ACCOUNTING
INFORMATIONAL SESSION
College of Arts & Science
July 27th & 29th, 2004
By Dalana Moore
AGENDA
Fund Accounting
 Fund Definitions (Handout)
 Fund Transfers
 Consolidated Fund Valid Account List
 MPathways Relationships (“Flower” Handout)
 Chartfield Definitions (Handout)
 Shortcodes vs. Chartfields (Handout)
 Questions

FUND ACCOUNTING

What is Fund Accounting?

The University is a non-profit, governmental entity, therefore
it has to follow the fund accounting principles.

The University receives money from many different sources.
The source determines what Fund the money will be
deposited into. The Fund also dictates what kind of
expenditures will be allowable.

Unrestricted vs. Restricted Funds

Unrestricted Funds - resources the University receives in
which the donor or grantor has not made stipulations regarding
their use. However University and IRS rules do apply.


Examples: General, Designated, & Auxiliary Funds
Restricted Funds - resources the University receives where a
donor or grantor specifically defines the purpose, program,
Department, or School/College.

Examples: Gift and Sponsored
Fund Definitions


The University’s major fund groupings for internal
operating and reporting purposes.
Funds include:
 General - 10000
 Expendable Restricted – 20000, 25000, 30000
 Designated – 40000
 Auxiliary – 5xxxx
 Student Loans – 6xxxx (Ann Arbor Only)
 Endowment and Other Invested Funds – 7xxxx
 Plant – 8xxxx
 Agency - 90000
Fund Transfers

Why can’t you do transfers between
Funds?
By moving money from one Fund to
another, it changes how the money can be
spent.
 When the University is audited, we have to
be able to confirm that each Fund spends
its money for the correct type of
expenditures defined by the Fund.

CONSOLIDATED FUND VALID
ACCOUNT LISTING


This list defines what
revenue and expense
accounts are allowed
and not allowed across
all Funds.
You can open the list
(Excel) from the web
from the Financial
Operations home page.


www.umich.edu/~finops/
Under “General
Information” button, under
“Valid Account Listing”.
MPATHWAYS RELATIONSHIPS

“Flower” Diagram

This illustrates the relationships between
the different MPathways Systems.





Financial
Procurement
HRMS/Payroll
Student (only Ann Arbor)
Accounts Receivable
CHARTFIELD DEFINITIONS

What are chartfields?

Budget Period – The fiscal year we are currently in.


Budget Period is July 1st – June 30th
BP xxxx = June 30th calendar year
(EX: June 30, 2004 = BP 2004)






Fund - Where your money comes from and how that money
can be spent.
Dept ID - Who the money belongs to.
Program - How the Dept. wants to keep track of their money.
Project/Grant - A further definition of how the Dept. wants to
keep track of their $.
Class - What the Dept. is using the money for. (Handout)
Account - What type of transaction it is.
SHORTCODES VS. CHARTFILEDS

What drives transactions in MPathways?

Chartfield – describes how the University will capture, accesses, and
report its financial information.



By using a series of individual values which, in a sequence, describes a
specific activity within the University.
Shortcode – is a six digit number that describes a specific chartfield
relating to Payroll, a specific Servicing Unit, or Gift Processing.
Chartfield conversion example/handout.

The Shortcode is like a “word” and the Chartfield is like the
“definition”.
SHORTCODE = CHARTFIELD
237077 = 10000/953400/ADMIN/11000

MPathways runs by the “definition” not the “word”.
QUESTIONS