UWinsite FinanceChart of Accounts 2.0

Vision

Design Principles

• The University has three legal entities which require two different “Companies” (under Oracle’s definition). The two Companies will be: University of Windsor (UW) and the Pension Plans (PP). Each will have their own chart of accounts.

• VIP’s HR/Payroll data must be the ‘source of truth’ for the organizational structure.

• Canadian accounting standards for presentation should be the basis of the chart of accounts. Additional hierarchies should be used to allow for reporting for Budgets and COFO purposes.

Design Principles

• Ideally One Definition per component of the chart

• Each element should have a clear definition and requirements

• Plan for a robust governance model which promotes ownership and supports security and controls

• Remember, it’s called General Ledger, not the “Detailed Reporting Ledger”; keep the detail where it belongs, in other areas of (Supplier Invoices, Projects) and/or in source external systems and be prepared to summarize to the GL

The Eight Segments

The Eight Segments• Fund (2 digits) is how we currently use Company, and is the way that

we identify the various different business functions of the University as a whole (i.e.: Operating Fund, Research Fund).

• Department (4 digits) is a group of accounts based on the University’s organizational structure as defined by the HR/Payroll system data.

• Program (5 digits) is a tool to distinguish the different ongoing activities of a department. To meet the definition of a Program, there would typically be no known end date for the activity.

• Programs can include items previously tracked as “business units” to further break out Departmental funds.

• Programs also include Trust and Endowment funds.

The Eight Segments• Project (6 digits) is for tracking Grants and Capital, Repairs and other

Special Projects. To meet the definition of a Project, there must be an end date.

• Natural Account (5 digits) is what we previously referred to as Object accounts (i.e.: Salaries, Supplies, Travel, etc.). This segment answers the “what” questions, as in “what did you buy”?

• Classification (3 digits, alphanumeric) is a way to track funds across the institution to disaggregate costs for central planning and budgeting purposes (i.e.: Professional Development Funds).

The Eight Segments• Inter Fund (2 digits) is the system created segment that allows the

financial statements to balance when transactions happen across Funds. When large entries are used amongst multiple funds, this segment will be used to balance the funds against each other.

• Future use (3 digits) is the segment that has been ‘saved’ for a future expansion of COA 2.0. In the short term, this segment will not be used (i.e.: will always equal 000).

If a segment is not to be used (i.e.: there is no Classification code, or you are charging a Project not a Program), you should type in 0’s.

The Funds

Fund is the first segment of the chart of accounts and helps define both who is responsible for the transaction, and how it is funded.

*The funds in yellow are new in Chart of Accounts 2.0

The Funds - Applying Knowledge1. The University holds some monies on behalf of WUFA. From time to time,

we collect money on their behalf, and pay internal expenses from these monies. A: Fund 09

2. Odette is planning a case competition for Accounting Students. They plan to run this annually, and may get sponsorship from some accounting firms to hold this event. A: Fund 01

3. A classroom is being renovated in the Toldo Building. The costs will not be capitalized for the purpose of the audited financial statements. A: Fund 01

4. A researcher at GLIER procures a boat to be used primarily for research, and plans to pay for the boat over time through user fees (both internal and external). A: Fund 01 (Note: on conversion, any open research grants of this nature will be converted as part of Fund 08, but will be corrected effective May 1, 2018)

The Departments• In accordance with

our guiding principles, VIP’s organizational structure data is the backbone for the organization of the chart of accounts; in particular, for the Department segment.

• Where a Dean, VP, AVP, Department Head, AAU, Executive Director exist, there should be a department.

Depart. Range Division0000 – 0999 Centrally Recorded Revenues & Expenses1000 – 1099 Faculty of Arts, Humanities and Social Sciences1100 – 1199 Faculty of Education1200 – 1299 Faculty of Engineering1300 – 1399 Faculty of Human Kinetics1400 – 1499 Faculty of Law1500 – 1599 Faculty of Nursing1600 – 1699 Faculty of Science1700 – 1799 Odette School of Business2000 Office of the President2001 Office of the Provost and VP Academic2010 – 2059 Office of Student Experience2060 – 2099 Athletics and Recreational Services2100 – 2109 Faculty of Graduate Studies2110 – 2499 Other areas reporting to the Provost, VP Academic2500 – 2599 Office of the VP Human Resources2600 – 2699 Office of the VP Research and Innovation2700 – 2799 Office of the VP Planning and Administration2800 – 2899 Other areas reporting to the President3000 – 3999 Ancillary Operations

Programs and Projects

The Program segment is one of the more flexible segments in COA2.0 for users. It will be used to distinguish:

Departmental programs and initiatives (i.e.: certain degreeprograms, fundraising efforts, conferences, etc.)

