FINANCIAL SYSTEM ENHANCEMENTS CHART OF ACCOUNTS FUNDAMENTALS

Transcription

1 FINANCIAL SYSTEM ENHANCEMENTS CHART OF ACCOUNTS FUNDAMENTALS Please select the interactive polling option you would like to use. From your laptop: Navigate to PollEv.com/chartofaccou508 From your cell: Send a text message to with the message CHARTOFACCOU508 1

2 AGENDA Learning Objectives General Ledger Account Structure Grants Account Structure Conversion Tools Third Party Systems Next Steps 2

3 COURSE OBJECTIVES By the end of this session you will be able to: Define concepts and terms of the Chart of Accounts Understand Hierarchies & Reporting Describe the General Ledger and Grants Account Structures How to find and use tools for the new Chart of Accounts How to use the new Chart to code transactions 3

4 CURRENT CHART OF ACCOUNTS Fund Type (3) Fund (4) Organization (5) Natural Account (6) Project (9) Task (5) 4

5 KEY TERMS & CONCEPTS General Ledger (GL): System of record for all financial transactions Chart of Accounts Structure: The COA Structure identifies how you will account for transactions Cost Center: Segment values used together in a transaction (excludes natural account/object code) Existing: Fund Type Fund Organization Project Segments: Segments are components of cost center, intended to track different information Values: the range of numbers defined for each segment 5

6 CURRENT COA STRUCTURES Current account string (in BobcatBUY, Concur, PEDS, etc.) Fund Type (3) Fund (4) Organization (5) Natural Account (6) Project (9) Task (5) Account string is actually posted as different account strings in GL and Projects GL COA string Fund Type (3) Fund (4) Organization (5) Natural Account (6) Project (9) Projects COA string Project (9) Task (5) Expenditure Type (equivalent to Nat. Account) (30) 6

7 WHAT IS A HIERARCHY? Hierarchies: structure for summarizing segment values. A Level Parent values summarize child values for reporting purposes. Values begin with a letter followed by numbers but length varies depending on segment length. These can only be used for reporting C Level B Level C Level C Level Child values are used for posting transactions and entering budgets and are always numbers, but length varies depending on segment length. CHILD CHILD CHILD CHILD 7

8 REVIEW QUESTION Which value can ONLY be used for reporting? A. Parent B. Child C. Grandchild 9

9 REVIEW QUESTION If I incur an expense that relates to my entire Planning Unit, can I charge it to a parent value? A. Yes B. No 11

10 LESSON SUMMARY Terms and definitions under current and new charts Introduced new concept of two Chart Structures General Ledger Account structure and segments Hierarchies Each segment has a unique hierarchy Parent and child values within the hierarchy and how they are used for reporting and transactions 12

11 General Ledger Chart of Accounts 13

12 LESSON OBJECTIVES By the end of this lesson you will be able to: Define each Segment in General Ledger Structure Determine how each Segment is used and why it exists 14

13 GENERAL LEDGER ACCOUNT STRUCTURE How is the transaction summarized? Example: Ohio University, OU Foundation How is the transaction funded? Example: Unrestricted, Sponsored Projects, etc. Who administers the funds? Example: Organization in a department/ planning unit. What is the internal purpose of the transaction Example: Defined by Planning Unit for tracking purposes Why is the transaction occurring (govt or accounting purpose)? Example: Instruction, Public Service Fundraising What kind of transaction is taking place? Example: Tuition & Fees, Salaries, etc. 15

14 Identifies how the transaction is summarized for financial reporting. Represents major components of the University requiring separate balance sheet/external reporting (e.g. legal entities, auxiliary operations, etc.) such as Ohio University or OU Foundation. Values will be the same across all Planning Units. Segment Value AssociatedEntity 10 General Auxiliaries 50 OUF General 80 Student Orgs ENT 16

