Administrative Procedure 8.612 Administrative Procedure 8.612

Establishment and Maintenance of Account Codes

Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.612, Establishment and Maintenance of Account Codes
Effective Date:  March 2016
Prior Dates Amended:  October 1994, December 2001
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 the Operations of the Campus
Review Date:  March 2019

To provide guidance on establishing and maintaining University account codes (accounts).

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.

A.  General Guidelines

    1.  An account represents the smallest unit of activity or lowest level of responsibility at which accounting data is collected and maintained.  It is required with each accounting transaction and is used to analyze data for various levels of financial reporting.

    2.  New accounts shall be established whenever separate accounting and reporting are required for legal, organizational, or functional reasons.  Accounts shall not be established for record-keeping purposes which can be accomplished by the proper use of object codes (see AP 8.615).

    3.  Advance accounts for extramurally funded research and training projects may be created when authorized according to AP 8.952.

    4.  New appropriation codes shall be coordinated with the General Accounting and Loan Collection (GALC) office.

B.  Establishment of Accounts

The following applies to non-extramural accounts.  For information on setting up extramural accounts, please contact the Office of Research Services (ORS).

    1.  To establish a new account, either copy an existing account or create a new account in KFS.  This will create a new electronic document (edoc).

    2.  Enter an appropriate Description and Explanation.

        a.  The Description should start with your three (3) digit FO code (e.g. 036 Create new RTRF account)

  3.  In the Account Number field, use the following convention to create a “dummy” account number:

        a.  Sub-Fund Group Type Code (1 character) + FO Code (3 digits) + discretionary sequence number (3 digits)

        b.  The resulting account number should consist of seven (7) characters

        c.  The Sub-Fund Group Type Codes can be found in KFS (e.g. A = Agency, B = Bond, F = Federal, G = General, P = UH Trust, R = Revolving, S = Special)

        d.  The discretionary sequence number is a number assigned by the preparer to keep track of their new accounts internally and can be any three (3) digit number

        e.  Example of a dummy account number for a new revolving fund account established by FA 036:  R036001

    4.  Enter or revise the remaining attributes of the new account.  Ensure that the proper attributes are being used for the account (i.e. correct Higher Education Function Code, Revenue Function Code, Sub-Fund Group Code, UH Fund-Appropriation, etc.).

        a.  Ensure that the Sub-Fund Group Code and the UH Fund-Appropriation are consistent (e.g. an account with Sub-Fund Group Code “SOTHER” should have a UH Fund-Appropriation that starts with an “S”)

    5.  Ensure that the edoc will route to the appropriate campus budget office.  If the campus budget office is not automatically included in the routing, adhoc (approve) route the edoc to them.

    6.  Once the edoc is submitted by the preparer, it will route to the following for review and approval:

        a.  Campus budget office

        b.  KFS campus chart manager (CC, HI, MA, WO, SW)

        c.  KFS system chart manager (GALC)

    7.  The KFS system chart manager in GALC removes the dummy account number and assigns a permanent account number.  The master list of new accounts (with the exception of extramural accounts maintained by ORS) is maintained by GALC.

    8.  The KFS system chart manager in GALC adhoc (FYI) routes the edoc to the preparer to inform him/her of the new account number and approves the edoc.  This finalizes the new account creation process.

C.  Maintenance of Accounts

    1.  Changes to accounts are initiated in KFS either by editing a single account or by using a global edoc to edit multiple accounts within the same chart.

    2.  The following account attributes should not be changed without GALC’s approval:

        a.  Sub-Fund Group Code

        b.  UH Fund-Appropriation

    3.  Generally, for an account to be closed in KFS:

        a.  There should be no remaining balances in the account

    b.  There should be no current fiscal year transactions in the account

    c.  There should be no prior fiscal year thirteenth (13th) month transactions in the account

    d.  An appropriate Continuation Chart of Accounts Code and Continuation Account Number (see AP 8.650) should be used

  4.  To reopen a closed account, please contact GALC.

There is no specific administrative delegation of authority.

    
General Accounting and Loan Collection, 956-8278, or uhgalc@hawaii.edu
Website:  http://www.fmo.hawaii.edu/general_accounting/index.html

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

None

    Vice President for Budget and Finance/Chief Financial Officer