Departmental Financial Management Guide "The Guide"

Title Page

Table of Contents

Chapter Divider Sheets to insert between chapters when printing The Guide.

Chapter 1 Introduction to The Guide

The purpose of the The Guide is to provide employees of CU-Boulder with convenient access to the policies and practices associated with campus financial operations. Chapter 1 of The Guide orients employees to the organization and content of the manual. It also discusses the procedures used to update the information contained in The Guide.

Last updated April 2006. 

Chapter 2 Financial Environment of the University

The purpose of this chapter of The Guide is to provide an overview of the environment in which the business functions and the financial systems, policies, procedures, and practices of the Boulder campus operate.

Last updated April 2006.

Chapter 3 Responsibilities Associated with Financial Management

The purpose of this chapter of The Guide is to provide information about administering departmental finances. This chapter notes significant policies and procedures, provides an overview of internal control, gives suggestions for getting organized and ready to work, and provides a check list of periodic tasks to complete.

Last updated April 2006.

Chapter 4 Fund Accounting and Revenue Accounting Overview

The purpose of this chapter of The Guide is to provide an overview of fund accounting commensurate with the financial responsibilities and tasks engaged in at the departmental level. The chapter identifies important accounting standards, conventions, rules and procedures which guide how the university presents its financial statements. The chapter goes on to introduce the concepts of restricted vs. non-restricted funds and exempt vs. non-exempt funds per TABOR. The chapter also covers expense purpose codes and correct revenue recording.

Last updated September 2008.

Chapter 5 Chart of Accounts and the Accounting Structure

This chapter of The Guide provides information about the coding structure which constitutes the Chart of Accounts for the University of Colorado as used by the PeopleSoft financial system.

Last updated May 2006.

Chapter 6 Account ChartField

This chapter of The Guide introduces the Account ChartField. It explains the different levels and categories of accounts, discusses the debit and credit convention associated with accounts, and outlines a methodology for determining which account to use for a particular transaction.

Last updated September 2006.

Chapter 7 Financial Transactions and General Ledger Processes

This chapter of The Guide provides information about financial transactions and about the general ledger processes associated with the PeopleSoft financial system at CU-Boulder.

Last updated September 2006.

Chapter 8 Budget Theory

The purpose of the this chapter of The Guide is to explain the purpose of budgets, describe the budget cycle, discuss budgeting concepts and practices by fund, and to identify and understand budget information on PeopleSoft financial reports.

Last updated September 2006.

Chapter 9 Balance Sheet/SNA Accounts

This chapter of The Guide focuses on Balance Sheet/SNA Accounts. Balance Sheet/SNA Accounts, which have a range of 000000 - 199999, are used to record transactions pertaining to assets, liabilities, and fund balance. This chapter describes selected Balance Sheet/SNA Accounts, and provides guidelines for using these accounts.

Last updated May 2006.

Chapter 10 Cash Control

This purpose of this chapter of The Guide is to provide information about internal controls for cash management. The chapter also addresses the policies, practices, and procedures which guide the receipt and disbursement of cash.

Last updated April 2008.

Chapter 11 Inventory

The purpose of this chapter of The Guide is to explain the concept of inventory, and to discuss the policies, guidelines, and procedures associated with inventory on the Boulder campus. This chapter also includes forms for completing fiscal year-end Inventory tasks.

Last updated May 2006.

Chapter 12 Accounts Receivable and Allowances

The purpose of this chapter of The Guide is to establish guidelines for departments to follow in the administration of accounts receivable.

Last updated November 2007.

Chapter 13 Internal Service Centers

This chapter of The Guide articulates CU-Boulder's policy for Internal Service Centers (ISC). The chapter provides guidelines for establishing, costing, pricing, and administering ISCs. Note: This chapter should be read and reviewed by all staff responsible for the management of an ISC.

Last updated March 2008.

Chapter 14 Sponsored Projects Accounting

This chapter of The Guide serves as a resource for sponsored project post-award administration. The chapter covers the responsibilities of key players in post-award management, types of external support, award funding and payment, research team roles and responsibilities, rules and regulations, and project management. Posted December 6, 2004. 

Chapter 15 Gift Accounting

This chapter of The Guide provides background information on gift accounting and explains how to establish and administer gift funds. Updated July 2008.

Chapter 16 Financial Statements

The purpose of this chapter of The Guide is to provide information about the four financial statements that make up the standard monthly reporting to departments. As a way of understanding these statements, the chapter provides an explanation of a normal balance, and gives instructions for finding the “bottom line” when reviewing monthly statements. A description of how to access and run financial reports online through the Financial Reporting System and through PeopleSoft FIN Reporting is found at the conclusion of this chapter.

Last updated November 2006.

Appendix A

Basic Higher Education Fund Accounting Definitions

Last updated June 2005.

