FINANCE DIVISION

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FINANCE DIVISION

• Columbia University
• Financial Accounting Overview
• 2011

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Key Business Interfaces with FAS
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Overview of Accounting Activity
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FAS Transactions by Type Source
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Departmental Budgets

• Yearly account budgets are developed in
  collaboration between individual
  departments/schools and OMB (budget office).
  Research budgets are administered by SPA as part
  of the grant process.
• The budget on an account is a planning tool for
  expenditures and revenues can be viewed in
  various ways (via paper reports or online).

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Budgets/ FFE

• USE FFE BUDGETING TOOL to enter original dept.
  budget request or budget revisions (except for
  research accounts)
• Budget Office uses Budgeting Tool information
  when determining dept. budget allocations and for
  central planning
• Regulary Training Available Online Resources

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For Discussion

• FAS Financial Reports (in DARTS Data Warehouse)
  vs. Consolidated Operating Budget Reports (COB
  in Data Warehouse)
• Columbia Financial Statements
• My.Columbia.edu vs. Finance Gateway for resources

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Types of Funding (Where do come from?)

• Unrestricted Funds
• Sponsored Project Funds
• Endowment Income
• Endowment ( Quasi) Funds
• Gifts
• Student Loan Funds
• Plant Funds
• Student Agency Funds

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Types of Funding Unrestricted

• Controlled by general University policies, school
  or divisional policies and mission of department.
  
• See Universitys Administrative Policy Library
  for more info
• http//policylibrary.columbia.edu/

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Types of Funding - Restricted Sponsored Research
Projects

• In accepting sponsored project funding,
  University faculty and staff who conduct
  sponsored projects have an important fiduciary
  responsibility to manage such projects carefully.
• Departments should be aware of terms and
  conditions of all grants plus Federal and
  University policies that govern them.

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Types of Funding - RestrictedGifts/Endowments

• Compliance with Donor Terms Restrictions
• Spending on a gift or endowment must comply with
  Donor Terms Restrictions
• Accepting donor funds legally obligates the
  University

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Types of Funding - Restricted Gifts/Endowments

• Where to find applicable Terms Restrictions
• Gift Terms (giftdocs_at_columbia.edu)
• Endowment Terms (endowmentadmin_at_columbia.edu )
• Those making decisions about or approving
  expenses on endowment accounts are required
  attend Endowment Admin Compliance training
  (register at www.endowmentadmin.columbia.edu )
• This Training is also required for access to
  Endowment Term Sheets, a web-based tool for
  departments to obtain key Terms Restrictions
  information
• Further information on Endowment Compliance
  policies, procedures and forms related to the
  administration of endowments can be found at
  www.endowmentadmin.columbia.edu

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Types of Funding Other

• Plant Funds for the use of capital
  improvements, labs, buildings, etc.
• Student Agency Funds for the exclusive use of
  student organizations engaged in funded
  activities, clubs, outreach programs, etc.

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Your Departmental FAS Statement

• FAS is the Universitys Financial Accounting
  System and is the final, legal accounting record
  of the University
• Statements/reports can be viewed on Paper, in FFE
  (both online and in VFFE), in DARTS, or in Data
  Warehouse (DWR)
• FAS Statements show GL (General Ledger) and SL
  (Subsidiary Ledger) accounts
• FFE Platform is where you can enter and edit
  information in FAS

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What are SL and GL accounts?

• The General Ledger (GL) is the base of our
  accounting system
• Every transaction occurring on the Sub-Ledger is
  recorded on the GL in summary form
• Summarizes cash, revenues, expenses, budget and
  commitment activity (Assets, Liabilities, Fund
  Balances) usually a certain activity (i.e.
  faculty practice or unrestricted fund
• Also called 0 Ledger accounts
• Subsidiary Ledger (SL) Accounts
• Used to log revenues/expenses. Each SL account
  must be related to a GL account.

