1. Banner Finance Training FOAP Coding

2. Objectives  Overview of Banner Finance System  Introduce Banner Ledgers and Chart of Accounts Elements  Explanation conversion of IFAS Project- Object to Banner FOAP coding

3. Banner Financial Information System The following Modules are installed and operating on the Finance System  General Ledger / Operating Ledger  Purchasing / Accounts Payable  Budget Development The Systems and Modules below are scheduled for future implementation  Grants  Fixed Assets  Human Resources / Payroll  Alumni / Development

4. Banner Finance Ledgers General Ledger Generates the Statement of Financial Position (Balance Sheet). Assets, Liabilities and Fund Balances are General Ledger Account types. Operating Ledger Generates the Statement of Changes in Net Assets (Income Statement). Transactions from budgetary units and departmental operating accounts. Revenues, expenses, and transfers are Operating Ledger Account Types. Budgets also reside on the Operating Ledger.

5. Coding Terminology

6. Crosswalk of Elements Banner IFAS Fund CodeProject Code Organization CodeDivision Code* Account CodeObject Code Program CodeFunction Code* Activity CodeN/A Location CodeN/A This table represents a crosswalk between elements of Banner vs. IFAS elements. The first four elements are required for all transactions in the Banner System. The Activity Code and Location Code are currently not being used. * attributes of IFAS Project Code

7. Banner FOAP vs. IFAS Project-Object IFAS Project-Object code 214008ProjectControllers Office 6 digits 13296ObjectFirst Class postage 5 digits IFAS Project-Object11 digits translates to………………………….. FOAP Fund11000Current Unrestricted/Operating 5 digits Organization74300Accounting and Accounts Payable 5 digits Account70640First Class Postage Distribution 5 digits Program 6001Budget finance and planning 4 digits Banner FOAP19 digits

8. The Banner Hierarchy Definition: All chart of Account elements in Banner are in a hierarchical structure. Every code is assigned a predecessor code to define a roll-up, that allows easy grouping and summarizing for reporting. The higher levels of this hierarchical structure are not data entriable. These levels are used for reporting purposes and budget control/checking.

9. Fund Code Element Definition: This element shows ownership of cash or fund balance. The basis for creating the Fund Code for the new Chart of Accounts was the Project Code on the superceded system (IFAS - Interactive Fund Accounting System) Chart. A Fund is a self-balancing set of accounts, in which transactions are recorded and segregated to carry on specific activities or attain certain objectives in accordance with prevailing regulations, restrictions, or limitations. A fund is created to allow for a fund balance, which can be used to track the historical status of a component without creating a separate Chart. In addition to moving Projects from the old Chart to Funds on the new Chart, deficit and surplus balance Projects from the old Chart were consolidated and eliminated. Many restricted Projects on the old Chart were corrected so that they are properly reflected as unrestricted Funds on the new Chart. Hierarchy: Fund #Fund DescriptionData Entriable 10Unrestricted Funds N 11 Unrestricted Funds N 11A Current Unrestricted/Operating N 110 Current unrestricted/Operating N 1100Current unrestricted/Operating N 11000 Current unrestricted/Operating Y This is an example of the Fund Hierarchy for a portion of the unrestricted Fund category. Note the data entriable indicators -- only Funds that have a indicator set to (Y) will accept transactions and budgets. The higher levels are used for reporting and budgeting purposes.

10. Fund Code Element (cont.) The Fund Code is a 5 digit element that is required on all transactions. The first digit of the Fund Code is directly related to its purpose.

11. Organization Code Element Definition: Describes departmental entities or budgetary units within the University. The basis of this element was a combination of the division, department, and unrestricted Project Codes from the IFAS Chart of Accounts. This element coincides with divisional and departmental functions rather than a strictly defined Organization Chart. This element consists of five numeric characters. The first digits of the academic division codes are in the table below. Hierarchy: Organization #Organization DescriptionData Entriable AA Parsons N PS0 Administrative Offices N PS00 Dean’s Office N PS000 Dean’s Office N 1000 Dean’s Office N 10001 Dean’s Office, PS Y This is an example of the Organization Hierarchy for a portion of Parsons School of Design. This hierarchical structure is carried on throughout the entire Organization Chart. Note the data entriable indicators -- only Organizations that have a indicator set to (Y) will accept transactions and budgets. The higher levels are used for reporting and budget control purposes. The administrative department Organization Codes range from 70XXX to 96XXX.

