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Clearing Uncollectible Cash Advances on Spend Authorizations
September 23, 2020
The Controller’s Office, in collaboration with Financial Systems and Solutions, has implemented a new procedure for clearing uncollectible spend authorizations (cash advances). When a department must recognize a loss for an uncollectible cash advance balance on an open spend authorization, an expense report must be submitted to properly liquidate the commitment and recognize the loss. A new expense item, EX0242, Losses-Uncollectible Spend Authorization, must be selected when processing the final expense report to close out the advance. Use of this method and recognizing losses on spend authorizations are expected to be limited and should be done in conjunction with consultation with Accounts Payable and/or the Controller’s Office
To properly recognize a loss and liquidate the commitment, the department must process an expense report, ensuring that the final expense report box is checked. Reference the workday training guide for details on checking the final expense report. The department must use the Losses-Uncollectible Spend Authorization expense item to charge the loss (expense) to the appropriate non-sponsored COA string. Use of this expense item will automatically link to the Losses (SC292) spend category. All expense reports submitted with expense item, EX0242, Losses-Uncollectible Spend Authorization, will automatically be routed directly to the P2P Cost Center Unlimited Approver. In addition, losses >= $50 will be routed to the Controller for approval.
Reviewing spend authorizations is a required step on University Form 1101 FR.01 Financial Review Checklist. Departments should be ensuring open authorizations are cleared timely and in accordance with Procedure 3215 PR.03 Yale Spend Authorization (Cash Advance). It is important to make every effort to recover any unused cash advances balances from current or terminated employees before processing a loss of this nature.
If you require assistance to determine if the cash advance balance needs to be written off, please contact financial.compliance@yale.edu.
For further questions, please contact Financial Compliance at financial.compliance@yale.edu.