Training Manual - Central Michigan University
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Accounting Services Training Manual Reference Version: December 2010 Accounting Services Training Manual Reference Table of Contents Contact Information ……………………………………………………………………………...2 Contact by Cost Center ………..…………………………………………………………………3 Business Areas ……………………………………………………………………………...........4 G/L Account Listing ……………………………………………………………………………..5 Document Types ………………………………………………………………………………...14 Definitions/Glossary………………………………………………………………………….....15 Reference Card …………………………………………………………………………….........21 1 Version: December 2010 Accounting Services Training Manual Reference Contact Information Description Contact Phone E-mail Location Sue Parsons 7358 parso1sm@cmich.edu WA304 Manager Plant Fund Debt Service Bond Issues Pat Duffy 1139 duffy1pa@cmich.edu WA304 Retirement Fund Agency Fund Expense Distribution - Report Updates Financial Report - Copies SharePoint – Audit Conference Room WA305 Bunny Punches 2571 goodw1dl@cmich.edu WA304 Bank Reconciliation Wire Transfer Inquiries Escheats Kelly Stacey 3489 franc1kj@cmich.edu WA304 Designated Fund Auxiliary Fund Contract Invoicing SAP Training Steve Millard 7366 milla1sd@cmich.edu WA304 General Fund Athletics UBIT Tuition Distribution G/L Account Questions Tricia Cotter 7360 cotte1pj@cmich.edu WA304 Gifts Direct Lending PELL, SEOG, ACG & SMART College Work Study ARRA Reporting Grants – Private/Internal Hillary Pierce 1280 franc2ha@cmich.edu WA304 Grants-Federal/Private A-133 Time & Effort Reporting Lakshmi Vungarala 7359 vunga1lj@cmich.edu WA307 Grants – State/Private Time & Effort Reporting Kasie Natzel 7361 marsh1kl@cmich.edu WA307 Grants-Federal Time & Effort Grant Equipment Tracy Daugherty 7359 daugh1ta@cmich.edu WA304 Assistant Controller Audit Financial Reports 2 Version: December 2010 Accounting Services Training Manual Reference Contact by Cost Center Description Accounts Starting With Accountant Telephone Email GENERAL FUND 1XXXX 2XXXX 3XXXX TRICIA COTTER 7360 COTTE1PJ@CMICH.EDU DESIGNATED FUND 4XXXX STEVE MILLARD 7366 MILLA1SD@CMICH.EDU ATHLETICS 55XXX OTHER 5XXXX TRICIA COTTER 7360 COTTE1PJ@CMICH.EDU STEVE MILLARD 7366 F, P LAKSHMI VUNGARALA 7359 VUNGA1LJ@CMICH.EDU 61XXX 91XXX F TRACY DAUGHERTY 1162 DAUGH1TA@CMICH.EDU 91XXX S, P KASIE NATZEL 7361 MARSH1KL@CMICH.EDU 7359 VUNGA1LJ@CMICH.EDU P LAKSHMI VUNGARALA, KASIE NATZEL, HILLARY PIERCE 7361 1280 MARSH1KL@CMICH.EDU FRANC2HA@CMICH.EDU C, P HILLARY PIERCE 1280 FRANC2HA@CMICH.EDU KIM WAGESTER 7388 WAGES1KA@CMICH.EDU HILLARY PIERCE 1280 FRANC2HA@CMICH.EDU HILLARY PIERCE 1280 FRANC2HA@CMICH.EDU PAT DUFFY 1139 DUFFY1PA@CMICH.EDU BUNNY PUNCHES 2571 PUNCH1BL@CMICH.EDU BUNNY PUNCHES 2571 PUNCH1BL@CMICH.EDU AUXILIARY FEDERAL GRANTS/CONTRACTS 61XXX FEDERAL MATCHING FEDERAL GRANTS TIME & EFFORT GRANT EQUIPMENT STATE GRANTS/CONTRACTS 91XXX STATE MATCHING 92XXX PRIVATE GRANTS 63XXX PRIVATE MATCHING SCHOLARSHIPS INTERNAL GRANTS MATCHING 93XXX 64XXX 65XXX 95XXX ENDOWMENTS RESTRICTED GIFTS COLLEGE WORK STUDY 66XXX 67XXX + 9XXXXXX XXXXX PLANT FUND 7XXXX 8XXXX88XXX RETIREMENT FUND MILLA1SD@CMICH.EDU 68XXX ACG, SMART 7 TEACH DIRECT LENDING, PELL, SEOG AGENCY FUND WBS XXXXX 89XXX 3 Version: December 2010 Accounting Services Training Manual Reference 4 Version: December 2010 Accounting Services Training Manual Reference G/L Account Listing GL account numbers are six digit in length and are used to classify revenues, expenditures, and transfers. They are grouped as follows: 5XXXXX 59XXXX 60XXXX 61XXXX - 62XXXX 63XXXX - 8XXXXX 9XXXXX Revenue Revenue Transfers Cost of Goods Sold Salaries, Wages, & Benefits Supplies & Equipment Expense Transfers Following is a list showing the GL account numbers with a description of the purpose of each. REVENUES - 5XXXXX Note: Many revenue G/L accounts indicate "Ext" for external sources of revenue and "Int" for internal sources of revenue. For example, all revenue that goes into G/L 520500 (Salesinteruniversity) is revenue that is earned by selling a product or service to other departments with the university. This would be classified as an "Int" source of revenue. All revenue that goes into G/L 540300 (Miscellaneous Income) is revenue that is earned by selling a product or service to entities outside of the university, including agency cost centers. This would be classified as an "Ext" source of revenue. FEES 510200 510300 510400 510500 510600 510800 510900 511000 511200 511300 511400 Course Fees - Ext Admission Fees - Ext Orientation - Student Fees - Ext Credit by Examination - Ext Correspondence Course Fees - Ext Orientation - Parent Fees - Ext Graduate School Application Fee-On Campus 1 - Ext