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Basic accounting concepts for uf fiscal administrators

Basic Accounting Concepts for UF Fiscal Administrators

August 29, 2013


Housekeeping

Housekeeping

  • Sign-in roster available later – get credit!

  • Restrooms

  • Cell phones, pagers, text messaging, IM

  • Break

  • Evaluation


Our goal today

5

1

WHAT’S THIS?

This icon on a presentation slide points you to the page number in your Study Guide where you can find the content you’re viewing in the PowerPoint presentation.

Our Goal Today

  • Develop a foundation of knowledge for understanding the basic accounting principles and key accounting processes that impact University operations on a daily basis


Today s objectives

Today’s Objectives

  • Identify and define the basic accounting principles that determine how UF’s finances are managed

  • Explain how the daily transactions at UF are entered into our accounting system and how they are organized

  • Discuss and identify some of the financial reports that we obtain from the UF Accounting System and how they assist departments in reconciling their revenue and expenses


Why does accounting at uf matter to me

Why Does “Accounting at UF” Matter to Me?

  • To do your job effectively you need to know how the daily transactions and financial management of those transactions fit within UF’s Accounting System and are required to maintain the integrity of UF’s financial information


We all use accounting

We All Use Accounting…

  • Balancing checkbook

  • Buying a new car

  • Purchasing a home

  • Filing income tax returns

  • Everyone receives money and spends money, and accounting is the procedure by which we record these activities


We all use accounting1

We All Use Accounting…

  • In all of your personal financial transactions there are basic concepts that factor into your decisions…

    • Cash on hand

    • Ability to finance

    • Balance in checking account

    • Expected income

  • It is the same concept in business, and we have specific processes we follow to make those decisions


Basic accounting equation

6

Basic Accounting Equation

  • In order to understand these processes it is important to know the basic concepts we rely on to establish our financial position and correctly report our financial activities


Basic accounting concepts for uf fiscal administrators

What

UF

has

Others

have

claim

UF has

claim

Basic Accounting Equation

  • The Basic Accounting Equation reflects an

  • entity’s financial position

Assets = Liabilities + Net Assets


Basic accounting equation assets

Basic Accounting EquationAssets

  • Cash

  • Investments

  • Accounts Receivable

  • Inventories

  • Prepaid Expenses

  • Land/Buildings

  • Furniture

  • Equipment

AssetsResources owned

or held by UF that have monetary value


Basic accounting concepts for uf fiscal administrators

Basic Accounting EquationAssets

  • Accounts Receivable: Money owed for goods or services rendered which have been received

  • Inventory: Raw materials, work-in-process goods and completely finished goods that are assets which are ready or will be ready for sale


Basic accounting concepts for uf fiscal administrators

Basic Accounting EquationAssets

  • We have two primary types of assets:

    • Current

    • Non-current


Basic accounting concepts for uf fiscal administrators

Basic Accounting EquationAssets

  • Current Assets: Assets that could be converted to cash in less than one year; can be easily liquidated; in some cases these represent the source of funds for day-to-day operations

    • Includes cash and cash equivalents, accounts receivable, inventory, prepaid expenses, and other assets

    • For example, the Student Health Center maintains pharmaceutical inventory


Basic accounting concepts for uf fiscal administrators

Basic Accounting EquationAssets

  • Non-Current Assets: An asset which is not easily convertible to cash or not expected to become cash within the next year

    • Includes property/buildings, leasehold improvements, and intangible assets

    • For example, our research yields new information. We can obtain licenses to sell the rights to this information


Basic accounting concepts for uf fiscal administrators

Basic Accounting EquationAssets

  • Current Assets:

    • Inventory

    • Accounts receivable due within one year

    • Cash and investments used for normal operations

    • Intended for sale

    • Lasts less than one year

  • Non-Current Assets:

    • Property, buildings, equipment, construction in progress

    • Cash and investments not used for normal operations

    • Not intended for sale

    • Lasts more than one year


Basic accounting concepts for uf fiscal administrators

Non-Current

Current

Basic Accounting EquationAssets

  • Equipment: Computers, lab refrigerators, research equipment, vehicles

  • Cash: Cash in the bank

  • Inventory: Physical Plant, Building Maintenance Supplies; Student Health Care Center - Pharmacy

  • Receivables: Billing for services

    provided; e.g., educational outreach

Which assets are current/ non-current?


Basic accounting concepts for uf fiscal administrators

Basic Accounting EquationLiabilities

  • Accounts payable (unpaid but received)

  • Must be paid at a specified time

  • Accrued liabilities for salaries and wages

  • Long term debts

  • Bonds

LiabilitiesAmounts owed to others


Basic accounting concepts for uf fiscal administrators

Basic Accounting EquationLiabilities

  • Accounts payable: Represents our obligation to pay off a short-term debt to our creditors

  • Accrued liabilities: Accounting expense recognized in the books before it is paid 


Basic accounting concepts for uf fiscal administrators

Basic Accounting EquationLiabilities

  • Examples of liabilities at UF:

    • Accounts payable - Invoices for office supplies or other expenses

    • Accrued liabilities - Employee salaries or wages owed

    • Long term debts - For items purchased by financing agreements

What are the liabilities for your department?


