News

New Accounting Reports for General Fund Self-Support Cost Centers

This message is to communicate an accounting change for the University’s General Fund self-supporting accounts (also known as "NAI", "Non-allocation income", or "Fund 17" accounts) for FY04.

As you may be aware, determining the current balance of these accounts has required a calculation derived from selected figures on your monthly budget summary reports (AC0513CP). The prior year carry forward balance was noted each year as a budget item in revenue object code 9805. This amount, plus the YTD revenue, less the YTD expenses, less any YTD amount in object code 9001 Accrued Revenue, totaled the "cash" balance. An additional calculation to deduct the outstanding encumbrances would then result in the uncommitted cash balance available.

The AC0513CP report design is particularly well-suited for those General Fund cost centers whose spending authority is based on the University’s budget allocation; in contrast, the self-supporting accounts utilize budget figures for annual revenue and spending plans, but managers also require information regarding the cash balance that carries forward from fiscal year to fiscal year.

To address these issues, we have assigned separate general ledger accounts for the self-supporting cost centers and have transferred the FY03 ending cash balances into these new general ledger accounts. This will make it easier for you to identify the available balance in each of your self-supporting cost centers.

There will be some effects of this change of which you should be aware:

1. There will no longer be a budget item listed for the prior year carry forward balance in revenue object code 9805.
2. There will be an entry listed in FY04 only under transfer revenue object code 9803 for the prior year carry forward balance from FY03.
3. You will begin receiving a general ledger summary report (AC0542CP report) each month that more clearly reports your current account balance. The cautionary note on this report is to be aware that your bottom-line balance will still include any uncollected receivables (in object code 9001 Accrued Revenue), but it will also reflect the deduction for your outstanding encumbrances without needing an additional calculation.
4. The AC0513CP Fiscal Year Budget Summary report will continue to be useful to you as a tool to monitor actual activity vs. your annual revenue and spending plan. It will not, however, be used to report your cumulative account balance; this information will be found now on the General Ledger Summary Report (AC0542CP).
5. You will also be able to quickly check your account balances on the ISRS G/L Accounting query screen, "Current G/L Account Balances (AC0460UG)." You will need to enter your general ledger account number, which has been created to be the same as your cost center number except that you replace the first digit with a zero (e.g., the cost center number 210814 would have 010814 as its general ledger account number). This screen will show you your current cash balance, current accounts receivable balance, other temporary asset and liability amounts that affect cash, and total outstanding encumbrances. This query screen can be accessed at any time for an up-to-the minute glance at your account status.

As with any change, there will be some adjustments to be encountered, but we are optimistic that the benefits to tracking the cash for each self-supporting account on a more individualized basis will result in improved service to you as account managers. Please contact me if you wish to discuss specific information regarding your accounts as we make this transition.