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Spring 2012

Reading CSRs & GL Review. Barbara Barrett, University Financial Systems, barretbj, 687-1961. Spring 2012. Today’s Discussion. General Ledger (GL) – structure of the data Account codes, funds, cost centers Journal IDs, source codes, operator IDs Posting Transactions to the GL How and When

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Spring 2012

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  1. Reading CSRs & GL Review Barbara Barrett, University Financial Systems, barretbj, 687-1961 Spring 2012

  2. Today’s Discussion • General Ledger (GL) – structure of the data • Account codes, funds, cost centers • Journal IDs, source codes, operator IDs • Posting Transactions to the GL • How and When • Reading Cost Center Status Reports (CSRs) • Formats (fiscal yr, project, special fund) • Budget versus actual • Inquiring on a transaction • Sponsored Programs (RX)

  3. General Ledger Review The general ledger (GL) is the University’s accounting system, or the official financial records of the institution. The general ledger is a table that uses combinations of chartfield values to organize and store financial activity for reporting purposes. The primary chartfields for GU are Account, Fund, and Cost Center. Let’s review them.

  4. Account Code Account codes are used to classify transactions as revenue, expense, asset, or liability. For example, salaries are an expense to the University. 701xx identifies academic salaries and within this range detailed accounts identify various academic groups. 70105 – Ordinary Faculty 70110 – Acad. Salaries Faculty 70120 – Acad. Salaries Exec/Admin

  5. Account Code Structure The account codes are organized to group and summarize activity for reporting purposes. The Balance Sheet report summarizes the assets, liabilities, and net worth of an organization; the Income Statement reports the increase(decrease) in net worth for a fiscal year. Balance SheetAccount Codes Assets 01000 – 19999 Liabilities 20000 – 29999 Net Assets (Equity) 40000 – 49999 (Assets – liabilities = net assets) Income StatementAccount Codes Revenue 50000 – 59999 Expense 70000 – 79999 Transfers 80000 – 89999 (Revenue – Expense – Transfers = change in net assets for a fiscal year) Change in net assets are added to prior year net assets to determine total net assets (or equity) at the end of a fiscal year. This balance is carried forward as the beginning net asset balance in the new fiscal year.

  6. More on Account Codes Some account codes have been setup for budgeting only. Revenue, expense, & transfer accounts (50000 and greater) that end with ‘000’ or ‘00’ should only be used for budgeting. No actual transaction may be posted against these accounts. EX. 71000 – Supplies 71100 – Office Supplies 71200 – Computer Supplies • Transfer accounts, 89xxx, are used to move money between cost centers, except for RX and GA centers. Transfers are not permitted with RX or GA. • EX. • 89205 – Program support from one center to another • 89206 – From operations to reserves • 89207 – Reinvest endowment distributions to principal • Use the same account code for the debit and the credit.

  7. Search for Active Account Codes The following web site provides account code lookups http://www.financialaffairs.georgetown.edu/FMS/coa.html The first lookup is a search feature. Search by account, account group (ex. 71), or by description. In many cases there are comments to assist in proper account usage. The second is a complete list of active accounts as of a specific date, in excel format so that it may be printed or saved to the desktop. This list must be updated periodically.

  8. Fund Code Fund code groups financial activity based on the use of the money. 10 Current use unrestricted fund: activities supported by resources over which governing boards have discretionary control, ex. tuition and room & board. (ex. Departmental operating budget – GX) 20 Current but restricted use fund: activities that are supported by resources whose use is limited by external parties to specific operating purposes. (ex. Scholarships – RC or RS) 30 Endowments: assets to provide income for the maintenance of the institution. The use of the assets of the fund may be permanently restricted, temporarily restricted, or unrestricted. Endowment funds are generally established by donor-restricted gifts and bequests to provide a permanent endowment, which is to provide a permanent source of income, or a term endowment, which is to provide income for a specified period. The institution’s governing board may earmark a potion of its unrestricted funds as board-designated endowment (quasi endowment). 40 Loans: account for loans made to students and other constituents and resources available for those purposes. 50 Plant: record land, buildings and equipment and the resources held to acquirethem.

