Financial Management Operational Guidelines (FMOG)

Section 3: Fund Accounting Principles

Chart of Accounts

Effective: 05/19/11 Approved By: Associate Vice President for Financial Affairs
Revised: 02/21/17
For Assistance Contact: Accounting Services

PURPOSE/SCOPE

To provide an overview of the UTSA Chart of Accounts.

AUTHORITY

UTS142.01

National Association of College and University Business Officers (NACUBO) Financial Accounting and Reporting Manual for Higher Education Chapter 703 "Functional Expense Classifications".

UNIVERSITY GUIDELINES

Table of Contents
  1. Fund Accounting
  2. Chart of Accounts
    1. Fund
    2. Account ID (nature of the financial transaction)
    3. Function (functional expense classification)
    4. Department ID
    5. Cost Center
    6. Project ID
    7. Activity ID

A. Fund Accounting

Universities have unique obligations to regulatory agencies, grantors, donors, external customers, and other stakeholders to account for the appropriate use of funds according to their source. Fund accounting is used to accomplish this by segregating resources into categories (Funds) to identify the sources and uses of funds received. This helps UTSA to appropriately account for the funds with which it is entrusted by reporting income based on the source of funds and expenses based on their use.

Fund accounting helps UTSA:

  1. Enhance accountability and stewardship by carrying out and documenting the appropriate use of funds to help ensure and demonstrate compliance with legal and regulatory requirements;
  2. Determine financial condition by tracking the value of assets and assessing the financial impact of maintaining/replacing them;
  3. Facilitate planning and budgeting by determining what should be done with existing resources, and how much is needed to accomplish goals;
  4. Evaluate organizational and managerial performance by determining the actual cost of programs (efficiency) and whether the objectives for which the funds were received were accomplished (effectiveness);
  5. Determine/forecast cash flow (the amount of cash coming in, and how much is needed for contingencies); and
  6. Communicate relevant, clear, reliable, timely and comparable financial information to all who need to know.

B. Chart of Accounts

The Chart of Accounts is the foundation of the UTSA financial accounting system. The Chart of Accounts provides each fund, department, Cost Center, project and grant with a unique numbering system and a common language for identifying financial transactions. The basic unit of the UTSA Chart of Accounts is the Chartfield. A Chartfield is an individual component or field which, when combined with other Chartfields, defines the accounting structure. The combination or grouping of Chartfields is called a Chartfield string. An individual SpeedChart (Speedtype), which is generally the same as the Cost Center or Project ID, will be associated with a specific Chartfield string. The Chartfield string provides financial information for UTSA departments and other units for reporting and tracking purposes. Following are the Chartfields used in the UTSA financial accounting system.

1. Fund

Funds form the basis of fund accounting, enabling UTSA to properly account for sources and uses of funds received. UTSA uses the following Funds:

