Policies & Procedures


Section: ACT
Part: POL
Statement No.: 1.0
Date: 07/01/08
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Financial Record System (FRS) Description


1.     The Financial Records System (FRS) is an integrated general and subsidiary ledger record keeping and reporting system. The system is designed to provide both the features of a budgetary control system (management information) and a fund accounting system (stewardship information). The system complies with the guidelines of both the National Association of College and University Business Officers (NACUBO) and the American Institute of Certified Public Accountants (AICPA)


2.     This system is highly flexible with a variety of techniques which will allow all levels of management and operations access to timely financial information. A brief summary of these techniques and features follows:


      allows budgeting of revenue and expenditures on any of four different levels of aggregation (all four may be used within the same account)

      permits automatic reallocation of expenditure budgets (ABR) within an account

      provides for reporting on a state year, quarterly, federal year and project year basis

      provides for the comparison of actual expenditures against budget

      produces a variety of financial reports, such as detailed reports for the lowest level of operations and summaries for the upper levels of management

      produces income and expense statements and balance sheets

      employs "roll-up" reporting techniques in which numerous subsidiary ledger accounts can be summarized into one report for management analysis

      provides for special reports through a variety of report generating techniques

      produces detailed and summary information on encumbrances

      provides for the detailed classification of both expenditures and revenues

      provides for automatic linkage between the general ledger and subsidiary ledger, which assures that the system, will always be in balance and provides for simplified data entry into the system

      provides for control of cash ownership by funds (general ledger account) and automatically maintains book cash balances for each bank account

      provides for a number of automatically generated journal entries at month-end such as prorates, indirect cost calculations, and so on

      maintains current year data on budgets and actual expenditures, past year data on actual expenditures, and budgets for a future year, permitting a three-year comparison on an easy and convenient basis

      provides automated controls and edit routines to greatly increase the accuracy of data within the system

      provides the capability to process daily updates which simplifies error location and correction, account reconciliation and work scheduling, while also permitting the data files to be in a current reportable state at all times.