Account MANagement RESource GUIDe

1. Account MANagement RESource GUIDe Presented by the Committee of Senior Business Administrators

2. Objective To provide a resource/information guide for Texas A&M employees to enhance understanding and proper use of TAMU’s account management system for Part 02.

3. Committee Members MEMBERS: • Edward Baltazar - Business Administrator II – Academic Affairs Business Services • Michele Beal – Business Administrator III – College of Geosciences • Courtney Charanza – Business Administrator II – Human Resources & Organizational Effectiveness • Maryjo Derrick – Assistant Manager – FMO Accounting Operations • Joe Dillard - Assistant Dean - Bush School of Government and Public Service • Loretta Foster – Business Administrator II – Vice President for Student Affairs • Rhonda Fulton – Business Administrator I – College of Agriculture and Life Sciences • Linda Kettler – Assistant Director – FMO Accounting Operations • John O’Neill - Assistant Dean – School of Public Health • Yanti Parulian – Business Coordinator I – Libraries • Rochelle Sanders – Business Administrator I – Division of Information Technology • Cari Tawney – Director - Vice President for Student Affairs

4. Topics this presentation will Cover • Account Structure • Types of Funding • Three Parts of an Account • Summary of Accounts • Object Codes • Commonly Used Terms   • Commonly Used FAMIS FRS Screens • Departmental Budget Request (DBR) • Departmental Correction Request (DCR) • Account Transfer Guidelines • Reduction to Expenditure • Account Help Documents • Frequently Asked Questions

5. Account STructure • Account - A functional unit, identified by an account ID that serves a particular accounting purpose where one person has primary responsibility for it. Accounts include balance sheet (GL) and revenue/expenditure accounts (SL and SA). • General Ledger (GL) - An account or record used to sort and store balance sheet information. All GL accounts are connected to either one or many SL accounts. All GL numbers begin with 0. (Ex. 030009 – Stadium Revenue Fund) • Subsidiary Ledger (SL) - Revenue and expenditure accounts for the institution. There are several types depending on how the money was received and being used. Different restrictions apply to each type of account based on funding source. All SL accounts begin with a number 1-9. (Ex. 300090 – Stadium Revenue Fund) • Support Accounts (SA) - Subdivisions of Subsidiary Ledger (SL) accounts. Commonly used to track account activity at a more detailed level than is provided at the SL level. For example, SL account 300090 - Stadium Revenue Fund could be further divided into several SAs in order to track specific groups. (Ex: 300090-12000 Women’s Basketball and 300090-20000 Baseball)

6. Account STructure (Con’t) • GL/SL Relationships - A GL account may have only one SL account or it may have many SL accounts. • If a GL account has only one SL attached to it, it is known as a “one to one” account. Example: 021798/ 217980 • If a GL account has more than one SL account, it is known as a “one to many” account. Example: 024000/ 240001-246829 • This concept is officially known as “SL Mapping” and it important when understanding allocations, transfers, and beginning balances in relation to budgeting. • The number of SL accounts mapped to a particular GL account is shown on FAMIS Screen 2 when the GL account number is entered. Any number greater than one means the GL/SL has a one-to-many relationship. • At the end of the fiscal year, the Budget Balance Available (BBA) on one-to-many accounts rolls forward into the next fiscal year. For all others, only enough BBA to cover the remaining encumbrances rolls forward. The rest of the budget rolls back to the fund balance (GL).

7. Account STructure (Con’t) • SL/SA Relationships – An SL account (also referred to as base or parent account) can be divided into support accounts to track activity at a more granulated level or to control and direct spending. • To utilize support accounts, review FAMIS screen 6 for the SL. The SA create enable should be set to “Y” and the ---SA Transactions--- matrix is recommended to be set to all “B”s. This allows budget for expenses and revenue to be established for both base and support accounts. It also allows actual expenses and actual revenues to be posted to the base and support accounts. • Use FAMIS Screen 50 to set up each support account and FAMIS Screen 68 to identify all support accounts within the SL. • Funds can be moved from SL into SA to set up a budget for that specific activity using the DBR process or FAMIS screen 53. • If only tracking expenditures, there is no need to move any money. Transactions will post, making the SA go negative as long as the base account has a positive balance. • The sum of all of the support account balances is the balance of the SL (base account).

