COA Definitions June 10, 2015

The proposed Rutgers Chart of Accounts structure comprises nine segments used to satisfy financial reporting requirements SegmentPurpose UNITBalancing segment; represents the individual schools and organizations within Rutgers DIVISIONUsed to group unit, org and location based on the management view ORGANIZATION Value which represents a material manager of people and space within the organization (3+ resources used as guideline) LOCATION Identifies the location where the financial transaction is serviced (e.g., on campus, off campus, online) FUND TYPEIdentifies the funding source used to acquire goods & services ACCOUNTBalance Sheet and Income Statement transactional accounts – represents the “what” BUSINESS LINE Represents a line of business or mission of the university. Individual P&L reports can be generated. Resources may be assigned to a business line when not part of a larger org ACTIVITYUsed for interdisciplinary project cost tracking FUTUREReserved for future use Unit (3) Division (4) Organization (4) Location (4) Fund Type (3) Account (5) Business Line (4) Activity (4) Future (5)

Unit Segment Details Unit (3) Division (4) Organization (4) Location (4) Fund Type (3) Account (5) Business Line (4) Activity (4) Future (5) Definition & Use School, Institution, Center and/or Central Unit which is required to produce a balanced Balance Sheet Expect to align with Responsibility Centers (RC) Accounting Transactions Will serve as the balancing segment. Each transaction must balance; debits equal credits within the unit. Will require due to/from account relationships if data needs to be transacted between units, such as between SEBS and SAS (Intercompany transactions) The GL will be configured to generate the due to/ due from transactions automatically Mandatory value Reporting Considerations Profit/Loss and balanced Balance Sheet by Unit Configuration Child values numeric; Parent values Alpha Volume <100

Unit (3) Division (4) Organization (4) Location (4) Fund Type (3) Account (5) Business Line (4) Activity (4) Future (5) Definition & Use Used to group Organizations into hierarchies for management reporting Examples: Humanities, English, Clinical Affairs, Medical Imaging Services, Office of the Dean, etc. Division is a rollup of the Unit/Org/Location similar to the EBRC in Oracle. The future state Divisions will be provided by the individual businesses as they group their new org values and map the legacy orgs to the new design Accounting Transactions Mandatory Reporting Considerations Supports management reporting views for the different units P&L and balance sheet reporting will be available Configuration Child values numeric; Parent values Alphanumeric Volume Approx. 200 Division Segment Details

Organization Segment Details Definition & Use Represents the lowest level of cost capture for headcount and space. The organization is flat and has shared values which can be grouped by division to reduce redundancies (e.g., one Dean’s Office value shared across multiple units and divisions. Flat organization provides the flexibility to see total cost for a single organization across the university. Requires commonality including language (value description) and purpose (use) for each value. For numbering purposes, a general hierarchy is in place grouped by high level purpose (e.g., Instructional, Medical, Student Support, Institutional Support, etc.), but each unit will have the ability to use the combination of unit, division and location as necessary. Accounting Transactions Mandatory Reporting Considerations Supports management and operational reporting views for the different units Used for budgeting and forecasting Primarily used for P&L, although some balance sheet posting may be allowed Configuration Child posting values will be numeric Parent (rollup) values will be alphanumeric Volume TBD, but expect between 1,000 and 1,200 Unit (3) Division (4) Organiza- tion (4) Location (4) Fund Type (3) Account (5) Business Line (4) Activity (4) Future (5)

Location Segment Details Unit (3) Division (4) Organization (4) Location (4) Fund Type (3) Account (5) Business Line (4) Activity (4) Future (5) Definition & Use Identifies the area where the revenue and/or costs are serviced including onsite, off-site, online and foreign locations. Useful in identifying true costs for a responsibility center when spread across multiple locations. Can be used for identifying clinic locations or specific locations where work is being performed. Accounting Transactions Mandatory Reporting Considerations Profit/Loss and partial Balance Sheet Configuration Child posting values will be numeric Parent (rollup) values will be alphanumeric Volume < 100

Fund Type Segment Details Unit (3) Division (4) Organization (4) Location (4) Fund Type (3) Account (5) Business Line (4) Activity (4) Future (5) Definition & Use Identifies the funding source used to acquire goods and services. Examples include: Unrestricted, Restricted, Endowment, Plant, Loan, Auxiliary Accounting Transactions Mandatory Reporting Considerations Profit/Loss and potentially will be used as the secondary balancing segment in Oracle GL Configuration Child posting values will be numeric Parent (rollup) values will be alphanumeric Volume 40-50

Account Segment Details Unit (3) Division (4) Organization (4) Location (4) Fund Type (3) Account (5) Business Line (4) Activity (4) Future (5) Definition & Use Represents the “what” of the transaction - i.e., what line item does this transaction apply to in the financial statements Accounting Transactions Mandatory Reporting Considerations Grouped by AFS as the primary hierarchy with additional groupings for internal financial view available in the detail below. Alternate views will be accommodated through report design. Full Balance Sheet and P&L Configuration Use numeric values for transaction processing Use alphanumeric values for parents (e.g. ‘T’ or ‘P’ to indicate a parent roll up) Use all alpha characters for statistical accounts Follow logical numbering (1XXXX for Asset; 2XXXX for Liability; 3XXXX for Equity; 4XXXX for Revenue; 5XXXX and 6XXXX for Operating Expense; 7XXXX for G&A; 8XXXX and 9XXXX for Non-Operating Expenses) Volume Targeting < 1000 Ongoing review by the business to close unused accounts and consolidate

Business Line Segment Details Unit (3) Division (4) Organization (4) Location (4) Fund Type (3) Account (5) Business Line (4) Activity (4) Future (5) Definition & Use Required to be populated to identify the specific line of business (or mission) being offered. The lower values are being determined. Examples of high level values are: Instructional, Research, Healthcare, Public Service, Academic and School Support, Student Services, Auxiliary Enterprises, etc. Accounting Transactions Optional – not all transactions will have a business line, particularly on the balance sheet Reporting Considerations Profit/Loss and partial Balance Sheet will be available as well as management and operational reporting Configuration Child posting values will be numeric Parent (rollup) values will be alphanumeric Volume TBD based on business feedback

Activity Segment Details Unit (3) Division (4) Organization (4) Location (4) Fund Type (3) Account (5) Business Line (4) Activity (4) Future (5) Definition & Use To identify total activity of high-level, interdisciplinary and strategic initiatives that span across multiple responsibility centers/units. Accounting Transactions Optional Reporting Considerations Specific management reporting only Configuration Use numeric values for transaction processing Use alphanumeric values for parents (e.g. ‘T’ or ‘P’ to indicate a parent roll up) Use all alpha characters for statistical accounts Volume Minimal; fewer than 15 identified to date

Future Segment Details Unit (3) Division (4) Organization (4) Location (4) Fund Type (3) Account (5) Business Line (4) Activity (4) Future (5) Definition & Use Reserved for future needs Accounting Transactions Optional – will default as ‘00000’ unless it is configured with other values Reporting Considerations None Configuration Numeric Volume 1 - Default value