1. SAP Chart of Accounts December 3, 2015 Financial Reporting & Analysis http://www.txstate.edu/gao/reporting/ http://www.txstate.edu/gao/reporting/

2. Financial Reporting & Analysis financialreporting@txstate.edu fiaccountrequest@txstate.edu Angela BrandenbergerLisa Braun Accountant IVAssociate Director of Accounting 245-6129245-2770 ab59@txstate.edulb22@txstate.edu

3. Agenda  Definition of Account  Fund Accounts  Cost / Fund Centers  Internal Orders  General Ledger Accounts  New Account Requests  Questions and Answers 3

4. What is an Account?  An account is generally a 20 digit number that gives information about the source of funding and the department or university organizational unit that is receiving or spending money.  The 20 digits are made up of either: Fund + Cost/Fund Center Fund + Internal Order (For budget transfers, cost center is also necessary)  Each account combination is assigned an account manager that is responsible for overseeing and approving expenditures and assuring those expenditures comply with university policy and any other applicable restrictions.  Accounts have either an original budget via budget development or generate their own budget by receiving funds. 4

5. What is a Fund?  Funds are grouped based on type of revenue or source of funding.  The source of funding can affect what expenses are considered allowable.  There are four main sources of funding that cover the operations of most university departments:  E&G (Education & General)  Designated  Auxiliary  Restricted / Grants 5

6. E&G Funds  Primary source of funds are state appropriations:  General Revenue Appropriations  E&G Tuition & Fees  HEF (Higher Education Fund) Appropriations  Staff Benefits Appropriations  Other State Appropriations and Grants  Funds that start with “1”  Generally used to pay salaries and benefits and to purchase assets acquired using HEF (Higher Education Fund).  Funds are held in and expended from the state treasury and there are more spending restrictions than Designated and Auxiliary funds. https://fmx.cpa.state.tx.us/fm/pubs/purchase/restricted/ 6

7. Designated Funds  Sources of funds are tuition and fees, indirect cost earned on sponsored programs, and some business activities.  Funds that start with a “2”  The Designated fund group is comprised of the following types of accounts:  Designated Method  Indirect Costs (F&A)  Fees  Income Generating Activities  Service Departments 7

8. Designated Funds (cont.)  Most departments use Designated Method as their primary funding source for operating expenses. This and E&G funding represent the bulk of operational funding (Method of Finance).  For Income Generating and Service Department funds, budgets are set during budget development based on estimated income.  Some Income Generating funds have Revenue Increasing Budgets (RIB) where budget is increased as deposits are made.  Most expenses, other than alcohol, are permissible with a valid business purpose. 8

9. Auxiliary Funds  Funding is derived from business activities primarily for the benefit of students and faculty.  Funds that start with a “3”  When using fee funds, expenses should match fee purpose. Examples: Student Service Fee, Library Fee or Computer Service Fee  Generally, budgets are set during budget development and are based on estimated income.  Most expenses, other than alcohol, are permissible with a valid business purpose. 9

10. Restricted Funds  Funding received from gifts, donations and grants from outside sources.  Funds that start with a “4” (Restricted) or “8” (Grants).  In addition to having a valid business purpose, expenses must meet the conditions imposed by the donor.  Alcohol purchases are permitted from a restricted gift account but not from a grant account, provided that applicable UPPS is followed.  All gifts and donations should be routed through University Advancement. They will also coordinate the creation of new funds as needed. 10

11. Restricted Funds (cont.)  Includes distributions from endowments which must follow the restrictions of the endowment fund.  Employee contributions require special considerations as employee cannot directly benefit from gift/donation. Employees are considered “outside” sources.  Budgets for “4” funds are determined by income (Revenue Increasing Budgets). Budgets for “8” funds are set by the Office of Sponsored Programs (OSP) according to the award agreement. 11

12. Fund Number Schema  1 st digit designates the fund group.  7 th & 8 th digits designate the bank number. Any number other than “10” represents funds held in the state treasury.  9 th & 10 th digits designate the fiscal year, if applicable. Example – fiscal year based fund: 2000011015 Designated fund group for FY 2015 Primarily used for budgeted funds Example – multi-year based fund: 4700011000 Restricted fund group used multiple years 12

