Accounting Basics for FIS Users

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Accounting Basics for FIS Users
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Accounting Basics for FIS users
Overview

• Types of Accounts
• Basic Account Structure
• Budget Transfers
• Journal Entries
• Inter-fund Transfers
• Miscellaneous

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Accounting Basics for FIS users
Section 1 Types of Accounts
There are 3 main types of accounts

• Operating Accounts (Departmental)
• Trust Accounts
• Grant Accounts

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Accounting Basics for FIS users
Operating Accounts

• These are your Business Unit accounts
• They are 5 digits long and start with either a
  1 or a 2 eg. Dept A - 19250
• They are funded through the Universitys central
  operating budget, administered by the Budget
  Process and the Budget Committee, and approved by
  the Board of Governors.
• The Budget is allocated to various object
  accounts such as general office supplies, travel,
  equipment, and repairs

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Accounting Basics for FIS users
Trust Accounts

• These accounts are set up for specific purposes
  or functions such as Scholarships or conferences
• They are 5 digits long and start with either a
  6 or a 7
• They are funded through various outside sources
  ie private donations, government grants, or
  registration fees (conferences)
• There are 2 main types of Trust accounts
• Endowment Accounts (Interest Earning)
• Expendable Accounts (No Interest earned)

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Accounting Basics for FIS users
Trust Accounts-Endowment

• Typically funded by an individual or group of
  individuals for a very specific purpose ie.
  Scholarship
• These accounts begin with a 6
• The initial investment is deposited and remains
  unspent unless the Endowment is to be closed out.
  These accounts have specific terms of reference
  that must be followed and expenses are not
  allowed to be posted to them.
• Interest earned is calculated at year-end with a
  maximum of 6 transferred to an Expendable trust.
  This account will start with a 7 and has the
  same last four digits as the Endowment. Interest
  earned over 6 is returned to the Endowment.

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Accounting Basics for FIS users
Trust Accounts-Expendable

• Funded by the interest from their respective
  Endowment Accounts, Government funding, or from
  private donations that have not been earmarked as
  an Endowment.
• These accounts begin with a 7
• Payments for scholarships, supplies, salaries etc
  can be made from these accounts
• These accounts do not have budgets. Expenses are
  limited to funds available.

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Accounting Basics for FIS users
Grant Accounts

• Grant accounts are 5 or 6 digits long and start
  with an 8
• They are funded from external granting agencies
  such as NSERC or SSHRC, or internally funded
  (start up grants)
• Grantee is responsible to ensure that
  expenditures meet the funding agencys
  guidelines. Any non-compliance with these
  guidelines may result in loss of future funding
  to the grantee and the University as a whole.
• Any over-expenditure of the grant is the sole
  responsibility of the grantee
• Any grant account may be audited by the funding
  source at any time
• Additional financial assistance may be available
  from the Research Grants Department of Finance

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Accounting Basics for FIS users
Section 2 - Basic Account Structure
19250.8560

• Made up of the following components
• Business Unit 19250 Dept A
• Object Account 8560 Special Projects
• When entering data in the System, you must
  always have a Business Unit and an Object Account
  as well as a . separating the two.
• Please see the attached FIS QUICK FACTS Sheet
  for easy reference

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Accounting Basics for FIS users
Basic Account Structure
19250.8560.1

• A Sub-object is another level of detail that is
  sometimes added to a particular Object. In the
  above example, the Business Unit is Dept A. The
  Object account is Special Projects and the
  Sub-Object could be for System Upgrade.
• The use of the Sub-Object further clarifies what
  the object is being used for and makes tracking
  of these expenses easy to identify.

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Accounting Basics for FIS users
Budget Transfers
When do I do a budget transfer?

• Budget transfers are used to move budget monies
  from one account to another in order to
  facilitate spending
• Budget amounts can be Base meaning that these
  amounts are given to your Business Units on an
  annual basis or One Time which means the funds
  are only given once and for a specific purpose
  identified in the budget process.

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Accounting Basics for FIS users
Budget Transfer General Rules

• The most important thing to remember is to put
  the expense where it belongs. Finance relies on
  historical information to help us make decisions
  regarding Budget Submission approvals and to
  forecast future costs to the University. This
  adds to the integrity of the data.
• Our auditors use this information as well, to
  determine what areas need further focus at year-
  end

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Accounting Basics for FIS users
Section 3 Budget Transfers

• Budget transfers are done via a number of
  document types. Each of the codes are designed
  to allow the user to easily identify what kind of
  budget transfer users are looking at.
• The most common are as follows
• BO a basic budget transfer used for one time
  transfers between accounts
• BB a Base Budget transfer used to transfer base
  budget funds on a permanent basis.

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Accounting Basics for FIS users
Budget Transfers General Rules

• You give the money to the account that needs it
  to cover the spending and take away money from
  the account you have the funds in.
• You want to move money from Miscellaneous to the
  Equipment budget you would
• DEBIT (to) 11130.8860
• CREDIT (from) 11130.8550

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Accounting Basics for FIS users
Budget Transfer Example 1
You are finally getting that new desk and chair
you have always wanted! You dont have any money
in your Furniture account, but you have lots in
the Misc account.

• The actual cost of the Furniture needs to be
  charged to the account that best reflects the
  nature of the purchase.
• As you have funds in Misc and have no budget in
  Furniture, does not mean that this is where you
  should charge the purchase order.
• The budget transfer will be as follows

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Accounting Basics for FIS users
Budget transfer Example 1
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Accounting Basics for FIS users
Budget Transfer Example 2
As your department has plans to use another
depts new machine, you have decided to give
them some money to help pay for it.

