OR, WHAT DO ALL THESE CODES MEAN, WHICH DO I USE, WHEN, AND WHY?

An Account Code Overview

What on Earth is a FOAP?

FOAP = Fund, Organization, Account and Program codes Example - 100000-41011-6370-60

Fund = Accounting Entity Organization=Budget Units or DepartmentsAccount = Assets, Liabilities, Net Assets,

Revenues, Expenses & TransfersProgram = Functional categoriesActivity = Optional code for use by departments

Fund Codes

Funds are used for certain reporting entities. Such as operating, restricted or endowment. The fund code is a six digit number.

Division of Funds 1XXXXX – Operating Funds – these fund are the large

operating fund used by ACU which are tracked by budget 20XXXX – Internally Restricted or Designated – These funds

are used when an activity sponsored by ACU is self supporting and needs to be tracked separately from the operating budget. An examples would be summer camps

Fund Codes (Continued)

Divisions of Funds (continued) 21XXXX – Restricted funds – these funds are used to track

the funds from a donor restricted gift. No expenses should be paid from these funds; they are only used to hold the gift until the funds need to be moved into operations

22XXXX – Restricted Scholarship Funds – these funds are used the track the funds from a donor restricted scholarship gift.

23XXXX – Endowment Earnings to be used for operations. The balances from these funds are transferred to operational accounts as needed

Fund Codes (Continued)

Divisions of Funds (continued) 3XXXXX – Grants and Contract Funds 5XXXXX – Endowment Funds – Used by Investment

Services to track individual endowments given to the University

7XXXXX – Capital Projects Funds – Used for large remodeling or building projects

8XXXX – Agency Funds – Used to track funds that do not belong to ACU. Examples are student organizations and entities which ACU serves as fiscal agent

Organization Codes

Organization Codes are used to track revenues and expenses for a particular department.

The budget for a department is tracked using the organization codes

Account Codes

Accounts Codes are four digit codes used to track assets, liabilities, net assets, revenues, expenses and Transfers

Division of Account Codes 1XXX – Assets 2XXX – Liabilities 3XXX – Net Assets 4XXX – Revenues 5XXX – Salaries and Benefit Expenses 6XXX – General Expenses 8XXX – Transfers

Account Codes

Account codes are used by everyone on campus and are generally not specific to a particular department or activity. For example account code 5006 is used for exempt salaries for all departments

See next slide for how to view a listing of account codes

Account Code Hierarchy

You can look at listing of account codes –

- Online using FTVACCT; searching is available through query

- Print report FGRACTH; can limit by using account type code

Basic Financial Statements

Statement of Financial Position (Balance Sheet) Banner Query Form – FGITBSR

Statement of Activity (Income Statement) Banner Query Form – FGIBDSR or FGIBDST

Balance Sheet Elements

Assets – Account Codes 1XXX - Includes cash (1090);do not use

- “D” increases assets; - “C” decreases assets

Liabilities – Account Codes 2XXX

Net Assets – Account Codes 3XXX- Net income and expenses- Warning: NEVER,EVER USE

ASSETS = LIABILITIES + NET ASSETSOR

1XXX = 2XXX + 3XXX

Balance Sheet Principle

Income Statement Elements

Revenue – Account Codes 4XXX

Expenses – Account Codes 5XXX

(Salaries and Benefits)

Expenses – Account Codes 6XXX (Operating Expenses) Transfers – Account Codes 8XXX

YES!

Are There Any Special Situations Or Rules I Need

To Know?

Budget Pooling Account Codes

Pooling accounts are 3 digits for operating expenses – related only to budget dollarsExample: 630 – General Expenses

Used to enter budget transactions

Can not be used for actual transactions

Offset budget code – 675; will be a credit(-)

Budget Pooling Hierarchy

Example of Pooling Hierarchy630 – General Expenses (Budget Pool)

6380 – Postage6382 – Printing6386 – Professional Dues6440 – Supplies - Office

Budget Pool Codes

Budget Pool Codes For Restricted Accounts- Offset budget code is 675

- Will be a credit(-) for an expense

- Will be a debit(+) for a revenue

Transfer Entries (2 Types)

Type 1 - Formal Transfer Between Departments (Transfer In/Transfer Out)

Use code 8105 for transfers in & code 8205 for transfers out - cannot mix with any other account codes

Transfer In = credit(-); Transfer Out = debit(+) If a transfer from one fund is necessary to pay for

an expense in another fund that has not yet occurred (or has not yet been recorded in the other fund), please make a formal transfer as described above.

Transfer Entries

Type 2 – Transfers among same category of accounts for different departments

Can be done among expense codes except those between 6800 & 6899 (use as incoming and outgoing)

Can be done among revenue codes (use as incoming and outgoing)

This method is useful when a transaction has already occurred but was coded to the wrong account/fund.

NOTE – Academic depts transferring from restricted accounts to operations must use codes 8105 and 8205

Payments To Other Departments

Some departments charge other departments for services provided (interdepartmental services revenue).

The department providing services often thinks of transaction as revenue and tries to post to a revenue code – 4XXX; this should be avoided.

The transaction is actually another form of transfer

The department providing services should have a special expense account code – for example, 6962; the department providing services should record the transaction as a negative expense to this code.

Ways To Pay Other Depts.

Dept 1 - Dr. 8200 Correct Dept 1 - Dr. 8200 IncorrectDept 2 - Cr. 8100 Dept 2 - Cr. 6353 (transfers out of

balance)

Dept 1 - Dr. 6300 Correct Dept 1 - Dr. 6803 IncorrectDept 2 - Cr. 6370 Dept 2 - Cr. 6370 (crossing budget

pools)

Dept 1 - Dr. 4605 Correct Dept 1 - Dr. 6300 IncorrectDept 2 - Cr. 4540 Dept 2 - Cr. 4540 (crossing rev &

exp)

Dept 1 - Dr. 6899 CorrectDept 2 - Cr. 6899

Revenue or Expense?

Revenue must be recorded as revenue (except in the limited instance noted

earlier for interdepartmental services revenue)Expense must be recorded as expenseRevenue may not be moved to reduce

expensesBudget adjustments should increase both

revenue and expense (net budget should not change)

Example of Budget Revision

Through ThroughRevenue

8105In a single department:Funds spent Dr. 6300 Dr. 6300

Cr. Cash Cr. CashFunds received Dr. Cash Dr. Cash

Cr. 4540 Cr. 8100Budget revision Dr. 630 Dr. 630

Cr. 4540 Cr. 810

Scholarships

Scholarships are expenses but not recorded in the category of expenses

Treated as a contra or reduction of revenues

Special group of account codes – Unfunded – 4091(Gen); 4092(Athletics) Funded – 4096(Gen); 4097(Athletics) Funded – 4098(Grants)

Agency Accounts

Identified by fund codes beginning with “8”, or

8XXXXXDo not generate income or expense for the UniversityAll transactions recording in special group of

liability account codes-2480 through 2492Include student clubs, Pell, Perkins Loans

Questions or Comments?

Call us anytime at ext. 2795Or email at fmsbrje@acu.edu