Accounting Services

Financial Reporting

Setting up new Department, Object Code or G/L Account

1. Purpose
   The purpose of this Policy is to establish guidelines for the set up of general ledger account numbers.
   
2. Scope
   This procedure applies to the Office of Business and Finance personnel.
3. Procedure
   The general ledger account number is ten digits, X-X-XXXX-XXXX. The ten digits are divided into 4 different components. The components and size are as follows:
   
      Component #1 Fund 1 digit
      Component #2 Sub-Fund 1 digit
      Component #3 Department 4 digits
      Component #4 Object 4 digits
   
   The first component is the FUND definition:
      1. Unrestricted Fund
      2. Temporarily Restricted Fund
      3. Permanently Restricted Fund (Endowment)
      4. Life Income and Annuity Fund
      5. Plant Fund
      6. Perkins Loan Fund
   
   The second component is the SUB-FUND definition:
       1. Current Funds - unrestricted
       2. Current Funds - restricted
       3. Endowment and similar funds
       4. Life Income and Annuity funds
       5. Plant Funds
       6. Loan Funds
   
   The third component is the department code and the fourth component is the object code.
   
   Please check in AS400 to see if the account already exists; to check, go to command line and type in GL100 and hit Enter. Type in general ledger number with no dashes and hit Enter. If no record appears, then proceed with next step.
   
   To add a general ledger account number in AS400, type GL019 on the command line and hit enter. Type the new account number in and hit enter. The description, account type and budget percents should default. If not, refer to screen shot from AS400 below as an example on how the budget percents are to be allocated.
   
   
   
   The Summarize Detail Field will usually be N for no. The only time summarized is when there is a large amount of transactions that flow through the account. An example of this is the AR account, 1-1-1075-1015.
   
   The fund balance account number is critical to the overall accounting system and for generating financial statements. The number to be used in this field relates to the fund number. The corresponding accounts are below:
   
   

   Fund	Fund Balance Account #
   1	1-1-3100-3000
   2	2-2-3300-3000
   3	3-3-3400-3000

   
   The 990 identifier is the first number of the account you are setting up. This field is used by the College to transition from the old fund accounting to the SFAS 117 format. The old account number field is the 0ther 9 digits of the account you are setting up. Once all fields have been entered hit F1 0 to accept.
   
   The second step to set up the account is to assign it to a cell. At the prompt type GL016 and hit enter. The cell number is used to reference where the account falls within the financial statements, see below for a list of cell numbers. The cell number can also be obtained from the GL Accounts notebook.
   
   

   5105 - Instruction	5125 - Operation & Maintenance of Plant
   5110 - Public Service	5130 -Institutional Support
   5115 - Academic Support	5140 - Student Aid
   5120 - Student Services

   
   The cell number applies to the whole department. Hit F11 and choose the appropriate cell number with a 1. Hit enter to choose the cell number and page down until the end of the list of accounts for the cell and then add the new account and hit enter. The description should appear, hit F1 0 to accept.
   
   The records added in GL019 and GL016 should always match. To determine if they do type RQ BUAGRELO(zero at end) on the command line, then hit enter, enter, type "b" and enter to go to the bottom. Write down the total number of records. F3 to exit. Then type RQ BUBLRELO(zero at end) on the command line and follow the same steps as above. If the two numbers don't match do a print screen when you are looking at the total number of records for each command above and see where they are different.
   
   To set up the 3rd component:
   Type GL006 on the command line and hit enter. New departments will usually be requested by the Budget Director.
   
   To set up the 4th component:
   Type GL007 on the command line and hit enter. Hit F11 to add and fill in the code. This is done for adding new 2100 accounts or a new object account. To determine the 4 digit code look in GLCTL1 under the general ledger option and see what is available.
   
   To add a project code:
   Choose option 2 for the general ledger, 7 to work with projects and 5 for project definition. Page down; add the code, and description. Next chose option 6 for the project master. Add the code and the 4th component associated with this code. For example physical plant use 6602.
4. Responsibilities
   The Vice President for Business and Finance is responsible for overall administration of this policy. The Director of Accounting is responsible for setting up new accounts within established guidelines.

Setting up new Restricted or Endowed Fund

1. Purpose
   The purpose of this Policy is to establish guidelines for the set up of a new restricted
   or endowed Fund.
2. Scope
   This procedure applies to the Business Office personnel.
3. Procedure
   To add a new Fund account, you must do the following. First, you need to find the first available fund account number, which will be 2-2-3300-xxxx which applies to TR (temporarily restricted) Funds. Endowed Funds reflect 3-3-3400-xxxx (PR Permanently Restricted Funds). To do this, type in GL016 at the prompt, Enter. Hit F11 key (change). Type in either cell number 3215 for temporarily restricted accounts, or 3320 for restricted accounts and Enter. Tab down beside the cell number you want and put a "1" to select it, then Enter, Enter. Page down until you see the 2-2-3300-xxxx account number and write down the next available one. Hit F12 to exit screen.
   
   To establish the account number, type in GL019, Enter. Type in the account number and hit Enter. Type in the description (there may be a description there as default, but you can type over it). Summarize detail is usually "N" for No. You don't need a fund balance account number. The 990 identifier is the 1t digit of the account number and the old account number is the last nine digits. Hit F1 0 to accept.
   
