Division of Business Affairs Financial Services. Account Use FAQs

Transcription

1 Division of Business Affairs Financial Services Account Use FAQs Table of Contents: I. General II. Computer and Software expenses III. Educational and Office Expenses IV. Other/Miscellaneous Revenue Accounts V. Travel accounts VI. Other VII. For Further Questions Appendix A: Summary of Recent Account Code Changes Other documents of interest located on General Accounting website: List of Expense Accounts Expense Account Code Descriptions I. General **PLEASE NOTE** THIS DOCUMENT IS NOT INTENDED TO PROVIDE GUIDANCE ON ALLOWABILITY OF COSTS; ONLY FOR ACCOUNT CODE USE. 1. Q I had heard that Financial Services was in the process of creating a Banner Chart of Accounts that would include detailed definitions of accounts to specifically describe their intended uses. Was this document ever created? A Yes! This document was developed by the Chart of Accounts project team in Financial Services and first released on 7/1/11. The most recent version can be found on the General Accounting website ( under General Accounting Resources > Account Codes. For quick reference, a categorized list of all supplies, materials, fixed assets, and services expense accounts was developed and can also be found on the General Accounting website, within the Account Codes box on the right-hand side, Expense Account Codes. The more comprehensive Descriptions document is meant to be used as a supplement to this list. All documents that we have developed are intended to be living documents. We welcome any suggestions you have for changes and improvements.

2 For a complete list of all University accounts, users can access chart information from the Account Hierarchy by selecting the FGRACTH report in eprint. Though the report has some limitations, you can find all University revenue accounts, salary and benefit accounts, and expense accounts in this report. Please contact Kim Seamans (7-5752) for additional questions related to the chart and use of account codes. 2. Q Where can I find a list of Fixed Asset accounts? A A list of fixed asset accounts is included in the Expense Account Codes and the Expense Account Code Descriptions documents referenced in question 1 and located on the General Accounting website, within the Account Codes box on the right-hand side. II. Computer and Software expenses 3. Q How do you differentiate among the Information Technology (IT) equipment and software accounts? How do I decide which account to use to record the purchase of computer equipment, laptops, software, and similar technology expenses? What is the difference between Local Area Network (LAN) Equipment and Wide Area Network (WAN) Equipment and what are the appropriate account codes to use if I am purchasing this type of equipment? A Many of the IT equipment and software accounts should only be used by ITS or with their guidance. The following are the accounts that departments should most often use for computerrelated purchases in daily operations: Accounts for PC and Printer Equipment Capital Non-Capital (at least $5,000) (< $5,000) Personal Computer (PC) Printer Laptops, Netbooks, Tablets Accounts for PC and Printer Software Capital Non-Capital (at least $100,000) (< $100,000) PC Software Printer Software Laptop/Netbook/Tablet Software "Software" here means off-the-shelf commercial software and includes software licenses and renewals of software licenses.

3 The following accounts are those that should be used mainly by ITS or with their guidance/approval: Accounts for Information Technology (IT) Equipment Capital Non-Capital (at least $5,000) (< $5,000) LAN Networking Equipment LAN Wireless Equipment WAN Equipment Server Equipment Mainframe Equipment Other DP Equipment IT Security Equipment LAN = Local Area Network (limited to a room, building, campus, or specific area) WAN = Wide Area Network (covers a broad area usually linking across metropolitan, regional, or national boundaries) These accounts should be used almost exclusively by the ITS department or with their guidance. Accounts for Information Technology (IT) Software Capital Non-Capital (at least $100,000) (< $100,000) WAN Computer Software Server Software Mainframe Software Other DP Software Externally Developed Software IT Security Software These accounts should be used almost exclusively by the ITS department or with their guidance. 4. Q I am purchasing software to be used exclusively in the classroom. Should this be classified in account Educational Supplies, account Other Educational Equip Non-Cap, or account Software-PC/Printer Non-Cap? A The expense account used should describe what is being purchased, not why. In this case, we want to record all software being purchased by the University in accounts labeled as software, regardless of its intended use, e.g., in a classroom or administrative office. The fund number will indicate the function or university mission supported by the expenditure, such as administrative, instructional, or research. Therefore, the best account to is Software PC/Printer Non-Cap. 5. Q What account should I use for rental of software licenses? A Depending on the software s use, one of the following accounts should be used: Rent/Lease-PC Software Rent/Lease-Server Software Rent/Lease-Mainframe Software Note that there is no difference between renting software and renting a software license. In both cases, you are renting the right to use a company s software. Most of the time, department users will be dealing with personal computer (PC) related software.

