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PeopleSoft General Ledger

PeopleSoft General Ledger. UNIVERSITY OF HOUSTON SYSTEM-WIDE. Chartfield Definition. PeopleSoft General Ledger uses chartfields to identify journal entries. Each chartfield contains information that defines a transaction in terms of responsible party, fund source and function of entity.

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PeopleSoft General Ledger

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  1. PeopleSoft General Ledger UNIVERSITY OF HOUSTON SYSTEM-WIDE

  2. Chartfield Definition • PeopleSoft General Ledger uses chartfields to identify journal entries. • Each chartfield contains information that defines a transaction in terms of responsible party, fund source and function of entity.

  3. Business Unit Fund Code Department Program Project ID Account Budget Reference Chartfield 1 PeopleSoft E&G ChartFields

  4. Fund Code Grant Related Values Sponsor Type Funding Agency CFDA Code Sponsor ID Fund Related Values

  5. Business Unit Department Code Organizational Related Values

  6. Program Code Project ID Chartfield 1 Activity Related Values

  7. Cost Center Definition • A combination of Chartfields constitutes a cost center. It defines whose money it is, what type of money it is, and what type of activity it is being spent to support.

  8. Cost Center Composition • A Cost Center will include: • Business Unit • Department • Fund Code • Program • Project ID

  9. Non-Project/GrantCost Center Example 00730-2063-H0066-A0838-NA where…. 00730 = Business Unit 2063 = Fund Code H0066 = Department A0838 = Program NA=Non project/grant

  10. Project/Grant Cost Center Example 00730-1026-H0124-B0001-G000052 where…. 00730 = Business Unit 1026 = Fund Code H0124 = Department B0001 = Program G000052 = Project ID

  11. Business Unit Fund Code Department Program Project ID Account Budget Reference Chartfield 1 Review of ChartFields

  12. Understanding the Business Unit • Organizations are divided into entities for operational or reporting purposes. • PeopleSoft defines these entities as Business Units. • Each UHS component is defined as a Business Unit.

  13. UHS Business Units • 00730 - University of Houston • 00759 - UH Clear Lake • 00784 - UH Downtown • 00765 - UH Victoria • 00783 - UH System Administration • 00797 - UH System Consolidated

  14. Fund Code • Each fund is a balanced ledger. • Funds are coded by source or type of monies they represent. • Defined through a four digit Fund Code.

  15. 1XXX = State 2XXX = Designated 3XXX = Auxiliary 4XXX = Restricted 5XXX = Grants 6XXX = Endow. & Loans 7XXX = Plant 9XXX = Agency UHS Fund Codes

  16. Department Code • Each UHS department is assigned a unique five digit code. • Leading alpha character for campus. • Four numeric characters assigned sequentially . • Hierarchy is assigned through department trees.

  17. UHS Department Codes • HXXXX = UH departments • CXXXX = UHCL departments • DXXXX = UHD departments • VXXXX = UHV departments • SXXXX = UHSA departments

  18. Program Code • Five digits are used to uniquely identify a non-project cost center either within or across departments • First digit tells the purpose of the program by expenditure function • Expenditure function is related to required NACUBO reporting

  19. UHS Program Codes • AXXXX = Instructional programs • BXXXX = Research programs • CXXXX = Public Service • DXXXX = Academic Support • EXXXX = Student Services • FXXXX = Institutional Support • GXXXX = Plant • HXXXX = Scholarship • IXXXX = Auxiliary

  20. Project ID • Project cost centers use a common Program. • Uniqueness of Cost Center provided by Project ID. • Can be used for Grants, Capital and other projects. • Project ID is a seven digit code.

  21. UHS Project ID • GXXXXXX = Grant or sponsored project. • PXXXXXX = Capital or building project. • AXXXXXX=Administrative project. • IXXXXXX=Internal Award project.

  22. Account • Account describes the nature of the transaction. • Account uses a five digit code. • There are five Account types. • The first digit of the code describes the type of account.

