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RID

Rhode Island Department of Elementary and Secondary Education

255 Westminster Street

Providence, Rhode Island 02903

Uniform Chart of Accounts (UCOA) Project

Rhode Island

Department of Education

UCOA Accounting Manual

FY 2012 Version

+

Table of Contents

I. Introduction6

Introduction6

Background6

Governmental Accounting7

How to Use this Manual7

Updates to this Manual8

II. Overview of the Uniform Chart of Accounts Project9

Mandate9

What is a Chart of Accounts?9

Objectives of the UCOA10

Data Warehouse10

Development of the UCOA10

Development Rules11

III. Uniform Chart of Accounts13

Overview13

Objectives13

IV. Fund Accounting14

Overview14

Types of Funds14

V. General Accounting Principles17

Generally Accepted Accounting Principles17

Governmental Accounting Principles17

VI. Design and Structure of the Chart of Accounts19

Overview19

Numbering Methodology20

Key Design Considerations20

Design Features22

UCOA Account Use Rules23

VII. Chart of Accounts25

Overview25

Account Descriptions27

The ID Field Segment28

Overview28

How the ID Segment is Used28

Flexibility of the ID Segment28

List of Codes ID Field28

Code Definitions ID Field28

The Fund (Type) Segment29

Overview29

How the Fund Segment is Used29

Flexibility of the Fund Segment30

List of Codes - Funds30

Code Definitions - Funds30

The Subfund Segment35

Overview35

How the Subfund Segment is Used36

Flexibility of the Subfund Segment37

Account Level Use Requirements38

List of Codes - Subfunds38

Code Listing - Subfunds39

The Location Segment42

Overview42

How the Location Segment is Used42

Flexibility of the Location Segment45

Account Level Use Rules and Requirements45

List of Codes - Locations47

Code Definitions - Locations47

The Function Segment67

Overview67

How the Function Segment is Used67

Flexibility of the Function Segment67


List of Codes - Functions69

Code Definitions - Functions71

The Program Segment90

Overview90

How the Program Segment is Used90

Flexibility of the Program Segment90


List of Codes - Programs92

Code Definitions - Programs94

The Subject Segment113

Overview113

How the Subject Segment is Used113

Flexibility of the Subject Segment114


List of Codes - Subjects115

Code Definitions - Subjects118

The Object Segment154

Overview154

How the Object Segment is Used156

Flexibility of the Object Segment156


List of Codes - Objects158

Balance Sheet158

Code Definitions - Assets158

Code Definitions - Liabilities159

Code Definitions - Equity160

Revenue163

Revenue Recognition Policies163

Account Level Use Requirements163

Code Definitions - Revenue164

Expenditures193

Expenditure Recognition Policies193


Code Definitions - Expenditures195

The Job Classification Segment382

Overview382

How the Job Classification Segment is Used382

Flexibility of the Job Classification Segment383


List of Codes Job Classifications384

Code Definitions Job Classifications386

District Defined419

Overview419

VIII. UCOA Guidance for Selected Topics420

Overview420


Revenue Accounts Required for NCES Reporting421

Revenue Account Rules423

Expenditure Accounts Required for NCES Reporting426

Expenditure Accounts Special Rules427

General Rules427

Compensation Expenditures428

Employee Benefits431

Purchased Services and Supplies432

Property436

Debt Service and Other Costs439

Other Segments441

Subfunds441

Location443

Function445

Program446

Subject447

Job Classification448

Accounting Guidance from the Auditor General449

IX. Guidance For Charter Schools453

GAAP for Charter Schools453

Formats for Reporting Charter School Financial Data to RIDE453

Required Changes from FASB GAAP to GASB GAAP453

X. UCOA Download and Upload Requirements457

Overview457

Download Structure and Creation Rules457

UCOA Upload Process Overview459

XI. Allocations460

Overview460

Cost Distribution Methods460

UCOA Allocation Methods461

UCOA Allocation Rules462

Data Required for UCOA Allocation Tool462

UCOA Allocation Tool and the Data Warehouse463

XII. Common Report Requirements464

Overview464

XIII. Independent Audit Requirements465

Update Notice465

Overview465

XIV. Frequently Asked Questions (FAQs)475

Overview475

Alphabetical List of Topics with FAQ Numbers and Keywords475

FAQs and Responses489

Appendix A UCOA Workbook617

Overview of the UCOA Workbook617

Appendix B Segment Account Numbers621

Fund Type Number Codes621

Fund/Subfund Account Number Codes621

Location Types621

Location Departments621

District Location Number Codes621

Non-Public/Private Schools Location Type and School Codes623

Charter School Location Type and School Codes623

Education Service Agencies (Collaboratives) Location Type and School Codes623

RIDE Location Type and School Codes624

Public Schools Out of State624

Function Number Codes624

Program Number Codes624

Subject Number Codes624

Balance Sheet Object Number Codes625

Revenue Object Number Codes625

Expenditure Object Number Codes625

Job Classification Number Codes625

Appendix C Redundancy Analysis626

Appendix D - Accounting Processes629

Books of Accounts629

Chart of Accounts629

Double-Entry Accounting629

Journals630

General Ledger630

Subsidiary Ledgers630

Computerized Systems631

Appendix E - The Accounting Cycle632

Sequence of the Accounting Cycle632

Recording Phase632

Summarizing and Reporting Phase632

Closing Phase632

Budgetary Accounting633

Source Documents633

Analyzing Transactions633

Recording Transactions in Journals634

Posting to the Ledger634

Trial Balance and Adjustments635

Financial Statements635

Closing the General Ledger635

Reversing Entries635

Appendix F Recent Updates to the UCOA Accounting Manual637

Emerging Issue Statements Effective for July 1, 2010 for FY 2010637

New Requirements Effective July 1, 2010 for FY 2011637

New Requirements Effective July 1, 2011 for FY 2012638

Glossary of Terms640

Bookmarks and Index687

Bookmarks687

Index687

UCOA Accounting Manual 072012 v128.docxPage 2 of 179

Section: Table of Contents

I. Introduction

Introduction

We are pleased to present the Rhode Island UCOA Accounting Manual which assists School Districts and Charter Schools in their crucial tasks of managing tax dollars invested in education and accounting for those dollars in a way that supports informed decision making. Rhode Island statutes require School Districts and Charter Schools to use systems to record their financial affairs that comply with the definitions, instructions, and procedures published in this manual.

We want to thank those of you at the local level who use this manual and who are responsible for ensuring that we spend our limited education dollars wisely. In these difficult financial times, it is more important than ever that we demonstrate the fiscal accountability and wise stewardship of public funds necessary to achieve our educational goals.

Dennis E. HoyleDeborah A. Gist

Auditor GeneralCommissioner

Background

Rhode Island statutes require School Districts and Charter Schools (Districts) to follow the definitions, instructions, and procedures in the Rhode Island UCOA Accounting Manual (UCOA Accounting Manual). This edition of the UCOA Accounting Manual provides accounting policies and procedures, as well as guidance in implementing those policies and procedures, which include:

Overview of the UCOA Project

Overview of the Uniform Chart of Accounts

Fund Accounting and General Accounting Principles

Design and Structure of the Uniform Chart of Accounts

Definitions and information on using the Segments of the UCOA

Allocation Policies and Procedures

Glossary of basic Accounting terms

Valid Account Combinations

Technical Guidance for selected transactions and events

Frequently Asked Questions (FAQs)

Index

Governmental Accounting

Accounting personnel should be familiar with the principles and statements issued by the Governmental Accounting Standards Board (GASB), which is recognized nationally as the pr