Basic accounting concepts for uf fiscal administrators

Basic Accounting EquationNet Assets

  • Net Assets (or fund balance equity)

    • For UF, our net assets are tied to our fund structure

    • What is left when we subtract our liabilities from our assets:

      • Assets - Liabilities = Net Assets

  • In private sector this is referred to as capital or retained earnings


Basic accounting concepts for uf fiscal administrators

Assets – Liabilities = Net Assets

What

UF

has

Others

have

claim

UF has

claim

Basic Accounting EquationNet Assets

  • Let’s look at our accounting equation again

  • Recall, at UF our Net Assets are represented by the difference between our assets and liabilities


Basic accounting equation1

Basic Accounting Equation

  • Any Questions?


Basic accounting concepts for uf fiscal administrators

8

Accounting at UF


Accounting at uf

8

Accounting at UF

  • How do we organize all of the financial data so that we record all of our transactions for money in and money out correctly?


Basic accounting concepts for uf fiscal administrators

Accounting at UFDouble-Entry Accounting

  • Purpose of double-entry (two-sided) accounting

    • Both the assets and liabilities of a business are accounted for

    • Helps to show the give-and-receive of transactions that a business engages in

  • We operate in double-entry accounting through the use of debits and credits


Basic accounting concepts for uf fiscal administrators

Accounting at UFDebits and Credits

  • Purpose of debits and credits

    • Ensures that both sides of the accounting equation are in balance

    • Every transaction requires the same total value for the debits on one side and credits on the other

    • Provides a system of checks and balances


Basic accounting concepts for uf fiscal administrators

Assets / Expense Accounts

Increased

Decreased

Debit

Credit

Liability / Revenue Accounts

Decreased

Increased

Debit

Credit

Accounting at UFDebits and Credits

  • Asset and expense accounts- increased by debit entries (in myUFL +)

  • Liability and revenue accounts- increased by credit entries (in myUFL -)


Basic accounting concepts for uf fiscal administrators

9

Cash

(-)$5,000

0

Asset

(+)$5,000

=

Accounting at UFHow Does This Work at UF?

  • Purchase a biomedical freezer costing $5,000

    • What is changing in our equation in this scenario? (Assets = Liabilities + Net Assets)

  • Increasing asset of $5,000 (biomed freezer) with a debit entry

  • Decreasing cash by $5,000 (purchase) with a credit entry


Basic accounting concepts for uf fiscal administrators

Asset

(+)$5,000

Liability

(-)$5,000

=

Accounting at UFHow Does This Work at UF?

  • Finance the biomedical freezer?

    • What is changing in our equation in this scenario? (Assets = Liabilities + Net Assets)

  • Increasing asset by $5,000 (biomed freezer) with a debit entry

  • Increasing liability by $5,000 (finance) with a credit entry


Basic accounting concepts for uf fiscal administrators

Cash

(-)$5,000

Liability

(+)$5,000

=

Accounting at UFHow Does This Work at UF?

  • Pay off the biomedical freezer?

    • What is changing in our equation in this scenario? (Assets = Liabilities + Net Assets)

  • Decreasing asset by $5,000 (cash to payoff) with a credit entry

  • Decreasing liability by $5,000 (fin. purchase) with a debit entry


Basic accounting concepts for uf fiscal administrators

In myUFL: - Debit is recorded as a positive (+) amount

- Credit is recorded as a negative (-) amount

Accounting at UFReview of Debits and Credits

  • Whether a debit or credit increases or decreases an account balance depends on the type of account

    • Asset and expense accounts- increased by debit entries

    • Liability and revenue accounts- increased by credit entries


Basic accounting concepts for uf fiscal administrators

In myUFL: - Debit is recorded as a positive (+) amount - Credit is recorded as a negative (-) amount

Accounting at UFReview of Debits and Credits

  • Conversely,

    • Asset and expense accounts- decreased by credit entries

    • Liability and revenue accounts- decreased by debit entries


Basic accounting concepts for uf fiscal administrators

Revenues Increase Net Assets

Increased

Debit

Credit

Expenses Decrease Net Assets

Increased

Decreased

Decreased

Debit

Credit

Accounting at UFReview of Debits and Credits

  • Net Assets


Basic accounting concepts for uf fiscal administrators

Accounting at UFHow Does This Work at UF?

Debits/credits in a regular voucher in myUFL


Basic accounting concepts for uf fiscal administrators

Accounting at UFHow Does This Work at UF?

Debits/credits in a regular voucher in myUFL


Basic accounting concepts for uf fiscal administrators

Accounting at UFHow Does This Work at UF?

Regular voucher with accounting entries


Basic accounting concepts for uf fiscal administrators

Accounting at UFHow Does This Work at UF?

Regular voucher with accounting entries


Accounting at uf1

Accounting at UF

  • Any Questions?


Basic accounting concepts for uf fiscal administrators

10

Funding Sources


Basic accounting concepts for uf fiscal administrators

10

Funding SourcesUF Differs From Private Business

  • University of Florida

    • Emphasis is on accountability (how the $ was spent)

    • UF: state funding, sponsored projects, donations/transfers by component units

  • Private Business

    • Emphasis on profit

    • Return to investors

    • Company relies on investors and revenue


Basic accounting concepts for uf fiscal administrators

Funding SourcesFund Accounting

  • UF uses Fund Accounting to establish accountability

    • Classifies money according to the objective or the purpose for which it will be used

    • Each fund is a self-balancing set of accounts (i.e., checkbook)

    • Provides for diverse financial resources w/ different external and legal restrictions and limitations


Basic accounting concepts for uf fiscal administrators

Funding SourcesFund Accounting

  • All transactions are placed in one of several funds

  • Separating transactions allows for accountability to government, donor agencies and other stakeholders

  • Type of fund used may determine spending controls, budget year, and other rules associated with tracking and reporting


Basic accounting concepts for uf fiscal administrators

Funding SourcesJargon Alert!