13. Fund RangeDescription 10000500XX - 14999900XXE&G-General Appropriations 15000000XX - 15099900XXE&G-HEAF 15100000XX - 18499900XXE&G-Other Appropriations 18500000XX - 19999900XXE&G-Benefits 20000010XX - 29999910XXDesignated (see separate slide for more detail) 30000010XX - 39999910XXAuxiliary (see separate slide for more detail) 4000001000 – 4099991000 4200001000 – 4299991000Restricted Gifts 4100001000 – 4199991000Endowment Recipient Funds 4400001000 – 4599991000Restricted - Federal, Non-Grant 4600001000 – 4699991000Restricted - State, Non Grant 4700001000 – 4799991000Restricted Scholarship Funds 4800001000 – 4899991000 4310001000 – 4319991000Endowed Scholarship Funds 5000001000 – 5999999999Loan Funds 6000001000 – 6999991000Endowment & Similar Funds 7000001000 – 7999999999Plant Funds 8000001000 – 8999999999Grant Funds 9000000000 – 9999999999Agency Funds Fund Number Schema (cont.) 13

14. Fund Number Schema (cont.) Designated Fund Ranges: Description: 20000110xxDesignated Method of Finance 20000210xxIndirect Cost 201xxx10xxCourse Fees (no longer used) 2020xx10xxAdvising Fee 2021xx10xxComputer Svc Fee 2022xx10xxLibrary Fee 2024xx10xxInternal Service Centers 2025xx10xxClearing Accts 2027xx10xx 2028xx10xxIncome Generating Accts 21xxxx10xxResearch Service Centers 14

15. Fund Number Schema (cont.) Auxiliary Fund Ranges:Description: 3000xx10xxStudent Svc Fee 3001xx10xxMedical Svc Fee 3002xx10xxStudent Bus Fee 3003xx10xxStudent Ctr Fee 3004xx10xxRec Sports Fee 3005xx10xxAthletics 3008xx10xxUniv Dining Svcs 3009xx10xxParking Svcs 3010xx10xxResidential Housing 302xxx10xxAuxiliary-various 15

16. Cost Centers  Identifies the university department or university organizational unit. First six digits are utilized to define the organizational hierarchy.  Remaining digits are utilized to segregate unique activities, operations, etc.  The term “cost center” is used for the Finance (FI) module in SAP while the term “fund center” is used for the Financial Management (FM) or Budget module in SAP. The terms are interchangeable. 16

17. Cost Center Number Schema  First 3 sets of 2 digits denote hierarchy  Level 1 (L1) – President & VPs 10 – Institutional (crosses all divisions) 14 – VP Financial & Support Services 11 – President’s area 15 – VP Student Services 12 – VP Information Technology 16 – VP University Advancement 13 – Provost/VP Academic Affairs 17 – Athletics  Level 2 (L2) – Reports to Level 10 – Assessment 19 – College of Education 12 – RRHEC20 – College of Liberal Arts 18 – College of Applied Arts21 – College of Science  Level 3 (L3) – Reports to Level 2 10 – CLAS13 – The Education Institute 11 – Health/Human Perf 14 – Curriculum and Instruction 12 – LBJ Institute For Improvement19 – Educ Policy Implementation Center Example: 1319140000 tells us that Curriculum and Instruction (L3) reports to the Dean of Education (L2) who reports to the Provost (L1). 17

18. Internal Orders  Provides a way to separately account for an activity managed by a member of a university department or university organizational unit.  Unlike cost centers, IOs are generally time dependent, such as a contracted service with a start and stop date, and do not have permanent budget.  Internal orders can be created as a statistical order, funded program, or grant.  Grants are funded programs whose master data is maintained by the Office of Sponsored Programs.  The distinction between the statistical orders and funded programs/grants is the level for budgetary control:  Funded Programs & Grants are budgeted at the IO level.  Statistical orders are not budgeted at the IO level but derive their budget from the associated cost center. 18

19. Internal Orders (cont.)  The first digit of the internal order number identifies the type of internal order and, in some cases, the purpose of the internal order:  NON-GRANTS (maintained by FR&A)  5* =Statistical Orders.  7* =Construction/Capital projects  9* = Miscellaneous temporary projects & internal “grants/awards.”  GRANTS (maintained by OSP)  1* = State Appropriated Grant IO.  8* = Non-state appropriated Grant IO. 19

