Greetings Colleagues,
In preparation for Workday Finance go-live on July 6th, we’re providing an update on how Fixed Price Surplus (FPS) budgets will be converted into Workday.
Current State: FPS budgets are set up when the University is allowed to retain an unspent balance after a sponsored program is closed out. They are identified by their FAS budget type/class, 05/34. Units are allowed to have multiple FPS budgets to accommodate different F&A rates. At closeout, GCA transfers the total unspent balance to the FPS budget whose F&A rate most closely aligns with the F&A rate of the award being closed out. F&A revenue is not recognized until the expenditure posts to the FPS budget.
Future State: In Workday, FPS budgets will be known as Residual Balance standalone grant worktags. Each unit will have one residual balance worktag with a 0% F&A rate. In order to align the accounting and revenue recognition with accrual accounting standards, the F&A revenue will be recognized and recorded when GCA transfers the direct cost portion of the unspent balance from the sponsored program to the residual balance worktag.
Conversion: Current fixed price surplus budgets will be consolidated so that there will be one FPS budget number at the department level (4th level org code) for all units, except for the Department of Medicine. FPS budgets in the Department of Medicine will be consolidated at the division level (5th level org code). The balances of all FPS budgets at the department or division level will be rolled into the one worktag at the time of conversion.
Workday will allow more granular breakouts of balances through other worktags (e.g.: activity, assignee) or transfer of funds to the grant surplus budget created through the Budget to Worktag Mapping Workbook.
If you would like to close a fixed price surplus budget prior to conversion on June 16, submit the request to GCA in GrantTracker before Wednesday, May 31. Requests received after that date may not be processed before June 16 and will follow the conversion rules mentioned above.
If you have any questions about this topic, please send an email to gcahelp@uw.edu. More information on this process will be presented at an upcoming MRAM.
Sincerely,
Grant and Contract Accounting
Questions? Email: gcahelp@uw.edu