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Chart of Accounts Maintenance SOP: Chart of Accounts, Account (new account request andaccount maintenance / edit)SOP Owner: Chart Manager, General AccountingVersion Number, Date Revised: #11, 09/2014Date Implemented:Approval(s):Standard Operating Procedure1. PurposeAn account identifies a pool of funds assigned to a specific university organizational entityfor a specific purpose. Accounts are the fundamental building blocks of KFS transactions, sinceone or more of them are always associated with a transaction. Account e-doc is used to createnew accounts, or to edit or copy existing accounts. Note: Asset and liability activity in KFS willbe processed on a pre-determined range of object codes, and the transactions are charged tooperating accounts.2. ScopeThe intended audience is: Anyone who has a need to track financial activity at the university (Requestor) Person who starts the KFS Account e-doc (Initiator)Note: Requestor and Initiator could be the same person. Anyone in a Financial Transaction Center (FTC) / Business Service Center (BSC) Anyone with financial / budgetary responsibilities (at the college / division leveland at a central level)o Budget directoro Senior financial officero Central accounting3. Prerequisites (Forms / Tools) Access to KFSTraining on KFSAccount e-doc tutorialUnderstanding when / why it is appropriate to set up a new accountCornell-specific business rules: acceptable combinations of, for example: sub-fundand higher education function codes, as well as other account attributes (See:Cornell-specific Business Rules for Account Setup; note: link provided is atemporary location and will be updated when a permanent location is established.)Clarification on permissions / roles1

4. University PolicyCurrent 3.1 Accepting University Gifts (Note: per policy, only authorized Alumni Affairsand Development staff members or their designees can accept gifts on behalf of theuniversity.)3.22 Accepting Cash and Checks4.7 Retention of University Records [see Scanning /Attaching, below]5.10 Information SecurityPetty Cash PolicyAgency PolicyRecharge Account PolicyFringe PolicySponsored Account Policy5. ResponsibilitiesPersonnel in the following roles / positions: Requestor (not a system role): best practice recommendation: to establish a papertrail, requests for new accounts should be e-mailed to the Initiator. Initiator:o has financial expertise (i.e., has a financial role in his / her job title);o has access to the system;o has been authorized by Senior Finance Group as an Initiator;o can validate that the new account being set up (or current account beingmodified) is appropriate per Cornell business rules;o has the ability to provide 100% of the data required to successfully fill outand submit the Account e-doc; ando is the person who will respond to any follow-up questions.In cases where the Initiator and Requestor is not the same person, Initiatorconfirms that there is a valid business reason for account being requested, and thatRequestor has the authority to make the request. Best Practice recommendation:Initiator should notify Requestor by e-mail when account is set up. Fiscal Officer / delegate (delegates: both primary and secondary):o Person who is responsible for final approval of the new account.Gift- Note: AA&D will initiate the invested fund gift accounts. For LTIP gift accountsAA&D will enter a temporary holding income account in the Endowment IncomeNumber field in KFS, an attribute of the account (G053000 will be used for URincome and G058000 will be used for TR income). The Endowment IncomeNumber will be updated by General Accounting when the income account isapproved.2

AA&D will notify a designated person(s) within each college informing them thata new endowment has been received and a LTIP income account needs to becreated.When the income account is initiated, the income account should be routed as an“Ad-Hoc Recipients”, as an FYI, to Bronwyn O’Brien (beo7). GeneralAccounting (Bronwyn) will then update the temporary holding account with thenew income account when it is approved in KFS. (FYI - the income account needsto be an existing KFS account before it can be entered in the Endowment IncomeNumber field).Sub-fund reviewer (central role based on sub-fund of account requested): verifiesall attributes and account information, and provides final approval; see page 21,Workflow.Best Practice recommendations: If additional review is deemed necessary, ad hoc route as appropriate. If changes are made to the submitted Account e-doc at any point in the routingprocess, ad hoc route an FYI to the Initiator.Note: KFS does not automatically set up delegation. Best Practice recommendation: whencreating a new account, use an account delegation e-doc to set up delegation. [See AccountDelegate and Account Delegate Global SOPs for additional information.]6. ProcedureAccount e-doc is located on Main Menu:Lookup and Maintenance section.Figure 1 – Chart of Accounts, Lookup and Maintenance e-docsHeading descriptions (for new accounts and modified accounts) should be written with KFSsearch functionality in mind. Best Practice recommendation: enter a description that is bothconcise and consistent. The following descriptions demonstrate wording that could be used whenmodifying an account: Attached back-up documentation, or Correct attribute for . Change fiscal officer.3