Fund Purpose Source of Funds Restrictions
21xx
Educational and General (E&G)
To support general educational operations. Activities typically include faculty salaries, instructional department operating expenses, general administration, student services, campus security, operation and maintenance of E&G facilities, and research enhancement.
  • State appropriations
  • Statutory tuition
  • Certain lab fees
  • Designated funds (transfer from designated tuition and other fee income)
  • State pass-through grants
  • No scholarships except need based and certain State grants
  • No auxiliary enterprise expenses
  • No out-of-state travel for student recruitment
  • No intercollegiate athletic expenses
  • No flowers for employees or friends/families of employees
  • No alumni activities
  • No alcohol
  • Award requirements (state pass-through grants)
3200
Designated -
Service Centers
Ongoing operations that sell products and provide technical or administrative services to the UTSA community and external customers. Examples: Facilities, telephone services, animal care. See fmog.0602.utsa.
  • Income from sales and services charged to internal (UTSA departments) and external customers. If 80% or more of income is from internal customers, all revenue and expenses including those related to external customers are recorded in the Service Center Fund; otherwise a separate Designated Fund Cost Center is established for external customers.
  • Not profit/loss centers: rates charged must be based on historical cost or analysis of reasonable, projected costs
  • Must break even or operate within +/- 10% margin at year-end
  • Billing rates: see fmog.0602.utsa
  • All users must be charged
  • External customers must not be charged less than internal customers or the federal government for the same service
  • UTSA purchasing procedures
  • No gift income
  • No entertainment expenditures
  • No scholarships
  • Income/expenses must be matched
  • Service Centers must be reviewed periodically to assure no excess balances
  • t2CFR200.ecfr
31xx
Designated Funds
To support UTSA activities or special purposes for which revenue has been authorized.
  • Designated tuition
  • Mandatory fees (other than auxiliary)
  • Incidental fees (including course fees)
  • Miscellaneous other income
  • Indirect cost recovery from sponsored projects (Facilities & Administrative F&A – see fmog.0601.utsa
  • Service Center income and expenditure for service centers with more than 20% of income from external customers
  • UTSA purchasing procedures
  • Entertainment expenditures only from Official Occasions Cost Centers or revenue specifically assessed to cover cost of meals or other related expenses: see fmog.0701.utsa
  • No gift income (exceptions approved by University Controller)
  • Travel subject to maximum allowable rates: see fmog.0904.uts)
  • Individual professional organization memberships: see fmog.0702.utsa
5100-5499
Grants and Contracts
To provide support for research or educational programs as specified by sponsors or agencies, usually federal research or student financial aid. Federal, state, local and private grants, contracts and agreements (majority is federal)
4xxx
Auxiliary Enterprises
To furnish goods/services to students, faculty or staff outside the instruction and research functions of UTSA. Examples: residence halls, food service, book store, parking, intercollegiate athletics.
  • Fees charged directly related to, but not necessarily equal to, the cost of the goods or services provided
  • Mandatory and non-mandatory student fees
  • UTSA purchasing procedures
  • Travel subject to maximum allowable rates: see fmog.0904.utsa
  • Individual professional organization memberships: see fmog.0702.utsa
5500 – 5699
Restricted/Gift Funds
To record receipts and expenditures of funds received from donors and external agencies in accordance with any donor restrictions.
  • Gifts
  • Endowment distributions (majority is for scholarships and salary supplements for endowed chairs)
  • UTSA purchasing procedures
  • Donor intent
  • Travel subject to maximum allowable ratesL see fmog.0904.utsa
  • Entertainment expenditures: see fmog.0701.utsa
  • Individual professional organization memberships: see fmog.0702.utsa
8100
Loan Funds
To account for loans to students (short-term and long-term). Most are revolving funds: repaid principal, interest, and other charges are returned to the individual loan fund making funds available for future loans.
  • Gifts
  • Texas Public Education Grant (TPEG)
  • Institutional contributions and matching funds
  • Interest income on principal loaned
  • Late fees net of collection costs
  • Investment income
  • UTSA purchasing procedures
  • Only collection costs including litigation expenses, write-offs and certain other expenditures allowed
  • Perkins/NDSL Federal Student Loan funds are governed by Department of Education guidelines and federal regulations
71xx
Unexpended Plant
Major capital improvement projects for new construction, deferred maintenance, remodeling and renovations to existing buildings and grounds, and development of capitalizable intangible assets such as internally-generated software. See fmog.0501.utsa, fmog.5.16.1.utsa, and fmog.5.16.2.utsa
  • Distributions from bond proceeds
  • Permanent University Fund (including LERR-STARs)
  • Revenue Financing System
  • Designated, Gift and Auxiliary Enterprise fund transfers
  • UTSA purchasing procedures
  • No salaries (but may be transferred in as distributed wages)
  • Travel rarely used
  • No entertainment expenditures
  • Expenditures must be within approved scope of project
  • LERR and Faculty STARs:
  • Capital equipment is non-expendable, tangible personal property with useful life of more than one year
  • No charges for capital equipment warranties or maintenance agreements
  • No software maintenance costs (bundled software included in initial acquisition of computer hardware is eligible)
  • Leased or licensed software that requires payment of an annual fee and that will not be owned when license expires is not eligible (software licenses with a useful life of more than one year that will be owned are eligible)
  • No faculty salaries
  • No student housing, intercollegiate athletics or auxiliary enterprises
75xx
Investment in Plant
Carries fixed assets:
  • Land
  • Buildings (new, under construction, additions to existing)
  • Facilities and other improvements
  • Equipment
  • Library books
  • Museum and art collections
  • Construction in progress
  • Infrastructure
  • Intangible assets
  • Accumulated depreciation and amortization
Assets are purchased and expensed in other funds. Not applicable (no expenditures except for amortization and depreciation expense)
76xx
Investment in PlantOther
Funds associated with the issuing of bonds.
  • Issuance Costs
  • Proceeds of bonds payable
Bond covenants and applicable State and other requirements
9200
Agency
Funds held in custody for others. Example: student organizations. Residual funds should be returned to the sponsor once the purpose for the Agency Cost Center is accomplished. For more information on Agency funds see fmog.0303.utsa. N/A (these funds do not belong to UTSA) N/A (these funds do not belong to UTSA)
9910
Clearing Accounts
Funds held temporarily N/A N/A

