ACT 101. Introduction to Accounting

Transcription

1 Finance Certificatin Training Prgram ACT 101 Intrductin t Accunting Page 1

2 Cntents FUND ACCOUNTING... 3 FINANCIAL STATEMENTS... 4 THE BALANCE SHEET... 4 THE OPERATING STATEMENT... 4 OUR FINANCIAL SYSTEM... 5 REPORTING SYSTEMS... 5 ACCOUNTING PERIODS... 6 THE CHART OF ACCOUNTS... 6 OBTAINING ADDITIONAL INFORMATION ABOUT YOUR FUNDS... 9 FTIFATA... 9 FTMFUND SEARCHING FOR ACCOUNT INFORMATION THE DATA DICTIONARY FTMACCT SSRS WEB USEFUL SSRS REPORTS FORMS FINANCIAL DATA INTEGRITY Page 2

3 Fund Accunting The University s Cntrller s Office perfrms mst accunting functins fr campus, thugh a certain level f accuntability is extended t each department in regards t their financial data. It is imprtant fr each department t understand the management f their funds, and the basic plicies and prcedures they will cme int cntact with relating t their funds and financial activities. Rules and regulatins gverning financial activity play a very imprtant rle in the develpment f ur wn Accunting prcedures. It is imprtant t fllw them clsely, as many mandates and regulatins are set by State and Federal bdies. What is Fund Accunting? Fund Accunting is an accunting system ften used by nnprfit rganizatins and by the public/gvernmental sectr. Separate Funds are maintained t ensure bservance f limitatins and restrictins placed n resurces. The nature f ur business makes fr a special kind f reprting reprting that shws mre detail f hw ur mney is spent versus hw much prfit was made. What is a Fund? A fund is an accunting entity with a self-balancing set f accunts cnsisting f bth a balance sheet and an perating statement. If yu think abut the University as ne big city, and there are many smaller business units that make it up, then it makes a little mre sense. Each fund culd generate its wn set f cmplete financial statements independent f all ther funds. What is all this financial data used fr? Financial data is used fr many things and by many agencies. Sme f the uses are: Management Reprting Budget Reprting Annual Financial Reprts State Reprting Nrth Carlina Accunting System (NCAS) General Administratin (UNC System Gverning Bdy) Office f State Budget and Management (OSBM) Office f State Cntrller (OSC) Department f State Treasurer (DST) NC Department f Revenue (NCDOR) Federal Reprting Internal Revenue Service (IRS) Department f Labr (DOL) Department f Educatin (DOE) Page 3

4 Financial Statements The Balance Sheet The balance sheet is a grup f accunts including Assets, Liabilities, and Fund Balances. Assets include cash, receivables, buildings, equipment, etc. Liabilities include ntes payable, accunts payable t vendrs, accrued payrll, etc. Balance Sheet Accunts are cntinuus and d nt rll up int fund balance at the end f each Fiscal Year. Referred t as the General Ledger The balance sheet and its data are nt as widely used fr fund management purpses unlike the Operating Statement cvered belw. The Operating Statement The perating statement is a grup f accunts including Expenditures and Revenues. This statement is the ne yu re mst likely t use in yur day t day business activities because it cntains yur budgets! Expenditures include mnies paid fr supplies, equipment, salaries, research, etc. Revenues include mnies brught in thrugh tuitin payment, fees, fines, and services The University is a nt-fr-prfit entity, therefre nly a small number f funds actually recrd any revenues in their ledgers. General Funds d nt receive r recrd revenues Operating Statement accunts are rlled up int Fund Balance at the end f each Fiscal Year, which is June 30. Each perating statement (revenue and expenditure) begins with a ZERO balance n July 1. Referred t as the Operating Ledger. Page 4

