1. Kentucky County Treasurer’s Fundamentals Course
STATE /LOCAL FINANCE OFFICER REQUIREMENT
Kentucky County Treasurer’s
Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
November 30, 2018
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2. The Uniform System of Accounts
Kentucky County Treasurer’s
Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
The Uniform System of Accounts (U.S.A.) requires revenues to be recorded when received and expenditures to be recorded when paid (cash basis).
The U.S.A. utilizes a minimum of six (6) digit numerical indicators for revenue accounts and a minimum of nine (9) numerical indicators for appropriation & expenditure accounts. All anticipated revenue and expenditure codes are included in the chart of accounts and are categorized
The Uniform System of Accounts
FUND
MAJOR
MINOR
XXX Unique
November 30, 2018
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3. The Uniform System of Accounts
Kentucky County Treasurer’s
Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Fund codes
The
Uniform
System of
Accounts
the first two (2) digits of both the revenue and expenditure accounts. Fund codes 01, 02 and 03 identify the following as General, Road or Jail funds, for example.
November 30, 2018
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4. The Uniform System of Accounts
Kentucky County Treasurer’s
Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Major object codes
The
Uniform
System of
Accounts
The next four (4) digits of revenue and appropriation & expenditure codes. Revenue codes are always a 4000 number and identify specific sources of revenue and receipts. Major object appropriation & expenditure codes are between the numbers of 5000 and 9999 and represent broad categories of expenditures. For example, 5001 indicates the category of Judge/Executive.
November 30, 2018
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5. The Uniform System of Accounts
Kentucky County Treasurer’s
Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Minor object codes
The
Uniform
System of
Accounts
The last three (3) digits of the appropriation & expenditure accounts and represent specific types of expenditures. 101 would indicate an elected county official's salary.
November 30, 2018
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6. The Uniform System of Accounts
Kentucky County Treasurer’s
Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
XXX object codes
The
Uniform
System of
Accounts
Some counties may wish to track certain revenues and expenditures in a more detailed manner than required by the state local finance officer. In this case, a county may choose to add an alphabetical or numerical entry, unique to that county, following the standard codes.
November 30, 2018
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7. The Uniform System of Accounts
Kentucky County Treasurer’s
Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Please Note
The
Uniform
System of
Accounts
All counties must use the account numbers from the chart of accounts. Codes used must identify the revenue or expenditure. The State Local Finance Officer will review the codes during the budget process for form and classification.
November 30, 2018
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8. Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
The Uniform System of Accounts for Kentucky counties shall consist of the following books of accounts:
cash receipts journal
cash receipts ledger
appropriation ledger(s)
check distribution register
general ledger
investments journal
purchase order journal
subsidiary ledgers and journals as needed
November 30, 2018
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9. Books of Accounts Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Cash Receipts Journal
Books of
Accounts
A daily, chronological listing of all receipts and should balance to the daily deposit. The listing is the book of original entry for all county revenues and all county funds. The journal should indicate the date money is received, a description of the revenue source, the revenue account code, the total amount, and the fund(s) to which the amount is distributed. Each daily cash receipts journal is totaled and is posted to the cash receipts ledger.
November 30, 2018
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10. Books of Accounts Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Cash Receipts Ledger
Books of
Accounts
A monthly compilation by fund and account code of receipts recorded from the cash receipts journal. The Ledger will identify the name of the revenue account, the account code and the amount budgeted. A monthly total is posted and a cumulative total is maintained. At the end of each quarter, the year-to-date figure is carried directly to the treasurer's portion of the quarterly financial statement.
November 30, 2018
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11. Books of Accounts Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Appropriation Ledger(s)
Books of
Accounts
The ledger reflects, by account number, the original budget appropriation, the payee, increases/decreases by amendment or transfer, expenditures, and the remaining balance. Reconciliations should be made at least monthly in order to insure accuracy.
November 30, 2018
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12. Books of Accounts Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Check Distribution Ledger
Books of
Accounts
A chronological listing of daily disbursements by fund. The ledger must indicate the date, the check number, the payee, the account code, and the amount. (A separate column should be included for investments. Checks issued for the purpose of investments are to be recorded in the investments column and should balance to the investments journal.) Checks are to be posted numerically and all checks are to be recorded, including voided checks.
November 30, 2018
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13. Books of Accounts Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Investments Journal
Books of
Accounts
A journal to record the purchase and liquidation of investments. The journal should include the date of the investment purchase, the check number (which should tie back to the check distribution ledger), the depository, type of investment, identifying serial number, fund identity, amount, date of maturity, earnings amount, earnings deposit date, and description of principal disposition.
November 30, 2018
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14. Books of Accounts Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
General Ledger
Books of
Accounts
A compliance by fund of the receipts and expenditures posted to the books that indicate a book balance.
November 30, 2018
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15. Books of Accounts Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Purchase Order Journal
Books of
Accounts
A Purchase Order journal is just a log that records information about the POs that are issued. It would include the vendor name, date of issue, the Purchase Order amount not to exceed, a place to show that the Purchase Order has cleared (date cleared), the amount not to exceed, expiration date of the Purchase Order (used when a Purchase Order is issued to a vendor in an amount not to exceed and purchase made against that Purchase Order is debited until the maximum amount has been reached or the Purchase Order has expired, whichever comes first).
November 30, 2018
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16. Books of Accounts Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Purchase Order Journal
Books of
Accounts
Of course it will contain the Purchase Order number and the item(s) purchased. The journal needs to tie back to the Purchase Order that was issued. The total encumbrance is actually a maximum amount because you have essentially "reserved" an amount to be encumbered and that amount may change depending on the actual amount debited against the issued amount or if the Purchase Order expired before the limit was reached.
November 30, 2018
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17. Books of Accounts Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Subsidiary Ledgers
Books of
Accounts
The State Local Finance Officer sets the minimum standards for books and reports to be utilized by Counties. Eg. Payroll revolving ledger, Bond fund ledger.
November 30, 2018
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18. Books of Accounts Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Purchase Order Journal
Books of
Accounts
A journal to record purchase orders issued by fund then account code. The journal should include the purchase order number, date of issue, payee, and maximum amount allowed to spend.
November 30, 2018
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19. This is to certify that, on this day, FIRST LAST
Friday, November 30, 2018
FIRST LAST
Has successfully completed the
Kentucky County Treasurer’s Fundamentals Course
The Uniform System of Accounts for Kentucky Counties
Tammy Robertson
K.A.C.T.F.O. President