  • We will reference three concepts that are important to distinguish:

    • “funds”

    • Fund

    • Source of Funds


Basic accounting concepts for uf fiscal administrators

SP

AUX

FL

CU

Funding SourcesFive Sources

  • Let’s look at UF’s funding sources:

    • State of Florida— Yellow

    • Component Units—Green

    • Sponsored Projects—Purple

    • Auxiliaries—Blue

    • Residuals/Returned Overhead—Pink


Funding sources state of florida

FL

Funding SourcesState of Florida

  • Funding comes from:

    • Legislature appropriated money

    • Student tuition, lottery funds

  • Budget-based (budget allocated, funds spent)

  • Example:

    • 101 E&G, Gen Rev- Main Campus

    • 102 E&G, Gen Rev- HSC

    • 103 E&G, Gen Rev- IFAS

    • 105 E&G, Gen Rev- Strategic Fund


Funding sources component units

CU

Funding SourcesComponent Units

  • Funding comes from:

    • UF Foundation

    • Faculty Practice Plans

  • Cash-based (no budget required, only cash)

  • Example:

    • 171 Transfer from Component Units

    • 213 UFRF Allocations


Funding sources sponsored projects

SP

Funding SourcesSponsored Projects

  • Funding comes from:

    • Federal, state, non-government sources

  • Governed by the Division of Sponsored Research

    • Administered by three C&G offices: Main, IFAS, and Engineering

  • Budget-based (budget allocated, funds spent)

  • Example:

    • 201 C&G Federal Restricted

    • 209 C&G Other Restricted


Funding sources auxiliaries

AUX

Funding SourcesAuxiliaries

  • Funding comes from:

    • Reitz Union

    • Transportation and Parking Services

  • Use is based on programmatic purpose

  • Cash-based (no budget required, only cash)

  • Example:

    • 141 Aux-Reitz Union Fund

    • 142 Aux-Transportation and Parking


Funding sources residuals returned overhead

Funding SourcesResiduals/Returned Overhead

  • Funding comes from:

    • Indirect cost recovery

    • Unused federal and other restricted grant funds

  • Cash-based (no budget required only cash)

  • Example:

    • 211 Returned Overhead

    • 212 Residual Funds


Basic accounting concepts for uf fiscal administrators

12

Funding SourcesHow Does This Work at UF?

  • Fund accounting recognizes that our money comes from different sources and allows us to track the flow of the money separately

  • Each department on campus receives money from one or more of our funding sources

  • Each type of funding source has specific rules related to spending (for more information on spending rules, attend PRO302 The Color of Money)


Basic accounting concepts for uf fiscal administrators

Funding SourcesBudget-Based vs. Cash-Based

  • Budget-Based Funds are:

    • APPROP Funds 101-103, 105, 192, 221-222,

    • Student government fund 191

    • Two CG funds 201 and 209

  • Cash-Based Funds are:

    – 131, 141-186, 211-213, 251, 901, 920, 991, V10, V30, V40


Basic accounting concepts for uf fiscal administrators

Funding SourcesBudget-Based vs. Cash-Based

  • Budget-Based Funds

  • Departments can spend up to the allocated budget amounts

  • Spending authority in KK is updated

    • Changes or transfers of budget

    • Expenses

  • Generally revenue will not be recorded


Basic accounting concepts for uf fiscal administrators

Funding SourcesBudget-Based vs. Cash-Based

  • Cash-Based Funds

  • Spending Authority = Revenue – Expense

  • So, by making revenue transactions, departments will automatically have more money to spend

  • By making expenses, the departments will have less money to spend


Basic accounting concepts for uf fiscal administrators

Funding SourcesYTD vs. Cumulative Funds

  • Cumulative Funds = 171, (173, 179) and 201-213

  • Year-to-Date Funds = All other funds

  • YTD – Prior Year Expense Refunds (After Close of FY)

    • Correct using original ChartField

  • YTD - Other Errors (After Close of FY)

    • For example: wrong Account, Fund, or DeptID

    • Information cannot be changed because budget year is closed (no E2E)


Basic accounting concepts for uf fiscal administrators

Funding SourcesYTD vs. Cumulative Funds

  • Cumulative Funds - Expense Refunds (AfterClose of FY)

    • May do E2E using original ChartFields

  • Cumulative Funds – Error Correction

    • May do E2E using original Chartfields


Basic accounting concepts for uf fiscal administrators

Funding Sources Class Activity #1

  • Please refer to the green handout

  • Work with a partner to answer the basic accounting questions and then we will discuss as a group


Basic accounting concepts for uf fiscal administrators

  • • Computers

  • • Vehicles

  • • Research equipment

  • • Cash on hand

Funding Sources Activity #1

  • What is the Basic Accounting Equation.

  • • Assets = Liabilities + Net Assets

  • List three examples of assets for your department.

  • List two differences between current and non-current assets.

  • • Current assets are intended for sale (includes inventory)

  • • Non-current includes property, buildings, equipment


Basic accounting concepts for uf fiscal administrators

Funding Sources Activity #1

  • What are two examples of liabilities?

  • • Invoices to be paid

  • • Salaries owed

is what remains when we subtract our

liabilities from our assets.

Net Assets

__________

5.