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Your Departmental FAS StatementTYPES OF ACCOUNTS

• General Ledger (GL) Structure
• Cash, Assets, Liabilities, Fund Balances
• 0 XXXXX XXXX
• Account Control
• Account Identification
• Ledger
• Example of a General Ledger Account string
• 0-44320-4220

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Some FAS GL Terms

• Fund Balance
• Balance that remains after revenues/fund
  additions or expenses/deductions are applied
• Liabilities
• Obligations owed to others (i.e. amounts still
  owed for goods and services)
• Assets
• Economic resources owned by Columbia (i.e.
  buildings, securities or cash funds)

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More about GL Account Controls

• Account Controls identify specific activity i.e.
  Assets (1XXX), Liabilities (2XXX), Fund Balance
  (3XXX), Fund Additions (4XXX), Fund Deductions
  (5XXX) and provide summaries of Revenues/Expenses
  or Subsidiary Ledger Accounts (9XXX).
• Typical Account Controls used for a GLgtGL fund
  transfer
• Debit 5810 gtgt Credit 4810 for 0-4XXXX GL accounts

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GL Statements
General Ledger Example The following example of a
general ledger account is account 016400, which
represents activity related to Columbias rental
of apartments (the funding source is rental
revenue, the use of the funds is for upkeep of
the rental properties)
Balance Sheet
Equity
Income Statement
yellow Assets I green Liabilities I
blue Fund Bal I red transfers I
purple roll-up from SL (-) Credit ()
Debit
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GL Statements

• Above the Fund Balance line The Funds Assets and
  Liability accounts
• This fund has claim to cash (1100)
• This fund has receivables (1350)
• This fund has no liabilities.

• Fund Balance line
• Shows the roll up of the Statement of Activities
  into Fund Balance
• Activity below the line is summarized into Total
  Fund Balance (Account control 3X00)
• Shows Fund Balance based on Commitments

Total Fund Balance 3X00 X 2nd digit of GL
account number
Account Controls Fund balance line and above
Balance sheet accounts (Assets, Liabilities and
Equity) Below Fund balance line Statement of
Activities accounts (Revenues and Expenses)
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Your Departmental FAS StatementTYPES OF ACCOUNTS

• Subsidiary Ledger (SL) Structure
• Assets, Liabilities, Fund Balances
• 1 XXXXX XXXX THRU 9-XXXXX-XXXX
• Subcode
• Account Identification
• Ledger
• Example of a Subsidiary Ledger account string
• 1-60114-0790 (revenue activity) 6-44320-2100
  (expenditure activity)

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Your Departmental FAS Sub Ledger (SL) Statements

• SUMMARY(AMO-90) vs. DETAIL (AMO-91)
• Account Statements are organized by month / year
• Budget (A) column on FAS Summary Account
  Statement (AMO-90) reflects up-to-date approved
  Budgeting Tool entries
• Monthly reporting on FAS reports is either on a
• Fiscal Year basis (from July to June), or
• Project Year basis (covers one fiscal year or
  several fiscal years)

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Your Departmental FAS Sub Ledger (SL) Statements

• Information on your SL statement may come from
  these University entities
• Accounts Payable (payments)
• Purchasing (liabilities/open commitments)
• University Services (Libraries, Telecom, etc.)
• HR Payroll (People_at_Columbia)
• Payroll Accounting (Labor Distribution)
• Sponsored Projects Admin/Finance
• Alumni Development System (Advance)
• Student Financial Services
• Office of the Controller
• Inter-departmental charges transfers
• Internal postings

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Your Departmental FAS StatementExample SL
Summary Statement (AMO90)
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Some SL Summary FAS Terms

• Outstanding Commitments
• Open commitments outstanding as of report date
  for each sub-code
• Actual to Date
• The Actual revenues or expenses posted to each
  sub-code for this month, the fiscal year, or
  the project year.
• Sub-code
• A sub-account (within a budget line) that
  specifies a certain use (i.e. Sub-code 2100 can
  specify expenditures for office supplies)

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FAS Expense Sub-codes

• Six digit sub-ledger expense accounts have an
  assigned 4 digit sub-codes for expenses
• 2100 Supplies and Materials (General)
• 23xx Travel (i.e. 2310 for Foreign Travel)
• 25xx Rentals
• 26xx Computer Usage (i.e. AIS charges)
• 27xx Communications/Shipping
• 3610 Office Services
• 6xxx Equipment
• 7500 Interdepartmental Credits
• 85xx Unallowables (i.e. alcohol for party)
• 95xx Indirect Costs, etc. (i.e. for Grants)

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FAS Revenue Sub-Codes

• Six digit sub-ledger accounts have an assigned 4
  digit sub-code to describe types of revenue, for
  instance
• 0100-0190 Tuition
• 0200-0290 Student Fees
• 0300-0390 Government Appropriation
• 0400-0490 Indirect Cost Recovery (i.e. Grants)
• 0500-0599 Private Gifts Unrestricted
• 0600-0699 Investment Income
• 0700-0790 Other Sources
• 0800-0890 Sales and Service of Enterprises

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What is an FAS Encumbrance?

