Accounting at Oregon State University OSU uses Fund Accounting as a method of grouping resources into ledger entries based on their source and any limitations on their use.

What is Fund Accounting? Fund accounting is required of the following entities: Government, Non-Profit Organizations, and Special Purpose Governments. The primary purpose of Fund Accounting is to provide compliance and accountability to the resource provider for the proper use of the monies. OSU reports its financial information to the Oregon University System (OUS), which then reports financial information for all state run Universities to the State of Oregon.

Why does OSU use Fund Accounting? Oregon State University is required to use fund accounting due to both its Non-Profit and its Special Purpose Government status. OSU receives resources from Federal, State, and Local governments, as well as private individuals, agencies, and corporations. OSU must manage the funds from these sources individually as well as maintain the “big picture”. Banner provides for fund expenditure and balance reporting in various ways by using the FOAPAL.

What is a FOAPAL? Each character of a “FOAPAL” represents a separate, reportable accounting code: “F” represents Fund “O” represents Organization “A” represents Account “P” represents Program “A” represents Activity “L” represents Location

What is a Fund? A Fund identifies the type of resources, and how it can be spent. A Fund represents a financial entity that requires a balance sheet. Each Fund represents revenues and/or expenses across all departments and offices for a given financial area.

What is an Organization? An Organization is a distinct budgetary unit, such as a department within a college. Organization codes are used to create a hierarchy so that sub-units can be summarized into a larger entity.

What is an Account? Account codes are used to track specific object level financial transactions. FIS separates accounts into two categories: Operating Ledger (OPAL) accounts Include revenue, expenses, and transfers OPAL account codes are numeric General Ledger (GL) accounts Include assets, liabilities, and fund balances GL account codes are alpha/numeric

What is a Program? Program codes are used to identify institutional functions. Functions are tracked across Funds, Organizations and Accounts.

What is an Activity? Activity codes are used to capture an additional level of detail not available elsewhere in Banner. Activity codes are not mandatory, and may be used at the discretion of individual organizations. As with all other FOAPAL codes, Activity codes must be established in Banner before they can be used.

What is a Location? A Location code is a financial code which identifies the physical location of an expense or asset. Location codes are used with 8xxxxx Plant Construction funds only, and they indicate the building or infrastructure which is receiving the work. Property Management also assigns Location codes to fixed assets.

The Index The Index is not a FOAPAL element. An Index code points to a combination of Fund, Organization, and Program. An Index code is a shortcut used to process expenses and record income. Index codes may only be used in the Operating Ledger - not in the General Ledger.

Oregon State University Accounting END Oregon State University Accounting