Agenda

1. Expense Account Codesfor: Admin ForumApril 5, 2012 Kim Seamans, Financial Reporting Accountantkseamans@uncc.edu, 7-5752Laura Demski, Compliance Managerldemski@uncc.edu, 7-5002

2. Agenda • Introductions • Understanding the Importance of Using the Correct Accounts • Resources Available • Examples/FAQs

3. Introductions • Share with the group who you are and what role you play: • Name • Department • How long in position/with University • What do you hope to learn?

4. Reporting – External and Internal • Financial Statements • Contributors (NCAA, Other Organizations) • Regulators (Budget Preparation) • Management • If expenses are not coded correctly, decisions are made using bad information.

5. Revisions • FY 2011 clean-up of Chart of Accounts, including listing, descriptions, and FAQs • http://finance.uncc.edu/controllers-office/general-accounting • Additional Q&A is being compiled, and more examples will be added to the descriptions • Notification will be given when significant updates are made.

6. Which Account is Right for Me? • Avoid using “Other” or “Miscellaneous” accounts for recurring expenses. • Use the resources on the General Accounting Website. http://finance.uncc.edu/controllers-office/general-accounting • If you do not see a description that fits your situation, ask! We may need to revise an account description, or create • a new one.

7. Which Account is Right for Me? • Not an Exact Science • No “Right” answers, just Better and more consistent answers • Goal is for consistency across campus • Internal Audit will assess levels of consistency • Consult Reporting and Fixed Assets Department for Account Code use

8. When We Field Questions • The resources we look to and the process that occurs when you ask us an account question: • Chart of Accounts for North Carolina Accounting System (NCAS) (State-wide system). • Our Banner accounts are linked to these accounts. • UNC System Chart of Accounts http://www.northcarolina.edu/finance/chart_accounts/COA-REVISED_11.21.2011.pdf • Our internal documents

9. Food Costs • Meals while Traveling go to Subsistence • Food for Resale has its own account • Contracted – catering (ex: Chartwells) • Food Supplies account is for unprepared food and beverages purchased for trainings, meetings, etc. • (ex: Bread, meats, cheese, etc.) • Administrative Meals = Other • not for resale • non-travel • prepared food

10. Equipment • Capital vs. Non-capital • Different Capitalization Thresholds • $5,000 Equipment • $100,000 Software • Shipping, set-up, etc. • Include in cost of item purchased. • Allocate if multiple items purchased with one shipping charge.

11. 49er Mart Purchases • Make sure you include adequate DETAIL for the reviewer to ensure correct accounting. • Full description of item/services • Itemized documentation of goods/services • Reason/purpose for the purchase • Don’t lump total costs if separable items and services are being purchased.

12. Service vs. Maintenance • Maintenance Contracts/Service Agreements – ongoing support for property. Usually there is an agreement of 1 year or longer. • Repair & Maintenance account – one-time or short-term repairs to property. • Both parts and labor should be coded to this expense account. • Contracted Services – contracts/agreements other than maintenance (professional and consultative personal services).

13. FAQ Excerpts • 4. I am purchasing software to be used exclusively in the classroom. Should this be classified in account: • 930250 Educational Supplies • 944090 Other Educational Equip Non-Cap, or • 942050 Software-PC/Printer Non-Cap? • The expense account used should describe what is being purchased, not why. • We want to record all software being purchased as “software,” regardless of intended use, e.g., in a classroom or office. • The fund number will indicate the function supported by the expenditure, e.g., administrative, instructional, research. • Therefore, the best account to use here is • 942050 Software PC/Printer Non-Cap.

14. FAQ Excerpts • 10. • What expenses should be recorded using account 930250 Educational Supplies? • For “purchase of materials and supplies used exclusively for instructional and training purposes” (OSC 533720). • Only when a more specific account does not exist. • Examples: • Exam/testing kits • Educational videos to be watched in class • Teacher’s edition books • Examples of items NOT to record to Educational Supplies: • Paper (Office Supplies) • Educational software (Capital Equipment - Software) • Chemicals (Lab Supplies)

15. FAQ Excerpts • 28. • What is the difference between accounts 951760 and 920700? • Account 951760 Other Current Services: • For administrative services • That cannot be more specifically categorized • Account 920700 Other Contracted Services: • For contracted services • That cannot be more specifically categorized in other Contracted Services accounts

16. Examples of Inconsistencies

17. Q&A Open discussion for any other expense account questions you have!

18. Website

19. Thank you!