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Chapter 9 Balance SheetSNA Accounts

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Chapter 9 Balance SheetSNA Accounts

    UNIVERSITY OF COLORADO AT BOULDER

    DEPARTMENTAL FINANCIAL MANAGEMENT GUIDE

     BALANCE SHEET ACCOUNTS

    TABLE OF CONTENTS CHAPTER 9

    I. CHAPTER 9 BALANCE SHEET ACCOUNTS ......................................... 1 II. BALANCE SHEET ACCOUNT CLASSIFICATIONS .................................. 1 III. ASSETS .............................................................................................. 1

    1. Cash: Accounts 000100 004999 ................................................................. 2

    2. Investments: ............................................................................................. 3

    3. Accounts Receivable: Accounts 010000 014999 ............................................ 4

    4. Accounts Receivable Allowances: Accounts 015000 019999 ............................ 7

    5. Loans and Notes Receivable ......................................................................... 8

    6. Loans and Notes Allowances ....................................................................... 10

    7. Inventories: Accounts 030000 049999....................................................... 10

    8. Other Assets: Accounts 070000 079999 .................................................... 11

    9. Non-Current Assets: Accounts 080000 084999 ........................................... 14

    10. Capital Assets: Accounts 090000 094999 ................................................... 14

    11. Due From: Accounts 095000 099999 ......................................................... 16 IV. LIABILITIES ..................................................................................... 17

    1. Payables: Accounts 100000 104999 .......................................................... 18

    2. Accrued Expenses: Accounts 105000 107999 ............................................. 22

    3. Accrued Compensated Absences ................................................................. 26

    4. Other Liabilities: Accounts 150000 159999 ................................................. 26

    5. Other Liabilities and Debt ........................................................................... 33

    6. Due To: Accounts 195000 - 199899 ............................................................. 35 V. FUND BALANCE/NET ASSETS ........................................................... 37

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    CHAPTER 9: BALANCE SHEET ACCOUNTS 11/09

    UNIVERSITY OF COLORADO AT BOULDER

    DEPARTMENTAL FINANCIAL MANAGEMENT GUIDE

     BALANCE SHEET ACCOUNTS

    I. CHAPTER 9 BALANCE SHEET ACCOUNTS

    Chapter 9 of The Guide focuses on Balance Sheet Accounts. Balance sheet

    accounts have a range of 000000 199999 and are used to record transactions

    pertaining to assets, liabilities, and fund balance. This chapter describes selected

    balance sheet accounts and provides guidelines for using these accounts. For a

    complete listing of balance sheet accounts, visit the Office of University

    Controller’s website at http://www.cu.edu/System_Controller/fin-system-info.html and select Chart of Accounts (Full version formatted for MS Excel).

    II. BALANCE SHEET ACCOUNT CLASSIFICATIONS

    The balance sheet is the financial statement that reports the financial position of a

    particular entity, such as CU-Boulder, as of a certain point in time. The balance

    sheet provides information about the entity’s assets, liabilities, and fund balance.

    Within the Finance System, designated ranges of accounts have been assigned to

    these balance sheet classifications. These are:

    ? Assets 000100 099999

    ? Liabilities 100000 199899

    ? Fund Balance 199900 199999

    Note:

    1. Not all balance sheet accounts are available for departments to use on their

    transactions. For example, certain balance sheet accounts are system maintained,

    and others are limited to use by ABS. The Guide has included information on these

    accounts because transactions using them may appear on a department’s financial

    statements.

    2. Not all accounts are permitted to be used in all funds. Account allowability on a fund-

    by-fund basis is defined in the Finance System Fund/Account Edit Table. Navigation

    to this table begins at the Finance System homepage and proceeds as follows:

    General Ledger ?ChartFields ? Fund-Account Combo Edit

    III. ASSETS

    An asset is defined as tangible and intangible personal and real property such as

    cash, investments, inventory, accounts receivable, loans receivable, prepaid

    expenses, equipment, buildings, land, improvements to land other than

    buildings, etc. All asset accounts, except for allowance accounts, should be in

    debit status. Allowance accounts, should be in credit status.