Undergraduate Application Fee-On Campus 1 - Ext Graduate Fees for Grad School - Ext Program Change Fees-Grad School - Ext Late Fees - Ext TUITION 512100 512200 512300 512400 Tuition - Spring - Ext Tuition - Summer I - Ext Tuition - Summer II - Ext Tuition - Fall - Ext 5 Version: December 2010 Accounting Services Training Manual Reference STATE APPROPRIATIONS 514000 State of Michigan Appropriation GRANTS 515200-515900 Grant Revenue PRIVATE GIFTS 516700 Private Gifts - Operating - Ext 516710 Private Gifts - Endowment Permanent - Ext 516720 Private Gifts - Capital - Ext EDUCATIONAL ACTIVITIES - SALES & SERVICES 520200 Sales Taxable - Ext 520300 Sales Non-Taxable - Ext 520400 Sales - Theatre - Ext 520500 Sales Inter-university - Int 520800 Workshop Fees - Ext 521000 Fines 521100 Replacement Fees - Ext 521200 Miscellaneous Fee - Ext 521400 Vending - Ext 522200 Sales-Miscellaneous - Ext 522301 Sales-Miscellaneous - Int ATHLETICS 526000-527950 (For Athletics Use Only) AUXILIARY ACTIVITIES -- MOTOR POOL 534500-535800 (For Motor Pool Use Only) OTHER REVENUE STUDENT ACTIVITY CENTER 536000-537900 (For Student Activity Center Use Only) 540200 540300 540305 540310 540320-540399 540600 540610 540800 541000 Cash Over - Cash Short - Ext Miscellaneous Income - Ext Commissions Revenue - Ext Miscellaneous Income - Int Police Revenue (For Public Safety Use Only) Equipment Rental - Ext Rental Income - Int Lease Income - Ext Grant/Contract Program Income - Ext 6 Version: December 2010 Accounting Services Training Manual Reference PUBLIC BROADCASTING 545500-550500 (For Public Broadcasting Use Only) AUXILIARY ACTIVITIES - SALES AND SERVICES 560100-565900 (For Auxiliary Services Use Only) 562000 Sales Taxable - Ext 562100 Sales Nontaxable - Ext 562150 Sales Nontaxable - UBIT - Ext 562200 Sales - Interuniversity 562201-562256 Printing Services Revenue (For Printing Services Use Only) 562270-562281 Res Life Sign Shop Revenue (For Res Life Sign Shop Use Only) 563100-563900 Bookstore Revenue (For Bookstore Use Only) 565000-565312 Athletics Revenue (For Athletics Use Only) TELECOMMUNICATIONS RESOURCES 566000-566900 (For Telecommunications Use Only) CENTRAL ENERGY FACILITY RESOURCES 567000-567900 (For Central Energy Use Only) UNIVERSITY EVENTS 569100-569999 (For University Events Use Only) REVENUE TRANSFERS – 59XXXX CARRYFORWARD BALANCE 599800 Balance Carryforward (For Accounting Services Use Only) 599801 Commitment Carryforward (For Accounting Services Use Only) 599803 Gift Carryforward (For Accounting Services Use Only) REVENUE TRANSFERS 599931-599960 (For Accounting Services Use Only) COST OF GOODS SOLD – 60XXXX 601000-609900 Cost of Goods Sold SALARIES, WAGES, & BENEFITS – 61XXXX-62XXXX Note: G/L accounts listed in the Salaries, Wages, & Benefits category cannot be used in manual journal entries, unless indicated otherwise. All entries must be approved by the Payroll department. STAFF SALARIES & WAGES 7 Version: December 2010 Accounting Services Training Manual Reference 611000 Professional Administrative/Salary - Consists of entry level & middle management individuals as well as professional staff members both on & off campus. 611100 Senior Officers Salaries - Consists of the Directors of major departments, Deans, Assistant & Associate Deans, individuals who make up the decision-making body for Central Michigan University including the President, the Provost, & the various Vice Presidents. 611200 Office Professionals Salaries - Consists of Bookkeepers, Clerks, Typists, Secretaries, Receptionists, & other office related positions. 611300 Professional Administrative/Hourly - Consists of clerical & entry-level professional administrative positions both on & off campus. 612100 Food Service and Maintenance Salaries - Consists of unskilled & skilled workers at Facilities Management. And also includes employees working in the Food Service area. 612200 Public Broadcasting Salaries - Includes employees working in the Public Broadcasting area except for administrative staff. 612300 Public Safety Salaries - Includes the campus Service Officers, & Sergeants. 612500 Supervisory/Technical Salaries - This group includes supervisors in the office setting, at Facilities management (both skilled & unskilled trades, & Food Service area). In this group you will also find technical people such as keypunch operators, physics technicians, nurse's aides, etc. FACULTY SALARIES & WAGES 613200 Faculty Salaries - This group consists of Instructors, Professors, Librarians, Coaches, and Counselors. 613300 Faculty - Department Chairperson Salaries 613400 Faculty - Summer Salaries 613500 Faculty - Temporary Salaries 613600 Graduate Assistants Salaries - These are students who work in the academic areas, assisting in teaching or research in order to gain credit & practical experience. 