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22860000Accounting ServicesTraining ManualReferenceTable of ContentsContact Information ……………………………………………………………………………...2Contact by Cost Center ………..…………………………………………………………………3Business Areas ……………………………………………………………………………...........4G/L Account Listing ……………………………………………………………………………..5Document Types ………………………………………………………………………………...14Definitions/Glossary………………………………………………………………………….....15Reference Card …………………………………………………………………………….........21Contact InformationDescriptionContact PhoneE-mailLocationAssistant ControllerAuditFinancial ReportsSue Parsons 7358parso1sm@cmich.eduWA304ManagerPlant FundDebt ServiceBond IssuesPat Duffy 1139duffy1pa@cmich.eduWA304Retirement FundAgency FundExpense Distribution - Report Updates Financial Report - CopiesSharePoint – AuditConference Room WA305Bunny Punches 2571goodw1dl@cmich.eduWA304Bank Reconciliation Wire Transfer Inquiries EscheatsKelly Stacey 3489franc1kj@cmich.eduWA304Designated FundAuxiliary FundContract InvoicingSAP TrainingSteve Millard 7366milla1sd@cmich.eduWA304General FundAthleticsUBITTuition DistributionG/L Account QuestionsTricia Cotter 7360cotte1pj@cmich.eduWA304Gifts Direct LendingPELL, SEOG, ACG & SMART College Work StudyARRA ReportingGrants – Private/InternalHillary Pierce1280franc2ha@cmich.eduWA304Grants-Federal/PrivateA-133Time & Effort ReportingLakshmi Vungarala 7359vunga1lj@cmich.eduWA307Grants – State/PrivateTime & Effort ReportingKasie Natzel 7361marsh1kl@cmich.eduWA307Grants-FederalTime & EffortGrant EquipmentTracy Daugherty 7359daugh1ta@cmich.eduWA304Contact by Cost CenterDescriptionAccounts Starting WithWBSAccountantTelephoneEmailGENERAL FUND1XXXX?TRICIA COTTER7360COTTE1PJ@CMICH.EDU2XXXX?3XXXX?DESIGNATED FUND4XXXX?STEVE MILLARD7366MILLA1SD@CMICH.EDUATHLETICS55XXX?TRICIA COTTER7360COTTE1PJ@CMICH.EDUAUXILIARYOTHER 5XXXXSTEVE MILLARD7366MILLA1SD@CMICH.EDUFEDERAL GRANTS/CONTRACTS61XXXF, PLAKSHMI VUNGARALA7359VUNGA1LJ@CMICH.EDUFEDERAL MATCHING91XXXFEDERAL GRANTSTIME & EFFORTGRANT EQUIPMENT61XXX91XXXFTRACY DAUGHERTY1162DAUGH1TA@CMICH.EDUSTATE GRANTS/CONTRACTS91XXXS, PKASIE NATZEL7361MARSH1KL@CMICH.EDUSTATE MATCHING92XXXPRIVATE GRANTS63XXXPLAKSHMI VUNGARALA,7359VUNGA1LJ@CMICH.EDUPRIVATE MATCHING93XXXKASIE NATZEL, HILLARY PIERCE73611280MARSH1KL@CMICH.EDUFRANC2HA@CMICH.EDUSCHOLARSHIPS64XXX?HILLARY PIERCE1280FRANC2HA@CMICH.EDUINTERNAL GRANTS65XXXC, PMATCHING95XXXENDOWMENTS66XXX?KIM WAGESTER7388WAGES1KA@CMICH.EDURESTRICTED GIFTS 67XXX + 9XXXXXX?HILLARY PIERCE1280FRANC2HA@CMICH.EDUCOLLEGE WORK STUDY68XXX?HILLARY PIERCE1280FRANC2HA@CMICH.EDUACG, SMART 7 TEACHXXXXX?DIRECT LENDING, PELL, SEOGXXXXX?PLANT FUND7XXXX?PAT DUFFY1139DUFFY1PA@CMICH.EDUAGENCY FUND8XXXX-88XXX?BUNNY PUNCHES2571PUNCH1BL@CMICH.EDURETIREMENT FUND89XXX?BUNNY PUNCHES2571HYPERLINK "mailto:MILLA1SD@CMICH.EDU"PUNCH1BL@CMICH.EDU G/L Account ListingGL account numbers are six digit in length and are used to classify revenues, expenditures, and transfers. They are grouped as follows:5XXXXXRevenue59XXXX Revenue Transfers60XXXXCost of Goods Sold61XXXX - 62XXXX Salaries, Wages, & Benefits63XXXX - 8XXXXXSupplies & Equipment9XXXXXExpense TransfersFollowing is a list showing the GL account numbers with a description of the purpose of each.REVENUES - 5XXXXXNote: Many revenue G/L accounts indicate "Ext" for external sources of revenue and "Int" for internal sources of revenue. For example, all revenue that goes into G/L 520500 (Sales-interuniversity) is revenue that is earned by selling a product or service to other departments with the university. This would be classified as an "Int" source of revenue. All revenue that goes into G/L 540300 (Miscellaneous Income) is revenue that is earned by selling a product or service to entities outside of the university, including agency cost centers. This would be classified as an "Ext" source of revenue. FEES510200Course Fees - Ext510300Admission Fees?