Scanning / AttachingOriginal documentation can be scanned and attached to the e-doc. (Original documentation isdefined as e-mails, memos, etc., that adequately supports the request.) Note: it is important todistinguish between necessary / relevant information and extraneous information.Best Practice recommendation: attach relevant and specific information. Per policy, sensitive datamust never be attached. For additional information on scanning and attaching, see the FinancialProcessing Overview SOP.Document Overview, Notes and Attachments, Ad Hoc Recipients, and Route Log tabs arestandard on most KFS e-docs; they will be covered in the “Basics” series of tutorials.Figure 2 - Account Lookup (A tutorial that demonstrates “Lookup” functionality is available.)How to Initiate an Account e-doc:2. Create newChoose Account e-doc from main menu. When the Account Lookup screen opens, usethe create new button (found on the upper right-hand corner of the e-doc, as indicated inFigure 2, above). A new Account e-doc will open and the user will fill in all requiredfields and information, per the type of account you are creating.4

The user can opt to fill in each field on an account e-doc, or, can use the attributes of anexisting account to pre-fill the required fields for the new account (which then can bemodified—see 3. below, for edit and copy information).3. Edit or copy an existing accountChoose the Account e-doc from the main menu and use the Account Lookup to find thespecific Account you need to edit or copy. A Search will return accounts with the optionto either edit or copy the account. Training Issue: copying an account allows you touse an existing account as a template in order to create a new one. It is important toreview attributes to confirm that they are appropriate to the new account requested.Figure3 – Example: choosing edit or copy opens “Old / Original” and “New”Whether or not you are creating new, editing, or copying, you will need to complete all fields inall tabs based on business rules for the type of account you are creating, copying, or editing.5

Account Maintenance tab: Fields on this tab define the various account attributes used in theapplication of business rules for: transactions using the account, reporting options,approval routing, etc.Figure 4 - Account Maintenance tab [note: maximum number of characters per field is indicated, where applicable,throughout the Field Definition Tables that follow]Table 1 Account Maintenance tab: field definitionsField NameDescription (* indicates a required field)Chart Code* Enter the code or search for it from the Chart lookup. There will be fiveKFS charts within the chart of accounts, but the Ithaca chart (IT) is the onemost of campus will access and use. Data concepts are the same among thecharts, but values like accounts and object codes may be different. Thecharts map at a high level for consolidated financial reporting.Account Number* Enter a unique value to identify a pool of funds assigned to a specificinstitution entity for a specific function. [7 characters]6

