Basic Fund Accounting

ACCOUNTING SERVICES TRAINING & OUTREACH

BPDP INTERMEDIATE LEVEL

Revised: October 2013

Class Objectives
Demonstrate knowledge of basic accounting terms Explain how we use Fund Accounting with the Integrated System

Class Benefits
What is a GL string and how is it different from my PTAEO?

How do my entries have an impact on the big picture?

ACCOUNTING

FUND ACCOUNTING

System of recording financial transactions

Uses an organized method

Emphasizes accountability Segregating resources Used by non-profit orgs/governments, including Higher Ed

Necessary for analysis, reporting, and decision making

Why Fund Accounting

Resources are from a variety of sources Must be used appropriately and not comingled

Requires unique identification and reporting

Chart of Accounts
Used for classification of financial transactions Identifies the fund, function, and organizational unit Critical for institutional and managerial reporting

Integrated System GL Chart of Accounts

Entity
Entity Segment Values State Agency Agency Code Local State Outside

UVA
MED CTR

207
209

10
15

20
25

80
85

UVA WISE

246

16

26

86

SWVA

948

17

27

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Depositing funds to projects for outside agencies or on behalf of non-UVA organizations

Agencies outside UVA include:
Health Services Foundation Darden Foundation Law School Foundation Non-UVA groups or organizations whose money is held by UVA (for scholarships or other similar purposes): Seven Society Colonnade Club ROTC Scholarships VA Museum of Natural History

What is a Fund?
Self-balancing set of accounts Categorized for specific purposes

Fund Groups
Current Non Current Agency

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Fund Groups
Current Funds
Operations

Noncurrent Funds
Loan programs Endowment activities Capital outlay activities

Agency Funds
Custodial

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Examples of Current Funds

Source
State appropriations Tuition and fees Federal/State/Local governments Industry Administrative distributions Private donors Revenue & cost recoveries Royalties, licenses, etc.

Current Fund Description

State E&G funds Grants and contracts FA cost recoveries Gifts Endowment income Sales and services Auxiliary enterprises Intellectual property

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Examples of Noncurrent Funds

Source
Federal government Banks Donors Donors, Auxiliary reserves, FA funds

Noncurrent Fund Description

Loan funds Endowment & similar funds (principal) Capital outlay funds (construction, renovation)

Student groups Foundations

Agency funds

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UVa Fund Source Values

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Restricted? Unrestricted?
Restricted current funds Externally imposed stipulations on their use Unrestricted current funds No external stipulations, but the University may designate these funds for specific purposes

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Basic Financial Reports

Balance Sheet Income Statement

Cash Flow

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Statement of Net Assets Balance Sheet

Assets liabilities = Owner s Equity Net Assets
Assets Liabilities Net Assets Owner s Equity

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Debits and Credits: Statement of Net Assets (aka Balance Sheet)

Debit (to increase)
Assets Cash

Credit (to increase)

Liabilities Accounts Payable Deferred Revenue Long-term Debt

Accounts Receivable
Investments

Buildings/Equipme nt

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Statement of Revenues, Expenses, and Changes in Net Assets

Income Statement
Owner sin Equity Change Net Assets
Expenses Revenues

Revenue Expenses =

Change in Net Owner s Assets Equity

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Debits and Credits: SRECNA (aka Income Statement)

Debit (to increase)
Expenses

Credit (to increase)

Revenue

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Recording Transactions
Journal Entry Debit
Credit

0 /

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Fund Accounting at UVa

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Sources of Funds
Tuition and Fees Patient Services Commonwealth of Virginia

Gifts

Grants Investment Income

Sales and Services

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Sources of Funds and Award Prefix

Fund
State E&G Grants and contracts

Source
State appropriation Tuition and fees Federal/State/Local governments Industry Administrative distributions Donors Revenue and cost recoveries Royalties, licenses, etc Student groups Foundations

Award Prefix
SG G_

FA cost recoveries Gifts Endowment income Sales and services Auxiliary enterprises Intellectual property Agency