4 6. Q What account should I use when purchasing computers or other equipment that include maintenance agreements, peripheral equipment, and/or specialized software that are bundled into the same quote/invoice? A You may use multiple accounts to record the purchase of items listed on the quote or invoice. If you were purchasing a personal computer that comes with a built-in maintenance agreement and software, you could use account PC/Workstation/Printer Non-Cap for the PC cost if less than $5,000, account Maint Contract PC/Printer Equip for the maintenance agreement, and account Software-PC/Printer Non-Cap for the software cost. If you do not receive an invoice with an itemized list of costs, you should request one. However, if the costs are minimal, you can use the account that relates to the primary asset being purchased (in this example, account ) for all costs included in the quote/invoice. 7. Q What costs should be charged to account , Telecommuting Internet Reimbursements? A Account should be used for reimbursements to employees for Internet costs incurred while the employee is telecommuting/teleworking or otherwise conducting University business from home, including via the Teleworking Program dictated by PIM 58, Teleworking Program Guidance. Note that expenses incurred while in travel status should be charged to the "Subsistence - Other/Tips/Etc" accounts (925220, , or , depending on whether travel is in-state, out of state, or out of country). This account should not be used for mobile communication device (MCD) allowances (use account ) or for other business-related Internet charges, such as network cards or hotspots (use account ). 8. Q We are purchasing software from a vendor who is describing it as Software as a Service (SaaS). Does this affect the account code I should use? A Yes. Software as a Service (SaaS) expenses are considered purchases of vendor-provided services rather than purchases of the actual software itself. The University never ends up owning the software but receives the services provided by that software, usually via web-based interfaces. As such, the costs should not be recorded in a software account (See Question 3) but should be recorded in account Software Subscriptions. III. Educational and Office Expenses 9. Q What is the best approach to determine the correct account number to use for general purchases of equipment or supplies? A For all equipment and supplies purchased, you should determine if there is an account specifically established to record the specific equipment or supply item. For example, personal computers, laptops, motor vehicles, drugs and pharmaceuticals, gasoline, and food products have specific account codes established. If these purchases will be used solely for educational purposes, they should still be expensed against an account code that best describes the item being purchased. The fund will describe the function or university mission served by the equipment or supply item (e.g., instruction, research, administration).

5 The purpose of accounts like Educational Supplies and Other Educational Equipment Non Cap is to capture costs for the classroom that may not be more specifically classified in the existing chart of accounts. For instance, exam/testing kits purchased for classroom use do not need to be more specifically classified; therefore, educational supplies is an appropriate account to record these expenses. Questions #4 and #10 also relate to this topic. 10. Q What expenses should be recorded using account Educational Supplies? A Account Educational Supplies should be used for purchase of materials and supplies used exclusively for instructional and training purposes (OSC ). As an example, the educational supplies account code may be used to record the purchase of items such as materials for senior design projects, exam/testing kits, educational videos to be watched in class, and teacher s edition books. Items that should not be classified as educational supplies include paper (office supplies), educational software (capital equipment software), and chemicals (lab supplies). Please see Questions #4 and #9 for further explanation and examples. 11. Q What account should I use to buy office supplies if I am a professor? A Use account Office Supplies. Even if you are a professor, you should use this account to record the purchase of all office supplies. IV. Travel accounts 12. Q What account should I use for parking tokens? A Use account Board/Non-Employee Transp for the purchase of parking tokens for board members or non-employees. Parking tokens should not be purchased for employees as they represent a personal expense. 13. Q What account should I use to pay passport and visa processing fees for faculty? A Account Administrative Cost Expense. 14. Q What account should I use for registration fees for employee training classes if the registrant is not travelling, that is, when the employee is not in a travel status and a travel authorization is not required? A Account Instate Registration. This account should be used regardless of whether the employee is traveling or not.