613700 Course Instructor 613800 Ttrl/Monitor/Review 613900 Wkshop/Spkr/Prctr 614000 Advising Earnings FRINGE BENEFITS Fringe Benefits include Retirement, Social Security, Hospitalization Insurance, Life Insurance, Disability Insurance, Worker's Compensation, Dental, Parking Decals, Vision Care, Longevity, 8 Version: December 2010 Accounting Services Training Manual Reference Tuition, Unemployment, & Vacation accrual for FASB 43. Each classification has an appropriate percentage. 615000 615100 615200 615400 615600 615800 615900 616100 616200 616300 616500 616600 616700 617700 Professional/Administrative Benefits Senior Officers Benefits Office Professionals Benefits Faculty Benefits Faculty - Temporary - Full time - Benefits Graduate Assistants Benefits Other Benefits Food Service & Maintenance Benefits Public Broadcasting Benefits Public Safety Benefits Supervisory/Technical Benefits Benefits Recharge (use for manual journal entries) Retirees Benefits Course Instructor Benefits OTHER SALARIES - STUDENT & TEMPORARIES 620900 Expenditure Credit (use for manual journal entries) TEMPORARY EMPLOYEES & STUDENT ASSISTANTS - PAYROLL 621000 Temporary Hourly Employees 621100 Temporary Salaried Employees 621300 Food Service & Maintenance - Temporary 621800 Student Assistants - Temporary 622000 Contractual Services OTHER COMPENSATION 623000 Other compensation 623100 Overtime 623200 Shift Differential 623300 Work in Higher Classification 623400 Callback Pay 623500 Wage Recharges (use for manual journal entries) 623501 Wage Recharges - Student (use for manual journal entries) STUDENT ASSISTANTS - WORK STUDY 624200 CWS - College Work Study 624300 CMU Additional Student Assistance (effective FY11) OTHER BENEFITS - TEMPORARY EMPLOYEES & STUDENT ASSISTANTS 625200 Temporary Employees Benefits 9 Version: December 2010 Accounting Services Training Manual Reference 625300 625900 626000 Temp Salaried Employee Benefits Other Fringe Benefits Retirement Service Award Payment FUNDED DEPARTMENTAL RESOURCES 626700 Professional Admin. Salary Departmental Funding 626800 Senior Officer Departmental Funding 626900 Office Professionals Departmental Funding 627000 Faculty Departmental Funding 627100 Food Service & Maintenance Departmental Funding 627300 Public Broadcasting Departmental Funding 627400 Public Safety Departmental Funding 627500 Professional Admin. Hourly Departmental Funding 627600 Supervisory Technical Departmental Funding 627700 Temporary/Student Soft Funded Wages BENEFITS - FUNDED DEPARTMENTAL RESOURCES 628700 Professional Admin. Salary Departmental Funding - Benefits 628800 Senior Officer Departmental Funding - Benefits 628900 Office Professionals Departmental Funding - Benefits 629000 Faculty Departmental Funding - Benefits 629100 Food Service & maintenance Deptl. Funding - Benefits 629300 Public Broadcasting Departmental Funding - Benefits 629400 Public Safety Departmental Funding - Benefits 629500 Professional Admin. Hourly Departmental Funding - Benefits 629600 Supervisory Technical Departmental Funding – Benefits 629700 Temporary/Student Soft Funded Benefits SUPPLIES AND EQUIPMENT – 63XXXX-8XXXXX SUPPLIES & EQUIPMENT 631900 Expenditure Credit 640100 640200 640300 640400-641100 Misc. Freight Postage and Delivery - Includes stamps & meter mail United Parcel Service / Federal Express Postage and Delivery 645200 645222 645300 645400 645600 645700 645800 Telephone OIT Fees - Computing Services Telephone - Long Distance Telephone - Installation Telephone - Miscellaneous Telephone - Service Order Charges Telephone - Telephone Equipment 10 Version: December 2010 Accounting Services Training Manual Reference 645900 646200 646300 Cable TV Service Cell Phone Expense Pager Expense 650200-650500 Computer Services - Includes charges for use of computer facilities & Data preparation. 651100 Database Access - Includes vendor charges for access to external computer databases. 651200 Computer Services 651500 Consulting Fees 651700 Miscellaneous Networking Software 651900 Computer Services 651902 Network Charges/Res Net 655200-656102 Equipment Repairs & Maintenance - Includes the repair of equipment, service contracts & preventive maintenance of equipment. 660200-660900 Entertainment and Meeting Expenses - Includes the cost of meals & refreshments for employee meetings & entertaining university guests. If this cost is on the travel expense reports. 662200-662900 Workshop Costs 663200 Teleconferencing Costs 664200 Graduation Costs 665200-666400 Printing & reproduction - Includes cost of printing forms pamphlets & bulletins. Includes duplication costs for the copy center or other reproduction services. 