3.02 - Account Control Definitions

last updated: 08/14/2006

Policy Owner:  Financial Management

An account control is a four-digit subcode, appended to a six-digit general ledger account, and represents a specific asset, liability, fund balance, fund addition, fund deduction, or summary control.

The following account controls may only be used with general ledger accounts and are generally used only by the Financial Services Office. Departmental users should not use general ledger accounts and account controls to code source documents unless specifically instructed to do so in a policy or procedure, or by the Financial Management - Financial Services Office.

Listing| Assets (1xxx)| Liabilities (2xxx)| Fund Balances (3xxx)
Fund Additions (4xxx)| Fund Deductions (5xxx)| Summary Controls (9xxx)

Assets

Assets are items that are owned by the University, for example, cash, accounts receivable, investments and inventory.

Cash (1100 through 1180): Cash amounts maintained by the University in various accounts. Select the specific code that best describes the account or location of the cash.

Investments (1200-1299): Amounts maintained by the University in various investments. Select the specific code that best describes the type of investment.

*Receivables (1310-1499) Amounts due to the University. Select the specific code that best describes the receivable. Inventories (1510 through 1540): Cost or basis for supplies on hand:
  1. purchased for consumption,
  2. held for the purpose of resale, or
  3. used in producing goods or services for the purpose of resale.

Four account controls, 1510, 1520, 1530 and 1540, may be used to track different types of inventories.

Allowance for Obsolete Inventory (1590): A Contra account control, used in conjunction with inventories, to record the estimated amount of obsolete inventory. Note: This code may only be used by the Financial Services Office.

Prepaid and Clearings (1600 through 1670): Prepaid assets represent funds that have been expended, but for which the benefit has not yet been received. Clearing account controls are used to temporarily accumulate funds for later distribution to the correct account controls. Clearing account controls are generally used for control purposes to ensure that all activity is properly accounted for. Select the account control that best describes the prepaid asset or the clearing activity.

    Suspense - General (1600): A clearing account control used to hold amounts from nonpayroll transactions that have been processed by FRS in batch or in data collect, where the account or the subcode recorded for the transaction was invalid. This code should only be used with the Suspense - General clearing account 0-13000. The transaction will be analyzed to determine the error and a correcting journal entry will be processed to transfer the amounts from the clearing account to the correct account and subcode.

    Suspense - Payroll (1610): A clearing account control used to hold amounts from payroll transactions that have been processed by FRS in batch or in data collect, where the account or the subcode recorded for the transaction was invalid. This code should only be used with the Suspense - Payroll clearing account 0-13010. The transaction will be analyzed to determine the error and a correcting journal entry will be processed to transfer the amounts from the clearing account to the correct account and subcode.

    Payroll Clearing - Reissued Warrants (1611): A clearing account control used to record the net amount of reissued warrants until distributed to the proper accounts at a later time.

    Payroll Clearing - Employee FICA Payments (1612): A clearing account control used to record the amount of employee FICA payments until distributed to the proper accounts at a later time.

    Payroll Clearing - Hand-drawn Payroll Checks (1619): A clearing account control used to record the net amount of hand-drawn payroll checks until distributed to the proper accounts at a later time.

    Other Clearings (1620): Amounts held in clearing accounts for expenses other than those listed above.

    Prepaid Expenses (1640): Payments made for goods or services one year or less in advance of due date. Examples include prepayments on maintenance agreements, rent of building space, and insurance premiums.

    Deferred Charges (1670): Long-term (extending beyond one year) prepayments for goods or services.

Fixed Assets (1710 through 1790): The capitalized cost of assets owned by the University. Purchased assets are capitalized at cost in accordance with Capital Equipment Inventory; donated assets are capitalized at the fair market value on date of acquisition.

    Land (1710): Land owned by the University. The capitalized amount recorded for purchases of land includes the purchase price; closing costs, such as title, attorney and recording fees; and costs incurred in getting the land in condition for its intended use, such as clearing, grading, and filling.

    Land Improvements (1720): Improvements to land such as landscaping, walkways, parking lots, and fences.

