Workday Finance Stabilization In Progress

Payroll actuals and encumbrances 

Actual

Obligation

Reporting

Payroll interfaces were caught up into Workday Finance as of early April 2025 and the number of default coded transactions have gone down significantly...however

Payroll that can be reviewed/should be accurate in the financials is limited to:

• Non-faculty payroll for PPE March 11 and forward
• Resident Faculty non grant payroll for PPE April 22 and forward (once it interfaces to Workday Finance)

The following are still issues with Payroll data:

• Payroll encumbrance is not accurate / does not record it to where the employee's payroll costing allocation is set (notified 3/20/25)
• Business expenses (expense reports) that are coded to a program/cost center different than  the employee's payroll costing allocation result in miscoding and/or duplication in business expense clearing
  • high impact on IFO professional study and travel program codes
  • Updates:
  • April 23 - submitted a ticket requesting an update and if we can resolve locally or if we need to wait for a broader System Office led fix.
  • April 24 - Asked for status update in CFO call - SO indicated awareness but not working on solution yet (due to other payroll issue priorities)
• There are missing payroll journals that were not posted through pay period 3/11. (notified 4/10/25) System Office is working on getting them posted to Workday Finance. Based on our analysis we are expecting small amounts, but are pending more details
• Transactions from earlier periods that went to default cc or program/grant, may not have been corrected yet.  That is in progress as of Mid April.  Once defaults are cleared, other coding corrections can be made
• Other coding corrections include
  • Resident Faculty payroll prior to PPE April 22 - Workday was recently updated so costing allocations match teaching assignments in FWM.  Transactions that have already posted prior to that also need to be reallocated.
  • Correcting mis-mapped program/cost centers, and or some Student Success mid year re-org transactions.

Background on why payroll interfaces were delayed and required catch-up...

Payroll Periods ending 7/30, 8/13, 8/27/24 interfaced to Workday Finance, but thousands of lines went to a default cost center/program instead of the cost center/program or grant where it should have posted. (error correction has started in late April)  

Because of the issues above, payroll interfaces were put on hold while they determined root cause for issues.  Catch up of interfaces into Workday Finance was completed from mid January to early APril.

Timing of FY25 Payroll interfaces in Workday Finance:

• Pay period ending 03/25/2025 - posted + regular routine of interface seems to have resumed
• Pay period ending 03/11/2025 - posted
• Pay period ending 02/25/2025 - posted March 12
• Pay period ending 02/11/2025 - posted March 7
• Pay period ending 01/28/2025 - posted March 3
• Pay period ending 01/14/2025 - posted Feb 27
• Pay period ending 12/31/2024 - posted Feb 23
• Pay period ending 12/17/2024 - posted Feb 20
• Pay period ending 12/03/2024 - posted Feb 20
• Pay period ending 11/19/2024 - posted Feb 10
• Pay period ending 11/05/2024 - posted Feb 4
• Pay period ending 10/22/2024 - posted Feb 3
• Pay period ending 10/08/2024 - posted Jan 30
• Pay period ending 09/24/2024 - posted Jan 16

Fringe Benefits Expense

Budget

Actual

Encumb

General fund program and cost center budget vs actual reports will show fringe expense but no budget.  There is a central Fy25 general fund budget for fringe benefits of $16,7M to cover these expenses. 

The budget is uses a blended rate of 32% of FY25 budgeted salary. 

The budget resides in Program: PG0006172 METS CENTRAL SALARY & FRINGE BENEFIT COSTS 215220

Previously ISRS budgets were loaded in the same way, but it had a reporting feature that visually removed expense from the program/cc and reported it against central budget. (BAT tables)

Because Workday does not have this capability, we may load fringe budget to program level for Fy26.  Any 'remaining budget' due to over estimation or vacancies would belong to the University, not the program, and would not be eligible for transfer to nonpersonnel budget.

Encumbrance-Nonpersonnel

• Determine how to get PO detail to support encumbrance column
• Why does Encumbrance not always = "Obligation Amount Remaining" on the Open Commitments report (which has PO detail)

Encumbrance

Reporting

For some Workday programs:

Encumbrance column on Budget vs. Actual reports is not matching/align with

"Obligation Amount Remaining" on the Open Commitments Report RPT00127 - and that it could be a source for the PO detail not available in Budget vs actual reports.