  9. Fund Code Relationship to Cost Center For revenue & expense activity (50000 – 89999) use fund: 10 – if cost center starts with G 20 – if cost center starts with R 30 – if cost center starts with E 40 – if cost center starts with L 50 – if cost center starts with P

  10. Cost Center Cost centers are used to distinguish activity by the area, program, and even restrictions on the funds. Cost centers are nine characters in length. The first two are letters which generally represent the fund and type of restriction or use of the funds. The last seven are numbers which generally represent the home department (first four) and a sequencer (last three) since most areas have multiple cost centers. GX – 2210 – 001 Fund Center Home Dept Sequence No.

  11. Cost Center The first two letters in a cost center are often referred to as the fund center. The fund center provides an indication of the use or purpose of the revenues and expenses tracked in a cost center. For example, GX is a fund center for operations. Most departments have at least one GX where their office expenses such as salaries and supplies are charged. These cost centers also have established budgets. GX centers operate on a fiscal year schedule. A new budget is submitted for each fiscal year and the actual transactions start from zero each year.

  12. Cost Center Another fund center type is RX. RX is sponsored programs activity, grants and contracts. RXs have established budgets and charge expenses such as salaries and supplies, however, they are not based on a fiscal year. RXs are based on the term of the award which can run for many years. In addition, RXs usually have external reporting requirements. For a complete listing of fund centers or to search for a cost center see http://www.financialaffairs.georgetown.edu/FMS/coa.html

  13. Fund Center Groupings / Relationships and CSR Format

  14. Fund Center Table Find the description of a fund ctr or review the purpose (use) of a particular fund ctr. http://www.georgetown.edu/finaff/coa/fundc.html

  15. Search for active cost centers at http://financialaffairs.georgetown.edu/FMS/coa.html

  16. Search for a Cost Center

  17. Cost Center Attributes Each cost center has a set of attributes assigned that enable the data to be grouped and reported on in various ways. The common attributes include: • Effective date - saves current, historical & future changes • Status - active or inactive • Organization Hierarchy – includes campus, school, division, department, and program • Grouping – links related cost centers such as RX program projects • Salary flag - can salaries be charged, yes or no • Financial statement code - functional support provided to Univ. by the activities of the center such as instruction, academic support, research • Net asset code - level of restriction, if any, on the funds (unrestricted, temp or permanently restricted) • Not so common attributes include line of business and RX specific attributes which will be reviewed later

  18. Organization Hierarchy • The organization hierarchy defines responsibility for managing the cost center within the University’s reporting hierarchy. This code provides a simple method for consolidating financial data by one of the levels. This code also simplifies data security for many users.. The levels of the organization hierarchy are: • Campus • School • Division • Department • Program For example: GX2200000 Office of the College Dean maps to: Campus: 10 Main Campus School: 1002 Georgetown College Division: 1016 GC Dean Department: 10020 College Office of the Dean Program: 100020 College Office of the Dean

  19. Use the cost center search feature to find centers within a hierarchy. Below is a search for all cost centers mapped to the department of Chemistry.

  20. Other Chartfields There are several other chartfields stored in the general ledger such as the fiscal year and the month (or period) of the year that the transaction is posted. One optional chartfield for departments is subclass (class). This five character field is pre-defined by the dept. and used on journals, EAs or purchase orders to help track specific programs or uses. For example, EM101 – security systems and EM102 – energy control systems. Note that departments will not be able to assign subclass codes to transactions sent by feeder systems such as payroll, telecom, and procurement card.

