Policies & Procedures


   

Section: ACT
Part: APP
Statement No.: 1.2
Date: 07/01/08
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Account Control Description 

 

1000 Assets This account group includes descriptions and carrying values of physical objects and rights which provide financial benefits to the institution and whose beneficial interests reside with The University.  Assets may be tangible (e.g., plant assets) or intangible (e.g., accounts receivable), monetary (e.g., cash) or non-monetary (e.g., inventories), and owned (possession and use is authorized by legal title) or unowned (possession and use is subject to a capital lease-purchase agreement). Each asset must have been acquired during a previous financial transaction and is expected to provide future pecuniary or operational advantage to the acquiring institution. Each component classification is accompanied in accounting records and financial statements by a carrying value expressed in original cost, an equivalent of original cost, or other appropriate basis. Future benefits may be realized through direct use of the assets (e.g., plant assets will contribute, through use, towards achievement of institutional goals) or through utilization as a medium of exchange (e.g., cash and other cash-equivalent items will contribute benefits by providing purchasing power in the acquisition of other assets or extinguishment of liabilities).

 

1100        Cash: This account summary includes, as a general rule, the carrying value of monetary resources which are recognized, accepted, and used in financial transactions as measures of value, mediums of exchange, and legal tender. It includes money, money orders, checks, other negotiable instruments, demand deposits (i.e., cash in allotment account, cash in disbursing account, cash in special funds, cash in state treasury, cash in banks, and other demand deposits), cash on hand, time deposits (i.e., savings accounts, certificates of deposit, State Treasurer’s liquid assets fund, State Treasurer’s temporary investment fund, and other time deposits), cash with paying agents, cash carried forward, unallotted state appropriations, and other cash.

1140        Petty Cash

1200        Investments: This account summary includes, as a general rule, the carrying value of resources acquired and held by or on behalf of the institution for the purpose of generating income or providing other benefits. It includes investments in the State Treasury, corporate securities, federal securities, and state and municipal securities, assets held by fiscal agents and others, investments in real estate, and other investments.

1240        Investments held by Fiscal Agent:  Assets held by Wachovia Bank & Trust Department

1250        Allowance for Recording Investments at Fair Market Value

1280        Real Estate

1290        Other Investments

1300        Accounts Receivable: This account summary includes, as a general rule, monetary amounts existing as valid claims against debtors, usually on open account, whether such debtors are persons or private, public, or not-for-profit entities. It includes allowances for doubtful accounts, accounts receivable from students, patients, customers, and others, amounts due from non-university North Carolina state government entities, federal entities, and other governmental entities, travel advances to employees, and undrawn grant awards.

1310        Accounts Receivable

1325        Accounts Receivable-Billings

1335        Account Receivable-Other Universities

1340        Due from Non-University Governmental Entity

1345        Due from General Fund for 6/30/9X Payroll

1350        Due from Federal Agency

1355        Due from College Foundation

1356        Due from Bond Issue Fund

1360        Due from Other Government

1365        Due from Unexpended Plant

1370        Due from Employee-Travel Advance

1380        Due from Individual or Business

1400        Loans Receivable: This account summary includes, as a general rule, monetary values originating as loans to qualifying borrowers. It includes allowances for doubtful loans, National Direct Student Loans (NDSL) receivable, other student loans receivable, and other loans receivable.

1490        Allowance for Doubtful Accounts

1500        Inventories: This account summary includes, as a general rule, the carrying value of tangible personal properties which will be used, consumed, or sold during operations of the institution. It includes inventories of household supplies, food products, educational supplies, repair supplies, motor vehicle supplies, office supplies, purchases for resale, utilities supplies, and other items.

1561        Postage Inventory

1600        Suspense: This account summary includes the carrying value of debits and credits which are temporarily recorded and maintained in suspension, pending resolution of uncertainties about classifications or other characteristics. Individual items should remain in the account for only short periods of time, and all data elements in the account should be properly reclassified prior to preparation of financial statements in as much as this classification should not appear in financial statements.

1601-1699 (This range of account codes is reserved for use as authorized by The University of North Carolina General Administration. It is not currently assigned uniform account components in the Chart of Accounts, and is currently available for non-uniform usage by individual institutions of The University of North Carolina. Such non-uniform usage should be harmonious with related standardized components of the Chart of Accounts.)

