1. OSU Accounting
Oregon State University – Financial Accounting & Analysis - Business Affairs
October-November 2016

2. FIS (Fiscal Operations) Manual FOAPAL Elements Quick explanation
Agenda
FIS (Fiscal Operations) Manual
FOAPAL Elements
Quick explanation
Importance
Account codes
Supporting documentation
Invoices
Journal Vouchers (JVs)
Reconciliations
GL Account Codes
Funds
OSUF Systems
It has been some time since Business Affairs has done a training based upon the basics. Since there have been many newcomers to the OSU Accounting Community and FY17 is our base year for the next Facilities & Administrative (F&A) Cost or Rate Proposal, we felt now was a good time to provide a refresher course for some and an introduction for others. I designed this training session to be fairly short in the classroom; however, there is personalized homework. I will be going through this material fairly quickly. You may find there is a portion of the material that you need further information about. In that case, I would suggest you make a note for yourself and after this training you further review the materials and the included references. If you still have questions or would like clarification, please contact your finance coordinators and/or your finance & accounting managers. These experts should be your first source of knowledge for OSU accounting practices.

3. The Fiscal Policy Manual http://fa. oregonstate
The Fiscal Policy Manual or FIS Manual is a handy reference. I find this a “must have” bookmark. Take a bit of time and explore. For instance, within the 000 Introductory Material section is a brief overview of the purpose of the manual, definitions, exhibits, and FAQs (these are also on the Business Affairs website under FA&A

4. FIS 1101 FOAPAL Elements provides details regarding these elements
FOAPAL = Acronym for the six chart of accounts elements used to process financial data. FIS term standing for Fund, Organization, Account, Program, Activity and Location codes.
An index is a shortcut to a unique Fund – Org – Program code combination
FIS 1101 FOAPAL Elements provides details regarding these elements
Fund identifies the type of resource, how it can be spent, & represents a financial entity that requires a balance sheet
FIS Program Codes identify the type of activities for which dollars are spent. It is essential that all expenditures be correctly classified. These codes are used for the compilation of OSU’s financials and the F&A Rate Proposal.
Please review the information within these policies. It will help to steer some of your accounting decisions on what are appropriate expenses to post to a fund or provide you with a little background on a particular type of fund. It is critical to follow the information within FIS Program Codes so expenditures are posted appropriately and are accurately reflected in OSU’s financial information.

5. 1102 How to Request Banner Chart of Accounts (FOAPAL) Elements
1103 Document Codes
1104 Rule Codes
1106 Invoices
1107 Journal Vouchers
1108 Approval Routing
1109 Special Approvals
1110 Document Status
1111 Document Approval History
Other important sections of the FIS 1100 Banner Processes section include.
1102 – useful for background knowledge and for FCs & FAMs when needing additional FOAPAL elements set-up.
1103 – helps to quickly identify the type of document
1104 – necessary for all transactions in Banner. For JVs, use in conjunction with the exhibit Business Center – JV Rule Code Matrix
1106 and 1107 – detail when invoices or JVs are used and most of the nuances to creating these documents
1108 and 1109 – discuss approval procedures. When you have been designated as an approver for invoices, purchase orders or journal vouchers, be sure you understand all of the things you should be checking – is the fund right for the account code, is this the proper index (fund-org-prog) for the expense, is the rule code right, etc. etc.
1110 – very basic about invoice or PO status
1111 – you can review who has approved or disapproved a document

6. Account Codes – the element in the financial account string that defines the type and purpose of the revenue or expense
Definitions are in Ex Account Codes
Operating Ledger codes are numerical – 99999
the financial record of the day-to-day business (revenue, expenditures, and transfers) of the University over a given time period by fiscal year
General Ledger codes begin with an alpha character A0000 – F9999
a balance sheet made up of Asset, Liability, Fund Balance, and Control Accounts

7. 409 Determine What Account Code to Use Is it a revenue or an expense?
If it is a revenue, is it external or internal?
If it is an expense, what “category” does it fit into?
Personal Services ( )
Supplies (20xxx)
Agricultural Related Services & Supplies (21xxx)
Merchandise for Resale or Redistribution ( )
Cont.
It is much easier to take the time when the initial invoice or JV is created to determine the best fitting account code based upon the use of the product or service being purchased than to put in a subsequent JV to change the coding. It also gets easier with practice. Read the policies, talk it over with your co-workers, and look at previous examples of similar transactions before you make your choice. Avoid miscellaneous account codes whenever possible.

