Understanding Account Codes for Business Management Specialists
This content covers the basics of account codes, including types of expenses, selecting account codes for documents, allowable expenses, and more. It delves into operating ledger categories, computer account codes, and the selection process for different expenses, providing valuable insights for financial professionals.
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UNM February 19thand 20th, 2013 Terry Shoebotham, CPA Business Management Specialist
What we will Cover: What is an account code What are the basic types of account codes Selecting an account code for your documents Allowable Expenses F&A Excludable Account Codes
Account Code vs. Index ACCOUNT CODE Type of expense INDEX Where it is charged
Basic Account Code Types The highest level is Operating Expenses Other , which are for account codes 20xx through 9xxx. Some of these are used in your documents Those are the ones we will discuss
Operating Ledger Categories Category Salaries (20xx) Payroll Benefits (21xx) Supplies (31xx 37xx) Travel (38xx 39xx) Student Costs (4xxx 45xx) Research Costs (46xx 49xx) Patient Care Costs (5xxx) Communication Charges (60xx) Services (63xx 69xx) Plant Maintenance (70xx 75xx) Utilities (76xx 79xx) Other Expenses (80xx 81xx) Special Grant Contract Expenses Capital Expenditures (90xx 95xx)
Selecting an Account Code Item purchased is: Account Code starts with: 31xx 37xx $31,000,000 Volume through January 2013 Supply (paper to print on) 38xx 39xx $11,000,000 Travel (in state, out of state, foreign) 4xxx 45xx 63xx 69xx $122,000,000 $49,000,000 Student Cost Service (paying someone to print on paper)
Computer Account Codes 3140 Computer Software General Includes software (on disks, licensed, or downloaded) required to operate in-house computers. All computer software purchased is expensed here NO TAG 3150 Computer Supplies <$5,001 Computer Accessories (printers, keypads, monitors, mouse) NO TAG
Computer Account Codes NO TAG 3180 Non Capital Equipment <$5,001 Printers, IPADS for HSC Residents & Fellows if purchased with Book Funds 3189 Computers and Servers <$5,001 Computers such as laptops/desktops/ servers/ faculty IPADs. Excludes printers TAG REQUIRED
Plant Account Codes 70C1 Equip Warranties/Service Contracts 70D0 Equip Repairs Maintenance General 9020 Computer Hardware >$5,000
What are your Questions so Far? General account code questions Specific account code questions
F&A Excludable? Account Purpose 31B0-Food F&A Excludable Alcoholic beverages. Food expenses for entertaining, fund raising, and marketing. Student Activities and Alumni Expenses. Supplies used for promotional activities. Travel associated with lobbying, entertainment. Promotional items, gifts, and the costs of advertising and public relations designed solely to promote the University. Services purchased for F&A excludable activities or items. 37Y0-Supply Costs F&A Excludable 39Y0-Travel F&A Excludable 6350-Promotional Exp F&A Excludable Gen 69Y0-Professional Service F&A Excludable
F & A Excludable Guidelines Allowable Expenses only Excludable Expenses that are Allowed by policy but: solely promotional Receptions for donors, for prospective groups of employees to advertise UNM benefits, for fund raising Alcohol Always goes in 31B0 Never goes on an I&G index Never goes on a Contract or Grant Index
Food Allowable? F & A excludable, or not? For a fund raising banquet Allowable and Excludable 1. 2. For a Christmas party 3. For a mandatory meeting of all faculty during lunch May be allowable. Not excludable 4. For break room staff snacks Unallowable Unallowable
Food Allowable? F & A excludable, or not? 6. Snacks for faculty sponsored study/review session May be allowable. Not excludable 7. For Retirement cake for retiring staff member Unallowable 7. For a reception for a major donor May be allowable. Excludable
Supplies/Services Allowable? F & A excludable, or not? Uniform shirts for OMI investigators Allowable. Not excludable 1. 2. T shirts with a UNM logo for department staff Unallowable 3. Flowers for UNM Graduation Ceremony Allowable. Excludable 4. Flowers for a staff person who just graduated from UNM Unallowable
Supplies/Services Allowable? F & A excludable, or not? 5. Pens with UNM logo for prospective students Allowable. Excludable 6. Pens with UNM logo for recruiting prospective staff members Allowable. Excludable 7. Pens with UNM logo for staff members Unallowable
We have reviewed: What an account code is The basic types of account codes How to select an account code for your document Allowable? First thing to check F&A excludable account codes