Basic accounting concepts for uf fiscal administrators

Funding Sources Activity #1

  • What are two examples of liabilities?

  • In myUFL _____ are recorded as a (+) positive amount and ______ are recorded as a (-) negative amount.

  • • Invoices to be paid

  • • Salaries owed

is what remains when we subtract our

liabilities from our assets.

5.

Net Assets

debits

credits


Basic accounting concepts for uf fiscal administrators

State of FloridaComponent Units

Residuals and Returned Overhead

Sponsored ProjectsAuxiliaries

Funding Sources Activity #1

  • List three characteristics of fund accounting.

Accountability

Spending control

Transactions are placed in one of several funds

  • Name the five primary funding sources at UF.


Funding sources

Funding Sources

  • Any Questions?


Basic accounting concepts for uf fiscal administrators

Break


Basic accounting concepts for uf fiscal administrators

13

ChartFields


Basic accounting concepts for uf fiscal administrators

13

ChartFields Definition

  • How does the UF Accounting System track our financial transaction data so that we can collect and analyze our financial information for our department?

    • We enter all transactions into (myUFL) and track them via…ChartFields


Basic accounting concepts for uf fiscal administrators

ChartFields Definition

  • ChartFields are the heart of the UF accounting system (myUFL). They allow for:

    • Collection of financial transaction data

    • Analysis of financial transaction data

  • ChartFields include, at least:

    • Funds

    • Departments

    • Account Codes

  • Each type of ChartField is assigned characters to represent them


Basic accounting concepts for uf fiscal administrators

ChartFields Definition

  • A ChartField is a data field that stores accounting information and is used to identify transactions and track financial activity

  • When you combine ChartFields in any type of transaction, you are MAPPING where the financial transaction is recorded in the General Ledger…


Basic accounting concepts for uf fiscal administrators

ChartFields Definition

  • Let’s review each of the ChartFields used at UF to track our financial data

  • Please refer to your yellow handout titled “ChartFieldsQuickGlance” Table


Basic accounting concepts for uf fiscal administrators

ChartFields List of ChartFields

  • Business Unit

  • DeptID

  • Fund

  • Program

  • Budget Reference

  • Account

  • Source of Funds

  • Dept Flex

  • Project

  • EmplID

  • CRIS

  • SetID


Basic accounting concepts for uf fiscal administrators

ChartFields Business Unit

  • 5-character field

  • Represents legal entity for reporting purposes

  • Examples:

    • UFLOR- Univ. of FL

    • CREFI- Citrus Research Education Foundation, Inc.

  • Required field


Basic accounting concepts for uf fiscal administrators

First 2 digits =

Second 2 digits =

Last 4 digits =

the college

the department

division / subdivision

ChartFields DeptID

  • 8-character field

  • Identifies the department responsible for the fiscal activity

  • Required field


Basic accounting concepts for uf fiscal administrators

ChartFields DeptID

  • For Example:

2 8 0 9 2 7 0 0

28 = College of Vet Medicine

09 = Small Animal Clinical Sciences

2700 = Vet Med Cardiology


Basic accounting concepts for uf fiscal administrators

  • For Example:

2 8 0 9 2 7 0 0

28 = College of Vet Medicine

09 = Small Animal Clinical Sciences

2700 = Vet Med Cardiology

ChartFields DeptID

1 6 1 2 0 7 0 0

16 = College of Liberal Arts & Sciences

12 = Chemistry

0700 = Inorganic Division


Basic accounting concepts for uf fiscal administrators

Recall We discussed fund accounting at UF

ChartFields Fund

  • 3-character field

  • Identifies what type of money you are spending

  • Allows for managing revenues and expenditures of similar activities

  • 93 fund codes in use

  • Required field


Basic accounting concepts for uf fiscal administrators

ChartFields Fund

  • For Example:

Appropriations 101-122, 125, 132, 192, 221-222

Auxiliary141-163

Component Unit171, 213

Misc/Incidental173,179,181,182,185,186,191,193,194,195,196

Grant Funds201,209,214

Residuals/Returned

Overhead211, 212

Agency901, 920, 991, V10, V30, V40


Basic accounting concepts for uf fiscal administrators

ChartFields Program

  • 4-character field

  • Establishes how the money is being used

  • Classifies a transaction: instruction, research, administrative, academic support

  • Required field


Basic accounting concepts for uf fiscal administrators

15

0100

0500

1100

2100

2200

3100

3200

3300

Physical Plant Admin

Custodial Services

Instruction

Institute and Research Centers

Individual or Project Research

Patient Services

Community Services

Cooperative Extension Services

ChartFields Program

  • The first two digits represent the program as reported "externally." The last two digits are used for further break-down.


Basic accounting concepts for uf fiscal administrators

ChartFields Budget Reference

  • 5-character field

  • Identifies the timeline for budget based funds

  • Two values being used: - CRRNT (Current FY) - CYFWD (Carry forward from previous FY)

  • Required field - defaults to CRRNT


Basic accounting concepts for uf fiscal administrators

ChartFields Jargon Alert!

  • CRRNT (Current)

    • When spending State Appropriations in the FY in which it was budgeted, use a Budget Reference ChartField value of “CRRNT”


Basic accounting concepts for uf fiscal administrators

ChartFields Jargon Alert!

