Introduction:
The university's
budget is defined and its revenues recognized and its expenses
incurred against a specific accounting structure.
This structure
consists of four (4) main components:
Funds
(Six digit variable):
Funds are differentiated by:
(a)
The
budget source
(b)
Types
of transactions that are processed through each fund.
Each fund is balanced independently. The funds are
consolidated to represent AUS's
financial position. The main funds utilized are:
Current Unrestricted Fund
All
transactions related to regular operations of the University
are recorded in the current unrestricted fund. A budget
is defined for every expense and revenue category within
the current fund prior to the commencement of every academic
year. This budget is approved by the Board of Trustees.
Expenses incurred and revenues generated by the University
are credited in favor of and charged against the "Cost Center" that generate or incur the revenue or expense.
Current Restricted Fund
Special
budgets that are approved for specific projects other than
the regular annual budget are recorded in this fund. A fund
is created for each project independently.
Endowment Fund:
Funds
granted by external parties to the university with a stipulation
that the principal is unexpendable.
Only the revenue generated by the funds are
expendable by the university. A fund is created per endowment.
Agency Fund
Funds
collected by the university on behalf of other parties are
recorded in this fund. The university acts as an agent in
receiving and disbursing the funds to the appropriate parties.
The
main operation of this fund is the collection of the student
activity fees revenue on behalf of the student council and
disbursing the funds in accordance to the student council
and clubs policies and procedures.
Investment in Plant Fund
Assets
purchased are capitalized in his fund.
Bank Fund
The
Debit side of the cash inflow transactions to Bank accounts
and the credit side of the cash outflow transactions to
the Bank account are recorded in this fund.
Cost Centers (Organizations) ( 4 Digit variable)
The
university's budget is created per cost center. The cost
centers represent the departments within the academic and
Non-Academic divisions of the university. Revenues are also
recognized by the organization that generated the revenue.
Lower level enterable cost centers roll up to higher level
cost centers in accordance to the divisions they report
to.
Account (5 Digit variable)
Accounts
represent the nature of the financial transaction. Includes
Asset, Liability, income and expense categories.
Program (2 Digit variable)
