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PeopleSoft Finance System Values

Balance Sheet Accounts

The balance sheet is the financial statement that reports the financial position of a particular entity as of a certain point in time. The balance sheet provides information about the entity's assets, liabilities, and fund balance. Within the PeopleSoft Finance System, designated ranges of Accounts have been assigned to these balance sheet classifications. These are:

  • Assets 000100 - 099999 (what you own)
  • Liabilities 100000 - 199899 (what you owe)
  • Net Assets (Fund Balance) 199900 - 199999 (what's left: the difference between what you own and what you owe)

Assets

An asset is defined as tangible and intangible personal and real property such as cash, investments, inventory, accounts receivable, loans receivable, prepaid expenses, equipment, buildings, land, improvements to land other than buildings, etc. All asset Accounts (except for allowance Accounts) should be in debit status. Allowance Accounts should be in credit status.

Assets include:

  • Cash
  • Accounts Receivable
  • Loans and Notes Receivable
  • Inventories
  • Other Assets
  • Non-Current Assets
  • Capital Assets
  • Due From Accounts

Accounts Receivable

Accounts within this series are used to record amounts owed to the University. The most common use for Accounts receivable is to record the sale of goods or services that have a future payment (collection) date. Accounts receivable represent a legal and enforceable claim.

Items of note concerning Accounts receivable:

  1. Date of delivery, not date of contract, is the effective sale date.
  2. Additional uses of Accounts receivable include any other amounts owed to the University such as fines, insufficiently funded checks, etc.
  3. The Accounts receivable structure in the PeopleSoft Finance System has been designed to meet the requirements of Accounts receivable reporting to the State Controller, through COFRS (The Colorado Financial Reporting System (COFRS). COFRS is the financial information system that maintains the official Accounting records for the government of the State of Colorado.
  4. Accounts receivable cannot be used for interdepartmental (IN) sales.
  5. An allowance for uncollectibles or doubtful Accounts must be determined for any Account receivable.

The status for Accounts within the Accounts receivable series 010000 -014999 is normally debit. The status for the allowance Accounts within the Accounts receivable series is normally credit.

The Accounts receivable and allowance Accounts include:

  • 010000 - AR-Fed Non-LOC [LOC=Letter of Credit]
  • 010100 - AR-Fed LOC
  • 010101 - LOC AR Suspense
  • 010300 - AR-StOfColo Government
  • 010301 - AR-StOfColo Agencies
  • 010302 - AR - State of Colorado - COF [COF=College Opportunity Fund]
  • 010400 - AR-StOfColo Universities
  • 010500 - AR-StOfColo FedSubRecip
  • 010600 - AR-StOfColo Univ-FedSubRecip
  • 011000 - AR-InStateGovts
  • 011100 - AR-InStateGovts FedSubRecip
  • 011200 - AR-OutOfStGovts
  • 011300 - AR-OutOfStGovts FedSubRecip
  • 011400 - AR-Public University
  • 011500 - AR-Public Univ FedSubRecip011501 - A/R BAB Subsidy
  • 012000 - AR-Grant Related Income-Other
  • 012100 - AR-Priv Gift/Grant/Contract
  • 012200 - AR-Priv FedSubRecip
  • 012300 - AR-Priv University
  • 012400 - AR-Priv UnivFedSubRecip
  • 012600 - AR-Accrued Investment Income
  • 012700 - AR-University Hospital
  • 012701 - AR-CU Foundation
  • 012702 - AR-Coleman
  • 012703 - AR-CUREF
  • 012800 - AR-Patients
  • 012801 - AR-In-Patients
  • 012802 - AR-Out-Patients
  • 012900 - AR-Students
  • 012901 - AR-BRS Receivables
  • 012902 - AR-BRS Miscellaneous
  • 012903 - AR-Students Non-BRS
  • 012904 - AR-Lib Non-Student Chgs
  • 012970-012974 - AR-Third Prty On Behalf Pymnts
  • 013000 - AR-Customers
  • 013100 - AR-Miscellaneous
  • 013101 - AR-Sponsorships
  • 013102 - AR-Tickets
  • 013103 - AR-Payroll Deductions
  • 013104 - AR-Returned Checks
  • 013105 - AR-Returned Merchandise
  • 013106 - Departmental Cash Clearing
  • 013107 - AR-TTO Royalties Rec
  • 013108 - AR-From UPI
  • 013109 - Company Card Personal Charges
  • 013200 - AR-State Approp Not Remitted
  • 013300 - AR-Credit Cards

Particular Accounts of note within the Accounts receivable series are those associated with student receivables and the Billing/Receivable System (BRS). These include:

  • Account 012900 Accounts receivable Students
  • Account 012901 Accounts receivable BRS Receivables
  • Account 012902 Accounts receivable BRS Miscellaneous.
Student Accounts receivables: Accounts 012900, 012901, 012902

Student receivables can be recorded only by the ISIS sub-system. The direct entry of any Student Receivables transaction into these Accounts through the Finance System is not allowed.

ISIS Student Financials, the main student Accounts receivable system, is used to record amounts owed by a student for a sale of services. It is used primarily for billing the following charges:

  • Tuition
  • Fees
  • Housing
  • Telecommunications
  • Parking permits
  • Library
  • Health Center

Items of note regarding student Accounts receivable:

  • An allowance for uncollectibles or doubtful Accounts must be determined for any Accounts receivable.
  • The Bursar's Office has primary responsibility over student receivables. Bursar staff/unit listing information is online:

The normal status for Accounts within the Accounts receivable BRS series, 01290x, is debit.

Accounts receivable Allowances: Accounts 015000 - 019999

This series of Accounts is used to record the estimation of Accounts receivable that management believes will not be collected. Departments must have guidelines addressing Accounts receivable allowances, as allowance recognition and calculation must be logical and consistent.

Note: The recording of an allowance does not remove the Account receivable from the Finance System. The allowance is a valuation code.

Refer to The Accounting Handbook Chapter 12, Accounts receivable and Allowances for more information about Accounts receivable allowances.

The normal status for Accounts within the Accounts receivable allowance series 015000 - 019999 is credit.

The allowance for accounts receivables Accounts include:

  • 015000 - Allw AR-Fed Non-LOC
  • 015100 - Allw AR-Fed LOC
  • 015300 - Allw AR-StOfColo Government
  • 015301 - Allw AR-StOfColo Agencies
  • 015400 - Allw AR-StOfColo Universities
  • 015500 - Allw AR-StOfColo FedSubRecip
  • 015600 - Allw AR-StOfColo UnivFedSubRec
  • 016100 - Allw AR-Colo In State Govts
  • 016200 - Allw AR-In ST Gvts FedSubRecip
  • 016300 - Allw AR-OutOfSt Govts
  • 016400 - Allw AR-OutOfSt Gvts FedSubRec
  • 016500 - Allw AR-Public Universities
  • 016600 - Allw AR-Public Unv FedSubRecip
  • 017000 - Allw AR-Grant Related Income
  • 017100 - Allw AR-Prv Gft/Grant/Contract
  • 017200 - Allw AR-Prv FedSubRecip
  • 017300 - Allw AR-Prv University
  • 017400 - Allw AR-Prv Univ FedSubRecip
  • 017600 - Allw AR-Accrd Invest Income
  • 017700 - Allw AR-University Hospital
  • 017800 - Allw AR-Patients
  • 017801 - Allw AR-IP-Doubtful Accts
  • 017802 - Allw AR-IP-Indigent Care
  • 017803 - Allw AR-IP-3rd Party Adj
  • 017851 - Allw AR-OP-Doubtful Accts
  • 017852 - Allw AR-OP-Indigent Care
  • 017853 - Allw AR-OP-3rd Party Adj
  • 017900 - Allw AR-Students
  • 017901 - Allw AR-BRS Receivables
  • 017902 - Allw AR-Students Non-BRS
  • 017903 - Allow AR-Lib Non-Stud NonBRS
  • 018000 - Allw AR-Customers
  • 018100 - Allw AR-Miscellaneous

Loans and Notes Receivable

Accounts 025000 - 027499 Current

Accounts 083001 - 083301 Non-Current

The loans and notes receivable accounts are not available for departmental use. If you believe you have a valid reason to use one of these Accounts, contact your campus controller's office prior to executing the transaction.