8. Types of Funding • State Funds (1XXXXX and 29XXXX) • State funds include General Revenue appropriated to the institution or agency by the legislature and on deposit with the state treasury until disbursement. Local funds held in the state treasury are also considered state funds for purposes of these guidelines. Local funds held in the state treasury include net tuition, special course fees charged under sections 54.051 (e) and (l) of the Education Code, lab fees, student teaching fees, hospital and clinic fees, organized activity fees, proceeds from the sale of educational and general activities or equipment, and indirect cost recoveries. All state funds must follow state expenditure guidelines. • Local Funds (2XXXXX-28XXXX, 3XXXXX-6XXXXX, 8XXXXX-9XXXXX) • Local funds are all funds collected at the institution that are not educational and general funds. Once funds are deposited at TAMU, they are TAMU's funds and must follow TAMUS regulations and TAMU rules. If money is given for a specific purpose, that money should be spent only on that specific purpose. Local funds are less restrictive than state funds. For the types of local funds and usage guidelines, please see the Summary of Accounts.

9. Three Parts of an account • 02-xxxxx-yyyyy • 02 – System Member Part Number • xxxxxx – Account Number • yyyyy – Support Account Number

10. Summary of accounts • The following account summary provides a list of account ranges, types of funds for the account range and general information about that account range/fund type. It also provides a summary view of the expense types allowed or not allowed for expenditure types in that account range/fund type. However, for a full listing of expense types, please use the Object Code Reference Guide to determine if the expense type is allowable on that fund type or account range.

12. Summary of accounts (CON’T) Types of State funds: 1xxxxx (E&G) and 29xxxx (AUF) • Must follow state guidelines for all purchases. • Use Education & General (E&G) funds for salaries as much as possible since the state pays the benefits for those salaries, which is also referred to as fringe bearing. • Available University (AUF) funds are state funds, however, they are not fringe bearing. • Whenever possible, minimize operating expenses on E&G and AUF accounts due to added restrictions placed on these funds by the state. • Must follow State Travel Management Program. • No income may be deposited into these accounts. • Expenses Not Allowed on State Funds: • Food/beverages • Memberships to organizations that pay a lobbyist • Alcohol • Gifts • Awards to employees greater than $100 • Sponsorships • Foreign travel • Student travel • Recruitment of out of state students • Business meals • Moving expenses • Tips

13. Summary of accounts (CON’T) • 20xxxx – 236999 - Local-Designated • Accounts which are set up for a specific purpose that relates to the educational mission of the university. Must be a legitimate expense that relates to the purpose of the account. • 235xxx - Local-Designated – From Contract Residuals • These are unrestricted residual balance accounts previously from the 461xxx range transferred to the designated range 9/01/2007. • 237xxx-249999, 289xxx - Local-Designated – Tuition and Fees • Accounts which are set up for a specific purpose that relates to the educational mission of the university. • It is important to remember that these funds are tuition/fees paid by students who attend Texas A&M University and we are accountable to the students for each of the expenditures on these accounts. • Must follow the same guidelines as other designated accounts. • Transfers into and out of these accounts can only be from other like accounts. • Employee/Non-employee gifts are not allowed on these accounts.

14. Summary of accounts (CON’T) • 25xxxx - Local-Continuing Education/Short Courses • Fees from conferences and short courses. Expenditures must relate to the conference or short course. • Surplus funds may be used for the furtherance of continuing education and public service efforts of the sponsoring academic unit unless otherwise authorized by the dean. • Alcohol is allowed on these accounts. This is not indicated on screen 8 of FAMIS. The GEB (General Expense Budget) flag must also be set on screen 8. • 27xxxx - Local-Designated – Service Departments • Set up to provide a service to university departments. Supported primarily by internal transfers. Must be a legitimate expense related to the income generating business of the account. • 3xxxxx - Local-Auxiliary • Account generates its own income to cover the expenses. They can have both internal and external customers. Must be a legitimate expense related to the income generating business of the account.

