1300 PR.01 Requesting a New Organizational Unit

Revision Date: 
July 24, 2013

1 – Prepare to request a new organization

1a.  Overview of Organizations

 This procedure assumes an understanding of the Chart of Accounts and of organizations and the Oversight Hierarchy as implemented at the University. For detailed information refer to the COA Handbook.

This procedure is intended to help users to make informed decisions about creating new organizations (Orgs) and to assist in the preparation and completion of the following COA request form:

  • 1300 FR.04 – Organization – New/Modification Request

For guidance on modifying or closing an organizational unit, please see Procedure 1300 PR.02 (Modify or Close an Organizational Unit).

For information about linkages between leaf-level organizations and projects to form a valid PTAEO combination, please see Procedure 1302 PR.04 (Requesting New/Modified Charging Linkages).

The Oversight Hierarchy shows an organizational grouping of employees at the University, broken out byorganizational units: Officer, Division, Department and Leaf-level Org.

division is an entity that reflects the different areas of oversight for each of the University Officers. Each division must have a leader that is accountable for the underlying departmental budgets and should have more than one underlying department.

Optional grouping mechanisms of operating departments – subdivision1 and subdivision2 – If this grouping mechanism is selected, all departments within the division must fall into a subdivision. If subdivisions are used, more than one department should roll up to each subdivision (there may be exceptions – please consult with COA).

department represents a particular field of knowledge or a function within the University (ex: Physics, Financial Aid, Child Study Center) and must have a leader, such as a Director or Chair, that is accountable for the budget. Each department must roll up to a division (or subdivision, if that grouping mechanism is used) and should have more than one underlying leaf-level org.

Optional grouping mechanism for orgs – subdepartment1 and subdepartment2 – If this grouping mechanism is selected, all orgs within the department must fall into a subdepartment (cannot roll up directly to the department). If subdepartments are used, more than one leaf-level org should roll up to each subdepartment (there may be exceptions – please consult with COA).

Leaf-level organizations “roll-up” to or are summarized to organizational units at hierarchy levels above them for reporting purposes. These higher-level organizational units consist of Sub-Department 1, Sub-Department 2, Department, Sub-Division 2, Sub-Division 1, Division, Officer, University, etc.  The first hierarchy level to which an organizational unit reports is referred to as the unit’s “parent”.  The parent is responsible for the unit’s budget.  For example, a leaf level Organization may report directly to a Department, making the Department the Organization’s parent, while the Department may report to a Division, making the Division the Department’s parent.

In the following examples you can see every level of the roll-up path for two leaf level organizations.

Hierarchy Level

Required/ Optional

Example 1

Example 2

University/ President

Required

Yale University

Yale University

Officer

Required

Provost

Provost

Division

Required

MYSM School of Medicine

FAS

Sub-Division 1

Optional

MYSM Departments

Academic Departments

Sub-Division 2

Optional

MCDEPT Clinical Departments

Division of Physical Sciences

Department

Required

MCCC Comprehensive Cancer Center

FASPHY Physics

Sub-Department 1

Optional

MCCC Hematology

FASPHY Physics Administration

Sub-Department 2

Optional

n/a

n/a

Leaf-Level Organization

Required

MCCC Hematology Administration 696301

FASPHY Physics Registrar 627003

To provide a consistent mechanism to capture both operating and capital expenses incurred for building costs, University buildings are also created as organizations.

Organization Numbering Rules

Every leaf level organization is assigned a 6-digit number for identification purposes. Every organization number must be unique and no two organizations may share the same number.  General Accounting will assign organization numbers as the organization is created.

Organization numbers do not necessarily indicate where a particular organization is located within the University. When an organization moves to a new location in the hierarchy, it does not get a new number. The number is simply a unique identifier.

Organizational Unit Naming Rules

Every organizational unit (whether Leaf Level Organization, Department, Division, etc.) must have a unique name and no two organizational units may share the same name. For example, a leaf level organization cannot have the same name as another leaf level organization; neither can it have the same name as a department.  Organizational unit names identify the unit within the system. The organization name is made up of three parts:

  • The University Prefix:

The prefix is an abbreviation (up to 6 characters) for the organization’s parent unit. Prefixes are assigned at the Department level and below, and are meant to provide information about the Department and Division. Prefixes are standard throughout the University, meaning that a given organizational unit should have the same prefix as the unit’s parent.

  • The Descriptive Name:

The descriptive name is assigned by the requesting department and should represent the nature of the organizational unit’s business or activities.

Be sure to choose a descriptive name that is easy to use and is not too long (recommend 35 characters or less). It is recommended that descriptive names be short enough to appear on reports in their entirety.

