Training Certification Program For Senior Financial Administrators Session I

January 2005

Agenda

2

SECTION

Introduction Goals and Objectives Ethics

Break

Higher Education / Not-for-Profits Fundamentals of Accounting (I)

Break

Fundamentals of Accounting (II) Summary and Conclusion / Questions

TOTAL TIME

20 Mins 20 Mins 30 Mins

10 Mins

60 Mins 30 Mins

10 Mins

30 Mins 30 Mins

240 Mins

Goals and Objectives

• • • • • • CUMC is growing – more people and $’s to manage Highly regulated Need for formal training Team building Reinforcement of CU Policies and Procedures Professional development 3

Steering Committee Members

• Michael O’Connor, Ed.D.

• David M. Cohen • Gary Herrmann • Galene Kessin • Michael McGuire • Lisa Franciosa

Goals and Objectives

• • Strengthen areas that are weak: – Reputation risk – Minimize and risks – Validate goal performance – Raise professional standards Administrator’s role – Dual responsibility to CU and Chair • Strengthen financial controls 5

Columbia Organization Chart: Lines of Reporting

PRESIDENT Board of Trustees Ira Lamster

Dean, School of Dental and Oral Surgery

Allan Rosenfield

Dean, Mailman School of Public Health

Mary Mundinger

Dean, School of Nursing

Gerald D. Fischbach

Executive Vice President for Health and Biomedical Sciences Dean of the Faculty of Medicine Department Chairs Institute & Center Directors

Joanna Rubinstein Marilyn Castaldi

Senior Associate Dean for Institutional and Global Initiatives Deputy Vice President for Communications

Edward Shortliffe

Deputy Vice President and Senior Associate Dean for Information Technology

Kevin Kirby

Chief Operating Officer and Vice President and Senior Associate Dean for Administration

Harvey Colten

Vice President and Senior Associate Dean for Academic Affairs

Susan Stalcup Michael O’Connor Eric Rose

Interim Vice President for Development Vice President and Senior Associate Dean for Budget and Finance Associate Dean For Translational Research

Joseph Tenenbaum

Senior Associate Dean for Clinical Affairs

Kathleen O’Donnell

Vice President and Senior Associate Dean for Clinical Administration 6

CUMC: General Background

• • • • • • • $1.2 billion budget One-half of total University money and personnel 2,700 full-time and 4,000 part-time faculty (including affiliates); 4000 non faculty staff 2,900 students in four schools Sponsored research grants of $401 million Faculty practice revenues of $382 million Endowment of $947 million; 112 endowed chairs 7

CUMC: 2004-2005 Projected Revenues School

Dental Medicine Nursing Public Health

Total

8 $ 43 M 985 M 18 M 150 M

$ 1.2 Billion

CUMC: 2003-2004 Source of Operating Funds

Total = 1.2 Billion ICR 9% Tuition 4% Other 9% Affiliations 15% Clinical Practice 37% Sponsored Awards 26%

9 Note : Other includes gifts, endowment, patent and miscellaneous revenues

Introduction

10 • • • Overview of training program Reasons for conducting training Requirements for certification – Complete 40 hours – Participate – Complete evaluation – Case studies – Lab exercises

List Of Training Seminars

1: Intro Higher Ed, Fundamentals of Accounting 2: Fundamentals of Budgeting/ Monitoring Budget Performance 3: Financial Reporting 4: Revenue Cycle 5: Gifts, Pledges, Endowments 6: Cost Recoveries for Higher Education, OMB Circular A-21 7: Grant Compliance, OMB Circulars A-110 and A-133 8: Cash Management and Payroll Accounting 9: Capstone Summary and Conclusions 11

Dealing With Ethical Issues

• •

It’s a New Environment

Since the enactment of the Sarbanes-Oxley Act of 2002, there has been unprecedented focus on the role of board members and officers in ensuring their institutions are carrying out their missions faithfully, without extravagance, waste or the appearance of self-dealing.

Although Sarbanes does not apply directly to college, universities, and other not-for-profit educational institutions, its influence is being felt in the education sector. Many institutions are voluntarily adopting some of the principles of Sarbanes.

12

Sarbanes-Oxley Why Should We Care?

13 – Technically, Sarbanes is not applicable to public interest entities However: – Sarbanes’ objectives are compelling : – • • • • Enhanced integrity of senior management Enhanced integrity of financial reporting Enhanced role of Board oversight Enhanced effectiveness of internal controls There are increased public entity stakeholder expectations: • Regulators and state governments • Board members from corporate world • • Donors Service buyers and patrons

Sarbanes-Oxley Why Should We Care?