These Accounts are used to record loans receivable in the Loan Fund (Fund 50) and notes receivable.

Loans are different from Accounts receivable. A loan is an advancement of money to a student and is supported by a promissory note that outlines the terms of the loan. An Account receivable is generated by selling goods and/or services on credit.

All Loan Funds are administered by the Bursar's office in conjunction with your campus controller's office. At a minimum, a promissory note must be executed for each loan made. Federal and state regulations may stipulate additional requirements. Additionally, a loan subsystem must be maintained. This subsystem will track each loan by individual and show the following information: amount of the loan, date the loan was made, date of payment, the breakdown of each payment between principal and interest, and the outstanding balance of each loan. The outstanding loan balances by individual must be reconciled at least monthly to the control amounts in the PeopleSoft Finance System, as adjusted by the principal payments recorded in Account 025400, Loan Payment-Clearing. Contact the Bursar's office for more information about loans.

A Note Receivable is a “designation of receivables for which a written statement acknowledging the obligation has been received from the obligor” (Accountants' Handbook, 6th Edition, page 17-40). This is in contrast to an Account Receivable in which “no written statement acknowledging the obligation has been received from the obligor” (Accountants' Handbook, 6th Edition, page 17-40).

Notes receivable Accounts are not generally used at the campus level. As previously stated, loan promissory notes are Accounted for in the loans receivable Accounts. In contrast, all Accounts receivable, even those supported by a written statement from the obligor acknowledging the obligation, are Accounted for the Accounts receivable Accounts. This is done in order to provide the Accounts receivable categories required in reporting to the State Controller, through COFRS (The Colorado Financial Reporting System (COFRS). COFRS is the financial information system that maintains the official Accounting records for the government of the State of Colorado.

Loans and notes receivable can be either current or non-current. Current refers to those loans and notes receivable whose resources will be realized within the current year. Non-current refers to those loans and notes receivable whose resources will not be realized until a period beyond a year.

The normal status for Accounts within the loans and notes receivables series, 025000 - 025501 (current) and 083001 - 083388 (non-current), is debit.

The loans and notes receivable Accounts include:

  • 025000 - Loans Rec-Student Fed-Curr
  • 025100 - Loans Rec-ShTrm Inst-Curr
  • 025200 - Loans Rec LT Current Portion
  • 025300 - Loans Rec-Other-Curr
  • 025400 - Loan Payment-Clearing
  • 025500 - Notes Receivable-Curr
  • 025501 - Notes Rec-DPCUs
  • 083001 - Loans Rec Student Fed-NonCurr
  • 083101 - Loans Rec Inst-NonCurr
  • 083200 - Loans Rec Other-NonCurr
  • 083300 - Notes Receivable-NonCurr
  • 083301 - Notes Rec-NonCurr-DPCUs
Loans and Notes Allowances

Accounts 027500 - 029999 Current

Accounts 083500 - 083800 Non-Current

Entries into loans and notes allowance Accounts are made only by the Bursar's office or campus controller staff, and are not available for departmental use.

These Accounts are used to record the estimation of loans receivable and notes receivable that management feels will not be collected. Like the loans receivable and notes receivable Accounts, the associated allowance Accounts can be either current or non-current.

Recording a transaction in an allowance Account does not remove the receivable from the PeopleSoft Finance System. The allowance is a valuation code.

The normal status for Accounts within the loans and notes allowances series, 027500 - 029999 (current), 083500 - 083800 (non-current) is credit.

The allowance Accounts for loans and notes receivable include:

  • 027500 - Allw Loans Rec-Stud Fed-Curr
  • 027600 - Allw Loans Rec-ShTrm Inst-Curr
  • 027700 - Allw Loans Rec-LngTrm Inst-Cur
  • 027800 - Allw Loans Rec-Oth-Curr
  • 027900 - Allw Notes Receivable-Curr
  • 083500 - Allw LoansRec Stud Fed-NonCur
  • 083600 - Allw Loans Rec Inst-NonCurr
  • 083700 - Allw Loans Rec Oth-NonCurr
  • 083800 - Allw Notes Rec-NonCurr

Inventories

Inventory consists of goods in excess of $35,000 per location which are to be sold or consumed either within one year, or within an annual business cycle such as a fiscal year. Amounts in inventory Accounts represent the cost of unsold or unused goods that belong to the department.

The inventory Accounts are used primarily in Auxiliary Fund FOPPS (Funds 20, 28, 29), but may also be used in General Fund FOPPS (Fund 10). Talk to your campus controller's office before you record inventory transactions in Fund 10. Inventory Accounts rarely are found in other Funds.

Refer to The Accounting Handbook Chapter 13, Inventory, for additional information and Accounting instructions pertaining to this topic.

The normal status for inventory Accounts 030000 - 049999 is debit.

The inventory Accounts include:

  • 030000 - Invtry-Sales External to Univ
  • 040000 - Invtry-Internal Sales/Consumed
  • 040001 - Invtry-Medical Supplies
  • 040002 - Invtry-Office Supplies
  • 040003 - Invtry-New Furniture
  • 040004 - Invtry-Used Furniture
  • 040005 - Invtry-Computer Supplies
  • 040006 - Invtry-Paper Goods
  • 040007 - Invtry-Custodial Goods
  • 040008 - Invtry-LabSupply/AnimalBedding
  • 040009 - Invtry-Meter Postage
  • 040010 - Invtry-Bulk Meter Postage
  • 040011 - Invtry-Bus Reply Mail Prmt 165
  • 040012 - Invtry-Mail Permit #257
  • 040013 - Invtry-PeriodMail Prmt 651-060

Non-Current Assets

A non-current asset is an economic resource (tangible and intangible personal and real property such as investments, Accounts receivable, loans receivable, prepaid expenses, etc.) representing expected future economic benefits to be obtained or controlled by an entity that will not be converted into cash or used to provide goods or services within one year.

The normal status for the non-current asset Accounts is debit.

Capital Assets

The capital asset Accounts are used only by your campus controller's office and may not be used by departments.

According to the Higher Education Accounting Standards #5,Capital Asset Reporting http://www.colorado.gov/dpa/dfp/sco/standard.htm, a capital asset is defined as any physical resource that benefits a program for more than one year. The capital asset Accounts are used in the Investment In Plant Fund (Fund 74) to record the capitalization of capital expenditures such as land, improvements to land, building, leasehold improvements, equipment, collections, library books, and construction in progress. The capital asset Account titled Construction in Progress is used in the Capital Construction Plant Fund (Fund 71) during the course of the year, and then moved to Investment In Plant Fund (Fund 74) at year end. Changes in capital asset result from entering transactions for fixed assets acquisitions, additions, adjustments, and disposal during the year.

