1300 PR.02 Modify or Close an Organizational Unit

Revision Date: 
April 27, 2015

1 – Organizational Units

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 modifying and/or closing 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 creating a new organizational unit, please see Procedure 1300 PR.01 (Requesting a New 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 by organizational units: Officer, Division, Department and Leaf-level Org.

A 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).

A 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:

  • a 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.
  • a 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).
  • a 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.
  • a start date that is the effective date for transactions to be valid for this organization.

Who Requests to Modify or Close an Organizational Unit?

An organizational unit modification or closure request can be requested by an authorized administrator, accountant or assistant.  Please note, that individuals cannot request changes 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.

An edit to an existing organizational unit may be required if:

  • There is a change in organization personnel affecting the identity of the administrator, statement recipient, or individual with formal fiscal responsibility for the organization.
  • There is a need to restructure the allocation of budgetary responsibilities in a manner incompatible with the existing organizational hierarchy structure.
  • New reporting requirements make it necessary to change an organization reporting code.
  • A department or section (or group of departments/sections) moves to another area in the University. In these situations, the organizational units are moved in the hierarchy; new organizational units are not created.

Any aspect of an organization (other than the organization number) can be modified upon request. This includes the descriptive name, organization grouping code, location in the organizational hierarchy (i.e. parent name and level), administrator and other personnel, and organization default PTAEOs.

Consider the timing of your request

Basic changes to the organizational hierarchy are processed once a month, as part of the month-end financial system close.  Please submit your modification request to Chart of Accounts prior to the calendar month-end and allow sufficient time for the COA review and approval process. Basic changes include:

  • Organization name
  • Org hierarchy parent changes – no change needed to budget workbook
  • BOLT or Budget Office (FP&A) details [central use only]

For significant organizational hierarchy changes, it is recommended that departments consult with COA well in advance of the desired implementation date, as some hierarchy modifications can be complex.

A hierarchy change where one or more organizations move out of a Target Unit and/or where the budget workbook access for the organization(s) must change:

  • require coordination with both COA and the Office of Financial Planning & Administration and
  • are processed only once each year.
  • If a department anticipates this type of change, please consult with COA as early as possible in the fiscal year.

Evaluate charging linkages, access and reporting

Moving organizations to a different “parent” within the hierarchy requires departments to consider the impact of the move on transaction activity, user access and financial reporting.  The departmental requestor is responsible for performing the majority of these actions, but COA and GA User Support can provide guidance and direction as required.

Complete Checklist: A detailed checklist for all segments is found at Form 1302 FR.13 (Checklist for PTAO Changes) and covers the following areas:

Balances and Open/Recurring Transactions

  • Make sure all final adjustments, transactions & transfers have been processed and have appeared on your statements [BUG 403a and/or Account Holder Report]
  • Change all new, pending or recurring transaction charging instructions to a new account.
  • Check and modify any VIPs [BUG 710a]
  • Determine whether any edits can or should be made to the budget – contact your budget officer with questions.  A budget/actual variances may be appropriate and acceptable for a period of time.
  • Communicate changes to all old and new users of the Org (all processing transactions or running reports).

Permission/Roles and Reports

  • Review access and permissions to various accounting and reporting applications; change, as necessary.
  • When a leaf-level Org is shifted and reports are scheduled/run by Org there will be no effect on reporting.
  • When a leaf-level Org is shifted from one department (or division) to another and the reports are run at the department (or division) level, only the balances will move forward.  Transactions will not follow to the new department.
    • Example: Org A is shifted from Department A to Department B.
    • When Department B runs its reports at the department level it will only see transactions from the date of the Org shift.  If transactions are needed at a time previous to the Org shift, either the report can be run at the Org level, or if needed at the Department level, Department A will have to run the report.
    • In addition, historical reporting cannot be performed for a new department/division prior to its creation date (even if the underlying orgs existed and received transactions/charges during the historical period).
    • When Department A runs its reports at the department level, it will only see transaction detail for Org A if the most recent financial period of the report is prior to the date of the Org shift

Charging Linkages and Ownership

  • Evaluate project/organization charging linkages.  If a project has a departmental or divisional link and the org is moving into a different department or division, you must request that those projects be relinked to the moving org.
  • Review projects and awards “owned” by the organization to determine if changes are needed.

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.