Action within the Education/Non-profit community: • • • There is an emerging emphasis on “the spirit of Sarbanes” Donors and grantors expect: −Management integrity −Use of funds in accordance with restrictions −Active, effective Board oversight −Appropriate, understandable financial reporting Buyers and patrons expect −Appropriate use of public money −Impeccable ethical behavior −Effective management in light of price increases 14

Sarbanes-Oxley Federal Non-Profit Initiatives

• If enacted, it would: − Provide that the CEO/CFO certify annual report − − If gross revenues < $1 million/assets < $3 million, then verify that report “fairly presents” the financial condition If gross revenues > $1 million/assets > $3 million, then verify “fairly presents” and a) no false statements, b) controls are adequate, c) deficiencies disclosed to board/auditors − Encourage NFPs, especially if large, to have audit committees that: − Are independent, oversee auditor, establish system for complaints 15 − Govern the activities of interested directors and officers (i.e., with regards to related party transactions)

Dealing With Ethical Issues

NACUBO Recommends:

16 Senior management implement a code of conduct that should: – Inventory, assess and update as needed existing codes of conduct, including conflict of interest policies – – – – – – Establish appropriate codes if they do not already exist Require sign off by senior leaders acknowledging the code Be comprehensive and clear Be easy to access, understand, and implement Be communicated broadly Include a confidential mechanism to report code violations

Dealing With Ethical Issues

Code of Conduct Promotes:

• • • • • Honest, ethical conduct Full, fair, accurate, timely, and understandable disclosure in reports and documents Compliance with applicable governmental laws, rules and regulations Prompt internal reporting of code violations to a designated person or place Accountability for adherence to the code 17

Dealing With Ethical Issues

18 •

“If You See Something, Say Something”

•

Examples:

Signing onto University System and approving on behalf of someone else Example: FFE, APCAR, and RASCAL Nepotism – – – – No direct reporting relationship Reporting relationship must be disclosed No input into compensation of another Appearance of impropriety

Dealing With Ethical Issues

• • • • • • Being asked to submit reports to external sponsors or internally where you know information is inaccurate Misuse/inappropriate use of University resources Using University assets for personal gain Charging personal side trips made on business trips Violating Conflict of Interest Policy (https://www.rascal.columbia.edu/coi/coiframe.html) Use of restricted funds for other purposes 19

Dealing With Ethical Issues

Reporting Misconduct: Barriers to Reporting The National Business Ethics 2003 survey by the Ethics Resource Center found that while there had been overall increase in employee reporting of misconduct, the majority of employees (40% - 70%) stated they would not report misconduct.

20 • • • • • There are many reasons for non-reporting, including Loyalty to group or department Fear of retaliation Concern that leadership will not act to correct misconduct Believing that co-workers would not report Not knowing where to report

Dealing With Ethical Issues

21 • Reporting Misconduct: Barriers to Reporting Improper practices that are not corrected early can escalate into more destructive situations • • • Consequences of escalation include damage to individuals and University image; loss of funds, property, physical security and job security; delays in research progress, disrespect for ethical values A culture of non-reporting may imply distrust in leadership, cynicism about University ethics, lack of employee identification with institutional goals, and low employee morale Demoralization among employees may result in a culture of “permission” to cut corners and participate in impropriety, values confusion, diminished performance, increased turnover and instability

Dealing With Ethical Issues

Conflict of Interest :

Individuals to call if there is an ethical issue: Gerald Fischbach Michael O’Connor Marsha Wagner Galene Kessin Alan Brinkley Patricia Catapano 305-2752 305-3719 854-1234 305-3671 854-2403 854-4521 Executive VP of CUMC CUMC Budget and Finance Ombuds Officer Human Resources Provost Office of General Counsel 22

BREAK

SESSION 1

Part 1: Intro to Higher Education Part 2: Fundamentals of Accounting

Session Objectives

• • Identify characteristics and types of not-for-profit organizations, including colleges and universities Understand the following: – Differences between not-for-profits and commercial entities – Fiduciary responsibilities of not-for-profit organizations – Higher Education market segment and its challenges – Basic principles of fund accounting – Net asset classifications per SFAS 116 and 117 and be able to relate fund accounting to them 25

PART 1 Higher Education / NFP Industry Overview

What is a Not-for-Profit Organization?

