Transcript No Slide Title

Understanding Funds, Attributes
and New Accounts
A discussion of fund accounting, the various fund groups,
account structure and logic, account attributes including
financial classifications and source of funds, procedures for
opening an account and account flags
University of Miami
Controller’s Office
Updated March 2013
OBJECTIVES
Instruct departmental administrators on how to set up and manage their
accounts
Help participants better understand the budgetary and fiduciary
responsibilities of funds
Understand the basic structure and classification of accounts under Fund
Accounting Principles
Demonstrate an understanding of the source of funds and functionality of
accounts
Perform the necessary steps to successfully open new accounts at the
University
Understand external/internal restrictions on using different account types
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Fund Accounting
Allows University
administrators to manage
resources based on the
different types of revenues
received by the University
Internal University reports are
on a fund accounting basis
(Report 90s are based on fund
accounting)
External financial statements
are based on the accrual basis
of accounting
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Definition Of A Fund
A fund is:
• An accounting entity with a self-balancing set of
accounts used to record
• Assets
• Liabilities
• A fund balance
• Changes in fund balance (revenues and expenses)
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Various Fund Groups
Loan
Medical
Unrestricted
General
Gables, Marine
and South
Campus
Endowment
Designated
University of
Miami Hospitals
and Clinics
Current Funds
Anne Bates Leach
Eye Hospital
Non-Current
Funds
Annuity
Sponsored
Plant
Restricted
Gift
Agency
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Account Numbers
Fund
#
Account • Table shows fund
information and
Structure
account structure
and Logic
Link to
Funds
• SL account links to
1st digit of fund
• GL account 2nd digit
links to 1st digit of
fund
Fund Description
10
21
22
Unrestricted
Designated –Medical
Designated – Other
(Gables/RSMAS, South)
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Designated – UMHC
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30
40
50
60
70
81
Designated – ABLEH
Restricted - Sponsored
Restricted - Gift
Loan
Endowment
Annuity
Plant – Unexpended
Plant – Renewals &
Replacements
Plant – Retirement of
Indebtedness
Plant – Investment in Plant
82
83
84
90
Subsidiary ledger
(Revenues and
Expenses)
General Ledger
(Assets, Liabilities, and
Fund Balance)
Account Number 1st
digit
SL
Account Number
2nd digit
G/L
01xxxx
02xxxx
02xxxx
1xxxxx
3xxxxx
4xxxxx
5xxxxx other than
accounts that start
with 500xxx
500xxx
6xxxxx
7xxxxx
28xxxx
26xxxx
24xxxx
8xxxxx
02xxxx other than
025000
8xxxxx
08xxxx
8xxxxx
08xxxx
8xxxxx
9xxxxx
08xxxx
09xxxx
Agency
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025000
03xxxx
04xxxx
05xxxx
06xxxx
07xxxx
08xxxx
Fund Group 10
Unrestricted - General
Activities recorded in fund group
Year-end balancing procedures –
all accounts codes as unrestricted
are pooled together for a school or
department
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Fund Group 2x
Designated
Activities captured in fund groups
Year end balancing of funds –
pooled together
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Distinction Between Asset Types “7R & 7U”
The asset type attribute
is coded on “7” accounts
as either R or U
• 7R - Restricted
• 7U - Designated
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Fund Group 30 & 40
Restricted
Sponsored/Non-sponsored
Sponsored
• Activities captured in fund
• Year end balancing-stands
on its own
Gift
• Activities captured in fund
• Year end balancing-stands
on its own
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Fund Group 50
Loan Fund
This fund group is used to account for resources available for
loans to students
The funding sources for loan funds come primarily from
government and donors
Loan funds are revolving funds. Thus as students repay loans,
the repayment is placed back in the account. As a result,
funds are again available to issue loans to other students
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Fund Group 60 And 70
Endowment & Annuity
Endowment
and Similar
Funds
• Permanent
• Term
• Quasi
Annuity and
Life Income
Funds
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Fund Group 8x
Plant Funds
Activities
captured
• Construction and
renovation
• Departmental
equipment and
surplus reserves
Year end • 81 – Plant
Unexpended
balancing
procedures • 82 – Plant - Renewals
& Replacements
for funds
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Fund Group 90
Agencies
Consists of resources held by the
University as custodian or fiscal agent
for others such as student organizations.
Restrictions:
Salaries may not be
charged
Transfers may not be
reflected
May not use UM’s
federal or state sales
tax ID #s
Year end balancing procedures
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What Is An Account?
A functional unit established for a specific
purpose with one individual having
primary responsibility for it
This functional unit is a collection of
records which contain dollar data and
descriptive data called attributes
Account Attribute screens are found in
DMAS and FRS
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Account Attributes
Account Responsible Person
Type of fund (fund #)
Purpose of Account
Start/End date of account
Account title
Department – Sub Dept. Number
Asset type-restricted/unrestricted
Tax purpose
Financial Class
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Sub-Object Codes
A listing and explanation is found in General Accounting Section of Controller’s web site
Revenues
0xxx
• Balance Forward
0011
• Conferences 006x
• Student Union Fees
0091
• Corporate Gifts0231
• Foundation Gifts
0232
• Private Gifts 0233
• Auxiliary
07xx
Expenditures
• Direct Costs 1xxx-7xxx
• Personnel Comp
1xxx
• Fringe Benefits
2xxx
• Operations 3xxx
4xxx
5xxx
• Capital
6xxx
• Transfers
7xxx
• Indirect Costs 8xxx
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Example Of Code Usage
Account #
139759
Object Code
1521
• Salary expense transaction (recorded in the subsidiary ledger)
019759
1521
• Prepaid asset transaction (recorded in the general ledger)
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Classification Structures
Fund
• Sub-fund
Financial Class
Organizational
Class
Tax Purpose
Campus
Asset Type
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Financial Class Structure
Financial Classification
• Level I
• Educational and General
• Auxiliary Enterprises
• Patient Care
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Source Of Funds
The source of
funds establishes
where the
resources are
being obtained
from to fund the
account being
established. The
following are
examples of
sources
• Program Revenues
• Registration Fees
• Private, Corporate and
Foundation Gifts
• Special Academic
Programs
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Determining What Account To Create
• What is the funding
When
source?
creating • What is the account
an
going to be used for?
account • Is the funding
you need
unrestricted,
restricted,
to ask
designated or other?
yourself
• What is the financial
the
following: classification of the
account?
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Account Create Forms
You can find the Account
Creation forms for these
type of accounts on the
Controller’s Office Forms
page:
Unrestricted
Restricted
Designated
Plant
Agency
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Account Flags
Frozen
Flag
• Transactions will not post to
the account unless there is
an outstanding open
commitment for the item.
• All other transactions will
default to a suspense
account for further research
Delete
Flag
• Delete 1 Status – all open
commitments have cleared
• Delete 2 Status – at the end
of the 2nd fiscal year the
account will be purged and
can only be viewed in DMAS
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Summary
What are
unrestricted,
restricted,
designated or other
type accounts
What are the budget
implications based
on the type of
account I have set
up
What is the funding
source and account
purpose
Where do I go to
find help with the
account create
process
Call the Controller’s Office
at 305-284-4244 if you have any
follow up questions
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