The chart below includes selected capital assets (listed alphabetically) and their associated dollar threshold amounts.

Capital Asset

Dollar Threshold

Buildings ≥ $75,000
Computer Software ≥ $75,000
Equipment ≥ $5,000
Film Collections (ITS/Film Studies only[BN3] ) all dollar amounts
Improvements to Land ≥ $75,000
Land all dollar amounts
Leasehold Improvements ≥ $75,000
Library Materials (Norlin & Law Libraries only) all dollar amounts
Remodeling ≥ $75,000
Renovation ≥ $75,000
Works of Art and Historical Treasures
(CU Art Gallery & Museum only[BN4] )
all dollar amounts

For more information about capital assets, contact your campus controller's office. The normal status for a capital asset Account 090000 - 094999 is debit.

The capital asset Accounts include:

090000 - Land090001 - Land Endowment
090100 - Depr Improve-Other Than Blds
090200 - Buildings
090300 - LeaseHold Improvements
090300 - Leasehold Improvement
090400 - Equipment >= $5000
090401 - Collections090455 - Non Depr Collections
090500 - Library Books & Materials
090600 - Construction-in-Progress
090601 - Construction in Progress Equip
a) Depreciation: Accounts 092500 - 093999

Depreciation is the systematic allocation of the cost of an asset to expense over the Accounting periods of the asset's estimated useful life. Depreciation is usually measured in years, but sometimes it is based upon the volume of usage.

Additional information about depreciation can be found in Higher Education Accounting Standard #5—issued by the State Controller—at http://www.colorado.gov/dpa/dfp/sco/standard.htm .

The normal status for depreciation Accounts 092500- 094999 is credit.

The depreciation Accounts include:

092500 - AccumDep-Improv OtherThan Blds
092600 - AccumDep-Blds
092700 - AccumDep-Leasehold Improvements
092800 - AccumDep-Equipment
092870 - Accum Depr Software
092900 - AccumDep-Libr Books&Materials
092901 - Accum Depr- Gifted Royalty Bks
092950 - Accum Depr-Collections
094000 - Accum Amortization-Patents

Due From Accounts

  • The Due From and Due To Accounts must be used together.
  • Agency FOPPS (Fund 80) cannot use Accounts in the due from series (except for student agency FOPPS).
  • Allloans must be approved by the System Controller.

These Accounts record loans of cash from one FOPPS to another, hence the Due From/Due To Account description. These loans can be within the same fund group, between different fund groups, or across campuses.

Accounts 095000 - 095900 identify the fund from which the loan is due within the same campus, and Accounts 096000 - 096900 signify that the loan is due from another campus. The offset Accounts for the due from transaction are the due to Accounts. These Accounts are 195000 - 195900 for loans within the same campus, and 196000 - 196900 for loans from one campus to another. The due to Account series is discussed later in the chapter.

The normal status for Accounts within the due from series, 095000-095999, is debit.

The Due From Accounts include:

095000 - DueFrom Unrest General Fund
095100 - DueFrom Unrest Aux/Self-Fund
095200 - DueFrom Restr Sponsored Pgms
095300 - DueFrom Restr Gift Fund
095400 - DueFrom Loan Fund
095450 - Due from- Intrnl Loan Interest
095500 - DueFrom Endowment Fund
095600 - DueFrom Plant-Unexp Constr
095700 - DueFrom Plant-Unexp R&R
095800 - DueFrom Plant-Retire of Debt
095900 - DueFrom Plant-Invest in Plant
096000 - DueFrom OC-Unrest Gen Fund
096100 - DueFrom OC-Unrest Aux/Self-Fnd
096200 - DueFrom OC-Sponsored Pgms
096300 - DueFrom OC-Restr Gift Fund
096400 - DueFrom OC-Loan Fund
096500 - DueFrom OC-Endow Fund
096600 - DueFrom OC-Unexp Constr
096700 - DueFrom OC-R&R
096800 - DueFrom OC-Retire of Debt
096900 - DueFrom OC-Invest in Plant

Procedures for Executing a Loan

When executing a loan, the borrower and lender must arrive at an agreement on the following points:

  • FOPPS involved
  • Amount of the loan
  • Reason for the loan
  • Repayment terms such as length of the loan, frequency of payments, amount of each payment, etc.

A formal principal repayment schedule should be drawn up, and the interest rate should be reasonable.

Signatures of both parties should be secured on the agreement. Once completed, the loan document must be submitted to the campus controller for approval.

Cash

Cash : Accounts 000100 - 004999

Do not use cash account 000100 on any transaction. It is maintained at the System level of the University, and the PeopleSoft Finance System has been programmed to reject any transaction entered directly to this Account.

The cash account 000100 records a claim on the Treasurer's cash pool according to the current principles of fund Accounting. Account 000100 refers to the University's cash, which is combined for investment purposes. Changes in cash result from entering transactions against other asset, liability, revenue, expense, and transfer Accounts, because the PeopleSoft Finance System creates an offset entry to the cash account for every transaction recorded in these other Accounts.

The normal status for Accounts within the cash series 000100 - 004999 is debit.

The cash accounts include:

  • 000100 - Cash
  • 000101 - Cash - French Francs
  • 000102 - Cash- British Pounds
  • 000103 - Cash - German Deutschmarks
  • 000104 - Cash - Canadian Dollars
  • 000105 - Cash-Payroll Overpayment
  • 000150 - Cash Offset
  • 000200 - Petty Cash
  • 000201 - Money Orders
  • 000300 - Change Fund
  • 000400 - Checking Accounts
  • 000500 - Cash with Trustee
  • 000600 - Deposits-in-Transit
  • 000700 - Cash with State Treasurer
  • 004901 - Restricted Cash and Cash Equivalents

Note regarding Loan Fund FOPPS: Since all cash balances in the Loan Funds are restricted to make loans to students, each month, to the extent that cash exceeds current liabilities, a transaction is recorded which changes the classification of some of the cash in Loan Fund FOPPS from unrestricted to restricted. The same analysis is done for capital construction Plant Fund FOPPS funded with debt.

The Accounting entry is:

  • Debit Account 004901 Restricted Cash and Cash Equivalent
  • Credit Account 000150 Cash Offset

Two Accounts of note within the cash series include:

  • Account 000200 Petty Cash
  • Account 000300 Change Fund
Petty Cash: Account 000200

Petty cash is an amount of money issued to a department, in the charge of a custodian, to be used on a revolving basis for the payment of small, incidental expenses that cannot be paid using another preferred form of payment such as CU Marketplace or the Procurement Card. Account 000200 records the petty cash held by departments.

Account 000200 is debited for the amount of the fund when the petty cash fund is established or when the amount of the fund is increased. This Account is credited when the amount of the petty cash fund is reduced or when the petty cash fund is terminated.

Purchases made using petty cash funds should be charged to an appropriate expense Account.

The normal status for the petty cash account 000200 is debit.

Change Fund: Account 000300

Account 000300 records change funds held by departments. A change fund is an amount of money advanced to a department that accepts cash payments from customers and, therefore, must have cash available to make change. Change funds should always consist of cash in the exact amount of the advance. An example of a change fund would be the currency and coins found in a department's cash register or cash drawer.

Account 000300 is debited for the amount of the fund when the change fund is established or when the amount of the fund is increased. This Account is credited when the amount of the change cash fund is reduced or when the change fund is terminated.

