Revised: 10/05
FSS/PPS No. 03.01.01
Issue No. 3
Reviewer: Associate VP Financial Services/Treasurer
Effective Date: 09/01/88 (E5Y)
Review Date: 09/08
01. POLICY STATEMENTS
| 01.01 | The purpose of this PPS is to establish policy and procedures for the master data associated with the financial system of the University, including but not limited to: the creation of new accounts, deletion of existing accounts, changes to existing accounts and changes in account managers. |
| 01.02 | The Associate Vice President for Financial Services/Treasurer (AVP FS/T) is responsible for the University's accounting structure and maintenance of the financial master data, sometimes referred to as the "Chart of Accounts." |
| 01.03 | Financial accounts of the University shall be kept in accordance with the Texas Comptroller of Public Accounts' Annual Financial Reporting requirements. Financial reporting for the state is based on all GASB pronouncements, as well as FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncements. |
| 01.04 | Accounts should be established only for those areas which require unique identification of revenues, expenses, assets, liabilities and fund balances. These should be for significant activities and/or programs of the University. Examples include academic departments and colleges, staff departments and large programs and/or activities. |
| 01.05 | Requests for expenditure accounts must include a detailed budget and an indication of the source of funding. No account will be established until funding for the account is available. No funds will be obligated or expended until the account is established. [Some exceptions may be available for sponsored program accounts. Consult with the Grants & Contracts Administration Office.] |
| 01.06 | The AVP FS/T may delegate master data maintenance, review, and upkeep as needed to various offices and/or individuals. |
02. DEFINITIONS
| 02.01 | Operating accounts - includes both Revenue and Expense accounts. These are referred to as "temporary" accounts because they record actual revenue and/or expense transactions for one period at a time and all such transactions are closed at fiscal year-end to a fund balance account(s). |
| 02.02 | Non-operating accounts - generally, includes balance sheet accounts (such as Cash, Accounts Receivable, Liabilities, Fund Balance, and Fund Balance Reserves. These accounts reflect the financial position of the accounting entity at a point in time and are referred to as "permanent" accounts because their balances are maintained indefinitely. |
| 02.03 | Budgeted Revenue and/or Expenses - refers to amounts appropriated as estimates for planning purposes. Balances of budgeted expenses which are less than actual may be carried forward to future fiscal years. However, these amounts are not the same as actual revenues and/or expenses. |
03. PROCEDURES
| 03.01 | Procedures for establishing new and/or modifying existing accounts vary, depending upon whether requests are made during the annual operating budget-building cycle or intra-year (outside the budget cycle). Requests for new and/or changes to existing accounts must be made in writing on an Account Request Form. [Refer to the General Accounting Office web page for required forms; http://www.txstate.edu/gao/Forms.html] |
| 03.02 | New Operating Accounts during the Budget Cycle | (a) | A request for a new operating account (other than for sponsored programs) should generally be made during the annual budget cycle as plans are being made for the coming fiscal year. At the beginning of the cycle, the administrator desiring to establish a new account or to begin a new program should submit an Account Request Form to the AVP FS/T (with a copy to the Director of Budgeting). The administrator will follow the normal budgeting process, through channels, in requesting inclusion in the operating budget. | | (b) | "Source of Funds" must be identified in section 1 of the Account Request form for the establishment of new operating expense accounts. Funding for operating accounts may come from a variety of sources, including but not limited to: gifts, sponsored programs, transfer from another account, sales/services, fees, and so forth. The requestor of a new account must be certain to indicate which source will be funding any new operating expense account requested. Questions about how to complete the "Source of Funds" section of the Account Request form should be directed to the Budget Office. | | (c) | If the proposed budget for the new project is approved and funded for the next fiscal year, the AVP FS/T will assign a permanent account number. | |
| 03.03 | New Operating Accounts Outside the Budget Cycle | (a) | Sometimes a need arises to establish a new account at times other than during the budget cycle. When an administrator desires to have a new account established outside the budget cycle, an Account Request Form must be submitted to the AVP FS/T. | | (b) | The AVP FS/T will review the request and contact the administrator if any other information is needed. | |
| 03.04 | New and/or Changes to Sponsored Program Accounts | (a) | Requests for New Sponsored Program Accounts, generally, are processed through the Office of Sponsored Programs (OSP) upon the receipt of an award notification from an external funding source. Principal Investigators and/or other administrators involved in requests for new sponsored program accounts should work with OSP as their primary contact. | | (b) | Changes to Sponsored Program master data (such as for Account Manager, Dean/Director, end-date of a project, etc.) should be processed through OSP. That office will coordinate with General Accounting for timely processing of requested changes. | | (c) | Requests for new and/or changes to existing Sponsored Program Accounts must be made in accordance with funding source requirements and other applicable regulations. | |