We suspect it is related to below and will re-test reports once manual corrections are made to those transactions:

• FY24 transactions paid out of Workday (post July 1)
• Negative encumbrances related to FY24 and Duplicated committments related to change orders

Duplicated Commitments caused by:

Cancelled POs

PO change orders

Resolved in April::  PO Change Orders (increases or decreases) were causing funds to be recommitted (duplicated in obligations and commitments) -- communicated &  corrected in early April

Resolved in November: Commitments is duplicated (Commitment already exists) when a PO is cancelled.  It reinstates the requisition, which re-commits the amount.  This causes remaining budget to show as less than it should.

Negative Obligation

Mis-states Total Expense and Budget Variance

List provided by System Office were manually corrected 4/18/25; We have found a handful of others and are reviewing to see if it is same root cause or not

 There are some Fy24 expenses where the encumbrance was released in FY25.  This will cause your Encumbrance column to appear lower than it should be and as a result make it appears as though you have more remaining budget than you actually do.

Please submit a Workday/Get Help request to Finance if you identify this in one of your programs, projects or grants.

Some revenue (invoices that have been paid by customers) seem to be stuck in deferred cash instead of showing as actual revenue on budget vs actual reports

Submitted system office ticket 190131 on 2/6; no response yet

We have heard it may be a known issue but are trying to get better info on how the mechanics/timing should work.  We are able to see deferred cash detail by invoice and program worktag (ISRS cc) on the balance sheet.

Carryforward FY24 to FY25

Budget

Reporting

As of 1/29, we believe all carry forwards from Fy24 to Fy25 have been completed EXCEPT:

• Some Customized Training (old Fund 120) cost center - detailed review and recap in process
  • Done
    • UED, COS, CCSPA (w exception of one clean up item on old account)
  • Reviewing/In progress
    • CBM, CIS/TREC. CNHS (closing out small balance in 210274), CPS CE/CT Carryforward (Provost)
• Tech Fee -meeting scheduled with IET 5/6/25 - carry forward and new process since Workday does not have GLs for cash tracking.

Carry forwards were initially delayed while waiting for:

• System Office to load FY24 Workday transactions in ISRS after year end (done late Sept)
• System Office to create Ledger accounts for carry forward entries.
  • Carry forward ledger accounts (created mid Oct)
  • Frozen budget ledger account (created January)
• Addressing knowledge loss with FM director departure and addressing transaction issues.  FM is reviewing in detail and will meet with colleges if needed to confirm understanding. (in progress April 2025)
• Establishing consistent process for Metro State carry forward practices so the process can be done more efficiently for FY25 to FY26, and so documentation of process can be shared with FM staff and Cost Center Managers (April 2025-initial KB article created)

Ensure program balances are associated with ONE cost center

• (done) Model Legislature 210178
• College in Prison 218373
• Student Basic Needs 216006
• Gateway Student Services 216010 - also doing their reorg back to Student Success
• Metro/S IET Reno Project
• CCAMPIS Hope Program 550021
• Orientation 216700
• Commencement 219200
• Student Center Operations 299140
• Student Ctr R&R 299145
• SC Deferred Maintenance 299150
• SLLD University Activities 334214
• (done) Application Fee 120004
• IPD Operating 218700
• XUniversity Advancement 219000
• METS Access Funding - Writing 210167
• METRO/S 2024 ST. Johns Hall Physical Plant Repairs
• CEI WD program merges (in discussion?)

Budget

Actual

Encumb

IN PROGRESS  -Now that the delayed payroll interfaces are in, transactions posted to default cost centers/programs/funds must be corrected, THEN these will be addressed; Anticipate full clean up during May. 

Programs listed in first column currently have budget, actual, pre-encumbrance, and/or encumbrance in more than one cost center or fund. 

These are due ISRS to Workday mapping issues or ISRS cost center merges as we moved from FY24 into FY25. 

In the meantime, to review activities on these programs, use RPT00290 Budget vs actual by Program and/or run a report on that Workday program #, so you can see program balances regardless of the cost center.

Moving balances is a multi-step, multi-person labor intensive process. As of 11/7, we believe all budgets have been moved to the correct cc; moving actuals and encumbrances continue to be in progress.  

Student Payroll Commitment (encumbrance) not in Workday

Commitment

Reporting

Student payroll is still processed out of ISRS and although actual expense interfaces, the encumbrance is not interfacing to Workday.  Opened System Office ticket 170892 on 10/15/2024 asking them to interface the encumbrance.

Workaround process:  Cost Center Managers, please keep tabs on your student payroll encumbrance amount by reviewing it in Web Accounting.  Actual and Encumbrance will be correct, but budget may not be (Web Accounting only has original budget load)

Student Payroll does send detail to supervisors every pay period and will make note of this.