A 501 C(3) entity possesses the following characteristics: • Contributions of significant amounts from resource providers who do not expect commensurate return; existence heavily dependent on private and public support • Operating purposes are other than to provide goods or services at a profit; typically serves a social, moral, or ethical purpose which is usually reflected in the mission statement • Absence of ownership interests • Tax-exempt status 27

What is a Not-for-Profit Organization?

•

Hospitals and medical research organizations.

A hospital is an organization whose principal purpose or function is to provide hospital or medical care or either medical education or medical research. A rehabilitation institution, outpatient clinic, or community mental health or drug treatment center may qualify as a hospital if its principal purpose or function is providing hospital or medical care. If the accommodations of an organization qualify as being part of a skilled nursing facility, that organization may qualify as a hospital if its principal purpose or function is providing hospital or medical care. A cooperative hospital service organization that meets the requirements of section 501(e) will qualify as a hospital. 28

What is a Not-for-Profit Organization?

•

Hospitals and medical research organizations.

The term hospital does not include convalescent homes, homes for children or the aged, or institutions whose principal purpose or function is to train handicapped individuals to pursue a vocation. An organization that mainly provides medical education or medical research will not be considered a hospital, unless it is also actively engaged in providing medical or hospital care to patients on its premises or in its facilities, on an in-patient or out-patient basis, as an integral part of its medical education or medical research functions. •

Medical research organization.

A medical research organization must be directly engaged in the continuous active conduct of medical research in conjunction with a hospital, and that activity must be the organization's principal purpose or function. 29

Not-for-Profit vs. Commercial Organizations

Not-for-Profit Organizations: • Resources received without expected repayment • Operate to fulfill a need, purpose or cause • Surplus or deficit • CU: “Educate, Discover, Care, and Lead” Commercial Enterprises: • Resources received with possible repayment or economic benefit • Operates to make a profit and provide returns to shareholders • Net income or net loss • Provide service to make money more  30

Not-for-Profit vs. Commercial Organizations

Not-for-Profit Organizations: • Absence of defined ownership interest • Use “Net Asset” classification • May receive donated assets and services • Tax-exempt status granted • Board of Trustees - fiduciary responsibility to society, community, and clients 31 Commercial Enterprises: • Have defined ownership interest (i.e., stock) • Use “Equity” classification • Usually there are no donations to commercial enterprises • Taxable entities • Board of Directors - fiduciary responsibility to shareholders

Fund Balance Accounting: Definitions

Endowment – fund grouping includes three types of funds classified as “endowment and similar” funds:

1.

True Endowment –

donor has stipulated that the principal is to be kept intact in perpetuity and only the income therefrom can be expended either for general purposes or for a restricted purpose. Revenue and net assets of these funds are reported in the permanently

2.

3.

restricted class of net assets.

Term Endowment –

donor has provided that upon the passage of time or the happening of a specific event, the endowment principal can then be utilized either for a specific purpose or for the general operation of the institution. Revenue and net assets of these funds are reported in the temporary restricted class of net assets.

Quasi-Endowment –

the board, as distinct from the donor, has set aside unrestricted amounts to be used as endowment at least for some time. Revenue and net assets of these funds are reported in the unrestricted class of net assets.

32

Fund Balance Accounting: Definitions

Gifts: • • • •

Unrestricted Contributions Current Restricted Contributions –

contributions that can be used to meet the current expenses of the organization, although restricted to use for some specific purpose, or during or after some specified time

Investment Securities

– contributions in the form of stocks and bonds

Gifts-In-Kind

• • – unrestricted or temporarily restricted Fixed Assets – land, building, and equipment Museum Collections Pledges (promise to give): A promise to contribute to an organization at a later date or in installment payments. May or may not be legally enforceable. 33

Fund Balance Accounting: Definitions

• • • • Statement of Financial Position (Balance Sheet) Reports the assets, liabilities and net assets of the organization Is presented on the accrual basis of accounting The assets and liabilities are grouped into homogeneous groups such as – Cash and Cash equivalents – – – Accounts and notes receivable Accrued employee benefits Short and long term liabilities Each FAS Account has a balance sheet and revenues and expenses 34

Fund Balance Accounting Balance Sheet

Statement of Financial Position (Balance Sheet)

Six Basic Totals Required: NFP Organization Balance Sheet XX/XX/XX

Total Assets XXX Total Liabilities XXX Net Assets: Unrestricted Temporarily Restricted Permanently Restricted Total Net Assets XXX XXX XXX XXX 35

Fund Balance Accounting Balance Sheet

Statement of Financial Position (Balance Sheet)

NFP Organization Balance Sheet XX/XX/XX

Cash XXX

Other Information Required:

•Classification of Assets and Liabilities •Liquidity Information •Restrictions on Assets and Net Assets Total Assets Accounts Payable Total Liabilities XXX XXX XXX Total Net Assets XXX 36

Fund Balance Accounting Balance Sheet

Each fund has its own assets, liabilities, net assets (fund balance), revenues, and expenses.