1620        Prepaid Expense

1630        Deferred Production Cost

1640        Prepaid Film Rights

1700        Plant Assets: This account summary includes, as a general rule, the carrying value of tangible real and personal properties owned by and used in operations of the State of North Carolina. Such property is not consumable or expendable; it has an expected useful life of longer than one year; its acquisition cost is equal to or greater than a threshold amount established for the institution; and its use does not create a readily observable physical impairment or deterioration. The account also includes the cost of plant assets acquired in certain capital lease-purchase transactions in which the leasing agreement is tantamount to a purchase contract. It includes accumulated depreciation, office equipment, EDP equipment, educational equipment, motor vehicles, other equipment, library books and journals, land, buildings, and other plant assets.

1710        Land

1720        EDP Equipment

1740        Equipment

1750        Other Equipment

1760        Motor Vehicles

1770        Construction in Progress

1780        Buildings

1790        Other Plant Assets

1800        Other Assets: This account summary includes, as a general rule, the carrying value of assets which are not identified for inclusion in other account summaries. It includes accrued interests receivable, accrued rentals receivable, other accrued receivables, current prepaid expenses, non-current prepaid expenses, amounts due from other entities of The University of North Carolina, leasehold improvements, and work in progress.

1810        Accrued Interest Receivable

1820        Due from UNC entities

1830        Due from Loan Funds

1840        Due from Primary Government Agency

1850        Due from Current Restricted

1860        Due from FFELP

1890        Due from Current Unrestricted

1900        Due from Other Fund Groups within The University (20 CAT = Due fm Other Fd Grup): This account summary includes amounts due from accounting entities within the same institution. It includes amounts due from unrestricted current funds, proprietary funds, restricted current funds, loan funds, endowment funds, unexpended plant funds, debt service funds, investment in plant funds, and agency funds.

 

2000 Liabilities This account group includes financial obligations of the institution, expressed in monetary amounts, arising from previous financial transactions and requiring settlement with either money, goods, or services on fixed or determinable future dates. Liabilities may originate during transactions with creditors (e.g., for purchases from vendors of operating supplies and materials), employees (e.g., for accrued salaries and wages payable), third parties (e.g., for withholdings from employees’ salaries of income taxes payable to governmental agencies), and other persons and institutions.

2100        Accounts Payable: This account summary includes, as a general rule, monetary amounts existing as valid obligations to creditors, usually on open accounts, whether such creditors are persons, or private, public, or not-for-profit entities. It includes accounts payable to vendors, employees, federal entities, state entities, other governmental entities, and other accounts payable.

2113        Due to Federal Agencies

2160        Due to Other Trust Funds

2200        Payroll Withholdings Payable (20 CAT = Payroll W/H Payable): This account summary includes obligations originating through mandatory and optional withholdings from employees salaries and wages. It includes social security taxes payable, federal income taxes payable, state income taxes payable, state retirement contributions payable, optional retirement contributions payable, insurance premiums payable, optional savings plan contributions payable, and other payroll withholdings payable.

2300        Payroll Accruals Payable (20 CAT = P/R Accruals Payable): This account summary includes payroll-related obligations originating from recognition of accounting transactions in accordance with the accrual basis of accounting. It includes accrued salaries and wages payable, accrued social security contributions payable, accrued state retirement contributions payable, accrued optional retirement contributions payable, accrued medical insurance premiums payable, accrued employee accumulated leave payable, and other payroll accruals payable.

2400        Advances, Deposits, and Deferred Revenues (20 CAT = Adv, Dep & Dfd Rev): This account summary includes obligations originating as receipts from revenue sources prior to recognition as revenues earned, amounts entrusted to custodianship of the entity, and amounts retained by the entity as collateral or security pending compliance by others with contractual provisions. It includes advances received from students, tenants, patients, other nongovernmental entities, federal government entities, non-university state and local government entities, contractual retainages payable, deferred revenues, and other current advances and deposits.

2420        Accumulated Leave Payable

2500        Other Current Payables (20 CAT = Other Cur Payables): This account summary includes obligations not identified in account summaries numbered 2100 through 2400 and 2600 through 2900. It includes sales and use taxes payable, notes payable, accrued interest payable, accrued rentals payable, other accrued non-payroll amounts payable, bonds payable, capital leases payable, workers compensation benefits payable, and amounts due to others for assets held in trust.

