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CONTROLLER'S OFFICE

Understanding Accounting Codes

1. Purpose
   To explain the Clark University accounting system for departmental expenses and earnings to all employees of the University.
2. Overview
   Clark University's accounting system operates electronically and generates a General Ledger and related subsidiary reports of monthly expenses and budget status. Each accounting entity is made up of four segments, or codes that define exactly to which department account funds are directed to, and from which account funds are being withdrawn. Following is a guide to the four types of accounting codes used in Banner.
3. Fund
   The Fund code is a code of up to six characters indicating the type of fund to which the account belongs. The first two digits of the code indicate the fund source of the account.
   • 10XXXX - Operating expenses. 10OPER, 10COPA, 10RENT, and 10HOUS all fall into this category.
   • 15XXXX - Designated funds that are segregated from operational funds for reasons determined by management. Short term project, special events, and student organizations fall into this category.
   • 20XXXX - Restricted spending accounts primarily funded by earnings from an endowment.
   • 21XXXX - Funds restricted by donor for particular purposes.This category is also funded by earnings.
   • 2AXXXX - 2ZXXXX, 23XXXX - 24XXXX - Federal, State, local, and private grants.
   • 40XXXX - Student loan funds.
   • 60XXXX - True endowments and funds functioning as endowments.
   • 71XXXX - Annuity funds.
   • 72XXXX - Unit trust funds.
   • 80XXXX - Plant funds for the physical facilities of the University.
4. Organization
   The Organization code (ORGN) primarily correlates to a departmental budget, and general indicates a department or a cost center or projects within a department. Some organizational codes are restricted to University revenues.
5. Program
   The Program code (PROG)
6. Account
   The Accounting code (ACCT) correlates to the exact expenditure of the account.
   • 1XXX - Asset, referring to the balance sheet account.
   • 2XXX - Liability, also referring to the balance sheet account.
   • 3XXX - Control account to the General Ledger.
   • 4XXX - Net asset and/or a fund balance.
   • 5XXX - Revenues.
   • 6XXX - Compensation, including payroll and fringe benefits.
   • 7XXX - General expenditure account.
7. Index numbers
   Finally, apart from the four accounting codes, index numbers (INDEX) may also used in defining an accounting entity. The index number acts as a short cut for commonly used account strings. In some instances, entering only an index number in Banner will default in the appropriate FUND, ORGN, and ACCT codes relevant to that particular charge.
8. Activity and Location
   Federal Reporting on the Form 990 requires Clark University to track and report activity occuring outside the United States by both location and activity. This requires that purchases, reimbursements, and payments be coded with both an ACTIVITY and LOCATION code.