• An Open Commitment for materials or services not
  paid as of the reporting date (i.e. FAS Statement
  Date)
• There are 3 types of encumbrances in FAS
• Open Purchase Orders
• Petty Cash (handled by Controllers Office)
• Payroll
• Use FFE Platform to correct encumbrances

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Account Control/Sub-Code List

• If you want to see a list of all account controls
  or sub-codes and what they are used for, you can
  go to the Reports section of VFFE (the old FoxPro
  FFE system) and look for the SL Sub-code/GL
  Account Control list.
• Also see the Controllers Office website
• http//www.finance.columbia.edu/controller/financi
  al_reporting/index.html

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Your Departmental FAS StatementExample Detail
Statement (AMO91)
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Some SL Detail FAS Terms

• Offset Account or Invoice
• Vendors invoice number (via AP CAR) or offset
  account (via Journal Entry)
• Order Number Ref.1
• Purchase order number referenced by trans.
• Loc Ref. 2
• Accounts Payable code for location and voucher
  number
• EC
• Entry Code identifying type of transaction (i.e.
  2xBudget, 4xCash Disbursements etc.)

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Other FAS Terms

• CR
• Credit designation on statement
• Batch Entry
• FAS entry identified by and date
• Frozen and Deleted Accounts
• Marked by F and D respectively in Chart of
  Accounts
• Overdraft
• Marked by letters OD signifies commitments
  exceeding budget as per account line

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About FAS Account Structure

• The way an account is numbered not only indicates
  whether it is a GL or SL account, but also what
  it is used for
• The FAS numbering system is organized by ledger
  and fund or activity types
• For more information, contact Eugene Kornikh
  Mgr. GL Operations _at_ 854-1024

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FAS SL to GL Account Numbers A Breakdown

• Unrestricted Subsidiary Ledger - General Ledger
  Relationship
• Sub Ledger General Ledger
• Revenue Expenditure 1-XXXXX 0-10000
• (General Income) 2-XXXXX Thru
• 0-10099
• Internally Restricted 4-10XXX 0-15000
• (Designated) Thru
• Addition (Ledger 40 on FFE) 0-15599
• Auxiliary Enterprises 3-XXXXX 0-16000
• Thru
• 0-16149
• Faculty Practice 3-74XXX 0-15600
• Addition Thru
• 0-15999
• Faculty Practice 3-7XXXX 0-17XXX

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FAS Account Numbers (cont.)

• Unrestricted
• Sub Ledger General Ledger
• Internally Restricted 4-55000 0-16150
• (Designated) Thru Thru
• Extension 4-55599 0-16499
• (Ledger 4H on FFE)
• Internally Restricted 3-6XXXX 0-16500
• (Designated) Thru Thru
• Extension 3-69999 0-16999
• (Ledger 4X on FFE)
• Restricted
• Govt. Grants Contracts Prime 5-20000 0-20000
• Thru Thru
• 5-39999 0-39999
• Scope 5-40000 Map 2XXXX

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FAS Account Numbers (cont.)

• Other Restricted
• Sub Ledger General Ledger
• Private Grants Prime 6-40000 0-40000
• (Ledger 6A) Thru Thru
• 6-41999 0-41999
• Scope 6-5XXXX Mapcode 40XXX 41XXX
• Private Grants Prime 7-78100 0-78100
• (Ledger 6A) Thru Thru
• Extension 7-78999 0-78999
• Scope 7-88200 Mapcode 78100
• Thru Thru
• 7-88999 78999
• Private Gifts Prime 6-42000 0-42000
• (Ledger 6B) Thru Thru

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FAS Account Numbers (cont.)

