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May '23 Fiscal Year-End Reminders

May 01, 2023

Fiscal 2023 Year-End Closing Instructions and Kick-Off Meetings

As noted in the Business Update from May 3, 2023, links to the year-end closing procedures and closing calendar are now available via the online Accounting Manual. Be sure to add pertinent dates per the closing calendar to Outlook!

YSM Controller’s Office Processing of Journal Entries on Behalf of YSM Department Business Offices

As communicated from the YSM Controller’s Office on November 4, 2022, an updated process was implemented, inclusive of the following guidelines:

  • If YSM department business office staff are able to record the journal entry based on their Workday roles, they should do so, with the exception of cost sharing clearing entries. The YSM Controller’s Office (YSMCO) will continue to assist DBOs with these types of uploads.
  • At the university’s fiscal year-end, after YSM DBOs are closed and are restricted from recording additional journal entries into the general ledger (mid-July), the YSMCO will assist if needed, as this team has the ability to record journal entries for an additional week during the university’s fiscal year-end close. Materiality will be considered, and whether or not the entry is recorded will determined by the YSMCO.
  • If there are significant departmental issues that necessitate YSMCO intervention, as determined by the YSMCO, it may consider providing resources for journal entry processing. Note that the details of the journal entry and evidence of review by the DBO will still be required.

Please keep year-end deadlines in mind and contact with any questions.

Preparation for year-end GA Sweep process

As noted in the March 22, 2023 Business Update, in 2019, a process was instituted in which the Budget Office collects the Chart of Accounts (COA) to be used as the offset for each unit’s GA Sweep. The COA combination used for the GA Sweep remains the same year-over-year and is generally where centrally supported units receive their GA funding.

Now that these COA combinations have stabilized, the Budget Office will no longer reach out to all units annually to confirm the combination. If you have not done so already, please submit any changes to the GA Sweep offset for FY2023 must and

Chart of Accounts (COA) closures & hierarchy changes - FY23 year-end timetable

As noted in the April 12, 2023 Business Update, the last opportunity for COA requests related to segment closures, cost center hierarchy changes or reorganizations is May FY23 month-end (calendar June). Please submit all closure / reorganization requests to COA or YSM Controller no later than Friday, May 19, 2023. Closures generally resume with the September month-end (calendar October).

For more details on this timetable, please visit the Chart of Accounts (COA) web page.

Academic Program Support – Year-End Requests

As noted in the university’s year-end closing procedures (as well as YSM’s closing instructions ), a new initiative regarding academic program support funding/payment requests will soon be in effect. Academic program support payment requests may be requested starting May 22nd. This is not a requirement; however, if a department is able to make a reasonable estimate in May, please do so. Due to the volume of requests, we encourage departments to submit requests at an earlier date. Earlier requests will be funded as soon as possible.

Clearing Labor Suspense

As noted in the university’s year-end closing procedures, departments are required to review 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. Refer to the Labor Suspense Review - Yale report in Workday.

IPA/JPA Deficit Balances

As will be noted in YSM’s year-end closing instructions, IPAs/JPAs are invoiced quarterly, in arrears. If additional invoices are expected to be issued, do not clear deficit balances in these COA’s. However, If the IPA/JPA has ended, and no additional invoices are expected to be issued, the deficits should be cleared.

Transfers and Reclassifications

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. Ledger account 92020: Transfers between Operating funds should not be used for gifts or endowments or when transferring funds to/from non-YSM cost centers. Please see the university’s year-end closing procedures and the University Accounting Manual for Transfer & Reclassification of Funds, Costs and Revenues for detailed guidance.

Other Income and Other Investment Income Ledger Accounts

Ledger accounts under the Workday Account Grouping “All Other Income” should not be used with grant, clinical trial, gift, or endowment funds. There is an exception for royalty income in certain circumstances related to restricted gifts. Please contact ysmcontroller@yale.eduwith questions.

Ledger accounts under the Account Grouping “Other Investment Income” should not be used with grant or clinical trial funds.

The YSM Controller’s Office recommends using the SOA Actuals by Fund Summary – Yale report in Workday for monitoring.

Internal Revenue Ledger Accounts

Ledger accounts under the Workday Account Grouping “Internal Revenue” should not be used with grant, gift, or endowment funds.

If a correction to an incorrectly recorded expense is needed, the procedure is to credit the originally charged expense ledger account. Do not credit income on an internal revenue ledger account (LA 5XXXX).

Prior Year Corrections

When completing a journal entry to correct a prior year revenue or expense, please ensure the following information is included:

  • Notation that the entry is for a prior year correction,
  • The year the original charge or credit posted, and
  • The reason for the correction

The adjustment must also be recorded using the original ledger account of the erroneous transaction.

Journal Entries

As a general reminder, please remember to include complete descriptions and documentation with all journal entries, including transfers and reclassifications. Proper documentation provides an adequate audit trail and is required for all entries made to the general ledger.

Program Usage

As a general reminder, when verifying COAs, please be sure to use the correct program in Workday. Refer to the following reference guidelines and reference documents for additional information:

Submitted by Lena Smith Parker on May 31, 2023