37 Total entity

A = L + N.A.

R - E = N.A.

Plant fund

A = L + N.A.

R - E = N.A.

Operating fund

A = L + N.A.

R - E + N.A.

Endowment fund

A = L + N.A.

R - E = N.A.

Fund Balance Accounting: Balance Sheet

Example: Balance Sheet 38

Fund Balance Accounting: Statement of Activities

• • • • Statement of Activities (Revenue/Expense statement) Summarizes all of the activity of the organization for the entire period. Depicts how the resources of the organization are used in providing programs or services in order to meet its mission – – Revenues (Sources) Expenses (Uses) Reported by natural or functional groupings Reports revenue and expenses at gross amount and gains and losses at net amount 39

Fund Balance Accounting: Statement of Activities

Example: Revenue and Expenses 40

Fund Balance Accounting: Statement of Cash Flows

• • Statement of Cash Flows: The statement of cash flows analyzes the movement of actual cash The cash flow statement indicates: - The organization’s ability to meet its obligations, and - The reasons for the differences between the total changes in net assets, and the receipts and payments of cash during the period.

41

Fund Balance Accounting: Statement of Cash Flows (Cont.)

The statement of cash flows classifies receipts and payments of cash in three categories: 1.

2.

3.

42 Operating – All amounts not defined as investing or financing – – Investing – Making or collecting loans to other entities Acquisition or disposal of property, plant and equipment Sales or purchases of marketable securities Financing – – – – Borrowing or repaying amounts borrowed by the organization Proceeds from contributions received for long-term purposes Receipt or payment of annuity obligations Deposits with bond trustees

Fund Balance Accounting: Cash Flow Statement

Example: Cash Flow Statement 43

Net Assets Classification •Permanently Restricted

•Resources subject to donor-imposed restrictions requiring that the original contribution be retained inviolate and in perpetuity but permit the use of investments earnings for general or specific purposes. The primary component of these assets is true endowments whose appreciation is either restricted to specific uses, such as support for financial aid or a faculty chair, or else is available for general university purposes.

•

Example

: Endowment Principal accounted in: General Ledger 0-60000 through 0-69999 44

Net Assets Classification •Temporarily Restricted

•Resources subject to donor-imposed restrictions that will be met by actions of the University or the passage of time. These net assets are primarily comprised of gifts in the form of cash or pledges for specific purposes, such as financial aid, capital constriction or research activities, and the unspent net realized and unrealized gains and net reinvested income generated by permanently restricted assets subject to donor-imposed restrictions on their use.

•

Example

: Gift Accounts accounted in: General Ledger 0-42000 through 0-44999 -Once expired, moved to Unrestricted Net Assets 45

Net Assets Classification •Unrestricted

•Resources which are not subject to donor-imposed restrictions.

•

Example

: Ledger 2 - Unrestricted budget Ledger 4 - Internally restricted Someone in department decides how to spend through budget process 46

Reporting Considerations

•Similarity to Profit-Oriented Reporting •A complete set of Financial Statements are required Statement of financial position (balance sheet) •Statement of activities (revenue / expense account) •Statement of cash flows •Accompanying notes 47

Reporting Considerations Financial Report

http://www.columbia.edu/cu/finance/ 48

Role of DA: Stewardship

•Safeguard Assets •Net assets are an asset of the University •Deans, Chairmen and DA’s are custodians •Fiduciary responsibility •Agency relationship •Monitor positive fund balance and transactions •Review transactions •T&E expenses on DARTS •Acknowledge donors money, how money should be spent, reporting to donors •Reviewing and reconciling monthly reports on a timely basis •Making corrections as needed 49

Time Value of Money

•Cost of doing business when account is in overdraft •Overdrafts are funded by the University •Not collected AR: forfeited funds •Aggravation factor / Time waster 50

PART 2 Fundamentals of Accounting

Cash vs. Accrual Accounting

CASH

 Revenues are recognized when cash is received and deposited and expenses are recorded in the accounting period when bills are paid

ACCRUAL

 The most commonly used accounting method, which reports income when earned and expenses when incurred Receivables – when earning process is complete (since 1996 in terms of faculty practice) Liabilities – when there is a legal claim against assets.

