UNDERSTANDING THE CHART OF
ACCOUNTS
PREPARED BY: KELLY MURRAY-SCOTT
LAMBTON COLLEGE FINANCE DEPARTMENT
NOVEMBER 17, 2009
REVISED: SEPTEMBER 25TH, 2014
GENERAL LEDGER ACCOUNT STRUCTURE
Department (1st 4 digits of the cost centre)
1-701004-44200
Fund
Cost Centre
Object
Operating – International/Wuxi – Office Expense
FUNDS
•
1 – Operating
•
•
2 – Capital
•
•
Used to track funds that are restricted for specific uses (i.e. scholarships, conferences, etc.)
6 – Ancillary
•
•
Used for revenue and expenses generated by the Lambton College Foundation and Alumni
5 – Restricted
•
•
Used for tracking capital spending – equipment, furniture, buildings, etc.
4 – Foundation
•
•
Used for the majority of academic and administrative departments
Used for the bookstore, parking and residence accounts
7 – Fireschool
•
Used for all activity within the fireschool as it pertains to the industrial activity
DEPARTMENTS/COST CENTRES
Department Ranges
Examples
000’s – Balance Sheet
000000 – Assets
010’s – Restricted Funds
010100 – TSA Bursaries
040’s – Foundation
040002 – Alumni Association
071’s – Fireschool
071200 – Hazmat Program
200’s – Student Services
200000 – Registrar’s Office
400’s – Administrative Services
401000 – President’s Office
400’s – Human Resources/Facilities
402000 – Payroll Department
500’s – Academic (Post Secondary)
510000 – Business
600’s – Academic (Post Secondary)
670000 – Practical Nursing
700’s – Contract Education
748000 – ITP Program
800’s – Miscellaneous Contracts/Ancillary
842000 – Literacy & Basic Skills
900’s - Capital
906000 – Facilities Renewal
OBJECTS
Classes (1st Digit of Object)
0xxxx – Assets
Examples of Subclasses
46xxx – Fees
1xxxx – Liabilities
2xxxx – Equity
4xxxx – Revenue*
48xxx – Revenue – Contract Services
40xxx – Salaries Fulltime Academic
44xxx – Instructional Expenses
4xxxx – Expenses*
* These are the objects end users should be familiar with
REVENUE
Revenue accounts should only be
used to record funds earned by
the College. Revenue accounts
typically maintain a credit
balance. Expenses should not be
posted to revenue accounts
except for anomalies like
deferred revenue adjustments.
The most common revenue accounts include:
40xxx
41xxx
42xxx
Revenue received from MTCU
44xxx
for programs run by Lambton
44xxx
45xxx
46xxx – Any fees paid by students for services provided by
the College
47xxx – Revenue earned from ancillary operations
48xxx – Revenue earned from delivering contracted services
49xxx – Revenue earned from miscellaneous sources (i.e. the
Foundation)
EXPENSES
Expense accounts should only
be used to record amounts
payable by the College.
Expense accounts typically
maintain a debit balance.
Revenue should not be posted
to expense accounts except for
anomalies like recovery/
reimbursement for expenses
(i.e. 44090).
The most common revenue accounts include:
40xxx – FT Academic Salaries
41xxx – FT Administrative Salaries/PT Academic
42xxx – FT/PT Support Salaries
43xxx – Benefits
44xxx – General and Instructional Expenses
45xxx – Building and Equipment Maintenance
46xxx – Fees and Contracted Services
47xxx – Expenses Related to Premises
48xxx – Expenses Related to Equipment
49xxx – Miscellaneous Expenses
COMMON OTHER THAN FULL-TIME PAYROLL
ACCOUNTS
Part-time/Partial Load/Etc.
Contract Services (Payroll and Non-Payroll)
41100 – Academic Partial Load
46501 – Contract Services Instructional Payroll
41200 – Academic Part-time
46544 – Contract Services Instructional Benefits
41300 – Academic Sessional
46502 - Contract Services Curriculum Development Payroll
41900 – Administrative Part-time
46545 - Contract Services Curriculum Development Benefits
42200 – Support Staff Overtime
46503 - Contract Services Co-Ordinator Payroll
42500 – Support Staff Part-time
46546 - Contract Services Co-Ordinator Benefits
42502 – Work-study
46570 - Contract Services Instructional Non-Payroll
42503 – Co-op
46901 - Contract Services Non-Instructional Payroll
42504 – Peer Tutors
46944 - Contract Services Non-Instructional Benefits
42507 – Student Help
46970 - Contract Services Non-Instructional Non-Payroll
42509 – Graduate Student
CLARIFICATION OF CONTRACTED SERVICES
Notes:
These four accounts should not
be used for any part-time,
partial load instructors or parttime support staff.
The contracted services paid
through payroll are subject to a
“benefit” charge announced at
budget/forecast time to cover
the College’s costs of CPP, EI,
EHT, etc.
These accounts include:
465xx – Contract Services Instructional Payroll
• Used to pay all instructors in non-post secondary courses
that will be paid through payroll (the instructors do not
invoice the College)
46570 – Contract Services Instructional Non-Payroll
• Used to pay all instructors in non-post secondary courses
that will be paid through an invoice issued to the College
46901 – Contract Services Non-Instructional Payroll
• Used to pay all contracted employees who are not teaching
(i.e. consultants) and will be paid through payroll
46970 – Contract Services Non-Instructional Non-Payroll
• Used to pay all contracted employees who are not teaching
and will be paid through an invoice issued to the College
THINGS TO REMEMBER
The College’s fiscal year runs from April 1st to March 31st (the current year is always referred
as the year it ends i.e. for fiscal year 2014-15 it is referred to as 2015)
End users should never post to fulltime salary of benefit accounts (40100, 41500, 42000,
43000, 43400, 43600) – any adjustments to these accounts needs to be authorized/made by
Finance
Benefit accounts should never be used on their own (43xxx, 4654x, 46944) – they should
only be used in relation to the corresponding payroll
Post expenses to their proper accounts – if the line does not exist, contact Finance to add it to
your cost centre
An employee cannot be both on payroll and contract (non-payroll)
If something has been posted to the wrong account, please send a journal entry form with
backup to Finance
When in doubt…just ask