General Questions

1. What is the Chart of Accounts?

2. Why is the Chart of Accounts being redesigned?

3. What is the proposed of the Chart of Accounts Structure?

4. Will the university continue to use Fund Sources with the new Chart of Accounts redesign?

5. Can Dept Activity 1 and Dept Activity 2 values be used?

6. How can a department get involved with the Chart of Accounts Redesign?

7. Will departments need to continue to maintain their current shadow systems to meet reporting requirements?


General Questions

1. What is the Chart of Accounts?

The Chart of Accounts determines how your accounting information is collected, categorized and stored for reporting purposes.

For example, the current RIAS chart of accounts includes Fund Source, Organization, and Natural Account as segments and the Banner chart of accounts includes the fund, account, organization and program.

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2. Why is the Chart of Accounts being redesigned?

The transformation of Rutgers, driven by the integration of UMDNJ, requires a book of record that will facilitate more streamlined financial reporting across the institution while providing flexibility at the local level. The Chart of Accounts is being redesigned with the initial purpose of mapping both legacy Rutgers and legacy UMDNJ financial data for University-wide consolidated results and offering a means for standard reporting. This new Chart of Accounts is also being redesigned with the added intention of being utilized in the new Enterprise Resource Planning (ERP) system, once it is selected.

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3. What is the proposed of the Chart of Accounts Structure?

The proposed structure is a multi-dimensional Chart of Accounts made up of multiple segments to capture different aspects of a transaction. The combination of the segments provides a more robust record of the financial activity.It consists of the following:

  • Unit/Responsibility Center (3 digits) - School, Institution, Center and/or a Central Unit which is required to produce a balanced Balance Sheet. At the highest level of reporting, the parent values will be New Brunswick, Newark, Camden, RBHS and Central.
  • Division (4 digits) - Used to group Organizations into alternate hierarchies.
  • Organization/Department (4 digits) - A business area with dedicated people and space.
  • Location (4 digits) - Identifies the area where the revenue and/or costs were incurred including onsite, off-site, online and foreign locations. It is the area for which service is provided , which could or could not be the physical geographic location of the people providing the service.
  • Fund Type (3 digits) - Identifies the funding source used to acquire goods and services (Unrestricted, Restricted, Endowment, Plant, Loan, Auxiliary).
  • Account (5 digits) - Identifies the nature of the transaction such as expense or revenue (Natural Account).
  • Business Line (4 digits) - Identifies the specific line of business (or mission) being offered. At the highest level of reporting, the parent values will be the 4 missions of the university – Instruction, Research, HealthCare and Public Service as well as an Other category.
  • Activity (4 digits) - Identifies total activity of high-level, interdisciplinary and strategic initiatives that span across multiple responsibility centers/units.
  • Intra- Unit (3 digits) - System generated (no user input required) transaction to balance journals for financial activity between a Unit and/or Fund Type.
  • Future (5 digits) - Placeholder if we need to add a segment in the future.

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4. Will the university continue to use Fund Sources with the new Chart of Accounts redesign?

No. Fund Sources will be eliminated and replaced by account code combination of the segments in the proposed Chart of Accounts structure.

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5. Can Dept Activity 1 and Dept Activity 2 values be used?

Where possible, the activities captured by Dept Activity 1 and Dept Activity 2 can be new values within a segment of the new Chart of Accounts. For example, values in one of the new segments such as Business Line or Location may take the place of Dept Activity 1 or 2 values. If the Dept Activity 1 and 2 are project-specific or task-oriented, then those more granular-level detail can be accommodated within the Projects Module. The university plans to implement the Projects Module at the same time it implements a new General Ledger.

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6. How can a department get involved with the Chart of Accounts (COA) Redesign?

We need your assistance to create a new COA that would address your local reporting needs as well as the requirements for high-level external and internal reporting. Our next steps in the process are to finalize the segments of the Account Code Combination and incorporate any additional segment values you may find useful.

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7. Will departments need to continue to maintain their current shadow systems to meet reporting requirements?

In most cases we are hopeful that the implementation of a Projects module and the new chart of accounts is flexible enough to capture activities you need to report on and eliminate the duplication and reconciliation efforts of shadow systems. You are encouraged to explore the new chart values in order to ensure they meet your needs.

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