Account Name* Enter the familiar title of a specific account [40 characters]Account names should be upper / lower case and without punctuation;avoid uncommon acronyms (if space allows).Naming conventions are:—For research project accounts, federal appropriation accounts, facultydiscretionary accounts, gift / donor accounts: last name, first name, accountpurpose.—For gift / donor accounts with multiple or anonymous donors: purposename(s).—For Contracts and Grants (C&G) accounts: Agency Name, OSP #,Project short name. (If none of the above, use the main purpose of theaccount as the account name.)Organization Code* Enter the number for the organization to which the account belongs, orsearch for it from the Organization lookup. [4 characters]Each organization has a unique, alphanumeric, 4-character code.The first 2 characters are pre-assigned (e.g.,01XX - College of Agriculture and Life Sciences;24XX - School of Hotel Administration;42XX - Student and Academic Services);third and fourth characters will be assigned by the unit.Campus Code* Select the physical campus on which the account is located from thedrop-down list, or search for it from the lookup.Account Effective* Enter the date that the account became effective (i.e., ready to acceptDatetransactions). [date format]Training Issue: an account may be used on financial transactions beforeits effective date.Sponsored Activity: The Account Effective Date is the agreement startdate. If pre-award spending is approved, the account may still be utilized.Account ExpirationEnter the date that the account expires (note: you can use the expiringDateaccount up to 90 days after it expires). Business rules on transactions mayprevent the use of expired accounts or provide warnings when an expiredaccount is being used; e.g., a system-generated prompt will ask whether ornot you want to post to the continuation account or the expired account.Training Issue: date must be equal to or greater than the current date andcannot be before the Account Effective Date. If it is not blank, thecontinuation Chart of Accounts code and continuation account number arerequired. [date format]Sponsored Activity: The Account Expiration Date is the agreement enddate. If the project is incrementally funded, the expiration date equals thebudgeted period end date. Please see Attachment 1 for information onfinancial processing using expired account.Account Postal Code * Enter the postal code assigned by the U.S. Postal Service for the citywhere the account is managed, or search for it from the lookup. Currently,information entered in this field is not validated.Account City Name * Enter the city where the account is managed. Currently, informationentered in this field is not validated.7

Account State CodeAccount StreetAddressAccount OffCampus IndicatorClosed?Account Type CodeSub-Fund GroupCode* Enter the code for the state where the account is managed, or search for itfrom the lookup. Currently, information entered in this field is notvalidated.* Enter the street address where the account is managed. [30 characters]Currently, information entered in this field is not validated.Select the check box if the account activities occur off-campus; clear thecheck box if they do not.Select the check box if the ICR associated with the account reflects anoff-campus rate (off-campus rates often differ from regular on-campusrates). Clear the check box if it does not.Do not check unless necessary for sponsored programs. For CGaccounts, “Off Campus” is any activity that is performed at a locationwith neither the use nor aid of university-operated facilities, whetherowned or leased. University operated means the university isresponsible for the costs of maintenance, custodial services and utilities.For example, a field study involving an archaeological dig in theAdirondacks is off-campus; laboratory research performed at Oxford isoff-campus; research at the university-owned and operated facility onLong Island is on-campus. G e n e r a l l y , a l l l o c a t i o n s i nT o m p k i n s C o u n t y , N Y a r e c o n s i d e r e d o n c a m p u s . Normaloff-campus locations would be at distances where reasonable access toor use of university-owned and / or operated facilities is not feasible.Campus is left undefined to provide room for reasonable interpretationof the facts in each case. Occasional use of facilities away from themain campus will not, in and of itself, lead to designating a project asoff- campus. For all other purposes this box should not be checked.Select the check box if the account is closed; clear the check box if it isopen. Note: an account with pending entries cannot be closed and youcannot post to a closed account (an error message is generated).Closing an account is more permanent than expiring—no transactions canuse a closed account, and a closed account can only be reopened by asystem supervisor.* Select from the Account Type list, or search for it from the lookup.EN EndowedCC Contract CollegesMC Weill Cornell Medical CollegeCS Consolidated Subs and EliminationsFS Financial Statements* Enter the code that relates an account to a fund (i.e., describes the sourceof funding for the account), or search for it from the Sub-Fund Grouplookup. Examples are continuing education accounts, scholarships andfellowships, and general funds. [6 characters]Sub-Fund Group Code defines the type, purpose, or source of funds thatare found in that account. It can also be used for reporting purposes and indefining business rules. Choices will be limited to a predetermined list.8

