Basic Fund Accounting

(1)

Basic Fund Accounting

ACCOUNTING SERVICES TRAINING & OUTREACH

BPDP INTERMEDIATE LEVEL

(2)

Class Objectives

Demonstrate knowledge of basic accounting terms

(3)

Class Benefits

What is a GL string and how is it different from my

PTAEO?

(4)

ACCOUNTING

System of recording financial

transactions

Uses an organized method

Necessary for analysis,

reporting, and decision

making

FUND ACCOUNTING

Emphasizes accountability

Segregating resources

Used by non-profit

orgs/governments, including

Higher Ed

(5)

Why “Fund” Accounting

•

Resources are from a variety of sources

•

Must be used appropriately and not comingled

(6)

Chart of Accounts

•

Used for classification of financial transactions

•

Identifies the fund, function, and organizational

unit

(7)

Integrated System

GL Chart of Accounts

(8)

Entity

‘Entity’ Segment Values

State Agency

Agency Code

Local

State

Outside

UVA

207

10

20

80

MED CTR

209

15

25

85

UVA WISE

246

16

26

86

(9)

Depositing funds to projects for outside

agencies or on behalf of non-UVA

organizations

Agencies ‘outside’ UVA include:

•Health Services Foundation

•Darden Foundation

•Law School Foundation

•Non-UVA groups or organizations whose money is held

by UVA (for scholarships or other similar purposes):

•Seven Society

•Colonnade Club

(10)

What is a Fund?

•

Self-balancing set of accounts

•

Categorized for specific purposes

•

Fund Groups

•

Current

•

Non Current

(11)

Fund Groups

Current Funds

◦

Operations

Noncurrent Funds

◦

Loan programs

◦

Endowment activities

◦

Capital outlay activities

Agency Funds

(12)

Examples of Current

Funds

Source

Current Fund Description

State appropriations Tuition and fees

State E&G funds Federal/State/Local governments

Industry

Grants and contracts Administrative distributions FA cost recoveries

Private donors Gifts

Endowment income Revenue & cost recoveries Sales and services

Auxiliary enterprises Royalties, licenses, etc. Intellectual property

(13)

Examples of Noncurrent

Funds

Source

Noncurrent Fund Description

Federal government Banks

Loan funds

Donors Endowment & similar funds (principal)

Donors, Auxiliary reserves, FA funds Capital outlay funds (construction, renovation)

Student groups Foundations

(14)

(15)

Restricted?

Unrestricted?

•

Restricted current funds

•

Externally

imposed stipulations on their use

•

Unrestricted current funds

•

No external stipulations, but the

University

may designate these funds for specific

purposes

(16)

Basic Financial Reports

Balance Sheet

Income Statement

Cash Flow

(17)

Balance Sheet

Assets

Liabilities

Owner’s

Equity

Assets

–

liabilities

=

Owner’s Equity

Net

Position

Net Position

(18)

Debits and Credits: Statement of

Net Position (aka Balance Sheet)

• Assets

• Cash

• Accounts

Receivable

• Investments

• Buildings/Equipme

nt

• Liabilities

• Accounts Payable

• Deferred Revenue

• Long-term Debt

(19)

Income Statement

Expenses

Revenues

Owner’s

Equity

Revenue

–

Expenses

=

Owner’s Equity

Change in Net

Position

Change in Net

Position

Statement of Revenues, Expenses, and

Changes in Net Position

(20)

Debit (to increase)

Debits and Credits: SRECNP

(aka Income Statement)

• Expenses

• Revenue

(21)

Recording Transactions

0

/

Debit

Credit

Journal Entry

(22)

Fund

Accounting at

UVa

(23)

Sources of Funds

Sales and Services

Patient

Services

Gifts

Tuition

and Fees

Commonwealth

of Virginia

Investment

Income

Grants

(24)

Sources of Funds and

Award Prefix

Fund

Source

Award Prefix

State E&G State appropriation Tuition and fees

SG Grants and contracts Federal/State/Local governments

Industry

G_ FA cost recoveries Administrative distributions FA Gifts

Endowment income

Donors DR, DU

EI, DI Sales and services

Auxiliary enterprises

Revenue and cost recoveries SS, LS SA, LA Intellectual property Royalties, licenses, etc IP

