Use of Approved Unit-Division-Organization Combination Codes

July 14, 2017

Dear Rutgers Colleague,

The new chart of accounts (COA) provides comprehensive financial management and reporting by Unit-Division-Organization (U-D-O) combinations to meet our business needs. The new financial system offers flexibility in using and creating U-D-O combinations for various financial transactions (e.g., purchase orders). Unfortunately, this flexibility, combined with sub-ledger accounting and interface issues, has resulted in the creation of nearly 2,300 U-D-O combinations in addition to the 1,700 combinations that were in the FY2017 Rutgers Board of Governors approved budget. This is problematic for budget-to-actual comparisons and it impairs the efficiency of financial reporting and responsibility.

In the coming days, weeks and months, the Office of the University Controller and the Budget Office will work to implement system rules, business processes, and compliance routines to reduce the number of U-D-O combinations in use, down to the appropriate number of U-D-O combinations. Some of these action plans are summarized below.

It is important to follow these actions plans to ensure your actual financial transactions align with your budget, to ensure transactions are processed efficiently through the financial systems to appropriately assigned approvers, to preclude unnecessary re-work and confusion, and to ensure the propriety and timeliness of financial reporting, management, and responsibility.

User Responsibilities

All users and approvers must ensure that transactions use only valid U-D-O combinations that are currently active. This list is posted on the Controller’s Office website (Chart of Accounts Redesign tab). Currently this list includes all U-D-O combinations that have been budgeted in FY17 or FY18, as well as those that had activity in FY17. The Budget Office will work with you to refine this list to remove any erroneous U-D-O combinations.

As the need arises for new U-D-O combinations, please complete the new U-D-O request form that is posted in the forms repository on the University Controller’s website. Forward the completed form to the Budget Office via the COA Governance Council at coa@finance.rutgers.edu.

Please review the list of U-D-O combinations on the Budget Office website for your unit and divisions. All combinations, erroneous or not, that are under your unit are your fiscal responsibility and you must take action to ensure the accuracy of posted transactions. As erroneous combinations are identified, we can begin to clean up payroll (PeopleSoft) and non-payroll transactions being charged to these U-D-Os, with the eventual elimination of those combinations from the active/approved list.

System, Business Process, and Compliance

The financial management system will be reconfigured to limit the use of U-D-O combinations to those that currently are in use (i.e., the approximately 4,000 used in FY2017 as well as any budgeted to in FY18). If a U-D-O is not already in the system, then you will not be able to post budgets, actuals or encumbrances against it until approved by the Budget Office and configured in the financial management system.

As we complete work to identify and refine the approved list of U-D-O combinations, the financial management system will be further configured to use only this refined list of U-D-O combinations.

Regards,

 

Kathy Dettloff, Vice President of Financial Planning and Budgeting

Pete Larson, Associate Vice President and University Controller