B-1. The Accounting System
The Indiana University accounting system is designed to ensure fiscal integrity and responsibility within the University, and to properly classify and record income and expenditures for financial report preparation. The system used is the Kuali Financial System (KFS). IU Southeast Accounting Services may be contacted for additional information and training on the use of the KFS.
Account Management, Oversight, and Responsibility (FIN-ACC-1)
In order to enhance operational efficiency and managerial decision-making, the IU Southeast budget is organized into financial accounts and structured according to level of responsibility. Within the university chart of accounts, each account will have a fiscal officer, an account manager, and an account supervisor. Executive managers have ultimate fiscal responsibility. Roles and responsibilities of these individuals are as follows:
- Executive manager: responsibility role
- Account supervisor: leadership role
- Account manager: operational role
- Fiscal officer: oversight role
All four roles discussed in this policy (Executive Management, Account Supervisor, Account Manager, and Fiscal Officer) are listed in order of hierarchical responsibility with executive management having the highest responsibility in regard to fiscal integrity. It is understood that most of these positions will have multiple accounts, in multiple fund groups, under their scope of responsibility.
Executive management positions inherently come with the responsibility for the fiscal activity which occurs in all of their units. Executive managers will not necessarily be assigned an official chart of accounts role in an account, but this does not mean that executive management does not have ultimate responsibility for the fiscal integrity of all accounts assigned to their organizations. Depending on the organization, these positions could include chairs, deans, vice chancellors, vice presidents, chancellors, and the president.
The account supervisor is the unit leader responsible for the fiscal integrity of the organization. this role will provide leadership, oversight, and management philosophy to ensure that all funds are spent and managed according to the goals, objectives, and mission of the organization and in accordance with university policies. The account supervisor will also ensure that the fiscal officer has the education and training required to perform their assigned functions.
The account manager has the responsibility for ensuring that funds are spent and managed according to the goals, objectives, and mission of the organization, to ensure that the funds are being spent according to a budgeted plan, and that the allocation of expenditures is appropriate to the function identified for the account.
The duties and responsibilities of the fiscal officer include providing daily oversight on how the funds are spent and managed. This oversight includes ensuring funds are budgeted, where appropriate, that they are spent according to fiscal policy, that funds are spent in alignment with the account purpose, that processes and controls are in place, that assets are safeguarded, that transactions are recorded and reported properly, that the account is reconciled on a monthly basis, and that either the expenditures are in conformity with the budget, or appropriate budget changes have been made to reflect a change in the original budget. Signature authority on all financial transactions rests with the fiscal officer, and the fiscal officer is the only person who can delegate signature authority on an account. Because of signature authority, fiscal officers are required to utilize IU's Kuali Financial System (KFS).
Fiscal officers typically reside at the Responsibility Center (RC), auxiliary unit, or support unit. Large, complex Responsibility Centers may have multiple fiscal officers in order to accommodate the size and scale of the RC. In such cases, there will be a primary RC fiscal officer that provides oversight to the other RC fiscal officers. Campus fiscal administration must approve the creation of all fiscal officers below the RC level.
Account Delegate and Account Delegation Authorization
An account manager may delegate account approval authority. A delegate of signature authority is a person authorized to approve financial transactions in the KFS action list or the Chrome River eWallet, in place of the fiscal officer and account manager. Timely monitoring of both the KFS action list and the Chrome River eWallet is the responsibility of all account delegates. To request delegation, the account manager should send an e-mail to the fiscal officer requesting approval for a delegate as well as delegation limits.
In accordance with IU policy FINA-ACC-10, a faculty or staff person designated as a fiscal officer, account supervisor, or account manager must be an exempt employee (PAE) or non-exempt Professional Staff employee classified as PAS. The title and responsibility of a delegate of signature authority can be either exempt or a non-exempt employee.
Financial reports are available monthly in the Indiana University Information Environment (IUIE) to provide account managers with information on the transactions that have taken place during that period. The main report is the Monthly Operating Statement, which details the current budget, actual cash expenditures, encumbrances, and budget balance. Monthly, a link to the operating statement is sent via e-mail to the account manager. It should be reviewed to be certain that the charges reflected are correct and are in agreement with the budget projections.
The account manager is responsible for identifying sources of funds to cover any overdraft. Accounting Services monitors all accounts for possible overdrafts and will notify the account manager of potential problems. Questions about the interpretation of the account operating statement or charges that have been made to the operating statement may be addressed to Accounting Services.