Transcript An Account Code Overview - Abilene Christian University

An Account Code Overview
OR, WHAT DO ALL THESE CODES MEAN,
WHICH DO I USE, WHEN, AND WHY?
What on Earth is a FOAP?
 FOAP = Fund, Organization, Account and Program codes
 Example - 100000-41011-6370-60
 Fund = Accounting Entity
 Organization=Budget Units or Departments
 Account = Assets, Liabilities, Net Assets, Revenues,
Expenses & Transfers
 Program = Functional categories
 Activity = Optional code for use by departments
Fund Codes
 Funds are used for certain reporting entities. Such as
operating, restricted or endowment. The fund code is a six
digit number.
 Division of Funds
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1XXXXX – Operating Funds – these fund are the large operating
fund used by ACU which are tracked by budget
20XXXX – Internally Restricted or Designated – These funds are
used when an activity sponsored by ACU is self supporting and needs
to be tracked separately from the operating budget. An examples
would be summer camps
Fund Codes (Continued)
 Divisions of Funds (continued)
 21XXXX – Restricted funds – these funds are used to track the funds
from a donor restricted gift. No expenses should be paid from these
funds; they are only used to hold the gift until the funds need to be
moved into operations
 22XXXX – Restricted Scholarship Funds – these funds are used the
track the funds from a donor restricted scholarship gift.
 23XXXX – Endowment Earnings to be used for operations. The
balances from these funds are transferred to operational accounts as
needed
Fund Codes (Continued)
 Divisions of Funds (continued)
 3XXXXX – Grants and Contract Funds
 5XXXXX – Endowment Funds – Used by Investment Services to
track individual endowments given to the University
 7XXXXX – Capital Projects Funds – Used for large remodeling or
building projects
 8XXXX – Agency Funds – Used to track funds that do not belong to
ACU. Examples are student organizations and entities which ACU
serves as fiscal agent
Organization Codes
 Organization Codes are used to track revenues and
expenses for a particular department.
 The budget for a department is tracked using the
organization codes
Account Codes
 Accounts Codes are four digit codes used to track assets,
liabilities, net assets, revenues, expenses and Transfers
 Division of Account Codes
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1XXX – Assets
2XXX – Liabilities
3XXX – Net Assets
4XXX – Revenues
5XXX – Salaries and Benefit Expenses
6XXX – General Expenses
8XXX – Transfers
Account Codes
 Account codes are used by everyone on campus
and are generally not specific to a particular
department or activity. For example account code
5006 is used for exempt salaries for all
departments
 See next slide for how to view a listing of account
codes
Account Code Hierarchy
You can look at listing of account codes –
- Online using FTVACCT; searching
is available through query
- Print report FGRACTH; can limit by
using account type code
Basic Financial Statements
 Statement of Financial Position
(Balance Sheet)
Banner Query Form – FGITBSR
 Statement of Activity
(Income Statement)
Banner Query Form – FGIBDSR or
FGIBDST
Balance Sheet Elements
 Assets – Account Codes 1XXX
- Includes cash (1090);do not use
- “D” increases assets;
- “C” decreases assets
 Liabilities – Account Codes 2XXX
 Net Assets – Account Codes 3XXX
- Net income and expenses
- Warning: NEVER,EVER USE
Balance Sheet Principle
ASSETS = LIABILITIES + NET ASSETS
OR
1XXX = 2XXX + 3XXX
Income Statement Elements
 Revenue – Account Codes 4XXX
 Expenses – Account Codes 5XXX
(Salaries and Benefits)
 Expenses – Account Codes 6XXX
(Operating Expenses)
 Transfers – Account Codes 8XXX
Are There Any Special Situations
Or Rules I Need To Know?
YES!
Budget Pooling Account Codes
 Pooling accounts are 3 digits for operating
expenses – related only to budget dollars
Example: 630 – General Expenses
 Used to enter budget transactions
 Can not be used for actual transactions
 Offset budget code – 675; will be a credit(-)
Budget Pooling Hierarchy
Example of Pooling Hierarchy
630 – General Expenses (Budget Pool)
6380 – Postage
6382 – Printing
6386 – Professional Dues
6440 – Supplies - Office
Budget Pool Codes
Budget Pool Codes For Restricted Accounts
- Offset budget code is 675
- Will be a credit(-) for an expense
- Will be a debit(+) for a revenue
Transfer Entries (2 Types)
Type 1 - Formal Transfer Between Departments
(Transfer In/Transfer Out)
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Use code 8105 for transfers in & code 8205 for transfers
out - cannot mix with any other account codes
Transfer In = credit(-); Transfer Out = debit(+)
If a transfer from one fund is necessary to pay for an
expense in another fund that has not yet occurred (or has
not yet been recorded in the other fund), please make a
formal transfer as described above.
Transfer Entries
Type 2 – Transfers among same category of accounts
for different departments

Can be done among expense codes except those
between 6800 & 6899 (use as incoming and outgoing)

Can be done among revenue codes (use as incoming and
outgoing)

This method is useful when a transaction has already
occurred but was coded to the wrong account/fund.

NOTE – Academic depts transferring from restricted
accounts to operations must use codes 8105 and 8205
Payments To Other Departments
 Some departments charge other departments for
services provided (interdepartmental services
revenue).
 The department providing services often thinks of
transaction as revenue and tries to post to a revenue
code – 4XXX; this should be avoided.
 The transaction is actually another form of transfer
 The department providing services should have a
special expense account code – for example, 6962;
the department providing services should record the
transaction as a negative expense to this code.
Ways To Pay Other Depts.
Dept 1 - Dr. 8200 Correct
Dept 2 - Cr. 8100
Dept 1 - Dr. 8200 Incorrect
Dept 2 - Cr. 6353 (transfers out of balance)
Dept 1 - Dr. 6300 Correct
Dept 2 - Cr. 6370
Dept 1 - Dr. 6803 Incorrect
Dept 2 - Cr. 6370 (crossing budget pools)
Dept 1 - Dr. 4605 Correct
Dept 2 - Cr. 4540
Dept 1 - Dr. 6300 Incorrect
Dept 2 - Cr. 4540 (crossing rev & exp)
Dept 1 - Dr. 6899 Correct
Dept 2 - Cr. 6899
Revenue or Expense?
 Revenue must be recorded as revenue
(except in the limited instance noted earlier for
interdepartmental services revenue)
 Expense must be recorded as expense
 Revenue may not be moved to reduce expenses
 Budget adjustments should increase both revenue
and expense (net budget should not change)
Example of Budget Revision
Through
Revenue
In a single department:
Funds spent
Dr. 6300
Cr. Cash
Funds received
Dr. Cash
Cr. 4540
Budget revision Dr. 630
Cr. 4540
Through
8105
Dr. 6300
Cr. Cash
Dr. Cash
Cr. 8100
Dr. 630
Cr. 810
Scholarships
 Scholarships are expenses but not recorded in
the category of expenses
 Treated as a contra or reduction of revenues
 Special group of account codes –
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Unfunded – 4091(Gen); 4092(Athletics)
Funded – 4096(Gen); 4097(Athletics)
Funded – 4098(Grants)
Agency Accounts
 Identified by fund codes beginning with “8”, or
8XXXXX
 Do not generate income or expense for the
University
 All transactions recording in special group of liability
account codes-2480 through 2492
 Include student clubs, Pell, Perkins Loans
Questions or Comments?
 Call us anytime at ext. 2795
 Or email at [email protected]