Understanding the chart of accounts Prepared by: Kelly murray-scott Lambton college finance department November 17, 2009 Revised: September 25th, 2014

General ledger account structure Department (1st 4 digits of the cost centre) 1-701004-44200 Fund Cost Centre Object Operating – International/Wuxi – Office Expense

Funds 1 – Operating 2 – Capital 4 – Foundation 5 – Restricted Used for the majority of academic and administrative departments 2 – Capital Used for tracking capital spending – equipment, furniture, buildings, etc. 4 – Foundation Used for revenue and expenses generated by the Lambton College Foundation and Alumni 5 – Restricted Used to track funds that are restricted for specific uses (i.e. scholarships, conferences, etc.) 6 – Ancillary Used for the bookstore, parking and residence accounts 7 – Fireschool Used for all activity within the fireschool as it pertains to the industrial activity

Departments/Cost Centres Department Ranges Examples 000’s – Balance Sheet 000000 – Assets 010’s – Restricted Funds 010100 – TSA Bursaries 040’s – Foundation 040002 – Alumni Association 071’s – Fireschool 071200 – Hazmat Program 200’s – Student Services 200000 – Registrar’s Office 400’s – Administrative Services 401000 – President’s Office 400’s – Human Resources/Facilities 402000 – Payroll Department 500’s – Academic (Post Secondary) 510000 – Business 600’s – Academic (Post Secondary) 670000 – Practical Nursing 700’s – Contract Education 748000 – ITP Program 800’s – Miscellaneous Contracts/Ancillary 842000 – Literacy & Basic Skills 900’s - Capital 906000 – Facilities Renewal

Classes (1st Digit of Object) Examples of Subclasses Objects Classes (1st Digit of Object) Examples of Subclasses 0xxxx – Assets 36xxx – Fees 1xxxx – Liabilities 38xxx – Revenue – Contract Services 2xxxx – Equity 40xxx – Salaries Fulltime Academic 3xxxx – Revenue* 44xxx – Instructional Expenses 4xxxx – Expenses* * These are the objects end users should be familiar with

Revenue The most common revenue accounts include: 30xxx 31xxx 32xxx Revenue received from MTCU 34xxx for programs run by Lambton 34xxx 35xxx 36xxx – Any fees paid by students for services provided by the College 37xxx – Revenue earned from ancillary operations 38xxx – Revenue earned from delivering contracted services 39xxx – Revenue earned from miscellaneous sources (i.e. the Foundation) Revenue accounts should only be used to record funds earned by the College. Revenue accounts typically maintain a credit balance. Expenses should not be posted to revenue accounts except for anomalies like deferred revenue adjustments.

Expenses Expense accounts should only be used to record amounts payable by the College. Expense accounts typically maintain a debit balance. Revenue should not be posted to expense accounts except for anomalies like recovery/ reimbursement for expenses (i.e. 44090). The most common revenue accounts include: 40xxx – FT Academic Salaries 41xxx – FT Administrative Salaries/PT Academic 42xxx – FT/PT Support Salaries 43xxx – Benefits 44xxx – General and Instructional Expenses 45xxx – Building and Equipment Maintenance 46xxx – Fees and Contracted Services 47xxx – Expenses Related to Premises 48xxx – Expenses Related to Equipment 49xxx – Miscellaneous Expenses

Common Other than Full-time payroll accounts Part-time/Partial Load/Etc. Contract Services (Payroll and Non-Payroll) 41100 – Academic Partial Load 46501 – Contract Services Instructional Payroll 41200 – Academic Part-time 46544 – Contract Services Instructional Benefits 41300 – Academic Sessional 46502 - Contract Services Curriculum Development Payroll 41900 – Administrative Part-time 46545 - Contract Services Curriculum Development Benefits 42200 – Support Staff Overtime 46503 - Contract Services Co-Ordinator Payroll 42500 – Support Staff Part-time 46546 - Contract Services Co-Ordinator Benefits 42502 – Work-study 46570 - Contract Services Instructional Non-Payroll 42503 – Co-op 46901 - Contract Services Non-Instructional Payroll 42504 – Peer Tutors 46944 - Contract Services Non-Instructional Benefits 42507 – Student Help 46970 - Contract Services Non-Instructional Non-Payroll 42509 – Graduate Student

Clarification of Contracted Services Notes: These four accounts should not be used for any part-time, partial load instructors or part- time support staff. The contracted services paid through payroll are subject to a “benefit” charge announced at budget/forecast time to cover the College’s costs of CPP, EI, EHT, etc. These accounts include: 465xx – Contract Services Instructional Payroll Used to pay all instructors in non-post secondary courses that will be paid through payroll (the instructors do not invoice the College) 46570 – Contract Services Instructional Non-Payroll Used to pay all instructors in non-post secondary courses that will be paid through an invoice issued to the College 46901 – Contract Services Non-Instructional Payroll Used to pay all contracted employees who are not teaching (i.e. consultants) and will be paid through payroll 46970 – Contract Services Non-Instructional Non-Payroll Used to pay all contracted employees who are not teaching and will be paid through an invoice issued to the College

Things to Remember The College’s fiscal year runs from April 1st to March 31st (the current year is always referred as the year it ends i.e. for fiscal year 2014-15 it is referred to as 2015) End users should never post to fulltime salary of benefit accounts (40100, 41500, 42000, 43000, 43400, 43600) – any adjustments to these accounts needs to be authorized/made by Finance Benefit accounts should never be used on their own (43xxx, 4654x, 46944) – they should only be used in relation to the corresponding payroll Post expenses to their proper accounts – if the line does not exist, contact Finance to add it to your cost centre An employee cannot be both on payroll and contract (non-payroll) If something has been posted to the wrong account, please send a journal entry form with backup to Finance When in doubt…just ask