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November '23 Controller's Office Reminders

November 29, 2023

Presentation; Cash Sales; Customer Setup; New RFP Template; Incentive Compensation; Billing to International Customers; Deferred Revenue; T&E Approval; Policy 6002; Post Award Staff Training; Fringe for No Benefits Staff; Indirect Rate for Trials

YSM Controller’s Office Presentation
On October 24, 2023, the YSM Controller’s Office made a presentation to the F&A Managers to discuss the structure of our office as well as our goals and a brief overview of the work that we perform. This presentation was distributed to all of the F&A Managers subsequent to that meeting. View the Powerpoint.

Cash Sales Guidance
The YSM Controller’s Office continues to find a number of errors in COA usage pertaining to cash sales. We would like to remind the community of the Cash Sales COA – Reference document located in PolicyTech. As there are many revenue categories available when transacting in Workday, this document serves as a guide with examples and should be used in conjunction with initiating a cash sale. Please also consider whether the item in question should be invoiced through the Centralized Billing team and not recorded as a cash sale.

For invoicing questions, please contact
For COA questions, please contact

Customer Setup and W-9s
On September 13, 2023, a message was sent to the YSM community regarding customer setups and W-9 forms. The following guidance was included with regard to the completion of the Customer Registration Form:

  • Departments are required to complete basic information, department contact name, contact and fax number, and type of services provided.
  • YSM Controller’s Office will complete payment mailing information, ACH information, DUNS, and Tax ID number. If the customer is requesting Yale’s W9 only, please contact
  • Yale University Controller’s Office will provide all other information: Number of employees, type of corporation, credit reference information, CEO information, financial information, etc. (Please note that each customer form is unique; as such, information requests may vary. These are examples of standard requests.)
  • NOTE: Yale University does not issue Certificates of Insurance. Rather, please include this link for the company:

New RFP Template – Yale Medicine
On October 9, 2023, Yale Medicine published an updated RFP template. This version, located on the YSM Finance & Administration site, should now be used to submit business plans to the Shared Authorization Committee.

Please contact Tara Costain ( and Suzanne Kerley ( at Yale Medicine with questions.

Incentive Compensation Accrual – Cost Center Level
For clinical departments preparing for the new funds flow model (effective in FY2025), to more accurately reflect the clinical line of business’s net results, the monthly clinical incentive compensation journal entry to adjust expense to budgeted (and eventually forecasted) figures is now being recorded at the cost center level each month. The YSM Controller’s Office previously recorded this journal entry at the department level. Please contact with questions.

Billing to International Customers
On November 3, 2023, a message was sent to the YSM community regarding updates that have been made to the Workday Invoice Template. The following details were included:

  • A new field for Workday customer ID# has been added below the customer’s name on the form. The customer ID# can be found by using the Find Customers – Yale report in Workday.
  • In addition, a tab with international billing guidance has been added. We ask that departments who are doing business with an international customer review this entire checklist PRIOR to sending the invoice request to

The Centralized Billing team has encountered many obstacles when billing internationally. The team has worked with the Yale University Controller’s Office, the Office of Exports, and the Tax department to develop this guidance. We are hopeful that by utilizing this list, it will avoid payment delays and nonpayment.

Deferred Revenue
For any revenue collected in advance of being earned (e.g., retainers for attorneys, advance payments received), deferred revenue - a liability on the balance sheet - must be recorded, per GAAP accounting.

The invoicing process for advances received is as follows:
When the department received the funds in advance, please contact Treasury Services, who will apply the payment "on account".

Once the invoice is ready to be generated and the request has been sent to, please contact Debbie Collins ( regarding the retainer/pre-payment on account. The YSM Controller's Office will then request that Treasury move the payment to the invoice. At this time, it would be optional for the invoice to be sent to the customer since the amount has already been paid in full.

If a payment is received in advance that will not be invoiced, contact, and guidance will be provided regarding to which ledger account to post the revenue (deferred revenue on the balance sheet). When the revenue has been fully earned, the YSM Controller's Office will reclassify this balance to the revenue account.

"On account" guidance can be found in the Accounting Manual.

T&E Approval – Chairs and Lead Administrators
The T&E Approval: Chairs and Lead Administrators Procedure is currently under review. While the current procedure is still in effect and being monitored by the YSM Controller’s Office, changes are forthcoming. Please take time to familiarize yourself with the current procedure. Updates will be communicated in the future.

Policy 6002 Application of Facilities and Administrative Rates and Costs Recovery
Minor, clarifying changes were made recently to Policy 6002 Application of Facilities and Administrative Rates and Costs Recovery and its related form, 1306 FR.02 Facilities and Administrative Rate Reduction/Waiver Request. Please ensure that your department is using the latest version of this form.

Post Award Staff Training – Effort Certification
Please remember that at a minimum, any staff with a role in the effort reporting process should complete the following three trainings prior to taking any action on effort reports:

  1. Introduction to Sponsored Projects Administration (SPA)
  2. Cost Transfer Principles
  3. Principles of Effort

Additionally, in accordance with Procedure 1315 PR.04 (section 3), in order to participate in the effort certification process, the Effort Certification Reviewer must first review a number of training guides and complete the required training courses, which include Cost Transfer Principles and Principles of Effort noted above. Sponsored projects trainings can be found here.

Fringe for No Benefits Staff and Faculty
The YSM Controller’s Office has received several emails from departments related to fringe and individuals who elect to not have benefits through the university.

Please be aware that fringe is charged regardless of the employee’s benefits elections. The university Controller's Office uses the pool of all employees and the associated fringe costs to calculate an average rate which is then negotiated with the federal government. All employees are charged the same rate, which is dependent on the employee type.

Indirect Rate for Clinical Trials
On November 16, 2023, a message was sent to the YSM community from Arnim Dontes, Deputy Dean, Finance & Administration and Dave Coleman, Interim Director, Yale Center for Clinical Investigation regarding a change in the incirect rate on insudtry-sponsored clinical trials from 30% to 35%, effective October 30, 2023. The increased indirect rate will only be applied prospectively in the budgets of new research protocols being formulated at the time of the effective date, and this new rate includes investigator-initiated trials that are funded by industry.

Please contact Dave Coleman at if you have questions about this policy change.

Submitted by Lena Smith Parker on November 29, 2023