The normal status for the change fund Account 000300 is debit.

Investments:

Accounts 000500 - 009999 Current

Accounts 081000 - 081401 Non-Current

Investment Accounts are primarily used by the Treasurer's office and are not to be used by most departments. If you believe you have a valid reason to use an investment Account, contact your campus controller's office prior to executing the transaction.

Accounts in the investment series are used to record the various categories of investments held in the University's investment portfolio. Investments can be current or non-current. Current investments refer to resources that will be realized within a year. Non-current investments refer to those that will be realized in a period exceeding a year.

The status for investment Accounts 005000 - 009999 (current) and

081000 - 081401 (non-current) is normally a debit.

The investment Accounts include:

    • 005000 - Cash Invest with Treasurer
    • 005100 - Invest-Separate Invested Funds
    • 005101 - Invest-Separate Reinvested Earnings
    • 005102 - TTO Investments
    • 005103 - Fitz. Invest with State
    • 005104 - Distributable Income
    • 005200 - Invest-CU Foundation
    • 005201 - Invest-Reinvested Earnings
    • 005203 - Invest0Realized Gains/Losses
    • 005204 - Invest-Trust Held by Others
    • 005300 - Invest-Blended Entities
    • 005400 - Invst.-Non-pool Unrealized Gains/Losses
    • 005401 - Invst.Pool Unrealized Gains/Losses
    • 005402 - TTO Unrealized Gains/Losses

Liabilities

A liability is an amount owed to an external entity.

Per the Uniform Commercial Code, a liability is created upon receipt of goods from a common carrier, unless notice has been given to the vendor—within a reasonable time—that the goods are unacceptable. Upon acceptance of the goods and/or services, a liability and expense are created. Note: This Accounting entry occurs upon acceptance of the goods and/or services, regardless of when the vendor is paid.

A liability of deferred or unearned revenue is created upon the receipt of payment from a customer in advance of the University having earned the revenue through the provisions of goods and/or services.

Liability Accounts are normally in a credit status.

Liability Accounts Include:

  • Payables
  • Accrued Expenses
  • Other Liabilities

Payables

Payables[BN5] : Accounts 100000 - 104999

Most Accounts within the payables series are used to record amounts owed to vendors for goods or services received. Accounts of note within the payables series include:

100000 - AP-System-Generated
100100 - AP-Manual
100200 - AP-Contracts Payable
100300 - AP-BRS Clearing
100400 - Sales Tax Payable

The normal status for Accounts within the payables series 100000 - 104999 is a credit.

a) A/P System Generated: Accounts 100000 - 100099

Direct entries to Account 100000 are not allowed. Transactions are recorded in this Account as a result of the following:

Initially, a pre-encumbrance [BN6] is created in an expense Account when a purchase requisition is prepared, and then an encumbrance is created in the expense Account when the purchase order (PO) is issued. An encumbrance is also created in an expense Account when an item is ordered using a departmental purchase order (DPO). Standing purchase orders (SPO) also create an encumbrance. When the goods and/or services are received, invoices are then processed for payment. At this time, the appropriate expense Account will be debited, the balance sheet liability Account 100000 will be credited, and the encumbrance will be deleted. Upon actual payment of the amount due, the balance sheet liability Account 100000 will be debited, and the balance sheet cash account 000100 will be credited. Purchases made using a procurement card, payment voucher, Payment Authorization form, or IN are not encumbered.

Refer to the PSC website for complete purchasing and payables information.

The normal status for A/P system generated Account 100000 is credit.

The A/P system generated Accounts include:

100000 - AP-System-Generated
100001 - AP-Cullinet Accounts Payable
100002 - AP Accrual - Receipts
b) A/P Manual: Accounts 100100 - 100199

Except at fiscal year end, departments do not use the A/P manual Account. Use of this Account is typically limited to your campus controller's office.

Accounts within the range 100100 - 100199 are used to record accrued amounts owed to any external entity that are not processed through the A/P system. This Account is also used extensively at fiscal year end to accrue items not automatically accrued through the A/P system. A journal entry with a description that identifies the entity and explains the amount accrued is booked on the June preliminary statements for all Accounts payable items accrued for the year-end. Examples include travel, equipment, supplies, etc. The journal entry credits the balance sheet Account 100100 and debits the appropriate expense Account. This entry is automatically reversed in July. See The Accounting Handbook Chapter 18 Fiscal Year End for additional information.

The normal status for Accounts within the range 100100 - 100199 A/P manual is credit.

The A/P manual Accounts include:

100100 - AP-Manual
100101 - AP-United Parcel Service
100102 - AP-First Class Mail Presort
100103 - AP-Express Courier
100104 - AP-International Remail
100105 - AP-Demand Warrants
100106 - AP-Automate Clearing House
100107 - AP-Flats Presort
100108 - Royalties Payable Current
100109 - AP-Company CARD-PSC
100110 - AP - BRS Demand
100111 - BRS Manual
100112 - AP Treasury Manual
100113 - PBS ACH Transaction
100114 - AP-DPCUs
100115 - AP-Univ Hospital
100116 - AP-UPI owed to HSC
100117 - Gifts Payable to CUF
100118 - UPS Parcel Insurance Plan
100119 - AP - Other CO H/E Agencies
c) A/P Contracts Payable: Accounts 100200

Account 100200 - AP Contracts Payable should be used only for those contractual arrangements in which the University is collecting funds on behalf of another entity. This Account should not be used for normal payables.

Contracts payable are payables incurred as a result of a contractual arrangement. The most common circumstance is when the campus is contractually obligated to collect non-payroll funds on behalf of another entity. For example, the University contracts with an insurance company to provide student health insurance. The amounts collected from the students for this insurance represent a contract payable to the insurance company.

As the funds are collected from the students, they are deposited into the balance sheet Account 100200, A/P contracts payable. Per the contract, payment vouchers[BN7] are processed to disburse the funds to the entity for which the funds were collected.

The normal status for Account 100200, A/P contracts payable, is credit.

d) A/P BRS Clearing: Accounts 100300 - 100399

The BRS clearing Accounts are not for departmental use.These Accounts are used by the Bursar for clearing various types of student financial transactions. For additional information about the BRS clearing Accounts, refer to the Bursar's Office.

Depending upon the transaction involved, the status for the BRS clearing Accounts, 100300 - 100306, may be either debit or credit.

The A/P BRS clearing Accounts include:

100300 - AP-BRS Clearing
100301 - AP-BRS Clear-Accounts Payable
100302 - AP-BRS Clear-Financial Aid
100303 - AP-BRS Clear-Third Party
100304 - AP-BRS Clear-TA's and RA's
100305 - AP-BRS Clear-Grad Scholarships
100306 - AP-BRS Clear-Miscellaneous
100307 - AP-BRS Clear-COF
e) Sales Tax Payable: Accounts 100400 - 100403

Sales taxes are collected from a buyer by the seller when the buyer purchases certain goods and services. In turn, the seller remits the amounts collected to the taxing authority that levied the tax. This is usually a state, county, municipality, or special taxation district.

Sales taxes are collected and remitted as a matter of local and state law. Cash register tapes, sales journals, or other original record of the sales transactions should be available to the taxing authority so that it can determine that the correct amount of taxes was collected.

