kuali chart of accounts vince schimizzi, michigan state university bill overman, indiana university
Post on 25-Dec-2015
219 Views
Preview:
TRANSCRIPT
Kuali Chart of Accounts
Vince Schimizzi, Michigan State University
Bill Overman, Indiana University
What is the Chart of Accounts?
• Chart
• Organizational Structure
• Accounts / Sub-Accounts
• Object Codes / Sub-Object Codes
• Extended Attributes
• Even More !
Purpose of a Chart of Accounts
• What is the primary purpose of a chart of accounts?
• To support and validate entries into a general ledger• Support internal controls
• What other functions does the Kuali chart of accounts serve?
• Document routing and approvals• Framework for budget construction• Reporting, both internal and external
KFS Chart Features
• Chart– Ability to have multiple charts– Charts are hierarchical
• Organization– Hierarchical– Facilitates reporting, workflow, controls
• Account/Sub-Account– Report up through organizations– Allows for further division of an account for internal
reporting purposes
KFS Chart Features (cont.)
• Object code and sub-object codes– Track expenditure types of categories– Allows for further division of an object for
internal reporting purposes
• Object level codes and object consolidation codes– Provides ability to combine and consolidate
by object groups for reporting
• Extended attributes
KFS Chart Features (cont.)
• Extended Attributes– Can be used throughout Chart (e.g. Orgs, Accounts, Object
Codes, etc.)
– What is it? • Additional field to “tag” chart objects with a unique identifier
– How to use• Use to “link” chart objects that are not naturally linked for
reporting purposes – i.e. tool for pre-existing reporting requirements that don't fit neatly into hierarchical structure
– Example• Interdepartmental activities, link unrelated organizational
units (cross functional teams, etc.), inter-disciplinary activities
Chart of Accounts at Sample U
SU COA
UA COA West COA East COA Regional COAs
WA COA EA COA
Benefits of Multiple Charts
• Ability to handle complex reporting structures • Campus charts are not required to contain object codes
unrelated to their activities (i.e. Cost of Goods Sold, Inventory, etc.)
• Auxiliary Charts are not required to contain object codes unrelated to their activities (i.e. Tuition, State Appropriations)
• Easy access to campus level or Auxiliary reporting• Increased information and knowledge at the campus
level
Organizations
• Organization– Example: FMOP (Financial Management
Operations)– Collection of accounts and/or other organizations– Some organization features:
• Chart of Accounts, Campus, Department, Responsibility Center, Sub-unit
• Can include all fund groups• Up to four alphanumeric characters (eg. FMOP)• Extension HRMS table (customizable)
Organization Hierarchy at SU
VPBus
WA
UNIV
FM
FMOPFMSY
Accounts
• Account Number– Specific identifier for a pool of funds assigned to a
specific organization for a specific function.• Example: 1912610 (Financial Management
Administration)
Reports to org FMOP
– All accounts can be self-balancing or can post claim on cash offsets to a control account
Org Hierarchy with Accounts
VPBus
WA
UNIV
FM
FMOPFMSY
19126101912631
Sub-Accounts
• Sub-accounts achieve further division of an account for internal reporting purposes.
• Example: finpr (FM Financial Processing)
Reports to 1912610• Characteristics of a sub-account:
– Account specific
– Assumes all features of the account it reports to
Org Hierarchy with Accounts and Sub Accounts
VPBus
WA
UNIV
FM
FMOPFMSY
19126101912631
reprt finpr
Object Codes
• Object Codes are detailed identifiers for Income, Expense, Asset, Liability and Fund Balances.– Chart specific
– Four numeric digits
– Example 1: West-2000 “Academic Salaries”
East-2000 “Academic Salaries”
– Example 2: West-1504 “Animal Care Income”
East-1504 “Card Services Income”
Sub-Object Codes
• Sub-object codes achieve further division of an object code for internal reporting purposes
• Features of a sub-object include the following:– Specific to an account and object code– Assumes all features of the object code it reports to
• Example: In State Travel Object Code 6000– Faculty Instate Travel, Fac– Staff Instate Travel, Sta– Student Instate Travel, Stu
Levels and Consolidations
• All object codes report to a higher Level code and each Level code reports to a higher Consolidation code
– Approximately 80 Levels (although no limit)– Approximately 20 Consolidations (no limit)– Example:
Object Code 4100 “Office Supplies”
Level S&E “Supplies and Expense”
Consolidation GENX “General Expenses”
Extended Attributes
• Extended Attributes are extensions of an Account that enable:– Search by attribute– Lookup by attribute– Balance inquiry retrieval by attribute– Reporting by attribute
• Extended Attributes can be alpha / numeric.
• They are optional.
Management Control and COA
• How can I use the chart for organizational management?– Flexibility in Reporting
– Flexibility in making Routing decisions
– Hierarchy for Responsibility Management
– Facilitates internal controls by assigning fiscal officers, account managers, supervisors
– Transparency of data to measure performance of departments and subunits
Management Control and COA
• What tools are provided to achieve reporting objectives?– With the Approval of the Chart Manager
• Organizations
• Accounts
• Object codes
– Sub-accounts (budgeting / spending)
– Sub-object codes (budgeting / spending)
– On line balance inquiries and formal reports through use of data warehouse
Creating your own Chart
General questions to consider:• Just because it can be changed, should it?
– What currently works, what doesn’t?– Implications for historical comparisons
• What are the reporting requirements?– Institutional financial reporting (external)– Summarized management reporting– Departmental detail– Ad hoc reporting
Creating your own Chart
Chart questions to consider:• Does the institution need multiple charts?
– For separate campuses– For auxiliary operations– For high level institutional financial reporting
• Will interfaced systems be able to accommodate multiple charts?
• Will it add confusion for users?
Creating your own Chart
Organization questions to consider:• What should be the basis for the organizational
hierarchy?– Lines of authority– Lines of business (disciplines, auxiliaries, etc.)– Financial reporting requirements
• How should the org structure relate to other administrative systems (e.g. HR)?
• Do orgs need to be grouped in a way other than hierarchical?
• How narrowly should org attributes (e.g. type) be defined?
Creating your own Chart
Account questions to consider:• Should existing account structure be preserved or should
entirely new structure be created?• If new structure is used, can a map from old to new be
created?• Should fund/sub-fund attribute perpetuate fund
accounting or represent a different way of grouping accounts?
• Should accounts be self-balancing, or should the institution use the “flexible claim on cash” option?
• How should sub-accounts be used?
CoA Next Steps
• Please feel free to talk with us during Kuali Days !
• Kualitestdrive.org
Questions?
top related