kuali chart of accounts vince schimizzi, michigan state university bill overman, indiana university
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?