15 Identifies how the transaction is funded. Identifies the source of funds classified by restrictions. Values will be the same across all Planning Units. Source values used by Planning Units will generally belong to one of two categories: Unrestricted Operations and Restricted Expendable Unrestricted Operating: University funds from operations that have no external restrictions that limit spending Designated funds are unrestricted operating funds that departments chose to internally designate for specific spending Designated purposes Restricted Expendable: funds received from external parties with specific spending restriction Restrictions are imposed by sponsors and donors ENT SOURCE 17

16 SOURCES OF FUNDS HIERARCHY Total University Unrestricted (UNR) (B10000) Temporarily Restricted (TR) (B40000) Permanently Restricted (PR) (B70000) Unrestricted Operations (D10000) Restricted Expendable (D40000) Unrestricted Operations & Restricted Expendable are most commonly used by Planning Units. SOURCE 18

17 SOURCE: UNRESTRICTED Unrestricted (UNR) (B10000) Unrestricted Operating funds are University funds from operations that have no external restrictions that limit spending. Common Unrestricted Sources: Value Source Name Unrestricted PACE Auxiliary Unrestricted Operations (D10000) Unrestricted (E10000) Designated (E11000) UNR Endowment Distributions (E13000) Auxiliaries (E14000) Repair & Replacement Reserves Unrestricted Nonoperating (D20000) Internal Bank Century Bond Quasi Endowment Corpus SOURCE 19

18 SOURCE: UNRESTRICTED DESIGNATED Designated funds are unrestricted funds that departments choose to designate for specific spending designated purposes. Also referred to as internally restricted Operating reserves (aka carryforward) are considered designated funds Common Designated Sources: Value Source Name Workshops/Conferences Course Technology Fees Operating Reserves Unrestricted Operations (D10000) Unrestricted (UNR) (B10000) Unrestricted (E10000) Designated (E11000) UNR Endowment Distributions (E13000) Auxiliaries (E14000) Repair & Replacement Reserves Unrestricted Nonoperating (D20000) Internal Bank Century Bond Quasi Endowment Corpus Repair & Replacement Research Incentive, Startup Funds, Internal Awards, Honors Tutorial are considered Designated Sources but are tracked in the Grants Accounting Module. SOURCE 20

19 SOURCE: RESTRICTED EXPENDABLE (SPONSORED) Restricted expendable funds represent funds received from external parties with specific spending restrictions. Sponsored Projects When sponsors engage the University in agreements, the scope of the project and restrictions on spending are specified in the sponsored agreement. Sponsored funds are categorized by source of funds (Federal, State, Local, Private Sources, etc.). Sponsored Financial Aid Federal Workstudy, PELL, SEOG, State OCOG Value 44XXXX 45XXXX Source Sponsored Projects Sponsored Financial Aid Restricted Expendable (D40000) Temporarily Restricted (TR) (B40000) State Appropriations (E40000) Gifts (E42000) Endowment Distributions (E43000) Sponsored Projects (E44000) Sponsored Fin Aid (E45000) Restricted nonexpendable (D50000) Endowment Corpus Planned Gifts Pledge Accounting X Represents uniquely named values for specific gifts, scholarships, and award programs SOURCE 21

20 SOURCE: RESTRICTED EXPENDABLE (FOUNDATION FUNDS) Received from external parties with specific spending restrictions. A discretionary gift can be spent in its entirety, but must be spent in accordance with donor purposes. (E42000) If a gift is specified as endowed, the gift is to be invested in perpetuity and the endowment distribution/earnings can only be spent for the donor s intended purpose. (E43000) Restricted Expendable (D40000) Temporarily Restricted (TR) (B40000) State Appropriations (E40000) Gifts (E42000) Endowment Distributions (E43000) Sponsored Projects (E44000) Sponsored Fin Aid (E45000) Restricted nonexpendable (D50000) Endowment Corpus Planned Gifts Pledge Accounting SOURCE 22