    Buildings (assignable) (1730): Structures owned by the University. The capitalized amount includes the purchase price and all expenditures related directly to its acquisition or construction. This includes materials, labor, overhead costs during construction, architect fees, attorney fees and building permits.

    Buildings Improvements (1740): Improvements to buildings that are of a permanent nature. This would include permanent leasehold improvements.  Examples include installation of awnings and cabinetry construction. Repair and maintenance expenditures are not capitalized.

    Allowance for Depreciation - Capital Assets (1749):  

    A contra account control used in conjunction with 1720, 1730, 1740, 1760, 1780 and 1785 to record allowances for depreciation on ALL depreciable capital assets such as buildings, building improvements, sports facilities, leasehold improvements, infrastructure improvements, telecommunications infrastructure improvements, equipment, capitalized software, library materials and public art.

    1749 will be used only in the following GLs that we have identified to record depreciation expense and accumulated depreciation in:

    089100 - Buildings, Infrastructure & Improvements

    089400 - Oracle Software

    089401 - COSMOS SIS Software

    089960 - FFX Equipment

    089980 - Library Materials

    Equipment (1760): This classification includes all University owned tangible personal property that is capitalized other than library books and art objects, which are classified separately. Examples include data processing equipment, furnishings, machinery, vehicles, musical instruments and scientific equipment.

    Deliverables - Federal Title (1763): Capital equipment built by the University to be delivered to an outside entity.  The University does not hold title.

    Government-Furnished Equipment - Federal Title (1764): The capitalized cost of equipment furnished to the University by the Federal government.  The University does not hold title.

    Equipment - Federal Title (1765): The capitalized cost of equipment purchased with federal title monies. The University does not hold title to these assets; title remains with the grantor.

    Equipment - Other Title (1766): The capitalized cost of equipment purchased with monies from nonfederal grantors. The University does not hold title to these assets; title remains with the grantor.

    Library Books (1780): Cost or other basis of books held by the University library system. The University library system includes the main, graduate, law, medical and science libraries.

    Art Objects (1785): Cost or other basis of art objects and/or historical artifacts currently on display or held in the archives of University museums.

    Construction in Progress (1790): The capitalized costs of all uncompleted projects for construction of buildings and improvements. This account control is used only for the temporary capitalization of all the costs that are accumulated during the construction project. At the completion of the project, the total capitalized amount is transferred to the appropriate account control and recorded as a single asset.

Other Assets

    Other Assets (1800): Amounts recorded for debt issue costs to be amortized in future years.

    Other Assets - Short-Term (1801): Short-term portion of amounts recorded for debt issue costs.

    Other Assets - Long-Term (1802): Long-term portion of amounts recorded for debt issue costs to be amortized in future years.

    Other Assets - Reserves (1810): Amounts of assets reserved for specific uses.

    Internal Loan (1830): When used in an Operating Fund account, is an Internal Loan asset reported on the Statement of New Assets as, "Other Non-Current Assets" and is always used in conjunction with 2980-Due To Plant Funds/Inter-Fund Payables.  When used in Plant Funds, is an Internal Loan "contra" asset reported on the Statement of Net Assets, as "Other Assets" and is always used in conjunction with 19xx-Due From Other Funds/Inter-Fund Receivables.  As the Operating Fund account repays the internal loan via periodic cash transfers, the balance of 1830 is reduced along with the 2980-Due To and the 19xx-Due From.  1830 MUST net to zero for all fund groups combined.  For use as approved by FSO.

**Interfund Receivables - Due from Other Funds (19xx):Amounts due from an account in another fund. The last two digits indicate the fund group to which the accounts belong. Refer to the Account Control Listing.

Liabilities

Liabilities are items that the University owes, for example, accounts and notes payable and deferred revenues.

2000 Notes Payable - Short-Term, One Year or Less (2000): Amounts payable on promissory notes written for goods or services received.

Accounts Payable (2100): Amounts owed to suppliers for goods or services which have been received and invoiced. This code is updated automatically when vouchers or credit memos posted in the accounts payable system are flagged to use the accrual basis of accounting.