(Includes Physician Incentive payments)

MODIFIED ACCRUAL

 Revenue and Expenditures handled daily on a cash basis, but converted to accrual with periodic adjustments 52

Cash vs. Accrual Accounting

Balance Sheet Example 53

Cash vs. Accrual Accounting

54 •Simplicity

CASH BASIS ADVANTAGES ACCRUAL BASIS

•Accurately presents financial picture of the organization A simple checkbook may be all that is needed to keep the financial records of an organization, provided a complete description is recorded in the checkbook stubs. This basis is more meaningful for organizations that have substantial unpaid bills or uncollected income at the end of each period and these amounts vary from period to period.

Accrual basis adds a level of complexity that is unnecessary in some organizations The cash basis would provide great difficulty in knowing exactly where the organization stood

Cash Example

Deposits •Faculty Practice Patient Receipts •Gifts Receipts •Employee Reimbursements 55 •Invoice Payments •Payroll Disbursements

Accrual Example

56 Departmental Accruals •AR – Patient invoices in IDX •AR – hospital agreements (NYPH, MD, Clinical Assess) •AP – NYPH and other affiliates •AP – MD incentives and on call payment •AP – Clinical assessment •AR/AP- Clinical Trials •AR/AP- Nongovernment grants

Modified Accrual Example

Grant Accounting •Revenue is recognized, up to the budgeted amount, when expenditures are incurred •Revenues equals Expenses Endowment Income • Income Distributed Quarterly • Principal adjusted at year end to reflect actual 57

BREAK

Expectations of Managing Cash

•Reconciliation of lockboxes •Timely Deposit •Safeguard / custody (within 24hrs needs to be deposited) •Reconcile to FAS (DARTS) 59

Budget, Actuals, and Encumbrances

Budget

 A budget is a plan of action. It represents the organization’s blueprint for the coming months, or years, expressed in monetary terms. An organization must have specific goals before preparing a budget.

Actuals

 Transactions which represent actual revenues and expenditures example: payrolls, supplies, equipment, etc

Encumbrances

 Represents commitments based on SAF’s project salary allocation example: PO’s in Purchasing system

Balance Available

 Budget – Actuals – Encumbrances = Budget Available 60

CUMC Fund Accounting

Accounts in FAS •General Ledger (“0” Ledger): •0-XXXXX-XXXX •Revenues/Expenses or Subsidiary Ledgers: •1-XXXXX-XXXX •2-XXXXX-XXXX ….

•9-XXXXX-XXXX

Remember

– Every Revenue/Expense Ledger must be related to a General Ledger (“0” Ledger) account 61

CUMC Fund Accounting

Accounts in FAS General Ledger Structure: Assets, Liabilities, Fund Balances 0-XXXXX-XXXX Account Control Account Identification Ledger Example of General Ledger Account: 0-44320-4220 62

CUMC Fund Accounting

Accounts in FAS Subsidiary Ledger Structure: Assets, Liabilities, Fund Balances 1-XXXXX-XXXX through 9-XXXXX-XXXX Subcode Account Identification Ledger Example of Revenue/Expense Account: 1-60114-0790 63

CUMC Fund Accounting

1-XXXXX 2-XXXXX 3-XXXXX Subsidiary Ledgers (Revenues/Expenses)

Current Unrestricted Revenues

include unrestricted gifts and other unrestricted resources earned such as student tuition and fees, Indirect Cost Recovery, etc.

Current Unrestricted Expenditures

include economic resources which are expendable for any purpose in performing the primary objectives of the institution, i.e., instruction, research, and public service, and which have not been designated by outside donors or the governing board for other purposes.

Auxiliary Enterprises and Other Activities

include revenues and expenditures for faculty practice, residence halls, and dining services 64

CUMC Fund Accounting

4-XXXXX 5-XXXXX 6-XXXXX Subsidiary Ledgers (Revenues/Expenses)

Internally Restricted (Designated)

include revenues and expenditures of funds, expendable for operating purposes but restricted by the University’s governing boards as to the specific purpose for which they may be expended, i.e., discretionary funds.

Current Restricted Expenditures – Government Grants and Contracts

include grants from governmental sources for research, training, or other sponsored programs.

Current Restricted Expenditures – Other

include private gifts and endowment income restricted to a school or a department or restricted for specific operating purposes such as scholarship grants, professorships, purchase of library books, etc.

