OUS Fiscal Policy Manual
Accounting and Financial Reporting
| Section: Accounting and Financial Reporting | Number: 05.110 |
| Title: Chart of Account Administration |
Index
POLICY
- .110 POLICY RATIONALE
- .120 AUTHORITY
- .130 APPROVAL AND EFFECTIVE DATE OF POLICY
- .140 KNOWLEDGE OF THIS POLICY
- .150 DEFINITIONS
- .160 RESPONSIBILITIES
- .170 IMPORTANCE OF BASELINE HIERARCHIES
- .180 CRITERIA FOR REVIEWING PROPOSED CHANGES TO THE BASELINE HIERARCHIES
- .690 CONTACT INFORMATION
- .695 HISTORY
APPENDIX
POLICY
The policy sets forth maintenance responsibilities for Banner FIS Chart of Accounts Administration for the Chancellor's Office and the Institutions.
The Banner FIS Chart of Accounts comprise the codes described in sections .150 DEFINITIONS and .160 RESPONSIBILITIES of this policy.
The Banner FIS Chart of Accounts has a baseline (baseline chart) which forms the structure of the OUS Accounting records. The term "baseline" refers to chart codes that must be uniform among all OUS institutions.
To ensure the integrity of System-wide financial and managerial reporting, OUS seeks to ensure that Chancellor's Office and Institutional duties and responsibilities associated with administration of the Chart of Accounts are documented, communicated, clearly understood, and consistently applied.
- ORS 351.085 - Duties and Powers of Chancellor
- OAR 580-040-0005 - Delegation and Assignment of Responsibility
- IMD 6.001 - Finance and Business Affairs Accounting Policies - Assignment of Responsibility
.130 APPROVAL AND EFFECTIVE DATE OF POLICY
This policy originated as part of the OSSHE Banner FIS Standard Practices & Policies (1994-1995). It was reformatted to the new OUS System-wide fiscal policy template on 11/13/03.
Sections .170 and .180 were added on June 7, 2006, to clarify the criteria used for reviewing proposed changes to the baseline chart.
All Chancellor's Office and institutional personnel with financial management responsibilities should be knowledgeable of this policy.
Account Code - An account code is used to identify an object of expenditure, revenue, transfer, and the General Ledger accounts (i.e., assets, liabilities, control accounts, fund balance accounts, and fund additions and deductions).
Account Type Code - An account type code is used to define account types, which are linked to user-defined account codes. This provides for a definition of each account (e.g., asset, liability, expense, etc.)
Activity Code - An activity code is used to identify financial activity.
Bank Code - A bank code is used to identify bank code-account relationships. It identifies and links bank funds and bank accounts with the cash accounts. The bank fund reflects the total cash for the institution as well as the individual components of the cash, whether by operating fund or by bank account.
Chart of Account Code - A chart of account code identifies a separate and distinct institution.
Control Account Code - A control account code is used to identify revenue, expense, transfer, and encumbrance.
Fund Code - A fund code is used to identify a fiscal and accounting entity with a self-balancing set of accounts.
Fund Type Code - A fund type code is used to define fund types, which are linked to user-defined fund codes. This provides for a definition of each fund for proper categorization (current unrestricted funds, current restricted funds, auxiliary funds, etc.).
Location Code - A location code is used to identify physical places or sites. It is primarily used with, but not limited to, the Fixed Asset module.
Organization Code - An organization code is used to identify a unique organizational budgetary unit, such as a department. Organization codes are created in a hierarchy so that reports can easily summarize a department's sub-units.
Program Code - A program code is used to identify an institutional function. These are functions which need to be tracked across all fund/organization/account combinations. Examples of program codes include research, public service, student services.
Rule Code - A rule code is used to define transaction processing rules, processes, and edits which determine how Banner Finance processes transactions and posts to the Finance ledgers.
Included in this section are chart of account elements, their Banner tables, and who has responsibility (the Chancellor's Office and/or the Institution) for maintenance for each.
Chart of Accounts Code Validation Table (FTMCOAS) - The Chancellor's Office has responsibility for maintaining the Chart of Accounts tables which will be standard for all institutions.
Fund Type Code Validation Table (FTMFTYP) -The Chancellor's Office has responsibility for maintaining the Fund Type tables which will be standard for all institutions.
Fund Code Validation Table (FTMFUND) - The Chancellor's Office and the Institutions have joint responsibility for the Fund table. The higher levels of the Fund, defined as the "OUS Level," will be standard for all institutions and will be updated only by the Chancellor's Office. Below the OUS Level, institutions will have the authority to add additional Funds as long as they roll up appropriately to the OUS Level code. See Appendix .700 to view the baseline fund hierarchy.
Organization Code Validation Table (FTMORGN) - Institutions have responsibility for maintaining their own Organization tables. The highest level Organization for all institutions will be the Institution.
Control Account Code Validation Table (FTMACTL) - The Chancellor's Office has responsibility for maintaining the Control Account tables which will be standard for all institutions.
Account Type Code Validation Table (FTMATYP) - The Chancellor's Office has responsibility for maintaining the Account Type tables which will be standard for all institutions.
Account Code Validation Table (FTMACCT) - The Chancellor's Office has responsibility for maintaining the Account tables which will be standard for all institutions. See Appendix .700 to view the baseline account hierarchy.
