1. Expense Account Codes for: Admin Forum April 5, 2012 Kim Seamans, Financial Reporting Accountant kseamans@uncc.edu, 7-5752 Laura Demski, Compliance Manager ldemski@uncc.edu, 7-5002 kseamans@uncc.edu ldemski@uncc.edu

2. Agenda Introductions Understanding the Importance of Using the Correct Accounts Resources Available Examples/FAQs

3. Introductions Share with the group who you are and what role you play: Name Department How long in position/with University What do you hope to learn?

4. Reporting – External and Internal Financial Statements Contributors (NCAA, Other Organizations) Regulators (Budget Preparation) Management If expenses are not coded correctly, decisions are made using bad information.

5. Revisions FY 2011 clean-up of Chart of Accounts, including listing, descriptions, and FAQs http://finance.uncc.edu/controllers-office/general-accounting Additional Q&A is being compiled, and more examples will be added to the descriptions Notification will be given when significant updates are made.

6. Which Account is Right for Me? Avoid using “Other” or “Miscellaneous” accounts for recurring expenses. Use the resources on the General Accounting Website. http://finance.uncc.edu/controllers-office/general-accounting http://finance.uncc.edu/controllers-office/general-accounting If you do not see a description that fits your situation, ask! We may need to revise an account description, or create a new one.

7. Which Account is Right for Me? Not an Exact Science No “Right” answers, just Better and more consistent answers Goal is for consistency across campus Internal Audit will assess levels of consistency Consult Reporting and Fixed Assets Department for Account Code use

8. When We Field Questions The resources we look to and the process that occurs when you ask us an account question: Chart of Accounts for North Carolina Accounting System (NCAS) (State-wide system). Our Banner accounts are linked to these accounts. UNC System Chart of Accounts http://www.northcarolina.edu/finance/chart_accounts/COA- REVISED_11.21.2011.pdf http://www.northcarolina.edu/finance/chart_accounts/COA- REVISED_11.21.2011.pdf Our internal documents

9. Food Costs Meals while Traveling go to Subsistence Food for Resale has its own account Contracted – catering (ex: Chartwells) Food Supplies account is for unprepared food and beverages purchased for trainings, meetings, etc. (ex: Bread, meats, cheese, etc.) Administrative Meals = Other not for resale non-travel prepared food

10. Equipment Capital vs. Non-capital Different Capitalization Thresholds $5,000 Equipment $100,000 Software Shipping, set-up, etc. Include in cost of item purchased. Allocate if multiple items purchased with one shipping charge.

11. 49er Mart Purchases Make sure you include adequate DETAIL for the reviewer to ensure correct accounting. Full description of item/services Itemized documentation of goods/services Reason/purpose for the purchase Don’t lump total costs if separable items and services are being purchased.

12. Service vs. Maintenance Maintenance Contracts/Service Agreements – ongoing support for property. Usually there is an agreement of 1 year or longer. Repair & Maintenance account – one-time or short-term repairs to property. Both parts and labor should be coded to this expense account. Contracted Services – contracts/agreements other than maintenance (professional and consultative personal services).

13. FAQ Excerpts 4. I am purchasing software to be used exclusively in the classroom. Should this be classified in account: 930250 Educational Supplies 944090 Other Educational Equip Non-Cap, or 942050 Software-PC/Printer Non-Cap? The expense account used should describe what is being purchased, not why. We want to record all software being purchased as “software,” regardless of intended use, e.g., in a classroom or office. The fund number will indicate the function supported by the expenditure, e.g., administrative, instructional, research. Therefore, the best account to use here is 942050 Software PC/Printer Non-Cap.

14. FAQ Excerpts 10. What expenses should be recorded using account 930250 Educational Supplies? For “purchase of materials and supplies used exclusively for instructional and training purposes” (OSC 533720). Only when a more specific account does not exist. Examples: Exam/testing kits Educational videos to be watched in class Teacher’s edition books Examples of items NOT to record to Educational Supplies: Paper (Office Supplies) Educational software (Capital Equipment - Software) Chemicals (Lab Supplies)

15. FAQ Excerpts 28. What is the difference between accounts 951760 and 920700? Account 951760 Other Current Services: -For administrative services -That cannot be more specifically categorized Account 920700 Other Contracted Services: -For contracted services -That cannot be more specifically categorized in other Contracted Services accounts

16. Examples of Inconsistencies Item/Service Purchased Account Code UsedCorrect Account Code Parking tokens920700, Other Contracted Svcs925440, Non-Employee Transportation © and Publishing fees 928170, Printing/Binding/Duplicating953100, Other Admin Costs Videotaping & transmitting 920700, Other Contracted Svcs928130, Video Transmission Charges Food supplies951360, Administrative Meals930200, Food Supplies Chartwells orders 930200, Food Supplies922150, Contract Svc-Food Svc Event Staples orders930200, Food SuppliesVarious FSLs932300, Non-Educ Misc Supplies951410, Public Relations

17. Q&A Open discussion for any other expense account questions you have!

18. Website