Internal Accounting Structure

Salisbury University’s Chart of Accounts first consists of departments and projects. An entity is assigned either a department code or project code and it cannot have both. Most campus entities are assigned a department code, because most entities are operating on a fiscal year basis (July 1 – June 30). Projects operate on any timeframe and direction and they are mostly used for grants and fellowships.

Each department and project is then assigned to a fund code and program code. Fund codes and program codes are used mainly for financial and budgeting purposes. When processing any transaction, we must also assign an account code. The account code defines the type of expense, revenue or balance sheet item. A list of departments, projects and account can be found here: Departments, Projects and Accounts at SU.

Departments are a six-digit code used to represent an entity that operates on a fiscal-year basis. All academic and administrative entities are assigned a department code. We use this code to establish a budget and to track expenses, encumbrances and revenues (if applicable). At June 30, all department expenses and revenues are zeroed out as part of the year-end closing process and departments start with $0 revenues and $0 expenses at July 1. Cash does roll forward.

SU uses four primary categories of department codes as follows:

1. State Support - These codes starts with a “1” and will usually have expenses only.
   1. 10XXXX - Instruction Revenues
   2. 11XXXX - Instruction Expenses
   3. 129XXX - Academic Support Expenses
   4. 13XXXX - Research Expenses
   5. 144XXX - Student Services Expenses
   6. 151XXX - 152XXX - Plant Operations Expenses
   7. 155XXX - Institutional Support Expenses
   8. 16XXXX - Scholarship & Fellowship Expenses
   9. 17XXXX - Public Services Revenues & Expenses (most are self-supporting
2. Auxiliary - These codes start with a “3” and will usually have revenues and expenses.
   1. 300XXX - General Administration
   2. 301XXX - Housing & Residence Life
   3. 31XXXX - Dining Services
   4. 32XXXX - Bookstore
   5. 33XXXX - University Center
   6. 35XXXX - Miscellaneous
   7. 36XXXX - Special Events, Conference Planning
   8. 370XXX - Intercollegiate Athletics and Campus Recreation
   9. 378XXX - Athletics Administration
   10. 38XXXX - Non-Budgeted Self Supporting Activities
3. Agency Funded – These codes start with a “9” and will usually have revenues and expenses. These are regarded as non-University funds.
   1. 990XXX - RSOs and Other Student Groups Revenues & Expenses
   2. 991xxx-995xxx - Miscellaneous Agency Revenues and Expenses
   3. 996XXX - Scholarship Pass Thru
4. Plant Funds – These codes start with a “7” and will usually have expenses only.

Projects are a six-digit code used to represent externally funded grants and fellowships. Budgets are created based on the grant or fellowship award. Projects operate on any timeframe and duration. Grants are administered and monitored by the Office of Sponsored Programs (OSP). Fellowships tend to be monitored by OSP or the related school or academic department. Expenses, revenues and balances (cash, most importantly) roll forward to provide life-to-date totals.

SU uses four primary categories of department codes as follows:

1. Unrestricted Funds: Grant Cost Share and Others – These project codes starts with a “23” and will have revenues and expenses.
2. Fellowships – These project codes start with “29”
3. Grants – These project codes starts with a “4” or “5”

An account is a six-digit code used to record actual expenses, revenues and balance sheet items (e.g., cash, fund balance, etc.). SU’s account structure is based on the State of Maryland’s structure, which groups revenues and expenses into similar categories.

Accounts – Revenues

Revenues are categorized as follows:

Tuition and Fees (8343xx)
Federal and State Appropriations (847xxx)
Federal Grants (848xxx)
State Grants (8583xx)
Non-Governmental Grants (8649xx)
Sales of Educational Activities (8667xx)
Auxiliary Enterprises (8679xx)
Investment Income (87xxxx)
Agency Funds (89xxxx)

Accounts - Expenses

The State groups expenses into 14 categories as follows:

Object 01 - Salaries and Wages (PIN/Regular Salaries and Benefits)
Object 02 - Technical and Special Fees (All Contractual Salaries/Benefits, Honoraria)
Object 03 – Communications (Postage, Telecommunications)
Object 04 - Travel
Object 05 – WE DO NOT USE
Object 06 - Fuel & Utilities (only 151290 and Auxiliary Depts)
Object 07 - Motor Vehicle Operation and Maintenance (only 155250 & 300015 should use)
Object 08 - Contractual Services (Maintenance, IT, Professional, etc.)
Object 09 - Supplies and Materials
Object 10 - "Replacement" Equipment
Object 11 - "Additional" Equipment
Object 12 - Grants, Subsidies and Contributions (Educational grants, Fellowships)
Object 13 - Fixed Charges (Dues, Subscriptions, Licenses)
Object 14 - Land & Structures (Large Dollar Projects -Physical Plant, Auxiliary, Plant Fund Depts.)

SU creates its expense accounts based on those State objects. For example, all PIN Employee expenses have “01xxxx” account numbers; all travel expenses have “04xxxx” accounts, etc.

In addition, we use account numbers to budget expenses. We use four different budget pools as follows:

010001 - Salaries and Wages (PIN/Regular Salaries and Benefits)
020001 - Technical and Special Fees (All Contractual Salaries and Benefits are included)
030001 - Operating Expenditures (Objects 03 – 13)
140001 - Land & Structures (Only Physical Plant, Auxiliary and Plant Fund Depts.)

As expenses are recorded, they totals roll up to the aforementioned budget pools. For example, all “01xxxx” expense accounts roll up to the 010001 (“01”) budget pool; all “02xxxx” expense accounts roll up to the 020001 (“02”) budget pool; all “03xxxx” to “13xxxx” expense accounts roll up to the 030001 (“03”) budget pool; and all “14xxxx” expense accounts roll up to the 140001 (“14”) budget pool.

A fund is a four-digit code used to track revenues and expenses at a high level for financial reporting purposes to the State. Funds are comprised of the following:

401X – Unrestricted Education and General Funds (State-supported depts.)
402X – Unrestricted Projects Funds (Grant cost share and other projects)
403X – 404X – Unrestricted Auxiliary Funds (Dining, Housing, Athletics, etc.)
43XX – Restricted Grant/Projects Funds
46XX – Loan Funds (Perkins Loans)
47XX – Endowment Funds
48XX – Plant Funds
49XX – Agency Funds

A program is a five-digit code used to track revenues and expenses at a high level for activities specific to universities. Programs are used for financial reporting and for financial statements. Programs are comprised of the following:

01 – Instruction (All academic programs)
02 – Research (Grants)
03 – Public Service (Grants, Centers and Delmarva Public Media)
04 – Academic Support (Provost, Deans, Library, etc.)
05 – Student Services (Student Affairs offices)
06 – Institutional Support (President’s Office, Admin & Finance, Advancement, etc.)
07 – Operation & Maintenance of Plant (Physical Plant, Facilities Planning, etc.)
08 – Auxiliary Enterprises (Dining, Housing, Athletics, etc.)
17 – Scholarships & Fellowships (Institutional Aid, Pell, etc.)
41 – Student Loans (Perkins Loans)
42 – Agency Funds
44 – Plant Funds