  23. Balance Sheet Items 1XXXX = Asset 2XXXX = Liability 3XXXX = Fund Equity Income Statement Items 4XXXX = Revenue 5XXXX = Expense UHS Account Codes

  24. PeopleSoft Finance Transaction Chartfields forNon-Proj/Grnt Cost Center • Identified as: 00730-2063-H0066-A0838-NA-53905

  25. PeopleSoft Finance Transaction Chartfields forProj/Grnt Cost Center • Identified as: 00730-1026-H0124-B0001-G000052-53905

  26. Budget Reference • Budget Reference is the period of time for which expenditures are planned and authorized. • UHS has designed six digit Budget Reference coding. • BPXXXX • UHS Budget Reference is equivalent to the Fiscal Year.

  27. Budgetary Control Elements that are part of the Budgetary Control design include: • Budget Types • Budget Keys • Budget Checking

  28. Budget Types • Revenue (REVEST) Budgets • Represents authorization to generate revenue • Organization (ORG) Budgets • Expenditure budget for Non-Proj/Grt cost centers • Project/Grant (PROJ_GRT) Budgets • Expenditure budget for Proj/Grt cost centers

  29. Budget Keys • The Chartfield values PeopleSoft uses to determine available funds for budget checking transactions. • UH budget checking occurs at the cost center/budget account level.

  30. Budget Checking Budgets can be: • Controlled • Lack of sufficient budget will cause a journal to fail. The ORG and PROJ/GRT budget types are set to Control. • Track w/ Budget • A journal will pass regardless of adequacy of budget, as long as the appropriate budget category exists. External feeds such as telephone and postage are set to this option. • Track w/out Budget • A journal will pass as long as the cost center is an active, valid one. No budget is required. The REVEST budget type is set to this option as well as all Salary & Wage transactions.

  31. University Funding Sources/Uses • Operating Funds • Ledger 1 - Educational and General Funds - Funds for administration, institutional expense, instruction and departmental research, physical plant operation, libraries, and other items relating to instruction.

  32. University Funding Sources/Uses • Ledger 1 (cont.) - Most state appropriations are accounted for in this fund. These consist of our General Revenue Appropriations that are retained in the State Treasury in Austin that the university expends against. There are certain funds in this group that are collected locally, such as tuition and indirect cost that the university collects locally, but is required to deposit in the State Treasury that the university expends against.

  33. University Funding Sources/Uses • Operating Funds • Ledger 1 Restrictions • Ledger 1 funds cannot be expended for entertainment expenses, alcoholic beverages, gifts, service awards costing more than $50. Ledger 1 funds cannot be used to purchase alcoholic beverages.

  34. University Funding Sources/Uses • Operating Funds • Ledger 2 - Designated Funds - Funds arising from sources that have been internally designated by management and approved by the Board of Regents to be used for special purposes. The funds are collected locally and deposited in University of Houston bank accounts. This includes designated tuition and investment income, which are available to the President for central allocation. These funds are also composed of student lab and course fees, whose rate and use is determined by the colleges.

  35. University Funding Sources/Uses • Operating Funds • What does this mean? • In most cases, ledger 2 (designated) funds or certain unrestricted auxiliary (ledger 3) funds shall be used for payment of expenditures for official functions and discretionary items. • What are discretionary expenditures? • Examples of these type of expenses are business meals, gifts or awards, and club memberships.

  36. University Funding Sources/Uses • Discretionary expenditures – Restrictions • Tickets to concerts, plays, athletic events – Limited occasions – mainly fund-raising activities for potential university donors, recruitment of faculty or staff, or other official university guest where benefit to university is clearly demonstrated.

  37. University Funding Sources/Uses • Discretionary expenditure restrictions (cont.) • Flowers – Flowers for centerpieces of decorations for official functions or as awards of part of award ceremonies may be purchased with appropriate university funds. Flowers for university employee or family members should be made from personal funds and may not be paid with university funds.

  38. University Funding Sources/Uses • Discretionary expenditure restrictions (cont.) • Gifts and awards – Employee service and/or safety awards or awards to donors, potential donors and other contributors to the university mission are permitted. Staff award programs require the approval of Human Resources and selection of recipients requires the approval of the dean or director.

