1. Kuali Chart of Accounts Vince Schimizzi, Michigan State University Bill Overman, Indiana University

2. What is the Chart of Accounts? Chart Organizational Structure Accounts / Sub-Accounts Object Codes / Sub-Object Codes Extended Attributes Even More !

3. Purpose of a Chart of Accounts What is the primary purpose of a chart of accounts? To support and validate entries into a general ledger Support internal controls What other functions does the Kuali chart of accounts serve? Document routing and approvals Framework for budget construction Reporting, both internal and external

4. KFS Chart Features Chart –Ability to have multiple charts –Charts are hierarchical Organization –Hierarchical –Facilitates reporting, workflow, controls Account/Sub-Account –Report up through organizations –Allows for further division of an account for internal reporting purposes

5. KFS Chart Features (cont.) Object code and sub-object codes –Track expenditure types of categories –Allows for further division of an object for internal reporting purposes Object level codes and object consolidation codes –Provides ability to combine and consolidate by object groups for reporting Extended attributes

6. KFS Chart Features (cont.) Extended Attributes –Can be used throughout Chart (e.g. Orgs, Accounts, Object Codes, etc.) –What is it? Additional field to “tag” chart objects with a unique identifier –How to use Use to “link” chart objects that are not naturally linked for reporting purposes – i.e. tool for pre-existing reporting requirements that don't fit neatly into hierarchical structure –Example Interdepartmental activities, link unrelated organizational units (cross functional teams, etc.), inter-disciplinary activities

7. Chart of Accounts at Sample U SU COA UA COAWest COA WA COA East COA EA COA Regional COAs

8. Benefits of Multiple Charts Ability to handle complex reporting structures Campus charts are not required to contain object codes unrelated to their activities (i.e. Cost of Goods Sold, Inventory, etc.) Auxiliary Charts are not required to contain object codes unrelated to their activities (i.e. Tuition, State Appropriations) Easy access to campus level or Auxiliary reporting Increased information and knowledge at the campus level

9. Organizations Organization –Example: FMOP (Financial Management Operations) –Collection of accounts and/or other organizations –Some organization features: Chart of Accounts, Campus, Department, Responsibility Center, Sub-unit Can include all fund groups Up to four alphanumeric characters (eg. FMOP) Extension HRMS table (customizable)

10. Organization Hierarchy at SU VPBus WA UNIV FM FMOPFMSY

11. Accounts Account Number –Specific identifier for a pool of funds assigned to a specific organization for a specific function. Example: 1912610 (Financial Management Administration) Reports to org FMOP –All accounts can be self-balancing or can post claim on cash offsets to a control account

12. Org Hierarchy with Accounts VPBus WA UNIV FM FMOPFMSY 19126101912631

13. Sub-Accounts Sub-accounts achieve further division of an account for internal reporting purposes. Example: finpr (FM Financial Processing) Reports to 1912610 Characteristics of a sub-account: –Account specific –Assumes all features of the account it reports to

14. Org Hierarchy with Accounts and Sub Accounts VPBus WA UNIV FM FMOPFMSY 19126101912631 reprtfinpr

15. Object Codes Object Codes are detailed identifiers for Income, Expense, Asset, Liability and Fund Balances. –Chart specific –Four numeric digits –Example 1: West-2000 “Academic Salaries” East-2000 “Academic Salaries” –Example 2: West-1504 “Animal Care Income” East-1504 “Card Services Income”

16. Sub-Object Codes Sub-object codes achieve further division of an object code for internal reporting purposes Features of a sub-object include the following: –Specific to an account and object code –Assumes all features of the object code it reports to Example: In State Travel Object Code 6000 –Faculty Instate Travel, Fac –Staff Instate Travel, Sta –Student Instate Travel, Stu

17. Levels and Consolidations All object codes report to a higher Level code and each Level code reports to a higher Consolidation code –Approximately 80 Levels (although no limit) –Approximately 20 Consolidations (no limit) –Example: Object Code4100 “Office Supplies” Level S&E “Supplies and Expense” ConsolidationGENX “General Expenses”

18. Extended Attributes Extended Attributes are extensions of an Account that enable: –Search by attribute –Lookup by attribute –Balance inquiry retrieval by attribute –Reporting by attribute Extended Attributes can be alpha / numeric. They are optional.

19. Management Control and COA How can I use the chart for organizational management? –Flexibility in Reporting –Flexibility in making Routing decisions –Hierarchy for Responsibility Management –Facilitates internal controls by assigning fiscal officers, account managers, supervisors –Transparency of data to measure performance of departments and subunits

20. Management Control and COA What tools are provided to achieve reporting objectives? –With the Approval of the Chart Manager Organizations Accounts Object codes –Sub-accounts (budgeting / spending) –Sub-object codes (budgeting / spending) –On line balance inquiries and formal reports through use of data warehouse

21. Creating your own Chart General questions to consider: Just because it can be changed, should it? –What currently works, what doesn’t? –Implications for historical comparisons What are the reporting requirements? –Institutional financial reporting (external) –Summarized management reporting –Departmental detail –Ad hoc reporting

22. Creating your own Chart Chart questions to consider: Does the institution need multiple charts? –For separate campuses –For auxiliary operations –For high level institutional financial reporting Will interfaced systems be able to accommodate multiple charts? Will it add confusion for users?

23. Creating your own Chart Organization questions to consider: What should be the basis for the organizational hierarchy? –Lines of authority –Lines of business (disciplines, auxiliaries, etc.) –Financial reporting requirements How should the org structure relate to other administrative systems (e.g. HR)? Do orgs need to be grouped in a way other than hierarchical? How narrowly should org attributes (e.g. type) be defined?

24. Creating your own Chart Account questions to consider: Should existing account structure be preserved or should entirely new structure be created? If new structure is used, can a map from old to new be created? Should fund/sub-fund attribute perpetuate fund accounting or represent a different way of grouping accounts? Should accounts be self-balancing, or should the institution use the “flexible claim on cash” option? How should sub-accounts be used?

25. CoA Next Steps Please feel free to talk with us during Kuali Days ! Kualitestdrive.org

26. Questions?