MARATHON FINANCIAL ACCOUTING GENERAL LEDGER SETUP

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1 The General Ledger Module is the hub of the Marathon Financial Accounting System. Setup for the GL must be completed before any Marathon Module may be used. The account component codes must be set up before an account can be properly added to the system. It is mandated that the codes used by a district be in accordance with the Financial Accounting Manual issued by the State Auditor s Office. Please refer to that Manual for proper coding. Setup Account Component Codes Fund/GLC/Functions/Program/Object/Unit Extend 1,2,3&4 (for feature expansion if needed) The Function and Object components are further broken down into Revenue and Expenditure codes. This setup feature allows you to add new fund numbers, general ledger codes, revenue functions, expenditure functions, program codes, revenue objects, expenditure objects and unit codes. Through this same feature you may modify an existing code or delete any codes that are no longer needed. As a part of the fund code setup indicate the General Ledger code that the fund equity should be closed into at the end of a fiscal year. You may change the first fund and then press the Set All button to change all of your funds to the same GLC code. If a fund should be closed into another code, simply change that fund to the proper code number and save the change. Another part of the fund setup is the Fund Type. There are three types, Regular, Activity, or Agency. The Activity and Agency fund types allow the user to maintain balance sheet accounts by location in a single fund along with providing access to the account through Remote Link. If the fund is determined to be major fund for financial reporting purposes under GASB 34 the Major Fund box should be checked. Marathon provides a utility that can be used to calculate the major funds and check the box for those funds. Tip: To sort the funds by fund number in the various drop down boxes add the fund number at the beginning of the Description, e.g., 1120 District Maintenance. Revenue Object Numbers Effective July 1, 2002 the Financial Accounting Manual for Mississippi Public School Districts includes a set of object numbers for the revenue functions. These object numbers are to be used to separate certain revenue accounts based on expenditure functions for the Statement of Activities. The use of the revenue object codes in the individual funds is optional. For reporting purposes it is only necessary for them to exist in Fund Unit Code 99 Marathon will use unit number 99 for the following purposes. 07/22/2003 8:08:00 AM 1

2 1. To separate restricted assets from non-restricted assets on the Statement of Net Assets, 2. To separate property taxes debt levies from property taxes general levies on the Statement of Activities, and 3. To separate Expendable Restricted Net Assets (GLC 751) for School Based Activities (Funds 2000) from Unrestricted Net Assets (Funds 1000) for the Statement of Net Assets Unit number 99 will need to be added to the Unit Number table in the Setup portion of the Account Component Codes in General Ledger. Unit 99 is used in Fund 9999 to separate the items listed above. Journal Entries should be used to move funds to the corresponding account with unit 99. The accounts are as follows: Expendable Restricted Net Assets for School Based Activities Item 1 and 2 above are copied into Fund 9999 as unit number /22/2003 8:08:00 AM 2

3 SCREEN PRINTS Fund Numbers 07/22/2003 8:08:00 AM 3

4 General Ledger Codes (GLC) MARATHON FINANCIAL ACCOUTING Revenue Functions 07/22/2003 8:08:00 AM 4

5 Expenditure Functions 07/22/2003 8:08:00 AM 5

6 Program Codes Revenue Object Codes 07/22/2003 8:08:00 AM 6

7 Expenditure Object Codes MARATHON FINANCIAL ACCOUTING Unit Codes 07/22/2003 8:08:00 AM 7

8 Note that the State Auditor s Office has changed the format of the unit code. They have expanded it from 2 to 3 digits. Any new unit numbers that are entered should be entered as 3 digit numbers, e.g., 023. Accounting Periods Marathon divides the fiscal year (July 1 June 30) into 12 accounting periods. Each accounting periods is represented by a calendar month. The accounting periods for the current fiscal year can be viewed as follows. Setup Accounting Periods The 12 monthly accounting periods and whether the period has been closed can be viewed on this screen. It will also show the date it was closed and the person that completed the process. Various dates throughout the Marathon process controls in which period the transaction is posted. For example. PO Date Encumbrances AP Date Expenditures and Claims Payables Check Date Cash credits and Payable debits 07/22/2003 8:08:00 AM 8

