Administrative Procedure 8.650 Administrative Procedure 8.650

Continuation and General Clearing Accounts

Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.650, Continuation and General Clearing Accounts
Effective Date:  May 2021
Prior Dates Amended:  March 2016, May 2014
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, Authority to Manage and Control Operations of the Campus
Review Date:  August 2024

To describe the purpose and structure of continuation accounts and general clearing accounts in the University of Hawai‘i Kuali Financial System (KFS).

A. Account - The account code is a seven (7) character code representing a functional unit established for a specific purpose with one individual having primary responsibility for it.  It monitors the financial activities for a functional unit.

B. Appropriated Accounts - Accounts that are associated with funds appropriated from the state or federal government.

C. Attribute – Non-dollar descriptive data associated with an account. They are maintained at the account level in KFS via the Account Maintenance e-Docs.

D. Chart - Also referred to as Chart Code; Chart of accounts code that typically represents the campus or unit that an account belongs to.

E. Chart Manager - A role in the Kuali Financial System that is responsible for maintenance of the accounts on a given chart.

F. Clearing Account – An account that is used to temporarily accept posting from automated or manual processes when the target account or object code is not yet determined.

G. Continuation Account - A clearing account that is designated to accept transactions initially coded to an expired account.

H. Contracts & Grants Account - Account that is under the purview of the Office of Research Services (ORS) and identified with the ORS Indicator attribute on the Sub-Fund Group Code; also referred to as extramural or CG Account

I. Depository of Funds - The location where cash is held, i.e. 1 = State of Hawai‘i; 2 = UHGA; 3 = Other; 4 = Fixed Assets

J. Fiscal Administrator (FA) – Person that is responsible for monitoring and approving documents and transactions in KFS and certifying that the charges are accurate, appropriate, and allocable.

K. Fiscal Officer Code (FO Code) - Three character code representing a functional unit that is under responsibility of a specific fiscal administrator.

L. Imposed Status - Indicator that specifies if the account will be assessed fringe benefits (imposed) or if it will not be assessed fringe benefits (non-imposed). This is based on the UH Fund-Appropriation code.

M. KFS Poster Routine (KFS Poster) - Part of the daily batch jobs that are run each day in KFS which posts that day’s finalized transactions.

N. Organization Code - Also referred to as Org Code; a four character code representing a functional unit at the University, such as a school, department, college, program, etc.

O. Sub-Fund Group Code - Account attribute used to designate the type or purpose of funds.    i.e. STFSF = Special Funds, Tuition Fee Spending.

P. Sub Fund Group Type - Attribute assigned to a Sub-Fund Group representing the source of funds, i.e. G = General Funds; F = Federal Funds

Q. System Level Administrator - University level role typically associated with a system level office such as General Accounting Office (GAO) and ORS that is responsible for the overall compliance for their respective area of responsibility.

A. Continuation Clearing Accounts

  1. KFS requires that a continuation chart code and continuation account number be provided when an account has an expiration date. Charges assessed after the account has expired are routed to the respective continuation account assigned.

B. Continuation Account Attributes

1. In order for the continuation accounts to be identifiable, all continuation accounts will have certain specific attributes irrespective of the account chart code.  See Attachment 1.
 
  2. Other continuation account attributes: Fund Group, Sub-Fund Group Type, Payroll fringe Imposed Status, and UH Fund-Appropriation need to agree to the expiring account.  See Attachment 2.

C. Assigning Continuation Accounts on Contracts & Grants Accounts

  1. At a minimum, each FO Code shall have a continuation account established for each of its Contracts and Grants (CG) Sub-Fund Groups.    A FA can elect to also have continuation accounts assigned to specific organization codes, or other account attribute, within each Sub-Fund Group for more detailed monitoring and reporting.

  2. The imposed status and Depository of Funds MUST be the same for both the account and the continuation account.    If the account is not subject to fringe benefit charges, the continuation account must also be of the same non-imposed status on the same Sub-Fund Group Type.

D. Assigning Continuation Accounts on Non-Contract & Grants Accounts

  1. Since non-CG accounts are generally not tied to specific funding periods, the accounts might not have expiration dates and as such, will not need continuation accounts assigned. In the event the function that the account represents comes to a close, then a continuation account will need to be entered.

  2. At a minimum, each FO Code shall have a continuation account established for each of its Fund Group’s applicable Sub-Fund Group Type codes (i.e. General, Special, Revolving, etc.) as indicated on the Continuation Account Attribute Table.    An FA or Chart Manager can elect to also have continuation accounts assigned to specific Organization codes, Sub-Fund Groups or other account attributes, within each Sub-Fund Group Type code for more detailed monitoring and reporting.

  3. The imposed status and Depository of Funds MUST be the same for both the account and the continuation account.    For example, if the account is not subject to fringe benefit charges, the continuation account must also be of the same non-imposed status on the same Sub-Fund Group Type.