6 15. Q What accounts should I use for employee v. non-employee travel expenses? A The following accounts should be used for employee travel expenses: Travel & Registration Expenses In-State Out of State Out of Country Transportation-Air Transportation-Ground Transportation-Water Subsistence-Lodging Subsistence-Meals Subsistence-Other/Tip/Etc Employee Travel The following accounts should be used for board member and other non-employee travel expenses (e.g., reimbursable travel expenses of potential new hires): Out of Travel & Registration Expenses In-State Out of State Country Board/Non-Employee Transportation Board/Non-Employee Subsistence Q Is there a specific reason why the different types of travel (e.g., in-state air, out-of-state air, in-state ground, out-of-state ground) need to be reported separately? A Per the Office of the State Controller, travel needs to be broken out by these specific categories due to frequent inquiries about travel expenses from Fiscal Research, OSBM, and the media. V. Other/Miscellaneous Revenue Accounts 17. Q When is it proper to use account Other Misc Revenue Nonop Prog Rev? A Use account to record the receipt of non-operating revenues, i.e., those that are not generated from your operations. Please contact Ron Sanders (7-5786) or Kim Seamans (7-5752) before using this account if you believe you may have non-operating revenues. 18. Q When is it proper to use account Other Sales & Services Revenue or Miscellaneous Income? A Use account to record the receipt of sales and services revenues for which there is not a more specific account. Use for the receipt of other operating revenue that is not derived from sales or services provided, but only if there is not a more specific revenue account. 19. Q When is it proper to use any other miscellaneous or other revenue accounts? A Only with approval from Financial Services. Contact Ron Sanders (7-5786) or Kim Seamans (7-5752) for approval.

7 VI. Other 20. Q What account should I use for creation of signs, for instance, by Union Station? A It depends on what the sign was created for. If the sign is for advertising, you can use account Advertising. If the sign is for general public relations, account Public Relations can be used. If the sign/banner is for program-related instructions and directions or other informational purposes, account Printing, Binding, & Duplicating may be appropriate. If none of these accounts describe the reason for creation of the sign, then account Other Current Services may be appropriate. 21. Q What account should I use for signs or plaques that will be attached to a building? A If the signs or plaques cost less than $5,000 each, you should use account Building Fixed Equipment/Signage (Non-cap). If > $5,000, use account Building Fixed Equipment/Signage (Cap). 22. Q What is the difference between account Food Supplies, account Contract Svc- Special Food Svc Event, and account Administrative Meals? A Account is for food products that can be considered supplies of the department. For example, if a department purchases meats, cheese, and bread to make sandwiches for consumption during a training session or other gathering, those foods are considered food supplies. Note that food and drinks purchased for resale should be recorded in account Account is for food services provided for a special event under a contract/service agreement. For example, if an event is being held, and Chartwells is contracted to provide food for the event, the expenses to Chartwells would be classified using this account code. Account is for administrative meals, which includes food costs not accounted for elsewhere. For example, if a candidate is brought to lunch as part of the interview process and the candidate is not in a travel status, that meal would be charged to administrative meals. Note that all food purchases are subject to University Policy #601.8, Appropriate Use of University Funds ( 23. Q When is it proper to use a General Ledger (Balance Sheet) account, i.e., an account that starts with Gxxxxx? A Balance sheet accounts can only be used with approval from Financial Services. Contact Ron Sanders (7-5786) for approval.

