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Accounting
Services Policies and Procedures
Section
22-00 Accounting Services
Overview
The Accounting Services
Office is responsible for recording, analyzing and reporting financial
transactions of the University. Accounting Services is also responsible
for recording and for reporting the financial transactions of the Georgia
State University Research Foundation and the Georgia State University
Athletic Foundation. In cooperation with the Budget Office, Accounting
Services monitors and coordinates the reporting of the relationship
between actual revenues and expenditures versus budgeted revenues and
expenditures. Accounting Services provides managerial reports
and serves as fiscal advisors to college administrative and business
officers as part of an ongoing customer service responsibility.
In addition, Accounting Services provides ongoing training and development
to college administrative officers and business officers throughout
the University.
The Office of Accounting
Services is responsible to the Comptroller for the general accounting
records, procedures as well as the preparation and interpretation of
financial records. Accounting Services is responsible for the
installation and administrative direction of general accounting records
and procedures, the preparation and interpretation of external financial
reports, and the preparation and interpretation of internal financial
reports concerning the University as a whole.
The Office of Accounting Services is responsible for the preparation,
content, maintenance, and control of the Georgia State University Chart
of Accounts. All requests for additions, deletions, or changes
to account names or numbers for all Funds except 10, 50 and 20 are submitted
to the Accounting Services Office; changes to Fund 10 or 50 are submitted
to the Budget Office, changes to FC 20 are submitted to Grants and contracts.
(See Procedure 42-30-13.1). Accounting Services is directly or
indirectly responsible for the accounting and reporting of the following
Fund Codes:
Fund Code
10 Resident Instruction Funds
Fund Code
12 Sponsored Projects Funds
Fund Code
14 Continuing Education Funds
Fund Code
20 Restricted Funds
Fund Code
30 Loan Funds
Fund Code
40 Endowment Funds
Fund Code
50 Unexpended Plant Funds
Fund Code
51 Renewal and Replacement Funds
Fund Code
52 Investment in Plant Funds
Fund Code
60 Agency Funds
Fund Code
93 Student Account Fee Funds
Fund Code
13 Student Activities Funds
Fund Code
96 Georgia State University Athletics Association
Fund
Code 98 Georgia State University Research Foundation,
Inc.
Accounting
Services Policies and Procedures
Policy
22-00-10.1
Fund Accounting
In
order to ensure observance of limitations and restrictions placed on
the use of the resources available to the University, the accounts of
the University are maintained in accordance with the principles of fund
accounting. This is the procedure by which resources for various
purposes are classified for accounting and reporting purposes into funds
that are in accordance with activities or objectives specified.
Within each fund group, the University's fund balance allocations
and designations represent those portions of the fund balances that
are reserved, restricted or designated for specific future use by legal
covenants, state policies, or institutional policies.
Fund groups and
funds used at Georgia State University are as follows:
Current Funds:
Unrestricted - the fund used to account for those economic resources
over which the University retains full control to use for purposes of
performing the primary functions of the University (i.e., instruction,
research, public service, auxiliary enterprises, and student activities).
Restricted - the
fund used to record externally restricted funds which may only be utilized
in accordance with the purposes established by their source. Restricted
current funds are recorded as revenues and expenditures when expended
for current operating purposes.
Loan Funds.
The fund used to account for resources which have been made available
for financial loans to students.
Endowment Funds.
The fund used to account for gifts that are subject to restrictions
by the donors requiring that the principal be invested in perpetuity
and income only be utilized.
Plant Funds:
Unexpended - the fund used to account for financial resources utilized
to acquire or to construct physical properties for institutional purposes.
Renewals and Replacements
- the fund used to account for resources set aside for the renewal and
replacement of institutional properties.
Investment in Plant
- the fund which shows the total amounts representing the book value
of all physical properties owned by the University. Net Investment in
Plant is an equity account showing the total book value of physical
properties belonging to the University less the amount of any indebtedness
to others.
Agency Funds.
