Fund Accounting Jim Corkill | Controller Business

Transcript:Fund Accounting Jim Corkill | Controller Business:
Fund Accounting Jim Corkill | Controller Business and Financial Services Controller’s Office Agenda Goals/Objectives Definitions Fund Groups Budgeting Financial Statements Goals Concepts of fund accounting Understanding the various fund groups How are we different than a profit organization? What is Fund Accounting? A method of segregating resources into categories (i.e., funds), to identify both the source of funds and the use of funds. Objectives of Fund Accounting Demonstrating accountability and stewardship Determining financial condition Planning and budgeting Objectives of Fund Accounting Evaluating organizational and managerial performance Determining/forecasting cash flow Communication Definitions Fund: A fund is a segregation of resources established to control and monitor resources and to help ensure and demonstrate compliance with legal/administrative requirements. Definitions Fund Balance: Equity within a fund. Assets = Liabilities + Fund Equity Fund Assets – Fund Liabilities = Fund Balance Assets – Claims Against Assets = Fund Balance The fund balance may also be known as Net Assets, Capital, or Net Worth. Chart of Accounts How do we track the sources and uses of funds? Object Code 7200 http://ga.accounting.ucla.edu/ BIG Picture of UC Financials UC audited as one entity! http://www.ucop.edu/financial-accounting/financial-reports/index.html UC Corporate Systems https://csg.ucop.edu/dwr/Dwr Fund Group: A separate entity with a self-balancing set of accounts consisting of assets, liabilities, fund balance, and, where appropriate, revenue and expenditure accounts. Definitions Fund Groups Six basic fund groups: Current Fund Plant Fund Endowment & Similar Funds Group Annuity & Life Income Group Loan Fund Agency Fund Current Fund Group of funds expendable for operating purposes in support of the institution’s mission; expected to be expended in the near term. Unrestricted Restricted Designated Funds Current Fund Unrestricted Funds: Includes all funds received in which a donor or other external agency has not specified the purpose(s) for which the funds should be expended. Examples: General funds Reg. Fee funds Unrestricted gifts (“RARE”) Current Fund Restricted Current Funds: Includes funds available for financing operations, but that are limited to specific purposes, programs, or departments specified by donors or external agencies. Examples: Federal funds for contracts & grants Work Study funds Endowment income Current Fund Designated Current Funds: Unrestricted funds the governing body designated for a special purpose. Examples: Special State Appropriations Tobacco Research Breast Cancer Research Scenario #1 For each of the fund numbers and titles listed, mark the fund either: a) Restricted b) Unrestricted c) Designated For each transaction, assign the appropriate fund number. Plant Fund The plant fund