Appendix B

Basic Higher Education Fund Accounting Summary

Last updated April 2008.

Index

Updates and Revisions to The Guide (most recent listed first)

• Chapter 4, Sept 2008. Minor layout and grammar changes.

• Chapter 15, July 2008. Brought into compliance with new Gift SpeedType Setup and Maintenance FPS and new fundraising requirements.

• Chapter 10, April 2008. Brought into compliance with new Cash Control APS & FPS.

• Chapter 4, March 2008. Clarified the enterprise status designation of the university.

• Chapter 13, March 2008. Updated the ISC rate calc worksheet.

• Chapter 4, November 2007. Added OFA to list of departments with Agency funds.

• Chapter 12, November 2007. Corrected the procedure for credit card chargebacks.

• Chapter 10, May/June 2007. Weekly deposits of under $200. Updated to match policy. Added human subject payments.

• Chapter 10, Feb 2007. Increased maximum to $2500 and other minor changes.

• Chapter 16, Sept 2006. Updated to new Financial Reporting System.

• Chapter 8, Sept 2006. Updated financial statements to new System Reports.

• Chapter 7, Sept 2006. Updated COA form link.

• Chapter 6, Sept 2006. Updated financial reporting information & COA form link.

• Chapter 10, July 2006. Updated Change/Petty Cash form.

• Chapter 13, May 2006. Updated links, ISC rate calc form, formatting.

• Chapter 12, May 2006. Updated links and cash receipt, removed outdated statutes and SSNs on checks, added CCS Forms login requirement and online New Account Worksheet, corrected: CRS citations, internal references, account codes, JE example.

• Chapter 11, May 2006. Corrected inventory sale example & account #s. Formatting.

• Chapter 10, May 2006. Updated links, formatting, addresses, & Change/Petty Cash form.

• Chapter 9, May 2006. Updated links and formatting, added a few balance sheet accounts.

• Chapter 8, Feb & May 2006. Updated in Feb 06 by PBA staff including future Gift Fund budgeting changes. May 06 updated links, financial statement examples, and formatting.

• Chapter 7, May 2006. Revised navigations, added link, minor formatting changes.

• Chapter 6, May 2006. Updated account codes, descriptions, and navigations along with minor formatting changes.

• Chapter 5, May 2006. Updated campus codes, org chart, links, and sub-class example along with minor formatting changes.

• Chapter 4, May 2006. Updated PS navigation and links; replaced Accounting Directive 94-1 with Revenue Recognition APS; corrected Gift procedures to match new procedures.

• Chapter 1,2,3 April 2006. Hyperlinks and references were updated and added to reflect new Reporting Tool and Fiscal Code of Ethics policies.

• Chapters 1,2,3,4,5,6,7,8,9,10,11,12,13,14,16, June 2005. These chapters were updated to reflect changes resulting from the Finance System upgrade to version 8.4.

• Chapter 12, Accounts Receivable, Section X, Tuition Bills, Tuition Disputes, and Final Agency Determination, March 2005. A section discussing the process for disputing tuition charges has been added.

• Chapter 12, Accounts Receivable, Section XIII, F, Collection Fees, February 2005. The text of CRS 24-79.5-102 has been added. The State Auditor found that there may be insufficient legal basis for some of the delinquency and collection fees being added to accounts by agencies and institutions when they forward these accounts to the Department of Personnel & Administration for collection. The audit recommends that all state agencies provide documentation establishing their authority to add collection or delinquency fees to these accounts. Information about what is allowed by State Statute in terms of delinquency fees can be found in CRS 24-79.5-102.

• Chapter 10, Cash Management, February 2005. The order of the contents found in this chapter has been rearranged so that the functions done by the Office of Cash Management are grouped together in the first part of the chapter, and the responsibilities of Accounting and Business Support are found in the latter half of the chapter. Information about Securing Personal Data, such as recording credit card or social security numbers and restrictions on credit card receipts, has also been added.

• Chapter 12, Section XIII, D, Recording Collection Costs of The Guide, Accounts Receivable, page 24, January 2005. The chapter has been updated with new information as a result of findings made by the State Auditor relative to collection costs and delinquency charges pertaining to Accounts Receivable. 

• Chapter 10, Section VII B, Procedures for Getting a Change Fund and Section VIII, B, Requesting a Petty Cash Fund. November 2004. The following sentence contained in each of these sections, "The custodian must cash the check at the Cashier's window in Regent Hall," has been changed to, ""The custodian may cash the check at the Cashier's window in Regent Hall".

• Chapter 12, Section X, B, 1, Referral Exceptions. Reference to an October 2004 Memorandum from the State Controller relative to Exemption from the Accounts Receivable Collections Rule 1.37 for Debts of Public Entities was added.

• All Chapters, February & March 2004. Web links were updated.

