Chart of Accounts Workshop State of Indiana

2 Instructor – Gwyn Wilson, ENTAP – Lori Shapiro, ENTAP – Bob Hegyi, ENTAP

3 Discussion Topics What is the Chart of Accounts? What will change at Go - Live ? Core Chartfields Conversion only Chartfields Project Module Chartfields Required Combination Edits

4 What is the Chart of Accounts? The ENCOMPASS chartfields include all of the attributes necessary to process financial transactions.

5 Core Chartfields Business Unit- (Required) agency number plus two leading zeros Fund – (Required) will replace “Fund / Center” combination Account- (Required) will replace the current “Object” Program- (Required) Activity / Operation Measurement Department – (Required) will correspond to “Department” values in HR Budget Reference – (Required) state fiscal year Project – (Required based on funding source) An accumulation of costs for a period of time.

6 Core Chartfields Cont’d… Locality – (Optional) Geographic designation Product – (Optional) Track agency–to–agency cost of goods / services. Internal Service only Incident – (Optional) To track state – wide events not used unless assigned by OMB for a specific event

7 What will change at Go – Live? Old Core Chartfields

8 Core Chartfields Business Unit Required for all transactions Field length – 5 numeric field Principal unit of financial accountability within State government. Will be the same as the agency’s Distributional Agency number in GEAC plus two leading zeros. Assigned centrally and reflects financial responsibility. A single transaction can now be recorded against multiple Business Units - InterUnit

9 Core Chartfields Fund Code Required for all transactions Field length – 5 numeric field Centrally Defined Primary means within a BU for tracking and relating specific sources and uses of revenue or budget authority.

10 Core Chartfields Fund Code cont’d… Fund replaces current Fund/Center combination. Numbering will not be the same as current numbering. *Example: BU Old Fund Center = 3010/ New Fund= A single transaction can now be recorded against multiple funds - IntraUnit

11 Core Chartfields Fund Code cont’d… Fund Attributes –Legal Fund: (Generally Same as Four Digit Fund) –CAFR Fund: (Generally Same as Four Digit Fund) –Fund Type: (General, Special Revenue, Debt Service, etc.) –Funding Source (Federal, General Fund, State Dedicated, etc.) –Control Code: (Determines Budgeting & Closing Rules) –Function of Government (General Government, Public Safety, etc.) –Location Type (Locality Required on all Transactions: Yes or No) –Interest Income (Fund Retains Interest Income Earned: Yes or No)

12 Finding Fund Codes through ENCOMPASS Let’s navigate to the ENCOMPASS site.

13 Core Chartfields Account Required for all transactions Currently defined as the Object Code -Includes additional detail and eliminates generic values *Example: Current “Object” Office Supplies Go – Live “Account” Office Supplies Field length – 6 numeric field Centrally Defined- One set of chartfield values are used across all Business Units Used for classifying specific transactions and to achieve the objectives of proper financial reporting and budgetary control.

14 Core Chartfields Account cont’d… The first digit represents the major reporting classification 1 = Assets 2 = Liabilities 3 = Fund Balance 4 = Revenues 5 = Expenditures 6 = Internal Service Fund Revenues “64” and Expenses “65” 7 = Other Financing Sources and Uses “74” and “75”

15 Conversion Only Chartfields Conversion-only Accounts –Highlighted in yellow on Account Chartfield Listing –Will not be available for use at go-live Test in Sandbox = Inactive –Should be mapped to a more specific Account number –Pending items at go-live Will vary depending on module –AR – likely to create new Account now at AOS –AP – will have to change account (object) on first use after go-live

16 Conversion Only Chartfields These values are conversion only in nature and will not be used on a going forward basis in the new Chart of Accounts These “CO” or Conversion Only values are required for the successful conversion of existing data to the new chart of accounts structure and will be inactivated in the system when the conversion is completed. CO values have been inactivated in Sandbox to get agencies prepared for using the new ENCOMPASS COA chartfield values. *Example:

17 Finding Accounts through ENCOMPASS Let’s navigate to the ENCOMPASS site.

18 Core Chartfields Program Code Required for all transactions Field length - 5 numeric field –1 st 3 digits – correspond to a related PROBE classification –4 & 5 – are designated by the agency to capture programmatic information This chartfield will provide classification and reporting capabilities with more flexibility and greater detail. No equivalent within current chart of accounts

19 Core Chartfield Department Required for all transactions Represents an organizational function to which expenditures and other activities are identified. Centrally Defined (SPD) Field length – 6 numeric field This field will correspond to the departments within HR.