  • CYFWD (Carry Forward)

    • Unexpended balances at June 30 of each year are carried forward and budgeted in the next fiscal year

    • Same restrictions as state appropriations but usually not used for recurring expenses (i.e., salaries)

    • Budget Reference ChartField value of “CYFWD”


Basic accounting concepts for uf fiscal administrators

ChartFields Account

  • 6-character field

  • Classifies financial activity within the general ledger

  • First digit of the account indicates account type

  • 8 classifications: 1 = assets, 2 = liabilities, 3 = equity, etc.

  • Required field


Basic accounting concepts for uf fiscal administrators

ChartFields Account

The 8 main account designations used at UF:

1xxxxx       Assets

2xxxxx       Liabilities

3xxxxx      Equity

4xxxxx       Operating  Revenue

5xxxxx       Non-operating Revenue

6xxxxx       Payroll and Benefits

7xxxxx       Operating Expenses

8xxxxx      Non-operating Expenses


Basic accounting concepts for uf fiscal administrators

16

ChartFields Account

Second digit of the account code further defines the transaction; for example:

71xxxx: Contractual and Professional Services (non-employees)

72xxxx: Utilities and Communications

73xxxx: Materials and Supplies

74xxxx: Repairs and Maintenance

75xxxx: Scholarship, Fellowship, Student Loans

77xxxx: Travel Expenses

78xxxx: Capital Asset Purchases

79xxxx: Other Operating Expenses


Basic accounting concepts for uf fiscal administrators

ChartFields Account

  • When viewing departmental ledgers you will only see account designations beginning with 4 through 8

  • myUFL ledgers shows only revenues and expenses


Basic accounting concepts for uf fiscal administrators

ChartFields Source of Funds

  • 7-character field

  • Tracks revenue and expenditures

  • Identifies who is filling your bucket with money; provides accountability to donors

  • Required field only for grant funds or transfers from component units


Basic accounting concepts for uf fiscal administrators

Use with fund 171

Use with funds 201, 209

Use with fund 171

Use with fund 213

F = UF Foundation

G = Granting agent

H = HSC Source

R = Royalties

ChartFields Source of Funds

  • For example, G000400 is used for Florida Department of Health and this Source of Fund is used with Fund 209.

  • First letter identifiers:


Basic accounting concepts for uf fiscal administrators

17

ChartFields Dept Flex

  • 10-character field

  • Used by certain departments to further identify a revenue or expenditure

  • Optional field which may be required for certain funds (i.e., SFA funds or DOCE)

  • Use must be requested


Basic accounting concepts for uf fiscal administrators

ChartFields Project

  • 8-character field

  • Identifies activity for projects in construction funds and contract and grant funds that may extend over years

  • Allows for segregation and tracking of projects

  • Required field only for sponsored projects and construction funds


Basic accounting concepts for uf fiscal administrators

ChartFields EmplID

  • 8-character field

  • Number assigned to UF affiliates, etc.

  • Allows department to track transactions by EmplID

  • Optional field


Basic accounting concepts for uf fiscal administrators

ChartFields CRIS

  • 6-character field

  • Current Research Information System

  • Used to meet the federal reporting requirements for units that cross funds, departments, projects

  • May be required for some departments


Basic accounting concepts for uf fiscal administrators

ChartFields SetID

  • 5-character field

  • Set of tables that defines the accounting structure

  • Only SetID currently being used is UFLOR

  • Required field - will default


Basic accounting concepts for uf fiscal administrators

ChartFields ChartField Combination

  • Each ChartField is used with other ChartFields to create a “ChartField Combination” when completing a financial transaction


Basic accounting concepts for uf fiscal administrators

ChartFields ChartField Combination

Example of a ChartField Combination in a Voucher


Basic accounting concepts for uf fiscal administrators

18

ChartFieldsWhy Are ChartFields Important?

  • When you complete a set of ChartFields for any financial transaction, you are MAPPING the transaction into the myUFLGeneral Ledger…

myUFL

APPROP

UFLOR

01020000

600000

101

$$$$

General Ledger


Basic accounting concepts for uf fiscal administrators

18

ChartFieldsIf You Use an Incorrect ChartField

  • The transaction could go to the incorrect cost center or...

  • The transaction could stop because of the error


Basic accounting concepts for uf fiscal administrators

ChartFields Jargon Alert!

  • What is a Budgetary Cost Center?

  • A combination of ChartFields which reflects the level at which the “authority to spend” is controlled

  • This combination can represent a department, organization, or fiscal activity which must be separately accounted or which needs budgeting


Basic accounting concepts for uf fiscal administrators

ChartFields ChartField Errors Can Result In...

  • Budget Errors

    • No money or...no budget exists

    • Incorrect ChartField

    • Budget date out of bounds

    • Budget is closed

    • Ref doc balance is zero


Basic accounting concepts for uf fiscal administrators

ChartFields ChartField Errors Can Result In...

  • Recycle Errors

    • ChartField is not compatible with one of the other ChartFields or...

    • Duplicate invoice number

    • Grant Cost Accounting Standard (CAS) violation


Basic accounting concepts for uf fiscal administrators

ChartFields Combo Edit

  • A Combo Edit is

    • An error detection tool in myUFL designed to identify invalid ChartField combinations and to report the error via an onscreen alert

  • To resolve reported error

    • Review the CF entries you have made

    • Re-select ChartFields


Basic accounting concepts for uf fiscal administrators

ChartFields To Avoid CF Errors

  • Pay attention to warning messages

    • Fix before saving

  • Use the Refresh button

    • To see what the page looks like before saving

  • Watch that scrolling wheel!