Sub-Fund ProgramCodeAppropriationAccount NumberMajorReportingCategory CodeAn additional attribute that identifies the specific program providing thefunds; example: Smith-Lever.This field is conditionally optional; it will be required based on sub-fundgroup. Choices will be limited to a predetermined list.Use this field to add either a SUNY account number or a FederalAccession Number. An account will be associated with either a Federal orState appropriation account number, but not both.Appropriation Account Number is associated with Sub-Fund Group Code;if a Sub-Fund Group Code is not entered, a value cannot be entered in thisfield.Enable (a) preparation of FY13 financial budget (b) management andmonitoring of in-year financial activity and fund balances (c) year-endreporting and, (d) pinpointing academic unit stress points and use ofreserves.In order to effectively meet the above noted business objectives, collegesand central units (Provost, Budget Office) have a need to understand thescale of activities and fund balances that are controlled by variousstakeholders including, but not limited to, those controlled by Deans,Departments, Faculty and Students. In addition there is a need to be ableto identify what major activities these fund balances are earmarked for.Account FringeBenefitSelect the check boxes if this account allows fringe benefits charges;clear the check box if it does not.If the check box is not selected, a fringe benefits chart and fringe benefitsaccount must be supplied to indicate where these charges should be posted(and fringe benefits account number must have been set up with theaccount fringe benefits code selected).When you establish an account, it automatically defaults to allow fringebenefits. Exceptions would be based on agreements. If the box isunchecked, you will need to provide a fringe benefits account. The rate isbased on the attributes of the account and on the labor object code relatedto a person’s appointment. There can be exceptions, such as externalagreements that disallow fringe, in which case the default check boxshould be cleared and an account provided to which the benefits can beexpensed. If, based on the attributes of the account, the fringe benefit rateis 0% (examples: Contract Colleges general purpose, designated, somerestricted gift, state appropriations, and endowment earnings), it is notnecessary to clear the check box and provide another account.Fringe Benefit Chartof Accounts CodeFringe BenefitAccount NumberSelect the chart code for the fringe benefits account from the list, or use thelookup.Enter the account that accepts fringe benefits charges from the list, or usethe lookup.9

Higher EducationFunction CodeAccount RestrictedStatus CodeAccount RestrictedStatus DateEndowment Chart ofAccounts Code* Enter the code, if known, to classify the purpose of the account, or searchfor it from the Higher Education Function Code lookup. [4 characters]The code indicates whether the activities associated with an account are forpurposes such as instruction, research, or outreach. This is a searchablefield that will allow the user to choose the correct Higher EducationFunction Code from a predetermined set of selections. In those instanceswhere multiple functions are being used within one account, select thefunction code that maps to the primary function. Whatever is selectedneeds to fit the description of the account. (See Account Purpose Text fieldon page 16, Figure 6, Guidelines and Purpose tab)* Select the account restricted status code from the list.This code indicates whether funds in the account are:T Temporarily restricted (Including Sponsored gifts)R RestrictedU UnrestrictedIf ‘T’ (Temporarily restricted), then an Account Restricted Status Date(below) is a required field. If the sub-fund associated with the account hasa Restricted status code (R), the field pre-fills and is not editable.Required if the Account Restricted Status Code is ‘T.’ This date signifieswhen the funds are targeted to become unrestricted. [date format]If “T” (Temporarily restricted), define a date for periodic review in orderto ensure that the donor’s restrictions are being enforced.Best Practice recommendation: there should be continuing oversight /review to ensure that the donor’s intent is being met, or, whether or not therestrictions can be lifted.Training Issue: date entered should be 3 years out for temporarilyrestricted gifts and 10 years out for endowment income accounts. Note: thedate in this field is not validated, and the status will not change when theexpiration date is reached; it should be used as a review date.Select the COA code from the list (or search for it from the lookup) for theaccount designated to receive income generated from an endowmentaccount or for the guarantee account for underwriting C&G accounts.Endowment Account Enter the account designated to receive income generated from anNumberendowment account or the guarantee account for underwriting C&Gaccounts, or search for it from the lookup.10

Labor Benefit RateCategory CodeDefines the default benefit rate category code on the account maintenancedocument by account type.Account Type EN Labor Benefit Rate Category of ENAccount Type CC – Labor Benefit Rate Category of:CC: Contract College Benefits: 0% Fringe(Contract Collegesgeneral purpose, designated, some restricted gift, stateappropriations, and endowment earnings)FD: Contract College Fed Rates (Federal and Federal Flow ThoughFunding)NF: Contract College Non-Fed rate (NonFederal Funding)Account Responsibility tab: The fields on this tab define the individual responsiblefor the account, as well as continuation account information and sufficient fundsparameters.Figure 5 - Account Responsibility tab11

