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Section 3: Fund Accounting Principles

Establishing, Modifying and Inactivating an Account

Effective Date:

04/19/12

Approved By:

Lenora Chapman, Associate Vice President, Financial Affairs

Last Revised On:

05/01/12

For Assistance Contact:

Assistant Vice President, Financial Affairs and University Controller

PURPOSE/SCOPE

To provide information and guidance for DEFINE account establishment, modification, and inactivation. This guideline does not apply to 26-accounts (contact the Office of Post Award Administration [OPAA]) or capital project accounts (see UTSA Financial Management Operational Guidelines [FMOGs] Capital Projects (Budget Group 36-9xxx-xx) Procedures and Institutionally Managed Capital Projects (Budget Group 36-6xxx-xx and 36-8xxxx-xx) Procedures).

AUTHORITY

This guideline is in accordance with UT System policy UTS142.1 – Policy on the Annual Financial Report, generally accepted accounting principles (GAAP), and established fund accounting and internal control principles.


UNIVERSITY GUIDELINES

Table of Contents

A. Overview

All UTSA expenditures and revenues are recorded in the UTSA financial accounting system using departmental account numbers. Account numbers consist of a Budget Group and a Sub-Account. For more information, see Account Numbers, a section of FMOG - Chart of Accounts.

Although Unit Codes are not part of the account number, they are used to denote the department, division or college to which an account belongs according to the DEFINE reporting hierarchy.

Changes in Unit Codes and Budget Groups are sometimes necessary as a result of reorganizations and other personnel or program changes. UTSA provides centralized coordination and processing of these changes in order to:

  1. Facilitate accurate and timely financial accounting and reporting;

  2. Enhance internal control by providing a uniform process, consistent treatment, and accountability; and

  3. Help ensure compliance with legal and regulatory requirements

For changes to 26-accounts and capital project accounts, see the Purpose/Scope section of this guideline. For requesting other additions or modifications, use the Unit and Account Request Form, and for inactivating Budget Groups (Unit Code inactivation cannot be requested), see the Inactivating a Budget Group section.

B. Unit and Account Request Form

For 26-accounts and capital project accounts, see the Purpose/Scope section of this guideline. To request addition or modification of other Unit Codes and Budget Groups, submit a completed Unit and Account Request Form as follows.

  1. Download the Unit and Account Request Form.

  2. Follow the instructions to complete the form.

  3. Save a copy of the completed form and send as an email attachment to Accounting Services.

The Account Administrator and the person completing the form will be notified of the disposition of the request by email. If you do not receive a response within seven business days, contact Accounting Services.

NOTE: Accounting Services reserves the right to limit or question requests that do not meet financial reporting requirements.

1. Requesting a New Unit Code or Budget Group

Before requesting a new Unit Code or Budget Group, review FMOG Chart of Accounts to ensure you understand the UTSA account structure.

The following information is needed for requesting a new Unit Code or Budget Group.

    a. New Unit Code
      1. Recommended Unit Code title.
      2. Name of the Unit Administrator.

      3. Budget Groups to assign to the new Unit Code. If a Budget Group is to be moved from another Unit Code, provide the Unit Code number from which the Budget Group is to be moved. It is not necessary to complete a separate form to remove the Budget Group from the old Unit Code.

      4. If a new Unit Code is required due to a reorganization, explain the circumstances and, if appropriate, provide a new organizational chart to assure the unit code is placed on the correct hierarchical level for report distribution.

    b. New Budget Group

    • Unit Code to which the new Budget Group will be assigned.
    • Recommended Budget Group Number and Budget Group Title (for assistance, contact Accounting Services).
    • Recommended Fund Group.
    • Source of funding for the account (new revenue source, budget transfer, etc.). If the Budget Group is included in the annual operating budget, a base/permanent budget allocation must be made to the Budget Group, either during the budget process, or from a budget transfer.
    • Recommended NACUBO Program Code.
    • Subaccounts needed. If special identified subaccounts are needed, indicate the names and descriptions of the requested subaccounts in the appropriate subaccount category and explain why they are needed in the All Requests section of the form.

NOTE: The Account Administrator is not designated at the Budget Group level. The Unit Administrator for the Unit Code is the Account Administrator for all Budget Groups in the Unit Code.

2. Requesting Modification of a Unit Code or Budget Group

For 26-accounts and capital project accounts, see the Purpose/Scope section of this guideline. For other Unit Codes and Budget Groups, the Unit and Account Request Form is used to request the following modifications.

    a. Unit Codes
    • Change the Unit Code title.

    • Change the Unit Administrator (changing the Unit Administrator also changes the Account Administrator for all Budget Groups in the Unit Code).

    • Add Budget Groups to the Unit Code. If a Budget Group is to be moved from another Unit Code, provide the Unit Code number from which the Budget Group is to be moved. It is not necessary to complete a separate form to remove the Budget Group from the old Unit Code.

    b. Budget Groups

    • Change the Budget Group title.

    • Add subaccounts to the Budget Group. If special identified subaccounts are needed, indicate the names and descriptions of the requested subaccounts in the appropriate category and explain why they are needed in the All Requests section of the form.

NOTE: Use the Modify an Existing Unit Code section of the form to request the addition of existing Budget Groups to a Unit Code.

3. Required Additional Detail

This section is required for all requests (see the All Requests section of the form). Include additional information such as a detailed description of why the addition or modification is needed, how the new or modified Unit Code or Budget Group will be used, a detailed explanation for any special subaccounts requested, and any other details relevant to the request.

C. Inactivating a Budget Group

For 26-accounts and capital project accounts, see the Purpose/Scope section of this guideline. For inactivating other Budget Groups (Unit Code inactivation cannot be requested), the Account Administrator must send a written request (email is acceptable) to Accounting Services including the account title and number, the reason for requesting inactivation, and any other information related to the request. An account must have (1) no encumbrance balances, and (2) a zero budget balance before it can be inactivated.


DEFINITIONS

Term Description

Unit Administrator

The individual responsible for the accounts in a Unit Code. The Unit Administrator is also the Account Administrator for all accounts within the Unit Code.

REFERENCES/LINKS

None at this time.

RELATED FORMS/WORKSHEETS

1. Unit and Account Request Form


REVISION HISTORY

Date Description

05/01/12

Deleted the Account Administrator, Account Number, Budget Group, Subaccount, NACUBO Program Codes and Unit Code definitions from this FMOG and redirected hyperlinks to applicable sections in FMOG – Chart of Accounts.

02/23/12

Published new FMOG to be effective on 04/19/12.


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