLY PG of 23

5 Level of accuracy required when splitting payroll costs among program hierarchy values Varies The following programs will be required as leaf-level programs that roll up to Student Services in the Program hierarchy: PG00013 Recruitment of Students The following programs will be required as leaf-level programs that roll up to Fundraising & Development in the Program hierarchy: PG00056 Fundraising and Development PG00053 Alumni Activity and Events Or one of the more detailed programs that roll up to the Program Summary of Fundraising & Development NOTE: the Program represents the activity that your unit is engaged in. For example, a clinical or academic program is the activity. If you have ITS charges billed to this area, it does not qualify for PG Yale ITS will bill your program as part of the charging instructions that you provide. However, a departmental or division s ITS team activities would use PG Why? The Provost, Officers and Deans have a need to readily report on certain activities that are embedded in various units and occur across multiple cost centers. The F&A rate and Endowment Administrative Fee rate calculations need this data available. It will help differentiate the Program from the cost center in some cases. It will be useful in evaluating costing for University administrative costs that are allocated to the Schools and Units. It is important that Program be materially accurate at the Program Summary level of the hierarchy (expected to be between 20 and 25 values). This requirement may mean that payroll costing allocations need to be done by program to facilitate accurate reporting when 5 of 23

6 Activities requiring standalone financial management but not significant for Dean / Chair / Director reporting Varies faculty or staff split their time between programs that roll up to different Program Summary nodes. This guidance applies primarily to splitting payroll costs across the various program hierarchy values, but can be applied to both payroll and non-payroll costs. Split costs: 1) At the level defined by your unit if applicable (YSM). 2) At the level required by grants. 3) For all others: a) For salaries, should be based on having two different/distinct job responsibilities. b) The split among programs should be no smaller than 20%, should be made only when the split provides important information to support management understanding and decisions. c) If there is a non-grant split, it is acceptable to base it on a reasonable, high level estimate and only change it for material changes. Project When using Program to capture the broad mission activity and project for details, what about when the project would be null or general (ex: Student Club Chess, Student Club Drama, Student Clubs general or all) Use the General Project (PJ000001). Do not create a separate project every time you have this instance. When you do NOT have a requirement for detail below the Program level: 6 of 23

7 Use the General Project (PJ000001). Every cost center will default this general project when selected. If users do have the need for a meaningful project and the general project defaults, users may change/override the General Project with a more meaningful value. Administration activities Project or Org There is a general Admin/Support program for each major mission. Please use these programs: Education PG00030-Education Leadership and Administration Research PG00034-Research Leadership and Administration Patient Care PG00044-Clinical Leadership and Administration When there is unit admin that we are not going to break up into various functional programs (missions or lines of business), use one of the following programs: PG00051 Business Office Operations PG00401 School and Unit Administration PG00371 Faculty Support Activities Admin PG00488 Admin Appointments and Promotions Financial responsibility and management. Planning Unit known in Oracle as Target Unit which is the primary mechanism for managing actual and budget financial information at the University Level Additional granularity re: spending - what was purchased or by vendor Org, Department, Sub- Department, SubDivision, Project Division, Sub-Division, Department, Group of Departments Invoice Inquiry / PO Inquiry Project or Task Expenditure Type Org or Award Cost Center Transact on the detailed Cost Centers the rollup (or hierarchy) gives us the Planning Unit structure Ledger Account Spend Category / Expense Item Vendor Name 7 of 23

8 Additional granularity re: revenue what was sold or customer Petty Cash Accounts Cash Box no replenishment Cash Box with replenishment Study Subjects not available as petty cash in Workday (phased out in Oracle) Transactions in Error (sometimes called suspense in Oracle) Local/receivable system inquiry Project or Task Expenditure Type Org or Award Various Various projects Vendor Contract Ledger Account Revenue Category / Sales Item Customer Name Customer Contract Petty cash will be noted by specific ledger accounts The Cost Center on the transaction will indicate the department or section involved. The Program and Project used are specified by the unit and must reflect the activity. There will not be separate projects or programs to capture petty cash activity. In Workday there will be one primary program (PG9999 Transaction Suspense SYSTEM-GENERATED) that will be a reserved system value for error transactions. It is REQUIRED that the transactions in the suspense program be cleared. More information is forthcoming regarding instances where distributed departments may need to correct transactions (ex: via payroll costing updates). Other than to clear transactions, users should not select PG9999 on transactions. This is for system use only. Do not map to this - any history to convert to this program will be done centrally by the Workday project team. 8 of 23

