Accounting System Structure - Section 20000
NOTICE TO READER:
Segments of this document in bold, italic print represent policy which can be changed only by authorization of the VMI Board of Visitors. All other segments represent procedures which may be changed by authorization of the Superintendent.
TABLE OF CONTENTS
20100 Description of the Accounting Ledgers
20200 Account Numbering
20300 Assignment of Account Numbers in Colleague Finance
20400 Requesting a New Account
20100 Description of the Colleague Finance Accounting System [Return to top]
The Colleague Finance System uses a 16-digit account number to record and report on all financial transactions for the Institute. Departments are responsible for monitoring budget and individual transactions to accounts for which they have control. The Comptroller’s Office will produce all required and requested financial reports for the Institute based on the information recorded in the Colleague Finance System. The Comptroller’s Office reconciles accounting information, bank accounts and transactions between modules on a monthly basis.
20200 Account Numbering [Return to top]
Every activity at the Institute has a unique account number to record its financial data. The Colleague Finance general ledger (G/L number) account number is a 16-digit account number that has five major components and six sub-components. The account number includes four delimiters bringing the total account number to 20 characters.
The breakdown of the G/L number is as follows:
The major components of the account number are:
Complete descriptions of the various components may be viewed by using the documents listed on the right side menu. The fourth component, the cost center, consists of five digits. The first two represent the department associated with the account and the final three represent the account name. A listing of departments is available however, this does not include all of the Institute cost center descriptions. Please direct any questions regarding any other types of object codes or Colleague account numbers to the Comptroller’s or Treasurer’s Offices.
20210 Revenue and Expense Object Codes [Return to top]
Object codes are four digit numbers, which represent individual types of revenues and expenses. Detailed revenue and expense object codes are established to provide the necessary specific information for financial reports and management control. If the Department needs to use an object code, other than those already existing within a given cost center, the Comptroller’s Office must first create that object code, within that cost center. All transactions must include the correct object code. The Purchasing and Comptroller’s Offices will return to the department those transactions with missing object codes or incorrect object codes. The department shall ensure that correct coding is used on all transactions. Improper coding will result in a delay in processing the transaction.
20300 Assignment of Account Numbers in Colleague Finance [Return to top]
Account numbers are assigned to departments or activities based upon types of revenues and expenses. Departments may have different accounts requiring different processing procedures. For example, a department may have a state funded account, a local unrestricted account and a local restricted account. The first digit of the account number immediately identifies state or local. Account numbers beginning with “1” or “2” are state funded accounts, “3” or “4” are local funded accounts.
“State Funds” refers to appropriations by the General Assembly of state general funds or those funds deposited by the Institute to the Treasury of Virginia to be accounted for by the State.
“Local Funds” are non-state funds deposited in and disbursed from the Institute treasury. Examples include: private gifts, grants, awards; VMI Foundation aid to the Institute; gate receipts for intercollegiate athletics and collections from other Institute activities.
Both state and local funds are public funds; both can be either restricted or unrestricted based on the source of funds and the requirements placed on the Institute by the donor or the General Assembly. Departments shall follow disbursement procedures as described in Sections 40000 and 45000 regardless of source of funds.
20400 Requesting a New Account [Return to top]
In order to create a new account, departments shall submit a request to create a new account to the Treasurer’s Office. The Treasurer shall approve or disapprove such requests. The Treasurer’s Office will notify the requesting department of the newly assigned account number and date established. Budgets for new accounts will be created according to the established budgeting procedures. Upon creation of a new account, the Comptroller’s Office will send the responsible department an Authorized Signatures form to be signed and returned to the Comptroller’s Office. Departments may request new object codes in existing accounts by contacting the Comptroller’s Office.