Program Code Validation Table (FTMPROG) - The Chancellor's Office and the Institutions have joint responsibility for the Program table. The higher levels of the Program, defined as the "OUS Level," will be standard for all institutions and will be updated only by the Chancellor's Office. Below the OUS Level, institutions will have the authority to add additional Programs as long as they roll up appropriately to the OUS Level code. See Appendix .700 to view the baseline program hierarchy.
Activity Code Validation Table (FTMACTV) - Institutions have responsibility for maintaining their own Activity tables.
Location Code Validation Table (FTMLOCN) - The Chancellor's Office and the Institutions have joint responsibility for the Location table. The two highest levels of the Location, defined as the "OUS Level," will be standard for all institutions and will be updated only by the Chancellor's Office. Below the OUS Level, institutions will have the authority to add additional Locations as long as they roll up appropriately to the OUS Level code.
Bank Code Rules (GXRBANK) - The Chancellor's Office has responsibility for maintaining the Bank tables which will be standard for all institutions.
Rule Code Tables (FTVRUCL, FTVRULP, and FTVEDIT) - The Chancellor's Office has responsibility for maintaining the Rule Code tables which will be standard for all institutions.
.170 IMPORTANCE OF BASELINE CHART
The baseline chart must not only be uniform among all OUS institutions, but it must also be consistent from year to year. Changes to the baseline chart can create inconsistencies and complicate the comparison of activity and balances from year to year. As a result, changes to the structure of the baseline chart, while occasionally necessary, are infrequent and unusual.
.180 CRITERIA FOR REVIEWING PROPOSED CHANGES TO THE BASELINE CHART
The Controller's Division has the final authority to approve changes to the baseline chart. The following criteria is used to review proposed changes to the baseline chart:
Objective of the request
The request must clearly explain the problem(s) one is trying to solve and the expected outcome(s) that will be accomplished from the requested change.
Impact on current or future reporting requirements
The requested change must accommodate all existing internal and external reporting requirements, e.g., Financial Reporting - such as:
- Annual financial statements, IPEDs, other
- Managerial Reporting and Cost Accounting
- F&A Rate Proposals
- Budgeting information
- Legislative requests for information.
Impact on NACUBO accounting structure
The requested change must fit the chart of accounts structure recommended by the National Association of College and University Business Officers (NACUBO).
Use of appropriate Banner code(s)
The request must not result in using one code to account for something that by definition should be accounted for by a different code. New codes are not added to the baseline chart if the data that would be tracked by the new codes is already available within the existing structure.
Feasibility of the request
The requested change must be workable within Banner FIS. Requested changes to codes that interface with other Banner systems must be sufficiently detailed to show that the change will work within Banner FIS.
Other ramifications of the request
The request must identify ramifications to other fiscal and accounting operations including legal compliance, fiscal monitoring, financial analysis, etc.
Impact on other institutions
The requested change must be agreeable by other OUS institutions. However, in some cases the baseline chart must be changed regardless of institutional agreement to accommodate requirements of outside entities such as GASB, NACUBO, State of Oregon, etc.
Timing of implementation
The requested change must be implemented by all OUS institutions at the same time. Changes to the baseline chart will usually only be implemented at the beginning of a new fiscal year. Requests for mid-year changes may be considered on an exception basis. To ensure sufficient review, proposed changes to the baseline chart must be submitted for approval at least three months before they are to be implemented.
Direct questions about this policy to the following offices:
| Subject | Contact |
| General questions from institutional personnel | Institution Office of Business Affairs |
| General questions from institutional central administration and Chancellor's Office personnel | Chancellor's Office Controller's Division |
1994-1995 - Approved as part of the OSSHE Banner FIS Standard Practices & Policies
11/13/03 - Reformatted
06/07/06 - Additions of Sections .170 and.180
08/25/06 - Additions Approved
10/30/06 - Policy Renumbered
Policy Last Updated: 10/30/06
APPENDIX
Index
.700 OUS BASELINE HIERARCHIES
.710 UPDATE PROCEDURES
.720 FORM
The following files link to the OUS baseline production version of the respective Banner FIS Tables (OSBA) and reflect the current chart structure. The hierarchies are color coded to easily view the various levels within each chart structure.
1. Institutions that require additions and/or changes to the baseline chart must request these revisions from the Controller's Division of the Chancellor's Office.
- Institutional requests must have the approval of institutional business affairs offices
- Requests shall be either in hard copy (paper) or e-mail. The form "FIS Chart of Accounts Element Request" found in Appendix .720 can be used to request changes.
- In addition to the criteria described in section .180 above, requests to change the baseline chart should include the following information:
- Indicate "New" COA element or "Change" to an existing COA element
- COA element title
- COA element number (if change to existing COA element)
- Description of COA element
- Predecessor COA element
- Requested by
- Institutional Business Affairs approval
2. Controller's Division will convey revisions to the OUS Level COA element to the Directors of Business Affairs for system-wide approval (formerly approved by the Financial Data and Software Standards Group)
3. If revisions are approved by the Directors of Business Affairs, the Controller's Division will update all FIS databases with the appropriate changes and will notify institutional business offices by mail or e-mail.
The updated procedures are represented in the following diagram:
FIS Chart of Accounts Element Request Form
Appendix Last Updated: 08/25/06