Accounts Payable, Foreign Currency (2110): Amounts owed to foreign suppliers for goods or services which have been received and invoiced. This code is updated automatically when vouchers or credit memos posted in the accounts payable system are flagged to use the accrual basis of accounting, if payment is to be made in foreign currency. This code is currently not being used.

Sales Taxes Payable (2150): Amounts owed to the State of Arizona Department of Revenue for sales taxes collected. Sales tax is collected on sales of tangible personal property to entities outside the University for consumption (not resale) within the state of Arizona. Sales tax is not collected if the products are sold primarily to other units within the University, and the selling department paid sales tax at the time the items were purchased for resale.

Unapplied Credits (2175): Face value of goods or services owed to entities outside the University that have paid for but not received their goods or services due to unusual circumstances. Examples include an entity that purchased goods from the University but received the wrong items. Upon reshipment of goods to the University, the entity would be credited for future purchases.

Miscellaneous Payables (2190): Accounts payable amounts other than those defined above.

Miscellaneous Payables Specific (2191 and 2192): Accounts payable amounts other than those defined above.

Withholding Federal Income Taxes (2210 through 2211): Federal income taxes withheld from 1042 payments. Refer to the Account Control Listing.

Payroll Withholdings (2240 through 2270): Amounts withheld as payroll deductions from employee earnings. Refer to the Account Control Listing.

Payroll Taxes Payable - Employer's Share (2340 through 2371): Amounts of contributions that the University is required to pay as employer. Refer to the Account Control Listing.

Reimbursements (2390) - Travel and miscellaneous expense reimbursements paid through the payroll system.

Accrued Payables (2410 through 2490): Amounts owed by the University that have not been paid. Refer to the Account Control Listing.

Discount on Bonds and COPs (2443): To record discount from the sale of bonds and COPs

Deferred Cost of Refunding (2450): Deferred amount on cost of refinancing debt (Call Premium) for future amortization.

Deferred Cost of Refunding  (2451): Short Term portion of deferred amount on cost of refinancing debt (Call Premium) for future amortization. For FSO only.

Deferred Cost of Refunding (2452): Long Term portion of deferred amount on cost of refinancing debt (Call Premium) for future amortization. For FSO only.

Deposits (2500 through 2503): Amounts on deposit with the University that the University may be required to repay in the future. NOTE: Account Controls 2501-2503 may only be used with approval by the Financial Services Office.

ERE Variances (2510 through 2517): The difference between applied and actual ERE contributions. Select the specific account control that describes the classification of employees to whom the variance applies. Refer to the Account Control Listing.

Graduate Assistant Tuition Remission ERE Pool(2518): Records entries in the Graduate Assistant Tuition Remission ERE Pool.

LWOP, Retirees Clearing (2530): Amounts held for employees on leave or retired employees who wish to continue receiving benefits but are not currently receiving paychecks.

HDC Offset Clearing (2531): Amounts held in a clearing account for hand-drawn checks.

Direct Deposit Clearing (2532): Amounts held in a clearing account for employee direct deposits (Sure Pay).

Employee Overpay Clearing (2533): Amounts paid back to the University by employees for payroll overpayments.

Worker's Compensation Clearing (2534): Amounts held in a clearing account for employer's contribution for worker's compensation.

Undistributed Receipts (2535): Used to temporarily record receipts until distributed to the appropriate accounts.

Payroll Agency Reserve (2536): Monies held for insurance refunds and rebates returned to employees.

A/P, Travel Reimbursement (2537): Monies held for expense and travel reimbursements due to employees.

Credit Card and Bank Deposits (2550-2560): Used to temporarily record bank and credit card receipts until distributed to the appropriate subsidiary ledger account. Refer to the Account Control Listing.

Federal Refundable Advance-Long Term Liability  (2590):  For use by the Financial Services Office, to record the portion of the federal loan programs that could be returned to the federal government as a liability.