E. Identifying Continuation Account Transactions

  1. Transactions that are routed to continuation accounts have a distinct pattern on the transaction ledger in KFS. The description will read similar to the following:

AUTO FR MA20123450001 PO for Supplies (General Ledger)
                                    or
AUTO FR MA6123456DOE, JOHN Q (Labor Ledger)

The general format is:
AUTO FR
or
AUTO FR

Note that there are no spaces between each of the items identified between the brackets.

  2. The Chart Code and Account Number represent the account that should have been assessed the charge. With this information, the FA can determine how to appropriately reallocate the charges.

F. Continuation Account Restrictions

  1. Continuation Accounts shall not be assessed charges directly. Transactions should not be knowingly charged to the continuation account. Only transactions that are routed via the KFS Scrubber or KFS expired account replacement routines shall be allowed to assess charges on the continuation accounts.

  2. Budgets shall not be established on continuation accounts. Since charges shall not be directly assessed on the continuation account, a budget is not necessary on this account.    Note that the absence of a budget will cause the account to have a negative budget balance available when charges are present on the account.

G. Reallocating Continuation Account Transactions

  1. The reallocation of continuation account transactions is different depending on what type of transaction was affected. For both types of reallocations, appropriate documentation shall be attached to the respective e-Doc which adequately substantiates the reallocation of charges.

  2. Non-labor ledger transactions shall be corrected by the responsible Fiscal Administrator using a General Error Correction (GEC) e-Doc in KFS. The continuation account transaction description can be used to assist in determining which account needs to be assessed the charge. The FA shall make the determination regarding which account should be assessed for the continuation account transaction.

  3. Labor ledger transactions shall be corrected by the responsible Fiscal Administrator using a Salary Transfer (ST) e-Doc in KFS. The continuation account transaction description can be used to assist in determining which account needs to be assessed the charge.    The FA shall make the determination regarding which account should be assessed for the continuation account transaction.

H. Monitoring Continuation Accounts

Reasonable efforts shall be made to ensure that the balances on the continuation accounts are at a manageable level to minimize the risk of un-allocable and/or unallowable costs.

I. Reports

  1. Ad-hoc reports in Jasper shall be used to monitor the status of continuation and general clearing accounts. The reports show the balances and detailed transactions that are recorded on the accounts.

  2. The reports can be pulled at the university, campus organization level or FO Code for a given fiscal period and fiscal year.

J. General Clearing Accounts

General clearing accounts are established to accept posting from automated or manual processes when the target account or object code is not yet determined.  General clearing accounts should have “Clearing” in the account name and the account type code should be CLR.

Banner and Destiny Clearing – Transactions are posted to KFS via daily electronic feeds.  Subsequent processing clears transactions to appropriate accounts and payroll overpayments.  Corrections are processed by GAO or FA for un-cleared balances. 

Tax Set Off Clearing – Amounts intercepted from individual state tax refunds to settle debt owed to UH.  FA to clear balances as appropriate.

Accounts Receivable (A/R) Clearing – Transactions posted via KFS A/R payment processing.  FA to clear balances as appropriate.

D-71 Clearing – Transactions posted via ST eDoc when salary is reclassified between imposed and non-imposed status accounts.  Balances reclassified monthly by GAO.

Cost Share Source Clearing Account – From FA DI eDocs for cost share to CS0001 sub-accounts.  FA to clear balances as appropriate.


K. Responsibilities

  1. FA Responsibilities

    a. FAs shall use the attribute guidelines and table presented in Attachments 1 and 2 when requesting new or modifying existing continuation accounts.

    b. Continuation accounts and general clearing accounts shall be monitored on a monthly basis by the FA assigned to the accounts.

    c. Continuation account transactions should be transferred to the appropriate project account prior to award closeout. All continuation accounts shall be cleared at the end of each fiscal year.  General clearing accounts should also be cleared or appropriately reconciled at the end of each fiscal year.

    d. FAs can utilize the Available Balances or Balances by Consolidation queries in KFS (under Main Menu – Balance Inquiries – General Ledger) or the budget status in the reporting system to monitor the overall status of the accounts. If the continuation account balances out to $0 on each object code, then the account has been appropriately cleared.

  2. Campus Level Responsibilities

    a. Chart Managers shall monitor new account creations and account modifications to ensure that the appropriate continuation account is assigned based on its Fund Group, Sub-Fund Group Type, imposed/non-imposed status, and Depository of Funds.

    b.     Campus level chart managers shall utilize reports to monitor the status of their respective chart code’s continuation accounts and ensure that the responsible FAs are in compliance with this policy.

  3. System Level Responsibilities

    a. Periodic reviews of reports by system-wide offices ORS is responsible for sponsored program accounts, and GAO is responsible for non-sponsored program accounts) shall be utilized to ensure compliance.

    b. Periodic reminders for clearing continuation account transactions will also be sent to the FAs at award closeout and prior to fiscal year- end.

There is no administrative specific delegation of authority.

General Accounting Office, 956-8527, or karenhm@hawaii.edu
Website:  http://www.fmo.hawaii.edu/general_accounting/index.html#tab5

Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php

Attachment 1:  Creating Continuation Accounts & Continuation Accounts Attribute Table

Attachment 2:  Continuation Acct Attribute Table

    Vice President for Budget and Finance/Chief Financial Officer