- Ext510400Orientation - Student Fees - Ext510500Credit by Examination - Ext510600Correspondence Course Fees - Ext510800Orientation - Parent Fees - Ext510900Graduate School Application Fee-On Campus 1 - Ext511000Undergraduate Application Fee-On Campus 1 - Ext511200Graduate Fees for Grad School - Ext511300Program Change Fees-Grad School - Ext511400Late Fees - ExtTUITION512100Tuition - Spring - Ext512200Tuition - Summer I - Ext512300Tuition - Summer II - Ext512400Tuition - Fall - ExtSTATE APPROPRIATIONS514000State of Michigan AppropriationGRANTS515200-515900Grant RevenuePRIVATE GIFTS516700Private Gifts - Operating - Ext516710Private Gifts - Endowment Permanent - Ext516720Private Gifts - Capital - ExtEDUCATIONAL ACTIVITIES - SALES & SERVICES 520200Sales Taxable - Ext520300??? Sales Non-Taxable - Ext520400Sales - Theatre - Ext520500Sales Inter-university - Int520800Workshop Fees - Ext521000Fines521100Replacement Fees - Ext521200Miscellaneous Fee - Ext521400Vending - Ext522200Sales-Miscellaneous - Ext522301Sales-Miscellaneous - IntATHLETICS526000-527950(For Athletics Use Only)?? AUXILIARY ACTIVITIES -- MOTOR POOL534500-535800(For Motor Pool Use Only)OTHER REVENUESTUDENT ACTIVITY CENTER536000-537900(For Student Activity Center Use Only)540200Cash Over - Cash Short - Ext540300??? Miscellaneous Income - Ext540305Commissions Revenue - Ext540310Miscellaneous Income - Int540320-540399Police Revenue (For Public Safety Use Only)540600??? Equipment Rental - Ext540610Rental Income - Int540800Lease Income - Ext541000??? Grant/Contract Program Income - ExtPUBLIC BROADCASTING?545500-550500(For Public Broadcasting Use Only)AUXILIARY ACTIVITIES - SALES AND SERVICES 560100-565900?(For Auxiliary Services Use Only)562000Sales Taxable - Ext562100Sales Nontaxable - Ext562150Sales Nontaxable - UBIT - Ext562200Sales - Interuniversity562201-562256Printing Services Revenue (For Printing Services Use Only)562270-562281Res Life Sign Shop Revenue (For Res Life Sign Shop Use Only)563100-563900Bookstore Revenue (For Bookstore Use Only)565000-565312Athletics Revenue (For Athletics Use Only)TELECOMMUNICATIONS RESOURCES566000-566900 ?(For Telecommunications Use Only)CENTRAL ENERGY FACILITY RESOURCES???567000-567900 (For Central Energy Use Only)UNIVERSITY EVENTS569100-569999(For University Events Use Only)REVENUE TRANSFERS – 59XXXXCARRYFORWARD BALANCE599800Balance Carryforward (For Accounting Services Use Only)599801??? Commitment Carryforward (For Accounting Services Use Only)599803??? Gift Carryforward (For Accounting Services Use Only)REVENUE TRANSFERS599931-599960(For Accounting Services Use Only)?COST OF GOODS SOLD – 60XXXX601000-609900Cost of Goods SoldSALARIES, WAGES, & BENEFITS – 61XXXX-62XXXXNote: G/L accounts listed in the Salaries, Wages, & Benefits category cannot be used in manual journal entries, unless indicated otherwise. All entries must be approved by the Payroll department.STAFF SALARIES & WAGES611000Professional Administrative/Salary - Consists of entry level & middle management individuals as well as professional staff members both on & off campus.611100???Senior Officers Salaries - Consists of the Directors of major departments, Deans, Assistant & Associate Deans, individuals who make up the decision-making body for Central Michigan University including the President, the Provost, & the various Vice Presidents.611200???Office Professionals Salaries - Consists of Bookkeepers, Clerks, Typists, Secretaries, Receptionists, & other office related positions.611300???Professional Administrative/Hourly - Consists of clerical & entry-level professional administrative positions both on & off campus.612100??Food Service and Maintenance Salaries - Consists of unskilled & skilled workers at Facilities Management. And also includes employees working in the Food Service area.612200???Public Broadcasting Salaries - Includes employees working in the Public Broadcasting area except for administrative staff.612300Public Safety Salaries - Includes the campus Service Officers, & Sergeants.612500??Supervisory/Technical Salaries - This group includes supervisors in the office setting, at Facilities management (both skilled & unskilled trades, & Food Service area).? In this group you will also find technical people such as keypunch operators, physics technicians, nurse's aides, etc.FACULTY SALARIES & WAGES613200Faculty Salaries - This group consists of Instructors, Professors, Librarians, Coaches, and Counselors.613300???Faculty - Department Chairperson Salaries613400???Faculty - Summer Salaries613500??? Faculty - Temporary Salaries613600??? Graduate Assistants Salaries - These are students who work in the academic areas, assisting in teaching or research in order to gain credit & practical experience.613700Course Instructor613800??? Ttrl/Monitor/Review613900??? Wkshop/Spkr/Prctr614000??? Advising EarningsFRINGE BENEFITSFringe Benefits include Retirement, Social Security, Hospitalization Insurance, Life Insurance, Disability Insurance, Worker's Compensation, Dental, Parking Decals, Vision