  39. University Funding Sources/Uses • Discretionary expenditure restrictions (cont.) • Club memberships – University-paid memberships may be approved by the president for certain officials as required to carry out their designated responsibilities. Expenditures for business purposes incurred through these memberships may be paid from university funds. Individuals are responsible for all personal expenditures incurred and any taxes resulting from these memberships.

  40. University Funding Sources/Uses • Discretionary expenditure restrictions (cont.) • Alcoholic beverages - Expenditures for alcoholic beverages may be paid from university funds, but must be itemized and provided with the appropriate account where the cost is known. State law limits the consumption of alcoholic beverages to non-duty times. Therefore, they may not be served at official university functions between 8 a.m. and 5 p.m. Monday through Friday.

  41. University Funding Sources/Uses • Discretionary expenditure restrictions (cont.) • Entertainment expenses – Expenses within the limits provided may be paid using university funds as follows • Expenses related to recruitment of perspective faculty and staff (limited to president, vice presidents, dean, associate dean) considered to be key to the search process. • Expenses related to events involving official university guests – donors, potential donors, visiting lecturers and scientists, visitors from foreign countries, individuals interested in university programs and problems and guests invited to assist in the development of new programs and existing ones, alumni, business and community leaders.

  42. University Funding Sources/Uses • Discretionary expenditure restrictions (cont.) • Conferences, workshops, seminars, meetings or retreats for university employees. • Meal and refreshments may be paid from appropriate university funds if the benefit to the university is clear and refreshments are authorized by the dean or director. Regular meeting expenses can be authorized annually. Approval by the responsible party is required if the cost if the expenditure, exclusive of speaker fees and expenses, exceeds $2,500. (Official Function Form must be submitted)

  43. University Funding Sources/Uses • Discretionary expenditure restrictions (cont.) • The below functions do not require submission of an official function form but are subject to state statute and restrictions to all restrictions on fund use. • Entertainment and meal expenses for conference and workshops for external community and are supported by income from registration fees and other restricted funds as long as all expenses are covered by revenues/other restricted funds. • Expenses for events sponsored or oriented toward students or potential students. • Food and discretionary items used directly in teaching or research. • Food served to children in the Child Care Center and the Human Development Lab School.

  44. University Funding Sources/Uses • Ledger 3 - Auxiliary Enterprises Funds - Funds for activities that furnish services to students, faculty, or staff for which charges are made that are directly related to the cost of service, such as residence halls, intercollegiate athletics, and food services.

  45. University Funding Sources/Uses • Ledger 3 – Restrictions • Alcoholic beverages may not be paid from funds under the control of the Athletic Department.

  46. University Funding Sources/Uses • Restricted Funds (see college/division or department business administrator for restrictions) • Ledger 4 – Scholarship and fellowship funds, primarily gifts and endowments. Use restricted by donor or other outside entity. • Ledger 5 – Contract and grant funds, primarily research, managed by the Office of Contracts and Grants. • Federal Grants subject to restrictions in OMB Circular A-21

  47. University Funding Sources/Uses • Ledger 6 – Endowment funds. The principal of the endowment is recorded in this fund. There are two primary types of endowments with two sub-categories each.

  48. University Funding Sources/Uses • True/Term Endowment – A fund established by the institution through a gift with provisions that prohibit the spending of principal. Only investment income generated from the principal may be used. Some endowments are term endowments, which means that the principal of the endowment can only be spent on or after a pre-determined date or period of time, or the occurrence of a specified event.

  49. University Funding Sources/Uses • Unrestricted True/Term Endowment – When a donor specifies that the principal of the financial gift must be retained but makes no stipulations on the use of the spendable return. • Restricted True/Term Endowment - When a donor establishes an endowment and specifies that the spending of the endowment be used for a certain instructional department or other purpose.

  50. University Funding Sources/Uses • Quasi-Endowments – A fund established by the institution that is treated as an endowment but not subject to any external prohibitions against spending of the principal.

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