12. Account Code Element Definition: Describes the nature of expenditures and revenue in the Operating Ledger and assets, liabilities, and fund balances in the General Ledger. The basis for creating the Account Code structure for the new Chart was the Object Code on the BiTech, IFAS Chart of Accounts. This element consists of five numeric characters. The Account categories are assets, liabilities, fund balances, revenues and expenditures. Expenditures consist of Salaries, wages & benefits expenditures and Expenditures: non-salary. Asset Codes begin with a 1, liabilities a 2, fund balances a 4, revenues a 5, labor expenditures a 6 and non- labor expenditures a 7. Hierarchy: Account #Account DescriptionData Entriable 700AGeneral Expenses N 70A1 Office and computer supplies N 7000 Office and computer supplies N 70000 Academic supplies Y 70020 Office supplies Y This is an example of the Account Code Hierarchy for an Asset. This hierarchical structure is carried on throughout the entire Account Code Chart. Note the data entriable indicators -- only Accounts that have a indicator set to (Y) will allow transactions and budgets. The higher levels are used for reporting and budget pooling purposes.

13. Program Code Element Definition: Functional reporting in classifications for tracking sources and uses of institutional funds. This element defines NACUBO (National Association of College and University Business Officers) functions, such as Instruction, Research and Administration. The categories match the expense groupings on the University’s Financial Statements. This element is designed to cut across organizational boundaries. This element consists of four numeric characters. Hierarchy: Account #Account DescriptionData Entriable 3DAcademic Support N 3DA Academic Support N 370 Academic Support N 3700 Divisional Academic Support Y 3701 Central Admin. Academic Support Y This is an example of the Program Code Hierarchy for Academic Support. This hierarchical structure is carried on throughout the entire Program Code Chart. Note the data entriable indicators -- only Programs that have a indicator set to (Y) will allow transactions and budgets. The higher levels are used for reporting and budgeting purposes.

14. FOAP Coding Rules FOAP’s are the basic coding format for all transactions that occur in Banner. There are a couple rules that must be followed to insure that information in the system is accurate. 1) Operating Ledger transactions MUST have a complete FOAP string. Operating Ledger Account Codes begin with 5, 6, 7, 8 2) General Ledger transactions contain only Fund and Account elements. General Ledger Account Codes begin with 1, 2, 3, 4 or 9. Posting to General Ledger Accounts is restricted to the Controller’s Office.

15. Coding Examples The Parsons Dean’s Office purchases Office Supplies… The IFAS Project-Object coding was 262000-13101 The Banner FOAP coding is 11000-10001-70020-3700 1) For Unrestricted, Departmental, Operations spending use one of the Unrestricted Funds. The most commonly used is the Current Unrestricted/Operating Fund, 11000. 2) Find your Organization/Department/Functional Area on the Banner Organization Hierarchy Report. 3) Find the Account on the Banner Account Hierarchy Report. If you know the IFAS Object, you can use the IFAS to Banner conversion document to obtain the Banner Account. 4) Find the Organization Code on the IFAS to Banner conversion document. The Program Default is the most commonly used Program for Unrestricted spending with your Organization Code.

16. An employee needs to submit a travel voucher for the Crackow Program Restricted Fund for summer travel expenses… The IFAS Project-Object coding was 423316-14001 The Banner FOAP coding is 25035-20450-73000-3000 1) Find the Fund on the Banner Fund Hierarchy Report, or if you know the IFAS Project Code use the IFAS to Banner conversion document to find the Banner Fund Code. 2) Find the correct Organization Code on the Banner Organization Hierarchy Report. 3) Find the Account on the Banner Account Hierarchy Report. If you know the IFAS Object, you can use the IFAS to Banner conversion document to obtain the Banner Account. 4) The Program Default, the most commonly used Program for a given Restricted, Quasi-Endowment, Endowment or Plant Fund can be obtained from the IFAS to Banner conversion document. Coding Examples (cont.)

17. Other Elements All of the previously described Codes (Fund, Organization, Account and Program) are required elements in Banner. The Chart of Accounts Code, which is also required on all Banner transactions, is 1 for the main New School University Chart of Accounts. At the time of implementation this is the only Chart of Accounts Code. Three elements (Index, Activity and Location) will be developed in the future, but even once implemented, they are optional. Banner does not require these Codes to process transactions. A complete set of Banner Chart of Accounts elements, the IFAS to Banner conversion document, and Banner Chart of Account element maintenance forms can be found at: http://www.newschool.edu/admin/banner/bannerdocs.html