5 Our Financial System The financial system used by UNCW and mst ther UNC System schls (except NC State and UNC-Chapel Hill) is the Banner Finance System. All Accunting Data is entered int Banner Finance either directly r frm ne f ur subsystems (Travel, ushp, AIM, etc) Runs accunting Prcesses Psts transactins t ledgers Allws access t Accunting data fr departments and managers Must have specific access t view and prcess Using Banner as it relates t viewing chart f accunts detail is discussed in a later sectin Reprting Systems Banner Prductin Banner Finance prvides us real-time activity and balances within the system. Jurnal entries and prcesses are examples f real-time activity. Reprts run frm Banner Prductin will have up t the minute data. There are tw versins f Banner Prductin available: Internet Native Banner (INB) This is versin f Banner ften referred t as Teal r Banner Hawkeye. Currently, INB is used fr bth query and maintenance thrughut campus. Self Service Banner (SSB) This is a versin f Banner recently released t Campus fr query purpses nly. BAN 102 in the Finance Training Prgram teaches querying in SSB and grants access t thse wh wish t use it. SSRS SSRS (SQL Server Reprting Service) is a Micrsft reprting tl which allws us t design and execute mre detailed financial reprts. SSRS runs frm a database envirnment and fr mst reprting purpses will nt cntain real-time activity and balances. As f right nw, ur database warehuse is updated nightly s reprts run in SSRS reflect the previus business day s activity. SSRS is the web based reprting repsitry currently used at UNCW. Sme reprts may still be run in Banner itself and saved t an lder repsitry system called Eprint. Mst Business Affairs Finance areas are in the prcess f cnverting remaining Eprint reprts t the SSRS system. Page 5

6 Accunting Perids The UNCW Fiscal Year -The State f Nrth Carlina perates n a fiscal year beginning July 1 and ending each fllwing June 30. Accunting Perid an accunting perid is a standard perid f time by which financial results are measured. Accunting perids are usually measured by calendar mnth. Because UNCW is n the July-June Fiscal Year, ur accunting perids are as fllws: Perid Mnth Perid Mnth 01 July 07 January 02 August 08 February 03 September 09 March 04 Octber 10 April 05 Nvember 11 May 06 December 12 June 14 Accruals Yu will ntice a perid 14 (furteen) listed in the chart abve. The reasn fr this extra perid is that during the regular fiscal year, UNCW perates n the Cash basis f accunting. In perid 14, we cnvert the year s activity and detail t an Accrual basis f accunting fr financial reprting purpses. It is the respnsibility f the UNCW Cntrller s Office alng with individuals in certain ther business departments t perfrm and recncile this cnversin each year after yearly Cash clse. The Chart f Accunts A Chart f Accunts is a list f all funds, accunts and attributes tracked by an accunting system. It is designed t capture financial infrmatin which can ultimately be used fr reprting, analysis, and decisin making. The Chart f Accunts cnsists f assets, liabilities, fund balances, revenues, and expenditures. In ther wrds, all accunt grups making up the General and Operating Ledgers. The Chart f Accunts is made up f several different Chart Fields, nt just accunt numbers. A Chart Field is a data element that defines a prtin f a transactin. Chart fields are needed t segregate data fr varius types f financial reprting. Page 6

7 UNCW Operates with TWO active charts: W Default chart fr all fiscal activity (Perids 01-12) Z Chart used fr by Financial Accunting fr Accrual reprting purpses nly (Perid 14) UNCW Chart Fields (FOAP) Fund Organizatin Accunt Prgram FUND (Fund) REQUIRED - A numeric designatin fr a fiscal and accunting entity. A fund represents the type f mney being spent. A Banner Fund is six (6) digits lng and has its wn set f accunts. Activity is recrded separately in these specific funds in rder t carry n specific activities r attain certain bjectives in accrdance with prevailing regulatins, restrictins, r limitatins. The chart belw shws the breakdwn f the different fund ranges. Fund Data Entry Mney Surce Range General funds - Departmental 1xxxxx - 18xxxx Trust - Departmental 2xxxxx - 27xxxx Trust - Overhead 28xxxx Trust - Clearing Accunts 299xxx Auxiliary 3xxxxx Capital Imprvement 4xxxxx Cntract & Grant 5xxxxx Financial Aid 6xxxxx Endwment 7xxxxx Agency Funds 9xxxxx UNCW Spnsred Cnferences 98xxxx Organizatin (Org) REQUIRED - The Organizatin represents the Divisin, Schl, and Department. In shrt, it s whse mney yu re spending. Organizatins are five (5) digits lng and are required fr data entry. The Orgn cde will default in Banner based n yur FUND fr mst data entry purpses. (See detail later in presentatin abut changing an Organizatin Cde) Page 7