    • Sometimes it will change a dropdown value

    • Click on a white space on the screen to prevent scroll wheel from changing values


Basic accounting concepts for uf fiscal administrators

19

ChartFieldsChoosing a Correct CF Combination

  • Departmental “Cheat Sheets”

  • SpeedCharts (for Vouchers)

  • Budget Details will give you some options

  • Project Budget can give you the exact ChartField combination for grants

    • Role Required: UF_GM_PC_INQUIRY


Basic accounting concepts for uf fiscal administrators

ChartFields SpeedCharts

  • SpeedCharts

    • Enable you to group together and name an unlimited number of ChartField Combinations

    • Used by entering the SpeedChart code during data entry instead of the individual CFs in combination


Basic accounting concepts for uf fiscal administrators

ChartFields To Fix CF Errors

  • Use Budget Details tool

    Commitment Control  Review Budget Activities  Budget Details

  • Use the Project Budget tool

    Grants  Awards  Project Budget

  • Query: UF_AP_BUDGET_ERROR


Basic accounting concepts for uf fiscal administrators

Click: Search to display the Search Results table

ChartFields Budget Details - APPROP

Enter search valuesinto the ChartFields


Basic accounting concepts for uf fiscal administrators

ChartFields Budget Details - APPROP

Search Results Table


Basic accounting concepts for uf fiscal administrators

Click: Search to display the Search Results table

ChartFields Budget Details - Grant

Enter search valuesinto the ChartFields


Basic accounting concepts for uf fiscal administrators

Project

Fund Code

Business Unit

Ledger Group

Account

Department

ChartFields Budget Details - Grant

Search Results Table


Basic accounting concepts for uf fiscal administrators

Click: Search

ChartFieldsProject Budget

  • Grants  Awards  Project Budget

Enter/Select: Business Unit

Enter/Select: Project


Basic accounting concepts for uf fiscal administrators

Click on: General Ledger Detail tab

ChartFields Project Budget

Note: Project


Basic accounting concepts for uf fiscal administrators

ChartFields Budget Error Correction

  • “Exceeds Budget Tolerance”

    • Get more budget or change ChartField

  • “No Budget Exists”

    • Incorrect Chartfield; change ChartField

  • “Budget Date” or “Budget Closed”

    • Grant has ended or C&G hasn’t updated

  • “Ref Doc Balance is zero”

    • PO has been finalized

    • You may “un-finalize” if there is any money left in PO


Project summary page

ChartFields

Project Summary Page

Enter/Select: Business Unit

Enter/Select: Project


Basic accounting concepts for uf fiscal administrators

ChartFields Demonstration

Example of ChartFields used in query data


Chartfields

ChartFields

  • Any Questions?


Basic accounting concepts for uf fiscal administrators

21

Ledger Groups and ChartFields


Basic accounting concepts for uf fiscal administrators

21

Ledger Groups and CFs Required ChartFields

  • The combination of ChartFields required is based on ledger groups

  • Based on the type of money you are spending you will have certain ChartFields required for that transaction

  • How do I know which ChartFields to use when creating a transaction in myUFL?

ChartFields required in myUFL are based on Ledger Groups.


Basic accounting concepts for uf fiscal administrators

Ledger Groups and CFs Overview

  • Different ledger groups for different categories of moneys available to departments

    • Each fund source assigned to a ledger group

    • Each ledger group has different “rules” associated with available spending authority or how the moneys are “controlled” from an accounting perspective


Basic accounting concepts for uf fiscal administrators

FL

- State Appropriations- Concessions

Ledger Groups and CFs APPROP

  • Different funding sources may be grouped under the same ledger group—for example:

APPROPLedger Group


Basic accounting concepts for uf fiscal administrators

SP

- Sponsored Projects

Ledger Groups and CFs KKGMCHD

  • Different funding sources may be grouped under the same ledger group—for example:

KKGMCHD Ledger Group


Basic accounting concepts for uf fiscal administrators

AUX

CU

  • - Component Units

  • - Auxiliaries

  • - Residual/Overhead Funds

R

Ledger Groups and CFs CASH_BASED

  • Different funding sources may be grouped under the same ledger group—for example:

CASH_BASED Ledger Group


Basic accounting concepts for uf fiscal administrators

- Funds for Capital Projects

CP

Ledger Groups and CFs CONST

  • Different funding sources may be grouped under the same ledger group—for example:

CONSTLedger Group


Basic accounting concepts for uf fiscal administrators

Ledger Groups and CFs Required ChartFields

“The Basic Six”

  • All revenue and expense transactions require these six ChartFields:

  • Business

  • Account

  • Fund

  • DeptID

  • Program Code

  • Budget Ref


Basic accounting concepts for uf fiscal administrators

Ledger Groups and CFs Required ChartFields

By Ledger Group:

  • APPROP Ledger Group

    • Basic Six (All of the above)

  • CASH_BASED Ledger Group:

    • Basic Six...plus

      • Source of Funds

      • Project (may or may not be required by all)

      • Dept Flex (required only by Fund 143, DOCE)


Basic accounting concepts for uf fiscal administrators

Ledger Groups and CFs Required ChartFields

By Ledger Group:

  • KKGMCHD Ledger Group

    • Basic Six...plus

      • Project

      • Source of Funds

  • CONST Ledger Group

    • Basic Six...plus

      • Project

120


Basic accounting concepts for uf fiscal administrators

CU

Ledger Groups and CFs Required ChartFields

Certain funds may require specific ChartFields:

