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

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

3. 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

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

5. 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

6. 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.

7. 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 ).
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

8. 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
Contract Services Curriculum Development Payroll
41900 – Administrative Part-time
Contract Services Curriculum Development Benefits
42200 – Support Staff Overtime
Contract Services Co-Ordinator Payroll
42500 – Support Staff Part-time
Contract Services Co-Ordinator Benefits
42502 – Work-study
Contract Services Instructional Non-Payroll
42503 – Co-op
Contract Services Non-Instructional Payroll
42504 – Peer Tutors
Contract Services Non-Instructional Benefits
42507 – Student Help
Contract Services Non-Instructional Non-Payroll
42509 – Graduate Student

9. 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

10. 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 it is referred to as 2015)
End users should never post to fulltime salary of benefit accounts (40100, 41500, 42000, , 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