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    UNIVERSITY OF COLORADO AT BOULDER

    DEPARTMENTAL FINANCIAL MANAGEMENT GUIDE

     BALANCE SHEET ACCOUNTS

    1. Cash: Accounts 000100 004999 Do not use cash account 000100 on any transaction. It is maintained at the

    system level of the university, and the Finance System has been

    programmed to reject any transaction entered directly to this account.

The cash account 000100 records a claim on the Treasurer’s cash pool

    according to the current principles of fund accounting. Account 000100

    refers to the university’s cash, which is combined for investment purposes.

    Changes in cash result from entering transactions against other asset,

    liability, revenue, expense, and transfer accounts, because the Finance

    System creates an offset entry to the cash account for every transaction

    recorded in these other accounts.

The normal status for accounts within the cash series, 000100 004999, is

    debit.

The cash accounts include:

    000100 - Cash

    000200 - Petty Cash

    000300 - Change Fund

    000400 - Checking Account

    004901 - Restricted Cash and Cash Equivalents

Note regarding Loan Fund FOPPS: Since all cash balances in the Loan

    Funds are restricted to make loans to students, each month, to the extent

    that cash exceeds current liabilities, a transaction is recorded which

    changes the classification of some of the cash in Loan Fund FOPPS from

    unrestricted to restricted. The same analysis is done for capital construction

    Plant Fund FOPPS funded with debt.

The accounting entry is:

    ? Debit Account 004901 Restricted Cash and Cash Equivalent

    ? Credit Account 000150 Cash Offset

Two Accounts of note within the cash series include:

    ? Account 000200 Petty Cash

    ? Account 000300 Change Fund.

a) Petty Cash: Account 000200

    Petty cash is an amount of money issued to a department, in the charge

    of a custodian, to be used on a revolving basis for the payment of small,

    incidental expenses. Account 000200 records the petty cash held by

    departments.

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    UNIVERSITY OF COLORADO AT BOULDER

    DEPARTMENTAL FINANCIAL MANAGEMENT GUIDE

     BALANCE SHEET ACCOUNTS

    Account 000200 is debited for the amount of the fund when the petty

    cash fund is established, or when the amount of the fund is increased.

    This account is credited when the amount of the petty cash fund is

    reduced, or when the petty cash fund is terminated.

    Purchases made using petty cash funds should be charged to an

    appropriate expense account.

    For additional information concerning accounting for petty cash, refer

    to the Guide Chapter 10, Cash Control, Petty Cash Fund.

    The normal status for the petty cash account, 000200, is debit.

b) Change Fund: Account 000300

    Account 000300 records change funds held by departments. A change

    fund is an amount of money advanced to a department that accepts

    cash receipts from customers and, therefore, must have cash available

    to make change. Change funds should always consist of cash in the

    exact amount of the advance. An example of a change fund would be

    the currency and coins found in a department’s cash register or cash

    drawer.

    Account 000300 is debited for the amount of the fund when the change

    fund is established, or when the amount of the fund is increased. This

    account is credited when the amount of the change cash fund is reduced,

    or when the change fund is terminated.

    For additional information about change funds, refer to the Guide

    Chapter 10, Cash Control.

    The normal status for the change fund account, 000300, is debit.

    2. Investments:

    Accounts 000500 009999 Current

    Accounts 081000 081401 Non-Current

    Investment accounts are primarily used by the Treasurer’s office and are

    not to be used by most departments. If you believe you have a valid reason

    to use an investment account, contact your area accountant prior to

    executing the transaction.

Accounts in the investment series are used to record the various categories

    of investments held in the university’s investment portfolio. Investments

    can be current or non-current. Current investments refer to resources that

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    DEPARTMENTAL FINANCIAL MANAGEMENT GUIDE

     BALANCE SHEET ACCOUNTS

    will be realized within a year. Non-current investments refer to those that

    will be realized in a period exceeding a year.

    The status for investment accounts, 005000 009999 (current), and 081000 081401 (non-current) is normally a debit.

