Accounting and Financial Management Governance - BALANCE SHEET

The Balance Sheet represents the financial position of the University and Business Areas at a particular point in time. The Balance Sheets are represented as Assets, Liabilities, and Equity/Fund Balance/Net Position.

Assets represent resources available to meet current obligations

Examples: Cash, Receivables and Capital Assets

Asset GL’s start with 1XXXXX

All Asset GL’s, except for Allowances, should be a Debit balance

Allowance accounts should be a Credit balance

GL’s 101400 – 101425

System Generated

Business Areas cannot post directly to cash GLs

General Fund cash is allocated to Business Areas when the budget is posted (49500X)

Expenses use cash throughout the year

At the end of the year, the remaining balance is carried forward

GL’s 10145X

The terms change fund, cash fund, and revolving fund are often used interchangeably

Usage is limited to approved areas only

GL 102530

Used for expenses that occur on a travel card or cash advances approved by the Travel office

The traveler prepares an expense report and expenses owed back will credit this GL to reduce the receivable

Reconciled monthly by Accounting

GLs 107xxx

GL 107180 is EAM inventory – system generated postings

Other inventory GLs are recorded by departments

GLs 155xxx – Original acquisition values of capital assets

GLs 156xxx – total accumulated depreciation of capital assets

The sum of the 155xxx & 156xxx GLs is the net book value of the capital assets

190060 Backstop Receivable (Asset)

GL 190060 posts as transfer CI 496100 in FM

Currently only for capital projects, and must have approval to use

Liabilities represent obligations to pay for a product received or a service provided

Examples: Vendor and S&W Payables

Liability GL’s start with 2XXXXX

Typically, Liability GL’s should be a Credit balance

GL 201010 – vendor payables for payments pending to be paid to vendors

GL 201015 – GRIR

GL 201071 & 201080 – vendor payables related to SUA payments to vendors 

GL’s 201300 - 201315

Amounts collected from customers for sales tax are recorded by Business Area as a liability

The tax department will clear the liability amounts from Business Areas with each payment of the tax

GLs 202010 & 202020

System generated monthly accrual for salary & wages payable

290060 Backstop Payable (Liability)

GL 290060 post as transfer CI 496100 in FM

Currently only for capital projects, and must have approval to use

Equity represents the financial position and ability to pay future obligations (liabilities)

GL’s start with 3XXXXX

Balances do not change during the fiscal year

At year-end (June 30th), revenue and expenses close to the equity GL’s and the new balance carries forward on the balance sheet in period 0

New fiscal year revenue and expense will accumulate during periods 1-12
  • Debits and credits should be consistent with the type of Balance Sheet account.
  • Balances should be adjusted daily, monthly, quarterly or monthly depending on the type of Balance Sheet account.
    • Balances that are unchanged for multiple fiscal years should be understood taking into consideration the current (less than one year) versus long term (greater than one year) resource or obligation.
  • Physical Access/Safeguarding
  • Internal Control/Separation of Duties
  • Review Z100 at year end and for the current operating period.
    • Drill into by Fund
  • BPR Capital Assets Conversion GL’s
    • Assets retired in the legacy fund’s/ba’s
      • Asset value credited, accumulated depreciation debited
      • 568020 – Plant Assets Retired debited for NBV
      • 380010 – Fixed Asset Conversion Acct credited for NBV to offset net equity impact of 568020 entry
      • All entries were statistical in FM
    • Assets recapitalized in the new structure
      • Asset value debited, accumulated depreciation credited
      • 568020 - Plant Assets Retired credited for NBV
      • 380010 – Fixed Asset Conversion Acct debited for NBV to offset net equity impact of 568020 entry
      • All entries were statistical in FM

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