While the sales taxes are still in possession of the seller, they are reported on the balance sheet as a liability since they are an amount owed to a taxing authority. When taxable sales occur, use the appropriate Account within the 1004xx range to record that portion of the proceeds which represents sales tax. Then, by looking at the balance in Account 1004xx, statement readers can determine the amount of sales tax collected—but not yet paid—to the taxing authority as of the statement date.

For more information about sales tax, refer to the Sales and Use Tax Finance Procedural Statement https://www.cu.edu/controller/documents/FPS-Sales_and_Use_Tax.pdf.

The normal status for Accounts within the range100400 - 100499 sales tax payable is credit.

Sales tax payable Accounts include:

100400 - Sales Tax Payable
100401 - Sales Tax Payable-Boulder
100402 - Sales Tax Payable-Bould Accomo
100403 - Sales Tax Pay-St of Colorado
Sales tax collection: The basics

As a tax exempt entity, the University pays no sales tax on items purchased for official University business when bought through CU Marketplace, with the Procurement Card or a Purchase Order. However, when the University sells items to non-exempt end-users, we become just like any retailer. We must collect sales tax at the time of sale and remit it to the proper taxing authority.

Do you need to collect sales tax?

If your department only sells to other orgs or campuses, there is no sales tax. This means that internal sales made using an IN or Procurement Card are exempt. But if, for example, your department sells a t-shirt to the public, you must collect sales tax. Tax is due on sales of tangible personal property (i.e. you can touch it) and on a few services. One such service common to the University involves catered meals for fundraising events where the price of attendance includes a meal. In this case, tax is due on the fair market value (FMV) of the meal. Note that the published FMV can include the sales tax—you can use the “tax-included'' calculator tab on the ABS website to figure out the sales tax and net meal cost.

What tax rate to use?

The sales tax rate depends on three things: type of item sold (e.g. food vs. non-food); where the sale takes place or the delivery location; and the current tax rate. If that t-shirt were sold and sent to a CU alum in Hawaii, there would be no sales tax collected because the delivery was made out of state, and thus, out of our sales tax jurisdiction.

What happens after the tax is collected?

Say the price of the t-shirt is $15 and is sold on campus. Deposit the money with a cash receipt in the same month that the sale takes place: $15 to revenue in your speedtype and the sales tax to Account 100400 (Sales Tax Payable) in the appropriate speedtype.

What about fundraising events?

Fundraising events often involve sales that generate sales tax (e.g. meals & auctioned items). Due to the complexity of fundraising events, you have up until the 10th of the month following the closeout date of the event finances to report sales tax

Accrued Expenses

Accounts in this series are used to record a variety of liabilities. Examples include interest, salaries, wages, payroll withholding, and construction contract retainage. There is also an Account within this series called Other Accrued Expenses which is used to record liabilities that cannot reasonably be classified in any of the other liability Accounts.

Account designations of note within accrued expenses are:

105000 - Accrued Interest Payable
105100 - Accrued Salaries and Wages105101 - CPH - Accured Salaries and Wages
105102 - Accr Sal & Ben PayDate Shift
105103 - Salaries Wages Payable
105200 - Payroll Withholding
105201 - CFPE Dues Withholding
105202 - Long Term Care Withholding
105203 - Short Term Disability Withhold
105204 - American General Life Withhold
105300 - Construction Contract Retainage
105400 - Other Accrued Expenses
105401 - PSC
105402 - Abandoned Agency Funds
105403 - Unclaimed Warrant

The normal status of accrued expense Accounts 105000 - 105400 is credit.

a) Accrued Interest Payable: Account 105000

Most departments will not use the accrued interest payable Account. This Account is used to accrue interest expense payable, which is usually related to debt and other liabilities such as bonds payable, notes payable, mortgages payable, etc. Interest payable and interest expense should be accrued as of the date it is payable. Complete a journal entry to accrue the interest payable and the interest expense. Process a payment voucher to make the interest payment. This accrual process is done primarily at fiscal year end for financial statement and audit purposes. See The Accounting Handbook Chapter 18 Fiscal Year End for additional information.

The normal status for the accrued interest payable Account, 105000, is credit.

b) Accrued Salaries and Wages: Accounts 105100 - 105199
  • Account 105100 typically should not be used by departments, because it is system maintained.
  • If, at fiscal year end, the accrual process has missed any transaction(s), departments should contact their campus controller's office to determine whether or not it is suitable to use Account 105100.
  • If salaries and wages are accrued, benefits are also normally accrued.

Account 105100 is used to accrue salaries and wages payable to employees. It is used primarily in three areas:

  1. Accrual of salaries payable to faculty holding nine month appointments, but who are being paid over 12 months
    (9 pay 12)
  2. Year-end accrual of the salary payroll
  3. Year-end accrual of the hourly payroll.
  • Faculty 9 pay 12

The payroll system is programmed to accrue the salaries for the 9 pay 12 faculty. This process accrues the amounts for September through May. The payroll system then pays out these amounts from June through August. In other words, one-third of the faculty member's pay is withheld each month during the period of September through May and is then paid out during the months of June, July, and August.

  • Year end accrual of salary payroll

At year-end, some June salary payroll expense and payroll expense transfers do not get processed in time for the June payroll cutoff. Since the employee's work was done in June, the salary expense must be reflected as a June expense. The amount of June payroll expenses and payroll expense transfers that were not processed in the June payroll are accrued.

  • Year end accrual of hourly payroll

At year-end, special accrual programs are run to accrue the hourly payroll that represents the work completed through June 30, but not to be paid until after June 30. The hourly expense is booked in the appropriate departmental FOPPS as designated in the Human Resources Management System. The accrued salaries and wage liabilities are booked in select balance sheet Accounts as needed for financial statement reporting. These accrual transactions are automatically reversed in July.

The normal status for Account 105100, accrued salaries and wages, is credit.

The accrued salaries and wages payable Accounts include:

105100 - Accrued Salaries and Wages
105102 - Accr Sal & Ben PayDate Shift
105103 - Salaries Wages Payable
c) Payroll Withholding: Accounts 105200 - 105299

Since no action is needed on the part of the department with respect to payroll withholding (as the payroll system is programmed to record each type of withholding and the respective campus match, where applicable, into designated FOPPS) the payroll withholding Account should not be used by departments.

Accounts within the range 105200 - 105299 are used to accrue payroll withholdings from employee paychecks, and also to accrue any campus matching amounts. These include, but are not limited to, withholding and matching for

  • Income tax
  • Retirement programs
  • Insurance programs
  • Tax sheltered annuity programs.

Within the range of payroll withholding Accounts are found both short term and long-term Accounts. Using a short-term Account indicates that the liability will become due in a period of less than one year. Using a long-term Account indicates that the liability will become due in a period exceeding one year.

The normal status for Accounts within the payroll withholding series 105200 - 105299 is credit.

Payroll withholding Accounts include:

105200 - Payroll Withholding
105201 - CFPE Dues Withholding
105202 - Long Term Care Withholding
105203 - Short Term Disability Withhold
105204 - American General Life Withhold
d) Construction Contract Retainage:
  • Accounts 105300 - Current
  • Account 160000 - Non-Current

Since construction activity is administered primarily by Facilities Management[BN8] , the construction contract retainage Account is not used by departments. Retainage, in a construction contract, is the money earned by a contractor but not paid to the contractor until the satisfactory completion of construction or another predetermined date. The retainage is held back as assurance for the quality of the contractor's work.