8 24. Q What account should I use for summer wages? A Summer wages should be paid out of the following accounts, similar to wage payments during any other time of the year: Employee classification Account Account Title Permanent Faculty EPA Permanent Teaching Salaries Visiting/Adjunct Faculty EPA Temporary Teaching Salaries Special payments for accredited teaching* EPA Teaching Special Payments EPA Permanent Staff EPA Perm Non-Teaching Salaries EPA Temporary Staff EPA Temp Non-Teaching Salaries Special payments for non-teaching purposes** EPA Non-Teaching Special Pmt SPA Permanent Staff SPA Regular Salaries SPA Temporary Staff SPA Non-Student Temp Regular Wages Student Workers Student Regular Wages *This account code can be used for EPA faculty/staff that teach accredited courses under special arrangements/circumstances, and for SPA staff that teach accredited courses outside their normal job duties and hours but cannot be paid as part-time employees. **Covers a wide range of payments including those for research/grants/awards, administrative duties (e.g., board director or chairman duties), course development, startup packages, and teaching non-accredited courses. Note that, in all cases, Academic Affairs must review and approve the related Electronic Personnel Action Form (EPAF), which lists the account from which the employee s salary will be paid. 25. Q What account should I use for dining-related furniture, e.g., tables and chairs for a dining area? A Account or , depending on the cost, would be the most appropriate account for dining area furniture. The following accounts are available for furniture purchases: Accounts for Furniture Capital Non-Capital (at least $5,000) (< $5,000) Office, Reception, or Warehouse Classroom, Library, Lab, Dining Residential/Dorm Also see the Fixed Assets portions of the documents referenced in Question 2.

9 26. Q We are leasing equipment through a third party under a formal lease agreement. What account should I use to record the lease payments? A You should use one of the rent/lease accounts as follows: Rent/Lease-Land Rent/Lease-Buildings/Offices Rent/Lease-Other Facilities Rent/Lease-PCs and Printers Rent/Lease-WAN DP Equipment Rent/Lease-LAN Equipment Rent/Lease-Servers Rent/Lease-Mainframe Equipment Rent/Lease-Other Computer Equipment Rent/Lease-Video Transmission Equip Rent/Lease-Voice Comm Equipment Rent/Lease-PC Software Rent/Lease-Server Software Rent/Lease-Mainframe Software Rent/Lease-Furniture/Furnishings Rent/Lease-General Office Equipment Rent/Lease-Other Equipment Rent/Lease-Motor Vehicles Even if the underlying equipment being leased is capital in nature, use one of these rent/lease accounts. Financial Services has its own set of procedures to ensure that the leases are reported correctly (as capital leases) for financial statement purposes at year end. Correspondingly, if your department is entering into a lease agreement for capital equipment or other property, please notify the Fixed Assets department (e.g., through 49er Mart or via ) before the invoice has been processed and paid to ensure proper reporting, and forward a copy of the related agreement to Kim Seamans (kseamans@uncc.edu). 27. Q Can you give me a description of account Other Current Services? How does this account differ from account Other Contracted Services? A Account Other Current Services is for administrative services that cannot be more specifically categorized using any of the other service or administrative expense accounts.* Account Other Contracted Services is for contracted services (services purchased from independent contractors or external organizations for professional and consultative personal services that are needed for maintenance and/or ongoing operations and cannot be provided by current staff) that cannot be more specifically categorized using any of the other Contracted Services accounts.* *See Expense Account Codes on General Accounting website for a listing by category.

10 28. Q What account would be best for promotional items such as UNC Charlotte branded shirts given to volunteers and other non-employees? A These purchases, as well as other incentives and promotions such as pens, pencils, tote bags, etc. are considered supplies, and should be charged to account Non-Educational Supplies- Miscellaneous. 29. Q Should foreign transaction fees (e.g., on foreign p-card charges) be broken out separately from the actual good or service being purchased? If so, what account should I use? A Yes, the foreign transaction fees represent costs that are separate from the actual thing being purchased, so they should be broken out separately. Use account Other Administrative Expenses for the fees. VII. For Further Questions Don t see your question here? Don t worry there will be more updates to follow! If you have an account question, please send it to Kim Seamans at kseamans@uncc.edu. Corrigenda: If you see any errors in this document, please let us know! References: North Carolina Office of the State Controller (OSC). "NCAS Data Elements." NCAS System Information Guide. Web. Jan < University of North Carolina at Charlotte. University Policies. Office of Legal Affairs, 06 Jul Web. 22 Oct <