8 Accunt (Acct) REQUIRED A six (6) digit numeric designatin fr an individual asset, liability, equity, revenue, expenditure and/r transfer classificatin. Accunts are ne f the mst imprtant parts in classifying and reprting n specific activities. It is imprtant t cde yur expenditures crrectly s that activity is reprted accurately and can be crrectly interpreted in reprts. The chart belw shws the breakdwn f accunt number ranges. What kind f activity? Revenues Expenditures Fund Balance Assets Liabilities Accunt Data Entry Range 1xxxxx 9xxxxx 3xxxxx 4xxxxx 5xxxxx When cnsidering Expenditures, there are tw types f Accunts t remember: Budget Pls and Expenditure Detail Accunts. Budget pl accunts als begin with 9xxxxx and usually end in 00. These accunts are available fr budget transactins ONLY. Expenditure detail accunts are available fr actual expenditures being made, nt budget entries. The wrds Budget Pl generally appear in the title f a Budget Pl line. Prgram (Prg) REQUIRED The Prgram is a three (3) digit numeric designatin fr grup activities, peratins r ther units directed t attaining specific purpses r bjectives. These are defined by the Natinal Assciatin f Clleges and University Business Officers (NACUBO) standards. The Prgram cde will default based n Banner FUND fr mst data entry and query purpses. The chart belw prvides an example f a few Prgram cdes frm ur Chart. Prg Data Entry Reasn fr receipt/expenditure Values Instructin 101 Summer-Term Instructin 102 Nn-Credit Receipts Supprted Instructin 103 Organized Research 110 Cmmunity Services 142 Libraries 151 General Academic Supprt 152 Student Services 160 Page 8

9 Obtaining additinal infrmatin abut yur Funds Yu can find mre detail abut yur fund using BANNER query screens. FTIFATA is a query screen in Banner Finance that cntains infrmatin such as: Respnsible persns and ID s NCAS (Nrth Carlina Accunting System) Attribute Infrmatin Budget Cdes Remember when using a Banner Query frm, F7 clears the Query dcument. Enter yur query filter (in this example the fund number) and press F8 t execute yur query. Page 9

10 FTMFUND is a Banner Finance Query Frm that cntains infrmatin such as: Fund Title Effective date/last activity date Fund Type NCAS Predecessr Bank Default Org Default Prgram Effective Dating This methd f dating is used in Banner t recrd changes made t funds such as Org and Prg changes. The mst current effective date is always displayed. If yu are lking fr an Org r Prg cde that des nt appear n the fund, it is pssible it was changed. Yu shuld be able t scrll thrugh the different dates using the next recrd functin n the Banner frm. Org cdes n past fiscal data will nt autmatically appear in Banner as nly the mst current Org default is displayed. If yu are searching fr past balances r transactins and are returning n results, make sure yu manually enter the crrect Org cde fr that time. Page 10

11 Searching fr Accunt infrmatin The Data Dictinary Available t campus in May 2016, the Data Dictinary cntains a list f all revenue and expense accunts available in Banner. It als includes definitins fr every accunt. ACT 105 in the Finance Training Prgram prvides detailed infrmatin abut the Data Dictinary and hw t use it, and ther imprtant infrmatin abut accunt cdes. The Data Dictinary can be fund here in the Banner Accunts sectin: Page 11

12 FTMACCT This query screen wrks much like FTMFUND and can cme in handy when yu require additinal infrmatin n a Banner accunt. FTMACCT cntains the fllwing useful infrmatin: Accunt Number Accunt Title Useful dates NCAS Predecessr Data entry status Page 12

13 SSRS Web Yu can find additinal infrmatin and detail abut chart fields and ther financial data thrugh the use f SSRS Web Reprts. Cntact yur department s SSRS develper fr questins regarding yur areas reprting needs. SSRS (SQL Reprting Services) Web is a web based reprting system. Access t SSRS Web is granted as part f the Banner Finance Access Package. Infrmatin n hw t access SSRS Web Reprts, pening reprts and reprt navigatin can be fund here Reprts in SSRS Web can be exprted int several different frmats including Excel, which was previusly unavailable in e-print reprts. Examples shwn with the fllwing are in PDF frmat. T access campus-wide financial reprts: At UNCW Faculty Staff page click n SSRS Web 2008 (enter credentials), Click Financial Reprts, Click Campus Reprts. Several flders are available fr campus users, the nes discussed in this class are in FOAPAL Reprts r Miscellaneus Reprts Useful SSRS Reprts Data Entry Accunts This reprt identifies all active accunts available in Banner. It displays the accunt number, accunt title and budget pl (fr expenditure accunts). This reprt represents the Chart f Accunts used at UNCW. This is a very imprtant reprt as it can assist in determining which accunt number yu shuld be using fr a transactin. Entry f transactins int prper accunts ensures accuracy f ur financial data recrds. A sample first page f the reprt is belw: Page 13