  21. General Ledger Summary The chartfield values are used in combination and with dollar amounts to generate journal voucher transactions to record the financial activities of GU. A journal entry is a balanced set of transactions, that is, a transaction with debit amounts and credit amounts that equal zero when added together. An example of a journal entry and its basic characteristics: 0000022390 | 10-16-2000 | GAO | NG | 1 | 01102 | 10 | GX5340000 | registration inc | CORONAD | $ 500.00 0000022390 | 10-16-2000 | GAO | NG | 2 | 55139 | 10 | GX5340000 | registration inc | CORONAD | $ -500.00 Journal ID, Journal Date, Source, Reference, Line Number, Account, Fund, Cost Center, Line Description, Operator ID, and Amount. Contact the General Accounting Office or Barbara Barrett at 687-1961(barretbj) if you have questions about the GL or chartfields

  22. Posting Transactions to the GL • Most transactions are entered in the GL through automated interface programs. These include charges from GMS payroll, telecommunications, procurement card, consolidated billing for AP vendors: Xerox, Boise, FedEx, etc., facilities work orders, student information system, and accounts payable. • Generally, departments submit journal vouchers to record • Interdepartmental charges such as mailing services and bookstore purchases • Reallocation of charges between account codes such as with the procurement card • Transfers to provide program support to another area/cost center • RX cost transfer adjustments sent to Sponsored Accounting Office if dept not authorized to upload • Journal voucher upload templates are available at http://www.financialaffairs.georgetown.edu/forms/forms.html

  23. Journal Voucher Departmental journals are to be uploaded to the GL by you if authorized, your business manager or designee, GAO, Payroll, or SAO. There are separate upload templates for payroll journals and cost transfer journals. Go to http://www.financialaffairs.georgetown.edu/forms/forms.html to save templates and find instructions. Contact the General Accounting Office, if you have questions regarding JV closing dates or submitting upload JVs for posting.

  24. Web Expense Voucher Visit the Accounts Payable policies site for restrictions on use of expense vouchers. Contact AP to learn more about using web expense vouchers. http://financialaffairs.georgetown.edu/procure/accounts_payable/AP_policies.htm

  25. GL Batch Posting Cycle Examples of transactions loaded during the day include: Accounts Payable (daily) Cashier Deposits (daily) OA gifts (daily) Online users (daily) Student Accts (daily) GMS payroll (daily, bi-weekly & monthly) Procard (bi-weekly) Facilities (monthly) Telecom (monthly) Web Cost Transfers (nightly) *Starting at 6:00pm: Edit and Post Journals that are Error Free Generate and post system journals: Fringe benefits, indirect cost charges , automated revenue, and interfund balancing Generate Web CSR reports available for viewing the next morning. *The posting cycle runs 6:00pm daily Monday – Friday excluding University holidays and on Sundays starting at 11:00am.

  26. GL Closing Schedules Go to http://financialaffairs.georgetown.edu and select the ‘Calendars’ link to get to the GAO monthly closing calendars and the yearend audit calendar.

  27. Financial Affairs Policy Updates Go to the Financial Affairs home web page regularly to check for updated policy and procedure information. In particular check: • What’s New http://www.financialaffairs.georgetown.edu/whatsnew.html • Policies & Procedures http://www.financialaffairs.georgetown.edu/policytc.html • Financial affairs policy updates • CSR review and reconciliation • Non-depreciable movable equipment

  28. What is a CSR?

  29. The Cost Center Status Report is a report for tracking revenue and/or expenses related to a particular program or activity. In most cases the CSR tracks budgeted activity in addition to actual revenue and expense postings.The CSR may be used to: • Check your current ending balance • Check your year-to-date expenditures • Check to see whether expense items have cleared and whether they belong to your cost center • Compare to your budget to see if you have a positive or negative variance and whether you have any remaining budget dollars

  30. CSR Characteristics • Exhibits: • Summary • Detail • Non-payroll journal activity • Payroll journal activity • Open PO report • Payroll encumbrance • RX award information (web only) • RX milestones (web only) • Endowment information (web only) • GL activity (web only) • Payroll master list (web only) • Formats: • Fiscal year/budget based: operating (GX) • Project year(s)/budget based (RX, PC, PE, PJ) • Qatar format • Special funds - may have budgets but the available balance in the fund carries over from year to year. Detailed activity is shown only for the current year (ex. GD, RT, RS, EP)

  31. Using the CSR to Manage Budget vs. Actual Activities

  32. Login to Financial Access+ to review the CSR report- go to http://limited.georgetown.edu/FinancialAccess/- select ‘Login to Financial Access+’- enter your GU netid and netid password • Available Options • Financials: - View Center Status Report • Check Distribution Report • Cost Transfers • AP & Purchasing: - Enter Requisitions • Procurement View • Enter Expense Vouchers • View Voucher Status • Grants Management: - Sponsored Projects Milestone Update • Effort Certification