2600-2699(This range of account codes is reserved for use as authorized by The University of North Carolina

                  General Administration. It is not currently assigned uniform account components in the Chart of

                  Accounts, and is currently available for non-uniform usage by individual institutions of The

                  University of North Carolina. Such non-uniform usage should be harmonious with related

                  standardized components of the Chart of Accounts.)

2510        Sales Tax Payable

2520        Use Tax Payable

2530        Withholding Tax Payable

2700        Long-Term Liabilities (20 CAT = Long-Term Liability): This account summary includes monetary amounts existing as valid obligations to creditors; such creditors may be persons, or private, public, or not-for-profit entities. These obligations are scheduled for final settlement subsequent to one-year from date of origination. It includes accounts payable, notes payable, bonds payable, capital leases payable, workers compensation benefits payable, contractual retainages payable, non-current advances, deposits, and deferred revenues, and other long-term liabilities.

2715       College Vision Loans Payable

2800        Due to Other UNC Entities (20 CAT = Due to Other UNC Ent): This account summary includes obligations due to University of North Carolina (UNC) entities from other UNC entities. It includes amounts due to unrestricted current funds, proprietary funds, restricted current funds, loan funds, endowment funds, unexpended plant funds, debt service funds, investment in plant funds, and agency funds.

2811        Due to Nations Bank

2819        Security Lending Obligations

2820        Due to SEAA Appropriation Supported Payroll

2830        Due to Loan Funds

2840        Due to Current Unrestricted

2860        Due to FFELP Principal

2900        Due to Other Fund Groups within The University (20 CAT = Due to Other Fd Grup): This account summary includes amounts due to accounting entities within the same institution. It includes amounts due to unrestricted current funds, proprietary funds, restricted current funds, loan funds, endowment funds, unexpended plant funds, debt service funds, investment in plant funds, and agency funds.

 

3000 Fund Balance This account group includes the excess of carrying values of assets over related liabilities for all accounting entities in the general ledger of the institution.

3110        Fund Balance-Current Unrestricted-16010, 16011, 16012, Overhead Receipts

3510        Fund Balance-Current Restricted-Trust Funds

3520        Fund Balance-Current Unrestricted-Trust Funds

3530        Fund Balance-Other Restricted-Agency

3540        Fund Balance-Distinguished Professor Endowment Fund

3550        Fund Balance-NC Student Loan Fund

3560        Fund Balance-College Vision

3610        Fund Balance-Current Restricted-Endowment Income

3710        Fund Balance-Current Restricted-Endowment Principal

3720        Fund Balance-Current Restricted-66010

3730        Fund Balance-Current Restricted-66011

3810        Fund Balance-Other Restricted-Capital Improvement

 

4000 Fund Additions This account group includes components of financial transactions which increase related fund balances. These transactional components include revenues and transfers-in.

4210        Gifts

4320        Investment Income

4329        Security Lending Income

4330        Interest Income

4331        Interest Income Service Cancellation

4332        Interest Income Write Off

4340        Gain or Loss on Sale

4341        Unrealized Gain on Investments and Sales

4390        Other Income

4421        EDP Equipment – General Administration

4422        EDP Equipment-Center for Public Television

4441        Office Equipment-General Administration   

4442        Office Equipment-Center for Public Television

4451        Other Equipment-General Administration

4452        Other Equipment-Center for Public Television

4481        Buildings-General Administration

4482        Buildings-Center for Public Television

4770        Other Additions

4791        Non-Mandatory Transfers – Education and General

4795        Transfers from Escheats

4800        Mandatory Transfers-In (20 CAT = Mandatory Tfr-In):  This account summary includes intra-institutional transfers of monetary resources received in compliance with contractual provisions for servicing physical plant debt or in accordance with funding agreements to provide matching for loan and other funds.

4820        Mandatory Transfers from Endowment Principal

4900        Non-mandatory Transfers-In (20 CAT = Non-mandatory Tfr-In): This account summary includes intra-institutional transfers of monetary resources received as a result of actions initiated by institutional management, the governing board, the State legislature, and State government administration.

4920        Transfer to Agency

 

5000 Fund Deductions This account group includes components of financial transactions which decrease related fund balances. These transactional components include expenditures and transfers-out.