15. Summary of accounts (CON’T) • 4xxxxx - Local-Contracts & Grants • Accounts set up to fund a grant or contract with private, state or federal grantors.  • Must follow the grant/contract requirements and budget set up for the contract or grant. • Must relate back to the purpose of the contract or grant. • The PI/PA/department is responsible for knowing what is allowed and disallowed on the contracts and grants. Screen 8 in FAMIS can be used as a tool to see what expenses are not allowed. • 50xxxx - Local-Gifts – Unrestricted/Discretionary • Funds gifted to TAMU with no restrictions on how the funds are to be spent. However all expenditures must provide a business purpose and benefit to TAMU. • There are some type of expenditures that are only allowed on gift funds: • Sales tax reimbursement to individuals (should only be occasional since we are tax-exempt) • Social Club Memberships • Chamber of Commerce Membership – BCS • Parking Permits • Travel to attend funeral of non-employee or non-student (travel to an employee or employee’s spouse or children or a TAMU student’s funeral can be paid with other local funds)

16. Summary of accounts (CON’T) • 51xxxx - Local-Gifts – Restricted • Funds gifted to TAMU with restrictions on how the funds must be spent. • Expenditures must relate to purpose and restrictions of the gift. • Sales tax reimbursement to individuals (should only be occasional since we are tax exempt) • 55xxxx - Local-Miscellaneous accounts do not fit another category • Generally treated as restricted gift funds. • 6xxxxx - Local-Scholarship and Fellowship • Funds restricted to scholarship or fellowship payments. Normally scholarships are paid out of 16xxxx and 6xxxxx accounts. • There are a few times that you may need to set up a new account in another account range and this new account will only pay scholarships. There must be a function code of 60 entered on screen 6 in FAMIS. • The only exception to this would be those research accounts which allow scholarships and/or fellowships to be paid and they would have a function code of 15.

17. Summary of accounts (CON’T) • 8xxxxx - Plant Funds • Funds to acquire long-lived assets for the institution, renewal and replacement of property, debt service charges and retirement of debt. • Plant fund accounts should be used for expenses related to the purchase of capital equipment, major renovations, and new construction. • Typically plant funds should NOT be used for travel, maintenance and repair of space, equipment rental, or supplies. • 9xxxxx - Agency Funds • Funds held by TAMU for another entity. The money is deposited with the institution for safekeeping. • Does not have to follow TAMU purchasing or disbursement guidelines. • Typically held on behalf of students or organizations.

18. Object codes An Object Code is a four digit number used to categorize the expense or revenue on state or local funded accounts. • Expense Object Codes • 1900 – 8800 • List can be found in FAMIS on screen 805 or https://apps7.system.tamus.edu/ObjCodes/ • Revenue Object Codes • 0001 – 0999 • List can be found in FAMIS on screen 806 or https://apps7.system.tamus.edu/ObjCodes/ Visit https://fmo.tamu.edu/accounts-payable/purchase-audit/docs/object-code-searches/ for other helpful information.

19. Commonly used terms • Accounts Payable (AP) – Transactions relating to vendor payments including preparation of checks and files for the State of Texas warrants • Accounts Receivables (AR) – Transactions invoicing customers that are not within the same TAMUS agency (including student organizations) for receipt of goods or services rendered • AggieBuy- The online system that is used for purchasing and paying invoices • Canopy- A web-based version of FAMIS • Concur- The online system that is used for travel and payment card processing • Departmental Budget Request (DBR) - Initiated at the departmental level and created within FAMIS/Canopy; a DBR automates the process of funds transfers between budget pools from one account to another following embedded business rules. For more information go to https://fmo.tamu.edu/general-accounting/dbr/ • Departmental Correction Request (DCR) - A web based module that allows users the ability to initiate corrections for vouchers and journal entry transactions in FAMIS/Canopy. For more information go to https://fmo.tamu.edu/general-accounting/corrections/docs/dcr-module/ • Deposit - A cash/check deposit is used to deposit revenue into a departmental account.