9 USE CASES: Activities and Programs As a general note in this area, theworkday Programs and Projects represent the overall activity being performed in the unit, not the type of expense being charged. For example, a research program may include seminar expenses; the Program entered is research, and the Spend Category reflects the seminar expenses. Business Use Case Education / Teaching degree programs (ex: Undergraduate, PhD, Masters, NP) Education / Teaching individual courses Fellowship Student Clubs and organizations Individual conferences / lectures / lecture series How it s done Today Project, Task, Org Project, Task Project Projects, Tasks, Orgs Project, Task, Org How it will be done in Workday Program - general program listed below; other more detailed ones are available in the program list. PG00003-Education-Instruction and Teaching Project Program the most general programs are listed below; other more detailed ones are also available in the Program list: PG00028 Academic Fellowship PG01092 Research Fellowship Project may be used for individual fellowships where a Grant or Gift does not apply. When the fellowship is funded by a spendable or endowment gift, the funding component will be the converted Gift. Program for summary of all PG Student Organization Project for individual groups Program the most general programs are listed below according to mission; other more detailed ones are also available in the Program list: Education mission 9 of 23

10 Program Usage for Gift Revenue Various o PG00015-Student Academic Workshops and Lectures Research and Scholarship mission o PG00014-Lectures and Seminars Hosted o PG00018-Conferences Hosted Broad-Mission Activities o PG00854-Conferences Hosted Non Academic/Research Project for individual events When selecting a Program for your COA charging instructions, it generally does not matter whether the transaction is for revenue or expense. The Program will be the same for both the revenue and the expense and will reflect the programmatic activity being performed (in other words, the program that is used for the financial transactions matches what you are doing). See Program definitions document and other use case guidance in this document. However, when income/revenue is received for a Gift (either a spendable contribution or a distribution of endowment income), the income may be available for use in a number of programs. Business Offices often use these income balances to fund expenses after the expenses have been incurred in detailed programs. In these cases, income can be received into general programs that match the high-level programmatic mission: Education - PG00003 Teaching & Instruction (10) Research and Scholarship - PG00032 Research (21) Patient Care - PG00035 Clinical Patient Care (31) Broad Mission Activities: o Collections - PG00007 Collection Management (41) o Exhibitions and Performances - PG01659 Exhibitions and Performance General (42) 10 of 23

11 o Community-Focused and Public Service Activities - PG00261 Public Service General (43) o Community-Focused and Public Service Activities - PG01660 Community Focused General (43) Institutional Administration and Other Support - PG00401 School and Unit Administration Local (52) Yale Journal Publications Project, Task Program the most general programs are listed below and roll up to the Research and Scholarship mission; other more detailed ones are also available in the Program list: PG00046-Publications PG00218-Student Journals Project for individual journals/issues that require standalone financial management Journal Editorships (faculty Project, Task One program for Journal Editorships serving as editor in industry PG00380-Journal Editorships-Editorial Support journal) Project for each arrangement Exhibitions Summary in Org or Program for summary of all Project PG00262-Exhibitions Detail in Project or Task Project for individual exhibitions Internal Service Provided (the service offering) Varies may be in a Project, Task or Org Billed via expense ETs with See detailed conversion guidance for Yale Service Providers on the COA Website. Program the name should reference that it is an internal service General type of service Project the name should reference that it is an internal service Detailed service offering 11 of 23

12 consolidated revenue ISP billings will be performed using revenue and spend categories that have the prefix of Internal Income and Internal Expense. The expense side has been consolidated to respond to user community feedback regardeing too much granularity on the expense side. Internal income revenue categories should not duplicate the information in other segments (program, project, cost center, etc.). USE CASES: Yale s Internally Designated Funding (including selected Oracle Award principles) Business Use Case How it s done Today How it will be done in Workday Internal Funding Arrangements, including Start-up Discretionary (R&T) Research Supplement Bridge Funding Unfunded Research Recruitment Retention etc. [Note R&T may refer to research and teaching or research and travel] Individual responsible for balance or funding allotment Various combinations of Project, Task, Award, Org Project / Project Manager Task / Task Manager Yale Designated See full list of Institutional values. Each YD value can be used by multiple cost centers and with multiple Assignees. The hierarchy for Yale Designated will be set up in COA to allow reporting by: origin/source of the funding type of funding arrangement purpose of funding arrangement Assignee What about students or other staff where the in charge role changes often? 12 of 23

