FUND ACCOUNTING INFORMATION PRESENTATION

1. FUND ACCOUNTING INFORMATION PRESENTATION By Dalana Moore

2. AGENDA • Fund Accounting • Fund Definitions (Handout) • Fund Transfers • Consolidated Fund Valid Account List • MPathways Relationships (“Flower” Handout) • Chartfield Definitions (Handout) • Shortcodes vs. Chartfields (Handout) • Questions

3. FUND ACCOUNTING • What is Fund Accounting? • The University is a non-profit, governmental entity, therefore it has to follow the fund accounting principles. • The University receives money from many different sources. The source determines what Fund the money will be deposited into. The Fund also dictates what kind of expenditures will be allowable. • Unrestricted vs. Restricted Funds • Unrestricted Funds - resources the University receives in which the donor or grantor has not made stipulations regarding their use. However University and IRS rules do apply. • Examples: General, Designated, & Auxiliary Funds • Restricted Funds - resources the University receives where a donor or grantor specifically defines the purpose, program, Department, or School/College. • Examples: Gift and Sponsored

4. Fund Definitions • The University’s major fund groupings for internal operating and reporting purposes. • Funds include: • General - 10000 • Expendable Restricted – 20000, 25000, 30000 • Designated – 40000 • Auxiliary – 5xxxx • Student Loans – 6xxxx (Ann Arbor Only) • Endowment and Other Invested Funds – 7xxxx • Plant – 8xxxx • Agency - 90000

5. Fund Transfers • Why can’t you do transfers between Funds? • By moving money from one Fund to another, it changes how the money can be spent. • When the University is audited, we have to be able to confirm that each Fund spends its money for the correct type of expenditures defined by the Fund.

6. CONSOLIDATED FUND VALID ACCOUNT LISTING • This list defines what revenue and expense accounts are allowed and not allowed across all Funds. • You can open the list (Excel) from the web from the Financial Services & Budget Website. • https://www.umflint.edu/fiancialservices/valid-account-list

7. MPATHWAYS RELATIONSHIPS • “Flower” Diagram • This illustrates the relationships between the different MPathways Systems. • Financial • Procurement • HRMS/Payroll • Student (only Ann Arbor) • Accounts Receivable

8. CHARTFIELD DEFINITIONS • What are chartfields? • Budget Period – The fiscal year we are currently in. • Budget Period is July 1st – June 30th • BP xxxx = June 30th calendar year (EX: June 30, 2004 = BP 2004) • Fund - Where your money comes from and how that money can be spent. • Dept ID - Who the money belongs to. • Program - How the Dept. wants to keep track of their money. • Project/Grant - A further definition of how the Dept. wants to keep track of their $. • Class- What the Dept. is using the money for. (Handout) • Account - What type of transaction it is.

9. SHORTCODES VS. CHARTFILEDS • What drives transactions in MPathways? • Chartfield – describes how the University will capture, accesses, and report its financial information. • By using a series of individual values which, in a sequence, describes a specific activity within the University. • Shortcode – is a six digit number that describes a specific chartfield relating to Payroll, a specific Servicing Unit, or Gift Processing. • Chartfield conversion example/handout. • The Shortcode is like a “word” and the Chartfield is like the “definition”. SHORTCODE = CHARTFIELD 237077 = 10000/953400/ADMIN/11000 • MPathways runs by the “definition” not the “word”.

10. QUESTIONS