20. Commonly used terms (CON’T) • Encumbrance – A hold on departmental funds to pay for goods or services not yet received • Financial Accounting Management Information System (FAMIS) - TAMU’s accounting system • Interdepartmental Transfer (IDT) - An interdepartmental transfer is used to charge another TAMU (02) account. The selling account is the account receiving the credit (revenue). The buying account is the account being charged the debit (expense). • Ipayments- A web-based application that allows IDTs, ARs, and deposits to be submitted electronically • Payroll Cost Transfer (PCT) - Payroll correction that can be processed in Canopy • Single Sign On (SSO)- A website that allows you to access TAMU’s online systems such as AggieBuy, Concur, Ipayments, Canopy, and Workday • Unit Financial Obligations (UFO) - Provide the ability to set aside budget in designated budget pools to cover commitments for future activity. For more information go to https://fmo.tamu.edu/general-accounting/dbr/docs/ufo/

21. Departmental Budget Request - DBR • Automated budget and fund transfer initiated at the departmental level. • Created/ modified within FAMIS (Screen 520) or Canopy • Can be viewed within FAMIS (Screen 521) or Canopy • Embedded rules control the creation of most allowed transfers • For a detailed training see https://fmo.tamu.edu/media/65846/dbr-training.pdf What is a DBR?

22. Departmental Budget Request – DBR (Con’t) • Departmental Data Entry • One source account to multiple destination accounts (up to 10) • Departmental Electronic Approvals • Automatic posting upon Approval • FYI Notification to recipients (destination) • Security and account access controls • Creation, routing, and approval through Canopy or FAMIS Benefits of a DBR

23. Departmental Correction Request - DCR • Departmental Electronic Approvals • Automatic posting to FAMIS upon Approval • Security and account access controls • Business Rules set to prevent unallowable changes to accounts • FYI notifications to recipients • Departmental Data Entry • What is a DCR? • A module in Canopy that allows users the ability to initiate corrections for vouchers and journal entry transactions in FAMIS Benefits of a DCR

24. Reduction to Expenditure • What is a Reduction to Expenditure? • It is a payment received as reimbursement to an expense paid from a department’s account. These payments are usually made by vendors the department has over paid or to which a department has returned a product. • Reductions to an expense can also occur when an expense is being shared with another system member. For more information go to https://fmo.tamu.edu/media/77372/reduction-to-expense.pdf

25. Commonly used FAMIS frs screens For a complete list of FAMIS FRS screens, see the next two slides or visit the following link: • http://assets.system.tamus.edu/files/famis/pdf/FRSScreenCard7pt.pdf • Helpful Hints • Screen 29 – Enter Dept/SDept Search and you will get a list of accounts for that department. This will not show support accounts. • Screen 68 - Enter Dept/SDept Search and you will get a list of accounts including support accounts for that department. • Screens 29/68 - Mark Y in field “Include Deleted Accounts” to Include Deleted Accts. You must be in the correct fiscal year that the account was active. You can search by Account Number, Department, Title and Responsible Person.

26. frs screen card

27. frs screen card cont.

28. Account Transfer Guidelines ACCEPTABLE & NON- ACCEPTABLE TRANSFERS FOR DEPARTMENTAL BUDGET REQUEST (DBR) • Acceptable Transfers • The following is a list off acceptable transfers. In general, funds must stay within the same account range or purpose. • Transfers of budgets between 100000 – 139999 accounts are acceptable with the exception that a 136XXX account can only transfer to another 136XXX account. • Transfers of budgets between 144000-144999 accounts are acceptable. • Transfers of budgets between 120000 – 139999 and 149000 – 149999 are acceptable. Transfers are acceptable from 120000-139999 to 149000-149999. • No transfers out of 149000-149999 range are allowed. • Transfers of budgets between 150000 – 151999 accounts are acceptable.