21 SOURCE: RESTRICTED EXPENDABLE (FOUNDATION FUNDS) The sources are assigned based on donor restrictions: Type of funds 42 Restricted Gifts 43 Endowment Distribution First 2 digits Other Purpose Discretionary/ Gen Support Chairs/Professorships/Lectureships Research Scholarships, Fellowships, Awards Capital Improvements/ Renovations Last 4 digits SOURCE 23

22 REVIEW QUESTION The University receives a sponsored award from the National Science Foundation? A. Unrestricted B. Restricted C. Designated 25

23 REVIEW QUESTION The Dance department receives a discretionary donor gift of $5,000 to use for whatever they want, which of the below sources would be valid? A B C D

24 6 digit value defined as: Identifies who administers the funds, such as a Planning Unit or department within Planning Unit. Organization is the lowest level value of University structure. Planning Units can consist of multiple Departments and Departments can consist of multiple organizations. Values will be different in each Planning Unit. Planning unit = first 2 digits 10 A&S 14 Engineering 25 - HCOM Location = third digit 0 Athens 1 Dublin 2 Cleveland 9 Regionals Primarily tracks activities of extension campuses Department & orgs = last 3 digits Numbered and summarized by planning units ORG 28

25 ORGANIZATIONS Track departments with greater granularity CURRENT CHART: Dean s office may have one org but break out into multiple projects (Fundraising, Communications, IT Support, etc.) Programs in the Dean s Office were often tracked as projects NEW CHART: Each group would be an org that would roll up to a Dean s Office parent Financial Approvers Specify approvers by Organization values or parent values, which will align the approval for spending with the organization that is authorized to administer the funds ORG 29

26 HOW IS THE HIERARCHY STRUCTURED? Executive (A & B level) University Planning Unit (C Level) Extension Campus (D Level) If applicable Departments (E level) Organization values Aviation (E14020) Aviation (140200) Athens Colleges and Schools (B10000) Russ College of Engineering (C14000) ISE: Industrial Systems Engineering (E14070) ISE: Industrial Systems Engineering (140700) Other Departments (E14xxx) Planes (140210) CASTLE: Center for Advanced Systems & Transportation Logistics Eng. (140710) ORG 30

27 REVIEW QUESTION If you want to view a report that summarizes transactions at the planning unit level, which level in the hierarchy would you pick? 1. Level B 2. Level C 3. Level E 32

28 ACTIVITY & FUNCTION SEGMENTS Both the Activity Segment and the Function Segment track the purpose of the spending ACTIVITY allows planning units to define purposes of spending related to their specific needs. FUNCTION tracks high level spending classification as defined by the government or accounting standards (e.g., instruction, research, etc.). ACTV FNC 33

29 Describes the internal purpose of the transaction. Allows departments to identify internal purposes for spending and associated revenues. Shared values are defined at the University level. Each Planning Unit has a unique range of values to define. Added to assist in reducing shadow systems for monitoring and reporting. Segment Value Activity Range/Definition 0000 Unspecified University defined codes (e.g., Homecoming, Halloween, Graduation, Recruiting-Faculty, Recruiting-Staff, Recruiting- Students, etc.) Arts & Sciences College of Business ACTV 34

30 Defines why the transaction is occurring (Gov t or Accounting). Defines government and accounting purposes for spending. Only used with expense object codes Required for each expense transaction on both University and Foundation accounts. Function is not a required value for balance sheet and revenue accounts. Values are the same across all Planning Units. Segment Value Function Description 10 Instruction 25 Sponsored Research 30 Public Service FNC 35

31 FUNCTION USAGE Most Organization values have a default/primary Function value Value Name Usage 10 Instruction Academic Department 40 Academic Support Library 75 Student Services Student Services/Student Affairs 92 Fundraising & Development Raise money Deans Office Often expends money for multiple purposes or FUNCTIONS Project-Task-Award: Function is assigned at the time the Award is setup FNC 36