20. General Ledger Accounts  General Ledger accounts or GLs are used in conjunction with Funds, Cost Centers, and Internal Orders for one of two purposes:  To define the type of revenue or expense involved in a transaction.  To identify a balance sheet account.  Six-digits in length.  Similar to Cost Centers/Fund Centers, the FM module refers to GLs as Commitment Items. The terms are interchangeable. 20

21. General Ledger Accounts (cont.)  First digit signifies whether account is a balance sheet or an income statement (revenue or expense) item:  1 = Asset  2 = Liability  3 = Fund Balance  4 = Revenue  7 = Expense  6 = Budget Commitment items for revenue and expense. Used only by BFP&A to allocate budget.  When expending state appropriated funds it is especially important to use the appropriate expense GL account. 21

22. Account Request Forms http://www.txstate.edu/gao/reporting/forms.html Completed forms should be emailed to: fiaccountrequest@txstate.edu http://www.txstate.edu/gao/reporting/forms.html fiaccountrequest@txstate.edu 22

23. Helpful SAP Transaction Codes SAP Transaction CodeDescription SAP Security Role ZCOA_BOChart of Accounts Budget Restricted Display Z_BUD_FPFunded Program Budget Actual Report Budget Restricted Display ZKOB1Statistical Orders: Actual Line Items Financial Restricted Display for Statistical Orders ZFMRP_RFFMEP1AXDocument Journal-All Postings Report Budget Restricted Display or Grant Restricted Display ZOPEN_ENCUMBRANCECurrent Open Encumbrance Report Budget Restricted Display F.10G/L Chart of Accounts General Financial Display S_KI4_38000034Index of Commitment Items(GLs) Budget Display FM5SFIFM: Display Fund General Financial Display KS03Display Cost Center General Financial Display S_KI4_38000038Index of Funds Centers Budget Display KO03Display Internal Order General Financial Display KOK5Master Data List Internal Orders General Financial Display ZBUDACTBudget To Actual Budget Restricted Display ZBUDGETBALANCEBudget Balance Report Budget Restricted Display ZGMGRANTDGrants Master-Display Only General Grant Display

24. Helpful Links  UPPS No. 03.01.09 Fiscal Responsibilities of Account Managers UPPS No. 03.01.09 Fiscal Responsibilities of Account Managers  Budget Office Reference Materials & Training Budget Office Reference Materials & Training  UPPS No. 03.01.05 University Income Recognition and Associated Cash-Handling Procedures UPPS No. 03.01.05 University Income Recognition and Associated Cash-Handling Procedures  UPPS No. 03.04.05 Facilities and Administration Costs (F&A or Indirect Costs) UPPS No. 03.04.05 Facilities and Administration Costs (F&A or Indirect Costs)  UPPS No. 03.01.02, Documentation of Expenditures of Gift Funds UPPS No. 03.01.02, Documentation of Expenditures of Gift Funds   UPPS No. 03.01.03, Purchase of Food, Refreshments, Alcohol or Achievement Awards UPPS No. 03.01.03, Purchase of Food, Refreshments, Alcohol or Achievement Awards   UPPS No. 03.05.01, Soliciting, Accepting and Processing Gifts UPPS No. 03.05.01, Soliciting, Accepting and Processing Gifts

25. Policy and Procedure Statements  University Policy and Procedure Statements (UPPS) http://www.txstate.edu/effective/upps/  Academic Affairs (AA) Policy and Procedure Statements http://www.provost.txstate.edu/pps.html  Information Technology (IT) Policy and Procedure Statements http://www.vpit.txstate.edu/about/policies.html http://www.vpit.txstate.edu/about/policies.html  Finance and Support Services (FSS) Policy and Procedure Statements http://www.fss.txstate.edu/policies.html http://www.fss.txstate.edu/policies.html  Student Affairs (SA) Policies and Procedures http://www.vpsa.txstate.edu/staff-resources/sa-policies-and- procedures.html  University Advancement (UA) Policy and Procedure Statements http://www.ua.txstate.edu/university- advancement/policy-procedure-forms.html http://www.ua.txstate.edu/university- advancement/policy-procedure-forms.html 25

26. Questions & Answers 26

27. Financial Reporting & Analysis financialreporting@txstate.edu fiaccountrequest@txstate.edu Angela BrandenbergerLisa Braun Accountant IVAssociate Director of Accounting 245-6129245-2770 ab59@txstate.edulb22@txstate.edu Thank you!