670200-671000 Honorariums & Professional Entertainment Fees - Includes payments to individuals for honorariums, speaking fees, & professional entertainment services. Payments to employees of the university must be paid through payroll since they are subject to withholding for income tax. 672200-672900 Outside Services 673000 Asbestos Service 673100-673900 ARAMARK Contract Service 675300 Employee Scholarships 680100 Classroom Rent 680200-681000 Rentals - Includes the cost of renting office equipment, facilities & vehicles. Does not include cost of rental vehicle when traveling. 685200 Student Aid - Includes the cost of grants, scholarships or fellowships to students of the University. 685300-686600 Awards and Trophies - Includes cash awards to students & the cost of trophies. 690200-692700 Supplies/Office - Includes the cost of office supplies & office furnishings such as desk pads, waste baskets, etc. 693000-693300 Purchasing MasterCard Program 695300 Indirect Costs 11 Version: December 2010 Accounting Services Training Manual Reference 696000 Overhead Recovery 700200-703100 Supplies/Maintenance - Includes the cost of maint. supplies. This does not include the cost of maint. of equipment (See 655200). 703100 Participant Stipends 706200 706300 706400 706500 706600 706700 706800 706900 707000 707200 Oil Electric - Main Meter Electric – Other Gas – Powerhouse Gas - Other Meters Gas – Academic Water/Sewer Wood Solid Waste General Utilities 730200; 730300-734100 Supplies/Other - Includes the cost of supplies other than office or maintenance. Departments that have supplies for clinical, laboratory or other specific functions should code these supplies in this category. Includes equipment less than $5,000. 730210-730270 Supplies-Parking Services only 737500 Moving Expense 740200-741100 Travel - Includes the cost of all employees and student travel Travel expenses for individuals not employees or students of the University should be included under Professional Services 741200-741900 Conference Fees - Includes fees paid to attend conferences, annual association meetings & educational course registration fees. 742200-742700 Lodging 743200-743900 Meals 744200-744800 Transportation (taxicab, bus, airplane) 745000-747400 Recruiting Expenses 750200 750300 750400 750500 750600 750700 750800 750900 Advertising - Includes the cost of want ads & classified & direct mail brochures. Promotional Activities Trustee Fees - Includes the cost of Trustee Fees paid to Trust Corp. Subscriptions and Publications - Includes the cost of all types of subscriptions, periodicals & publications. Professional Fees - Includes payments to individuals & companies not employees of the University for professional services such as auditing, legal & engineering. Membership Fees and Dues - Includes the cost of University & individual membership fees & dues. Bad Debts - Includes the cost of uncollectable accounts with the University. Legal Fees 12 Version: December 2010 Accounting Services Training Manual Reference 751000 751100 751200 751300 751400 751500 751600 752000-752800 752500 753900-753901 754000 Bank Fees Credit Card Fees Textbooks Research Towing Payment Direct Deposit Fees CEL Textbook Charges Insurance - Includes the cost of casualty insurance & bonds. Workers Comp Other Course Expenses Other Administrative Expenses - Includes the cost of other administrative or operational expenses not covered in another category. 754300-754301 Interest Expense 754400 Commission Fee 754900 Furnishings - Equipment with a unit cost of less than $5,000 or useful life of less than two years (equipment not capitalized) - see (805200). 775000-775800 Public Broadcasting Network 777000 Public Broadcasting Network EQUIPMENT & LIBRARY ACQUISITIONS 801000 Movable Equipment to be capitalized ($5,000 or more) (eg. complete computer system, etc.) (no software, except operating systems) 801100 Upgrades (computers; machine or other equipment enhancements) 801200 Title Vehicles (for athletic vehicles please use 3000-113286) 805000 Fixed Equipment (attached to building) 805100 Software 805101 Software Maintenance and Renewals 805200 Equipment not Capitalized (Greater than $1,000 but less than $5,000) (These items will be tagged) 805201 Upgrades/Components for Equip Not Capitalized 805300 Maintenance Contracts 805500 Equipment (Less than $1,000) Not Tagged 805501 Equipment (Less than $1,000) Tagged 805600 Freight, Shipping & Handling Charges 810000-816000 Library Acquisitions FACILITIES MANAGEMENT 820200-895999 (For Facilities Management Use Only) 896000-898999 (For Use on AUC Internal Orders Only) EXPENSE