Ledger Definitions

General Ledger Accounts (G/Ls)

The University’s general ledger accounts start with a 0 (zero).

The accounts taken as a whole represent the University’s balance sheet, which represents the University’s financial position. G/L accounts are grouped by type (i.e..: inventory accounts, receivables, etc). G/L accounts  are used to record assets, liabilities, fund balances, fund additions, fund deductions, and summaries of accounting entries from related  subsidiary ledger accounts. Transactions are recorded in the G/L accounts in accounting controls (the last four digits of the ten digit G/L account number).

Subsidiary Ledger Accounts (S/Ls)

The University’s subsidiary ledger accounts start with a 1 through 9.

S/L accounts are used to record the University’s revenues and expenses.  Each subsidiary ledger number refers to a specific type of accounts (i.e..: ledger ones are income accounts, ledger twos are expense accounts, etc.) Transactions in subsidiary accounts are recorded in subcodes (the last four digits of a ten digit S/L account number)

Types of Subsidiary Ledgers with Examples for Usage

Ledger 1 – Budgeted Revenue – Income Only
Examples: tuition, endowment income, gifts, overhead recovery, SMH income, state appropriations, and MAG revenue

Ledger 2 – Budgeted Appropriations and Expenditures – Expenses Only
Examples: general department expenses, libraries, central administration, and O&M expenses

Ledger 3 – Self Supporting Activities – Revenue and Expenses Recorded
Examples: residence halls, food services, parking services

Ledger 4 – Restricted Endowment – Revenue Appropriations – Expenditures Only

Ledger 5 – Sponsored Research and Other Sponsored Projects Appropriation and Expenditures – Expenses Only
Examples: Funds received from an external source where the purpose is restricted by the donor and is subject to specific performance, accounting, or reporting requirements.

Ledger 6 – Other Restricted Funds Appropriation & Expenditures – Expenses Only
Examples: Funds received from an external source where the purpose is restricted by the donor. They are different from ledger five funds as they are NOT subject to specific performance, accounting, or reporting requirements.

Ledger 7 – Funds for Renewal and Replacement Appropriations – Expenditures Only
Examples: Accounts set up to capture the credits for the depreciation of equipment. Replacement equipment is then purchased from these accounts.

Ledger 8 – NOT USED

Ledger 9 – Agency Funds – Revenues and Expenses Recorded
Examples: Moneys belonging to others for which the University acts as a receiving or disbursing agent, with no further responsibility or accountability to the owner. This includes funds for student or faculty organizations and academic or professional societies.

 

Page updated 4/23/2009