ACCOUNTING INFORMATIONAL SESSION

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ACCOUNTING INFORMATIONAL SESSION

• College of Arts Science
• July 27th 29th, 2004
• By Dalana Moore

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AGENDA

• Fund Accounting
• Fund Definitions (Handout)
• Fund Transfers
• Consolidated Fund Valid Account List
• MPathways Relationships (Flower Handout)
• Chartfield Definitions (Handout)
• Shortcodes vs. Chartfields (Handout)
• Questions

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FUND ACCOUNTING

• What is Fund Accounting?
• The University is a non-profit, governmental
  entity, therefore it has to follow the fund
  accounting principles.
• The University receives money from many different
  sources. The source determines what Fund the
  money will be deposited into. The Fund also
  dictates what kind of expenditures will be
  allowable.
• Unrestricted vs. Restricted Funds
• Unrestricted Funds - resources the University
  receives in which the donor or grantor has not
  made stipulations regarding their use. However
  University and IRS rules do apply.
• Examples General, Designated, Auxiliary Funds
• Restricted Funds - resources the University
  receives where a donor or grantor specifically
  defines the purpose, program, Department, or
  School/College.
• Examples Gift and Sponsored

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Fund Definitions

• The Universitys major fund groupings for
  internal operating and reporting purposes.
• Funds include
• General - 10000
• Expendable Restricted 20000, 25000, 30000
• Designated 40000
• Auxiliary 5xxxx
• Student Loans 6xxxx (Ann Arbor Only)
• Endowment and Other Invested Funds 7xxxx
• Plant 8xxxx
• Agency - 90000

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Fund Transfers

• Why cant you do transfers between Funds?
• By moving money from one Fund to another, it
  changes how the money can be spent.
• When the University is audited, we have to be
  able to confirm that each Fund spends its money
  for the correct type of expenditures defined by
  the Fund.

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CONSOLIDATED FUND VALID ACCOUNT LISTING

• This list defines what revenue and expense
  accounts are allowed and not allowed across all
  Funds.
• You can open the list (Excel) from the web from
  the Financial Operations home page.
• www.umich.edu/finops/
• Under General Information button, under Valid
  Account Listing.

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MPATHWAYS RELATIONSHIPS

• Flower Diagram
• This illustrates the relationships between the
  different MPathways Systems.
• Financial
• Procurement
• HRMS/Payroll
• Student (only Ann Arbor)
• Accounts Receivable

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CHARTFIELD DEFINITIONS

• What are chartfields?
• Budget Period The fiscal year we are currently
  in.
• Budget Period is July 1st June 30th
• BP xxxx June 30th calendar year
• (EX June 30, 2004 BP 2004)
• Fund - Where your money comes from and how that
  money can be spent.
• Dept ID - Who the money belongs to.
• Program - How the Dept. wants to keep track of
  their money.
• Project/Grant - A further definition of how the
  Dept. wants to keep track of their .
• Class - What the Dept. is using the money for.
  (Handout)
• Account - What type of transaction it is.

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SHORTCODES VS. CHARTFILEDS

• What drives transactions in MPathways?
• Chartfield describes how the University will
  capture, accesses, and report its financial
  information.
• By using a series of individual values which, in
  a sequence, describes a specific activity within
  the University.
• Shortcode is a six digit number that describes
  a specific chartfield relating to Payroll, a
  specific Servicing Unit, or Gift Processing.
• Chartfield conversion example/handout.
• The Shortcode is like a word and the Chartfield
  is like the definition.
• SHORTCODE CHARTFIELD
• 237077 10000/953400/ADMIN/11000
• MPathways runs by the definition not the word.

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QUESTIONS