MOTT COMMUNITY COLLEGE
SUPERVISOR/MANAGER TRAINING
ACCOUNT NUMBER STRUCTURE – OVERVIEW
April 7, 2003

The Manual for Uniform Financial Reporting of Michigan Public Community Colleges was updated in 2002, and the Michigan Community Colleges Activities Classification Structure was adopted in April, 1981. These two documents provided community colleges with a basic guide for uniform classification and recording of accounting transactions. These guides provide structure for the account numbers which are used by community colleges throughout the State of Michigan to record and report financial transactions.

The account numbers, as we at MCC use them, are comprised of twelve individual digits. These individual digits are clustered to form sub-groups or fields which are used to provide definition and uniqueness to each account number. That account number follows the following structure:

(a) The first two digits of the account number denote the Fund to which the account belongs. It segregates and groups accounts created for the purpose of carrying on specific activities in accordance with special regulations, restrictions, or limitations. For Internal management purposes we currently identify the following funds:

(b) The next group of 5 digits forms the Cost Center (also known as Area). This field is used internally to identify the unique program or department under whose authority the activity is performed. We also use the first three digits of this field to identify Cost Center Groups, which are used for payroll funding sources, rollup reports, and for approval/authorization levels. For example:

Cost Center 42102 identifies specifically the English discipline within the Humanities
Division, which is identified by the first three digits (421).

A new cost center is created when there is a need to identify another unique program, department, or project. For historical purposes we try not to change cost center numbers once a cost center is setup, even if its reporting line has been changed. Cost centers are generally related to State ACS codes. The importance in charging things to the correct cost center is for uniform reporting to the State and comparable historical data. Budgeting is done in most instances at the cost center level. (Attached is a current list of general fund cost centers and the corresponding cost center manger.)

(c) The last five digits form a field referred to as Activity. This field defines the revenue, expenditure, asset, liability or fund balance classification. The first digit of this group indicates the class or type of account, whether it is a revenue, expenditure, asset, liability, or fund balance account. The combination of the first to digits of this field give us the activity grouping within the classification. The remaining three digits further define the type.

1XXXX = Revenues (there are further definitions within the second and third digits)

2XXXX = Expenditures

20XXX = Costs of Good Sold
21XXX = Salaries and Wages (Payroll type activities)
22XXX = Contracted Services (Non-Payroll (outside) services performed)
23XXX = Materials & Supplies
24XXX = Rents, Utilities and Insurances
25XXX = Operations/Communications (ie: travel, memberships, phone, postage)
26XXX = Fringe Benefits
27XXX = Transfers between funds
28XXX = Capital Outlay
29XXX = Bond Retirements

We believe that are sufficient activity numbers in Datatel to accurately classify activities. The activity code 25690 (Miscellaneous Expenditures) should be used only after eliminating all other activity numbers and only for minimal amounts. Activity 25210 (Activity & General Expenditures) should not be used in the general fund. Activity codes 19999 & 29999 activity codes are for budget pools only and are not for charging expenditures to. A list of all activity numbers will be available on the Finance/Accounting Lotus Notes database. If you need an activity code that is not currently set up in your cost center, or you have a question regarding which activity to use, please call Jim Smith in the accounting office. It is important for consistency of historical data and for State ACS reporting to classify expenditures properly. Do not charge an account just because that’s the one where you have budget money.

3XXXX = Assets

4XXXX = Liabilities

5XXXX = Fund Balances

In addition to the account number itself, there is a GL Tag field attached to each account number. This field is not visible on reports and is maintained by the Accounting office. This field is used to identify the Michigan Community Colleges Account Classification Structure (ACS) coding. This ACS coding classifies expenditures in the following categories:

Instruction
Research
Public Services
Instructional Support
Student Services
Institutional Administration
Physical Plant Operations

Within each of the categories, are further breakdowns necessary for reporting activities to the State.

The ACS code is important not just for reporting, but our state aid funding is based on a formula that uses data as reported to the State in ACS reports. Our data needs to be consistently reported by us, and also consistent with how other community colleges report their data. We have decided to use this GL Tag field rather than have the ACS code built into the account number so that the accounting office can maintain this code easier and so that managers do not have to worry about the ACS code. However, again, it is important that expenditures be classified properly.