Care, Longevity, Tuition, Unemployment, & Vacation accrual for FASB 43.? Each classification has an appropriate percentage.615000Professional/Administrative Benefits615100??? Senior Officers Benefits615200???Office Professionals Benefits615400??? Faculty Benefits615600??? Faculty - Temporary - Full time - Benefits615800??? Graduate Assistants Benefits615900Other Benefits616100??? Food Service & Maintenance Benefits616200??? Public Broadcasting Benefits616300??? Public Safety Benefits616500??? Supervisory/Technical Benefits616600??? Benefits Recharge (use for manual journal entries)616700??? Retirees Benefits617700??? Course Instructor BenefitsOTHER SALARIES - STUDENT & TEMPORARIES620900??? Expenditure Credit (use for manual journal entries)TEMPORARY EMPLOYEES & STUDENT ASSISTANTS - PAYROLL621000??? Temporary Hourly Employees621100??? Temporary Salaried Employees621300??? Food Service & Maintenance - Temporary621800??? Student Assistants - Temporary622000??? Contractual ServicesOTHER COMPENSATION623000Other compensation623100??? Overtime623200??? Shift Differential623300??? Work in Higher Classification623400??? Callback Pay623500??? Wage Recharges (use for manual journal entries) 623501Wage Recharges - Student (use for manual journal entries)STUDENT ASSISTANTS - WORK STUDY624200??? CWS - College Work Study624300??? CMU Additional Student Assistance (effective FY11)OTHER BENEFITS - TEMPORARY EMPLOYEES & STUDENT ASSISTANTS625200??? Temporary Employees Benefits625300Temp Salaried Employee Benefits625900??? Other Fringe Benefits626000??? Retirement Service Award PaymentFUNDED DEPARTMENTAL RESOURCES626700??? Professional Admin. Salary Departmental Funding626800??? Senior Officer Departmental Funding626900??? Office Professionals Departmental Funding627000??? Faculty Departmental Funding627100??? Food Service & Maintenance Departmental Funding627300??? Public Broadcasting Departmental Funding627400??? Public Safety Departmental Funding627500???Professional Admin. Hourly Departmental Funding627600??? Supervisory Technical Departmental Funding 627700 Temporary/Student Soft Funded WagesBENEFITS - FUNDED DEPARTMENTAL RESOURCES628700??? Professional Admin.? Salary Departmental Funding - Benefits628800??? Senior Officer Departmental Funding - Benefits628900??? Office Professionals Departmental Funding - Benefits629000??? Faculty Departmental Funding - Benefits629100??? Food Service & maintenance Deptl. Funding - Benefits629300??? Public Broadcasting Departmental Funding - Benefits629400??? Public Safety Departmental Funding - Benefits629500???Professional Admin. Hourly Departmental Funding - Benefits629600??? Supervisory Technical Departmental Funding – Benefits 629700 Temporary/Student Soft Funded BenefitsSUPPLIES AND EQUIPMENT – 63XXXX-8XXXXXSUPPLIES & EQUIPMENT631900??? Expenditure Credit640100??? Misc. Freight640200??? Postage and Delivery - Includes stamps & meter mail640300??? United Parcel Service / Federal Express640400-641100 Postage and Delivery645200??? Telephone645222OIT Fees - Computing Services645300??? Telephone - Long Distance645400??? Telephone - Installation645600??? Telephone - Miscellaneous645700??? Telephone - Service Order Charges645800Telephone - Telephone Equipment645900Cable TV Service646200Cell Phone Expense646300Pager Expense650200-650500 Computer Services - Includes charges for use of?computer facilities & Data preparation.651100??? Database Access - Includes vendor charges for access to external computer databases.651200Computer Services651500??? Consulting Fees651700??? Miscellaneous Networking Software651900??? Computer Services651902Network Charges/Res Net655200-656102 Equipment Repairs & Maintenance - Includes the repair of equipment, service contracts & preventive maintenance of equipment.660200-660900 Entertainment and Meeting Expenses - Includes the cost of meals & refreshments for employee meetings & entertaining university guests.? If this cost is on the travel expense reports.662200-662900 Workshop Costs663200??? Teleconferencing Costs664200??? Graduation Costs665200-666400 Printing & reproduction - Includes cost of printing forms pamphlets & bulletins.? Includes duplication costs for the copy center or other reproduction services.670200-671000Honorariums & Professional Entertainment Fees - Includes payments to individuals for honorariums, speaking fees, & professional entertainment services.? Payments to employees of the university must be paid through payroll since they are subject to