• The actual cost of the Machine needs to be
  charged to the Business unit that has the
  ultimate control over the asset.
• The purchase order will be made out to the other
  Business Unit ONLY. Your accounts will not be
  charged for part of the purchase.
• The budget transfer will be as follows

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Accounting Basics for FIS users
Budget Transfer Example 2
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Accounting Basics for FIS users
Section 4 - Journal Entries
When do I do a Journal Entry?

• Journal Entries are completed when expenses have
  been incorrectly charged to an object account or
  cost centre or when you are doing internal
  transfers
• Keep in mind that you want to ensure that
  charges are made to where they most accurately
  reflect the nature of the expense.
• The following examples are provided.

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Accounting Basics for FIS users
Journal EntriesExample 1
Your new desk and chair have come in and at
month-end you look at the Furniture account for
the charges. You discover they were charged to
Miscellaneous in error.

• The actual cost of the Furniture needs to be
  charged to the account that best reflects the
  nature of the purchase.
• A journal entry needs to be made that will move
  the expense from your Miscellaneous account
  (credit) to your Furniture account (debit).
• The journal entry will be as follows

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Accounting Basics for FIS users
Journal Entry Example 1
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Accounting Basics for FIS users
Journal EntriesExample 2
An order for office supplies has come in and you
assign object account 8550 to the invoice.

• The actual cost of the Office supplies needs to
  be charged to the account that best reflects the
  nature of the purchase.
• A journal entry needs to be made that will move
  the expense from your Miscellaneous account
  (credit) to your Office Supplies account (debit).
  
• The journal entry will be as follows

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Accounting Basics for FIS users
Journal Entry Example 2
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Accounting Basics for FIS users
Section 5 - Interfund Transfers
These are transfers that occur between Operating,
Trust, and Grant accounts.

• Accounting needs to properly report all dollars
  moved from one type of fund to another

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Accounting Basics for FIS users
Interfund Transfers

• To ensure proper accounting and reporting of
  these transfers, a series of objects have been
  setup to transfer funds.
• These objects are found in your accounts
• 8975.1 Transfer to Operating
• 8975.6 Transfer to Trust Fund
• 8975.8 Transfer to Research Grants

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Accounting Basics for FIS users
Interfund Transfers

• There are offsetting revenue objects to
  accurately track these transfers.
• 5901 Rev-Internal from Trans-Operating
• 5902 Rev-Internal from Trans-Grants
• 5903 Rev-Internal from Trans-Trust Acct

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Accounting Basics for FIS users
Interfund Transfers Operating to Trust
HRG has a trust account XXXXX setup for a special
Speaker series and you have promised them 500
to help pay for this.

• This transfer will be from your operating account
  to a trust account.
• You have funds available in your miscellaneous
  account to pay for this.
• The budget transfer will be as follows

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Accounting Basics for FIS users
Interfund Transfers Operating to Trust
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Accounting Basics for FIS users
Interfund Transfers Operating to Trust

• We have now moved the budget funds from our
  Miscellaneous account to the Transfer to Trust
  account.
• The Transfer to accounts must always balance
• Now that we have done our Budget transfer, we
  have to have a balancing Journal entry to
  physically move the funds from our Operating to
  the Trust account. The trust account records
  this as revenue, and the operating account
  records this as an expense.
• The journal entry will be as follows

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Accounting Basics for FIS users
Internal Transfers Operating to Trust
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Accounting Basics for FIS users
Internal Transfers-Operating to Grant
Prof Doe has a grant account that he is using to
help fund a research project. Your department
has decided to pay for some equipment he will
need to purchase.

• The transfer will be from your operating account
  to the grant account.
• You have funds available in your miscellaneous
  budget to pay for this.
• The budget transfer will be as follows.

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Accounting Basics for FIS users
Internal Transfers-Operating to Grant
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Accounting Basics for FIS users
Interfund Transfers Operating to Grant

• We have now moved the budget funds from our
  Miscellaneous account to the Transfer to Grant
  account.
• The Transfer to accounts must always balance
• Now that we have done our Budget transfer, we
  have to have a balancing Journal entry to
  physically move the funds from our Operating to
  the Grant account. The grant account records
  this as revenue, and the operating account
  records this as an expense.
• The journal entry will be as follows

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Accounting Basics for FIS users
Internal Transfers-Operating to Grant
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Accounting Basics for FIS users
Section 6 -Miscellaneous

• The Budget Department is staffed as follows
• David Butcher Director, Budgets x2130
• Cathy Evanyk Budget Associate x2130
• David Smith Budget Analyst x2082
• Stephanie McMahon Budget Analyst x2022
• Leanna Prior Budget Analyst x2021
• For further information, please visit our Budget
  website at
• www.uwindsor.ca/budgets

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Accounting Basics for FIS users
Miscellaneous Other Financial Issues

• If you have questions relating to FIS such as
  getting Security on accounts or training for
  staff members, please contact
• Sandy Mehenka, Systems x2143

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Accounting Basics for FIS users
Miscellaneous Other Financial Issues

• Any Grant related questions should be forwarded
  to
• -Chris Busch, Supervisor, Grant Accounting
  X2127
• -Donna Bergamin-Grant Accountant X2132
• (CFI,OIT,Sharc-Net,HRDC)
• -Kathy McGorman-Grant Accountant X2129
• (SSHRC/NSERC/CIHR Grants, Start up Grants)
• Visit the Grants website at www.uwindsor.ca/fina
  nce
• and then click on the Research Grants flyout on
  the left.

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Accounting Basics for FIS users
Other Questions?