32 USING FUNCTION Segment Value Function Description Example 10 Instruction Sally, the departmental admin, purchases an ipad and white board markers for Professor Brown to teach Psychology University Research The VPR office is accepting proposals for Research Challenge awards. 40 Academic Support HSP hires a position to provide support for classroom technology. Alden Library operating costs. 42 Deans & Provost The office administrator purchases office supplies for use within the Dean s office. 92 Fundraising & Development The Chair Linus travels to meet with a group of donors to talk about research occurring within the Civil Engineering department. FNC 37

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34 REVIEW QUESTION If a Dean is traveling to meet with a group of donors, which Function should be used? A. 42: Deans & Provost B. 92: Fundraising and Development C. 40: Academic Support 39

35 Defines the what kind of transaction is taking place and delineates the values by account type for Assets, Liabilities, Fund Balance, Revenues, Expenses and Transfers. Used to further define the nature of a transaction; for expenses it is what is purchased while revenues define the activity that generates the income Values are the same across all Planning Units. Formerly Natural Account. OBJ 40

36 HOW OBJECT IS STRUCTURED The first digit of the Object represent the major groupings for Assets, Liabilities, Fund Balance, Revenue, Transfers and Expenses. Segment Value Balance Sheet 1xxxxx 2xxxxx 3xxxxx Income Statement 4xxxxx 6xxxxx 7xxxxx 8xxxxx Type of Account Assets Liabilities Fund Balances Revenues Funding Transfers Expenses Investment Transfers OBJ 41

37 INTERNAL CHARGES To provide better visibility into internal charges (IC), betterdefined Object segments have been created for internal charges (IC). Expense Account Revenue Account Segment Descriptions IC Postage IC Printing Services IC Equipment Rentals IC codes always start with 78 or 48 and will roll to appropriate parent (revenue or expense). OBJ 42

38 FUNDING TRANSFER OBJECTS Used to identify the movement of funds for specific activities or expenses Values in the 6XXXXX range (between Revenues and Expenses) to represent that each transfer can be viewed as both a Revenue and Expense Revenue for unit receiving Expense for unit funding Examples Object Code B Level Value Name Funding Transfer Funding Transfer - Within Units Funding Transfer Funding Transfer - Across Units The same object code is used on both sides of a transfer entry. OBJ 43

39 INVESTMENT TRANSFER OBJECT CODES Transfers to/from non-operating funds for specific purposes (i.e., funding a capital improvement account or moving funds from an operating reserve) Examples Object Code B Level Value Name Investment Transfers Transfer to/from Operating Reserve Investment Transfers Repair & Replacement Transfer Investment Transfers Transfer to Fund a Capital Improvement Investment Transfers Transfer to Quasi Endowment The same object code is used on both sides of a transfer entry. OBJ 44

40 OLD TO NEW OBJECTS In the new chart of accounts, there is some consolidation of current natural account codes. In the examples below the what (registration fees) will be separated from the why (program, camp, clinic, gala, etc.). Value Current Natural Account Description Value New Object Code Description Program Registration Fees Camp Clinic Registration Fees Athletic Event Registration Reunion Event Registration General Event Registration Gala Registration Registration Fees Registration Fees Registration Fees Registration Fees Registration Fees Registration Fees OBJ 45

41 OLD TO NEW OBJECTS Currently, there are certain natural account codes that are not descriptive enough and will map to an Object that will be a conversion only code in order to see transaction history. The new Object Codes will be much more descriptive. Value Current Natural Account Description Value New Object Code Description Supplies Travel Living Expenses Supplies (Conversion Only) Travel (Conversion Only) Info & Communications Info & Communications (Conversion Only) Leverage the Object Code Lookup tool in OBI to view new object codes. OBJ 46

42 TRAVEL OBJECT CODES OBJECT CODE OBJECT DESCRIPTION Airfare - Domestic Charter - Air Transportation - Domestic Ground Transportation - Domestic Charter - Ground Transportation - Domestic Lodging - Domestic Meals & Incidentals - Domestic Travel (Conversion Only) Note: is no longer travel expense. In the new chart, is classified as a revenue code. OBJ 47