withholding for income tax.672200-672900 Outside Services673000Asbestos Service673100-673900 ARAMARK Contract Service675300??? Employee Scholarships680100???Classroom Rent680200-681000 Rentals - Includes the cost of renting office equipment, facilities &?vehicles. Does not include cost of rental vehicle when traveling.685200??? Student Aid - Includes the cost of grants, scholarships or fellowships to students of the University.685300-686600 Awards and Trophies - Includes cash awards to students & the cost of trophies.690200-692700 Supplies/Office - Includes the cost of office supplies & office furnishings such as desk pads, waste baskets, etc.693000-693300 Purchasing MasterCard Program695300Indirect Costs696000??? Overhead Recovery700200-703100 Supplies/Maintenance - Includes the cost of maint. supplies.? This does not include the cost of maint. of equipment (See 655200).? 703100Participant Stipends706200??? Oil706300??? Electric - Main Meter706400??? Electric – Other706500??? Gas – Powerhouse706600??? Gas - Other Meters706700??? Gas – Academic706800??? Water/Sewer706900Wood707000 ?? Solid Waste707200??? General Utilities730200; 730300-734100 Supplies/Other - Includes the cost of supplies other than office or maintenance.? Departments that have supplies for clinical, laboratory or other specific functions should code these supplies in this category.? Includes equipment less than $5,000.730210-730270Supplies-Parking Services only737500??? Moving Expense740200-741100 Travel - Includes the cost of all employees and student travel??? Travel expenses for individuals not employees or students of the University should be included under Professional Services741200-741900 Conference Fees - Includes fees paid to attend conferences, annual association meetings & educational course registration fees.742200-742700 Lodging743200-743900 Meals744200-744800 Transportation (taxicab, bus, airplane)745000-747400 Recruiting Expenses750200??? Advertising - Includes the cost of want ads & classified & direct mail brochures.750300??? Promotional Activities750400??? Trustee Fees - Includes the cost of Trustee Fees paid to Trust Corp.750500??? Subscriptions and Publications - Includes the cost of all types of subscriptions, periodicals & publications.750600??? Professional Fees - Includes payments to individuals & companies not employees of the University for professional services such as auditing, legal & engineering.750700??? Membership Fees and Dues - Includes the cost of University & individual membership fees & dues.750800??? Bad Debts - Includes the cost of uncollectable accounts with the University.750900???Legal Fees751000??? Bank Fees751100??? Credit Card Fees751200??? Textbooks751300??? Research751400 ?? Towing Payment751500??? Direct Deposit Fees751600???CEL Textbook Charges752000-752800 Insurance - Includes the cost of casualty insurance & bonds.752500??? Workers Comp753900-753901? Other Course Expenses754000??? Other Administrative Expenses - Includes the cost of other administrative or operational expenses not covered in another category.754300-754301??Interest Expense754400???Commission Fee754900??? Furnishings - Equipment with a unit cost of less than $5,000 or useful life of less than two years (equipment not capitalized) - see (805200).775000-775800 Public Broadcasting Network777000Public Broadcasting Network?EQUIPMENT & LIBRARY ACQUISITIONS801000??? Movable Equipment to be capitalized ($5,000 or more) (eg. complete computer system, etc.) (no software, except operating systems)801100??? Upgrades (computers; machine or other equipment enhancements)801200??? Title Vehicles (for athletic vehicles please use 3000-113286)805000??? Fixed Equipment (attached to building)805100??? Software805101??? Software Maintenance and Renewals805200??? Equipment not Capitalized (Greater than $1,000 but less than $5,000) (These items will be tagged)805201Upgrades/Components for Equip Not Capitalized805300??? Maintenance Contracts 805500Equipment (Less than $1,000) Not Tagged805501??? Equipment (Less than $1,000) Tagged805600???Freight, Shipping & Handling Charges810000-816000 Library AcquisitionsFACILITIES MANAGEMENT820200-895999(For Facilities Management Use Only)896000-898999(For Use on AUC Internal Orders Only)EXPENSE TRANSFERS – 9XXXXX9XXXXX TRANSFERS FOR ACCOUNTING USE ONLYDocument TypesAccounting Services Department (Grants x7361)Doc. Type DescriptionFrom NumberTo Number DRCustomer Invoice?18000000001899999999DZCustomer