Accounting

Unknown variances typically are discovered while reconciling asset (other than accounts receivable) or liability object codes. Typically variances are errors that may have accumulated over several years or the object code has not been reconciled. Making corrections may have material impacts to the university's financial statements and could be an indication that the process needs to be revised. Please consult with Accounting for guidance in establishing a new procedures.

How Restricted Gifts Are Recorded in the Accounting System

Temporarily restricted gifts have a sub-fund of RGGIFT with the one following sub-fund programs:

A write-off is an elimination of an uncollectible accounts receivable recorded on the general ledger. An accounts receivable balance represents an amount due to Cornell University. If the individual is unable to fulfill the obligation, the outstanding balance must be written off after collection attempts have occurred.

Interdepartmental activity can be defined as the billing of goods and services provided by one university department to another internal department, reflecting internal revenue to the provider and internal expense to the customer. When documenting these transactions, only use object codes with a sub-type “ID” for interdepartmental activity.

Fund groups categorize the characteristics and limitations placed on the resources recorded in accounts. They indicate the general category of funds, and are used to classify sub-fund groups into one of these categories:

• External Organization funds
• General funds
• Contracts and grants
• Government appropriations
• Invested funds
• Loan funds
• Plant funds
• Reserves
• Restricted gifts

Travel costs are routinely incurred by staff members, faculty, and students on behalf of the university. Travel advances are funds occasionally issued to those eligible to receive them – in order to cover travel costs. Prepaid travel represents money already spent (e.g., flights, hotel expenses, etc.) in advance of expected travel. For accounting purposes, these funds are recorded as assets on the university’s balance sheet until they are depleted.