Transcript Fund Accounting Basics Using the General Ledger Presented by UHR Office of Learning and Development and Accounting Services Training and Outreach December 6, 2007

Fund Accounting Basics
Using the General Ledger
Presented by
UHR Office of Learning and Development
and
Accounting Services Training and Outreach
December 6, 2007
Why use the GL?
1. Record cash, check, or credit card deposits
2. View previously recorded transactions
3. Approve pending journals
4. Make adjustments to correct errors in GL
segment values
5. Run reports
6. Analyze assets, liabilities, and fund balance
(net assets)
Cash, Checks, Credit Card
Receipts
Grants
Accounting
Module
General
Ledger
Module
PTAEO
GL STRING
PTAEO vs. GL String
Project
Task
Award
Exp
Type
Org
These charging instructions are
NOT used in the General Ledger
Entity
Project
Fund
Source
Object
Code
Org
Future
What is Fund Accounting?
A method of segregating resources (i.e.,
funds) into categories to identify both the
source of funds and the use of funds
Why “Fund” Accounting
Resources are from a variety of sources
Must be used appropriately and not comingled
Requires unique identification and
reporting
Sources of Funds
Tuition
and Fees
Commonwealth
of Virginia
Patient
Services
Gifts
Grants
Sales and Services
Investment
Income
Uses of Funds
THE
UNIVERSITY
MISSION
Also…
Academic support
Institutional support
Student Services
Instruction
Research
Public service
Patient Services
Fund Groups
Current Funds
– Operations
Non-current Funds
– Loan programs
– Endowment activities
– Capital outlay activities
Agency Funds
– Custodial
Restricted? Unrestricted?
Restricted current funds
– Externally imposed stipulations on their use
Unrestricted current funds
– No external stipulations, but the University
may designate these funds for specific
purposes
Chart of Accounts
Used for classification of financial
transactions
Identifies the fund, function, and
organizational unit
Critical for institutional and managerial
reporting
Transaction Flow
Accounts
Receivable
Budgets
Deposits
(cash, checks,
credit cards)
Accounts
Payable
Purchasing
We are
HERE
Grants
Accounting
Summarize
PTAEO to
GL String
General
Ledger
Labor
Distribution
Recharge
Centers
ISIS / SSP
Data Storage and Reporting
Integrated
Systems
Data
(tables)
Data copied nightly
Oracle Standard Reports
- Inquiry on Account
- Find / Query
ODS =
Operational
Data
Store
(views)
Discoverer
- Pre-Defined Reports
- User-Defined Reports
Revenue Projects
and Awards
Award
Award
Award
Revenue
Project
Projects
Project
#1
Award
Project
#2
Budgets are established
when projects have been
funded
Project
#3
3 Basic Types of Projects
• Revenue
Revenue projects contain funds necessary to back up
award installments.
•
Expenditure
Expenditure projects are used for spending. They are
linked to and funded by an award.
•
Revenue & Expenditure
These projects contain funds that back up the award
installments that fund the SAME project for spending.
True or False?
1.
2.
3.
4.
5.
Fund Accounting is necessary because the
University’s funding comes from a variety of
sources.
Any funds designated for a specific purpose
are considered RESTRICTED funds.
I can view my investment asset balances in the
GL
Current Funds are used in support of
operational activities.
GL journal entries are made using my PTAEO.
How do I find my GL string?
