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Financial Management Program

Understanding the Uniform Chart of Accounts

John G. Hulsey, CGFM

Learning ObjectivesAt the end of this session, you should be able to:• Define what a Uniform Chart of Accounts is and

why using a Uniform Chart of Accounts is important

• Recall some of the history behind the Georgia local government chart of accounts

• Understand how local governments use the chart of accounts

• Effectively record transactions using the Uniform Chart of Accounts

UNIFORM CHART OF ACCOUNTS

• What is a Uniform Chart of Accounts? – Foundation of accounting system– A listing of account titles and descriptions– Provides a uniform format for financial

accounting and reporting

– Improves accountability through comparability

– Enables better decision making

UNIFORM CHART OF ACCOUNTS

• How did Georgia’s Uniform Chart of Accounts come about?– Variations in local governments financial

reporting made valid and useful comparisons difficult

– General Assembly passed House Bill 491 (1997)

– Uniform Chart adopted in 1998

UNIFORM CHART OF ACCOUNTS

• Is the use of Georgia’s Uniform Chart of Accounts required?

UNIFORM CHART OF ACCOUNTS

• Is the use of Georgia’s Uniform Chart of Accounts required?– YES!– Beginning in fiscal years ending in 2001

• Accounting records• Audited financial statements, including CAFRs• Reports to state agencies

– Numbering system NOT required to be used in accounting records

Who’s in the Boat?

The chart applies to:• Cities• Counties• Component units

UNIFORM CHART OF ACCOUNTS

• Individual accounts– One piece of financial information

UNIFORM CHART OF ACCOUNTS

• Individual accounts– One piece of financial information– Building blocks for financial reporting

• Contain different dimensions– Account title, Cash in bank– Fund cash belongs to

UNIFORM CHART OF ACCOUNTS

• How does a local government use this chart of accounts?– Fund Codes– Department Codes– Function and Activity– Account Class or Object Classification– Account titles

UNIFORM CHART OF ACCOUNTS

Accounting Code StructureDescription

Fund (3 digits)Department (Optional) (2 digits)

Function and Activity (4 digits)Account Class (2 digits)

Account Classifications—Balance Sheet Accounts, Revenue Sources, and Expenditure Objects (4 digits)

UNIFORM CHART OF ACCOUNTS

Accounting Code StructureDescription

Fund (3 digits)Department (Optional) (2 digits)

Function and Activity (4 digits)Account Class (2 digits)

Account Classifications—Balance Sheet Accounts, Revenue Sources, and Expenditure Objects (4 digits)

FUND CODES

Governmental Proprietary Fiduciary

FundCode =3 digits

http://www.dca.ga.gov/development/Research/programs/documents/UCOA_3rdEdition_DCA_Approved_12-4-13.pdf

FUND CODES

http://www.dca.ga.gov/development/Research/programs/documents/UCOA_3rdEdition_DCA_Approved_12-4-13.pdf

• Law Libraries• E911• Hotel/Motel Taxes

Special Revenue

Funds

• SPLOST• HOST

Capital Project Funds

• Utilities (water, electric, gas, cable)• Solid Waste• Airport

Enterprise Funds

ACCOUNT CLASS

BALANCE SHEET ACCOUNTS

UNIVERSAL

N/A N/A

ASSET ACCOUNTS• 11 ASSETS• 11.1000 Current assets• 11.1100 Cash (including cash equivalents)

– 11.1110 Cash in bank– 11.1160 Petty cash– 11.1180 Change fund

• 11.1200 Cash with fiscal agent• 11.1300 Investments-current• 11.1400 Interest receivable-investments• 11.1500 Taxes receivable-current

– 11.1510 Allowance for uncollectible current taxes (credit)http://www.dca.ga.gov/development/Research/programs/documents/UCOA_3rdEdition_DCA_Approved_12-4-13.pdf

LIABILITY ACCOUNTS• 12 LIABILITIES• 12.1000 Current liabilities• 12.1100 Accounts payable• 12.1200 Salaries and wages payable• 12.1300 Payroll deductions payable• 12.1400 Employer's share of employee benefits-current• 12.1450 Termination Benefits Payable-Current• 12.1460 Other Post Employment benefits Obligation-Current• 12.1500 Claims and judgments payable• 12.1600 Contracts payable• 12.1700 Retainage payable• 12.1800 Intergovernmental payable

http://www.dca.ga.gov/development/Research/programs/documents/UCOA_3rdEdition_DCA_Approved_12-4-13.pdf

The government accounts for investments in the solid waste fund.

ACCOUNT CODING EXAMPLES—Balance Sheet

What is the fund dimension for this transaction?

The government accounts for investments in the solid waste fund.

ACCOUNT CODING EXAMPLES—Balance Sheet

What is the fund dimension for this transaction?

The government accounts for investments in the solid waste fund.

ACCOUNT CODING EXAMPLES—Balance Sheet

Select the account class and account number.

The government accounts for investments in the solid waste fund.

