Basic Fund Accounting

ACCOUNTING SERVICES TRAINING & OUTREACH

BPDP INTERMEDIATE LEVEL

Revised:

February 2014

Class Objectives

Demonstrate knowledge of basic accounting terms

Explain how we use Fund Accounting with the Integrated System

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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?

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ACCOUNTING

System of recording financial transactions

Uses an organized method

Necessary for analysis, reporting, and decision making

FUND ACCOUNTING

Emphasizes accountability

Segregating resources

Used by non-profit orgs/governments, including Higher Ed

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Why Fund Accounting

Resources are from a variety of sources

Must be used appropriately and not comingled

Requires unique identification and reporting

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Chart of Accounts

Used for classification of financial transactions

Identifies the fund, function, and organizational unit

Critical for institutional and managerial reporting

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Integrated SystemGL Chart of Accounts

EntityEntity Segment Values

State Agency Agency Code Local State Outside

UVA 207 10 20 80

MED CTR 209 15 25 85

UVA WISE 246 16 26 86

SWVA 948 17 27 87

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 Current Fund Description

State appropriations

Tuition and fees

State E&G funds

Federal/State/Local governments

Industry

Grants and contracts

Administrative distributions FA cost recoveries

Private donors Gifts

Endowment income

Revenue & cost recoveries Sales and services

Auxiliary enterprises

Royalties, licenses, etc. Intellectual property

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Examples of Noncurrent Funds

Source Noncurrent Fund Description

Federal government

Banks

Loan funds

Donors Endowment & similar funds (principal)

Donors, Auxiliary reserves, FA funds Capital outlay funds (construction, renovation)

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Student groups

Foundations

Agency funds

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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Balance Sheet

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Assets Liabilities

Owners Equity

Assets liabilities = Owners Equity

Net Position

Net Position

Statement of Net Position

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

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Assets

Cash

Accounts Receivable

Investments

Buildings/Equipment

Liabilities

Accounts Payable

Deferred Revenue

Long-term Debt

Debit (to increase) Credit (to increase)

Income Statement

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Expenses

Revenues

Owners Equity

Revenue Expenses =

Owners Equity

Change in Net Position

Change in Net Position

Statement of Revenues, Expenses, and Changes in Net Position

Debit (to increase)

Debits and Credits: SRECNP (aka Income Statement)

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Expenses Revenue

Credit (to increase)

Recording Transactions

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0/

Debit

Credit

Journal Entry

Fund Accounting at UVa

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Sources of Funds

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Sales and Services

Patient

Services

Gifts

Tuition

and Fees

Commonwealth

of Virginia

Investment

Income

Grants

Sources of Funds and Award Prefix

Fund Source Award Prefix

State E&G State appropriation

Tuition and fees

SG

Grants and contracts Federal/State/Local governments

Industry

G_

FA cost recoveries Administrative distributions FA

Gifts

Endowment income

Donors DR, DU

EI, DI

Sales and services

Auxiliary enterprises

Revenue and cost recoveries SS, LS

SA, LA

Intellectual property Royalties, licenses, etc IP

Agency Student groups

Foundations

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

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Academic supportInstitutional supportStudent Services

Patient

ServicesInstruction

Public Service

Research

Expenditure ProjectsUsed 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

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PTAEO

Integrated System

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GrantsAccounting

Deposits

(cash, checks,

credit cards)

Accounts

Receivable

Recharge

Centers

Labor

Distribution

Purchasing

Accounts

Payable

General Ledger

SIS

Summarize PTAEO to GL

String

Budgets

FixedAssets

detail summary

Combining Sources and Uses

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GL String

GA PTAEO

one

to

one

one

to

one

Many

awards

to one

fund

source

Many

expend

types to

one object

code

Many awards to one entity

P-A Mapping

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RP0027 100323 100301 100323 Revenue Projects

LA SA DR2DR1 Awards

100323 Expenditure Projects100272

General Ledger

Grants Accounting

P1

GL

GA

Revenue

Expenditures

AER00083

P101395

P101395

FM Lewis Botanical Garden

FM Lewis Botanical Garden

FM Lewis Botanical Garden

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P11797

SA UCS Resume

Marathon

ADR01340

P102003GL

GA

Revenue

Expenditures

P102003 P107165 P117976P107168 P107173

SA UCS Gifts

SA UCS Gifts

SA UCS Employer Svc

SA UCS CLAS Svs

SA UCS Library

SA UCS NYRA

SA UCS Gifts

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GL

GA

Revenue

Expenditures

AT-State Rev Award

AT-State Revenue

AT-Suite LeaseAT-Ticket Sales AT-Concessions

ASA00001

P100256 P100262 P100264P100257 P100272

AT-Football AT-Mens Basketball

AT-Womens Basketball

AT-Mens & Womans Track

AT-Mens & Womens Swimming

P100254 P100248 P100245

RP0028

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GL

GA

Revenue

Expenditures

AT-

Womens Basketball

P100256 P100262P100286 P100257 P100272

AT-Football AT-Mens Basketball

AT-Mens & Womens Track

AT-

Womens Rowing

Ticket Sales Concessions Suite Lease

AT-State Rev Award

AT-State Revenue

ASA00001

P100254 P100248 P100245

RP0028

ADR00127

P100309

Restricted

General Gifts

AT-General Gifts

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GL

GA

Revenue

Expenditures

ASG00007

P101134

P999814 P103491 P103529

RP0001

ASG00001 ASG00010

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

P101135 P100087 P100088P100146 P100147

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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. BudgetAward Prefix Cash Budget

SG/SR State funds No Yes

LG/LC

EI/DI

Institutional funds

No Yes

G_ Grants and contracts

No Yes

DU/DR Gifts Yes Yes

SA/LA

SS/LS

Sales and services Yes Yes

FA/IP/YY Various Yes Yes

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Training and Outreach http://www.virginia.edu/finance/

Contact info:

Lynn Galasso lcg8t@virginia.edu

Devin Herod jdh5w@virginia.edu

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