New Chart of Accounts 101

1. Overview of General Ledger Expansion Project • Review of Structural Changes to Account Numbers • Tools • MAIN MENU: New Chart of Accounts 101 Understanding the New Budget Account Numbers

2. Overview of General Ledger Expansion Project

3. Overview Why did we change the general ledger (GL) account structure effective December 2013? • Expand the number of available digits in the department, object and location code fields to allow future growth. We were running out of room in these categories. • Redefine/redesign existing chart of accounts to improve financial reporting capabilities. • Improve/streamline tracking, reconciliation and reporting of financial transactions.

4. Review of Structural Changes to Account Numbers

5. Overview Old Structure: New Structure:

6. Fund – No Change • Fund is still 3 digits in the new structure

7. Department – Add 1 Digit • Department code expanded from 6 digits to 7 digits • First digit signifies the major function of an account: • 0XXXXXX – General • 1XXXXXX – Instruction • 2XXXXXX – Research • 3XXXXXX – Public Service • 4XXXXXX – Academic Support • 5XXXXXX – Student Services • 6XXXXXX– Institutional Support • 7XXXXXX– Student Aid • 8XXXXXX – Operation & Maintenance of Plant • 9XXXXXX – Auxiliary Services

8. Object Code – Add 1 Digit • Object code expanded from 4 digits to 5 digits and changes to sequencing for financial reporting purposes. • First digit signifies the type of transaction: • 1XXXX – Assets • 2XXXX – Due to/from Fund • 3XXXX – Liabilities • 4XXXX – Fund Balance • 5XXXX – Revenue • 6XXXX– Expense • 7XXXX– Transfer into Fund • 8XXXX – Transfer out of Fund

9. Expenses • First two digits signify the type of expense: • 60XXX – Salaries & Wages • 61XXX – Supplies & Operations • 62XXX – Services • 63XXX – Employee Benefits • 64XXX – Furniture, Equipment & Other Capital Expenses • 65XXX – Financial Aid and Scholarships • 66XXX– Dues & Fees • 67XXX– Other Expenses • 68XXX– Library Expenses • 69XXX– Debt Service

10. Location – Add 1 Digit • Location expanded from 2 digits to 3 digits and changes to sequencing for financial reporting purposes.

11. Tools

12. Tools • To assist departments with their new account structure a GL Conversion Tool is available on the TROY intranet: https://forms.troy.edu/cgi-bin/downloadReports.pl?ITM/REPORTS/Finance/NonFBA/index.htm • It allows you to look up old numbers to find the new numberor vice versa. • It provides an alphabetical list of frequently used expense codes for budget purposes that can be searched by name.

13. Point of Contact • For further questions, please contact the Controller’s Office at (334) 670-3241.

14. End of Presentation