Transcript This Week’s Workshops

Expense Account Codes
for: Admin Forum
April 5, 2012
Kim Seamans, Financial Reporting Accountant
[email protected], 7-5752
Laura Demski, Compliance Manager
[email protected], 7-5002
Agenda
•Introductions
•Understanding the Importance of
Using the Correct Accounts
•Resources Available
•Examples/FAQs
Introductions
Share with the group who you are and
what role you play:
•Name
•Department
•How long in position/with University
•What do you hope to learn?
Reporting –
External and
Internal
•Financial Statements
•Contributors (NCAA, Other Organizations)
•Regulators (Budget Preparation)
•Management
If expenses are not coded correctly,
decisions are made using bad information.
Revisions
•FY 2011 clean-up of Chart of Accounts,
including listing, descriptions, and FAQs
http://finance.uncc.edu/controllers-office/general-accounting
•Additional Q&A is being compiled, and
more examples will be added to the
descriptions
•Notification will be given when
significant updates are made.
Which
Account is
Right for Me?
•Avoid using “Other” or “Miscellaneous”
accounts for recurring expenses.
•Use the resources on the General
Accounting Website.
http://finance.uncc.edu/controllers-office/general-accounting
•If you do not see a description that fits your
situation, ask! We may need to revise an
account description, or create
a new one.
Which
Account is
Right for Me?
•Not an Exact Science
•No “Right” answers, just Better and more
consistent answers
•Goal is for consistency across campus
•Internal Audit will assess levels of
consistency
•Consult Reporting and Fixed Assets
Department for Account Code use
When
We Field
Questions
The resources we look to and the process that
occurs when you ask us an account question:
•Chart of Accounts for North Carolina Accounting
System (NCAS) (State-wide system).
Our Banner accounts are linked to these accounts.
•UNC System Chart of Accounts
http://www.northcarolina.edu/finance/chart_accounts/COAREVISED_11.21.2011.pdf
•Our internal documents
Food Costs
•Meals while Traveling go to Subsistence
•Food for Resale has its own account
•Contracted – catering (ex: Chartwells)
•Food Supplies account is for unprepared food and
beverages purchased for trainings, meetings, etc.
(ex: Bread, meats, cheese, etc.)
•Administrative Meals = Other
• not for resale
• non-travel
• prepared food
Equipment
•Capital vs. Non-capital
•Different Capitalization Thresholds
•$5,000 Equipment
•$100,000 Software
•Shipping, set-up, etc.
•Include in cost of item purchased.
•Allocate if multiple items purchased with
one shipping charge.
49er Mart
Purchases
•Make sure you include adequate DETAIL for
the reviewer to ensure correct accounting.
•Full description of item/services
•Itemized documentation of goods/services
•Reason/purpose for the purchase
•Don’t lump total costs if separable items and
services are being purchased.
Service vs.
Maintenance
•Maintenance Contracts/Service Agreements –
ongoing support for property. Usually there is an
agreement of 1 year or longer.
•Repair & Maintenance account – one-time or
short-term repairs to property.
•Both parts and labor should be coded to this
expense account.
•Contracted Services – contracts/agreements
other than maintenance (professional and
consultative personal services).
FAQ
Excerpts
4. I am purchasing software to be used exclusively in the
classroom. Should this be classified in account:
930250 Educational Supplies
944090 Other Educational Equip Non-Cap, or
942050 Software-PC/Printer Non-Cap?
The expense account used should describe what is being
purchased, not why.
• We want to record all software being purchased as “software,”
regardless of intended use, e.g., in a classroom or office.
• The fund number will indicate the function supported by the
expenditure, e.g., administrative, instructional, research.
Therefore, the best account to use here is
942050 Software PC/Printer Non-Cap.
FAQ
Excerpts
10.
What expenses should be recorded using account 930250
Educational Supplies?
For “purchase of materials and supplies used exclusively for instructional
and training purposes” (OSC 533720).
Only when a more specific account does not exist.
Examples:
•Exam/testing kits
•Educational videos to be watched in class
•Teacher’s edition books
Examples of items NOT to record to Educational Supplies:
•Paper (Office Supplies)
•Educational software (Capital Equipment - Software)
•Chemicals (Lab Supplies)
FAQ
Excerpts
28.
What is the difference between accounts 951760 and
920700?
Account 951760 Other Current Services:
- For administrative services
- That cannot be more specifically categorized
Account 920700 Other Contracted Services:
- For contracted services
- That cannot be more specifically categorized in other
Contracted Services accounts
Examples of
Inconsistencies
Item/Service
Purchased
Parking tokens
Account Code Used
Correct Account Code
920700, Other Contracted Svcs
925440, Non-Employee Transportation
© and
Publishing fees
Videotaping &
transmitting
Food supplies
928170, Printing/Binding/Duplicating
953100, Other Admin Costs
920700, Other Contracted Svcs
928130, Video Transmission Charges
951360, Administrative Meals
930200, Food Supplies
Chartwells
orders
Staples orders
930200, Food Supplies
922150, Contract Svc-Food Svc Event
930200, Food Supplies
Various
FSLs
932300, Non-Educ Misc Supplies
951410, Public Relations
Q&A
Open discussion for any other
expense account questions you have!
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