Account 105300 Constr Contract Retainage-Curr is used to record the retainage liability on construction contracts that will become due within a year, and Account 160000 Constr Contract Retain-NonCur is used to record the retainage liability on construction contracts that will become due beyond a year. Thus, for each payment made to the contractor,

  1. The full invoice is charged as construction costs,
  2. The retainage amount is credited to Account 105300, and
  3. The net difference is paid to the contractor.

Upon satisfactory completion of the construction project, a payment voucher[BN9] is processed to pay this liability to the contractor.

The normal status for the construction contract retainage Accounts 105300 and 160000 is credit.

4. Accrued Compensated Absences

Accounts 108000-109999 Current

Accounts 160500-169999 Non-Current

The accrued compensated absence Accounts should not be used by departments. They are used only by the campus controller for year-end accrual adjustments and financial reporting. See The Accounting Handbook Chapter 18 Fiscal Year End for additional information.

Accounts within this series are used to record the University's liability arising out of vested annual and sick leave accruals. Using a current Account indicates that the liability will become due in a period of less than one year. Using a long-term Account indicates that the liability will become due in a period exceeding one year.

The primary Accounts within the current series are:

108000 - CompAbsences-Annual Leave-Curr
108100 - CompAbsences-Sick Leave-Curr

The primary Accounts within the non-current series are:

160500 - Comp Absence Annual Lv-NonCur
160600 - Comp Absence Sick Lv-NonCurr

The normal status for the accrued compensated absence Accounts 108000 - 109999 (current) and 1600000 - 169999 (non-current) is credit.

Other Liabilities

The Accounts within this series record liabilities that cannot reasonably be classified in any of the other liability Accounts. Examples include:

  • Account 150000 Contingent Liability
  • Account 150100 Risk Financing Related Liabilities
  • Account 150200 Unearned Revenue
  • Account 150300 Undistributed Receipts
  • Account 150400 Deposits Held in Custody

The normal status for the other liabilities Accounts 150000 - 159999 is credit.

a) Contingent Liability - Current:
  • Accounts 150000 - 150099 Current
  • Account 180000 - Non-Current

Since contingent liabilities are very difficult to determine, this Account is not usually used by departments. Contact your campus controller's office before using the contingent liabilities Account.

The Accountants' Handbook, 6th Edition (p. 25-30) provides the following discussion of contingent liabilities:

There is often some confusion between estimated liabilities and contingent liabilities. Hendriksen (Accounting Theory) makes the following distinction (p. 361):

…The difference between an estimated liability and a contingent liability is that a liability has a positive most probable value even though this must be estimated; a contingent liability will probably not result in a specific obligation, but there is a chance that a specific obligation may arise if an event or events occur. For example, obligations under warranties are definite liabilities because it is highly probable that some payments will be required even though the total amount must be estimated. A legal suit against the company for damages, however, is a contingent liability if it appears likely that the firm will lose the case. If it is almost certain that the case will be lost, a liability exists and the main problem is in estimating the most probable amount of damages to be awarded . . .

…Accrual of Loss Contingencies. In SFAS No. 5 the FASB requires that an estimated loss from a loss contingency be accrued by a charge to income if both the following conditions are met:

  1. Information available prior to the issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements. This condition implies that it must be probable that one or more future events will occur confirming the fact of the loss.
  2. The amount of loss can be reasonably estimated.”

Therefore, a liability is not accrued as a contingency unless it is

  • highly probable that an event or events will occur resulting in a loss to the campus, and
  • the amount of the loss can be reasonably estimated.

For example, a loss contingency exists if a lawsuit is filed against the University. However, the University would not book a loss and the associated contingent liability unless the University thought it was highly probable that it would lose the lawsuit and the amount to be paid under the lawsuit could reasonably be estimated.

Contingent liabilities are categorized as being either current or non-current. Using a current Account indicates that the liability will become due in a period of less than one year. Using a non-current Account indicates that the liability will become due in a period exceeding one year.

Upon determining a contingent loss is a liability, prepare a journal entry to record the loss and the contingent liability. Upon final determination that the liability must be paid, process a payment voucher. This voucher should charge Account 150000 (current) or 180000 (non-current). Any difference between the actual payment amount and the accrued amount should be corrected with a journal entry.

The normal status for Accounts 150000 current contingent liability, and 180000 non-current contingent liability, is credit.

The contingent liability Accounts include:

150000 - Contingent Liability-Curr
180000 - Contingent Liab-NonCurrent
b) Risk Financing Related Liabilities:
  • Account 150100 - 150199 Current
  • Account 180100 - Non-Current

These Accounts are generally only used by the campus controller's office and the Office of Risk Management. They are used at the end each fiscal year to record any retrospective premium liability.

Accounts within the 1501xx series record the insurance premium liability for coverage on general liability, property, automobile liability, and workers' compensation that will become due within the year. Account 180100 records these insurance premium liabilities that will become due beyond a year.

At the end of each fiscal year the University's insurance carrier for the above programs calculates a retrospective premium for the previous fiscal year. This is the actual premium the University should have paid for that year. This amount is then compared to the estimated premium the University did pay. This calculation usually results in an additional net premium expense to the University that must be recorded as an expense and liability of that fiscal year.

Risk financing-related liabilities are further categorized as being either current or long term. Using a current Account indicates that the liability will become due in a period of less than one year. Using a long-term Account indicates that the liability will become due in a period exceeding one year.

The normal status for Account 150100 current risk financing related liabilities and Account 180100 non-current risk financing related liabilities is credit.

The risk financing related liabilities Accounts include:

150100 - Risk Financing Rel Liab-Curr
150101 - IBNR Reserve
150102 - Withhold Reserve
150103 - Termination Reserve
150104 - Odd Year Flex
150105 - Even Year Flex
180100 - Risk Financing Rel Liab-Non-Cur
c) Unearned Revenue: Account 150200 - 150299 Current
  • Account 180100 - Non-Current

Discretion is required in the use of the unearned revenue Account, as only true unearned revenue can legitimately be recorded. Current operating revenue should not be recorded in this Account.

Accounts in the series1052xx (current) are used to record funds received prior to a good or service being provided when it is anticipated the good or service will be provided within a year. Account 180200 (non-current) is used to record funds received prior to a good or service being provided when it is anticipated the good or service will be provided beyond the period of one year. The correct use of these Accounts is essential for proper accrual Accounting by recognizing revenue in the period in which the goods or services were provided, rather than by when the cash was actually received.

A cash receipt is the source document for recording unearned revenue. Credit balance sheet Account 1502xx unearned revenue current or 180200 unearned revenue non-current when depositing the cash.

The unearned revenue system consists of:

  • The unearned revenue balances in Account 1502xx and 180200.
  • The FOPPS in which the revenue is to be recorded.
  • A schedule of the unearned revenue amount and a schedule listing when to prepare the journal entry that will convert the unearned revenue to revenue.

Procedure for Unearned Revenue

  1. Receive the unearned revenue and record it using a cash receipt in the appropriate departmental FOPPS using Account 1502xx (current) or 180200 (non-current) as appropriate.
  1. When the goods or services have been provided, prepare a journal entry to convert the unearned revenue to normal revenue in the appropriate revenue Account.

The transaction on the journal entry is

  • Debit: balance sheet Account 1502xx (current) or 180200 (non-current)
  • Credit: appropriate revenue Account
  1. Compare and reconcile the revenue Account to the unearned revenue Account, 1052xx (current) or 180200 (non-current), to verify that the entries are going into the proper Accounts for the correct amount and at the correct time.
  2. Supply a list explaining unearned revenue balances by customer as of June 30th to your campus controller's office as directed in the fiscal year end closing instructions.