ACCOUNT CODING EXAMPLES—Balance Sheet

Select the account class and account number.

Balance Sheet—only 3 dimensions1. Fund2. Account Class3. Account Number

ACCOUNT CODING EXAMPLES—Balance Sheet

REVENUE ACCOUNTS

REVENUE ACCOUNTS

REVENUE CLASSIFICATIONS

Revenues carry account

classifications of 31 to 39. These account classes

identify at a glance the SOURCE of

the revenue.

REVENUE CLASSIFICATIONS

Each revenue account class has detail accounts numbered from 1000 to 9999.

Account Class

http://www.dca.ga.gov/development/Research/programs/documents/UCOA_3rdEdition_DCA_Approved_12-4-13.pdf

REVENUE CLASSIFICATIONS

REVENUE CLASSIFICATIONS

Contain financial

information

ACCOUNT CODING EXAMPLES—Revenue AccountsThe government records the insurance premium in the general fund.

Fund Number = ?

ACCOUNT CODING EXAMPLES—Revenue AccountsThe government records the insurance premium in the general fund.

Fund Number = ?Account Class = ?Account Number = ?

ACCOUNT CODING EXAMPLES—Revenue AccountsThe government records the insurance premium in the general fund.Fund Number = 100Account Class = 31Account Number = 6200

EXPENDITURE ACCOUNTS

• Will have most dimensions– Fund– Department (optional)– Function– Activity– Object Class– Detailed Account

EXPENDITURE ACCOUNTS

UNIVERSAL

1 designates general government. Last 3 digits designates activity such

as financial administration or human

resources

EXPENDITURE ACCOUNTS

EXPENDITURE ACCOUNTS

UNIVERSAL

Object classification shows the type of goods

or services.

EXPENDITURE ACCOUNTS

UNIVERSAL

ACCOUNT CODING EXAMPLES—Expenditures

The government pays its share of health insurance for human resource personnel.

– Administration of government is accounted for in general fund.

The government pays its share of health insurance for human resource personnel.

The government pays its share of health insurance for human resource personnel.

Function and Activityfor Human Resources= ?

The government pays its share of health insurance for human resource personnel.

Human Resources:Function = 1Activity = 540

The government pays its share of health insurance for human resource personnel.

Account Class = ?

The government pays its share of health insurance for human resource personnel.

Account Class = 51

The government pays its share of health insurance for human resource personnel.

Object = ?

The government pays its share of health insurance for human resource personnel.

Object = 2100

The government pays its share of health insurance for human resource personnel.

Organization of all financial transactions

Expenditure purpose

Who?

Broad object classification

Detailed account

Report of Local Government Finance (RLGF) Survey and the Chart

• RLGF is required by O.C.G.A. 36-81-8– DCA Expenditure Conversion

• http://www.dca.ga.gov/development/Research/programs/documents/3rdEditionUCOAExpendituresConversion_2014.pdf

– DCA Revenue Conversion • http://www.dca.state.ga.us/development/research/programs/downloads/

Chrt_Accts_revenues.pdf

• Fiscal Planning Guide is prepared from the data collected using the RLGF

RLGF Expenditure Conversion

RLGF Revenue Conversion

Frequently Asked Question Topics

• SPLOST – Are all transfers from the SPLOST fund

prohibited?• TSPLOST

– Fund 235 or Fund 335?http://gsfic.georgia.gov/sites/gsfic.georgia.gov/files/related_files/site_page/TIA%20-%20FAQ.pdf

Frequently Asked Question Topics

• TAVT– 31.1315 - Motor vehicle title ad valorem tax fee

(O.C.G.A. 48-5C-1) Effective March 1, 2013 title ad valorem tax fee revenue will be received when a vehicle is purchased and/or titled in Georgia

• Energy Excise Tax – 31.4500 Excise tax on energy –Optional local excise tax on energy used in manufacturing within the local government’s jurisdiction (O.C.G.A. 48-13-110 through 48-13-118)

Frequently Asked Question Topics

• Local Maintenance Improvement Grant (LMIG) – Operating - 33.4110 Direct—transfers and

payments received by a local government directly from the State of Georgia

– Capital - 33.4310 Direct—transfers and payments received by a local government directly from the State of Georgia

Frequently Asked Question Topics

• Classifying GIS– 1535 - Data processing/MIS -Expenditures

related to the maintenance of databases, computer systems, networks, and other activities related to the managing and processing of information and data

Frequently Asked Question Topics

• Delinquent Filings– 35.1900 - Fines that Elections Offices are

supposed to collect from candidates for delinquent filings

– Chart does not specifically address this revenue

Resources

• Georgia Department of Community Affairs• http://www.dca.ga.gov/development/research/programs/uca.asp• http://www.dca.ga.gov/development/research/programs/lgf.asp

• Georgia Department of Audits and Accounts• http://www.audits.ga.gov/NALGAD/resource.html

• Local Government Audit Office Review Checklist• Compliance Auditing in Georgia Counties and Municipalities

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