A-to-Z Index

1010 - Introduction

Effective Date: July 1, 2009

Table of Contents

   .100 Accounting Concepts
       .110 Basis of Accounting
   .200 Responsibility
   .300 Account Categories
       .310 Educational and General
       .320 Student Financial Assistance
       .330 Financial Assistance for E & G Services (Grants & Contracts)
       .340 Auxiliary Enterprises
       .350 Capital Outlay
       .360 Agency/Local
  .400 Accounting Codes
       .410 Fund/Fund Detail Codes
       .420 Program Codes
       .430 Department Organization Codes
       .440 Expenditure Account Codes
       .450 Revenue Source Codes
  .500 Reports
  .600 Departmental Responsibilities

.100 Accounting Concepts

.110 Basis of Accounting

The University follows GASB Statement 34 requirements for "reporting by special–purpose governments engaged only in business–type activities." Accordingly, the financial statements have been prepared using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. All significant intra–agency transactions have been eliminated.

The University's accounting policies conform with generally accepted accounting principles as prescribed by the GASB, including all applicable GASB pronouncements, as well as applicable FASB statements and interpretations, Accounting Principles Board opinions, and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. The University has the option to apply all FASB pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The University has elected not to apply the FASB pronouncements issued after the applicable date.

.200 Responsibility

The University Assistant Vice President for Finance is responsible for all financial data classifications and coding structures for JMU. All changes to any established financial related code or set of codes for JMU must be approved and/or issued by the Controller/Director of Accounting Services.

.300 Account Categories

This sub-section provides general information for the different categories of accounts included in the Financial Information System. The information is not intended to provide details of the generally accepted fund groups for the reporting of Higher Education financial data.

Separate accounting entities are maintained for Educational and General (E&G), Student Financial Assistance, Auxiliary Enterprises, Financial Assistance for E&G Services (Grants and Contracts), Capital Outlay and Agency/Local funds.

.310 Educational and General

Educational and General provides instruction, research, and public service and includes Instruction, Research, Public Services, Academic Support, Student Services, Institutional Support, and Operation and Maintenance of Plant.

The source of funds is partially from the General Fund of the Commonwealth of Virginia, student tuition and fees, sales and services of educational activities and miscellaneous, such as library fines.

.320 Student Financial Assistance

Student Financial Assistance provides financial assistance to Higher Education students. Scholarships and Fellowships are given in the form of outright grants and trainee stipends to individuals enrolled in official courses, either for credit or not.

.330 Financial Assistance for E & G Services (Grants & Contracts)

Financial Assistance for E & G Services provides resources for educational and general services through supplementing other activities within the system. This category includes all funds received or expenditures reimbursed under the terms of a grant or contract. Receipt and expenditure of funds must be made in compliance with federal and state regulations and within the grantor specifications.

.340 Auxiliary Enterprises

Auxiliary Enterprises provide essentially self-supporting goods or services to students, faculty, and staff. Auxiliary Enterprises includes Food Services, Bookstores and Other Stores, Residential Services, Parking and Transportation Systems and Services,Telecommunications Systems and Services, Student Health Services, Student Unions and Recreational Facilities, Recreational and Intramural Programs, Other Enterprise Functions, and Intercollegiate Athletics.

The source of these funds is exclusively from student fees and from the sale of goods and services. The General Fund of the Commonwealth provides no support to auxiliary enterprises.

.350 Capital Outlay

Capital Outlay accounts are established to record revenues and expenditures of construction, renewal and replacement, and acquisition of physical properties for University use. The source of funds is from University reserves, General Funds of the Commonwealth, proceeds from General Obligation Bonds, Revenue Bonds and from grants and gifts.

.360 Agency/Local

Agency and Local funds are held by JMU as custodian or fiscal agent for students, faculty, staff members, and organizations.

.400 Accounting Codes

Accounting codes are a series of numbers established to facilitate the systematic recording and reporting of accounting information pertaining to the financial activities of the University.

.410 Fund/Fund Detail Codes

Fund/Fund Detail Codes classify financial data according to appropriate funding source.

.420 Program Codes

Program codes accumulate financial information related to activities or sets of activities aimed at achieving specific objectives. This component reports program costs across agency and fund lines and provides for program budget formulation and control, on a statewide and university basis.

.430 Department Organization Codes

Department organization codes are assigned to individual departments to accumulate data related to the department's activities. This component accumulates budget, revenue (if appropriate) and expenditure information for a department.

.440 Expenditure Account Codes

Account codes classify expenditures into different categories and collects expenditure data in a systematic manner.

.450 Revenue Source Codes

Revenue source codes identify specific types of revenues and receipts collected to support University activities.

.500 Reports

Various financial information reports are available to the University Campus via the Financial Information System. Departments may contact System Security to determine the type and availability of reports and request access to their organization's data. Information Technology Computing Support provides training for accessing and using the Financial Information System.

.600 Departmental Responsibilities

It is incumbent upon all University personnel to adhere to the procedures outlined in the Financial Procedures Manual. The Division of Finance must assure that the University complies with applicable state and federal laws and their supporting administrative requirements. Further, adherence will support the responsibility of the Assistant Vice President for Finance to report, on an accurate and timely basis, the University's financial position to Senior Administrators, the President, Board of Visitors and various state officials.