The investment accounts include:

    005000 - Cash Invest w/ Treas-Curr

    005100 - Invest-Sep Inv Funds-Curr

    005101 - INVEST-Sep. Reinvested Earning

    005102 - TTO Investments

    005200 - Invest-CU Found-Curr

    005201 - Invest-Reinvest Earnings-Curr

    005203 - Invest-Realized Gn/Ls-Curr

    005204 - Invest-Trust Held by Oths-Curr

    005300 - Invest-Blended Entities-Curr

    005400 - Invst-Non-pl Unreal Gn/Ls-Curr

    005401 - Invst-Pool Unrlzd Gn/Ls-Curr

    005402 - TTO Unrealized Gain/Loss

    081000 - Invest w/Treas-NonCurr

    081100 - Invest-Sep Invst Fund-NonCurr

    081101 - Invest Sep Reinvst Fnd-NonCur

    081200 - Invest CU Fdn-NonCurr

    081201 - Invest Reinvst Earn-NonCurr

    081203 - Invst Real Gn/Loss-NonCurr

    081204 - Invst Trust Hld by Oth-NonCur

    081300 - Invest-Blend Entity-NonCurr

    081400 - Invest NonPl Unreal G/L NonCu

    081401 - Invst Pool Unreal G/L NonCurr

    3. Accounts Receivable: Accounts 010000 014999 Accounts within this series are used to record amounts owed to the

    university. The most common use for accounts receivable is to record the

    sale of goods or services that have a future payment date. Accounts

    receivable represent a legal and enforceable claim. A few examples of other

    accounts receivable at CU-Boulder include parking tickets, late payment

    fees, and NSF check charges.

Items of note concerning accounts receivable:

    1. Date of delivery, not date of contract, is the effective sale date.

    2. Additional uses of accounts receivable include any other amounts

    owed to the university such as fines, insufficiently funded checks,

    etc.

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    DEPARTMENTAL FINANCIAL MANAGEMENT GUIDE

     BALANCE SHEET ACCOUNTS

    3. The accounts receivable structure in the Finance System has been

    designed to meet the requirements of accounts receivable reporting

    to the State Controller.

    4. Accounts receivable cannot be used for interdepartmental (IN) sales.

    5. An allowance for uncollectibles or doubtful accounts must be

    determined for any account receivable. All accounts receivable must

    be administered in accordance with the provisions of the

    Colorado’s Accounts Receivable Collections Administrative Rule:

    http://www.colorado.gov/dpa/dfp/sco/acct_rec/ar_rule.pdf.

The status for accounts within the accounts receivable series, 010000

    014999, is normally debit. The status for the allowance accounts within the

    accounts receivable series is normally credit.

Refer to The Guide Chapter 12, Accounts Receivable and Allowances, for

    complete instructions on working with accounts receivable.

The accounts receivable and allowance accounts include:

    010000 - AR-Fed Non-LOC

    010100 - AR-Fed LOC

    010101 - LOC AR Suspense

    010300 - AR-StOfColo Government

    010301 - AR-StOfColo Agencies

    010400 - AR-StOfColo Universities

    010500 - AR-StOfColo FedSubRecip

    010600 - AR-StOfColo Univ-FedSubRecip

    011000 - AR-InStateGovts

    011100 - AR-InStateGovts FedSubRecip

    011200 - AR-OutOfStGovts

    011300 - AR-OutOfStGovts FedSubRecip

    011400 - AR-Public University

    011500 - AR-Public Univ FedSubRecip

    012000 - AR-Grant Related Income-Other

    012100 - AR-Priv Gift/Grant/Contract

    012200 - AR-Priv FedSubRecip

    012300 - AR-Priv University

    012400 - AR-Priv UnivFedSubRecip

    012600 - AR-Accrued Investment Income

    012700 - AR-University Hospital

    012800 - AR-Patients

    012801 - AR-In-Patients

    012802 - AR-Out-Patients

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    DEPARTMENTAL FINANCIAL MANAGEMENT GUIDE

     BALANCE SHEET ACCOUNTS

    012900 - AR-Students

    012901 - AR-BRS Receivables

    012902 - AR-BRS Miscellaneous

    012903 - AR-Students Non-BRS

    012904 - AR-Lib Non-Student Chgs

    013000 - AR-Customers

    013100 - AR-Miscellaneous

    013101 - AR-Sponsorships

    013102 - AR-Tickets

    013103 - AR-Payroll Deductions

    013104 - AR-Returned Checks

    013105 - AR-Returned Merchandise

    013106 - Departmental Cash Clearing

    013107 - AR-TTO Royalties Rec

    013200 - AR-State Approp Not Remitted

    013300 - AR-Credit Cards

    Particular accounts of note within the accounts receivable series are those

    associated with student receivables and the Billing/Receivable System

    (BRS). These include:

    ? Account 012900 Accounts Receivable Students

    ? Account 012901 Accounts Receivable BRS Receivables

    ? Account 012902 Accounts Receivable BRS Miscellaneous.

    a) Accounts Receivable BRS: Accounts 012900, 012901, 012902

    BRS receivables can be recorded only by the BRS sub-system. The

    direct entry of any BRS transaction into this account through the

    Finance System is not allowed.

BRS, the main student accounts receivable system, is used to record

    amounts owed by a student for a sale of services. The BRS is used

    primarily for billing the following charges:

    ? Tuition

    ? Fees

    ? Housing

    ? Telecommunications

    ? Parking permits

    ? Library

    ? Wardenburg (health center)

Items of note concerning BRS accounts receivable include:

    ? An allowance for uncollectibles or doubtful accounts must be

    determined for any accounts receivable.

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    DEPARTMENTAL FINANCIAL MANAGEMENT GUIDE

     BALANCE SHEET ACCOUNTS

    ? All accounts receivable must be administered in accordance

    with the provisions of the State of Colorado’s Accounts

    Receivable Collections Administrative Rule on the Web at

    http://www.colorado.gov/dpa/dfp/sco/acct_rec/ar_rule.pdf..

    Refer to the BRS Manual for complete instructions. Contact the

    Bursar’s Office at bursar@colorado.edu to gain access to this

    document.

    The normal status for accounts within the accounts receivable BRS

    series, 01290x, is debit.

    BRS replacement note:

    The university is replacing its legacy Student Information System

    (SIS) with ISIS (Integrated Student Information System) during 2009-

    20 10. ISIS will incorporate financial aid and student billing and

    collections functionality and will continue to feed data to the General

    Ledger. It is scheduled to replace the BRS system during the summer

    of 2010 and this chapter will be updated when the ISIS project is

    completed.

    4. Accounts Receivable Allowances: Accounts 015000 019999

    This series of accounts is used to record the estimation of accounts

    receivable that management believes will not be collected. Departments

    must have guidelines addressing accounts receivable allowances, as

    allowance recognition and calculation must be logical and consistent.

    Note: The recording of an allowance does not remove the account receivable from the Finance System. The allowance is a valuation code.

    Refer to The Guide Chapter 12, Accounts Receivable and Allowances for more information about accounts receivable allowances.

The normal status for accounts within the accounts receivable allowance

    series 015000 019999, is credit.

The allowance for accounts receivables accounts include:

