SmartFusion Modules > Fund Ledger > Parameters > Funds
SmartFusion Modules > Budget Prep > Parameters > Funds

Recent Changes:
6.188 - Updated "Track in BP" selection to also act as a filter throughout Budget Prep.  If selected, the fund account will be displayed or included.  

6.163 - Made a change to disable 'Close revenue and expenditures to multiple equity accounts based on modifier' if the fund is flagged as a Capital Project Fund. Also added a 'Budget Updated?' checkbox which will be visible for capital project funds.  

6.157 - Added a new checkbox Capital Project Fund
6.100 - Added an accrual account for cash receipts

Introduction

A fund must be added before ledger accounts can be added to the fund ledger system. Funds can be used as a way to identify a part of the account structure. When funds are identified in the parameter file, the descriptions will print on various ledger reports when the reports are run by fund.

Explanation

Since account numbers cannot be added before a fund has been set up, and the account numbers required for fund balance, accounts payable, etc. cannot be entered until the accounts have been added to ledger, setting up the complete fund information is a multi-step process.

1. Enter the fund number and description and save the partially completed fund record.
2. Go to the ‘Accounts’ menu and add the ledger accounts needed to complete the information in the fund parameter file.
3. Return to the fund parameter screen and complete the required information.

The beginning and ending dates of the fund fiscal year will default to the fiscal year dates entered in the Harris system file under the Organization Data tab. These dates need to be changed only if the fund has different fiscal year ending dates.

Parameter Details

Fund
Description
Fund start date
Fund end date

Check budget remaining when entering POs, AP, etc - Normally, this box would be checked as true so that the remaining budget will be checked when purchase orders, A/P vouchers, or requisitions are entered. If this box is not checked, the system allows the budget to be exceeded, even though the user’s security level is such that exceeding the budget would not normally be allowed. For those funds where budgets are not normally used (such as school activity funds) this box would not be checked.

Close revenue and expenditures to multiple equity accounts based on modifier - Normally, a fund closes to one fund balance account as specified in the fund parameter file. In certain situations such as school activity funds, however, the revenue and expenditure accounts should be closed to equity accounts for each club or sub-fund. In SmartFusion, this is accomplished by using the modifier portion of the account number to identify the clubs or sub-funds. During the close, the system will check this flag and if it is checked as true, the revenue and expenditure accounts will be closed to a separate equity account for each club rather than to a single fund balance account. This will be disabled if a fund is marked as a capital project fund.

Track in BP - Display or include fund throughout the Budget Prep module

Capital Project Fund - This will be disabled if the fund is set to 'Close revenue and expenditures to multiple equity accounts based on modifier'.

Budget Updated? - Will be visible only for capital project funds.This is to allow the users to be able to add the budget for a new capital project fund.

Use revenue or income on reports - The title entered will appear on financial statements related to the fund

Use expenditure or expense on reports - The title entered will appear on financial statements related to the fund

Other fringe fund - In some instances, salaries may be expensed to a fund but the fringe and employer contributions associated with those salaries are expensed to a different fund. This field determines the ‘other fund’. Leave blank in most cases.

Special revenue column sort for special reporting

Balance sheet title - If blank, system will print CURRENT FUND BALANCE

Fund balance account number - Enter the account number for the fund balance or retained earnings account. The account number entered here is the account that will be updated at the end of the fiscal year when the option is run to close the year. Funds such as Fixed Asset Account group and other special funds that do not have revenue and expenditure accounts do not need a fund balance account.

Accounts Payable account number - If you choose to have the accounts payable balance redistributed to all applicable funds, then you must set up an accounts payable account for each fund. Enter that account number here in the Fund parameter so the system will know which accounts to update when the redistribution is made. The other choice is to have a single accounts payable account (usually in the general fund) and let any liability for funds other than the general fund be automatically reflected in the due to/from accounts.

Automatically balance this fund - If a primary fund (usually the general fund) is used to receive and disburse money on behalf of other funds, then it is desirable to check this box as true and allow the system to automatically create entries in the ‘due to/from’ accounts. If this is not done automatically, you will have to make journal entries to record any transactions that have crossed funds. For the primary fund, this box should be left unchecked (false) but checked as true in all other funds.

Balance account for this fund - The account number needed here is the “Due to/from” account that the system will debit or credit for items that are due to/from the primary fund.

Balance account for other fund - The account number needed here is the “Due to/from” account for the primary fund.

Payroll accrual account - Teachers get paid throughout the summer, but the way they are contracted, the districts need the money to come from the Fiscal Year where their salary was budgeted. Their fiscal year runs from July 1 to June 30, so it splits their summer. Running an "accrual payroll" covers this. The district updates the PR to their ledger (creating transactions to move the money just like the employees have been paid), but they don't print the checks yet. They print the checks in July and then August and mail them to the employees (or direct deposit).

Fica accrual account - When Payroll creates posting records, this account is used for the fund instead of the standard FICA posting account in the system file. This gives you a way to post FICA to another account for certain funds instead of the one account in the system file. There is also an option in Payroll > Parameters > Category which can override this selection.

AP accrual account - When you set up an Accounts Payable accrual account, you are accounting for money in one fiscal year, but issuing the voucher in another fiscal year.

Cash receipts accrual account - This account is used when posting accrual cash receipts to ledger if the revenue account for the cash receipt is associated with this fund. This would allow the user to have multiple accrual accounts.

References