Table 2 Account Responsibility tab: field definitionsField NameDescription (* indicates a required field)Fiscal Officer Principal* Enter the Cornell NetID of the individual who is responsible for theNamefinancial transactions of a particular account and ensuring that they arecompliant with university policies and procedures, or search for it fromthe lookup. [10 characters]Default is the Financial Transaction Center (FTC) Director who works inconjunction with College / Division Business Officer to define delegationfor their unit. Note: FO cannot be the same person as the accountsupervisor.Account Supervisor* Enter the Cornell NetID of the account supervisor, or search for it fromPrincipal Namethe lookup. The supervisor oversees the management of the account at ahigher level than the FO, but rarely receives any direct requests for actionfrom KFS. [10 characters]Note: account supervisor cannot be the same person as the FO orthe account manager.This individual is not part of the workflow, but will receive an FYI whenan account is established or changed. Typically this role might beassigned to the departmental financial manager. Best Practicerecommendation: account supervisor should not be establishing accounts;however, in order to maintain consistency within the organization,account supervisor must understand how accounts should be establishedand attached to organizations12

Account ManagerPrincipal Name* Enter the Cornell NetID of the individual who is responsible forensuring that: funds are spent and managed according to the goals, objectives,and mission of the organization; funds are being spent according to a budgeted plan; and the allocation of expenditures is appropriate to the functionidentified for the account.[10 characters]For research accounts or faculty discretionary accounts, this is the facultymember responsible for the activity. For non-sponsored / non-facultydiscretionary accounts, this is the individual who is responsible forfinancial oversight of the account within and across the organization.Account manager cannot be the same person as the account supervisor.Continuation Chart ofAccount CodeContinuation AccountNumberNote: reporting access is granted to the Account Manager.Faculty members who are the Account Manager on an account, or arenamed as the primary C&G Project Director on an award, willautomatically be assigned the “Faculty Researcher” role, which includesaccess to the GL Dashboard, Labor Dashboard, and Research Dashboardfor all accounts on which they are named.For additional information on the C&G Project Director and AwardProject Director, see the Contracts and Grants Overview (includes Awardand Proposal) SOP.Optional unless the account has an expiration date, in which case it isrequired. Enter the chart code for the account that accepts transactionsbeing processed on the account after the account expiration date, or searchfor it from the lookup.Optional unless the account has an expiration date, in which case it isrequired. Enter the account that accepts transactions that arebeing processed on the account after the account expiration date, or searchfor it from the Account lookup. [7 characters]A continuation account is required for each account established with atermination date; however, for Contracts & Grants, Gift, and FederalAppropriation account’s you can use the account up to 365 days after itexpires. Note: Please see Attachment 1 for information on financialprocessing using expired account.The continuation account number can be changed at any point in time upto the life of the account. When the account is inactivated (per the“Closed?” check box on the Account maintenance tab), review theselected continuation account to ensure that it is not a closed account.Best Practice recommendation: establish a default department accountnumber to handle transactions that may post to a closed account; clear itevery month.13