The normal status of Account 1502xx unearned revenue current, and 180200 unearned revenue non-current, is credit.

The unearned revenue Accounts include:

150200 - Unearned Revenue-Curr
150250 - Unearned Rev-Fed-Curr
180200 - Unearned Rev-Non-Curr
d) Undistributed Receipts: Accounts 150300 - 150399

Receipts must be deposited in a timely fashion. For departments receiving funds on a daily basis, this would mean making daily deposits. Departments that receive only nominal amounts on a sporadic basis are permitted to hold their receipts until they total $200.00 before making the deposit but cannot hold cash over the weekend unless granted authorization byt the ccampus controller. In any event, all receipts on hand at the last working day of each month must be deposited that day.

Occasionally funds are received for which the University does not know the purpose of the payment. As a result, it is not possible to determine the correct FOPPS-Account combination for depositing the funds. The undistributed receipts Account is used to facilitate the timely deposit of these funds, as required by policy, while the purpose of the payment and the correct Account is being determined.

Procedure for Undistributed Receipts

A cash receipt is the source for recording undistributed receipts. Funds should be credited to Account 150300 (or 150301 for credit cards) in a departmental FOPPS. The department must then determine the purpose of the payment. This may involve contacting other departments that might reasonably have been the intended payee, or it perhaps contact­ing the payer for more information on the purpose of the payment.

The department should maintain a record of each deposit and reconcile to these to Account 150300 or 150301. When the purpose of the payment has been determined, a journal entry should be processed to move the funds from the undistributed receipts Account 1503xx to the appropriate revenue Account within the FOPPS.

The transaction for this journal entry is:

  • Debit: balance sheet Account 150300 or 150301
  • Credit: correct Account

The normal status for Account 1503xx, undistributed receipts, is credit.

The undistributed receipts Accounts include:

150300 - Undistributed Receipts
150301 - Undistributed CC Revenue
e) Deposits Held in Custody: Accounts 150400 - 150499

Discretion is required in the use of this Account, as only true deposits held-in-custody can be legitimately recorded. Departments must maintain detailed records, by payer, of the amounts due. Deposits to be recognized as University revenue must be done so on a timely basis, when the payer fails to meet the conditions required for the return of the deposit.

This Account records receipts that are not normally University revenue. This is cash held by the University that is to be returned to the payer upon their satisfactory performance. In other words, when certain future conditions are met, funds are returned to the payer. If the conditions are not met, the cash is retained by the University as revenue.

An example would be a security deposit held for the issuance of University keys. When the keys are returned, the deposit is returned to the payer. If the keys are not returned, the deposit held-in-custody is moved to a revenue Account.

Deposits abandoned by the depositor become escheat property to the University.

In October 1993, the Governmental Accounting Standards Board issued Statement #21 - Accounting For Escheat Property. Statement #21 is effective for fiscal years beginning July 1, 1994 (FY 1994-95). Escheat property is defined in Statement #21 as follows:

“Escheat [property] is the reversion of property to a governmental entity in the absence of legal claimants or heirs. Property escheats from the estate of a person who dies intestate without any known or discoverable heirs at the time the estate is settled. For the purposes of this Statement, escheat property also includes abandoned and unclaimed property. Abandoned and unclaimed property results from the failure of a person who is legally entitled to property to make a valid claim against the holder of the property within a prescribed period of time.”

Escheat property at the University of Colorado consists primarily of warrants issued by the campuses of the University which have not been presented for payment by the recipient. The University has had inconsistent Accounting treatment between campuses for escheat property resulting from the issuance of warrants. The inconsistent Accounting treatment may result in inconsistent display and reporting of similar financial transactions within the University's financial statements. Standardized Accounting treatment must be accorded similar financial transactions to ensure escheat property is recorded correctly in the financial statements and to ensure compliance with Statement #21.

This Accounting Directive does not alter in any way the guidance provided by the University Treasurer's Office (memorandum dated August 3, 1994) related to the Unclaimed Property Act. Rather, this Accounting directive has been promulgated solely to prescribe the accounting treatment by the campuses relating to escheat property.

Accounting Directive

In accordance with the provisions of Statement #21, escheat property shall be accounted for as follows:

(a) All warrants except for agency warrants and BRS warrants (i.e., payables and payroll) containing an issuance date of not less than 150 days prior to the date of determination shall be scheduled for cancellation and credited to the appropriate escheat property reserve Account using liability control code 222.

(b) At intervals determined by each campus, but no less frequently than once each fiscal year, each campus shall adjust the escheat property reserve Account by removing the liability for all warrants containing an issuance date of more than one year prior to the date of determination. The amount removed from the liability shall be credited to an appropriate revenue Account.

(c) - Payments made for reclaimed escheat property shall be charged first to the established liability reserve, if any. If the amounts held in the established liability reserve are insufficient to cover the reclaimed amounts, then the campus shall charge the revenue Account established in (b) for the reclaimed amount. In no circumstances will the liability in the reserve Account be allowed to accumulate into a negative (debit) balance.

(d) Periodically, but no less frequently than every other fiscal year, each campus shall review the amount of funds paid from the established liability reserve Account during the previous fiscal year and shall determine if the amount in the liability reserve Account is sufficient to cover a reasonable estimate for future claims of escheat property.

(e) All deposits received and recorded as deposits held in custody shall be periodically reviewed and the University shall make a reasonable effort to return deposits to the appropriate customers. If a campus determines the deposit is abandoned, it shall credit the deposit to revenue one year from the date it is determined to be abandoned. This shall provide sufficient time and reserve for the appropriate customer to reclaim deposits.

The provisions described in (a) through (d) above are consistent with the provisions in Colorado Revised Statutes 24-30-202 (9) which apply to the State Controller for unclaimed warrants issued by the State Treasurer.

Procedure for Deposits Held in Custody

A cash receipt is the source for recording deposits held in custody. Funds should be credited to Account 150400 in the appropriate FOPPS.

The department should maintain a record of each deposit and reconcile these to Account 150400. When certain conditions are met, funds are returned to the payer by processing a payment voucher[BN10] . In some cases, the funds become the property of the department and should then be recorded as revenue in a departmental FOPPS. For example, a key for which a deposit has been paid is lost instead of being returned.

The journal entry transaction for this situation is:

  • Debit: balance sheet Account 150400
  • Credit: appropriate revenue Account.
  • Auxiliary enterprise FOPPS (those with an expense purpose code of 2000) should use an auxiliary enterprise revenue Account that begins with 28xxxx
  • All other departments will use an Account within the range 325100-334999 miscellaneous income.

The normal status for deposits held in custody, Account 150400, is credit.

The deposits held in custody Accounts include:

150400 - Deposits Held in Custody
150401 - Income Tax Deposit
6. Other Liabilities and Debt
  • Accounts 150500 - 150501 Non-Current
  • Accounts 155000 - 155301 Current
  • Accounts 190000 - 194999 Non-Current

These Accounts are not for the general use of departments. Contact the Treasurer's office and your campus controller's office if the department is considering entering into a debt activity. Most debt is related to the acquisition of capital assets, and is recorded in the Plant Fund fund groups.