TRANSFERS – 9XXXXX 9XXXXX TRANSFERS FOR ACCOUNTING USE ONLY 13 Version: December 2010 Accounting Services Training Manual Reference Document Types Accounting Services Department (Grants x7361) Doc. Type Description From Number To Number DR Customer Invoice 1800000000 1899999999 DZ Customer Payment 1400000000 1499999999 AA Asset Posting AB Accounting Document 100000000 199999999 AF Dep. Posting 3000000000 3999999999 SA G/L Account Document 100000000 199999999 Z1 F27 Interface (Cash Receipt) 2700000000 2749999999 Z3 F60 Interface (Cash Receipt) 6000000000 6049999999 ZZ SAP F180 B/A Clearing 4000000000 4999999999 ZR Reconciliation Posting CO 100000000 199999999 ZA ProfEd Monthly Corrections 100000000 199999999 KA Vendor Document 1700000000 1799999999 KG Vendor Credit Memo 1700000000 1799999999 KN Net Vendors 1900000000 1999999999 Accounting Services Department (x3707) 100000000 199999999 Payable Accounting Department (x3523) KP Acct Maint (GR/IR) 4800000000 8999999999 KZ Vendor Payment 1500000000 1599999999 RE Invoice Receipt 5100000000 5199999999 RN Invoice Receipt 5100000000 5199999999 Z4 F50 Interface 5500000000 5599999999 Z9 P O Credit Memo 5200000000 5299999999 ZB Payment Reversal 1700000000 1799999999 ZP Payment Posting ACH 1600000000 1699999999 Purchasing Department (x3118) WA Goods Issue 4900000000 4999999999 WE Goods Receipt 5000000000 5099999999 WI Inventory Document 4900000000 4999999999 Z7 SAP Payroll Feed 2000000000 2099999999 Z8 Payroll Correction 4000000000 4099999999 YT CA Transfer Payroll Department (x3481) SLCM (x7344) 2600000000 14 Version: December 2010 2649999999 Accounting Services Training Manual Reference Definitions/Glossary 1. Agency Fund - An agency fund is a fund group used to account for assets that are received by the university to be held or disbursed only on the instruction or on behalf of the person or organization from whom they were received. The assets do NOT belong to the university. 2. Asset Under Construction (AUC) – An asset under construction is the SAP process using internal order number 650000 to 689999 by Facilities Management for repairs, maintenance, and improvement projects of university assets. 3. Auxiliary Fund - An auxiliary fund account is used to account for revenue and expenditures of revenue-producing, substantially self-supporting activities that perform a service for but are not themselves educational and general activities. The following are examples of business enterprises that CMU records in auxiliary fund cost centers: Athletics, CMU Bookstore, CMU Printing Services, Telecommunications, Health Services, Motorpool, Residence Life, Campus Dining, Bovee University Center, and other miscellaneous selfsupporting activities. Auxiliary fund cost centers begin with 5XXXX. 4. Available Balance - The amount available in a cost center that can be used or expended before the cost center has a zero balance. This amount takes into consideration the outstanding commitments as of the time the available balance is determined. It should be noted that when using this balance some charges may have been incurred but not processed through SAP. 5. Budget To Actual (BTA) - The Budget to Actual Report compares the approved operating budget to the actual revenue and expense activity through the fiscal year quarter indicated on each report. 6. Buildings & Building Improvements - Buildings and building improvements includes all structures used for operating purposes, as well as significant improvements made to an existing structure that meet appropriate capitalization criteria. Included with this category are all permanently attached fixtures, machinery, and other components that cannot be removed without damage resulting to the building. If a component can be removed without damage, then it should be considered equipment and not included in the cost of the building or improvement. All direct costs of construction should be included in calculating the capitalized cost of the asset. If the building is constructed by CMU’s own personnel, then these costs should also be included as part of the capitalized amount of the asset. Significant structural alterations that increase the building’s usefulness, efficiency or asset life should also be capitalized. To determine if a project should be capitalized as a building improvement, certain criteria must be met. Work to maintain buildings in their existing condition, such as painting or repairs, should be expensed. Work to improve the building in excess of $50,000 that would extend the asset’s useful life and/or increase efficiency, such as the addition of a new wing to a building, significant remodeling of a building or office(s), or the addition of HVAC systems to a building or office(s) should be capitalized. 