The fund used to account for resources held by the University as custodian
or fiscal agent for individual students, faculty, staff members, and
organizations.
Policy
22-00-10.2
Chart of Accounts
The
Accounting Services Office as well as the Budget & Planning Office
share responsibility for the preparation, content, maintenance, and
control of the Georgia State University Chart of Accounts. Responsibility
for all accounts in Fund 10 and 50 lies with the Office of Budget and
Planning, responsibility for accounts in FC 20 lies with Grants and
Contracts, and responsibility for accounts in all other Funds lies with
Accounting Services.
Procedure 22-00-10.2P
Additions, Deletions, or Changes to Account
Names or Numbers
All requests for additions, deletions, or changes to account
names or numbers for all Funds except 10 and 50 are submitted to the
Assistant Comptroller in Accounting Services, while such changes to
Fund 10 or 50 are submitted to the Budget Director (see Procedure 42-30-13.1)
by memo or e-mail.
Policy 22-00-10.3
Segments of Chart of Accounts
The
spectrum system has a chart of accounts that is comprised of the fund,
Program, Organization, appropriation/Subclassification, Project, Account,
and Budget Year. In all, there are 35 characters in the Chart
of Accounts. The board of Regents has defined the fund, program,
appropriation/subclassification, and account fields for all institutions
in the University.
A complete listing
of all the values for each chartfield is included in the Exhibit section.
Fund: A fund is an entity with a self-balancing set of accounts
for recording assets, liabilities, fund balance, and changes in the
fund balance. Examples of the new funds include 10 for current
unrestricted funds, 20 for current restricted funds, and 13 for student
activities.
Program: the program code is the equivalent of the current function
code. Examples of the chartfield include 1110 for instruction,
1210 for research, 1310 for public service, 1410 for academic support,
and 1510 for student services.
Organization: The organization chartfield is the department number
or the cost and subcost centers. It is a 9-digit field.
Appropriation/subclass: The appropriation or subclassifion field
represents the type of funds that are either being received or expanded.
For example, general state funds are either being received or expended.
For example, general state funds are coded as 11000, special funding
initiative is coded as 13000, lottery funds are 14000, department sales
and services are 41001 and so on.
The project field has 5 characters and includes capital projects, sponsored
projects, continuing education projects, as well as contingency and
other miscellaneous university projects.
Account: the account chartfield is a 6-digit field for the object
code. It includes all asset (1xxxxx), liability (2xxxxx), fund
balance (3xxxxx), revenue (4xxxxx), personal service expenditures (5xxxxx),
travel (6xxxxx), supplies (7xxxxx), and equipment (8xxxxx) object codes.
Budget Year: this is a 4-digit field that represents the year from which
the funds are being expended or obligated. Generally, this
is the current fiscal year, as general funds from the state must be
expended or obligated within the same fiscal year for which the funds
are allocated.
Code Block: the string of chartfields that you now call an "account
number" in the legacy system is formally called the code block in the
new chart of accounts. It includes the account, fund, organization,
program, appropriation/subclassification, budget year, and project number,
in this order. In the new chart, account number refers to the
object code ( expense, revenue, asset, and liability), so using a term
such as a code block is less confusing when referring to the entire
string of chartfields.
SpeedType: The new chart of accounts has a total of 35 characters
(fund=2, program=4, organization=9, appropriation=5, account=6, project=5,
budget year=4). Instead of having toremember all 35 characters
for every trnsaction, we have incorporated a 5-character speedType.
Upon entering the speedType, the system will translate and automatically
fill in the predefined chartfields. You will only have to enter
the remaining chartfields to complete the transaction.
Policy 22-00-11.1
Internal Financial Reports
The
Accounting Services Office is responsible for the distribution of the
Monthly Financial Report to University administrators (Deans and Vice-presidents).
The report contains both financial and statistical data reported on
a cumulative basis as to projected revenue and expense, key financial
indicators, fiscal year-to-date enrollment for the University as a whole,
and selected financial statements for both the Georgia State University
Athletics Association and the Georgia State University Research Foundation.