20 Core Chartfield Department cont’d… Each department will be assigned an attribute: –Information Technology –Accounting / Finance –Human Resources –Administration –Marketing / Communications –Legal –Auditing –Purchasing –Legislative / Policy –None of the above

21 Program vs. Department *Example Business Unit: Agency: Indiana State Library Department: Genealogy Div. Program: Library Services & Tech Act LSTAN

22 Core Chartfield Budget Reference Required for all transactions Used to identify the State fiscal year associated with a transaction. Field length – 4 numeric field

23 Chartfield Searches In ENCOMPASS Let’s navigate to ENCOMPASS

24 Core Chartfield Project An accumulation of costs for a period of time. Field length – 15 alphanumeric field Required for specific circumstances –Federal Grants and Appropriations Received Passed through to sub-recipients within State government Passed through to sub-recipients outside of State government. –Any expense that results in the construction of a State capital asset Any agency has the option of using this chartfield if they need to track costs.

25 Core Chartfield Project cont’d… Federal Project –Each state agency that receives a federal grant will have an individual Project that corresponds to each individual Grant Year award. Capital Project / Preventative Maintenance –Each state agency will have an individual project for each of their distinct Capital projects.

26 Additional Project Chartfields ChartfieldUse Functional Activity (7 digits recommended) Agency defined. (Required for all projects). Activity entered at the time of the transaction. Federal budget requirements and/or lines on a federal report. Distributional Activity (7 digits recommended) Activity assigned after the Funds Distribution process. Utilized for Contract & Billing Module. Incorporated into INDOT Modification for Funds Distribution. Source Type (5 digit) Agency defined. (Optional) Available to support additional agency Federal Reporting needs. Source Category (5 digit) Assigned during Funds Distribution. (Required) Autonumbered. Corresponds to Funding Source ID in commitment control. Source Sub Category (5 digit) Assigned during Funds Distribution (Optional) Agency Defined. Available to provide greater detail than Funding Source. Analysis Type (3 digit) Identifies the Type of Transaction on the Project Resource Table. Transactions will be processed differently in the Projects Module based upon their assigned Analysis Type. System Defined.

27 Project Module Details For addition details GMIS offers Training on the Projects Module

28 Core Chartfield Locality Optional Field Identifies a geographic location or area. Replaces the current Class Chartfield. Field length – 5 numeric field Centrally Defined with Agency coordination Agencies determine whether or not Locality Chartfield is required for transactions on Fund by Fund basis Locality will use codes currently in use for other state functions whenever possible

29 Core Chartfield Product Used to track costs of good or services provided to other state agencies. Field length – 6 numeric field Centrally defined with agency input Will only be used by the State’s Internal Service Funds (i.e., IOT Revolving, Motor Pool Revolving, Aviation Revolving, and Pen Products) for their transactions with other state agencies.

30 Core Chartfield Incident Transactional classification to track costs for a particular event or activity as determined by State officials. Field length – 6 numeric field Centrally Defined This chartfield is not required unless you are instructed to do so. Currently being used in production * Example : Tornado

31 What Questions Do You Have???

32 Combination Edits “Combo edits” are chartfields that are required for transactions entered into the system. State Required edits include: –Business Unit, Fund, Account, Program, Department, & Budget Reference are required. –Project Chartfield including PC BU, Project, and Activity must be used on transactions when Federal or Capital Fund is used. For GL Journal Entries Analysis Type Agencies can create their own specific edits.

33 Prior Year Encumbrances How will prior year encumbrances be maintained without prior year fund centers? The Budget Reference is utilized to signify the original budget year in which the encumbrance was created.

34 Prior Year Encumbrances Current System: Agency has current year purchase orders for FY 2009 in fund center 1000/ Agency has outstanding encumbrances for prior year purchase orders in FY 2008 in the prior year fund center 1000/ ENCOMPASS: Outstanding purchase orders for FY 2008 will be in fund with a budget reference of Purchase orders for FY 2009 will be in fund with a budget reference of 2009.

35 Chart of Accounts Support Go–Live Support: AOS, SBOA, and SBA will work jointly to approve new chartfield values for those fields that are centrally defined (fund, account, program, etc…) SPD creates departments. Encompass Website – –AP Training documents: ENCOMPASS > ENCOMPASS Documents > Training > Workshops > Cart of Accounts

36 What Questions Do You Have???

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