overview - rhode web viewucoa accounting manual fy 13 pub 10-2013.docx page 27 of 764. section:...

Deborah A. Gist

Commissioner

Rhode Island Department of Elementary and Secondary Education

255 Westminster Street

Providence, Rhode Island 02903

Uniform Chart of Accounts (UCOA) Project

Rhode Island

Department of Education

UCOA Accounting Manual

FY 2013 Version

+

Table of Contents

I. Introduction6

Introduction6

Background6

Governmental Accounting7

How to Use this Manual7

Updates to this Manual8

II. Overview of the Uniform Chart of Accounts Project9

Mandate9

What is a Chart of Accounts?9

Objectives of the UCOA10

Data Warehouse10

Development of the UCOA10

Development Rules11

III. Uniform System of Accounting13

Overview13

Objectives13

IV. Fund Accounting14

Overview14

Types of Funds14

V. General Accepted Accounting Principles17

Generally Accepted Accounting Principles17

Governmental Accounting Principles17

VI. Design and Structure of the Chart of Accounts19

Overview19

Numbering Methodology20

Key Design Considerations20

Design Features22

UCOA Account Use Rules23

VII. Chart of Accounts25

Overview25

Account Descriptions27

The ID Field Segment28

Overview28

How the ID Segment is Used28

Flexibility of the ID Segment28

List of Codes ID Field28

Code Definitions ID Field28

The Fund (Type) Segment29

Overview29

How the Fund Segment is Used29

Flexibility of the Fund Segment30

List of Codes - Funds30

Code Definitions - Funds30

The Subfund Segment35

Overview35

How the Subfund Segment is Used36

Flexibility of the Subfund Segment37

Account Level Use Requirements38

List of Codes - Subfunds38

Code Listing - Subfunds39

The Location Segment42

Overview42

How the Location Segment is Used42

Flexibility of the Location Segment45

Account Level Use Rules and Requirements45

List of Codes - Locations47

Code Definitions - Locations47

The Function Segment68

Overview68

How the Function Segment is Used68

Flexibility of the Function Segment68


List of Codes - Functions70

Code Definitions - Functions72

The Program Segment91

Overview91

How the Program Segment is Used91

Flexibility of the Program Segment91


List of Codes - Programs93

Code Definitions - Programs95

The Subject Segment114

Overview114

How the Subject Segment is Used114

Flexibility of the Subject Segment115


List of Codes - Subjects116

Code Definitions - Subjects119

The Object Segment156

Overview156

How the Object Segment is Used158

Flexibility of the Object Segment158


List of Codes - Objects160

Balance Sheet160

Code Definitions - Assets160

Code Definitions - Liabilities161

Code Definitions - Equity162

Revenue165

Revenue Recognition Policies165

Account Level Use Requirements165

Code Definitions - Revenue166

Expenditures195

Expenditure Recognition Policies195


Code Definitions - Expenditures197

The Job Classification Segment398

Overview398

How the Job Classification Segment is Used398

Flexibility of the Job Classification Segment399


List of Codes Job Classifications400

Code Definitions Job Classifications402

District Defined436

Overview436

VIII. UCOA Guidance for Selected Topics437

Overview437


Revenue Accounts Required for NCES Reporting438

Revenue Account Rules440

Expenditure Accounts Required for NCES Reporting443

Expenditure Accounts Special Rules444

General Rules444

Compensation Expenditures445

Employee Benefits448

Purchased Services and Supplies449

Property453

Debt Service and Other Costs456

Other Segments457

Subfunds458

Location460

Function462

Program462

Subject464

Job Classification465

Accounting Guidance from the Auditor General466

IX. Guidance For Charter Schools470

GAAP for Charter Schools470

Formats for Reporting Charter School Financial Data to RIDE470

Required Changes from FASB GAAP to GASB GAAP470

X. UCOA Download and Upload Requirements474

Overview474

Download Structure and Creation Rules474

UCOA Upload Process Overview476

XI. Allocations477

Overview477

Cost Distribution Methods477

UCOA Allocation Methods478

