What’s Changed with Account Certification removing Investment Income?

For Account Certifications created before Feb. 1^st, 2024, Account Certifications pulled in activity that are in 

the Standard: SRECNP Ledger Account/Summaries. 

SRECNP stands for Statement of Revenues, Expenses, and Changes in Net Position.  If you click on the related actions button beside Standard: SRECNP, you can pull up the full list of all ledger accounts that are pulled in. 

The list includes the ledger accounts in the 4000 Level (Revenue), 5000 level (Expense-Payroll), 6000 Level (Expense), etc. 

To remove the endowment related investment income ledgers, we had to change Ledger Accounts/Summaries that were pulled into Account Certifications.  The only ledger accounts that were removed were 4400: Investment Income, 4401: Investment Income – Debt Proceeds, and 4402: Investment Income – OSP.  All other ledger accounts are still visible in the Account Certifications. 

You can see the list of each of the ledger account summaries listed by clicking on the related actions beside each. 

You will no longer see investment income ledger accounts in the list of ledger accounts in Account Certifications. 

The amounts that are in the investment income ledger accounts will also not be included in the Total Ledger Account Balance at the top of the Account Certification.  These amounts had been included previously.  Your Total Ledger Account Balance with investment income may look different, including those with endowments.  It should be more closely associated with the spend for that month.  In September and March, you will see an administrative fee that will be included in the Total Ledger Account Balance but does not need to be reviewed and will not affect your Fund Balance.  This fee reduces the endowment investment. 

You have never been required to review and approve the Investment activity because that activity is managed and reconciled in central finance.  However, you did still have to open and submit the Account Certification if investment income activity was the only activity for that Gift/Grant/Designated and Cost Center combination.  This change, removing investment income ledger accounts, means that if the only activity on the specific worktag combination was investment income, that Account Certification will no longer be created.  This could help cut down on the Account Certifications that you have to review and submit each month.  If there is other activity in ledger accounts other than the investment income ledger accounts, you will still need to review that activity as usual, but you will not see the investment income ledger accounts.

Yes & No

Schools and Units receive the full yearly endowment distribution balance in July.  This is entered as a payable in a ledger that is not visible in Account Certifications.  This is not when the cash is redeemed from the investment.  The actual endowment distribution happens (the cash is redeemed from the investment) in September, December, and March. This allows the cash to remain invested longer. 

The endowment distribution happens in the Gift worktag via an Accounting Journal using the 8905: Non-Mandatory Transfer - Endowment Distribution ledger account (this is moving it from payable to the actual distribution).  The 8905 ledger account is visible in Account Certification, however, there is an offsetting journal line making the endowment distribution show as $0 because of the endowment accounting processes in Workday. If you sort your Account Certification by < > (not equal to) 0, the 8905 ledger account will not show up, but if you scroll to 8905 ledger account you can click on it to see the distribution. 

In September and March, you will also see endowment administrative fees that come through in the 8904: Non-Mandatory Transfer ledger account.  This fee reduces the endowment investment. 

Both the 8905 and 8904 ledger account activity that is related to the endowment has the Journal Source, Fundriver.  Any transaction line with Fundriver does not need to be reviewed by schools or units. They are reconciled in central finance. 

To see more information on endowment accounting click HERE.

No

The removal of the investment ledger accounts will only be on Jan FY24-25 Account Certifications  (Account Certifications created Feb. 1 2025) and after.  If you have Account Certifications that were created before Feb. 2025, they will not change at all and the investment income ledger accounts will still be included.  

If you have Account Certifications created before Feb. 01, 2025 that only have activity in an investment income ledger account, you must still certify those Account Certifications (prepare & approve).  Account Certifications that were already created will not go away.