Inquiries concerning
the activity reflected in the Monthly Financial Report should be directed
to the Accounting Services Office.
Policy 22-00-12.1
Journal Entries
Responsibility for
the approval and preparation of general journal entries resides ultimately
in the Accounting Services Office. Requests for general journal entries
"adjustments or corrections" should be made by memo or e-mail to the
Accounting Services Office.
Requests for general
journal entries should contain all pertinent details, such as the account
names and amounts submitted for adjustment or correction, the date and
reference numbers of the transaction(s) to be corrected (prior entries
correction), and the reason for making the correction. Requests for
general journal entries should not be submitted to correct an overdraft
situation, or to transfer funds between accounts which involve Accounts
Payable or Payroll transactions.
Overdraft situations
should be corrected not by general journal entries, but by a transfer
of cash to cover the deficit. The Disbursements Office should be notified
by memo of any accounts payable corrections which are necessary.
The memo should include the original account number charged, the amount
to be changed, the new account number to be charged and the reason for
the correction. The Human Resources Payroll Section should be
notified by memo of any necessary payroll corrections with an explanation
of the accounts affected, the corrected amounts and the reason for the
correction.
The Accounting Services
Office is responsible for the approval and preparation of intra-university
charges and credits necessitated by the provision of materials, supplies,
goods, or services of one department or unit of the University to another
department or unit of the University. Inquiries concerning direct
charges should be directed to the Accounting Services Office.
Policy 22-00-13.1
External Financial Reports
The
Accounting Services Office is responsible for the preparation and review
of external financial reports including:
1. Preparation
and publication of the Annual Financial Report of the University
2. Preparation
of monthly, quarterly, and annual financial reports to be forwarded
to the Board of Regents
3. Preparation
of monthly and quarterly financial reports to be forwarded to the State
Audit Department
4. Preparation
of Sales Tax Reports to be forwarded to the respective State Revenue
Departments
5. Preparation
or review of financial information to be forwarded to Federal Agencies
or Departments (excluding reporting on contracts or grants) when such
information is presented in the name of Georgia State University. Requests
for specialized financial reports and information about regular financial
reports should be addressed to the Accounting Services Office
Policy 22-00-14.1
Sales Tax
The
Accounting Services Office is responsible for ensuring that University
units which sell University goods to non-tax exempt individuals or organizations
collect sales tax and report the collection of such to the Accounting
Services Office. Generally, sales of goods for ultimate consumption
to individuals or profit oriented businesses must carry a four percent
charge for State of Georgia Sales Tax, which will be remitted to the
Georgia Sales Tax Unit. Additional taxes such as Local Option,
Special Option or Marta Tax may need to be added and should be determined
by the "point of delivery" of a taxable sales transaction.
University units
engaged in the sale of goods should be charging and collecting sales
tax based on the following formula:
Gross
Sales / 1.07%* = Net Sales
Gross Sales
- Net Sales = Sales Tax
Verification
of Sales Tax Due: Net Sales x (7%)* = Sales Tax
* The 1.07% example
above is based on the current applicable sales taxes for Fulton County.
If and when this tax rate changes, the new rate must be applied.
Sales made to customers outside of Fulton County should still be at
the Fulton count rate, since this is "point of delivery". Note:
Deposit remittance form should indicate applicable sales tax account
and amount of taxes (i.e. Sales Tax Account 215000-60-XXXXXXXXX).
Policy 22-00-15.1
Capitalization of Project Expenditures
The University shall
follow generally accepted accounting principles regarding capitalization
of projects at the University. The most important criteria of
whether or not a project should be capitalized includes responses to
such considerations as: (1) Is the project an addition of new square
footage? (2) Does alteration of existing space materially enhance
or increase the value of existing space? (3) Is life appreciably
extended by the expenditure; (4) Is the amount expended material?
And (5) is the primary purpose of the expenditure to restore an asset
to, or to maintain it at, its expected service life?