Long-Term Debt (2600 through 2630): Amounts owed by the University to entities outside the University, where the due date is more than one year. Select the specific account control that best describes the type of debt.

    Notes Payable - One Year or More (2600): Long-term debt owed by the University in the form of a note.

    Capitalized Leases Payable (2610): Debt, generally paid in the form of periodic, cash payments, for the use of specific property in which ownership of the property is transferred at the end of the final lease payment and the purchase of the asset is capitalized.

    Bonds Payable (2620): Indentured debt incurred to finance capital facilities construction of the University.

    Mortgages Payable (2630): Debt owed in the form of a promissory note which pledges title to property as security for a loan.

Other Liabilities (2700 and 2800): Amounts owed to entities outside the University other than those listed above.

Due to Other Funds (29xx): Amounts due to an account in another fund. The last two digits indicate the fund group to which the accounts belong. Select the specific code that describes the fund to which funds are due. (Refer to the Account Control Listing.)

Fund Balances (3xx0):

The equity of an account, or the portion of assets available for use without incurring additional liabilities. Fund Balance is calculated as the difference between assets and liabilities. The middle two digits (xx) represent the fund group to which the account belongs. Select the specific code that describes the fund to which the account belongs. (Refer to the Account Control Listing.)

Fund Additions

 Appropriations (4010 through 4040): Amounts appropriated to fund specific University programs and activities. Select the specific code that describes the source of the appropriation. (Refer to the Account Control Listing.)

4050 Student Fees:  Fees received from students at registration for classes.

Gifts (4100 through 4190): Restricted donations of monies or property when recorded directly to a general ledger account. Gifts received by state, designated or auxiliary accounts should be recorded in the appropriate subsidiary ledger account using a revenue object code. When appropriate to record a gift in a general ledger account, select the code that best identifies the source of the gift. (Refer to the Account Control Listing.)

Grants and Contracts Grants & Contracts (4210, 4220, 4230 and 4240): Amounts received that are restricted to fund research or special programs, as specified in the grant or contract. Select the specific code that describes the source of the grant or contract. (Refer to the Account Control Listing.)

Grants & Contracts - Year End Accruals (4211, 4221, 4231 and 4241): Used to record accrual of expenditures at year end. Note: These codes may only be used by the Financial Services Office.

Plant Additions from Title Conveyances (4270):  To record the addition of capital assets in the Investment in Plant Fund based upon the conveyance (transfer) of title for capital assets to the University from another governmental agency (Federal or State) or another public or private University.  Such title transfers are NOT accompanied by a Gift Report but rather a letter of conveyance that legally transfers ownership and custody of the asset to the University.  The use of 4270 includes the additions for capital assets (typically equipment) that were purchased by the University in a prior fiscal year, that were Federal or Other Titled in that prior fiscal year, and for which the title is being conveyed to the University in the current fiscal year.

Investment Income (4310 through 4390): Income earned on various investments. Select the specific code that describes the type of investment income. (Refer to the Account Control Listing.)

NDSL/Perkins - Federal Government Advance (4400): Amounts advanced by the federal government for National Direct Student Loan/Perkins programs.

NDSL/Perkins - Institutional Match (4410): Matching funds provided by the University to match the National Direct Student Loan/Perkins programs in the amount of one-ninth of the federal government appropriation.

NDSL/Perkins - Institutional Overmatch (4415): Matching funds provided by the University to match the National Direct Student Loan/Perkins programs in excess of the one-ninth contribution recorded using account control 4410, NDSL/Perkins Institutional Match.

Health Professions - Federal Advance (4420): Amounts advanced by the federal government for health professions student loans.

Health Professions - Institutional Match (4430): Matching funds provided by the University for health professions student loans in the amount of one-ninth of the federal government appropriation.

Plant Additions from Current Fiscal Year Capital Coded (7xxx) Expenditures (4510): To record the addition of capital assets in the Investment in Plant fund based upon Capital Coded (7xxx) expenditures incurred in the current fiscal year.