9 Payroll Date Payroll Expenditures and cash credits Receipt Journal Date Revenues and cash debits General Journal Date General Journal entries Disbursement Journal Date Disbursement Journal entries The number of months that can remain open before one has to be closed is controlled by the General Ledger System settings for Periods Open. The Activity Fund section of the Accounting Periods is not functional at this time. Long Term Debt GLC Codes (For use in Fund 9999) The codes available in the Accounting Manual did not allow for the proper classification of long-term debt into the components required on the Statement of Net Assets. These components were as follows. Capital, Non-Current Capital, Current Non-Capital, Non-Current Non-Capital, Current The GLC codes available in the Accounting Manual were expanded to include the necessary codes to classify the debt in to the components mentioned above. The expanded list is as follows. GLC DESCRIPTION 501 General Obligation Bonds Payable Capital Non-Current 502 Certificates of Participation Payable Capital Non-Current 503 Three Mill Ten Year Notes Capital Non-Current 504 Transportation Notes Payable Capital Non-Current 505 Sixteenth Section Principal Loans Payable Capital Non-Current 506 Shortfall Notes Payable Capital Non-Current 507 Obligations under Capital Leases Capital Non-Current 508 Installment Purchases Loans Payable Capital Non-Current 509 Other Loans Payable Capital Non-Current 510 Limited Obligation Bonds Payable Capital Non-Current 512 Obligations Under Energy Efficiency Leases Capital Non-Current 513 Qualified Zone Academy Bonds (Loans) Payable Capital Non-Current 521 General Obligation Bonds Payable Capital Current 522 Certificates of Participation Payable Capital Current 523 Three Mill Ten Year Notes Capital Current 524 Transportation Notes Payable Capital Current 525 Sixteenth Section Notes Payable Capital Current 526 Shortfall Notes Payable Capital Current 527 Obligations under Capital Leases Capital Current 528 Installment Purchases Loans Payable Capital Current 529 Other Loans Payable Capital Current 530 Limited Obligations Bonds Payable Capital Current 532 Obligations under Energy Efficiency Leases Capital Current 533 Qualified Zone Academy Bonds (Loans) Payable Capital - Current 541 General Obligation Bonds Payable Non-Capital Non-Current 07/22/2003 8:08:00 AM 9

10 GLC DESCRIPTION 542 Certificates of Participation Payable Non-Capital Non-Current 543 Three Mill Ten Year Notes Non-Capital Non Current 544 Transportation Notes Payable Non-Capital Non-Current 545 Sixteenth Section Notes Payable Non-Capital Non-Current 546 Shortfall Notes Payable Non-Capital Non-Current 547 Obligations Under Capital Leases Non-Capital Non-Current 548 Installment Purchases Loans Payable Non-Capital Non-Current 549 Other Loans Payable Non-Capital Non-Current 550 Limited Obligation Bonds Payable Non-Capital Non-Current 551 Compensated Absences Non-Current 552 Obligations Under Energy Efficiency Leases Non-Capital Non-Current 553 Qualified Zone Academy Bonds (Loans) Payable Non-Capital Non-Current 561 General Obligation Bonds Payable Non-Capital Current 562 Certificates of Participation Payable Non-Capital- Current 563 Three Mill Ten Year Notes Non-Capital Current 564 Transportation Notes Payable Non-Capital Current 565 Sixteenth Section Notes Payable Non-Capital Current 566 Shortfall Notes Payable Non-Capital Current 567 Obligations Under Capital Leases Non-Capital Current 568 Installment Purchases Loans Payable Non-Capital Current 569 Other Loans Payable Non-Capital Current 570 Limited Obligation Bonds Payable Non-Capital Current 572 Obligations Under Energy Efficiency Leases Non-Capital Current 573 Qualified Zone Academy Bonds (Loans) Payable Non-Capital Current 581 Compensated Absences Current Central Access developed this list. It was sent to the State Auditor s Office and Central Access was informed that this list would not be incorporated into the Accounting Manual. However the financial statements in Marathon that require the breakdown of long-term debt into the components listed above include the GLC numbers on the above list. The State Auditor s Office has indicated that it is acceptable to use these codes. These codes will be used in Fund Due to Other Governments / Interest Payable on Long Term Liabilities The Statement of Net Assets and Statement of Net Assets Fiduciary Funds contain a liability account titled Due to Other Governments. This account represents any funds that are due to agency funds and need to be shown as an external liability. The Statement of Net Assets includes a liability account titled Interest Payable on Long Term Liabilities. In order to present these accounts separately a unique GLC code must be used. These codes are as follows: 443 Due to Other Governments 590 Interest Payable on Long Term Liabilities 07/22/2003 8:08:00 AM 10

11 These codes will be used in fund 9999 only. Please note that this account is not in the Financial Accounting Manual. Invested in Capital Assets, Net of Related Debt The Statement of Net Assets contains an item under the Net Asset section entitled Invested in Capital Assets, Net of Related Debt. The amount shown for this item is Net Assets (Cost Accumulated Depreciation) any outstanding debt related to the acquisition of those capital assets. However GASB 34 states that significant unspent related debt proceeds at year-end should not be used in the calculation of invested in capital assets, net of related debt. In order to present invested in capital assets, net of related debt properly a unique GLC must be used. These codes are as follows: 582 Capital Debt amount needed to reduce capital assets Current 583 Capital Debt amount needed to reduce capital assets Non-Current These codes should be used in fund 9999 only. Please note that this account is not in the Financial Accounting Manual. 07/22/2003 8:08:00 AM 11