43 OBJECT CODE HIERARCHY A70000 Expenses B70000 Compensation C70000 Salaries & Wages D70100 Faculty Salaries Professor Associate Professor Assistant Professor D70300 Administrative Salaries D70400 Classified NBU Salaries C70900 Benefits A70000 Expenses B71000 Supplies & Services C71100 General Supplies & Services Office Supplies Promotional Items C71200 Instructional & Research C71300 Information & Technology B72000 Professional Services B73000 Occupancy & Maintenance B74000 Capital Costs B75000 Student Aid OBJ 48

44 REVIEW QUESTION Which object code would you select for an airline ticket? A B. C C

45 LESSON SUMMARY The General Ledger Chart of Accounts is comprised of 6 segments Each segment has a set length of digits that tracks specific purposes Entity: 2 digits, tracks the how the transaction is summarized Source: 6 digits, tracks how the transaction is funded Org: 6 digits, tracks who administers the funds Activity: 4 digits, tracks planning unit specific purpose for the transaction Function: 2 digits, tracks why transaction is occurring (for external reporting) Object: 6 digits, used for tracking the type of transaction 51

46 Grants Accounting Chart of Accounts 52

47 LESSON OBJECTIVES By the end of this lesson you will be able to: Describe what the Grants Module is used for Define each Segment in the Grants Accounting Structure Describe Award Numbering 53

48 HOW IS PROJECTS DIFFERENT FROM GRANTS Project Accounting tracks activity based on Project - Task Utilizes different tasks to differentiate sources of external and internal funds match Sometimes multiple projects represent awards from different external sources Grants Accounting tracks activity based on Project - Task - Award Task represents work breakdown structure for Project Award represents various sources of funding (both external and internal) 54

49 HOW WILL THE GRANTS MODULE BE USED? Sponsored Award: externally funded sponsored awards. National Science Foundation or National Institute of Health Sponsored Cost Share Award: internally and externally funded, both mandatory and voluntary committed. Mandatory: Salaries and wages, and benefits Voluntary Committed: Equipment Capital Projects: internal and externally funded and allow different project funding options. Construction projects for buildings, other infrastructure and capital improvements Internal Awards: managed by the Planning Units for internally funded awards. Research incentives, start ups, research challenge, departmentally funded for research supplements, professional development for faculty, honors tutorial 55

50 PROJECT-TASK-AWARD (PTA) STRUCTURE The new Grants Accounting Chart of Accounts (COA) structure will be comprised of four segments, each with a defined segment length and set of possible values. Grants COA Structure Project (5) Task (up to 5) Award (7) Expenditure Type (30) Defines body of work Work breakdown structure. Who or how it is being funded. Object Code with description For activity tracked in Grants, you will ONLY use the PTA structure when charging transactions. 56

51 AWARD SEGMENT: SMART NUMBER Project numbers in the current chart used prefixes to identify types of funds In the new Chart, the Award is seven digits and the first number identifies the type of award: Sponsored 1 or 2 Sponsored Cost Share 3 Internal Award 4 Capital 9 AWARD 57

52 GRANTS TRAINING Grants Accounting Fundamentals held 10/24-11/2 Course Content: Purpose and uses of the Oracle Grants Accounting Module Project-Task-Award Structure Auto-accounting from Grants to the General Ledger Impact of dates and cost schedules on transactions Review OBI Grants Dashboard 58

53 Conversion and Tools 59

54 LESSON OBJECTIVES By the end of this lesson you will be able to: Define a Dashboard Describe the support tools available: Conversion Look up, Object code look up and Account Validation tool Describe cross validation rules Code transactions in third party systems 60