Payment?14000000001499999999Accounting Services Department (x3707)AAAsset Posting?100000000199999999ABAccounting Document?100000000199999999AFDep. Posting ?30000000003999999999SAG/L Account Document?100000000199999999Z1F27 Interface (Cash Receipt) ?27000000002749999999Z3F60 Interface (Cash Receipt) ?60000000006049999999ZZSAP F180 B/A Clearing ?40000000004999999999ZRReconciliation Posting CO100000000199999999ZAProfEd Monthly Corrections100000000199999999Payable Accounting Department (x3523)KAVendor Document ?17000000001799999999KGVendor Credit Memo ?17000000001799999999KNNet Vendors ?19000000001999999999KPAcct Maint (GR/IR) ?48000000008999999999KZVendor Payment ?15000000001599999999REInvoice Receipt ?51000000005199999999RNInvoice Receipt ?51000000005199999999Z4F50 Interface ?55000000005599999999Z9P O Credit Memo ?52000000005299999999ZBPayment Reversal?17000000001799999999ZPPayment Posting ACH16000000001699999999Purchasing Department (x3118)WAGoods Issue ?49000000004999999999WEGoods Receipt ?50000000005099999999WIInventory Document?49000000004999999999Payroll Department (x3481)Z7SAP Payroll Feed ?20000000002099999999Z8Payroll Correction ?40000000004099999999SLCM (x7344)YTCA Transfer ?26000000002649999999Definitions/Glossary1. Agency Fund - An agency fund is a fund group used to account for assets that are received by the university to be held or disbursed only on the instruction or on behalf of the person or organization from whom they were received. The assets do NOT belong to the university.2. Asset Under Construction (AUC) – An asset under construction is the SAP process using internal order number 650000 to 689999 by Facilities Management for repairs, maintenance, and improvement projects of university assets.3. Auxiliary Fund - An auxiliary fund account is used to account for revenue and expenditures of revenue-producing, substantially self-supporting activities that perform a service for but are not themselves educational and general activities. The following are examples of business enterprises that CMU records in auxiliary fund cost centers: Athletics, CMU Bookstore, CMU Printing Services, Telecommunications, Health Services, Motorpool, Residence Life, Campus Dining, Bovee University Center, and other miscellaneous self-supporting activities. Auxiliary fund cost centers begin with 5XXXX.4. Available Balance - The amount available in a cost center that can be used or expended before the cost center has a zero balance. This amount takes into consideration the outstanding commitments as of the time the available balance is determined. It should be noted that when using this balance some charges may have been incurred but not processed through SAP.5. Budget To Actual (BTA) - The Budget to Actual Report compares the approved operating budget to the actual revenue and expense activity through the fiscal year quarter indicated on each report. 6. Buildings & Building Improvements - Buildings and building improvements includes all structures used for operating purposes, as well as significant improvements made to an existing structure that meet appropriate capitalization criteria. Included with this category are all permanently attached fixtures, machinery, and other components that cannot be removed without damage resulting to the building. If a component can be removed without damage, then it should be considered equipment and not included in the cost of the building or improvement. All direct costs of construction should be included in calculating the capitalized cost of the asset. If the building is constructed by CMU’s own personnel, then these costs should also be included as part of the capitalized amount of the asset. Significant structural alterations that increase the building’s usefulness, efficiency or asset life should also be capitalized.To determine if a project should be capitalized as a building improvement, certain criteria must be met. Work to maintain buildings in their existing condition, such as painting or repairs, should be expensed. Work to improve the building in excess of $50,000 that would extend the asset’s useful life and/or increase efficiency, such as the addition of a new wing to a building, significant remodeling of a building or office(s), or the addition of HVAC systems to a building or office(s) should be capitalized. 7. Business Area - A business area is a unit of financial accounting that represents a separate area of operations or responsibilities within the organization. 