Plant Additions from Lease/Purchase (4520):  To record 1) the addition of capital assets (ex.: 1760-EQUIPMENT) in the Investment in Plant resulting from a capital lease obligation; and 2) the addition of the corresponding capital lease payable (i.e. 2610-CAPITAL. LEASES PAY).  Note: This Account Control is used for reconciliation purposes only.  It must net to zero at the end of the fiscal year.

Retirement of Indebtedness - Principal (4590): Reduction of capitalized debt.

Other Fund Additions (4600): Fund additions other than listed above.

**Mandatory Transfers In (48xx):Transfers in from another general ledger account that are required by binding legal agreements, such as financing agreements for plant assets or sponsored project agreements with federal or state agencies, donors or other organizations.

For example, a financing agreement may require transfers for debt retirement, interest and required provisions for renewals and replacements of plant assets. A sponsored project agreement may require transfer of matching funds.

The last two digits indicate the fund group of the account from which funds were transferred. Select the specific code that represents the fund to which that account belongs. (Refer to the Account Control Listing.)

** Nonmandatory Transfers In (49xx): Discretionary transfers in from another general ledger account. These transfers are not required by a binding legal agreement. The last two digits indicate the fund group of the account from which funds were transferred. Select the specific code that represents the fund to which that account belongs. (Refer to the Account Control Listing.)

Fund Deductions

Refunds (5000 through 5050): Amounts refunded to grantors or governing bodies. Select the specific code that best describes the type of refund.

Loan Fund Deductions (5205 through 5260): Amounts deducted from loan funds. Select the specific code that best describes the type of deduction.

Plant Fund Deductions (5400 through 5560): Amounts deducted from plant funds. Select the specific code that best describes the type of deduction.

Other Fund Deductions (5610 through 5630): Other fund deductions. Select the specific code that best describes the type of deduction. **Mandatory Transfers Out (58xx): Transfers out to another general ledger account that are required by binding legal agreements, such as financing agreements for plant assets or sponsored project agreements with federal or state agencies, donors or other organizations.

For example, a financing agreement may require transfers for debt retirement, interest and required provisions for renewals and replacements of plant assets. A sponsored project agreement may require transfers of matching funds.

The last two digits indicate the fund group of the account to which funds were transferred. Select the specific code that represents the fund to which that account belongs. (Refer to the Account Control Listing.)

**Nonmandatory Transfers Out (59xx):Discretionary transfers out to another general ledger account. These transfers are not required by a binding legal agreement. The last two digits indicate the fund group of the account to which funds were transferred. Select the specific code that represents the fund to which that account belongs. (Refer to the Account Control Listing.)

Summary Controls

Current Budget Summary Controls (91xx): Provides the summary total of current budgets in all subsidiary ledger accounts mapping to a general ledger account. The last two digits indicate the fund group to which the accounts belong. Select the specific code that describes the fund to which the summary control relates. (Refer to the Account Control Listing.)

Future Budget Summary Controls (92xx) Provides the summary total of future budgets in all subsidiary ledger accounts mapping to a general ledger account. The last two digits indicate the fund group to which the accounts belong. Select the specific code that describes the fund to which the summary control relates.  (Refer to the Account Control Listing.)

Revenue Summary Controls (93xx): Provides the summary total of revenues in all subsidiary ledger accounts mapping to a general ledger account. The last two digits indicate the fund group to which the accounts belong. Select the specific code that describes the fund to which the summary control relates. (Refer to the Account Control Listing.)

Expense Summary Controls (95xx): Provides the summary total of expenditures in all subsidiary ledger accounts mapping to a general ledger account. The last two digits indicate the fund group to which the accounts belong. Select the specific code that describes the fund to which the summary control relates. (Refer to the Account Control Listing.)

*Encumbrance Summary Controls (96xx): Provides the summary total of encumbrances in all subsidiary ledger accounts mapping to a general ledger account. The last two digits indicate the fund group to which the accounts belong. Select the specific code that describes the fund to which the summary control relates. (Refer to the Account Control Listing.)

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maintained by: Mike Treiber
last reviewed: 7/2/04