Finance: Finance www.yale.edu/finance
Finance Division: Finance Division
Guiding Principles for Business and Financial Administration Policy 1101http://www.yale.edu/ppdev/policy/1101/1101.html:
Policy Statement
Yale University has been entrusted with funds to fulfill its mission of education and research, and is committed to conducting its business under the highest ethical standards.
All University faculty and staff, under the leadership of its officers, are obligated to ensure that University funds are used for mission-related purposes, and are expected to exercise their responsibilities with
integrity, following ethical business practices. Guiding Principles for Business and Financial Administration Policy 1101 http://www.yale.edu/ppdev/policy/1101/1101.html
Internal Control Concepts: Internal Control Concepts Programs and Resources focus on the University’s Mission
Management Objectives support the pursuit of the mission
Review processes help to assess risks
Control Activities help mitigate risks
Visit the Policy and Procedure web site at: www.yale.edu/ppdev
Accounting Structure: Accounting Structure www.yale.edu/coa
Fund Accounting: Fund Accounting Fiduciary responsibility for many sources of income or fund
Separate awards for each fund
Types of Funds: Types of Funds Sponsored Agreement funding
Gift and Endowment Accounts
General Appropriation funded operating budget accounts
Capital funded projects
Other Types of Sources
Clinical Income
Consulting Fees from Outside Organizations
Financial and HR System: General Ledger
Chart of Accounts:
Assets, Liabilities and Fund Balances
All Revenue Recognition
And Expenditures
Organized by:
Project.Task.Award.Exptype.Org Web
Report
Tools Web BuyPay Tools Oracle Applic.
Icon OFA/
Custom Commts Online
Statements
andamp; Reports WIP, SWAP
Web Req. andamp;
Query Apps. Budgets,
Spending Plans
andamp; Commitments VIP
Account
Maintenance Faculty
Appointments
and updates. Non-Faculty
Appointments
and updates Payroll
Hourly Time
Entries Labor Charges
Schedules and
Adjustments Cash
Receipts
Entry (RIF) Journal Entry
Preparation
andamp; Approvals Automated Interfaces
(44) Purchasing /
AP Module HR/Payroll
Module Labor Distribution Journal Staging Area YAMS
(Yale Administrative Menu System) Invoice
Import
Sources Financial and HR System
Chart of Accounts Segments: Chart of Accounts Segments Project Task Award Expenditure Type Organization
Project & Task: Project andamp; Task What is the business objective of the work?
Primary Group Code
Class Code
Project
Task
Award: Award How is the work funded? Source Type Source Group Source Award
Expenditure Type: Expenditure Type Where is the transaction classified within the Chart of Accounts? Account Type Master Object Code Major Object Code Minor Object Code Expenditure Type
Organization: Organization Who is fiscally responsible? Officer
Division
Subdivision 1
Subdivision 2
Department
Sub-department
Organization
Mechanisms for Recording Revenue: Mechanisms for Recording Revenue Treasury Services
Cash via Receipt Identification Form (RIF)
Credit Card Receipts
Other income may be recorded through Journal Staging Area (JSA)
Mechanisms for Recording Expenses: Accounts Payable payments for vendors and employee reimbursements
Labor
Payroll for paychecks
Labor Distribution (Labor Schedules) for charges
Interdepartmental expenses charged by Internal Service Providers (ISPs) through JSA Mechanisms for Recording Expenses
Mechanisms for Recording Corrections to Transactions: Labor Distribution (Distribution Adjustments) for corrections to labor charges
Journal Staging Area (JSA) for non-labor corrections and other accounting transactions Mechanisms for Recording Corrections to Transactions
Budgets: Budgets http://www.yale.edu/finance/budgetOffice/index.html
Budget Applications: Budget Applications Corporation Budget and MP0 Grant Budgets
Dept Management Plans andamp; Operating Budgets Developed once per year Created and updated as needed Available in data warehouse Available in data warehouse (Application under development) Monthly variance rpts. and quarterly monitoring Monthly account review andamp; faculty reporting Online management of department financial plans 'The Official Budget' Online Financial Management Budget Type
Update Frequency
Location
Uses
Budget Development: Budget Development Target budget
Unit budget
Corporation budget approved
Management Plan 0 (MP0) approved
Budget Monitoring: Budget Monitoring Quarterly monitoring – Management Plans 1, 2 and 3 (MP1, MP2, MP3)
Year end closing procedures
Budget Process Time Line: Budget Process Time Line Target
Budget
Developed
(Fall) Unit
Budget
Submitted
(January) Corporation
Budget
Approved
(April) Management
Plan Zero
Approved
(July) 1st Quarter
Monitoring;
MP1
(October) 2nd Quarter
Monitoring;
MP2
(January) 3rd Quarter
Monitoring;
MP3
(April) Year End
Closing
Activities
(Summer) Year 1:
Year 2 Budget Development Year 2:
Budget Monitoring Target
Budget
Developed
(Fall) Unit
Budget
Submitted
(January) Corporation
Budget
Approved
(April) Management
Plan Zero
Approved
(July) Budget Development for Year 3
Financial Management: Financial Management
Financial Management: Financial Management Daily Transaction
Processing
---------------------
Internal control
activities
Documentation Future financial
management tool
---------------------
Approved budgets
Current spending plans
Detailed assumptions Statements and
Reports
---------------
Business office review
Account owner
(PI) reports Data Warehouse
----------------------
Actual transaction
information
Approved budget and
spending plans
Commitments
Business Office Review Process: Business Office Review Process Transaction Exceptions
Labor and Accounts Payables
Transactions in Higher Risk Categories
Large dollar amount, unknown authorizer, certain expenditure types, casual labor
Review Balances
Review activity by source and with respect to budget or plan
Review current spending activity compared to prior trends
Department Reporting Options: Department Reporting Options University-written Fixed Format Reports Reporting tools for creating ad-hoc reports Web Statements and Reports BUG reports web site Brio web site, OFA Monthly financial and HR reporting Special reporting needs University-approved Brio Reports Where to find Primary Use Training is available. Log in through www.yale.edu/start for class registration. Financial and HR reporting
Record Retention: Record Retention Separate records that are no longer active
Determine which inactive records must be retained
Arrange for storage
Destroy obsolete records
Detailed information and procedures:
Manuscripts and Archives record retention web site
Policy 1105 Retention of University Financial Records
Grant Administration: Grant Administration www.yale.edu/finance/gcadmin/index.html
Typical Timeline of a Grant: Typical Timeline of a Grant Post-award Pre-award
End of Segment 4: End of Segment 4 Please Be Sure to View These Additional Segments (Available Via the Welcome Page):
General Overview
Human Resources and Payroll
Procurement
Administrative Tools