  • CASH_BASED #171

    • Business Unit

    • Account

    • Fund

    • DeptID

    • Program Code

    • Budget Ref

    • Source of Funds

    • Others may require Project ID or Flex


Basic accounting concepts for uf fiscal administrators

FL

Ledger Groups and CFs Required ChartFields

Certain funds may require specific ChartFields:

  • State APPROP #101

    • Business Unit

    • Account

    • Fund

    • DeptID

    • Program Code

    • Budget Ref


Basic accounting concepts for uf fiscal administrators

SP

Ledger Groups and CFs Required ChartFields

Certain funds may require specific ChartFields:

  • Sponsored Project #201

    • Business Unit

    • Account

    • Fund

    • DeptID

    • Program Code

    • Budget Ref

    • Source of Funds

    • Project Number


Basic accounting concepts for uf fiscal administrators

Ledger Groups and CFs Class Activity #2

  • Please refer to the blue handout

  • Examine each scenario listed and identify the required ChartFields


Basic accounting concepts for uf fiscal administrators

Ledger Groups and CFs Activity #2

  • Scenario 1: New table and chairs / state appropriations money

  • Business Unit

  • Account

  • Fund

  • DeptID

  • Program

  • Budget Ref

“The Basic Six”


Basic accounting concepts for uf fiscal administrators

Ledger Groups and CFs Activity #2

  • Scenario 2: Printer / 143 DOCE Fund

  • Business Unit

  • Account

  • Fund

  • DeptID

  • Program

  • Budget Reference

  • Dept Flex

“The Basic Six”

Plus


Basic accounting concepts for uf fiscal administrators

Ledger Groups and CFs Activity #2

  • Scenario 3: Medical research / 201 Fund

  • Business Unit

  • Account

  • Fund

  • DeptID

  • Program

  • Budget Reference

  • Source of Funds

  • Project

“The Basic Six”

Plus


Basic accounting concepts for uf fiscal administrators

Ledger Groups and CFs Activity #2

  • Scenario 4: Recognition plaques / 171 Fund

  • Business Unit

  • Account

  • Fund

  • DeptID

  • Program Code

  • Budget Reference

  • Source of Funds

“The Basic Six”

Plus


Ledger groups and chartfields

Ledger Groups and ChartFields

  • Any Questions?


Basic accounting concepts for uf fiscal administrators

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Basic accounting concepts for uf fiscal administrators

24

myUFLCommitment Controland General Ledger


Basic accounting concepts for uf fiscal administrators

24

myUFL Commitment Control

How does the UF Accounting System (myUFL)

assist us in managing our department’s money?

  • Built into the UF Accounting System is your available spending authority which enables you to spend money

  • Your spending authority is identified and monitored via Commitment Control or KK


Basic accounting concepts for uf fiscal administrators

myUFL Commitment Control

  • Commitment Control (KK)

  • Is integrated into our financial transactions

  • Designed to answer: “What is my available spending authority?”

  • Revenue and expense transactions and encumbrances initially flow through KK

    • Exception: Revenues in budget-based ledger groups, which includes approp and sponsored projects


Basic accounting concepts for uf fiscal administrators

myUFL Jargon Alert!

  • Encumbrances

  • Set money aside for future payment obligations

  • Goods or services purchased, but not yet received


Basic accounting concepts for uf fiscal administrators

myUFL Commitment Control

Q: How does Commitment Control affect me?

A: Lets you know you have money or budget available to spend and identifies your spending authority


Basic accounting concepts for uf fiscal administrators

myUFL Commitment Control

  • Purpose of Commitment Control (KK)

  • Provides the tools for controlling budgets & tracking revenues and expenses

  • Provides "real time" expenditure checking against budgets

    • Exception: Travel checks overnight

  • Provides error and warning messages to fiscal administrators entering transactions

    • (Sign up for exceptions notifications- see instruction guides)


Basic accounting concepts for uf fiscal administrators

Enter transaction into the

sub-system

Transaction flows through

KK and checks budget

KK is updated

Process updates

the General Ledger

myUFL What Happens Next?


Basic accounting concepts for uf fiscal administrators

25

myUFL General Ledger

  • Definition

  • The General Ledger (GL) is the place in the UF accounting system where the financial information resides...

after the money has actually been spent


Basic accounting concepts for uf fiscal administrators

myUFL General Ledger

Purpose of General Ledger

  • Provides final official accounting record of UF

  • Master account that combines the results of all individual accounts

  • Consolidates transactions from multiple sources

  • Provides summary data necessary for financial reporting


Basic accounting concepts for uf fiscal administrators

myUFL General Ledger

  • The General Ledger is organized via the Chart of Accounts

  • An account is basically a record of the activities in that category

  • Accounts may include

    • Assets

    • Liabilities

    • Equity

    • Revenue Accounts

    • Expense Accounts


Basic accounting concepts for uf fiscal administrators

KK functions only with these accounts

myUFL How Does This Work at UF?

The 8 main account designations used at UF:

1xxxxx         Assets

2xxxxx         Liabilities

3xxxxx        Equity

4xxxxx         Operating  Revenue

5xxxxx         Nonoperating revenue

6xxxxx         Payroll and Benefits

7xxxxx         Operating Expenses

8xxxxx      Nonoperating Expenses


Basic accounting concepts for uf fiscal administrators

myUFL Review

  • If Commitment Control (KK) identifies past payments and reserves funds for future payment obligations…

    • KK is for budget

  • Then…the General Ledger is the place in the UF Accounting System where the financial information resides…

    • GL is for recording and reporting


  • Muufl kk gl

    muUFL KK & GL

    • Any Questions?


