Description Change Rules .harvard.edu



Description Change RulesOverviewSegment values are created to serve a particular function in the CoA. The description established at the time the value is created signifies to users:whether an accounting transaction may appropriately be debited or credited to the value, andthe classification and meaning of a group of financial transactions on a report.Once values are created in the Oracle General Ledger, they cannot be deleted; they remain part of the historical record of the chart of accounts. Any transactions posted to them become part of Harvard’s financial history.While the values cannot be changed, any attributes associated with them, including the description, may be. It is not always advisable to do so, however, because of the risks posed to transacting and reporting with the values.Risks to considerRiskExplanationExampleAncillary systems do not get updated with changes and end users transact to the value inappropriately.Oftentimes, values are extracted from a system of record and stored locally to save end users the time it takes to sift for the values that apply to them from amongst those belonging to the hundreds of other organizations sharing the system. These local systems (sometimes consisting of a handwritten sheet of paper stored next to a user’s PC) are sometimes imperfectly updated. In cases where the purpose and use of a CoA value is changed centrally, a long period of time could pass during which the local users would continue to transact to the value according to its earlier function.An administrative assistant creates a list of 33-digit code combinations to which he charges different faculty members’ expenses. One of these coding strings contains the root value 12345, which is used for Professor X’s expenses.If the tub’s chart administrator were to change the description for root value 12345 to now represent Professor Y, but did not adequately communicate the change to his departments, the administrative assistant would continue to post Professor X’s expenses in error.Risks to consider (cont.)Invalidation of historical transactionsUsers transacting to a particular value assert that their transaction not only appropriately reflects the reporting purpose of the value, but also adheres to any restrictions imposed on it. If the description is later altered such that it reflects some alternate reporting purpose or use restriction, the original transaction is invalidated.Fund value 323456 is established with a gift from a donor that restricts its use to tulip planting in Harvard Yard. In FY1, tulip expense transactions are posted to it in keeping with the restrictions.If in FY2 the value was renamed to reflect a different donor’s gift, and this gift was restricted to funding living expenses for visiting professors, the FY1 tulip expenses would now be invalid and would appear to be in violation of the current fund restrictions when viewed on historical reports.Inability to compare financial results over timeMaterial description changes preclude the comparison of historical transactions to the value over time since the meaning of the grouped transactions is completely different before and after the description change.Let’s say a value was used for tracking magazine subscription expenses for FY1, but in FY2 the description was changed and users started charging travel expenses to it.Assuming that financial managers wanted to track changes to both expense categories over both FYs, it would require significant and unnecessary manipulation of report output to do so.“No change in purpose” rule overviewBecause of the risks listed above, Harvard enforces a “no change in purpose” rule for segment value descriptions in the CoA.The “no change in purpose” rule states that…Which means that…Once a value and its description are established and transactions have been posted to it in the General Ledger, the description may not be materially altered.The University does not permit any change to a CoA segment value description that would invalidate historical transactions to the value.“No change in purpose” rule enforcementThe “no change in purpose” rule is enforced by all central approvers of modifications to chart of accounts values as follows:Segment TypeApproverFUNDGifts,ChildEndowments, Student LoansRecording Secretary (RSO)FUNDSponsoredChildOffice for Sponsored Programs (OSP)ACTIVITYBalance SheetChild DebtOffice of Treasury Management (OTM)ACTIVITYCIPChildFinancial Accounting& Reporting (FAR)ACTIVITYSponsoredChildOffice for Sponsored Programs (OSP)SUBACTIVITYBalance SheetChild DebtOffice of Treasury Management (OTM)SUBACTIVITYCIPChildFinancial Accounting& Reporting (FAR)SUBACTIVITYSponsoredChildOffice for Sponsored Programs (OSP)ROOTBuildingChildHarvard Real Estate Services (HRES-CAPS)All other segment types, ranges, and value types not listed above.RangeValue TypeClient Services (CS)Large-Scale Description ChangesBecause of a modification to business practice, a tub may wish to make large- scale changes (>75 requests) to segment value descriptions. Unfortunately, while large-scale changes can be uploaded quickly using the CSMA Batch Upload feature, there is no corresponding mechanism within the application to allow an approver to provide a “batch” approval. Each request