UCOA Allocation Rules479

Data Required for UCOA Allocation Tool480

UCOA Allocation Tool and the Data Warehouse480

XII. Common Report Requirements481

Overview481

XIII. Independent Audit Requirements482

Update Notice482

Overview482

XIV. Frequently Asked Questions (FAQs)494

Overview494

Alphabetical List of Topics with FAQ Numbers and Keywords494

FAQs and Responses512

Appendix A UCOA Workbook668

Overview of the UCOA Workbook668

Appendix B Segment Account Numbers672

Fund Type Number Codes672

Fund/Subfund Account Number Codes672

Location Types672

Location Departments672

District Location Number Codes672

Non-Public/Private Schools Location Type and School Codes674

Charter School Location Type and School Codes674

Education Service Agencies (Collaboratives) Location Type and School Codes674

RIDE Location Type and School Codes675

Public Schools Out of State675

Function Number Codes675

Program Number Codes675

Subject Number Codes675

Balance Sheet Object Number Codes676

Revenue Object Number Codes676

Expenditure Object Number Codes676

Job Classification Number Codes676

Appendix C Redundancy Analysis677

Appendix D - Accounting Processes680

Books of Accounts680

Chart of Accounts680

Double-Entry Accounting680

Journals681

General Ledger681

Subsidiary Ledgers681

Computerized Systems682

Appendix E - The Accounting Cycle683

Sequence of the Accounting Cycle683

Recording Phase683

Summarizing and Reporting Phase683

Closing Phase683

Budgetary Accounting684

Source Documents684

Analyzing Transactions684

Recording Transactions in Journals685

Posting to the Ledger685

Trial Balance and Adjustments686

Financial Statements686

Closing the General Ledger686

Reversing Entries686

Appendix F Recent Updates to the UCOA Accounting Manual688

New Requirements Effective July 1, 2011 for FY 2012688

New Requirements Effective July 1, 2012 for FY 2013, early adoption allowed688

New Requirements Effective July 1, 2012 for FY 2013690

Clarification only; no new Requirements690

Glossary of Terms694

Bookmarks and Index741

Bookmarks741

Index741

UCOA Accounting Manual FY 13 Pub 10-2013.docxPage 2 of 764

Section: Table of Contents

I. Introduction

Introduction

Pursuant to legislative mandate, we developed a uniform system of accounting, including a the Uniform Chart of Accounts (UCOA). We are pleased to present the Rhode Island UCOA Accounting Manual which assists School Districts and Charter Schools in their crucial tasks of managing tax dollars invested in education and accounting for those dollars in a way that supports informed decision making. Rhode Island statutes require School Districts and Charter Schools to use systems to record their financial affairs that comply with the definitions, instructions, and procedures published in this manual.

We want to thank those of you at the local level who use this manual and who are responsible for ensuring that we spend our limited education dollars wisely. In these difficult financial times, it is more important than ever that we demonstrate the fiscal accountability and wise stewardship of public funds necessary to achieve our educational goals.

Dennis E. HoyleDeborah A. Gist

Auditor GeneralCommissioner

Background

Rhode Island statutes require School Districts and Charter Schools (Districts) to follow the definitions, instructions, and procedures in the Rhode Island UCOA Accounting Manual (UCOA Accounting Manual). This edition of the UCOA Accounting Manual provides accounting policies and procedures, as well as guidance in implementing those policies and procedures, which include:

Overview of the UCOA Project

Overview of the Uniform Chart of Accounts

Fund Accounting and General Accounting Principles

Design and Structure of the Uniform Chart of Accounts

Definitions and information on using the UCOA Segments

Allocation Policies and Procedures

Glossary of basic Accounting terms

Valid Account Combinations

Technical Guidance for selected transactions and events

Frequently Asked Questions (FA