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 GL STRING General Ledger Module PTAEO

PTAEO vs. GL String TaskOrg Exp Type AwardProject These charging instructions are NOT used in the General Ledger EntityProjectFutureOrg Object Code Fund Source

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 co- mingled Requires unique identification and reporting

Sources of Funds Sales and Services Gifts Tuition and Fees Commonwealth of Virginia Investment Income GrantsPatient Services

Uses of Funds Also… Academic support Institutional support Student Services InstructionResearch Public service Patient Services THE UNIVERSITY MISSION

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 INSTITUTIONAL REPORTS Grants Accounting Deposits (cash, checks, credit cards) Accounts Receivable Recharge Centers Labor Distribution Purchasing Accounts Payable General Ledger ISIS / SSP We are HERE Summarize PTAEO to GL String Budgets

Integrated Systems Data (tables) ODS = Operational Data Store (views) Data copied nightly Data Storage and Reporting - Pre-Defined Reports - User-Defined - User-Defined Reports Discoverer - Find / Query - Inquiry on Account Oracle Standard Reports

Revenue Project Revenue Projects and Awards Award

Project #1 Projects Budgets are established when projects have been funded Project #3 Project #2 Award

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. 3 Basic Types of Projects

True or False? 1. Fund Accounting is necessary because the University’s funding comes from a variety of sources. 2. Any funds designated for a specific purpose are considered RESTRICTED funds. 3. I can view my investment asset balances in the GL 4. Current Funds are used in support of operational activities. 5. GL journal entries are made using my PTAEO.

How do I find my GL string? TaskOrg Exp Type AwardProject EntityFutureProjectOrg Object Code Fund Source General Ledger: GL String one to one to one many awards to one fund source many exp types to one object code Grants Accounting: PTAEO Many awards to one entity

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 Entity (2 digit code) ProjectFutureOrg Object Code Fund Source Indicates the agency to whom the funds belong Academic Division Medical Center UVa College at Wise Agency (Foundation or custodial funds)

Entity Matrix LocalStateAgency Academic Division Medical Center UVa’s College At Wise Southwest Virginia Regional Center

GL String: Project Entity Project (6 digit code) FutureOrg Object Code Fund Source Project must be designated as a REVENUE project to receive funds

GL String: Fund Source EntityProjectFutureOrg Object Code Fund Source (4 digit code) Indicates current or non-current, restricted or unrestricted funds

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 EntityProjectFutureOrg Object Code (4 digit code) Fund Source Indicates type of funds deposited (income, gifts, etc.)

Object Codes Often Used With Deposits 4505 Gifts-Via Affiliated Foundations 4510 Gifts-All Other 4705 Sales & Services, Educational Activities 4710 Conference Income 4750 Other Sales & Services 4805 Ticket Income 4810 Royalty Income 4820 Other Income 4825 Subscription Income

GL String: Org EntityProjectFuture Org (5 digit code) Object Code Fund Source Org is the organizational unit receiving funds

GL String: Future EntityProject Future Org Object Code Fund Source Reserved for future use

Matching Entity Project Fund Org Object Future Project Task Award Expenditure Type Org

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

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! Hints and Reminders (cont’d)

Integrated System Web Pages Finance Links tml tml How do I? Processing Funds m m Discoverer reports IS.GL_Revenue Project Relationships IS.FM_Award Common Attributes Resources

Call or Accounting Services Call the ISDS Help Desk: Resources (cont’d)

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