Agency Student groups

Foundations

(25)

Academic and Medical

Center Divisions

(26)

(27)

Revenue Projects

Used to record funds received from our sources

Contain the cash that supports award installments

(28)

Uses of Funds

Academic support

Institutional support

Student Services

Patient

Services

Instruction

Public Service

Research

(29)

Expenditure Projects

Used to record funds expended

◦

Contain the budgets for the work that is

being done

(30)

GA Charging

Instructions

(31)

Integrated System

Grants

Accounting

Deposits (cash, checks, credit cards) Accounts Receivable Recharge Centers Labor Distribution Purchasing Accounts Payable

General

Ledger

SIS Summarize PTAEO to GL String Budgets

Fixed

Assets

(32)

Combining Sources and

Uses

GL String

one to one one to one Many awards to one fund source Many expend types to one object code

(33)

P-A Mapping

RP0027

100323

100301

100323

Revenue Projects LA DR1 SA DR2 Awards 100323 Expenditure Projects 100272

General Ledger

(34)

P

1

GL

GA

Revenue

Expenditures

A

_ER00083

P

₁₀₁₃₉₅

P

₁₀₁₃₉₅

FM Lewis Botanical Garden

(35)

P

₁₁₇₉₇

SA – UCS

Resume

Marathon

A

_DR01340

P

₁₀₂₀₀₃

GL

GA

Revenue

Expenditures

P

₁₀₂₀₀₃

P

₁₀₇₁₆₅

P

₁₀₇₁₆₈

P

₁₀₇₁₇₃

P

₁₁₇₉₇₆

SA – UCS Gifts

SA – UCS

Employer Svc

SA – UCS

CLAS Svs

SA – UCS

Library

SA – UCS

NYRA

SA – UCS

Gifts

(36)

GL

GA

Revenue

Expenditures

AT-State Rev Award

AT-State Revenue

AT-Suite Lease

AT-Ticket Sales

AT-Concessions

A

_SA00001

P

₁₀₀₂₅₆

P

₁₀₀₂₅₇

P

₁₀₀₂₇₂

P

₁₀₀₂₆₂

P

₁₀₀₂₆₄

P

₁₀₀₂₅₄

P

₁₀₀₂₄₈

P

₁₀₀₂₄₅

(37)

GL

GA

Revenue

Expenditures

AT-P

₁₀₀₂₅₆

P

₁₀₀₂₈₆

P

₁₀₀₂₆₂

P

₁₀₀₂₅₇

P

₁₀₀₂₇₂

AT-Football AT- AT-Men’s & _AT-Men’s Ticket Sales Concessions Suite Lease

AT-State Rev Award AT-State Revenue

A

_SA00001

P

₁₀₀₂₅₄

P

₁₀₀₂₄₈

P

₁₀₀₂₄₅

RP

₀₀₂₈

A

_DR00127

P

100309 Restricted General Gifts AT-General Gifts

(38)

GL

Revenue

A

_SG00007

P

₁₀₁₁₃₄

P

₉₉₉₈₁₄

P

₁₀₃₄₉₁

P

₁₀₃₅₂₉

RP

₀₀₀₁

A

_SG00001

A

_SG00010

FI-State Gen Funds FI-State Non-ed S&S Revenue FI-Gen Fund Appropriation

P

₁₀₁₁₃₅

P

₁₀₀₀₈₇

P

₁₀₀₀₈₈

P

₁₀₀₁₄₆

P

₁₀₀₁₄₇

(39)

(40)

Budgeting

•

In order to spend money allocated to your project,

it must be funded, budgeted, and approved

•

The amount of the budget cannot exceed the

amount of funding for the project

•

Budget at the resource group (high level) or

resource (expenditure type)

(41)

Cash vs. Budget

Award Prefix

Cash

Budget

SG/SR

State funds

No

Yes

LG/LC

EI/DI

Institutional

funds

No

Yes

G_

Grants and

contracts

No

Yes

DU/DR

Gifts

Yes

SA/LA

SS/LS

Sales and

services

Yes

FA/IP/YY

Various

Yes

(42)

Training and Outreach

http://www.virginia.edu/finance/

Contact info:

• Lynn Galasso [email protected]

• Devin Herod [email protected]

(link)