• Other Restricted
• Sub Ledger General Ledger
• Private Gifts Prime 6-45500 0-45500
• (Ledger 6B) Thru Thru
• Addition 6-45999 0-45999
• Scope 6-00001 0 - Mapcode 45500
• Thru Thru
• 6-02000 45999
• Endowment Income Prime 6-46000 0-46000
• (Ledger 6C) Thru Thru
• 6-49999 0-49999
• Scope 6-8XXXX Mapcode 46XXX
• Thru
• 48XXX

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Subsidiary Ledger - General Ledger Relationship
FAS Account Numbers (cont.)

• Plant Funds Sub Ledger General Ledger
• Prime 7-71000 0-71000 Thru Thru
• 7-72999 0-72999
• Scope 7-3XXXX Mapcode 71XXX 72XXX
• Prime 7-75XXX 0-75XXX
• Scope 7-5XXXX Mapcode 75XXX
• Clinical Trials
• (Ledger 7A) 7-79000 0-79000
• Thru Thru
• 7-79999 0-79999
• Scope (sub) 7-88000 Mapcode 79000
• Thru Thru
• 7-88199 79999
• (NO 8 Sub Ledger)

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SUBSIDIARY LEDGERS (REVENUES/EXPENSES)
FAS Account Numbers (cont.)

• 1-XXXXX CURRENT UNRESTRICTED REVENUES
• include unrestricted gifts and other
  unrestricted resources earned such as student
  tuition and fees, Indirect Cost Recovery, etc.
• 2-XXXXX CURRENT UNRESTRICTED EXPENDITURES
• include economic resources which are expendable
  for any purpose in performing the primary
  objectives of the institution, i.e., instruction,
  research, and public service, and which have not
  been designated by outside donors or the
  governing board for other purposes.
• 3-XXXXX AUXILIARY ENTERPRISES AND OTHER
  ACTIVITIES
• include revenues and expenditures of residence
  halls and dining services.
• 3-6XXXX INTERNALLY RESTRICTED (DESIGNATED)
• include revenues and expenditures of
  funds expendable for operating purposes but
• 4-XXXXX restricted by the Universitys governing
  board as to the specific purpose for which they
  may be expended, i.e., discretionary funds.
• 5-XXXXX CURRENT RESTRICTED EXPENDITURES -
  GOVERNMENT GRANTS AND CONTRACTS
• include grants from governmental sources for
  research, training, or other sponsored programs.

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FAS Account Numbers (cont.)

• 6-XXXXX CURRENT RESTRICTED EXPENDITURES -OTHER
• include private gifts and endowment income
  restricted to a school or a department or
  restricted for specific operating purposes such
  as scholarship grants, professorships, purchase
  of library books, etc.
• 7-XXXXX PLANT FUND / CLINICAL TRIALS EXPENDITURES
• Plant funds are used for the acquisition,
  renewal and replacement, and retirement of
  indebtedness on physical properties for
  institutional purposes.
• Clinical trials are used for the study in human
  subjects involving a therapeutic or diagnostic
  intervention with a drug, device, or health care
  product.
• 8-XXXXX (Unassigned)
• 9-XXXXX AGENCY FUNDS
• included revenues and expenditures of funds
  held by the institution as custodian or fiscal
  agent for others such as student organizations,
  individual students, or faculty members.

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MyColumbia Portal FinSys and DataWarehouse
Reports

• What is MyColumbia?
• How the FinSys and DWR Tabs affect your work
• FinSys (Financial Systems) page has links to FFE
  modules, Reports and other systems (like DARTS)
• Data Warehouse (DWR) Reports offer FAS Reports
  and COB reports

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VFFE/FinSys Reports Available

• Budgeted vs. Actual
• Account Reconciliations
• Open Commitments
• Accounts in Overdraft
• IDI Transactions
• Batch Status
• DAF/FFE Administrator list
• Many Others

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Using DARTS for reports

• Access to DARTS via website or FinSys
• DARTS training See Training Page on Finance
  Website
• Downloading and Printing from DARTS

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For More FAS and Budget Info

• For detailed Finance Division information (re
  financial statements, accounts payable, payroll,
  sponsored projects finance, IDI and licensing,
  etc.), go to http//www.finance.columbia.edu
• For further Finance training (including
  e-classes), go to
• http//www.finance.columbia.edu/hr/training/index
  .html
• For further information on grants administration,
  go to Sponsored Projects Administration
• http//www.spa.columbia.edu/