Policy 22-00-16.1
Departmental Sales Accounts
When
a University department provides goods or services to other University
departments or outside organizations on a regular basis (and in a non-sponsored
relationship), the cost of providing those goods or services may be
collected and deposited to a departmental sales account. The establishment
of a departmental sales account involves both the Budget Office and
the Accounting Services Office. A memo should be sent to both offices
explaining the purpose for the sales account and what type of sales
activity is involved so that the account can be established and properly
budgeted. Departmental sales accounts are considered general funds
and lapse at the end of the fiscal year on June 30 of each year if not
spent or obligated.
Note: Generally,
sales of goods for ultimate consumption to individuals or profit oriented
businesses must carry a four percent charge for State of Georgia Sales
Tax, which will be remitted to the Georgia Sales Tax Unit. Additional
taxes such as Local Option, Special Option or Marta Tax may need to
be added and should be determined by the "point of delivery" of a taxable
sales transaction.
Policy 22-00-17.1
Departmental Charge Card Purchases
Georgia
State University allows the purchase of miscellaneous items such as
paper, folders, binders, etc., from such organizations as the University
bookstore through the use of a departmental charge card (Green Card).
Requests for the use of a departmental charge card are made to the Accounting
Services Office which authorizes and prepares the departmental charge
card (see Appendix 20-1 for application). The department requesting
a departmental charge card should make a request by memo or e-mail to
the Accounting Services Office. The request should come from appropriate
personnel such as a department head or business manager. Individual
departments will have the responsibility to decide which persons within
their departments will be authorized to use the departmental charge
card. Items purchased with the charge card and charged to a sponsored
project must be allowable and in accordance with applicable guidelines.
Policy 22-00-18.1
Agency Funds (Overview)
Agency
funds are money held by the University acting as custodian or fiscal
agent. The money are entrusted to the University for safekeeping,
however, these money may be used or withdrawn by the depositor at will.
These funds may be held on behalf of students, faculty, staff, organizations,
or some other third party.
Policy 22-00-18.2
Establishment of Agency Funds Account
Departments,
organizational units, individuals, or groups may request the establishment
of an Agency Fund account by submitting an Agency Fund Agreement (Appendix
20-2) to the Accounting Services Office. The requester should
submit a separate memo providing details of the type of activities,
programs or operations supported by the account. It should also
indicate any specific restrictions, terms or conditions for the use
of the funds. The requester should attach copies of correspondence,
agreements, award letters or any other pertinent information which will
serve as a permanent file for the agency fund.
Policy 22-00-18.3
Agency Funds General Guidelines
A.
Deposits consisting of checks and cash shall be forwarded daily to the
University cashier. At no time shall these items be kept overnight by
the custodian unless the University Cashier is closed at the time of
receipt. The custodian shall insure that the correct account number
is used in making the deposit.
B. Deposits which are made by a non-negotiable instrument,
such as a fund transfer, must be fully documented by the initiator with
the other party immediately notified in writing as to the nature and
amount of the deposit.
C. All disbursement requests must be approved by the Agency
Fund Custodian and must include any and all appropriate supporting documents,
such as invoices, as well as instructions for the handling of the check
(i.e., mailing, pickup, etc.).
D. Allow approximately seven (7) working days for disbursement
processing after requests have been received by the Accounting Services
office.
E. Custodians shall have access to the specific fund activity
through the Spectrum System; therefore, no formal fund written reporting
will be done by the University to the custodian unless specifically
requested.
F. The
University does not assume responsibility for any obligation or activity
undertaken by the custodian or their assigns which has not been properly
communicated to the Accounting Services Office, or over which the Accounting
Services Office has not exercised its proper fiduciary responsibilities
and tasks.
G. The
University cannot process disbursements which are not handled in accordance
with the University's prescribed purchasing practices, including applicable
bid requirements and guidelines for allowable expenditures.
H. The
Custodian shall identify the source of funds to be utilized in covering
any possible financial shortfall of the activity. The University
cannot accept responsibility for financial shortfalls for agency activities.