13 Generally unrestricted funds Current use (SPPRO) accounts (other than Internal Funding Arrangements) Clinical funds General Appropriations (GA Funding) GA is a common source of funds for operating activities. At Yale it is the single largest funding source. GA is the term used to designate activities paid for with the unrestricted funds of the university (e.g., tuition, unrestricted endowments or gifts) and which are not internally designated for a particular use. Award (PI or Manager) Etc. Awards including 0001xx 0051xx 0061xx Award 0001xx Each year we give $X to a club or activity that club is managed by a different student or staff member every semester, year or few years. This is not about the person; it is about the activity. Use Project along with the appropriate YD value. Each year we give $X of research funding to our Grad Students. This is about the person, not the activity. Use Assignee along with the appropriate YD value. We give each of our staff members a travel allotment of $X. This is about the person, not the activity. Use Assignee along with the appropriate YD value. Yale Designated YD Unrestricted Operating Can carry a balance. Yale Designated YD (Unrestricted Operating) all Oracle GA activity with the exception of the central support allocation for centrally supported units and the related expenses YD (General Appropriations Central Program Support) central support allocation for centrally supported units and the associated expenses funded by the central support allocation will not carry a balance at year-end. YD (General Appropriations Self-support) general appropriations for self-supporting units and the associated expenses funded by the self-support appropriations will not carry a balance at year-end. Centrally supported units (i.e., supported by the central University) can have activity in both YD and YD Self-support units can have activity in YD and YD of 23

14 Reserves Project, Task, Award, Org Any reserves for a given unit should use the following Yale Designated value. Assignee is optional and would relate to the responsible role such as ZZZ1003-Dean or ZZZ1004-Department Chair. YD Reserve Unit or School Student Loans Award Yale Designated - the FDM team has done this conversion; units are not responsible for requesting values Research and Publication awards to faculty members (often for FAS faculty, but may be present in other areas) Unique Project/Task for each award and faculty recipient Award - Usually from a SPPRO (0061) award or similar. Unit receives transfers of endowment/gift funds into a SPPRO account and wants to retain the details of the funding source. For faculty awards made prior to 6/30/2017: Funding Component = Yale Designated will vary, but mostly YD00373 (MacMillan Funded) and YD000220/YD (Unit Funded General / Unit Funded General Research Support) Project - one project for each awarding month/year this will be used for all recipients (ex. April 2017) Assignee this differentiates the recipients within the one project Any units not using the above model will be asked to reclassify balances into this model (reclassifications not to occur until final June 30 th 2017 balances are loaded Controller s Office will provide guidance). For the specific examples below, units may be asked to transfer balances from the YD values to the appropriate Gift values. New awards after 7/1/2017: Funding component is expected to be the Gift instead of Yale Designated this will feel more like a direct charge arrangement to allow visibility Below are some examples of the structure this is not a complete list. 14 of 23

15 Whitney Griswold Faculty Research Fund: GE Griswold A W Humanities Res PG Research (21) Project one project for each awarding month/year this will be used for all recipients (ex. April 2017) Assignee this differentiates the recipients within the one project Frederick W Hilles Publication Fund: GE Hilles Frederick W-Publ PG Publications (22) Project one project for each awarding month/year this will be used for all recipients (ex. April 2017) Assignee this differentiates the recipients within the one project Poorvu Family Prize fund for untenured instructors administered by Yale College: GE Poorvu Family fund for Academic Innovation PG00032 Research (21) PJ General Project Assignee this differentiates the recipients within the one project Return of funds for Sabbatical various Self-support units: YD (Faculty LOA) is optional; the Medical School will use to return sabbatical funds to departments 15 of 23

16 Centrally-supported units: Return of funds for sabbatical will be done on YD of 23

17 USE CASES: Gifts Business Use Case How it s done Today How it will be done in Workday Understanding the source of funds for gift and endowment vs. the use of those funds Report on all Gifts or Endowments Award + Project Appropriate Award representing source of funds, one or more projects (sometimes multi-funded with more than one award) representing the activity. 1:1 relationship between project and award most common removes the visibility to the activity where multiple activities are supported; removes visibility to activity when multiple gift projects must be combined to see a complete activity/program. One award combining multiple gifts with a desire for individual stewardship project representing each individual gift and/or donor funding source reporting is now happening in Project & activity/mission visibility is lost or moves to Org. Org grouping together Endowments and/or Gifts rather than using source groups to report Source Group OR Award numbers Orgs OR Projects Gift represents the gift and includes donor information Activity/activities supported by the gift are Programs (and also sometimes Projects). 1:1 relationships between Gift and Program/Project are much less common than in Oracle (ex: if the Jones gift and the Stone gift both fund the Instruction program, both would be used with the same program #; we would not have a program or project called Jones gift or Stone gift ) Gifts these can be grouped further work in the Gifts work stream will define 17 of 23

