Accounting Services Guide Explaining the Charts of Accounts

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1 The University s business processes and decisions are anchored on the flow of specific financial information/data between various stakeholders. Providing such information on the University s activities is an important function of the accounting and reporting system which should capture, classify, record, and communicate relevant, reliable, and comparable financial information for purposes of: Budgetary accounting and reporting, including reporting of actual against approved budget estimates General purpose financial reporting Management information Statistical reporting The Chart of Accounts (COA) serves as the foundation of the University s financial record keeping system. It provides a logical structure that facilitates the classifying and recording of financial information. An account is a unique record for each type of asset, liability, surplus, revenue and expense. An important purpose of the COA is to segregate expenditures, revenues, assets and liabilities so that the reader can quickly get a sense of the financial health of the specific department/organization they are reviewing. 1 P a g e

2 High level overview of account structure U of W General (0) Restricted (0) Current Trust (1) Operating (10) Sponsored Research (40) Scholarships (11) Strategic Provisions (15) Designated Funds (50) External Scholarships (13) Collegiate (20) Internal Research (60) Prizes (15) Ancillary (30) Major Capital (80) Awards (17) Non-affiliated (90) Bursaries (19) Mennonite Chair (29) Other Restricted (39) Campus Development (49) General Unrestricted (89) 2 P a g e

3 General & Restricted (0) Chart of Accounts Structure In the University s general and restricted financial system there are 5 components available to capture and report financial information, as follows: Required on all transactions Fund ( 0 ) (2 digits) Department (4 digits) Account (5 digits) Optional Future use (3 digits) Fund Department Account Future use Identifies the transaction as a University of Winnipeg activity. For general and restricted activity this will always be 0 Identifies the financial activity of the University against the appropriate source of funding. E.g.: Operating, Sponsored Research, Capital, Collegiate Identifies the University operating unit or designated fund. E.g.: President s Office, Theology, Kinesiology. This number is assigned by Financial Services. You can request a new/additional department number if you want to track a specific grouping of revenue/expenses. Identifies the nature of the expenditure, revenue, asset or liability. E.g.: salaries, travel, office supplies, utilities. You are expected to choose the most appropriate, logical account number/description when determining the account code Optional code used for specific reporting needs of departments to identify specific activities when necessary. This number is assigned by Financial Services. You can request a new/additional future code if you want to track a specific grouping of revenue/expenses within a specific department. 3 P a g e

4 General Fund The general fund includes the unrestricted and internally restricted operating and ancillary activities of the University and the Collegiate. Name Description 10 Operating Fund The primary teaching, administration and academic activities of the University (E.g.: the University s core mission). 15 Strategic Provisions Appropriations from the operating fund to provide for future funding support of initiatives within the Strategic and Academic Plans of the University. 20 Collegiate The primary teaching, administration and academic activities of the Collegiate (E.g.: the Collegiate s core mission). 30 Ancillary Commercial activities of the University including housing and printing services. They are sales-producing or self-supporting activities to the University s primary operating activities of instruction and research. Restricted Fund The Restricted Fund includes activities of the University and the Collegiate where restrictions on the use of the funding have been set by external entities or internal decisions of the institution. Within each of the restricted categories, funds are restricted to specific purposes. Name Description 40 Sponsored Research Resources dedicated to research activities at the University where funding is received from external sources 50 Designated Funds Resources and expenditures designated for specific purposes (E.g.: I Heart UWinnipeg Dinner, MDP McArthur Fdn Grant, Prairie Isotope Project) 60 Internal Research Resources dedicated to research activities where funding is sourced from the University s operating budget 80 Major Capital resources dedicated to the building, equipment and other physical assets of the University as well as special capital grant projects, deferred maintenance projects and major renovation projects 90 Non-Affliated Resources and expenditures for organizations that operate in conjunction with the University, but do not form part of the University accounts. (E.g.: Menno Simons, IUN, Virtuosi) 4 P a g e

5 Department The Department code is assigned by Financial Services to help units within the University track revenues and monitor expenditures for a particular group of services. Start Finish Description President s sector UW relations Vice President Academic Student services Institute of Urban Studies Vice President Finance Financial services Athletics Arts & Sciences, Business, Kinesiology Education Graduate studies Chairs Theology PACE Library Collegiate Ancillary services Work study Capital projects Assets: 5 P a g e Account Start Finish Description Cash and cash equivalents Accounts receivable Insurance claims receivable Due to/from related parties Inventory Investments Prepaid expenses Capital assets