I.
Funds established for a specific purpose, such as a field trip, will
be closed and accounted for at the completion of the activity and when
all known financial transactions have occurred. If no specific
short-term termination date is set within 60 days after the initiation
of the fund, the custodian will be notified to determine the time needed
to complete activities.
J.
The University agrees to continue in the capacity of fiscal agent for
those funds established on a long-term continual basis until such time
as the depositor shall request termination of this agreement.
A new agreement shall be necessary in the event of the change of the
custodian.
K. The
records of all agency funds shall be subject to review or audit by appropriate
University, State, or external auditors as necessary.
L. Agency
funds must maintain positive cash balances.
Policy 22-00-19.1
Closing Agency Fund Accounts
Funds
established with a specific purpose will be closed and accounted for
at the completion of the activity and when all known financial transactions
have occurred. The Accounting Services Office will periodically
review all agency fund accounts. If no short-term termination
date is set, the custodian will be notified sixty (60) days after the
fund's initiation that either a termination date should be set based
on estimated time needed to complete fund activities, or the fund should
be closed due to little or no activity.
Policy 22-00-20.1
General Guidelines for Establishment of Studies
Abroad Program
An
instructor (program director) who is interested in sponsoring a Studies
Abroad Program must first prepare a formal proposal. The proposal
must reflect all information related to the program including:
1. Title
of Studies Abroad Program
2.
Sponsoring College and Department
3.
Program director's name and title
4.
Goals and objectives of the program (including purpose)
5.
Program's relationship to Georgia State University's strategic plan
6.
Program's Relationship to Georgia State University department/major
7. Type
and number of credit/non-credit hours and contact hours, course title
and number, examples of course-related activities and excursions outside
the classroom and whether the course
is undergraduate or graduate
8. Projected number of students and faculty; Projected cost
to each student (tuition, matriculation, room and board, insurance,
etc.); Projected budget to include non-instructional and instructional
income and expenses assuming current exchange rate and amount and source
of faculty compensation
9. Countries
to be visited
10.
Travel, housing and security arrangements
11.
Faculty qualifications and means of recruitment
12.
Projected budget
13.
Pre-departure orientation
14.
Evaluation plan
15.
Affiliated or co-sponsoring international institution
Policy 22-00-20.2
Studies Abroad Program Approval Form
In
addition to the written proposal, two forms must be submitted in their
completed format. The "Studies Abroad Program Approval" form (Appendix
20-3a) must be completed and submitted to the following persons for
approval in the order listed below:
1. Program
Director
2. Department
Chair
3. Dean
of College
4. Director
of International Programs
5. Associate
Provost for Academic Programs
6. President
Furthermore, a "Projected
Budget" form (Appendix 20-3b) should be completed and should accompany
the formal proposal and Studies Abroad Approval form.
The approval form,
formal proposal, and projected budget should be submitted to the Office
of International Programs after completion. A copy of each of
these forms should then be forwarded to the Accounting Services Office.
Accounting Services assigns an agency account number and sends the number
to both the Program Director and the Director of International Programs.
Policy 22-00-20.3
Other Studies Abroad Program Guidelines
A. All expenses
are approved in the same manner as other disbursement requests.
B. Upon
request by the Program Director, Accounting Services will issue Departmental
Charge Cards. (See Appendix 20-1 for application form.)
C. All
Studies Abroad Agency Accounts will be closed within 18 months from
the beginning date of the program. Any residual funds remaining
in the Agency Fund account after 18 months will lapse.
D. In
accordance with Board of Regents Procedural Directive #26,
"it will be
necessary to transfer the tuition and fee portion, and any other instructional
component, to Resident Instruction Funds and account for the remainder
of Studies Abroad Program funds in Agency Funds."
E. One
month prior to scheduled account closing, Accounting Services will send
the Program Director a memo advising the Director of the remaining agency
fund balance and on what date the funds are scheduled to be transferred
to current funds (Fund Code 10) and subject to lapse.
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