65

CUMC Fund Accounting

Subsidiary Ledgers (Revenues/Expenses) continued 7-XXXXX 8-XXXXX

Plant Fund / Clinical Trials Expenditures

: Plant funds are used for the acquisition, renewal and replacement, and retirement of indebtedness on physical properties for institutional purposes. Clinical trials are used for the study in human subjects involving a therapeutic or diagnostic intervention with a drug, device, or health care product.

Not Assigned

9-XXXXX

Agency Funds

include revenues and expenditures of funds held by the institution as custodian or fiscal agent for others such as student organizations, individual students, or faculty members.

66

CUMC Fund Accounting

Prime and Scope Accounts

 General Ledger accounts may have more than one sub ledger account. The first sub-ledger account is called “prime” and the others are called “scope” accounts.

Map Code

 Every sub-ledger account carries a “map code” which tells the reader to which General ledger account it belongs. The map code is simply the General Ledger account number with out the leading zero number.

Note: Sub-ledger accounts do not have to be in the same department as the corresponding general ledger. This allows one department to hold the funds (General Ledger account) and allow other departments to spend some of these funds (Subsidiary Ledger account).

67

CUMC Fund Accounting

Unrestricted

Subsidiary – General Ledger Relationship Revenue Expenditure Sub Ledger 1-XXXXX 2-XXXXX General Ledger 0-10000 through 0-10099 68 Auxiliary Enterprises Faculty Practice 3-XXXXX Internally Restricted (Designated) 3-6XXXX through 0-16500 through Extension (Ledger 4H on FFE) 3-69999 0-16999 3-7XXXX 0-16000 through 0-16149 0-17XXX

CUMC Fund Accounting

Subsidiary – General Ledger Relationship

Unrestricted (continued)

Sub Ledger General Ledger Internally Restricted (Designated) 4-XXXXX 0-18000 through 0-19999 Internally Restricted (Designated) 4-55000 through 0-16150 through Extension (ledger 4H on FFE) 4-55599 0-16999 69

CUMC Fund Accounting

Restricted

Subsidiary – General Ledger Relationship Gov't Grants and Contracts Private Grants (Ledger 6A) Private Grants (Ledger 6A) Prime Scope Prime Scope Prime Scope Sub Ledger 5-20000 through 5-39999 General Ledger 0-20000 through 0-39999 5-40000 through Mapcode 2XXXX and 5-99999 3XXXX 6-40000 through 6-41999 6-5XXXX 0-40000 through 0-41999 Mapcode 40XXX and 41XXX 7-78100 through 7-78999 0-78100 through 0-78999 7-88200 through Mapcode 0-78100 through 7-88999 0-78999 70

CUMC Fund Accounting

Subsidiary – General Ledger Relationship

Restricted (continued)

Sub Ledger General Ledger Private Gifts (Ledger 6B) Prime Scope Scope 6-42000 through 6-44999 6-6XXXX 6-7XXXX 0-42000 through 0-44999 Mapcode 42XXX Mapcode 43XXX & 44XXX Endowment Income (Ledger 6C) Prime Scope Scope Student Loan Funds Endowment Principal 71 6-46000 through 6-49999 6-8XXXX 6-9XXX 0-46000 through 0-49999 Mapcode 0-46XXXX through 48XXXX Mapcode 49XXXX NONE NONE 0-5XXXX 0-60000 through 0-69999

CUMC Fund Accounting

Plant Funds

Subsidiary – General Ledger Relationship Sub Ledger General Ledger Prime 7-1000 through 7-72999 Scope 7-3XXXX Prime 7-75XXX Scope 7-5XXXX 0-71000 through 0-72999 Mapcode 71XXX & 72XXX 0-75XXX Mapcode 75XXX

Clinical Trials

Ledger 7A 7-79000 through 7-79999 Scope 7-88000 through 7-88199

Agency Funds

Prime 9-9XXXX Scope 9-1XXXX 72 0-79000 through 0-79999 Mapcode 79000 through 79999 0-9XXXX Mapcode 9XXXX

Clinical, Affiliates, Practice Plans

Clinical

 Doctors rendering services for patient care

Affiliates

 Other institutions where CUMC provides patient care or teaching

Practice Plans

 3 Types 1.

2.

Federated – Unified resources are pooled in one departmental plan Divisional – Divisions operate on padded basis and incurred department 3.

O/H charges Individual Practitioner Accounts – Autonomous self sufficient, need to cover costs individually 73

Questions

74

Summary

“Education is what remains after one has forgotten everything he learned in school.” Einstein 75

Course Evaluation

Please complete course evaluation form Session 1 76