For more information on Fund purposes, funding and restrictions contact Accounting Services.

2. Account ID (nature of the financial transaction)
Account ID is an important element of the Chart of Accounts because it is used to identify the nature of the transaction for financial reporting. The function of this five-digit Chartfield is to classify the following:
  • 1xxxx = Assets
  • 2xxxx = Liabilities
  • 3xxxx = Fund Equity
  • 4xxxx = Revenue
  • 5xxxx = Expense (Salary, Wages, Benefits)
  • 6xxxx = Expense
  • 7xxxx = Transfers
  • 8xxxx = Capital Assets
  • 9xxxx = Suspense

EXAMPLE: The Account ID for Office Supplies is 63003. The Account ID begins with “6,” classifying the transaction as an expense.

3. Function (functional expense classification)

In contrast with Account IDs, which indicate the object of an expense (supplies, equipment, salaries, etc.), Function codes are three-digit values that enable UTSA to report expenses in a way that helps stakeholders understand UTSA's mission-related activities and their relative importance.

UTSA uses the following Functions in accordance with the functional expense classifications developed by the NACUBO.link to indicate the mission-related purpose of expenses:
Function Description
100–Instruction Expenses for instructional programs, including credit and non-credit courses; academic, vocational, and technical instruction; remedial and tutorial instruction; and regular, special, and extension sessions. Expenses for departmental research and public service that are not separately budgeted are included in this classification.
200-Research Organized research activities, whether commissioned by external agencies or budgeted by a unit within UTSA. Subject to these conditions, the category includes expenses for individual and/or project research as well as that of institutes and research centers. Expenses for departmental research that are separately budgeted are included in this category.
300-Public Service Non-instructional services that primarily benefit individuals and groups outside UTSA, such as conferences, institutes, general advisory services, reference bureaus, radio and television, consulting, extension services, and other community service activities.
400-Academic Support Support services for the primary missions of instruction, research, and public service. When information technology resources are not separately accounted for, the costs associated with the three primary missions is classified as academic support and the remainder is institutional support. Academic support also includes libraries, museums and galleries, media such as audio-visual services and information technology, academic administration and personnel providing administrative support and management direction to the primary missions, separately budgeted support for course and curriculum development, and other ancillary support services that directly assist the academic functions of the institution.
500-Auxiliary Activities that provide goods or services primarily to students, faculty, and staff, and charge a fee that is directly related to the cost of the goods or services. The distinguishing characteristic of an auxiliary enterprise is that it is managed to operate as a self-supporting activity. Over time the revenues will equal or exceed expenses. Examples include residence halls, food service, college stores, parking and intercollegiate athletics.
600-Student Services Activities outside the context of a formal instructional program that contribute to students’ emotional and physical well-being and intellectual, cultural, and social development. Includes programs such as student services administration, counseling and career guidance, cultural events, student activities, student newspaper, intramural athletics, student organizations, financial aid administration, student health services, student admissions, student records, and other activities that benefit students outside of formal instructional programs.
700-Institutional Support Management and long-range planning for the entire university. Includes executive management, planning and programming operations, legal services, fiscal operations, administrative information technology (when information technology resources are not separately accounted for, the costs associated with the three primary missions is classified as academic support and the remainder is institutional support), space management, employee personnel and records, logistical activities that provide procurement, storerooms, printing, activities concerned with community and alumni relations, including development and fund raising and other activities that provide university-wide support.
800-Operation and Maintenance of Plant The administration, supervision, operation, maintenance, preservation and protection of UTSA’s physical plant. Includes janitorial and utility services; repairs and ordinary or normal alterations of buildings, furniture, and equipment; landscape and grounds maintenance; utilities; security and safety; hazardous waste disposal; property, liability, and all other insurance relating to property; space and capital leasing; facility planning and management; and central receiving.
997-Scholarships and Fellowships Scholarships and fellowships. Includes grants-in-aid, trainee stipends, tuition and fee waivers, and prizes to undergraduate students.