    Basic accounting concepts for uf fiscal administrators

    26

    Reports


    Basic accounting concepts for uf fiscal administrators

    26

    Reports GL and Reporting

    • The General Ledger is closed at the end of each month

    • A few days after the GL closes, departmental reports are generated based on the information in the GL

    • Let’s take a quick look at this process…


    Basic accounting concepts for uf fiscal administrators

    Reports Jargon Alert!

    • Delivered Reports

      • Already generated and retrieved quickly

    • Prompted Reports

      • You specify what you want to see

      • Display the prompt values on the reports that the user enters


    Basic accounting concepts for uf fiscal administrators

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

    A

    B

    C

    Reports Timeline

    • Subsystem closes on 2nd business day (Payroll, A/P, PCard, Travel…)

    • Current month GL closes no later than 3rd business day of new month

    • Delivered reports – Available 5 business days after GL closes


    Basic accounting concepts for uf fiscal administrators

    26

    Reports Navigation to Reports

    This is where you will find the Reports on the myUFL menu


    Basic accounting concepts for uf fiscal administrators

    Reports Delivered Reports

    • Based on the financial activity in your department, you will have the following reports available:

      • Monthly Financial Summary (Appropriations, Cash)

      • Transaction Detail

      • Payroll Reconciliation Detail

      • Projected Payroll Detail

      • Open Encumbrance

      • KK to GL Summary Comparison

      • PI (Principal Investigators) Summary


    Basic accounting concepts for uf fiscal administrators

    Reports GL and Reporting

    Enterprise Reporting - Provides access to additional prompted reports - Every two days the information updates data warehouse


    Basic accounting concepts for uf fiscal administrators

    27

    Reports GL and Reporting

    • Enterprise Reporting allows the department to view information exactly as it is entered

    • Does not reconcile or correct any data in myUFL

    • If there are errors or discrepancies in your reports, first check your original transactions in myUFL


    Basic accounting concepts for uf fiscal administrators

    Reports GL and Reporting

    • UF departments should ensure that all financial data on their ledgers are traced or checked back to

      • Receipts, billings, expenditures, encumbrance changes, transfers, budget changes, etc.

    • This process allows us to verify our transactions and validate our balances to identify any errors


    Reports

    Reports

    • Any Questions?


    Basic accounting concepts for uf fiscal administrators

    27

    Wrap-Up


    Let s review

    Let’s Review!

    • What is the Basic Accounting Equation?

    • How are debits and credits used in accounting?

    • What is fund accounting? What are some of UF’s funding sources?


    Let s review1

    Let’s Review!

    • What is the Basic Accounting Equation?

    • How are debits and credits used in accounting?

    • What is fund accounting? What are UF’s funding sources?

    • What are the elements that we use to track our financial transactions?

    • What is the purpose of the General Ledger and Commitment Control?

    • What system do we use to obtain reports?


    Today we discussed

    Today, We discussed…

    • Basic accounting concepts including assets, liabilities and net assets; use of debits and credits; fund accounting; funding sources at UF

    • The myUFL accounting system: ChartFields, ledger groups, and required ChartFields

    • Managing your data including commitment control; general ledger; chart of accounts; and reporting


    To learn more please attend

    To Learn More, Please Attend

    • PRO302 Color of Money - Reviews appropriate use of funds at UF

    • PST950 Budget & Commitment Control - Reviews basic budget information and how to manage your budget

    • PST130 Departmental Reconciliations - Learn how to obtain and manage financial activities at the department level

    • PRO303 Internal Controls - Reviews the internal controls at UF and the audit process


    Additional resources

    Additional Resources

    • myUFL Reporting courses:

      • PST910 Reporting: Basics

      • PST117 Reporting: PowerPlay


    Follow up materials

    Follow-up Materials

    • Review “ChartFieldsQuickGlance Table” (yellow handout) and keep a copy at your desk

    • Review “Required ChartFields by Fund” which defines specific required ChartFields for various funds.

      • Available online at the ChartFields Toolkit.

  • Review “Using myUFL Account Codes” also online on the ChartFields Toolkit.


  • Myufl toolkits

    • Located at:

    http://hr.ufl.edu/training/myUFL/Toolkits/

    myUFL Toolkits

    • Resources

      • Web Simulations

      • Instruction Guides

      • Security Roles

      • Training

      • Contact Information

      • Other Helpful Information


    Myufl toolkits available

    myUFL Toolkits Available


    Best practice guides

    Best Practice Guides

    Located at:

    http://www.fa.ufl.edu/forms-and-publications/best-practice-guides/


    Department visits are available

    • Purchasing

    • PCard

    • Vouchers

    • Corrections

    • Travel

    • Payroll

    • Tax Service

    • Deposits

    • Any other areas with questions

    Barbara Bennett352 [email protected]

    • Please contact:

    Department Visits Are Available

    • Finance & Accounting can cover:


    Workshop evaluation

    Workshop Evaluation

    • Course Evaluations have gone green!

    • Training and Organizational Development provides online evaluations

    • Within the next three days you should receive an email request to provide feedback on today’s class

    • Please take a few minutes to provide feedback on your experience


    Basic accounting concepts for uf fiscal administrators

    The email will include a link to this page

    Please let us know if you do not receive an email invitation


    Thank you for attending

    Thank you for attending!


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