1 / 27

UNDERSTANDING FUNDS - PowerPoint PPT Presentation

  • Uploaded on

UNDERSTANDING FUNDS, ATTRIBUTES AND NEW ACCOUNTS AT UM A discussion of fund accounting, the various fund groups, account structure and logic, account attributes including financial classifications and source of funds, procedures for opening an account and account flags. May 2005 WHY AM I HERE?

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'UNDERSTANDING FUNDS' - jana

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Slide1 l.jpg


A discussion of fund accounting, the various fund groups, account structure and logic, account attributes including financial classifications and source of funds, procedures for opening an account and account flags.

May 2005

Why am i here l.jpg

  • Do you ever wonder what type of account to set up?

  • Do you want to know more about external and internal restrictions on spending placed on certain types of accounts?

  • Do you want to know what budget implications the account types have?

  • If you do, then you are in the right place...

Goals objectives l.jpg

To enable departmental administrators in setting up and managing their accounts.

To help participants understand the budgetary and fiduciary responsibilities of funds.

By completion of this session, participants will be able to:

Understand the basic structure and classification of accounts under Fund Accounting Principles.

Demonstrate an understanding of the source of funds and functionality of accounts.

Perform the necessary steps to successfully open new accounts at the University.

Understand restrictions on using different types of accounts.


Fund accounting l.jpg
FUND ACCOUNTING managing their accounts.

  • Allows University administrators to manage resources based on the different types of revenues received by the University.

  • Internally University reports on a fund accounting basis (Report 90s are based on fund accounting).

  • External financial statements are based on the accrual basis of accounting.

Definition of a fund l.jpg
DEFINITION OF A FUND managing their accounts.

  • A fund is an accounting entity with a self-balancing set of accounts used to record assets, liabilities, a fund balance and changes in fund balance (revenues and expenses).

Various fund groups l.jpg

Current Funds managing their accounts.

Unrestricted General



Gables, Marine and South Campus

University of Miami Hospitals and Clinics

Anne Bates Leach Eye Hospital




Non-Current Funds







Account numbers l.jpg
ACCOUNT NUMBERS managing their accounts.

  • Account Structure and Logic

  • Link to Funds

    • SL account 1st digit

    • GL account 2nd digit

    • See table in manual

Fund group 10 unrestricted general l.jpg
FUND GROUP 10 managing their accounts.UNRESTRICTED - GENERAL

  • Activities recorded in fund group

  • Year end balancing procedures

Fund group 2x designated l.jpg
FUND GROUP 2X managing their accounts.DESIGNATED

  • Activities captured in fund groups

  • Year end balancing of funds

Distinction between asset types 7r 7u l.jpg
DISTINCTION BETWEEN ASSET TYPES “7R & 7U” managing their accounts.

  • The asset type attribute is coded on “7” accounts as either R or U.

  • 7R - Restricted

  • 7U - Designated

Fund group 30 40 restricted sponsored non sponsored l.jpg

  • Sponsored

    • Activities captured in fund

    • Year end balancing

  • Gift

    • Activities captured in fund

    • Year end balancing

Fund group 50 loan fund l.jpg
FUND GROUP 50 managing their accounts.LOAN FUND

  • This fund group is used to account for resources available for loans to students.

  • The funding sources for loan funds come primarily from government and donors.

  • Loan funds are revolving funds. Thus as students repay loans, the repayment is placed back in the account. As a result, funds are again available to issue loans to other students.

Fund group 60 and 70 endowment annuity l.jpg
FUND GROUP 60 AND 70 managing their accounts.ENDOWMENT & ANNUITY

  • Endowment and Similar Funds

    • Permanent

    • Term

    • Quasi

  • Annuity and Life Income Funds

Fund group 8x plant funds l.jpg
FUND GROUP 8X managing their accounts.PLANT FUNDS

  • Activities captured

    • Construction and renovation

    • Departmental equipment and surplus reserves

  • Year end balancing procedures for funds 81 & 82

Fund group 90 agencies l.jpg
FUND GROUP 90 managing their accounts.AGENCIES

  • Consists of resources held by the University as custodian or fiscal agent for others such as student organizations.

  • Restrictions:

    • Salaries may not be charged

    • Transfers may not be reflected

    • May not use UM’s federal or state sales tax ID #s

  • Year end balancingprocedures

What is an account l.jpg
WHAT IS AN ACCOUNT? managing their accounts.

  • A functional unit established for a specific purpose with one individual having primary responsibility for it.

  • This functional unit is a collection of records which contain dollar data and descriptive data called attributes.

Sub object codes l.jpg

Revenues 0xxx managing their accounts.

Conferences 006x

Student Union Fees 0091

Corporate Gifts 0231

Foundation Gifts 0232

Private Gifts 0233

Auxiliary 07xx


Direct Costs 1xxx-7xxx

Personnel Comp 1xxx

Fringe Benefits 2xxx

Operations 3xxx 4xxx 5xxx

Capital 6xxx

Transfers 7xxx

Indirect Costs 8xxx


Web site to view sub-object code listing is: www.miami.edu/controller

Example of code usage l.jpg
EXAMPLE OF CODE USAGE managing their accounts.

Account #Object Code

139759 1521

  • Salary expense transaction (recorded in the subsidiary ledger)

    019759 1521

  • Prepaid asset transaction (recorded in the general ledger)

Attributes l.jpg
ATTRIBUTES managing their accounts.

  • Account Responsible Person

  • Type of fund (fund #)

  • Purpose of Account

  • Start/End date of account

  • Account title

  • Department Number

  • Asset type-restricted/unrestricted

  • Tax purpose

  • Financial Class

Classification structures l.jpg
CLASSIFICATION STRUCTURES managing their accounts.

  • Fund

    • Sub-fund

  • Organizational Class

  • Campus

  • Asset Type

  • Tax Purpose

  • Financial Class

Classification exercise l.jpg
CLASSIFICATION EXERCISE managing their accounts.

  • Let’s work through an example…

  • Determine total faculty salaries in the Chemistry Dept. paid by Federal Awards.

  • What account classification structures are selected to roll up the total?

Financial class structure l.jpg
FINANCIAL CLASS STRUCTURE managing their accounts.


    • LEVEL I

      • Educational and General

      • Auxiliary Enterprises

      • Patient Care

Source of funds l.jpg
SOURCE OF FUNDS managing their accounts.

  • The source of funds establishes where the resources are being obtained from to fund the account being established. The following are examples of sources.

    • Program Revenues

    • Registration Fees

    • Private, Corporate and Foundation Gifts

    • Special Academic Programs

Determining what account to create l.jpg

  • When creating an account you need to ask yourself the following:

    • What is the funding source?

    • What is the account going to be used for?

    • Is the funding unrestricted, restricted, designated or other?

    • What is the financial classification of the account?

Account create forms l.jpg
ACCOUNT CREATE FORMS managing their accounts.

  • You can find the account create forms for unrestricted, designated, restricted, plant and agency accounts on the Controller’s Web Page www.miami.edu/controller

Account flags l.jpg
ACCOUNT FLAGS managing their accounts.

  • Frozen Flag

    • Transactions will not post to the account unless there is an outstanding open commitment for the item.

  • Delete Flag

    • Delete 1 Status

    • Delete 2 Status

Conclusion l.jpg
CONCLUSION managing their accounts.

  • Is the account unrestricted, restricted, designated or other?

  • What are the budget implications based on the type of account I have set up?

  • What is the funding source and account purpose?

  • Where do I go to find help with the account create process?

Call the Controller’s Office

at 305-284-4244