| 03.05 | New and/or Changes to Non-Operating Accounts | (a) | Non-Operating Accounts, Requests for the establishment of and/or changes to such accounts generally originate with a functional back-office such as General Accounting or the Budget Office. End-users who desire to establish and/or change such accounts must make a written request, including justification, for their request. | | (b) | The Account Manager for certain non-operating accounts, generally, is within the division of Finance & Support Services. Some of the major categories of non-operating accounts and appropriate Account Managers are as follows: | (1) | Endowments & Quasi Endowments - Vice President for Finance & Support Services (VPFSS). | | (2) | Financial Aid (Scholarships, etc.) - Director of Financial Aid; some exceptions may exist for departmentally-established scholarship accounts. | | (3) | Cash and Receivables - Director of Accounting and/or Assistant Director of Accounting for Cashiering/Receivables. | | (4) | Fixed Assets & Equipment - Director of Accounting and/or Assistant Director of Accounting for Financial Reporting, and Director of Materials Management. | | (5) | Liabilities (short- and long-term) - Director of Accounting (or designee) | | (6) | Fund Balances and Reserves - VPFSS, unless specifically delegated to another vice-president. | | | (c) | Quasi-endowment accounts cannot be established without approval of the TSUS Board of Regents [refer to TSUS Regents Rules]. | |
| 03.07 | Deleting and/or Inactivating Accounts | (a) | Generally, any account which has financial transactions recorded in it during a fiscal year will not be deleted that year. If an account is terminated during the fiscal year, the account and the activity which took place during the year will be reflected until August 31st. Deletion of an account may be effective for the start of the new fiscal year. | | (b) | If an account manager feels that an account should be deleted, he/she should submit an Account Request form to the AVP FS/T. The AVP FS/T will review the request and contact the account manager for any other pertinent information that might be required. | | (c) | Accounts which have had transactions recorded in them, but which should have no further activity, may be "inactivated". A written request should be submitted on the Account Request Form, stating briefly the reason for the need to inactivate the account. | |
| 03.08 | Modifications to Accounts | (a) | Modifications to existing accounts (such as Account Manager, element of cost, function code, etc.) should be submitted to the AVP FS/T on an Account Request form. Requested changes will be coordinated between the Budget Office and Financial Services to assure accuracy in both the current and upcoming years financial reporting and the budget for the next fiscal year. The Budget Office is responsible for assuring that master data changes in a current fiscal year are reflected in the budget for the next fiscal year. | | (b) | Certain aspects of the account (e.g., account number, account name, code, etc.) are designed to facilitate university accounting, reporting, disbursement and auditing. The "area" for an account cannot be changed intra-year; all such changes must occur at the start of a fiscal year. Function codes cannot be changed retroactively, after expenditures have been made. All such changes must occur prospectively and require written approval of the AVP FS/T. | |
| 03.09 | Administrative Approval | (a) | Requests for establishment of new or modifications to existing accounts within the university's financial records must be made on the Account Request form. | | (b) | Establishment of a new account or changes in account managers requires the written approval on the Account Request form of at least one managerial level above the Account Manager. For example, a change in signature authority for a new account manager requires written approval from their Dean/Director. A change for a new Dean/Director requires approval from their Vice President. | | (c) | The Vice President for Finance and Support Services and/or the AVP FS/T may authorize changes in account managers for Vice Presidents and the President. | | (d) | As Chief Financial Office of the university, the VPFSS is authorized to establish and/or make changes to all financial accounts of the university. | |
04. MAJOR RESPONSIBILITIES ASSOCIATED WITH THIS PPS
| | Major responsibilities for routine assignments associated with this PPS include the following: | Positions | Section | Date | | Associate VP Financial Services/Treasurer | Review | September (E5Y-93) | |
05. CERTIFICATION OF STATEMENT
This FSS/PPS has been approved by the appropriate individuals in the positions indicated, serving in their official capacities, and represents FSS policy and procedure from the date of this document until superseded.
Associate Vice President, Financial Services/Treasurer, Reviewer
Vice President for Finance and Support Services
| Approved: | ____________________________
Reviewer |
| Approved: | ____________________________
Vice President for Finance
and Support Services |