15 Version: December 2010 Accounting Services Training Manual Reference 7. Business Area - A business area is a unit of financial accounting that represents a separate area of operations or responsibilities within the organization. 8. Collections - Collections are defined as works of art, historical treasures, or similar assets that are (a) held for public exhibition, education, or research in furtherance of public service instead of financial gain, (b) protected, kept unencumbered, cared for, and preserved, and (c) subject to organizational policy that requires the proceeds of items that re sold to be used to acquire other items for collection. Items that do not meet these criteria are not considered collections and must be capitalized accordingly. Collections acquired through purchase should be recorded at cost. Collections received through gift or bequest should be recorded at fair value. Fair value is best determined by quoted market prices or appraisals. Assets acquired other than through purchase are to be recorded on the books at the appraised value at the date of acceptance of the gift. 9. Commitment - A commitment is a transaction that sets aside budget because the cost center made a commitment of their funds to pay for purchases or payroll. For example, the unfilled portion of an outstanding purchase order is a commitment. 10. Cost Center - Cost centers are used to account for related revenues and expenses. 11. Deficit – In general, a deficit occurs when the expenditures of a cost center are greater than its revenues. For grant accounts, a deficit occurs when actual spending plus committed spending exceeds the approved budget amount. 12. Designated Fund - A designated fund account is used to account for specific purposes which are not restricted by supporting agencies. Designated funds will include organized departmental activities associated with academic programs, conferences, seminars and fees for service and fixed price contracts. Designated fund cost centers begin with 4XXXX. 13. Document Number - Document numbers are generated automatically by the SAP system after a transaction, such as a journal entry, is entered into SAP. 14. Endowment Fund - An endowment fund account is used for funds which the donor specifies that the principal is to be held in perpetuity. The principal is unexpendable and is invested to produce earnings that are generally available for use as specified by the donor. 15. Equipment – Equipment generally includes all items that are perceived as moveable personal property. Equipment may be purchased, fabricated, or received by donation. Examples of equipment include furniture, lab equipment, classroom equipment, and vehicles. Purchased equipment should be recorded at cost, which is calculated at the amount invoiced, plus freight and installation costs, less any discounts. The cost of fabricated equipment should include the direct cost of the fabrication and installation, plus overhead or indirect costs. Donated equipment should be recorded at fair market value as of the date of the gift. 16 Version: December 2010 Accounting Services Training Manual Reference CMU’s capitalization threshold for equipment is $5,000, which is also in accordance with OMB Circular A-21, which requires all institutions recovering costs from the federal government to capitalize all equipment costing more than $5,000. Equipment assets, other than those considered low theft items, are also tagged and then capitalized within the fixed asset system. If tagged equipment items are not found during annual inventories, the asset should be retired and removed from the University’s records. 16. Escheats – Escheats are a process whereby uncashed checks or unclaimed property is turned over to the State of Michigan. Checks are the typical unclaimed property of the university. The period of abandonment for checks varies. Payroll checks are returned to the State of Michigan (escheated) after one year. Payables and Receivables checks (not including Title IV funds) are escheated after five years. Any unclaimed checks due to be escheated that include Title IV funds must instead be returned to the appropriate aid program. 17. Expendable Restricted Fund - The Expendable Restricted Fund is used to account for all special programs financed by separate special-purpose state appropriations, income from endowment funds, contracts and grants, excluding some fixed price and fee for service contracts, and gifts. In all cases, the use of the funds is restricted for specific purposes stated by the supporting agencies or donors. Internal grants are also recorded in the restricted fund. 18. Fiscal Year – The fiscal year are the annual financial accounting period (July 1 - June 30). For example, the period FY 09/10 represents the period 7/1/09-6/30/10. 