5011        Loan Cancellation Work Service

5040        Administration and Collection

5080        Loan Write-Offs

5421        EDP Equipment-General Administration

5422        EDP Equipment-Center for Public Television

5441        Office Equipment-General Administration

5442        Office Equipment-Center for Public Television

5452        Other Equipment-Center for Public Television

5462        Motor Vehicles-Center for Public Television

5481        Buildings-General Administration

5482        Buildings-Center for Public Television

5700        Other Fund Deductions

5710        Other Fund Deductions

5719        Security Lending Fee

5720        Interest Expense

5800        Mandatory Transfers-Out (20 CAT = Mandatory Tfr-Out): This account summary includes intra-institutional transfers of monetary resources relinquished to comply with contractual provisions for servicing physical plant debt or in accordance with funding agreements to provide matching for loan and other funds.

5820        Transfer Mandatory Endowment Principal

5900        Non-mandatory Transfers-Out (20 CAT = Non-mandatory Tfr-Out): This account summary

                includes intra-institutional transfers of monetary resources relinquished to comply with actions initiated by institutional management, the governing board, the State legislature, and State government administration.

5920        Transfer to Agency

5970        Transfer to Endowment Principal

 

9000 Budget and Actual Control Summary (20 CAT = Budget & Act Ctl Sum) This account group includes budgetary and transactional totals which serve as control summaries of detailed accounting data. The summary totals are used in administering, controlling, managing, and monitoring financial operations of the entity.

9100        Current Year Budget Control (20 CAT = Cur Year Budget Ctl): This account summary includes

                budgetary summary totals for the current fiscal year’s financial data. The summary totals assist in

                fulfilling responsibilities over unrestricted and restricted budgeted current fund revenues and

                expenditures.

9110        Budget   Current Year-Unrestricted Revenue

9120        Budget   Current Year-Unrestricted Expenditure

9130        Budget   Current Year-Unrestricted Variance

9140        Budget   Current Year-Restricted Revenue

9150        Budget   Current Year-Restricted Expenditure

9160        Budget   Current Year-Restricted Variance

9200        Next Year Budget Control (20 CAT = Next Year Budget Ctl): This account summary includes

                budgetary summary totals for the succeeding fiscal year’s financial data. The summary totals assist in

                fulfilling responsibilities over unrestricted and restricted budgeted current fund revenues and

                expenditures.

9210        Budget   Current Year-Unrestricted Revenue

9220        Budget   Current Year-Unrestricted Expenditure          

9230        Budget   Current Year-Unrestricted Variance

9240        Budget   Current Year-Restricted Revenue

9250        Budget   Current Year-Restricted Expenditure

9260        Budget   Current Year-Restricted Variance

9300        Actual Revenue Control (20 CAT = Actual Revenue Ctl): This account summary includes summary

                totals for the current fiscal year’s actual transactional revenue data. The summary totals should   

                include account controls for each subsidiary ledger.

9310        Current Unrestricted Revenue Ledger 1

9330        Current Unrestricted Revenue Ledger 3

9350        Current Unrestricted Revenue Ledger 5

9360        Current Unrestricted Revenue Ledger 6

9370        Current Unrestricted Revenue Ledger 7

9380        Other Restricted Revenue Ledger 8

9500        Actual Expenditure Control (20 CAT = Actual Exp Ctl): This account summary includes summary

                totals for the current fiscal year’s actual transactional expenditure data. The summary totals should

                include account controls for each subsidiary ledger.

9520        Current Unrestricted Expenditure Ledger 2

9530        Current Unrestricted Expenditure Ledger 3

9550        Current Restricted Expenditure Ledger 5

9560        Current Restricted Expenditure Ledger 6

9570        Current Restricted Expenditure Ledger 7

9580        Other Restricted Expenditures Ledger 8

9590        Other Restricted Expenditures Ledger 9

 

9600        Encumbrance Control: This account summary includes summary totals for the current fiscal year’s 

                outstanding encumbrances of budget balances. The summary totals should include account controls

                for each subsidiary ledger.

9620        Encumbrance Summary Ledger 2

9630        Encumbrance Summary Ledger 3

9650        Encumbrance Summary Ledger 5

9660        Encumbrance Summary Ledger 6

9680        Encumbrance Summary Ledger 8

9690        Encumbrance Summary Ledger 9

9700        Requisition Control: This account summary includes summary totals for the current fiscal year’s outstanding requisitions prior to entry of individual elements in the encumbrance system. The summary totals should include account controls for each subsidiary ledger.