8. Collections - Collections are defined as works of art, historical treasures, or similar assets that are (a) held for public exhibition, education, or research in furtherance of public service instead of financial gain, (b) protected, kept unencumbered, cared for, and preserved, and (c) subject to organizational policy that requires the proceeds of items that re sold to be used to acquire other items for collection. Items that do not meet these criteria are not considered collections and must be capitalized accordingly.Collections acquired through purchase should be recorded at cost. Collections received through gift or bequest should be recorded at fair value. Fair value is best determined by quoted market prices or appraisals. Assets acquired other than through purchase are to be recorded on the books at the appraised value at the date of acceptance of the gift. 9. Commitment - A commitment is a transaction that sets aside budget because the cost center made a commitment of their funds to pay for purchases or payroll. For example, the unfilled portion of an outstanding purchase order is a commitment. 10. Cost Center - Cost centers are used to account for related revenues and expenses.11. Deficit – In general, a deficit occurs when the expenditures of a cost center are greater than its revenues. For grant accounts, a deficit occurs when actual spending plus committed spending exceeds the approved budget amount.12. Designated Fund - A designated fund account is used to account for specific purposes which are not restricted by supporting agencies. Designated funds will include organized departmental activities associated with academic programs, conferences, seminars and fees for service and fixed price contracts. Designated fund cost centers begin with 4XXXX. 13. Document Number - Document numbers are generated automatically by the SAP system after a transaction, such as a journal entry, is entered into SAP.14. Endowment Fund - An endowment fund account is used for funds which the donor specifies that the principal is to be held in perpetuity. The principal is unexpendable and is invested to produce earnings that are generally available for use as specified by the donor.15. Equipment – Equipment generally includes all items that are perceived as moveable personal property. Equipment may be purchased, fabricated, or received by donation. Examples of equipment include furniture, lab equipment, classroom equipment, and vehicles.Purchased equipment should be recorded at cost, which is calculated at the amount invoiced, plus freight and installation costs, less any discounts. The cost of fabricated equipment should include the direct cost of the fabrication and installation, plus overhead or indirect costs. Donated equipment should be recorded at fair market value as of the date of the gift.CMU’s capitalization threshold for equipment is $5,000, which is also in accordance with OMB Circular A-21, which requires all institutions recovering costs from the federal government to capitalize all equipment costing more than $5,000.Equipment assets, other than those considered low theft items, are also tagged and then capitalized within the fixed asset system. If tagged equipment items are not found during annual inventories, the asset should be retired and removed from the University’s records.16. Escheats – Escheats are a process whereby uncashed checks or unclaimed property is turned over to the State of Michigan. Checks are the typical unclaimed property of the university. The period of abandonment for checks varies. Payroll checks are returned to the State of Michigan (escheated) after one year. Payables and Receivables checks (not including Title IV funds) are escheated after five years. Any unclaimed checks due to be escheated that include Title IV funds must instead be returned to the appropriate aid program. 