Body
Overview
This article will cover the deficit outreach process and deficit resolution methods including how to handle incoming payments that arrive before and after the fiscal year end.
Outreach
Outreach will be done on a project-by-project basis and will currently be via email.
Individuals and/or Departments can be proactive and check their current Project balances at any time within Workday, using the Balance Reports.
View Available Balance using the Balance Reports
There are two Project balance reports which can be accessed via the Financials Dashboard.
For information on how to use each of the reports, click on the links below. You also refer to report specific diagrams attached to this article.
If you do not have access to these reports and or the Financials Dashboard, submit a Workday-Related Help ticket.
Resolving Deficits
The first step is to use the balance reports to determine if the deficit is related to current or prior year activity, for information on using the balance report see the links above.
- If the deficit is related to current year activity (most common), it is best practice to identify and move the expense(s) using either a Journal Entry or Payroll Reallocation, see submission information below.
- If the deficit rolled over from the prior fiscal year a Non-Mandatory Cash Transfer is needed. These requests can now be submitted using our new service request (INSERT LINK).
There are several methods for deficit resolution, see more information about each of the following methods below:
- Moving Expense
- Payroll Reallocation
- Journal Entry for Non-Payroll Activity
- Non-Mandatory Cash Transfer
- Incoming Revenue
Moving Expense
- Payroll- Salary Expense, Fringe Expense and Graduate Student Tuition are all examples of Payroll expenses. These expenses must be adjusted by submitting the Payroll Reallocation Request.
- Non-Payroll- All expenses not included in payroll, ie: Accounts Payable Invoices (API), Expense Reports (ER), Internal Service Delivery, and Journal Entries must be moved using a Journal Entry or Accounting Adjustment. Submission will differ based on the type of Driver Worktag the expense is being moved to.
- Expenses moving to a Project or Operating Account: Send an email to Co-Accounting@mines.edu and make sure to include approvals/back up documentation. If a group of expenses needs to be moved, download the Transactional details from the balance report as an Excel file. On the Excel file please highlight the activity that needs to be moved and add a column to indicate the new Driver Worktag.
- Expenses moving to a Grant: Submit via the Office of Research Administration (ORA’s) Journal Request.
Non-Mandatory Cash Transfer
Transfers should be used to resolve deficits when specific expenses in the current fiscal year cannot be adjusted. Transfers move a define amount of available balance from one Project to another. These requests can now be submitted using the Non-Mandatory Cash Transfer & Budget Amendment Request.
Incoming Revenue
If a Project’s current deficit will be offset by incoming funds it is important to ensure the following:
- Payment is not related to activity in the next fiscal year. Projects should not be put into deficit in anticipation of next year’s funding.
- Payment will be received by the University prior to fiscal year end cash close. For the exact date please refer to the Fiscal Year End calendar found on the Controller’s Office Website.
- If the additional funding will NOT post prior to the fiscal year end, reply to the email from General Accounting with as much information as possible about the incoming funds/payment. We need to know if the incoming payment will resolve the entire deficit, when it is expected and what if any specific activity in the current year the payment is related to.
To ensure correcting posting of incoming payments please use the Payment Notification Service Request. These requests allow you to specify payment details to ensure timely and accurate posting.
For a cheat sheet, see the matrix below which shows how adjustments should be made based on the types of Driver Worktags involved.
