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Accounting Office

West Vandenberg Hall, Room 121
502 Meadow Brook Road
Rochester, MI 48309-4452
(location map)
(248) 370-2447
Fax: (248) 370-2554

Accounting Office

West Vandenberg Hall, Room 121
502 Meadow Brook Road
Rochester, MI 48309-4452
(location map)
(248) 370-2447
Fax: (248) 370-2554

Chart of Accounts

Financial management within Oakland University is accomplished through financial records that are maintained in accordance with fund accounting principles. In fund accounting, activities for various purposes are classified in accordance with regulations, restrictions or limitations imposed by sources outside the University or in accordance with directions issued by the Board of Trustees.

Funds are resources established to support defined activities. The University's various organizational units are assigned stewardship responsibility for management of the various funds. They do this by recording the financial activity of each fund. Financial activity is recorded through accounts such as revenue and expenditure accounts.

Visit oakland.edu/accounting/BannerFinance/ for a complete list of fund descriptions.
Banner Finance Chart of Accounts
Overview

The Banner Finance chart of account structure is designed to implement fund accounting principles. The chart of account elements in Banner Finance are fund, organization, account, program, activity and location. The chart of account elements are sometimes called the "FOAPAL" string or simply the "FOAPAL".

  • The fund code is the designation for a resource group and has a self-balancing set of accounts. Transactions are segregated and recorded in funds to carry on specific activities or attain certain objectives in accordance with prevailing regulations, restrictions or limitations. Fund codes are established within the fund "categories" described above. Examples of fund codes are: 50000 - "ABC" Student Loan Fund and 60000 - "XYZ" Endowment Fund.
  • The organization code is the designation for operating entities of the University. Examples of organization codes are: 2154 - Division of Academic Affairs and 0090 - School of Nursing.
  • The account code is the designation for individual asset, liability, fund balance, revenue, expenditure and transfer classifications. Examples of account codes are: X030 - gifts and C002 - Faculty Salary.
  • The program code is the designation for functional grouping of activities. Examples of program codes are: 2000 - Instruction and 2400 - Student Services.
  • The activity code is the designation for temporary units of work, subsidiary functional classifications, or short duration projects. The activity code is presently not being used by the University.
  • The location code is the designation for physical places or sites. This is primarily used for tracking the location of University equipment. Examples of location codes are: DH011A - Dodge Hall Room 011A and GH002B - Graham Health Center Room 002B.
Ledgers

In Banner Finance, financial activity is recorded in four ledgers: the general ledger, operating ledger, encumbrance ledger and grant ledger.

  • The general ledger contains all balance sheet accounts. These are assets, liabilities, fund balance and revenue, expenditure and transfer control accounts. The control accounts are part of total fund balance. The required FOAPAL elements for financial transactions recorded in the general ledger are fund and account.
  • The operating ledger contains all revenue, expenditure and transfer accounts. Budget, actual and encumbrance activity is recorded in the operating ledger (encumbrance activity is also recorded in the encumbrance ledger). The operating ledger is linked to the general ledger. For example, revenue accounts in the operating ledger are linked to the revenue control accounts in the general ledger. A similar linkage exists for expenditure and transfer accounts. The required FOAPAL elements for financial transactions recorded in the operating ledger are fund, organization, account and program.
  • The encumbrance ledger contains all encumbrance activity detail. The required FOAPAL elements for financial transactions recorded in the encumbrance ledger are fund, organization, account and program.
  • The grant ledger contains all revenue, expenditure and transfer activity for grants maintained on a grant inception to date basis. The benefit of the grants ledger is that financial activity can be accumulated for grant periods rather than fiscal years as is done in the operating ledger. The required FOAPAL elements for financial transactions recorded in the grant ledger are fund, organization, account and program.
Each of the Banner Finance chart of account elements has a hierarchy associated with it. For example, there are five levels of fund hierarchy. The levels permit the definition of groupings for aggregation of financial data. This enables financial information to be aggregated at any of the available levels for analysis or reporting.
Funds

Funds (resource groups or pools) are established to represent meaningful categorizations of University activities expressed in financial terms. A fund's accounting activities may be recorded in any of the following types of accounts: asset, liability, fund balance, revenue, expenditure or transfer.

Fund activity can be recorded in any of the four Banner Finance ledgers described above.

A fund's general ledger account activity (namely, activity in asset, liability and fund balance control accounts) is summarized in a fund's balance sheet. A balance sheet is a type of financial statement. As indicated above, a fund is a resource pool with self-balancing set of accounts. This means that the total of a fund's assets equals the sum of its liabilities and fund balance.

This relationship may be reviewed on the following forms: FGITBSR and FGITBAL. A fund's balance sheet may also be reviewed by using the FGRBLSH Balance Sheet Report.

A fund's operating ledger account activity is summarized in a financial statement called a statement of revenues, expenditures and transfers. This statement is also often referred to as an income statement. As noted above, all operating ledger account activity (namely, activity in revenue, expenditure and transfer accounts) is linked to fund balance control accounts in the general ledger. This means that all financial transactions that are posted in the operating ledger are also posted simultaneously to the general ledger fund balance control accounts. In Banner Finance, a fund's income statement can be reviewed on the following forms: FGIBDST, FGIBSUM and FGIBDSR. A fund's income statement can also be reviewed by using the FGRBDSC Budget Status Report.

If a fund has been established to account for a grant, the fund's financial activity is also accumulated in the grant ledger. This enables tracking of grant activity on an inception to date basis. In Banner Finance, inception to date reporting can be reviewed on the FRIGITD form.