17. Expendable Restricted Fund - The Expendable Restricted Fund is used to account for all special programs financed by separate special-purpose state appropriations, income from endowment funds, contracts and grants, excluding some fixed price and fee for service contracts, and gifts. In all cases, the use of the funds is restricted for specific purposes stated by the supporting agencies or donors. Internal grants are also recorded in the restricted fund. 18. Fiscal Year – The fiscal year are the annual financial accounting period (July 1 - June 30). For example, the period FY 09/10 represents the period 7/1/09-6/30/10.19. Fund – A fund is an accounting entity with a self-balancing set of accounts consisting of assets, liabilities, and fund balance. Separate funds are used to ensure the observance of limitations and restrictions placed on the use of their resources.20. Fund Balance - The fund balance of each fund represents the difference between the fund’s assets and liabilities.21. General Fund - A General Fund account is used to account for those transactions related to academic and instructional programs and their administration. General fund cost centers begin with 2XXXX. ProfEd cost centers begin with 3XXXX. 22. General Ledger (G/L) – A general ledger is a set of six digit numbers used to classify revenues, expenditures, transfers, assets, liabilities, and fund balances. They are grouped as follows:1XXXXX-Assets61XXXX-62XXXX Salaries, Wages, & Benefits2XXXXX-Liabilities63XXXX-8XXXXX Supplies and Equipment3XXXXX-Fund Balance9XXXXX Expense Transfers5XXXXX-Revenue59XXXX-Revenue Transfers23. Grant Accounting - Grant Accounting is involved in post award oversight of the University’s Grants and Contracts, review of related journal entries, WBS element / Grant Cost Center creation, billing, financial reporting to funding agencies, Time and Effort Reporting, and providing departmental guidance of SAP Grant/Contract account maintenance.24. Grant Funding - Grant revenue is generated from agreements with sponsoring agencies, such as governments, corporations, and foundations. These generally require the performance of specific tasks.25. Grant Number - The Grant number is a 6 digit Alpha-Numeric character number used to display grant account reporting information in SAP for grants set up through the Grants Management module.? All grants that are awarded through the Office of Research and Sponsored Programs will be set up with Grant Numbers.? Always use the Grant Number when running reports in SAP for the project. For example: Federal = F6XXXXState = S6XXXXPrivate = P6XXXXInternal = C6XXXX When it is time to process expenses, use WBS elements associated with the grant numbers.? DO NOT use Grant Number to process expenses/revenues.26. Infrastructure – Infrastructures includes all items such as streets, street lighting, roads, sidewalks, curbs, utility distribution systems, and storm sewers. These assets usually have a longer useful life and are more permanent in nature than land improvement related assets. Work to maintain infrastructure assets in their existing condition should be expensed. Work to improve infrastructure assets, for example creation or replacement of a storm sewer, in excess of $50,000 should be capitalized. All direct costs of construction or alteration should be included in calculating the cost of the asset. If the asset is constructed / altered by CMU’s own personnel, then these costs should also be included as part of the capitalized amount of the asset.27. Internal Orders - Internal Orders provides a way of tracking expenses in addition to G/Ls. For example, all the expenses associated with a department project or faculty member can be assigned an Internal Order number. Internal Orders are created and maintained by the department. The system automatically assigns an internal order number when the setup of the new internal order is complete and saved. The system assigns the next number in the sequence assigned to the Order Type used. This means your internal orders will not necessarily be in consecutive order. Keep a record of the Internal Orders you create.28. Interuniversity Revenue - Interuniversity Revenue includes all revenue that is earned when selling a product or service to another department within CMU. For example, if the School of Music sells a CD to Accounting Services, the School of Music would recognize the money earned on this sale as interuniversity revenue. 