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 details about the change that has been processed.

Review the Confirmation report detailing your new organizational unit

  • Make sure the modification that was made 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.
  • Modify employee assignments and/or labor schedules, as needed for all leaf-level orgs (except for buildings).
  • For the appropriate employees, grant/modify access to the organizational unit.
  • Add, edit or delete scheduled and/or custom reports.
  • Communicate charging instructions to all individuals processing transactions for the organization.

What does it mean to close an Organizational Unit?

Closing an Org means that the segment will no longer accept charges.  As a result that segment is no longer part of a valid PTAEO and may not be used in accounting transactions.

Determine if an Organizational Unit Should be Closed

Organizations are typically closed for two reasons:

  • There is little or no activity and the department is cleaning up PTAOs or reports.
  • The organization is obsolete due to a reorganization or change in business operations.

About Org Closures

Closure happens in two phases (a) close for monitoring and (b) post-monitoring move to Obsolete Org Division.

  • Close for Monitoring – Actual system process for closing an Org involves end-dating all of the Project/Org linkages.
    • Project/Organization linkage combinations must be end dated. End-dating all of the Project/Org linkages will prevent the Org from receiving any additional charges.   (Note – University level standard projects will not be un-linked.)
    • All closed Orgs must also have a name-change that indicates the fiscal year in which the org was closed to charges.  Example: old name = FASFIN Organization X; new name = FASFIN CLOSEFY11 Organization X.
  • Departments must keep and monitor the closed Org within the department.
  • Post-Monitoring Move - After 5 years of no activity, departments can request moving to Obsolete Org Division.  At that time, after appropriate departmental approvals, the leaf-level Org will be changed to a new parent – out of the home department and into Obsolete Org Division.

After the post-monitoring move to Obsolete, the leaf-level organization will no longer appear in your departmental reporting.

In order to close an accounting segment, all pending transactions must be processed, certain balances must be cleared and all commitments must be cleared. The departmental requestor is responsible for performing the majority of these actions, but COA and GA User Support can provide guidance and direction as required.

Complete Checklist: A detailed checklist for all segments is found at Form 1302 FR.13 (Checklist for Account Segment Closures) and covers the following areas:

Balances

  • Check Asset, Liability and Fund Balance balances – they should net to zero  [BUG 403a and Review Tool for assets and liabilities]

Open (Pending) or Recurring Transactions

  • Make sure all final adjustments, transactions & transfers have been processed and have appeared on your statements [BUG 403a and/or Account Holder Report]
  • Clear all Accounts Payable advances associated with the Org [Review Tool]
  • Change all new, pending or recurring transaction charging instructions to a new account.
  • Check and modify any VIPs [BUG 710a]
  • Determine whether any edits can or should be made to the budget – contact your budget officer with questions.  A budget/actual variances may be appropriate and acceptable for a period of time.
  • Communicate changes to all users of the Org (all processing transactions or running reports).

Permission/Roles and Reports

  • Review access and permissions to various accounting and reporting applications; change, as necessary.

Charging Linkages and Ownership

  • Determine all Projects linked to this org and request that these Project/Org linkages be end-dated.  Click here for linkage form.  Please specify that this is part of an Org closure.  [The COA team can assist you with the identification of linkages until the My Accounts brio is released.]
  • Check that the Org being closed is not the prime project/task on your source.  If the segment being closed is a prime, you will need to contact Funds Management at 203-432-1347 and provide a new prime project/task. Prime projects/tasks receive income distributions.

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 that the Org be renamed to indicate closure and the fiscal year in which the org is closed (ex: old name = FASFIN Organization X; new name = FASFIN CLOSEFYxx Organization X). 

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

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 details about the change that has been processed.

Review the Confirmation report detailing your new organizational unit

  • Make sure the modification that was made 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.
  • Modify employee assignments and/or labor schedules, as needed for all leaf-level orgs (except for buildings).
  • For the appropriate employees, grant/modify access to the organizational unit.
  • Add, edit or delete scheduled and/or custom reports.
  • Communicate charging instructions to all individuals processing transactions for the organization.

Monitor and optional removal

Monitor the closed Org for mis-charges or residual activity.

Optional – after 5 years with no activity, the department may request to move the closed Org to the Obsolete Org Division using the Organization New/Modification Request form.

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.