Accounts in this series are used to record the University's debt, royalties, and other non-current liabilities that cannot be appropriately Accounted for in another Account code. Examples include bonds payable, lease purchase payable, certificates of participation payable, and notes/mortgages payable. Furthermore, Accounts within this series can record either current or non-current liabilities. Using a current Account indicates that the debt will become due in a period of less than one year. Using a non-current Account indicates that the debt will become due in a period exceeding one year.

Account designations of note within the debt series are:

  • Account 150500-150599 Other Liabilities
  • Account 150700-150799 Other Postemployment Benefits
  • Account 190000-190099 Bonds Payable
  • Account 190100-190299 Lease Purchase Payable
  • Account 190300-190399 Notes/Mortgages Payable

The normal status for other liabilities and debt Accounts is credit.

The other liabilities and debt Accounts include:

150500 - Liabilities-Other-Non-current
150700 - Oth Postempl Ben PayNonCurrent
150501 - Royalties Pay NonCurrent
155000 - Bonds Payable-Current
155099 - Bonds Premium Current
155100 - COP Lease Purch Pay Current
155198 - COP Payable Current
155200 - Lease Purch Pay Oth-Current
155300 - Notes Mortages Pay-Current
155301 - Commercial Paper-Current
190000 - 190099 - Bonds Payable (see full chart of Accounts for detailed list)
190100 - Lease Purch Pay-COP-NonCurr
190103 - 2003 A COP
190104 - 2003 B COP
190198 - 1998 COP's Payable-NonCurr
190199 - COP Payable Curr- Offset
190200 - Lease Purch Pay-Oth - NonCurr
190201 - Lease Purch Pay Other Offset
190300 - Notes/Mortgages Pay-NonCurr
190301 - Commrcl Paper-Lng trm-NonCurr
190302 - Notes/Mortgags Pay Curr-Offset

Information about Debt

The Treasurer's office has a page within its website dedicated specifically to the subject of debt. Among the topics covered are University-related debt, financing University projects/equipment, lease-purchases, and bonds.

Procedures Pertaining To Debt

The Treasurer's Office must be consulted prior to the incurrence of any debt. Your campus controller's office must also be consulted whenever a department is considering incurring debt. This is to ensure that the University is not exceeding its debt capacity, that all approvals are properly obtained, and that all necessary information is gathered in order to properly record the debt. (Exception: Lease purchase payables incurred through the Procurement Service Center by purchase order or contract do not require consultation with your campus controller's office or the Treasurer's office since these follow the normal purchase order and payment processes.)

Specific procedures depend upon the type of debt being incurred, and the process for incurring the debt. Specific procedures for recording the debt will be determined by your campus controller's office for each debt issuance.

Debt related to capital construction activity is initially recorded in the construction FOPPS within Fund 71. Upon completion of the construction project, the debt and the related asset are transferred to FOPPS within the Investment In Plant Fund (IIP), Fund 74. Once the debt has been incurred and recorded, then debt payments must be made.

All debt has a payment schedule. Payment of debt related to Plant Fund fixed assets must be paid through the Retirement Of Indebtedness (ROI) Fund, Fund 73. This process requires a mandatory transfer of funds to the designated ROI FOPPS, and a payment voucher[BN11] made payable to the appropriate entity. The department working with the campus controller's office is responsible for transferring funds to the ROI Account as scheduled.

The Treasurer's office is responsible for making most major debt payments.

With respect to debt, at year-end your campus controller's office does the following:

  • Adjust the debt payable for total debt payments for the year
  • Confirm the outstanding debt balance
  • Determine the amount of debt to be paid over the next 12 months
  • Adjust the current and non-current portions of the debt payable.

See The Accounting Handbook Chapter 18 Fiscal Year End for additional information.

7. Due To: Accounts 195000 - 199899
  • The due to and due from Accounts must be used together.
  • All loans made between FOPPS, funds, or campuses must be approved by the controller.
  • Agency FOPPS (Fund 80) cannot use Accounts in the due to series (except for student agency FOPPS).

These Accounts record loans of cash to one FOPPS from another, hence the Due From/Due To Account description. These loans can be within the same fund group, between different fund groups, or across campuses.

Accounts 195000 - 195900 identify the fund to which the loan is due within the same campus, and Accounts 196000 - 196900 signify that the loan is due to another campus. The offset Accounts for the due to transaction are the due from Accounts. These Accounts are 095000-095900 for loans within the same campus, and 096000 - 0969009 for loans from one campus to another.

Procedures for Executing a Loan

When executing a loan, the borrower and lender must arrive at an agreement on the following points:

  • FOPPS involved
  • Amount of the loan
  • Reason for the loan
  • Repayment terms: length of the loan, frequency of payments, amount of each payment, etc.

A formal principal repayment schedule should be drawn up, and the interest rate should be reasonable. Signatures of both parties should be secured on the agreement. Once completed, the loan document must be submitted to the campus controller for approval.

The normal status for due to Accounts, 195000 - 199899, is credit.

The due to Accounts include:

195000 - DueTo-Unrest General Fund
195100 - DueTo-Unrest Aux/Self-Funded
195200 - DueTo-Restr Sponsored Programs
195300 - DueTo-Restr Gift Fund
195400 - DueTo-Loan Fund
195450 - Due to - Intrnl Loan Interest
195500 - DueTo-Endowment Fund
195600 - DueTo-Plant-Unexp Constr
195700 - DueTo-Plant-Unexp R&R
195800 - DueTo-Plant-Retire of Debt
195900 - DueTo-Plant-Invest in Plant
196000 - DueTo-OC-Unrest General Fund
196100 - DueTo-OC-Unrest Aux/Self-Fund
196200 - DueTo-OC-Sponsored Programs
196300 - DueTo-OC-Restr Gift Fund
196400 - DueTo-OC-Loan Fund
196500 - DueTo-OC-Endowment Fund
196600 - DueTo-OC-Unexp Construction
196700 - DueTo-OC-R&R
196800 - DueTo-OC-Retirement of Debt
196900 - DueTo-OC-Invest in Plant

Net Assets

Accounts 199900 - 199999

  • Net Assets Accounts are not to be used by departments.
  • Net Assets Accounts are not to be used on any input document under any circumstances.
  • Net Assets are also known as Fund Balance. Each has the same meaning.

Net Assets represent the difference between assets and liabilities as represented in the following equation: assets - liabilities = net assets. In other words, net assets are the amount of unexpended resources within a FOPPS. For example, if a department were to convert all of its assets to cash at book value, and then pay of all its liabilities and debt, the amount of cash left over would be the net assets.

All transactions recorded in revenue, expense, and transfer Accounts affect net assets. Credit transactions will increase net assets, and debit transactions will decrease net assets. Revenue (with the exception of refunds) and transfers-in are credit transactions. Therefore, these will increase net assets. Expense and transfers-out are debit transactions. Thus, these will decrease net assets. Offsetting entries in balance sheet Accounts (assets and liabilities) have no effect on the net assets.

The normal status for Accounts within the net assets series is credit.

The net assets Accounts include:

199900 - Fund Balance
199901 - Resv-Encumbrances
199902 - Resv-Pre-encumbrances
199903 - Resv-Encumb/Legacy HRMS (Inactive)***
199904 - Resv-Encumb/Cullinet Procurmnt (Inactive)***
199905 - Resv-Encumb/Telecomm
199906 - Resv-Encumb/Misc
199970 - Inv-Cap Asset Net of Rel Debt (Inactive)***
199980 - Fund Balance-Restricted (Inactive)***
199990 - Prior Year Restatement
199999 - Cash Rollup Transfer

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