29. Land – Land includes all land that is purchased or acquired by gift or bequest. The capitalized cost of land purchased would include the amount paid for the purchase, plus all ancillary costs, such as broker and legal fees. If acquired by gift or bequest, the capitalized cost would be recorded at fair market value at the date of the gift or bequest. CMU must have title to the land before being capitalized. The purchase of easements should also be recorded as land.30. Land Improvements – Land improvements includes assets such as parking lots, fencing, gates, athletic fields, and parking lot lighting. Work to maintain land improvements in their existing condition, for example, re-asphalting a parking lot, should be expensed. Work to improve land improvements in excess of $50,000, for example, expanding a parking lot, should be capitalized. All direct costs of construction or alteration should be included in calculating the cost of the land improvement. If the land improvement is constructed / altered by CMU’s own personnel, then these costs should also be included as part of the capitalized amount of the asset.31. Library Books – Library books are assets that should be capitalized at their purchase price plus transportation and any incidental costs. Donated books should be recorded at fair value as of the date of the gift. Periodicals and subscriptions are also capitalized. The University capitalizes library books at the end of each fiscal year. Rare books that are considered “collections” similar to works of art or historical treasures should be classified as Collections.32. Plant Fund – Plant funds are a separate fund group used to account for long-lived assets such as land, buildings, and capital equipment; renewals and replacements of those assets; debt service (principal and interest payments) incurred to purchase those assets; and unexpended funds which are available for capital projects.33. Reference Number - The reference document number is used as a search criterion when displaying or changing documents. This can be assigned by Accounting Services or the department requesting the journal entry.34. Sponsored Class - A Sponsored Class is a group of pre-determined General Ledger (G/L) accounts that are functionally related.? Sponsored Classes are used to budget a level higher than a single G/L for grants established through the Grants Management module in SAP.? Since spending on a grant is based on the sponsor’s authorized budget and reporting requirements, the Sponsored Classes are used to group the G/Ls into budget categories that closely resemble the sponsor’s allowed budget categories for reporting purposes.? Expenses still have to be posted to individual G/Ls and not to Sponsored Classes.? For example:Supplies and Materials ?-??G211000 (this is a Sponsored Class Group number)Postage & Delivery ????640200 (this is a G/L number) Telephone ?????????????? ?645200 Printing ?????????????????? ?665200-666400 (range of G/L numbers)Travel ?-??G220000 Travel ?????????????????????740200-741100Incorrect use of the G/Ls will generate inaccurate reports.? Care should be taken to use the appropriate G/L for charging expenses to a grant. 35. Sponsored Project – A sponsored project is any externally funded activity that has a defined scope of work and set of objectives which provide a basis of accountability and sponsor expectations. All projects determined to be a sponsored project must be processed through the Office of Research and Sponsored Programs. 36. Transfers - Transfer codes (G/L’s) are used to move funds (instead of specific expenses) between cost centers. A transfer occurs when one cost center is providing general support. A movement of expense occurs when the expense hit one cost center & G/L, but really belongs in another cost center.Transfer codes CANNOT be used on Agency cost centers.37. Unrelated Business Income Tax (UBIT) - CMU is exempt from the payment of income taxes on income related to its exempt purposes. However, the University is liable for taxes on unrelated business income (UBI). Income from an activity carried on by an exempt organization is subject to the unrelated business income tax if the following three criteria are present:The activity constitutes a “trade or business,” The activity is “regularly carried on” by the organization, and The conduct of the activity is “not substantially related” (other than through the production of funds) to the performance of the organization’s exempt function.38. WBS elements (WBS) - WBS stands for Work Breakdown Structure.? It is the SAP software vendor’s acronym for the account number used in SAP to record expenses for Grants.? A WBS is a six digit SAP account that starts with 6XXXXX.? The WBS is used to charge expenses or record revenues related to a grant account.? Where departmental internal paperwork/forms/etc lists cost center number – the WBS element number should replace the cost center number if the expense is to be charged to an award set up as a WBS.centercentercentercenter ................
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