Description of the University's Financial System
The use of a financial system makes it possible to accumulate and report financial information to those responsible for administration of University funds. The University's financial accounting system is specifically designed to support the financial management of the University of Oklahoma. In addition to the standard accounting functions of accounts payable, asset management, purchasing and general ledger, it also performs the specialized functions of encumbrance control, fund accounting, and grants management. The system maintains a financial data base from which standard reports are produced. Funds are assigned to department numbers (cost centers) which are identified by a specific number and title. Funds and departments are used to identify the “who” of the transaction.
In addition to departments and funds, all entries are made to specific accounts. Accounts specify the “what” of the transaction, since they identify the particular type of expenses, revenues, assets, etc.
Department numbers are used for administration and management of identifiable activities. A department number consists of nine (9) digits. Other than the third digit, which indicates the class of funds, no logic is built into the department number itself.
The third digit indicates the class of funds.
1 = Institutional Income. Cash received for tuition, fees, etc., is sometimes deposited in these departments. (xx1xxxxxxx)
2 = Educational and General Operating Budget. Normally called E & G Part I, these departments, which are funded primarily by an allocation from the State Regents and tuition and fees, operate under the constraints of a budget. Overspending the budget is not allowed. (xx2xxxxxx)
3 = Open.
4 = Service Units. These departments are self-supporting enterprises. The purpose is to provide services to other University departments at a lower cost than outside business enterprises. (Computer Services, Telecommunications, etc.).(xx4xxxxxx)
5 = Restricted Funds. Grant and Contract funds are received from local, state, and federal governmental agencies and other sources and monitored by the Grants and Contracts Administration Office. (xx5xxxxxx)
6 = Plant Funds. These departments are for construction and renovation projects. The funds come from public and private sources. (xx6xxxxxx)
7 = Agency Special. These are self-supporting departments with income from sales, dues, and donations. They include the Athletic Department, Housing and Food Service departments, student organizations, loans and endowments, and other self-supporting organizations. (xx7xxxxxx)
8 = Open.
9 = Clearing. Used only by Financial Support Services for accounting functions. (xx9xxxxxx).
This is the asset, liability, net asset, expense, or revenue code to be assigned to a transaction. It is a six digit number. The type of account can be identified by a suffix of:
- 01 for assets
- 02 for liabilities
- 03 for net assets (fund balance)
- 04 for revenues
- 05 for expenses
Within each of these account types, many individual accounts exist. The use of these accounts will assist you in identifying the type of expenditure made or revenue received.
ORGANIZATIONAL CODE STRUCTURE
Within the university's accounting system, organizational codes are maintained for each university department (e.g., within Dean/Director and President/Vice President/Provost levels). The first level identifies the President/Vice President/Provost level, the second level identifies the College/Departmental (Dean/Director) level and the third level identifies the Unit level. Each department number is assigned within a specific Unit/College/Vice Presidential combination within the system.
These codes are assigned by Financial Services when the department is originally established and are intended to reflect accurate data to ensure that financial information is assimilated and distributed correctly by various university departments.
During the course of events, a department may be organizationally reassigned to another Dean/Director and/or President/Vice President/Provost level. It is imperative that the organizational information be changed in the financial system when the department is reassigned. The Dean/Director must notify the corresponding President/Vice President/Provost of the reassignment who will then be responsible for notifying the University Controller and/or Financial Services using the APPLICATION FOR NEW DEPARTMENT NUMBER OR CHANGE TO EXISTING DEPARTMENT NUMBER or other form of communication. Upon notification, Financial Services is responsible for modifying the organizational structure within the accounting system.