Show Me the Money

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Show Me the Money!
Accounting for University Funds March 3, 2004
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Objectives

• To give a broad overview of Fund Accounting
  principles and objectives.
• To show how sources and uses of funds are
  reflected in the Integrated System.

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What is Fund Accounting?

• A method of segregating resources into
  categories, (i.e., funds) to identify both the
  source of funds and the use of funds.

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Fund Definition

• A segregation of resources established to control
  and monitor resources and to help ensure and
  demonstrate compliance with legal/administrative
  requirements.

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Sources of Funds
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Two Basic Types of Funds

• Current Funds
• Those funds used for carrying out the primary
  purpose of the University instruction, research,
  and public service.
• Non-Current
• Those funds that represent the Universitys long
  lived assets which are not used to support annual
  operating expenses.

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Current Funds

• Restricted
• Current Use
• Endowment income/expense
• Grants and contracts
• Unrestricted
• General Funds
• Earnings

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Examples of Current Funds
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Examples of Non-Current Funds

• Loan Funds
• Endowment Similar Funds (principal)
• Annuity Life Income Funds (principal)
• Plant Funds (Capital Projects)
• Agency Funds (e.g. HSF)

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Role of the Integrated System

• To support the maintenance of sound financial
  records by recording transaction data in
  sufficient detail to properly tie the sources of
  funds to the uses of funds.
• To provide ready access to this data for inquiry
  and reporting purposes.

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Transaction Flow
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Types of Transactions in GM

• Internal Service Providers (Cavalier Computers,
  PT,etc)
• Demand Payment Vouchers (travel reimbursement,
  petty cash, utilities, etc)
• Invoices matching POs and LPOs
• P-Card Transactions
• Cost Transfers
• Labor Transactions (Pay, Fringe Benefits,
  Encumbrances)
• Purchasing Commitments (from Purchase Orders and
  LPOs)
• FA (indirect costs) Sponsored Program G
  awards only.
• Expenditure Credits
• Recoveries Internal billing for services
  rendered
• Manual Encumbrances

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Types of Transactions in GL

• Deposits
• Cash Transfers
• Endowment gains/losses
• Investment income distributions
• Expenditure Credits

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Basic Types of Projects

• Expense Projects Those that have only
  expenses/recoveries (no outside revenue). GM
  module is used.
• Revenue Projects Those that have only revenue
  (no expenses). GL module is used.
• Revenue and Expense Projects Those that have
  both revenue and expenses. Both GM and GL
  modules are used.

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Basic Project/Award Structure
P1
GL General Ledger
Revenue
A1
P1
P1
GM Expense Sub-Ledger
Expenditures
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How are Fund SourcesIdentified in the Integrated
System?
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Charging Instructions
PTAEO
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Transaction Flow
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PTAEO / GL Mapping
GL Chart of Accounts (COA)
many awards to one fund source
many exp types to one object code
one to one
one to one
many awards to one entity
GM PTAEO
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YOU ARE HERE
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Coming Soon! Reviews and Reconciliations
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GM Review/Reconciliation Course Content

• Necessary reports (Oracle and Discoverer)
• Comparing expenditures and commitments to budgets
• Troubleshooting resources
• Audit requirements
• Document retention
• Step by Step Review and Reconciliation from GM
  perspective

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Questions