  33. Select the Financials menu Then select the View Center Status Report link

  34. enter the cost center to be viewed. • select the period to be viewed • select the report type to be viewed • select ‘Submit’ button

  35. Fiscal Year/Operating Format (GX) -Center Status Summary A B C D E F G H C = B/Spread Method F=C-E H=B-E-G Net Activity = Revenues - Total Expenses

  36. Revenues: brackets around the variance indicate that less revenue has been collected YTD than expected per the estimated YTD budget. Revenues: no brackets around the variance means that more revenue has been collected YTD than expected per the estimated YTD budget. Expenses: brackets around the variance means that more has been spent YTD than expected per the estimated YTD budget. Expenses: no brackets around the variance means that less has been spent YTD than expected per the estimated YTD budget.

  37. CSR Columns A - Original Approved Budget (OAB): developed by campuses and approved by the Board of Directors generally during Feb or May meeting. B - Current Approved Budget (CAB): OAB plus (minus) temporary and permanent budget revisions made after May. C - Estimated YTD Budget: the timing of the revenue receipts and expense payments are estimated by spreading the CAB over the twelve months of the fiscal year. Methods include: (1) based on prior year’s actuals (4) manual spread by user (2) one twelfth per month (5) quarterly (3) full amount in June1/12 (6) semi-annual (Sep/Jan) D - Current Month Actuals: summary of revenues and expenses posted to a cost center during the current fiscal month. The total agrees to the sum of posted journals on the payroll and non-payroll journal activity exhibits. E - YTD Actuals: summary of revenues and expenses posted to a cost center for the fiscal year beginning with July and through the current month.

  38. CSR Columns F - Variance: amount is equal to the estimated YTD budget minus the YTD actuals. Variance measures your actual financial results to your projected results for a particular point during the fiscal year. G - Open Commitments: amount is equal to outstanding purchase requisitions (orders sent to purchasing) and outstanding purchase orders (orders dispatched/sent to vendors but not yet paid). H - Budget Balance Remaining: amount is equal to CAB minus YTD actuals minus open commitments. This column shows balance remaining to be collected (revenues) and balances remaining that can be spent (expenses). - a negative balance in revenues - still expect to collect more revenue - a positive balance in revenues - collected more revenue than budgeted. - a positive balance in expense - available budget to spend. - a negative balance in expense - spent more than budget provided.

  39. Payroll Encumbrance Exhibit • The rule for calculating a payroll encumbrance for non RX centers is to use the least of: • -Expiration date of the employee from GMS • End of the current fiscal year

  40. Center Status Detail The detail report breaks out the summary amounts into the detail account codes where the expense hit

  41. Upon completion of the summary and detail review select the non-payroll journal activity exhibit for review.

  42. Non-Payroll Journal Activity - includes activity in accounts 50000-59999, 71000-89999 The operator and/or source code tell which office/system & which person initiated the transaction

  43. Look Up Operator in the G’Town Directory URL = http://contact.georgetown.edu/

  44. Other common source codes include: GAO - General Accounting on-line, APY - Accounts payable, CON - AP consolidated billing, CSX – Auxiliary services division PRC - Procurement card, PYO – Payroll adjustment JV FAC - Facilities work orders, TAS - Telecom phone charges, XFR – Cost transfer adjustment

  45. Look Up Source Codes The source code indicates which feeder system, area, or office initiated the journal entry.

  46. Non-Payroll Journal Activity AP transactions usually have two rows for each entry. The heading provides the description for the first and second row of the entry. Information regarding invoice numbers, POs, check numbers etc. is located here for those transactions processed through the AP/PO system. Not all items with a journal source APY will have requisition/PO info.

  47. Non-Payroll Journal Activity At year-end, numbers in the YE column indicate if the transaction occurred during first, second, or third close. The CSR uses the YE column throughout the year to show unposted journals during a period.

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