Transfer In/Transfer Out (Funds transfer) 

• complete MSUSA student employment funding/budget 
• FY25 General fund funded facilities project budgets

Actual

Reporting

Did not have instructions on how to do Funds transfer in Workday until Early October;

Transfer In" is showing as a negative expense.  In Web Accounting it used to be a Revenue account. 

Ticket submitted to System Office 10/1/24 to inquire if that was an intentional change or an error - no answer as of April.

As of 4/24/2024, campuses still do not have ability to view cash balances.

We are told some cash conversion / financial reporting year end reconciliations are still in progress (System Office activity).   No ability at this point to run a report and know the cash balances in each fund for Fy25.  We have a SWIFT to ISRS reconciliation of cash as of end of June.

Once cash is accurately reflected in Workday Fy25, we will need to determine reporting/recording protocols for cash balances that previously had their on GLs in ISRS.  In Workday we anticipate the lowest level of cash balance will be at the Fund level.  All Minn State insitutions are pushing for a common solution for tracking cash balances within a fund.  In the meantime we may use spreadsheets or possibly carry forward entries.

Resolved week of April 14; CC Managers and Finance analysts were advised of the need to update saved report filters so book = modified cash

Notified April 10 that Budget vs Actual reports are not pulling the correct 'books' this causes inaccuracy for some program codes (negative expenses).  They were pulling the 'book' that is used for year end financial reporting by SO.  Reports corrected week of April 14 - Notified cc mgrs/finance analysts 4/16 to update report filters to 'modified cash' book.

In addition, Budget YTD label is misleading.  Column contains Metro's FULL YEAR Budget since Metro does not budget by month

DONE -   See my 2/19 email to cc managers and finance analysts for more info:

Ticket 170947 has resulted in a change request CR1280  created 12/5/2024 - resolved in February

Finance Analysts and CC managers can now  see Employee name when they use Budget Vs Actual reports and click into payroll transaction detail.  In some reports it is in the Worktags column, in others there is a Workers column

University financial reporting

PENDING:  Cannot make meaningful progress on this until payroll data is current and mostly correct.  Cash balances in Workday are also needed for some like REV and fee based funds.

Pre-Workday, the financial reporting data structures, and reporting tools and routines were limited.  

Elements needed to get to a comprehensive reporting routine will include:

1- (DONE)  Map out all projects/programs/grants into Fund structure - determine what structures Workday has to organize reporting (done)
2- (IN PROGRESS) Determine what to report on, level of reporting and who needs to receive the reports -- identify/establish data structures to enable that reporting

a-)For Gen fund, we will either need to

• establish a structure that allows us to report on the program codes that the University community tends to focus on most (unrestricted funds that are tuition and appropriation funded). ​​
  • ​​​​​Met with System Office reporting director mid March 2025 to discuss options for improvement, which appear to be limited.  This is a priority we will continue to work on.  Will likely require Workday program hierarchies, which we will need SO's  support to establish.

-OR-

• change how we report on general fund with the University community to include ALL of general fund including restricted System Office-funded initiatives and student Tech Fee. 

b-) Also need to make continuous improvement on granularity of important financial data (differential tuition, PPSC, budget loads).  Once we can see the data at the right level, then we can improve processes, controls, reporting, communication, decision-making around it.

3- (NEED ACCURATE TRANSACTION DATA BEFORE WE CAN MAKE MEANINGFUL PROGRESS Determine schedule for review, distribution, publish of financials

This also includes ensuring there is a routine for meaningful collaboration and support with cost center managers and their support staff to ensure transaction accuracy.

4- Determine how to produce and publish the reports.

Long term goal: Financial reports/dashboards in My Reports on my.metro like we have for enrollment data.   All university CFOs are pushing on SO to get the data access that would allow that to progress. 

For now -- we will need to use custom filters on the reports available in Workday and export them to Excel, modifying as needed for structures that do not exist in the data yet. 

Hierarchy level 3 was corrected after go live to align cost centers by division/VP.   This allows us to combines all Workday Cost centers that report to the VP (and the programs/projects/grants within regardless of fund).

• CCH2000038 METS Finance and Operations
• CCH2000040 METS Provost and Executive Vice President for Academic Affairs 
• CCH2000185 METS Vice President of Student Success
• CCH2000043 METS Vice President Equity, Inclusion and Affirmative Action
• CCH2000039 METS President
• CCH2000184 METS Vice President of Strategic Enrollment and Marketing
• CCH2000183 METS Vice President of Institutional Effectiveness and Technology
• CCH2000042 METS Vice President for University Advancement
• CCH2000182 METS Vice President of Human Resources and Employee Experience

Levels 4 & 5 are not yet corrected, lower priority.