Income Stream Chart ofAccounts CodeIncome Stream AccountNumberBudget Record LevelCodeAccount Sufficient FundsCodeTransaction ProcessingSufficient Funds CheckExternal EncumbrancesSufficient FundsIndicatorInternal EncumbrancesSufficient FundsIndicatorPre-EncumbranceSufficient FundsIndicatorObject Presence ControlIndicatorOptional. Select the chart of accounts for the income stream account fromthe chart list, or search for it from the lookup. Parameters control whenthe income stream chart of accounts code and income stream accountnumber are required.*Still under review-2016* Select the chart of accounts for the incomestream account from the chart list, or search for it from the lookup.Parameters control when the income stream chart of accounts code andincome stream account number are required; currently this is onlyrequired on Federal Appropriations (APFEDL). [7 characters]Income Stream Account is used to identify where funds are comingfrom; in the C&G module, it is the Contract Control Account. (Note:best practices and business rules will be defined and added to this SOPwhen budget module analysis is complete.)* From the Budget Record Level list, select the code that indicates howthe account is recording its budget.Training Issue: currently, O Object Code is the only valid choice.* Select the code that indicates at what level the account is going to bechecked for sufficient funds in the transaction processing environment.Sufficient funds checking can restrict expenditures made on the accountbased on the balance indicated.Training Issue: Cornell is not currently requiring this code;select N - No Checking.Select the check box if sufficient funds check should be performed on theaccount; clear the check box if not.Currently, Cornell will not be validating this field. Selecting the check boxdoes not control whether or not sufficient funds check will be performed.This functionality does not currently exist. Selecting the check box doesnot control the inclusion or exclusion of accounts from sufficient fundscalculation.This functionality does not currently exist. Selecting the check box doesnot control the inclusion or exclusion of accounts from sufficient fundscalculation.This functionality does not currently exist. Selecting the check box doesnot control the inclusion or exclusion of accounts from sufficient fundscalculation.Select the check box to indicate that the account uses object presencecontrol; clear the check box if it does not. Object presence control requiresthat an object code be budgeted for the account before it can be used on anactual or encumbrance transaction.Currently, Cornell will not be utilizing this functionality. Selecting thecheck box does not indicate an account’s object presence control.14

Guidelines and Purpose tab: The fields in this tab collect text descriptions that providedetails relating to the type of expenses that should be charged to the account, the sourceof its income, and the account’s overall purpose. These fields are not used for reportingor linking purposes; they are intended to be informational only. Best Practicerecommendation: avoid uncommon acronyms.Figure 6 – Guidelines and Purpose tabTable 3 Guidelines and Purpose tab: field definitionsField NameDescription (* indicates a required field)AccountRequired unless the account expiration date is before the current date. Enter textExpensedescribing the type of expenditures that take place in the account. (It should alsoGuideline explicitly state those expenditures that are unallowable in the account.) Enter a clearTextdescription of budget and program restrictions, including donor intent, where applicable.C&G will utilize this field in the Contract Control Account to denote restrictions orunallowable expenditures based on terms and conditions. This field will be copied whendepartments establish project related accounts.Example: (for non-sponsored accounts)—expenses in this account can only be used tofund graduate scholarships for student majoring in program X. Only expenses that directlyrelate to these scholarships can be charged against this account. Expenditures include:stipend, tuition, fees, health insurance, and expenses related to thesis research.AccountRequired unless the account expiration date is before the current date. Enter the textIncomedescribing the types of income (source of funds) that take place in the account. This fieldGuideline will be used to share information about where the funds are coming from. It should alsoTextexplicitly state those revenues that are unallowable in the account.Income in this account can only be transferred from an endowment fund. Other revenuefor sales or services is not allowed in this account.For example, in C&G accounts, income is based on agreements such as a Letter of Creditor invoice. A non-sponsored account example would be: “Income in this account can betransferred only from an endowment fund. Other revenue for sales or services is notallowed in this account.”15

AccountPurposeText* Enter text that provides an informative description of the overall purpose of theaccount and the function it supports. Description should be understandable to eventhose individuals who do not have direct knowledge of the account. Example: Thisaccount has been established to fund graduate scholarships for students majoring in“X” program. Sponsored Activity: Office of Sponsored Programs Project Number(OSP #) and title of project.Account Description tab: Contains optional information relating to the physical location ofthe account.Figure 7 – Account Description tabTable 4 Account Description tab: field definitionsField NameDescription (* indicates a required field)Campus DescriptionRecommendation: do not use this chart element: leave blank. Do not utilizefor any other purpose.OrganizationRecommendation: do not use this chart element: leave blank. Do not utilizeDescriptionfor any other purpose.Responsibility Center Recommendation: do not use this chart element: leave blank. Do not utilizeDescriptionfor any other purpose. (Note: Responsibility Center Description may be usedat the institutional level when work on the budget model and associatedbudget allocation process is fina

Chart Code * Enter the code or search for it from the Chart lookup. There will be five KFS charts within the chart of accounts, but the Ithaca chart (IT) is the one most of campus will access and use. Data concepts are the same among the charts, but values like