55 ORACLE BUSINESS INTELLIGENCE (OBI) DASHBOARDS Using OBI Dashboards to simplify reporting and campus access to data Each dashboard contains multiple dashboard pages (tabs) to meet the variety of user needs Reporting Inquiry access Ability to export both reports aa well as report and transactional data Developed tools to assist in using the COA Conversion look-up Cost Center and Object Code Look-ups 61

56 CONVERSION LOOKUP Conversion Lookup is one of the tabs on our General Ledger (GL) dashboard Two sections of prompts and output: cost center and Natural Account to Object Can search for all costs centers within an org or planning unit OR a specific cost center 62

57 CONVERSION LOOKUP GL Dashboard Results 63

58 CONVERSION LOOKUP Project Dashboard Results 64

59 OBJECT CODE LOOKUP 65

60 FUNDS AVAILABLE VIEW Provides a quick status of available funds by Cost Center Entity Source Organization Entity Source Organization- Activity Entity Source Organization Activity Function Can run for a single cost center or a group of cost centers specified by your prompts Can select either parent values or ranges of values. 66

61 HOW DO SEGMENTS WORK TOGETHER? Validation rules control and limit how segment values can be combined in forming an account string Examples: Culinary org must be used with Entity 21 (Culinary Svcs) Auxiliary org must use Source (Auxiliaries) Scholarship object codes must use Function 72 (Scholarships, Discounts & Allowances) Planning Unit can only use their Activity Code range 67

62 ACCOUNT VALIDATION TOOL Interactive tool that allows the user to validate a group of cost centers (via an Excel upload) or a single cost center via the screen. 68

63 Third Party Systems 69

64 BOBCATBUY: SELECT ACCOUNT TYPE General Ledger Grants 70

65 BOBCATBUY (CONTINUED) Split costs between General Ledger and Grants: Purchase Requisition Validation will continue to validate General Ledger and Grants strings Approvals will be based on Organization values 71

66 CONCUR First we select Policy: For Grants: Produces narrowing list of values: select Project> shows Tasks on Project> shows Task Organization on Task> shows Awards funding the selected Project/Task For GL: Allows you to select values for each segment. 72

67 CONCUR (CONTINUED) The system continues to display lists of cost centers that the user has previously used. If you select one, the system will populate the individual segments. Approvals will be based on Organization values. 73

68 WORKFORCE To Charge to GL, populate Entity Source Organization Activity Function Object To charge to Grants, populate Object: Project/Task/Award Nightly edit of account strings to send to supervisors. 74

69 LESSON SUMMARY An OBI Dashboard is a set of pages/tabs used to simplify reporting and campus access to data Conversion LookUp in OBI will allow you to view old strings to new strings. Object Code LookUp will aid in finding the appropriate object code by name, description of category. Validation rules control and limit how segment values can be combined in forming an account string The Account Verification Tool will tell you if your account string is valid or not and why (if not valid) The only change in process within BobcatBUY, Concur, and Workforce is entering a General Ledger string or a Project-Task-Award (Grants) String 75

70 NEXT STEPS Possibly attend Grants Fundamentals and/or Accounting with the new COA Reporting & Casual User Training delivered in December Cutover schedule and Support Strategy will be communicated in November Go Live planned for December 12 76

71 QUESTIONS? FSE Change Network Reference Materials 1. COA Quick Reference Guide 2. COA Website Additional quick reference guides and training support materials will be distributed between now and go-live. Your Planning Units CFAOs and Change Network Representatives will be communicated new account numbers as appropriate. 77

72 FUNDS AVAILABLE VIEW Provides a quick status of available funds by Cost Center in two different views: Revenue Expense View Traditional FAV View Can drilldown to Income Statement or list of object code balances. Can ultimately drilldown to transactions. 78

73 FAV DRILLDOWN: INCOME STATEMENT From any FAV cost center, can drill to a Income Statement presentation Rows can be expanded to OC level 79

74 FAV DRILLDOWN: OBJECT CODE LIST Provides a list of all object codes for the selected cost center: Can drilldown to transactions posted to the object code. 80