The expenses in the Statement of Revenues, Expenses and Changes in Net Position in the UTSA Annual Financial Report are reported by Function.

4. Department ID

Department ID is a six-character designation that allows responsibility identification and establishes organizational hierarchy for reporting purposes. Department IDs indicate the department, division or college to which a Cost Center or Project ID belongs, and they form the basis for departmental budgets. The first three characters are generally letters denoting the department, division or college, and the remaining characters are assigned to individual Account IDs.
EXAMPLE: The Department IDs for Academic Affairs are ACA001-ACA999.

5. Cost Center
Cost Center is a six-character Chartfield that represents non-sponsored or non-plant related funds. The Chartfield combination you may see associated with a Cost Center can include the Department ID + Activity + Program. Cost Center designations vary by Fund.
EXAMPLE: The format for E&G (see “Fund”) Cost Centers are EGxxxx. Capital projects and sponsored projects do not generally have Cost Centers; the Project ID serves a similar purpose for these projects (cost-sharing projects may have both a Cost Center and a Project ID). Cost Centers correspond to DEFINE (legacy system) Budget Groups for converted accounts to facilitate the transition from DEFINE to UTShare/PeopleSoft.

6. Project ID

The Project ID allows us to organize information to facilitate project management, reporting, analysis and accounting for Capital Projects and Grant (Sponsored) Projects. Each Project ID is associated with an Activity ID (see “Activity ID”).

Capital projects are identified by an eight-character Project ID. Project IDs for capital projects converted from DEFINE are in this format: SC + last six digits of DEFINE Budget Group (institutional Project IDs may have a slightly different format for deferred maintenance and renovation projects).

Project IDs for new projects managed by UT System Office of Facilities Planning and Construction (OFPC) are in this format: S + OFPC Project Number + Alpha Character. For example: Project # 401-999 will have S401999A as its Project ID.

Project IDs for new projects managed by UTSA are in the format: S + last seven digits of the project work order number. For example: Work order PP-21902223 will have S1902223 as its Project ID.

Project IDs for sponsored projects generally have ten-character Project IDs. New Account IDs have sequential numeric Project IDs, while Project IDs for Account IDs converted from DEFINE are in this format: 3 + DEFINE Budget Group + 0.

NOTE: The SpeedChart (Speedtype) for Sponsored Projects that involve Cost Sharing will have a “C” as the last character.

7. Activity ID
Capital projects will have a two-character alpha or numeric Activity ID.

For converted capital projects that are institutionally managed, the Activity ID is numeric and the DEFINE sub-account is the Activity Description.

Converted capital projects and new capital projects managed by OFPC use a standard Activity ID and Activity Description as shown below.

Activity ID Activity Description
OM OFPC Managed
IM Institutionally Managed
CI Capitalized Interest

All sponsored projects have an Activity ID of “1” (Activity is not significant for sponsored projects).

RELATED FORMS

  1. Chart of Accounts Maintenance Request Form
  2. Chart of Accounts Maintenance Request Form Instructions

REVISION HISTORY

Date Description
02/21/17 Updated Fund Chart under Restrictions section.
07/14/16 Updated UT System policy UTS142.1 link under authority section. Updated Fund Chart. Updated UT System policy UTS142.1 in references and links section.
04/12/16 Updated DEFINE information for transition to PeopleSoft.
01/09/15 Updated broken links.
09/23/14 Update to Chart of Accounts section B.

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