Fund Codes

The University uses five digit numeric codes for all data enterable funds. The first digit identifies the "category" to which the fund belongs as follows:

  • 1xxxx General Fund
  • 2xxxx Designated Fund
  • 3xxxx Expendable Restricted Fund
  • 4xxxx Auxiliary Activities Fund
  • 5xxxx Loan Fund
  • 6xxxx Endowment Fund
  • 7xxxx Plant Fund
  • 8xxxx Retirement and Insurance Fund
  • 9xxxx Agency Fund

Non data enterable fund numbers are also used to group funds together in meaningful ways. The fund groupings provide a mechanism to aggregate financial information contained within the separate underlying funds. Non data enterable fund numbers are four digits as follows:

  • Gxxx General Fund
  • Dxxx Designated Fund
  • Rxxx Expendable Restricted Fund
  • Axxx Auxiliary Activities Fund
  • Lxxx Loan Fund
  • Exxx Endowment Fund
  • Pxxx Plant Fund
  • RExx Retirement and Insurance Fund
  • Yxxx Agency Fund

Within Banner Finance, there are five hierarchical levels for funds. An example follows:

  • Level 1 D100 Designated Fund
  • Level 2 D110 Departmental Funds
  • Level 3 D260 Education & Human Services
  • Level 4 21659 SEHS Resource Center
  • Level 4 21699 Adult Career Counseling Lab
  • Level 5 Reserved for future use

The Fund Hierarchy Report, FGRFNDH, is available to all Banner Finance users and provides detailed fund hierarchy information.

Organizations

Organization codes are established to represent operating entities/units of the University.

When a fund's revenue, expenditure and transfer activity is recorded in the operating ledger, the University unit associated with the fund is automatically recorded by use of the organization code (Banner Finance is configured to record organization codes by default when fund codes are entered). This enables a unit to monitor the operating ledger activity for any of its funds. For example, the University unit associated with the SEHS Resource Center, fund code 21659, is the School of Education & Human Services, organization code 0040. All operating ledger transactions for the Resource Center will include the organization code 0040.

Separate from the organization code, Banner Finance provides a financial manager code for identifying persons or units who are assigned ledger/bookkeeping responsibilities and authority for organizations and funds.

In most instances, financial managers reside within the organizational unit associated with each fund. There are exceptions, however. For example, academic units have various scholarship funds providing support to their students. While the academic units may administer the scholarship programs and select recipients, the Financial Aid Office is assigned as the financial manager for all scholarship funds. This feature of Banner facilitates centralized regulatory and financial control of such activities while providing departments information through the attachment of their organization code to all operating ledger activity for each of the scholarship funds.

Each University unit may have many funds for which they are responsible. It follows then that a unit's organization code may be associated with several fund codes in the operating ledger. However it is important to note that since organization codes are defaulted from fund codes, a fund may have one and only one organization code.

Four digit numeric codes are used for all organization numbers, both data enterable and non data enterable. No mnemonic meaning has been established for organization numbers. They are randomly assigned.

There are eight hierarchical levels for organizations within Banner Finance. An example follows:

  • Level 1 1000 Oakland University
  • Level 2 2154 Division of Academic Affairs
  • Level 3 0040 School of Education & Human Services
  • Level 4 2055 Human Development & Child Study
  • Level 5 0916 Institute for Action Research
  • Level 6-8 Reserved for future use

The Organizational Hierarchy report, FGRORGH, is available to all Banner Finance Users and provides detailed organization hierarchy information.

Accounts

Account numbers are established to define assets, liabilities, fund balance, revenues, expenditures and transfers. The University uses four digit codes for all account numbers. All University accounts are grouped under one of the following categories:

  • 1xxx Assets
  • 2xxx Liabilities
  • 3xxx Fund Balance Control
  • 4xxx Fund Balance
  • 5xxx Revenue
  • 6xxx Compensation and fringes Benefits
  • 7xxx Other Expenditures
  • 8xxx Transfers

Within each account category are data enterable and non data enterable accounts. The non data enterable accounts are used to group account activities together in meaningful ways for budget and reporting purposes.

There are four hierarchical levels for accounts within Banner Finance. An example follows:

  • Level 1 7100 Supplies and services
  • Level 2 7101 Supplies and services budget
  • Level 3 E033 Lab supplies
  • Level 4-5 Reserved for future use

The Account Hierarchy Report, FGRACTH, is available to all Banner Finance users and provides detailed account hierarchy information.

Location

Location codes are established to define the whereabouts of University equipment. There are five hierarchical levels for location codes within Banner Finance. An example follows:

  • Level 1 AN0000 Anibal House
  • Level 2 AN1010 Room 101
  • Level 3-5 Reserved for future use
Capital Projects

For capital projects greater than or equal to $50,000, a plant fund letter must be prepared by the Facilities Management Department requesting a new fund for each project. Departmental requests for capital project funds should be directed to Facilities Management. Approved plant fund letters are forwarded to the Accounting Office where the funds are established.

Grants and Contracts

All grant and contract fund requests should be directed to the Grants Office.

Changes

All requests for changes to fund, organization and account codes should be e-mailed to Gerriann Reimann in the Accounting Office at reimann@oakland.edu. Changes include cosmetic name changes and reassignment of funds to different organizations. When several items are involved, please attach an Excel file listing "before" and "after" profiles for the requested changes.