Policy & Procedure Updates as of June 5, 2019

May 29, 2019

The following document is new and is posted on the Policies & Procedures website, as well as the Policies & Procedures drafts site. If applicable, please discuss the documents with the appropriate people in your department. 

Procedure 1101 PR.04 Balance Sheet Ledger Account Reconciliation & Certification

Related documents include:

These documents are proposed by the Controller’s Office.  As is current practice, all asset and liability balances must be substantiated (i.e., fully documented, including any required account reconciliations).  This is consistent with the monthly closing checklist expectations.

To solidify those expectations, the Controller’s Office has been working to develop a more disciplined approach to balance sheet account reconciliations.  This approach has taken the shape of a new procedure (Procedure 1101 PR.04 Balance Sheet Ledger Account Reconciliation & Certification) that supports an existing policy (Policy 1101 Guiding Principles for Business and Financial Administration) and new accounting manual guidance (Accounting Manual item – Balance Sheet Ledger Account Reconciliations).

The procedure outlines the University’s expectations as it relates to balance sheet ledger account reconciliations.  The accounting manual guidance supports this procedure and provides specifics on how to properly complete account reconciliations.  

In addition to the above, for certain ledger accounts, the Controller’s Office will be rolling out a new process in Workday for quarterly signoff on account reconciliations (called “account certification”).  The purpose of the account certification process is to verify that account owners have reviewed reconciliations for all asset and liability account balances under their authority and that, to the best of their knowledge, they are able to certify that the ledger balances are, in all material respects, complete, accurate, and supported by appropriate documentation, in accordance with University account reconciliation guidelines.

This account certification is being rolled out with a phased approach so that by June 30, 2019 account certification will be required for only a subset of ledger accounts. Early adoptees of this new business process have already been notified in a separate communication.  The Workday training guide (Workday Training Guide – Account Certification) provides step-by-step instructions on how to complete the business process for both preparer and approver.

Because of this phased rollout, the procedure has been published and is in effect.  To accommodate a full review process, the procedure is also available for community comment on the Policies & Procedures drafts site. If applicable, please discuss the documents with the appropriate people in your department. 

Reminder:

Always check the Policies & Procedures website for the latest revisions of all documents.  This will ensure you that are utilizing the most up-to-date version.

If you have any questions, please contact Policy & Compliance Services at controllers.office@yale.edu.