18 USE CASES: Research and Grants Business Use Case How it s done Today How it will be done in Workday Research - Extramurally Funded - Institutional / Discretionary Funding Research Leadership and Administration Multiple PI's Cost Sharing for Sponsored Awards Over the NIH Cap Research Program = Project, Org Award, ET Award, Task Project Multiple projects Multiple tasks Sponsored projects linked to both operating and sponsored awards Sponsored projects linked to both operating and sponsored awards Program - general program listed below; other more detailed ones are available in the program list. PG Research Use with funding component (Grant, Gift or Yale Designated) to indicate how that research is funded. Program - PG00034-Research-Leadership and Administration One Workday award representing notice of award Multiple Grants associated with the award One Workday award representing notice of award One Grant # for each direct charge set of charging instructions. For cost sharing: 1) Select the direct charge Grant number. 2) Add the YD or Gift value that is being used to cost share. Workday is delivering functionality to handle salary over the NIH Cap. Information to be provided in a later update. As of Nov 2016, historical conversion data structure will look similar to cost sharing. 18 of 23

19 USE CASES: Patient Care Business Use Case How it s done Today How it will be done in Workday Patient Care Clinical contractual agreements (including affiliated hospital, etc.) YNHH Shared Services Support Project (LOB), Task, Award, ET Oracle W-Awards Project, ET Project, ET Yale Designated: YD Unrestricted Operating Program: PG00035 Clinical - Patient Care PG00735 Clinical Laboratory Service Activites Project: For more specific patient care related details (i.e. clinic sites, clinical subspecialities, inpaitent/outpatient activities, etc.) Assignee: Optional, but for the School of Medicine, all transactions going to accounts under the control of faculty must include a faculty assignee. Yale Designated: YD Unrestricted Operating OR YD VA IPA Agreement Funded Program: PG00041 Clinical - Other Affiliated Hospital Contracts Project: For individual contract detail (i.e. VA, Bridgeport Hospital, Greenwhich Hospital, W-awards, etc.); will reside in the project hierarchy YSM Contractual Arrangements. Assignee: Optional, but for the School of Medicine, all transactions going to accounts under the control of faculty must include a faculty assignee. Yale Designated: YD Unrestricted Operating Program: PG00036 YNHH PDDO Agreements 19 of 23

20 Clinical Billing Activities Clinical: Leadership and Administration Project Project PG00037 YNHH Provider-based Clinics PG00490 YNHH Clinical Program Support Project: for individual agreements or additional YNHH-related detail Yale Designated: YD Unrestricted Operating Program: PG00035 Clinical - Patient Care Workday COA Project: PJ Clinical Billing Activities Program: PG00044 Clinical - Leadership and Administration 20 of 23

21 USE CASES: Agencies and Investments Business Use Case How it s done Today How it will be done in Workday Agencies of Yale various SEE full conversion guidance (DRAFT) for agencies on the COA Website Agency Link Agency purchases goods through Yale s suppliers (A/P and Procurement) this will follow the same process as any Yale department.the only thing that is unique: Company and Cost Center in the charging instructions will be non-yale. Agency receives services from Yale ISPs - The Yale ISP will bill out their charges directly to the agency customer. The revenue category that will be used is one for external revenue, since the customer is not Yale The expense side (debit) of the billing will be booked to the agency s charging instructions with include a non-yale Company and non-yale cost center (# begins with NC ) spend category reflects the nature of the service provided Payroll is involved - Yale employees provide services to the agency Yale pays the employees, and it is funded by/billed to an agency Payroll costing books the salary expense to Yale Company and Cost Center begins with letters CC and marked as Agency Staffing. Program will identify that the activity is staffing to agencies Yale bills the agency via a journal entry 21 of 23

22 o Debit (expense) to non-yale Company/Cost Center; Ledger Account Agency Staff Compensation, Spend Category SC545 o Credit (recovers the payroll expense) to same Yale Company and Cost Center from payroll Costing, Ledger Account Recovery of Staffing Provided to Agencies, Revenue Category RC183 Agency represents contracted services there is NO A/P, ISP or payroll involved Investments of Yale Various Eagle System = Combined in one Investment Profile Non-Eagle (including hedges) = Project Hybrid = Project USE CASES: Buildings, Facilities, Software Business Use Case How it s done Today How it will be done in Workday Including or excluding my building costs for reporting Building Orgs Operating Orgs for Facilities Org hierarchy to segregate Each building is a Location Planning Unit has a distinct Facilities unit/dept separate Facilities Cost Center within Planning Unit Otherwise no separate Facilities Cost Center Facilities project Capital Project Workday Capital Project the Projects team has created Software project Operating Project or Capital Project or Workday Capital Project the Projects team has created 22 of 23

23 Combination of Operating & Capital Project 23 of 23