   Next, type in GL016 and hit Enter. Hit F11 key to add the account number. Type in cell number XXXX and hit Enter. Tab down to the cell number that you want and place a "1" to select it, then Enter, Enter. Page down until you get to the end of the list. Tab down and enter the new account number; hit Enter and the description should come up. Hit F1 0 to accept.
   
   Remember to check to make sure GL019 and GL016 always have the same number of records. At the prompt, type in RQ BUAGRELO(zero at end). Look at the number of records by hitting Enter and B for "bottom". Type F3 to Exit. Next, type RQ BUBLRELO(zero at end) to make sure it has the same number of records by hitting Enter and type B for "bottom".
   
   All temporarily restricted fund accounts go to cell number 3215.
   All restricted funds accounts (Endowed) got 0 cell number 3320.
   
   The folio number is the last eight digits of the fund account number.
   
   The cash account is 1-1-1001-1003.
   
   Regarding the Revenue account (For TR or Temporarily Restricted Funds):
      For annual gifts, the revenue account number is 2-2-4400-4404.
      For non-annual gifts, the revenue account number is 2-2-4400-4406.
   
   Whenever you use the revenue accounts, MAKE SURE the corresponding folio number is written with the account number so it can be keyed in the computer correctly. If the gift is for a special campaign that Development is doing, they will let you know which one it is so it will get put into the correct bucket! There should already be a revenue account number set up for those (example: 2-2-4300-4341 is the Sesquicentennial - Program Support).
   
   You will however, need to set up the Department code, which is GL006. At the prompt, type in GL006, and hit Enter. Hit F11 key to add department. Type in code, which is the 97XX number and the description of the account. The account type will be "E" for expense, summarize is "N" for No. The Fund balance account can be found in your GL notebook (refer to similar accounts). Enter the 990 identifier and the old account number.
   
   Regarding the Expense account, the account number will be 1-2-97xx-xxxx. The XX after the "97" will be the last two digits of the fund account number. The last four digits will be whichever object code you need (example Supplies - 6051, Postage - 6001, etc). These can be entered as needed.
   
   Also, when you add these new Departments, you will need to select a cell number for them. You will need to read the documentation that comes with the gift and decide which cell it is applicable to. As an example, Potomac-VWIL Scholarship, the cell number would be 5140, Scholarships and Fellowships.
   
   
   
   
4. Responsibilities
   The Director of Accounting is responsible for overall administration of this procedure.
   The Director of Accounting is also responsible for setting up new accounts within established guidelines.

Month End Closing Schedule

Petty Cash Policy/Procedures

1. Purpose
   The purpose of this Policy is to establish guidelines for the proper use of petty cash funds.
2. Scope
   This policy applies to all of the petty cash funds at Mary Baldwin College.
3. Policy
   The purpose of a petty cash fund is to cover nominal and emergency disbursements when a purchase order or requisition is impractical. To set up a petty cash fund a letter must be sent to the Director of Accounting - Business Office stating the department that the fund belongs to, the custodian's name, the amount requested, the physical location of the fund, and the purpose of the fund. Upon approval of the fund, Sue Armstrong, AP Administrator Business Office will issue a check payable to the custodian. The custodian will have to sign to show receipt of the check, and therefore establishment of the fund. The fund is to be kept in a secured location at all times. The Business Office reserves the right to conduct a surprise audit at any time.
   
   The cash on hand plus paid receipts must equal the original amount of the fund at all times. The fund may not be used for wages, services, equipment, cash advances, loans, the cashing of personal checks, travel expenses, or payments to students on their accounts. A prenumbered petty cash voucher is to be filled out for each transaction. The transaction must not exceed $50. Reimbursements may not be split into two different vouchers. If the amount requested is greater than $50, then a request must be sent to the Accounts Payable Department, attention Sue Armstrong. The voucher must include the date, the person receiving the cash, description of the purchase, initials of the custodian to indicate approval, and the signature of the one receiving the cash. The voucher must then be attached to a paid receipt. The custodian must determine if the transaction meets the requirements as set forth in the petty cash policy.
   
   To replenish the fund a Petty Cash Summary Sheet must be submitted along with the vouchers and the receipts to the Business Office, attention Sue Armstrong. Any voided vouchers must be noted on the summary sheet, refer to Exhibit A (PDF below). The Business Office will then verify all vouchers and receipts and issue a check payable to the petty cash custodian. All petty cash funds must be replenished by June 30th to ensure expenses are recorded in the fiscal year. The Business Office must be notified of any cash overage/shortage issues.
   
   The Director of Accounting - Business Office must be notified of any changes in petty cash custodians. All vouchers must be turned in and the fund replenished before the new custodian takes over. The new custodian will verify the balance in the fund when it is turned over to them.
   
   Violation of the policy may result in the cancellation of the petty cash fund.
4. Responsibilities
   The Vice President for Business and Finance is responsible for the overall administration of this policy. Petty cash custodians are responsible for complying with this policy.

Exhibit A: Petty Cash Request Form (PDF)