8. What is the purpose of the transaction?
Food purchases might be for a nutrition class (instructional supply), workshop (conference refreshments), graduation event (public relation), or catering (for resale)
Should the code only be used on a particular fund? See Account Code Restrictions
FAQs are linked in
See link to the PowerPoint “Demystifying Account Codes”
6xxxx Merchandise for Resale – only allowed on Auxiliary enterprise and Service Center funds.
Recently, a situation came to our attention that three different account codes were used for software applications – Subscriptions (under Supplies), Miscellaneous Fees & Services, and Software Maintenance Contracts/Service - Payments to a vendor for a contract for data processing maintenance and repair or for maintenance and repair services. Maintenance and repair services may or may not be covered by a contract.. Neither or are appropriate Subscriptions - Periodic publications purchased on a subscription basis for use in the normal course of business for reference or administrative purposes.
Miscellaneous account codes should be avoided whenever possible.

9. Supporting documentation (varies according to invoice or JV)
Budget authority/approval for transaction
Original document
Do not include a copy of the JV
showing the request
Will the documentation support the transaction – now and in the future for a potential audit request?
Strong supporting documentation is needed for employment applications, award nominations, and OSU financial transactions. The text should explain why the transaction is being done and answer Who, What, Where, Why, When, and How. The documents in Nolij must support the reason and the approval for the transaction.
For many approvers, including a copy of the JV requires additional time to review the supporting documentation. For some of us, it seems to add no value. If it is being used to assist with identifying the documents for scanning, please write the JV# at the top of the first page of the documents to be scanned. If it is being used for retention purposes, take a look at FIS 1200 Records Retention Requirements.

10. Travel & Department Advances (fund 00116x with A3150 & A3151)
Reconciliations
GL Account Codes on all funds where you are responsible (i.e. 05xxx, 09xxx, 1xxxx, and 9xxxx)
Includes A1xxx, A2xxx, A3xxx, A5xxx, B03xx, B4xxx, and B5xxx account codes
Travel & Department Advances (fund 00116x with A3150 & A3151)
Use within 90 days of receipt
Reimbursement request within 60 days of incurring the cost
See FIS Balance Sheet Analysis
YEC – Business Affairs is strongly considering not having you send in reconciliation sheets on A5901 Prepaid Expense or B5901 Unearned Income
document referenced can be verified in Banner
amount is equal to original document or explained
YEC – Business Affairs is strongly considering having the reconciliation sheet for A3802 Non-SIS A/R attached in Nolij and not sent in separately
A reconciliation of all funds that you are responsible for under each GL account code is important. Is there someone assigned to take care of Travel Advances in a timely manner and request reimbursement paperwork? It is a potential liability for an OSU employee to retain travel advances after completion of the trip.
Does an accountant within your BC know what has been posted to either A3140 Accounts Receivable – Non SIS or A3192 Accounts Receivable – Misc Items?
There are few year-end accrual account codes. The major ones are A3802, A5901, and B5901. If you have a prepaid expense that is for a future fiscal period, you can post it to A5006 Prepaid Expenses during the year and then in the correct FY JV it to the right 2xxxx account code.

11. FS Reimbursement System
OSUF Systems
FS Reimbursement System
Use for allowable OSU expenses paid with donated funds held at OSUF
Considered “OSU cost of doing business”
Direct Payment System
Not reflected in OSU’s financials
Prohibited by OSU policy (i.e. alcohol, public relations, etc.)
Adequate substantiation required
Goal – processed within 2 weeks of receipt at OSUF
See OSUF pdf documents – Explanation of Financial Processing Systems Between OSUF and OSU + OSUF Expense Processing Matrix

12. If not, reach out to co-workers for suggestions
Communication
First – can you find the answer yourself in FIS policy or find a previous example?
If not, reach out to co-workers for suggestions
Contact your Fiscal Coordinator
FC will converse with FAM
FAM could discuss with FC Manager or Business Affairs
Business Affairs wants to be able to help answer everyone’s questions in the same manner with thoroughness and quickly. Unfortunately, we cannot give that personalized touch when there are so many individuals in each Business Center. Therefore, we strongly request that you exhaust all your immediate resources before having either the FAM or BC Manager contact us directly. This is a good method for getting information back to your BC too so they can evaluate training needs.

13. Thank you!
Questions?
Charlotte Rooks 75422