General Ledger: GL String
Entity
Fund
Source
Project
many
awards
to
one fund
source
one
to
one
Project
Task
Award
Object
Code
many
exp types
to
one object
code
Exp
Type
Grants Accounting: PTAEO
Many awards to one entity
Org
one
to
one
Org
Future
Determining your GL String
IF your expenditure project is also
designated as a revenue project, you
can use your PTAEO to translate
or
Run the Discoverer report IS.FM_Award
Common Attributes
IS.FM_Award Common Attributes
GL String: Entity
Project
Fund
Source
Object
Code
Org
Future
Entity
(2 digit code)
Indicates the agency to whom the
funds belong
•Academic Division
•Medical Center
•UVa College at Wise
•Agency (Foundation or custodial
funds)
Entity Matrix
Local
State
Agency
Academic Division
10
20
80
Medical Center
15
25
85
UVa’s College At
Wise
Southwest Virginia
Regional Center
16
26
86
17
27
87
GL String: Project
Entity
Project
Fund
Source
(6 digit code)
Project must be
designated as a
REVENUE
project to receive
funds
Object
Code
Org
Future
GL String: Fund Source
Entity
Object
Code
Project
Org
Fund
Source
(4 digit code)
Indicates current or non-current,
restricted or unrestricted funds
Future
Fund Sources Often Used With Deposits
1100
Current Funds-Unrestricted: Private Gifts (Local)
1110
Current Funds-Unrestricted: Sales & Services of Educational Activities
(State)
1115
Current Funds-Unrestricted: Sales & Services of Educational Activities
(Local)
1120
Current Funds-Unrestricted: Sales & Services of Auxiliary Enterprises
(State)
1125
Current Funds-Unrestricted: Sales & Services of Auxiliary Enterprises
(Local)
1130
Current Funds-Unrestricted: Other Sources (State)
1140
Current Funds-Unrestricted: Other Sources Auxiliary (State)
1165
Current Funds-Unrestricted: Other Sources (Local)
2075
Current Funds-Restricted: Private Gifts (Local)
2090
Current Funds-Restricted: Endowment Income (Local)
GL String: Object Code
Entity
Project
Fund
Source
Org
Object
Code
(4 digit code)
Indicates type of
funds deposited
(income, gifts,
etc.)
Future
Object Codes Often Used With Deposits
4505
4510
4705
4710
4750
4805
4810
4820
4825
Gifts-Via Affiliated Foundations
Gifts-All Other
Sales & Services, Educational Activities
Conference Income
Other Sales & Services
Ticket Income
Royalty Income
Other Income
Subscription Income
GL String: Org
Entity
Project
Fund
Source
Object
Code
Future
Org
(5 digit code)
Org is the
organizational
unit receiving
funds
GL String: Future
Entity
Project
Fund
Source
Object
Code
Org
Future
Reserved
for future
use
Matching
Entity
Project
Fund
Org
Object
Future
Project
Task
Award
Expenditure Type
Org
Hints and Reminders
• There is no cash in your PTAEO, only authority
to spend.
• Remember to establish budgets after your
projects are funded so that you can spend.
• Don’t forget your GL Revenue Projects at
reconciliation time.
• Use your departments alias’ for deposits...less
chance for keystroke error.
• Know your approver!
Hints and Reminders (cont’d)
• Naming conventions for GL journals are very
important! Your batch name should look like
this:
XX-USERID JOURNAL DESCRIPTION
(XX=your departmental prefix)
• Log in to the GL Viewer responsibility to run
reports in the Integrated System (Oracle
Standard Reports, NOT Discoverer reports).
• It is GOOD to have a negative value on your
cash balance report…it means you have
revenue available.
• Call us if you have questions!
Resources
Integrated System Web Pages
Finance Links
http://www.virginia.edu/integratedsystem/financeLinks/index.h
tml
How do I?
http://www.virginia.edu/integratedsystem/howdoi/index.html#
Processing Funds
http://www.virginia.edu/finance/funds/Fr_RevenueProcess.ht
m
Discoverer reports
IS.GL_Revenue Project Relationships
IS.FM_Award Common Attributes
Resources (cont’d)
Call or email Accounting Services
http://www.virginia.edu/finance/genacct/acctsvcstaff.html
Call the ISDS Help Desk:
243-7550
Summary Checklist
Understand the General Ledger module and
how the PTAEO maps to the Chart of
Accounts (COA)
Enter GL journals
Reverse GL journals
Define and generate recurring GL journals
Inquiry of existing journal entries and account
balances
Run the GL Cash Balance Report in Oracle
View selected Pre-Defined Reports in
Discoverer