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ROWAN UNIVERSITY POLICY
Title: Chart of Ac=
counts
Subject: <=
em style=3D"letter-spacing: 0.0px;">Accounting Services
Policy No: FIN: 2016:09 =
em> &n=
bsp; =
Applies: University-Wide =
Issuing Authority: President  =
; &nb=
sp; &=
nbsp;
Responsible Officer: Senior Vice President for Fi=
nance and CFO &=
nbsp;
Adopted: 08/10/2016
Last Revision: 04/29/2022
La=
st Reviewed: 04/6/2022
I. PURPOSE
The purpose of this policy is to outline =
how the University=E2=80=99s Chart of Accounts (COA) is a created to define=
each class of items for which money or the equivalent is spent or received=
.
II. ACCOUNTABILITY=
Under the direction of the Senior Vice Pr=
esident for Finance and CFO, the Management of Accounting and Budgeting sha=
ll implement and ensure compliance with this policy.
III. APPLICABILITY
This policy applies to all University div=
isions, departments and activities.
IV=
. POLICY
- The COA is created by the University to define each class of items for =
which money or the equivalent is spent or received. It is used to organize =
the finances of divisions, departments and activities and to segregate expe=
nditures, revenue, assets and liabilities in order to give interested parti=
es a better understanding of the financial health of the University.
- The COA identifies the general ledger numbers and the subsidiary ledger=
accounts used by the University. All general ledgers and subsidiary ledger=
s are grouped by major account groups.
- All divisions and departments are responsible for ensuring the proper r=
ecording and classification of all revenues, expenses, assets, liabilities =
and fund balances.
- Organization Code
- Organization codes define the departmental entities or budgetary units =
within the institution. The organization code structure consists of up to e=
ight user-defined hierarchical levels. The organization codes are currently=
five digits with a description up to a size of 35 spaces.
- Organization codes are established in Banner to meet the reporting need=
s of the University. The creation of new organizations is driven by new ope=
rations or requirements.
- All requests for new organization codes should be submitted in writing =
to the University Budget Office. The Budget Office will then determine if t=
he organization is needed and will authorize its creation in the Banner. Th=
e Director of Budgeting is responsible for creating new organization codes.=
- Fund
- Fund types are established in Banner to meet the reporting needs of the=
University. The creation of new funds is driven by new operations or requi=
rements. All requests for new funds should be submitted in writing to appro=
priate office that will then determine if the Fund is needed and will autho=
rize its creation in the Banner.
- Fund codes define self-balancing set of accounts in which transactions =
are recorded and segregated to carry on specific activities or attain certa=
in objectives. The previously established fund types have defined how the i=
ndividual fund codes will be grouped. Fund codes are user defined and=
may have up to five hierarchical levels.
- The Assistant Vice President of Finance and Controller and the Accounti=
ng Services staff is responsible for creating new non-grant funds. Grants C=
ontract and Accounting team is responsible for creating new grant funds.
- Account Number
- Account codes identify assets, liabilities, control accounts, fund bala=
nce/net assets, revenue, labor, expenditure, and transfer transactions. The=
y are user defined and may have up to four hierarchical levels. The individ=
ual account codes are linked to the level 2 account types previously establ=
ished by the institution. The Account Codes are currently four digits=
with a description up to 35 spaces.
- All requests by departments to change attributes on accounts or to set =
up new accounts must be in writing and will be reviewed and approved by the=
Assistant Vice President for Finance and Controller.
- The Assistant Vice President of Finance and Controller will ensure the =
proper recording and classification by properly maintaining the Chart of Ac=
counts of the General Ledger and overseeing account setup and the assignmen=
t of attributes to accounts.
- Program Codes
- The use of a Program code in fund accounting is used to designate a pur=
pose for transactions in an account. This is useful when dealing with syste=
m-wide, campus-wide, or interdepartmental purposes. Program codes are essen=
tial for tracking sources of funds and are structured as part of a hierarch=
ical system.
- Specific Programs have been set up to identify a type of activity takin=
g place within the University. These programs have been set up by Accountin=
g Services and any requests for new program types must be made to the Assis=
tant Vice President of Finance and Controller, who will have the final say =
in the feasibility of creating the new program code.
- When creating journal entries or conducting transactions, it is imperat=
ive to assure proper usage of account codes are used. This is necessary to =
assure all transactions are properly posted and later reports generated wil=
l reflect accuracy. Usage of the correct program number also helps with und=
erstanding transactions when inquiries are made.
- It is the responsibility of departments requesting entries via email or=
Departmental Charge Authorization to assure the program is used correctly,=
utilizing resources to assure accuracy. It is also the responsibility of t=
he Budget Office, Bursar=E2=80=99s Office, Office of Sponsored Programs, an=
d Accounting Services to assure correct usage of program number upon postin=
g entries.
V. ATTACHMENTS
- Attachment 1 =E2=80=93 Program Numbers
ATTACHMENT =E2=80=93 1
PROGRAM NUMBERS
Program numbers have been previously established in Banner to accommodat=
e the needs and trends of the University. When journal entries are produced=
and posted, it is beneficial to select a program that best describes the n=
ature of the transactions. Although not always mandatory for all transactio=
ns, it helps better represent transactions being conducted throughout the U=
niversity. A listing of codes is available below.
Pro=
g # |
Program Description |
Prog # |
Program Description |
1 |
Operating Revenue |
37 |
Capital Projects |
11 |
Instruction |
38 |
Core Affiliates |
12 |
Research |
39 |
Rowan Innovation Venture Fund |
13 |
Public Service |
40 |
UNISA Loan Program |
14 |
Academic Support |
50 |
Tuition & Fees |
15 |
Student Services |
51 |
Contributions |
16 |
Institutional Support |
52 |
Grants |
17 |
Physical Plant |
53 |
Other Operating Income |
18 |
Student Aid |
54 |
Auxiliary Enterprises |
19 |
Auxiliary Enterprises |
55 |
Self-Funded Programs |
20 |
Amortization/Depreciation |
56 |
Fundraising |
21 |
Central Charges |
57 |
Direct Billings |
22 |
Direct Billings |
60 |
State of NJ Appropriations |
23 |
Professional Services & Contracts |
61 |
State of NJ Fringe Benefits |
30 |
Student Government |
62 |
Gifts from RU Foundation |
31 |
Foundation |
63 |
Investment Income |
32 |
Alumni |
64 |
Contributions/Permanent Endowment |
33 |
Hollybush |
65 |
Net Realized/Unrealized Gains/Loss |
34 |
S J Tech Park at R U |
92 |
Grants & Scholarships |
35 |
Perkins Loan Program |
93 |
Interest on Debt |
36 |
State College Risk Management |
94 |
Investment Expenses |
|
|
95 |
Other Non-Operating Expenses |
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