In future, may consider simplifying labels to reflect the division, not VP title

Actual 

Encumb?

Reporting

SOME COMPLETED/SOME PENDING SYSTEM OFFICE improvement / resolution on both eBuilder and Workday reports, and correcting Construction in Progress entries.

Metro State sent SO tickets in Dec and March; met with SO facilities team rep in March.

Until above are fixed, Facilities project invoices received through eBuilder (SO tool) are showing in Workday as one debits and two credits (net negative expense), instead of a single debit (expense) + there are many other integration issues

As of March, facility project reporting is still limited.  View Project > Financials is currently best source for actuals, but should be reconciled periodically against eBuilder and SWIFT to ensure accuracy.   Other information View Project screen is likely not useful (i.e. it does not show budget, etc).

Trial Balance  by project worktag (keep retainage in mind when running) or RPT000275 Find Journal Lines Faceted maybe helpful (transaction detail)

Nonpersonnel budget controls

Currently all Minn State institutions are setup for Workday "Budget Check" to give a warning rather than stopping a transaction. The setting can be turned on by institution (Workday  "Company"), but has not been turned on in Fy25 due to the many Workday stabilization activities underway.  ​​​​Cost Center Managers need to monitor spending against budget as best they can.  

System Office anticipates turning on budget controls early in FY26.  We are told it will monitor budget at the ledger account level within a program, but detailed testing is underway.

Personnel budget controls

There are no system controls for personnel, however during Fy25, FM has established a manual process to do a budget check for Position Request forms and to manually track (at the PCN (Position Control Number) level) what impact it has on our annualized budget.  We are working on continued improvements on this process, starting with getting the Position Request form in BP Logix electronic workflow. 

Office managers have expressed frustration with viewing appropriate transaction level detail especially for pcards.

Ticket submitted to system office (#194061 3/3/25 asking for additions to transaction detail screen (show expense report #) and on expense report detail (show memo or receipt comments).  Response received mid April, indicating that they are reviewing for change request.  Thank you to Nayoung Kim and Quina Davis for providing detailed feedback that enabled this request.

Budget transaction detail have very limited detailed provided.

On 2/4/2025 we submitted a ticket to System Office (#189559) suggesting that they add date, description (of budget load/transfer) and budget amendment ID# to the transaction detail so it is easier to understand the activity, both for Financial Management and for Cost Center Managers and Workday Finance Analysts.  No response as of April 24, 2025.

FY24 Results / Reporting from Workday

Uncertain if Workday 'last year' has been tied out to ISRS FY24

ISRS/Web Accounting is the system of record for FY24 results

• ISRS contains post-July 1 FY24 balances (for txn detail, you may need to go to Workday)
• System Office communicated that the Workday FY24 conversion into ISRS was completed 9/26/24

For now, disregard Workday 'Last Year' (FY24) columns on reports.  There is data there, but we have received no communication/confirmation about its accuracy.  Once we are in Fy26, the last year columns can be used.

FY25 data in ISRS

ISRS has

• all student payroll, and other student-related financial activity. 
• initial budget loads (but not budget transfers/amendments). 

All ISRS financial data interfaces to Workday for FY25 except for student payroll encumbrances.  

Revenue budget load practices + budget loads for other funds

Actual

Reporting

In the past, revenue budgets were not loaded, so tracking budget vs actual on revenue was based on spreadsheets.  

Revenue budgeting/loads may aid in consistent reporting, budget target setting and quality assurance.  Research, data changes, and process changes will need to be worked through for a more holistic and consistent approach. 

Related work in progress:

• Tuition table updates to give us visibility to differential tuition actuals, which will aid in reporting and budgeting and carry forward in the future
• Process for Personal Property Course Fee  revenue/expense budget and true up process to be used for Fy26
  • Budget assumptions estimated PPSC course revenue and gave Academic affairs the related nonpersonnel expense budget, but there is not sufficient detail or mechanism to ensure the budget increases or decreases based on actual enrollment in the PPSC course.
• Once FY26 budget is final -- recap details and assumptions around revenue and the effect it has on expense budgets.
  • share recap and assumptions with cost center managers + with FM staff so they understand the impacts on their work (i.e. what revenue is eligible to be converted to additional nonpersonnel budget vs what is already included in the budget assumptions)

This is a Metro State effort not dependent on System Office.