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Fund Accounting Basics Using the General Ledger

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?. Record cash, check, or credit card deposits View previously recorded transactions Approve pending journals

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Fund Accounting Basics Using the General Ledger

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  1. Fund Accounting Basics Using the General Ledger Presented by UHR Office of Learning and DevelopmentandAccounting Services Training and Outreach December 6, 2007

  2. Why use the GL? • Record cash, check, or credit card deposits • View previously recorded transactions • Approve pending journals • Make adjustments to correct errors in GL segment values • Run reports • Analyze assets, liabilities, and fund balance (net assets)

  3. General Ledger Module PTAEO GL STRING Cash, Checks, Credit Card Receipts Grants Accounting Module

  4. Entity Project Fund Source Object Code Org Future These charging instructions are NOT used in the General Ledger Project Task Award Exp Type Org PTAEO vs. GL String

  5. 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

  6. Why “Fund” Accounting • Resources are from a variety of sources • Must be used appropriately and not co-mingled • Requires unique identification and reporting

  7. Sources of Funds Patient Services Tuition and Fees Investment Income Grants Gifts Sales and Services Commonwealth of Virginia

  8. Uses of Funds Also… • Academic support • Institutional support • Student Services • Instruction • Research • Public service • Patient Services THE UNIVERSITY MISSION

  9. Fund Groups • Current Funds • Operations • Non-current Funds • Loan programs • Endowment activities • Capital outlay activities • Agency Funds • Custodial

  10. Restricted? Unrestricted? • Restricted current funds • Externallyimposed stipulations on their use • Unrestricted current funds • No external stipulations, but the Universitymay designate these funds for specific purposes

  11. Chart of Accounts • Used for classification of financial transactions • Identifies the fund, function, and organizational unit • Critical for institutional and managerial reporting

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

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

  14. Award Award Award Revenue Project Revenue Projects and Awards

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

  16. 3 Basic Types of Projects • 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.

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

  18. How do I find my GL string? General Ledger: GL String Entity Project Fund Source Object Code Org Future many exp types to one object code many awards to one fund source one to one one to one Project Task Award Exp Type Org Grants Accounting: PTAEO Many awards to one entity

  19. 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

  20. IS.FM_Award Common Attributes

  21. Entity (2 digit code) Project Fund Source Object Code Org Future GL String: Entity • Indicates the agency to whom the funds belong • Academic Division • Medical Center • UVa College at Wise • Agency (Foundation or custodial funds)

  22. Entity Matrix

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

  24. Entity Project Fund Source (4 digit code) Object Code Org Future GL String: Fund Source Indicates current or non-current, restricted or unrestricted funds

  25. Fund Sources Often Used With Deposits

  26. Entity Project Fund Source Object Code (4 digit code) Org Future Indicates type of funds deposited (income, gifts, etc.) GL String: Object Code

  27. Object Codes Often Used With Deposits

  28. GL String: Org Entity Project Fund Source Object Code Org (5 digit code) Future Org is the organizational unit receiving funds

  29. GL String: Future Entity Project Fund Source Object Code Org Future Reserved for future use

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

  31. Hints and Reminders • 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!

  32. Hints and Reminders (cont’d) • 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!

  33. Resources • Integrated System Web Pages Finance Links http://www.virginia.edu/integratedsystem/financeLinks/index.html How do I? http://www.virginia.edu/integratedsystem/howdoi/index.html# Processing Funds http://www.virginia.edu/finance/funds/Fr_RevenueProcess.htm • Discoverer reports IS.GL_Revenue Project Relationships IS.FM_Award Common Attributes

  34. Resources (cont’d) Call or email Accounting Services http://www.virginia.edu/finance/genacct/acctsvcstaff.html Call the ISDS Help Desk: 243-7550

  35. 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

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