6 Liabilities: Accounts payables and accrued liabilities Current portion of long term debt Student fees payable to other organizations Other accounts payable Deferred contributions Obligation Compensated absences Pension obligation Deferred revenue Long term debt Revenues: Grant revenue Student revenue Sales revenue products & services Investment income Gifts & bequests Other Income Expenses: Salaries & benefits General expenses & supplies Travel & development Utilities 74100???????????? Repairs & maintenance Contracted services Cost of sales of goods & services Library purchases Furnishings & equipment > $ Major renovations/capital expenditures Amortization intangible assets Internal Transfers/recoveries/departmental revenues: Internal charges & recoveries, departmental income Trust expenditures Transfers in/out Scholarship/Bursary etc. expenditures Gifts to related parties 6 P a g e

7 Future Use If a department thinks that it would be useful to track specific further information within a department they can contact financial services to discuss their needs and uses for the information. Future codes are assigned by financial services on an as needed basis. They may be numeric, alpha, or alpha/numeric. Coding Examples Required on all transactions Optional Fund Department Account Future use 0 (General) 0 (General) 0 (General) 10 (Operating) 20 (Collegiate) 40 (Sponsored Research) 3201 (Financial Services) 4801 (Collegiate Regular Session) 8034 (NSERC) (Office Supplies) (Travel) (Student Research Asst.) 000 (N/A) PPT (Travel Advance) 000 (N/A) 7 P a g e

8 Trust (1) Chart of Accounts Structure In the University s Trust financial system there are 5 components available to capture and report financial information, as follows: Required on all transactions Fund ( 1 ) (2 digits) Trust Account (4 digits) Activity (5 digits) Optional Future (3 digits) Fund Trust Account Activity Future Identifies the transaction as University of Winnipeg Trust activity. For trust activity this will always be 1 Identifies the type of fund. E.g.: Scholarships, Bursaries, Capital Projects Unique identifier for each individual trust fund. Trust funds are usually designated for a specific purpose and the trust account number allows the University to track expenditures against gifts for the designated purpose. You can request a new/additional trust account if you will be tracking a specific designated grouping of gifts/expenditures. Identifies the nature of the expenditure, revenue, asset or liability. E.g.: Scholarships, awards, prizes. You are expected to choose the most appropriate, logical account number/description when determining the activity code Optional code used for specific reporting needs of trust funds to identify specific activities within the fund when necessary. This number is assigned by Financial Services on an as needed basis. On an annual basis the University of Winnipeg Foundation allocates an agreed percentage of the income from the Endowment Fund to the University for spending in the current year for each of the designated trust funds. At the end of each fiscal year, any unspent balance is rolled over for spending in subsequent fiscal years. The University also has the option of returning a portion of the unspent funds to the University of Winnipeg Foundation Endowment Fund to be re-invested and provide for growth of the fund in the future. 8 P a g e

9 In addition, other revenue sources are received in trust such as annual gifts from donors and transfers from the operating or restricted fund. 11 Scholarships 13 External Scholarships 15 Prizes 17 Awards 19 Bursaries 29 Mennonite Chair 39 Other Restricted 49 Campus Development 89 General Unrestricted Trust Account The trust account is assigned by Financial Services to facilitate the tracking of revenues and expenditures for a designated purpose. Start Finish Description University Funds Theology Funds Collegiate Funds Collegiate Alumni Funds Board of Regent Funds Opportunity Funds Alumni Funds Grad Studies Funds Future Funds 3710 Mennonite Chair Fund Library Funds Lecture Series Funds Miscellaneous Restricted Funds Strengthening the Links Funds Capital Funds Unrestricted Funds 9 P a g e

10 Activity Revenues: Start Description Balance unspent at the beginning of fiscal year Gifts, Grants & Bequests Income Allocation U of W Endowment Fund Investment Income current Investment income - endowment Income Allocation - endowment Expenses: Transfers to U of W Endowment Fund (Residuals) Transfers to/from operating Intrafund Transfers Scholarship Expenditures Prize Expenditures Award Expenditures Bursary Expenditures Lecture Expenditures Other Expenditures Gift allocation to Foundation Future Use If a department thinks that it would be useful to track specific information within a trust account they can contact financial services to discuss their needs and uses for the information. Future codes are assigned by financial services on an as needed basis. They may be numeric, alpha, or alpha/numeric. Coding Examples Required on all transactions Optional Fund Department Account Future use 1 (Current Trust) 1 (Current Trust) 11 (Scholarships) 19 (Bursaries) 1036 (Art History SS) 2660 (Opportunity Fund) (Inc. Alloc from Endowment) (Bursaries Awarded) 000 (N/A) 003 (DCE) 10 P a g e

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