FA DR, DU EI, DI SS, LS SA, LA IP YY

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Academic and Medical Center Divisions Combined

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Academic Division

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Revenue Projects
Used to record funds received from our sources Contain the cash that supports award installments

Transaction is recorded in the GL module using the GL String

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Uses of Funds
Instruction Patient Services

Research

Public Service

Academic support Institutional support Student Services

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Expenditure Projects
Used to record funds expended

Contain the budgets for the work that is being done

Transaction is recorded in the GA module using the PTAEO

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GA Charging Instructions
PTAEO

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Integrated System
Deposits Accounts Payable

Budgets

Accounts Receivable

(cash, checks, credit cards)

Purchasing

Grants Accounting

Summarize PTAEO to GL String

General Ledger

Labor Distribution

Fixed Assets detail

Recharge Centers

SIS

summary
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Combining Sources and Uses GL String

one to one Many awards to one fund source Many expend types to one object code one to one

Many awards to one entity

GA PTAEO
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P-A Mapping
RP0027 100323 100301

General Ledger

100323

Revenue Projects

LA

DR1

SA

DR2

Awards

100272

100323

Expenditure Projects

Grants Accounting 34

GL
Revenue

P101395

FM Lewis Botanical Garden

AER00083

P1

FM Lewis Botanical Garden

GA
Expenditures

P101395

FM Lewis Botanical Garden

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GL
Revenue

P102003

SA UCS Gifts

GA
Expenditures

ADR01340

SA UCS Gifts

P102003
SA UCS Gifts

P107165

P107168

P107173 SA UCS Library

P117976 SA UCS NYRA

P11797 SA UCS Resume Marathon

SA UCS SA UCS Employer Svc CLAS Svs

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AT-Ticket Sales

AT-Concessions

AT-Suite Lease

GL
Revenue

P100254

P100248

P100245

RP0028

AT-State Revenue

GA
Expenditures

AT-State Rev Award

ASA00001

P100256
AT-Football

P100257
AT-Mens Basketball

P100272
AT-Womens Basketball

P100262
AT-Mens & Womans Track

P100264
AT-Mens & Womens Swimming
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GL
Revenue

Restricted General Gifts

Ticket Sales

Concessions

Suite Lease

P100309

P100254

P100248

P100245

RP0028

AT-State Revenue

GA
Expenditures

ADR00127

AT-General Gifts

ASA00001

AT-State Rev Award

P100256
AT-Football

P100286

P100262

P100257

P100272
ATWomens Basketball
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ATAT-Mens & AT-Mens Womens Womens Basketball Rowing Track

FI-State Gen Funds

FI-State Non-ed S&S Revenue FI-Gen Fund Appropriation

GL
Revenue

P999814

P103491

P103529

RP0001

ASG00001

ASG00007

ASG00010

P100146

P100147

P101134

P101135

P100087

P100088
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GA
Expenditures

Processing Funds (link)

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Budgeting
In order to spend money allocated to your project, it must be funded, budgeted, and approved The amount of the budget cannot exceed the amount of funding for the project

Budget at the resource group (high level) or resource (expenditure type)

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Cash vs. Budget

Award Prefix SG/SR State funds Cash No Budget Yes

LG/LC EI/DI
G_ DU/DR SA/LA SS/LS FA/IP/YY

Institutional funds
Grants and contracts Gifts Sales and services Various

No
No Yes Yes Yes

Yes
Yes Yes Yes Yes

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True/False
An expenditure project can be used to record revenue

Cash is recorded in the award installment Sources of funds can NEVER be co-mingled Funds must be spent in support of the Universitys mission The award purpose code is essential to the summarization of GA to GL

T F F T T
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About us
Accounting Services, Training and Outreach http://www.virginia.edu/finance/genacct/training.html

Contact info:
Lynn Galasso lcg8t@virginia.edu Devin Herod

jdh5w@virginia.edu

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