29. Account Transfer Guidelines (Con’t) • Transfers of budgets between 153000 – 154999 accounts are acceptable. • Transfers of budgets between 155000 – 156999 accounts are acceptable. • Transfers of budgets between 158000 – 159999 accounts are acceptable. • Account 130000 – 139999 (except 136XXX) can transfer to scholarship range 163700 – 163999 only for paying scholarships. Transfers back to 130000 – 139999 accounts are acceptable. For accounts with “GE” in sub sub field on screen 6, both accounts must have “GE.” • Transfers of budgets 164000-164999 within special item ranges. • Transfers of budgets between 179000 – 179999 and 120000 – 169999 are acceptable

30. Account Transfer Guidelines (Con’t) • Transfers of budgets between many accounts in the 200000 – 299999 ranges are acceptable. The exceptions are as follows: • Transfers are allowed between 20XXXX-22XXXX accounts with the exception of fee accounts. This range may also transfer to the 25XXXX range. • Transfers are allowed between 23XXXX accounts but not outside this range. • More specifically, transfers of budgets between 235XXX accounts are subject to approval by the Contracts and Grants department and not outside this range. • Transfers are allowed between 237xxx accounts but not outside this range. • Transfers are allowed between 239xxx accounts but not outside this range. • Transfers are allowed between 23XXXX accounts but not outside this range.

31. Account Transfer Guidelines (Con’t) • Transfers are allowed between 24XXXX accounts but not outside this range. • Transfers are allowed between 25XXXX accounts but not outside this range. This range may receive funds from the 20XXXX-22XXXX range. • Transfers are allowed between 27XXXX accounts but not outside this range, with the exception that if the sub sub field on screen 6 is SC, no transfer is allowed unless it’s to the corresponding 87xxxx account. Example: Account 027030 (transfer only allowed at the GL) to account 870300. Similarly, if the sub sub field is TX, only transfers to another 27XXXX account with sub sub TX is allowed. • Transfers are allowed between 29XXXX accounts but not outside this range. • Transfers of budgets between most accounts in the 300000 – 399999 ranges are acceptable. • Transfers of budgets between 2XXXXX and 3XXXXX are subject to approval on an individual basis by the Vice President’s office.

32. Account Transfer Guidelines (Con’t) • Non-acceptable Transfers • 51XXXX (gift with a purpose) to 50XXXX (unrestricted gift) • 55XXXX to 50XXXX – 51XXXX • Transfers of budgets from an account that can not purchase alcohol to an account that can (see FAMIS screen 8 for subcode 6341; 6341 = account can purchase alcohol.) • Into an AFS account from a non-AFS account • Transfers of budgets between 160000 – 160999 • Transfers of budgets between 163000 – 163699 accounts (these may be approved if the transfer does not cross individual special item ranges.)

33. Account Transfer Guidelines (Con’t) • No transfers in the 4XXXXX account ranges are allowed by DBR. • Transfers from 074XXX accounts (endowments) or 5XXXXX (gifts) accounts to 6XXXXX (scholarships) accounts are acceptable. Transfers from 5xxxxx (gifts) accounts to 6xxxxx (scholarships) accounts are acceptable. Transfers from 5xxxxx and 6xxxxx back to 074xxxx accounts are acceptable. • Plant accounts: • 805XXX account range reserved for PUF (permanent university fund) transfers only • 806XXX account range reserved for AUF transfers only • 8087XX account range reserved for projects receiving funding from Revenue Financing System debt proceeds. • 8088XX-8098XX range may receive transfers from any designated, local or gift fund accounts. • 87XXXX range reserved for renewal & replacement only. Only funds from designated service center accounts allowed. • All new plant account requests should be made through the Office of Budget & Planning.

34. Accounting Help Documents

35. Frequently asked questions (FAQ) • How do I find out what restrictions are on an account if any? • Screen 8 in FAMIS • Why are some transactions automatic and others process at different time frames? • Some transactions post real time and others post as a batch file feed. Timing can vary. Ex: Creation of AggieBuy PO (real time), payment card transactions (varies by approval path???), student feed transactions (nightly) • Why does a GL (reserve) fund balance transfer to SL (spending) account have to be initiated? • When the GL/reserve is not budgeted during the annual budget process, the department would need to request a transfer to increase the spending authority at the SL account. This action would be processed through a DBR.

36. Frequently asked questions (FAQ) • How do I calculate the amount to transfer from the GL (reserve/savings) account to the SL (spending/checking) account?

37. Frequently asked questions (FAQ)

38. Frequently asked questions (FAQ)

39. Questions OR COMMENTS????????????? This presentation is sponsored by the Committee of Senior Business Administrators at Texas A&M University