19. Fund – A fund is an accounting entity with a self-balancing set of accounts consisting of assets, liabilities, and fund balance. Separate funds are used to ensure the observance of limitations and restrictions placed on the use of their resources. 20. Fund Balance - The fund balance of each fund represents the difference between the fund’s assets and liabilities. 21. General Fund - A General Fund account is used to account for those transactions related to academic and instructional programs and their administration. General fund cost centers begin with 2XXXX. ProfEd cost centers begin with 3XXXX. 22. General Ledger (G/L) – A general ledger is a set of six digit numbers used to classify revenues, expenditures, transfers, assets, liabilities, and fund balances. They are grouped as follows: 1XXXXX-Assets 61XXXX-62XXXX Salaries, Wages, & Benefits 2XXXXX-Liabilities 63XXXX-8XXXXX Supplies and Equipment 3XXXXX-Fund Balance 9XXXXX Expense Transfers 5XXXXX-Revenue 59XXXX-Revenue Transfers 23. Grant Accounting - Grant Accounting is involved in post award oversight of the University’s Grants and Contracts, review of related journal entries, WBS element / Grant 17 Version: December 2010 Accounting Services Training Manual Reference Cost Center creation, billing, financial reporting to funding agencies, Time and Effort Reporting, and providing departmental guidance of SAP Grant/Contract account maintenance. 24. Grant Funding - Grant revenue is generated from agreements with sponsoring agencies, such as governments, corporations, and foundations. These generally require the performance of specific tasks. 25. Grant Number - The Grant number is a 6 digit Alpha-Numeric character number used to display grant account reporting information in SAP for grants set up through the Grants Management module. All grants that are awarded through the Office of Research and Sponsored Programs will be set up with Grant Numbers. Always use the Grant Number when running reports in SAP for the project. For example: Federal = F6XXXX State = S6XXXX Private = P6XXXX Internal = C6XXXX When it is time to process expenses, use WBS elements associated with the grant numbers. DO NOT use Grant Number to process expenses/revenues. 26. Infrastructure – Infrastructures includes all items such as streets, street lighting, roads, sidewalks, curbs, utility distribution systems, and storm sewers. These assets usually have a longer useful life and are more permanent in nature than land improvement related assets. Work to maintain infrastructure assets in their existing condition should be expensed. Work to improve infrastructure assets, for example creation or replacement of a storm sewer, in excess of $50,000 should be capitalized. All direct costs of construction or alteration should be included in calculating the cost of the asset. If the asset is constructed / altered by CMU’s own personnel, then these costs should also be included as part of the capitalized amount of the asset. 27. Internal Orders - Internal Orders provides a way of tracking expenses in addition to G/Ls. For example, all the expenses associated with a department project or faculty member can be assigned an Internal Order number. Internal Orders are created and maintained by the department. The system automatically assigns an internal order number when the setup of the new internal order is complete and saved. The system assigns the next number in the sequence assigned to the Order Type used. This means your internal orders will not necessarily be in consecutive order. Keep a record of the Internal Orders you create. 28. Interuniversity Revenue - Interuniversity Revenue includes all revenue that is earned when selling a product or service to another department within CMU. For example, if the School of Music sells a CD to Accounting Services, the School of Music would recognize the money earned on this sale as interuniversity revenue. 