    015000 - Allw AR-Fed Non-LOC

    015100 - Allw AR-Fed LOC

    015300 - Allw AR-StOfColo Government

    015301 - Allw AR-StOfColo Agencies

    015400 - Allw AR-StOfColo Universities

    015500 - Allw AR-StOfColo FedSubRecip

    015600 - Allw AR-StOfColo UnivFedSubRec

    016100 - Allw AR-Colo In State Govts

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     BALANCE SHEET ACCOUNTS

    016200 - Allw AR-In ST Gvts FedSubRecip

     016300 - Allw AR-OutOfSt Govts

     016400 - Allw AR-OutOfSt Gvts FedSubRec

     016500 - Allw AR-Public Universities

     016600 - Allw AR-Public Unv FedSubRecip

     017000 - Allw AR-Grant Related Income

     017100 - Allw AR-Prv Gft/Grant/Contract

     017200 - Allw AR-Prv FedSubRecip

     017300 - Allw AR-Prv University

     017400 - Allw AR-Prv Univ FedSubRecip

     017600 - Allw AR-Accrd Invest Income

     017700 - Allw AR-University Hospital

     017800 - Allw AR-Patients

     017801 - Allw AR-IP-Doubtful Accts

     017802 - Allw AR-IP-Indigent Care

     017803 - Allw AR-IP-3rd Party Adj

     017851 - Allw AR-OP-Doubtful Accts

     017852 - Allw AR-OP-Indigent Care

     017853 - Allw AR-OP-3rd Party Adj

     017900 - Allw AR-Students

     017901 - Allw AR-BRS Receivables

     017902 - Allw AR-Students Non-BRS

     017903 - Allow AR-Lib Non-Stud NonBRS

     018000 - Allw AR-Customers

     018100 - Allw AR-Miscellaneous

    5. Loans and Notes Receivable

    Accounts 025000 027499 Current

    Accounts 083001 083300 Non-Current

    The loans and notes receivable accounts are not available for departmental

    use. If you believe you have a valid reason to use a loans and notes

    receivable account, contact your area accountant prior to executing the

    transaction.

These accounts are used to record loans receivable in the Loan Fund (Fund

    50) and notes receivable.

Loans are different from accounts receivable. A loan is an advancement of

    money to a student, and is supported by a promissory note that outlines the

    terms of the loan. An account receivable is generated by selling goods

    and/or services on credit.

All Loan Funds are administered by the Bursar’s office in conjunction with

    ABS. At a minimum, a promissory note must be executed for each loan

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    UNIVERSITY OF COLORADO AT BOULDER

    DEPARTMENTAL FINANCIAL MANAGEMENT GUIDE

     BALANCE SHEET ACCOUNTS

    made. Federal and state regulations may stipulate additional requirements.

    Additionally, a loan subsystem must be maintained. This subsystem will

    track each loan by individual and show the following information: amount

    of the loan, date the loan was made, date of payment, the breakdown of

    each payment between principal and interest, and the outstanding balance

    of each loan. The outstanding loan balances by individual must be

    reconciled at least monthly to the control amounts in the Finance System,

    as adjusted by the principal payments recorded in account 025400, loan

    payment clearing. Contact the Bursar’s office for more information about loans.

A Note Receivable is a ―designation of receivables for which a written

    statement acknowledging the obligation has been received from the thobligor‖ (Accountants’ Handbook, 6 Edition, page 17-40). This is in contrast to an Account Receivable in which ―no written statement

    acknowledging the obligation has been received from the obligor‖ th(Accountants’ Handbook, 6 Edition, page 17-40).

Notes receivable accounts are not generally used on the Boulder campus.

    As previously stated, loan promissory notes are accounted for in the loans

    receivable accounts. In contrast, all accounts receivable, even those

    supported by a written statement from the obligor acknowledging the

    obligation, are accounted for the accounts receivable accounts. This is done

    in order to provide the accounts receivable categories required in reporting

    to the State Controller.

Loans and notes receivable can be either current or non-current. Current

    refers to those loans and notes receivable whose resources will be realized

    within the current year. Non-current refers to those loans and notes

    receivable whose resources will not be realized until a period beyond a year.

The normal status for accounts within the loans and notes receivables series,

    025000 025500 (current) and 083001 083388 (non-current), is debit.

The loans and notes receivable accounts include:

    025000 - Loans Rec-Student Fed-Curr

    025100 - Loans Rec-ShTrm Inst-Curr

    025200 - Loans Rec-LongTerm Institution

    025300 - Loans Rec-Other-Curr

    025400 - Loan Payment-Clearing

    025500 - Notes Receivable-Curr

    083001 - Loans Rec Student Fed-NonCurr

    083101 - Loans Rec Inst-NonCurr

    083200 - Loans Rec Other-NonCurr

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    11/09 BALANCE SHEET ACCOUNTS: CHAPTER 9

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