New F&A Revenue Improvements Through Creation of Monthly Allocation Process

Contributed by Amanda Meares

Through collaborative efforts between OSP and UVAFinance, there has been a constructive change within the system regarding F&A revenue worktags, using an allocation process that will occur at the end of each month. This action is necessary to remove a duplication of F&A revenue posted to the Grant worktags. The information below highlights the necessity of this new process, an overview of the process itself, and how it will affect you.

Issue Overview

The Workday Finance configuration of the F&A Revenue Allocation profile for the posting of F&A recoveries led to a duplication of F&A revenue being posted to the Grant worktag. There were two duplication scenarios, one of which Grant Revenue earned for F&A Expense was posted to the appropriate Grant Revenue Ledger Account (Grant Worktag Only). Second, F&A Recovery for the F&A expense posted to 4110: Federal Grants and Contracts Revenue Ledger Account (Grant and Designated Worktags).

These duplication scenarios meant that fund balances on Grant worktags were incorrect, and resulted in complications in the Grant close process due to the inability to achieve a $0 fund balance following each Grant's period of performance were present. 

Resolution Implementation

The allocation process was implemented to remove the double-counted F&A revenue from the Grant and Designated worktags combination and consolidate them onto the appropriate FDM strings for the revenue allocation profile utilizing the Designated worktag only. 

In terms of the process implementation timeline, the allocation was completed for the FY23 and FY24 on June 27th, 2024, coinciding with the fiscal year-end close. Ongoing monthly allocations will be completed during the month-end close process. 

Impact on You

The Grant Worktag will be systematically removed from the F&A revenue during the month-end close process. Visibility of these activities will be detailed in the Journal Lines Detail reports and similar reports, with the journal source of "Allocation." The account certifications for June will include the one-time correcting allocation entry for the entire FY24 period. For future account certifications, the activity will net out within each month. 

Corrected Grant worktag fund balances will be reflected at the start of each month, ensuring accuracy for financial planning and reporting purposes.  It is important to note that minor conversion errors are still being resolved, but these impact a smaller subset of the Grant population. 

Reports within QlikSense remain unchanged as the allocation journal source has already been excluded. These F&A reports are designed to report based on the F&A revenue posted to the Grant and Designated combination prior to the allocation adjustment to Designated only. Any manual reporting that includes the F&A revenue on ledger 4110: Federal Grants and Contracts Revenue ledger account must be reviewed for consideration regarding the inclusion or exclusion of the allocation journal source for accurate Grant worktag reporting based on each scenario. 

If you have any questions about this new process, please reach out to AskFinance@virginia.edu