29. Land – Land includes all land that is purchased or acquired by gift or bequest. The capitalized cost of land purchased would include the amount paid for the purchase, plus all ancillary costs, such as broker and legal fees. If acquired by gift or bequest, the capitalized cost would be recorded at fair market value at the date of the gift or bequest. CMU must have 18 Version: December 2010 Accounting Services Training Manual Reference title to the land before being capitalized. The purchase of easements should also be recorded as land. 30. Land Improvements – Land improvements includes assets such as parking lots, fencing, gates, athletic fields, and parking lot lighting. Work to maintain land improvements in their existing condition, for example, re-asphalting a parking lot, should be expensed. Work to improve land improvements in excess of $50,000, for example, expanding a parking lot, should be capitalized. All direct costs of construction or alteration should be included in calculating the cost of the land improvement. If the land improvement is constructed / altered by CMU’s own personnel, then these costs should also be included as part of the capitalized amount of the asset. 31. Library Books – Library books are assets that should be capitalized at their purchase price plus transportation and any incidental costs. Donated books should be recorded at fair value as of the date of the gift. Periodicals and subscriptions are also capitalized. The University capitalizes library books at the end of each fiscal year. Rare books that are considered “collections” similar to works of art or historical treasures should be classified as Collections. 32. Plant Fund – Plant funds are a separate fund group used to account for long-lived assets such as land, buildings, and capital equipment; renewals and replacements of those assets; debt service (principal and interest payments) incurred to purchase those assets; and unexpended funds which are available for capital projects. 33. Reference Number - The reference document number is used as a search criterion when displaying or changing documents. This can be assigned by Accounting Services or the department requesting the journal entry. 34. Sponsored Class - A Sponsored Class is a group of pre-determined General Ledger (G/L) accounts that are functionally related. Sponsored Classes are used to budget a level higher than a single G/L for grants established through the Grants Management module in SAP. Since spending on a grant is based on the sponsor’s authorized budget and reporting requirements, the Sponsored Classes are used to group the G/Ls into budget categories that closely resemble the sponsor’s allowed budget categories for reporting purposes. Expenses still have to be posted to individual G/Ls and not to Sponsored Classes. For example: Supplies and Materials - G211000 (this is a Sponsored Class Group number) Postage & Delivery Telephone Printing 640200 (this is a G/L number) 645200 665200-666400 (range of G/L numbers) Travel - G220000 Travel 740200-741100 Incorrect use of the G/Ls will generate inaccurate reports. Care should be taken to use the appropriate G/L for charging expenses to a grant. 19 Version: December 2010 Accounting Services Training Manual Reference 35. Sponsored Project – A sponsored project is any externally funded activity that has a defined scope of work and set of objectives which provide a basis of accountability and sponsor expectations. All projects determined to be a sponsored project must be processed through the Office of Research and Sponsored Programs. 36. Transfers - Transfer codes (G/L’s) are used to move funds (instead of specific expenses) between cost centers. A transfer occurs when one cost center is providing general support. A movement of expense occurs when the expense hit one cost center & G/L, but really belongs in another cost center. Transfer codes CANNOT be used on Agency cost centers. 37. Unrelated Business Income Tax (UBIT) - CMU is exempt from the payment of income taxes on income related to its exempt purposes. However, the University is liable for taxes on unrelated business income (UBI). Income from an activity carried on by an exempt organization is subject to the unrelated business income tax if the following three criteria are present: The activity constitutes a “trade or business,” The activity is “regularly carried on” by the organization, and The conduct of the activity is “not substantially related” (other than through the production of funds) to the performance of the organization’s exempt function. 38. WBS elements (WBS) - WBS stands for Work Breakdown Structure. It is the SAP software vendor’s acronym for the account number used in SAP to record expenses for Grants. A WBS is a six digit SAP account that starts with 6XXXXX. The WBS is used to charge expenses or record revenues related to a grant account. Where departmental internal paperwork/forms/etc lists cost center number – the WBS element number should replace the cost center number if the expense is to be charged to an award set up as a WBS. 20 Version: December 2010 Accounting Services Training Manual Reference 21 Version: December 2010 Accounting Services Training Manual Reference 22 Version: December 2010