launches a separate notification, which an approver must then open, review, and approve individually. A file of 250 description changes that takes five minutes to load through CSMA Batch Upload could take an approver four or five hours to approve, assuming they had that much time to devote solely to the activity and weren’t prone to repetitive strains from clicking their mouse 500 times!Because of the infrequency of large-scale changes (two-three times per year), development of “batch” approval functionality within CSMA would be impractical. Instead, to handle those rare instances when it does occur, Client Services has configured a special responsibility that allows them to submit description change requests on a tub’s behalf without generating CSMA workflow notifications.Here’s how it works:Tubs with large-scale description changes prepare the appropriate CSMA batch template just as they would if they were submitting the request themselves.Instead of uploading the file, however, the authorized requestor sends it to HYPERLINK "mailto:csrequest@harvard.edu" \h csrequest@harvard.edu the subject line “[Tub Acronym] Large- Scale Description Changes for Upload.”Client Services verifies the current description for each value, compares the old description to the new, and conducts the “change in purpose” review.Client Services then loads the file using the special no- Workflow responsibility, after first eliminating any values that failed the change-in- purpose validation.Client Services returns the final loaded file to the originating authorized requestor, along with the batch ID assigned, the date and time the file was loaded, and a list of any values not loaded from the original file with the validation error that prevented upload.The authorized requestor is then free to verify the changes by running the Batch Summary report and to resubmit any failed requests via their usual CSMA responsibility.Tubs with large-scale description changes are strongly urged to take advantage of this alternate process. It ensures that these changes are done as quickly and efficiently as possible, with minimal impact to both requestor and approver.For example…Description changeto…Existing description is…Description will be changed to…Make the description more clearUIS^IT ServicesUIS^Computer Support ServicesBroaden the description (inclusive of more transactions)FCOR^Center for Chinese+Japanese LiteratureFCOR^Center for Far East LiteratureAdd “XT” to description’s tub prefixHLS^Shavell,John M Olin Fdn,HLS XT^Shavell,John M Olin Fdn,Add additional identify- ing information (e.g., HUID, Bldg ID,embedded A21 code, Org Abbreviation suffix)PRES^Conferences+Se minarsPRES^Conferences+S eminars TUPCorrect spelling errorsKSG^Belfor Ctr for Science+Intl AffairsKSG^Belfer Ctr for Science+Intl AffairsAbbreviate or expand word spellingsKSG^Ctr Bus. Govt. Asia ProgramsKSG^CBG Asia ProgramsChange description from “OK TO REUSE”GSD^OK TO REUSE -Fellows ACADGSD^ Summer 2001, PD CoursesUpdate description with text “TO BE DISABLED” or “DO NOT USE”HMS^Class of 1953 Scholarship FundHMS^Class of 1953 Scholarship Fund - TO BE DISABLEDDescription changes not considered a “change in purpose”The following description changes are NOT considered a “change in purpose” by approvers:Description changes that may be considered a “change in purpose”The cases listed below are determined to represent a change in purpose only if the segment value has been used in historical transactions. If no historical transactions exist, the description update will be allowed. In cases where historical transactions exist, the validations/analysis listed below will be completed by approvers; should the approver determine—based on analysis of the historical transactions—that the proposed update represents a change in purpose, the description update will NOT be allowed.Description change to…For example…Additional approval validations requiredExisting description is…Description will be changed to…Make description more specific (possibly invalidating transactions that reference the broader purpose)GSD^ConferencesGSD^FY02Conference on Urban PlanningAll historical transactions must reflect the more restrictive description1Remove “XT” from description’s tub prefixFCOR XT^Cuba+ Caribbean Programs (A04) DRCLSFCOR^Cuba+ Caribbean Programs (A04) DRCLSAll historical transactions must have been posted to the value’s owning tub onlyMake description consistent with transaction historyHBS^Business Conference 2003HBS^Business Conference 2002All historical transactions must be consistent with the new descriptionReuse the value for a completely different purpose (not “OK TO REUSE”)inconsistent with transaction history (if it exists).HPRE^108 Holton StreetHPRE^130-140Western AvenueNo historical transactions can have been created with this valueNote: If your description change falls into one of the scenarios listed above, please include clarifying information in the Comments field on your request. Doing so will help streamline the approver’s analysis and lead to a faster resolution.* The original transactions as they appeared in a now closed period cannot be transferred to another segment value in a current period to meet this requirement. ................
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