14 Funds by Default Org This reprts lists funds by their current default rganizatin cde. Departments may find this reprt useful when infrmatin is needed at the department r divisin level abut available funding surces, and fund/rg structure. This reprt als includes the Divisin in which the Org falls under, and fund effective dates/establishment dates. Organizatinal Hierarchy Reprt This reprt presents the University s entire Organizatinal Hierarchy Structure frm the highest level (tw digit Org) t the lwest (five digit Org). This reprt is useful fr anyne ding reprting at a divisinal r departmental level, and fr reviewing fr structural rganizatin changes. Page 14

15 Active Rule Cdes This reprt lists all active rule cdes. It runs frm the data warehuse s is current as f the clse f the previus business day. This reprt can be especially useful in analyzing individual transactins that ccur in yur fund and accunts. The reprt cntains rule cdes and rule cde descriptins. Page 15

16 FORMS Banner Fund Establishment Effective April 2014, all fund establishment frms are submitted electrnically in an ImageNw wrkflw. When cmpleting the frm, it is imprtant t be detailed in the title purpse, revenue and expenditure fields and als include at least tw Budget Authrities. The frm and instructins are available n the Cntrller s Website Once the frm is cmpleted, it is submitted electrnically fr apprval t the Senir Offer Designee in the ImageNw wrkflw prcess. Once apprved, the Senir Officer Designee will rute it frward in the wrkflw fr prcessing. The frm is als reviewed by the Assciate Cntrller, Tax and the Budget Office befre the fund is created in Banner. The persn listed first as Budget Authrity n the frm will be ntified by a system generated that the fund has been set up and what the fund number is. Cntact Janne Fergusn at fergusnj@uncw.edu fr mre infrmatin regarding fund establishment. Access t ImageNw and the Fund Establishment wrkflw, as well as training fr the new prcess, can be btained by cntacting Diana Rivenbark at ext Banner Fund Change Frm T change any attributes n a fund requires an apprved frm als fund n the Cntrller s Office website: This includes items such as changing a Budget Authrity r a title. This frm is NOT used fr Org changes. Cntact Becky Heins at heinsr@uncw.edu fr mre infrmatin regarding fund changes. Imprtant Ntice abut Org Changes: Changes t Organizatins must be submitted t the Org Cmmittee. Guidelines fr Organizatin changes are available n ur website at Current prcedures fr Org Changes are lcated here: Cntact Janne Fergusn at fergusnj@uncw.edu fr mre infrmatin regarding Org Changes. Establishment f a Banner Accunt There is currently n frm fr establishing a Banner Accunt. Shuld yu have a request fr a revenue r expenditure accunt, please submit an t Julia Shk at shkj@uncw.edu cntaining a detailed descriptin fr the purpse f accunt. Befre requesting a new accunt, please refer t the Data Dictinary here t be certain there is nt already an accunt cde available fr yur needs. Where d I find frms? Yu can access the list f available Accunting frms thrugh the Cntrller s website at Page 16

17 Financial Data Integrity It may ften seem as thugh ur finance ffices have an excessive amunt f rules and regulatins gverning every transactin, prcess, request, etc. Our ften strict plicies and prcedures are that way fr a reasn. Regulatins and restrictins n funds, mney, prcesses, etc, are set frth by UNCW fficials, State guidelines, and Federal regulatins. It is imprtant that we fllw the regulatins and requirements set frth frm ur gverning bdies and gvernment agencies. State agencies gverning ur accunting and business practices include: OSC - Office f the State Cntrller OSBM Office f State Budget and Management DST - Department f the State Treasurer GA NC General Administratin The accuracy f ur financial data is f utmst imprtance. Emplyees, departmental managers, Senir Management, and state agencies rely n ur detailed and cmbined financial data fr many analyses and decisin making purpses. Budgets are ften determined based n spending trends as well as decisins abut future emplyment pprtunities and future prjects. The backup data ur business ffices ften require may seem a little excessive at times and may nt seem quite relevant t everyne. Hwever, the audit trail this dcumentatin generates is very imprtant t the accuracy f ur transactins, decisins and research. We shuld always be able t trace a single transactin all the way t its surce dcument. It is always critical that yu include all requested dcumentatin with any transactin r request yu make. If yu submit incmplete data, there is a chance yur transactin r request may be delayed. Additinal Infrmatin Frms, plicies and prcedures, cntact lists and mre can all be accessed thrugh the Cntrller s website at Page 17