• Appendix A, February 2004. The term FOPPS was added to the Glossary.

• Chapter 10, Section IV, K, Refunds, found on page 6 of the chapter, February 2004. The State Fiscal Rule reference in this section has been updated to reflect State Fiscal Rule changes that went into effect on July 1, 2003. The correct State Fiscal Rule reference is Chapter 6, Rule 6.

• Chapter 10, Section IV, D, Checks, found on page 3 of the chapter, January 2004. The check process has been revised to incorporate House Bill 03-1272 that prohibits recording a social security number or a credit card number when accepting a check for payment. Note: Due to the addition of the information from HB 03-1272, the page numbers in the Table of Contents for Chapter 10 have also been adjusted. 

• The Guide in its entirety was updated to reflect the change in Operating Expense Account from 450000 to 460000. January 2004.

• Chapter 9 page 12, December 2003: Threshold for recording prepaid expense has been changed from $10,000 to $35,000.

• Chapter 12, December 2003: All references to billing processes in this chapter were edited to clarify that departments should do their billing "as quickly as possible and, at the very least, prior to month-end."

• Chapter 13, October 2003: The following text, at the bottom of Page 3 in Chapter 13 - Internal Service Centers - has been changed as follows.

  • Delete the following: "For example, the CU-Boulder annual insurance premium is initially charged to a Risk Management Office FOPPS. The premium is then allocated to other units,"

  • And replace with: "For example, in Housing, purchases of certain food and supply items are initially charged to a centrally-administered FOPPS within the Housing Department. The expense is then allocated to other units within Housing," 

  This change is being made because Risk Management is no longer a Boulder campus operation.

• Chapter 10, September 2003: The following text addressing "Back-Up Custodian" should be added after the "Exception" section on Page 15 of Chapter 10 - Cash Control. 

1. Back-Up Custodian

In the event the custodian is unable to request the petty cash fund reimbursement her/himself because of absence due to illness, vacation, etc., it is permissible for the back-up custodian to make the reimbursement request and receive the reimbursement check. 

 

The voucher must very clearly indicate that the payment is a petty cash reimbursement for "name of official custodian" and include the reason the warrant is not made out to that custodian.

• Chapter 10, July 2003: Please add the following sentence to Chapter 10 - Cash Control - Page 15, Section E, Step 1: "Custodian must sign payment voucher as the requester."

• Chapter 4, March 2003: Extra pages titled "Desk Manual" were accidentally inserted at the end of Chapter 4 in The Guide. Please remove these and recycle them. March 2003.

Summary of Updates and Revisions to The Guide by Chapter (most recent listed first)

• Chapter 1, Introduction: Apr 2006, June 2005, March 2004, March 2003.

• Chapter 2, Financial Environment of the University: Apr 2006, June 2005, March 2004, March 2003.

• Chapter 3, Responsibilities Associated with Financial Management: Apr 2006, June 2005, March 2004, March 2003.

• Chapter 4, Fund Accounting and Revenue Accounting Overview: Sept 2008, March 2008, May 2006, June 2005, March 2004, March 2003.

• Chapter 5, Chart of Accounts and the Accounting Structure: May 2006, June 2005, March 2004, March 2003.

• Chapter 6, Account ChartField: Sep 2006, May 2006, June 2005, March 2004, January 2004, March 2003.

• Chapter 7, Financial Transactions and General Ledger Processes: Sep 2006, May 2006, June 2005, March 2004, January 2004, March 2003.

• Chapter 8, Budget Theory: Sep 2006, May 2006, February 2006, June 2005, March 2004, January 2004, March 2003.

• Chapter 9, Balance Sheet/SNA Accounts: May 2006, June 2005, March 2004, February 2004, December 2003, March 2003.

• Chapter 10, Cash Control: Apr 2008, Jun 2007, Feb 2007, July 2006, May 2006, June 2005, February 2005, November 2004, March 2004, February 2004, January 2004, September 2003, July 2003.

• Chapter 11, Inventory: May 2006, June 2005, March 2004, January 2004, March 2003.

• Chapter 12, Accounts Receivable and Allowances: November 2007, May 2006, June 2005, March 2005, February 2005, January 2005, October 2004, March 2004, December 2003, June 2003.

• Chapter 13, Internal Service Centers: March 2008, May 2006, June 2005, March 2004, October 2003.

• Chapter 14, Sponsored Projects Accounting: June 2005

• Chapter 15, Gift Accounting: July 2008, April 2007.

• Chapter 16, Monthly Statements: Sep 2006, June 2005, March 2004, March 2003.

• Appendix A, Higher Education Fund Accounting Definitions: June 2005, February 2004, March 2003.

• Appendix B, Basic Higher Education Fund Accounting Summary: April 2008, May 2007, May 2002.

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