  • The 6-digit Organization Number.

The organization number is assigned to leaf level organizations (only) during the creation of the organization in the system.

Example: ACSPRV Film Studies Academic Services 901001

In the above example the prefix ACSPRV is made up of an abbreviation for the organization’s parent Division and Department. “ACS” refers to the Division called “Academic Services”. “PRV” refers to the Department called “Provost Administration.”

Organization Attributes

Each component of the hierarchy must have:

  • unique name. Can use up to 65 characters. Each division, department, sub-department and organization is assigned a unique 3- to 6-character descriptive prefix, followed by the organization name.
  • functional classification that groups organizations by program to support analysis and reporting by mission.
  • an A21 classification that groups organizations to facilitate calculation of indirect costs (see Departmental Indirect Cost Survey procedure).
  • business manager or other individual with fiscal and administrative responsibility.
  • an administrator, who is the individual responsible for the overall activity of the organization, typically a dean, Director, or chair.
  • start date that is the effective date for transactions to be valid for this organization.

Who Requests a New Organizational Unit?

A new organizational unit can be requested by an authorized administrator, accountant or assistant.  Please note, that individuals cannot request new organizational units be added to the existing hierarchy higher than those for which they are authorized (e.g. the business manager of a department cannot request a new division).

How do I submit a request?

Request forms should be sent by email to coa@yale.edu

Does the request need to be reviewed in my department?

Yes – all request forms require departmental review and approval prior to submission to COA.  Please note that the requestor and department approver must be different people.  The department approver must have authority over the organization listed as the project “owner”.  Approval can be indicated in one of three ways:

  • Approver sends the request to coa@yale.edu,
  • Approver is carbon copied on the request submission, or
  • Approver’s authorization is included in the request’s email string.

Additional approvals outside of the requesting unit are required in many instances.  Chart of Accounts will facilitate those approvals.

You may be asked to provide additional information or revisions

If you are notified that the request needs additional information or revision:

  • Enter the additional data or make the appropriate changes to the form.
  • Resubmit the form for approval.

Receive notification of approval or rejection 

When a decision has been made on the request for a new organization, you will be notified.

Avoid common mistakes by:

  • Filling out the form clearly, completely and correctly.
  • Determining if the action you have taken is the best way to proceed (e.g. consider whether you should create a new project instead of an organization).
  • Ensuring that you understand the PTAEO definitions and how each account segment should be used.

2 – Complete and Submit a New Organizational Unit Request

2a.  Determine a Need for a New Organizational Unit

new organizational unit may be required if:

  • Your department has restructured the division of budgetary responsibilities in a manner incompatible with the existing organization structure.
  • Your department is engaged in a new set of activities that requires the assignment of budgetary responsibility to someone not included in the existing organization hierarchy.

Criteria for a new leaf-level org:

  • defined business objective
  • organized group of employees*
  • ongoing budget with Program Leader (Dean, Director, Chair) accountable for the established budget
  • people assigned (generally mapped as their “home org”)
  • multiple programs/projects
  • assigned space (in most cases)

Orgs provide governance over projects, tasks and awards; they should not exist solely as a project-grouping mechanism. Leaf-level orgs should not be used for purposes covered by other segments (such as award/source or project).

(*) – Some exceptions may apply, such as building Orgs. Please consult COA with questions.

2b. Obtain and Submit the Request to Add an Organizational

Obtain the Organization Request form (1300 FR.04)

Obtain the Organization – New/Modification Request form on-line at the PTAEO Maintenance  website.  Full instructions are included.

Complete all sections of the form. All fields are required, unless otherwise stated.

Request forms should be sent by email to coa@yale.edu.

 

2c.  Receive and Review Confirmation Reports

Chart of Accounts will be your primary contact for review and approval of all requests associated with your organizational hierarchy.  When your request has been processed in the financial system, you will receive a confirmation from a standard General Accounting mailbox.  The confirmation will contain the following information:

  • Organizational Unit Name
  • Organizational Unit Number (if applicable)
  • Parent to which the Organizational Unit reports

Review the Confirmation report detailing your new organizational unit

  • Make sure the organization you receive is consistent with your request.
  • Make sure that your orgs have the proper charging linkages to projects and awards.
  • Notify the processor and/or Chart of Accounts immediately if you find discrepancies or have questions.
  • Assign employees and schedule labor for all leaf-level orgs (except for buildings).
  • For the appropriate employees, grant access to the organizational unit.
  • Add or edit scheduled and/or custom reports.
  • Communicate charging instructions to all individuals processing transactions for the organization.

An organization will be ready to accept transferred employees or new hires and you will be able to process transactions against it as soon as you receive confirmation that the request has been completed.