Various institutional programs Trust accounts (including Endowments)

The Project segment includes any initiative that has a finite end date. Currently we anticipate using the Projects segment to house Research grants, Capital projects, Repairs projects and Special projects.

Programs and Projects are mutually exclusive.

Programs & Projects - Applying KnowledgeWhat is the Fund, Department, Program or Project for:

1. Dr. Fisk’s internally funded research grant A: 08.2360.00000.816419

2. Women’s Basketball Trust Fund A: 04.2060.42157.000000

3. Renovation of the Odette Building’s Classroom 104 A: 05.2745.00000.406875

4. Masters of Applied Computing A: 01.1620.16202.000000

5. Nurse Practitioner Program A: 01.1500.15001.000000

6. Central utilities costs A: 01.2745.00000.203500

7. Annual recruiting event hosted by the Faculty of Science A:

01.1600.16000.000000

8. Smith Family Endowment (capital portion) A: 06.2170.60392.000000

Natural Accounts

• The Natural Accounts answer the question “what did you buy?” or “how did you earn revenue?” in the language of the COA 2.0

• In addition, the redesign allows us to split the external transactions from the internal transactions.

• When one side of the journal entry starts with a 6, the other side must start with a 7.

Account Types Account ID Range

Balance Sheet

Assets 10000 – 29999

Liabilities 30000 – 39999

Net Assets 40000 – 49999

Income Statement

External Revenues 50000 – 59999

Internal Revenues 60000 – 69999

Internal Expenses 70000 – 79999

External Expenses 80000 – 89999

Appropriations & BudgetCarry Forwards

90000 – 99999

Natural AccountsThe Natural Accounts are numbered to align with the external financialstatements.

All Salaries & Benefits Costs start with “81”

All Materials, Supplies, Services costs start with “82”

Creating Transactions - Applying Knowledge

Complete the segments for the debit and credit of the following transactions

(ignore taxes):

The President’s Office has a consultant working onsite for one week, and

purchases a $20 week-long parking pass from Parking Services.

A: DR 01.0060.00060.000000.11110.000.00.000

CR 03.3010.30100.000000.53501.000.00.000

The Faculty of Nursing (Dean’s Office) purchases a small desktop scanner for the

Secretary from Basics (using a P-Card) for $150.

A: DR 01.1500.15000.000000.83120.000.00.000

CR 01.0060.00060.000000.31110.000.00.000

Creating Transactions - Applying Knowledge

Residence Services purchases t-shirts for all of the Welcome Week leaders, from an

external company. The company submits an invoice for $500.

A: DR 03.3050.30500.000000.82310.000.00.000

CR 01.0060.00060.000000.31110.000.00.000

Dr. Fisk from GLIER travels to Toronto via Porter flight ($300) for one of his research

grants (816987).

A: DR 08.2630.00000.816987.82333.000.00.000

CR 01.0060.00060.000000.31110.000.00.000

Creating Transactions - Applying Knowledge

A donation of $1,000 is received from the Smith Family towards their Endowment

(account 60392)

A: DR 01.0060.00060.000000.11110.000.00.000

CR 06.2170.60392.000000.55100.DIN.00.000

A cheque arrives at the Accounts Receivable office from Stats Canada for $10,000.

After investigation, we determine this is a contribution to a research grant, 815123.

A: DR 01.0060.00060.000000.11110.000.00.000

CR 08.1700.00000.815123.13750.GBE.00.000

Creating Transactions - Applying Knowledge

An withdrawal occurs from the University’s Canadian wire account by TD Bank, which is

a payment of interest of $50,000 against our loan.

A: DR 05.0060.00000.000000.39501.000.00.000

CR 01.0060.00060.000000.11111.000.00.000

Catering Services hosts an event on campus for Enwin, and issues an invoice for services

rendered of $8,000.

A: DR 01.0060.00060.000000.11110.000.00.000

CR 03.3020.30213.000000.53300.000.00.000

Cross Validation Rules

• The cross validation rules (CVR) are rules that are created in the system to automatically prevent invalid transactions.

• If you propose a journal entry that violates a CVR, an error will occur. This allows us to protect the integrity of our general ledger.

• Understanding the CVR’s will help users both understand how the COA 2.0 was designed, and help to ensure time is not spent correcting errors.

Getting Help with the COA

• Consult the Chart of Accounts User Guide

• Use the online translator to translate your old accounts into your new accounts

• Discuss with a colleague

• Attend general ledger, journal entry training