Segment Design & Definitions

The new UC Davis Chart of Accounts (CoA) will replace the current Full Accounting Unit (FAU) on July 1, 2023

The New UC Davis Chart of Accounts

The final segment design and definitions for the new Chart of Accounts were approved by Aggie Enterprise Governance on July 1, 2021, moving the CoA project from the prototype Design Phase to Implementation.

Segment definitions, use criteria and examples are outlined below. 

  • Entity

  • Segment Length: 4 characters

    Segment Value Schema: Numeric

    Segment Definition:
    The Entity segment identifies a major organizational unit within the UC system. The Entity is responsible for all of the financial activities and results of all Financial Departments, Programs and Activities within the Entity’s hierarchy. 

    Expanded Definition and Criteria:

    The Entity segment identifies the major UC system organizational units. These units generally require their own complete, separately audited financial statements to comply with external, regulatory reporting requirements (e.g., external audits, tax reporting), which cannot achieve compliance by using the audited financial statements issued by the Office of the President. Entity, however, will also provide high level management and operational reports.

    The balancing segment designation in Oracle Financials Cloud allows for net position (e.g., fund balance) to be calculated at the Entity level.

    Entities at all levels have unique reporting and/or external auditing needs that can only be met with an Entity level designation (e.g., UC Davis Health).

    Entity values are established by both UCOP and UC Davis.

    Examples:
           - UC Davis Campus (excluding Schools of Health)
           - Schools of Health
           - UCD Medical Center
           - UCD - ANR
           - UC Davis Foundation
           - Cal Aggie Alumni Association

    FAU Value Comparison:
    The Entity segment most closely aligns with the KFS Chart (e.g. 3, H, L, P).

  • Fund

  • Segment Length: 5 characters

    Segment Value Schema: Alpha-numeric

    Segment Definition:
    The Fund segment identifies funding resources. These resources, or “pots of money” are classified based on designations and restriction types. This classification also supports external reporting of net position.

    Expanded Definition and Criteria:
    Funds provide a method of tracking funding resources whose use is limited by donors, granting agencies, regulations and other external individuals or entities, or by governing boards. A Fund is maintained for each specific funding type (e.g., Unrestricted, Restricted-Expendable, Capital) which supports the compilation of GASB audited financial statements. 

    The balancing segment designation in Oracle Financials Cloud allows for net position (e.g., fund balance) to be calculated at the Fund level.

    In most cases, Fund activity will be presented in the general ledger in summary and the Fund values will be shared amongst Financial Departments. For example, all Financial Departments will share one Restricted Expendable Federal Contracts fund. The detailed transactional information related to each federally sponsored project within this fund will be tracked using the PPM module.

    Fund values are established by both UCOP and UC Davis.

    Examples:
           - Unrestricted
                   - Tuition
                   - Unrestricted Gifts
                   - Auxiliary Enterprises
                   - Sales and Services
           - Restricted Expendable
                   - Federal Contracts and Grants
                   - Restricted Gifts
                   - Special State Appropriations
           - Restricted Unexpendable
                   - Endowment Principal
           - Net Investment in Capital Assets
           - Agency Funds

    FAU Value Comparison:
    The Fund segment most closely aligns with the fund attribute of the KFS Account.

  • Financial Department

  • Segment Length: 7 characters

    Segment Value Schema: Alpha-numeric

    Segment Definition:
    The Financial Department segment represents an academic or operating unit identified with an ongoing business objective, aligned with the UC Davis organization structure.

    Expanded Definition and Criteria:
    Financial Department is often known as the “cost center” or “department”. This field records, tracks and retains the Financial Department’s financial transactions. There are several levels of Financial Departments within the CoA hierarchy. The mid-level hierarchy aligns with the UCPath HR Departments. 

    Financial Departments have:
    -   An ongoing business objective and operational function with no planned end date
        (enabling historical trend analysis + long-range planning)

    -   Identifiable, permanently funded employees and generally an allocation of physical space


    Financial Department values are established by UC Davis.

    Examples:
           - CA&ES
                  - CA&ES Cluster 5
                         - Ag & Resource Economics
                         - Environmental Science & Policy
                         - Human Ecology
                                - Center for Child & Family Studies 
                  - CA&ES Deans Office
                         - Ag & Environmental Sciences Dean's Office
                                - Contained Research Facility
                                - Olive Center

    FAU Value Comparison:

    Due to significant variations in departments’ financial structure in KFS, it is not possible to align the Financial Department segment with  specific KFS values.

  • (Natural) Account

  • Segment Length: 6 characters

    Segment Value Schema: Numeric
           - Value schema includes logic for the first digit of the value:
                  - 1: Asset
                  - 2: Liability
                  - 3: Fund Balance
                  - 4: Revenue
                  - 5: Expense
                  - 6: TBD; for future use
                  - 7: Transfers
                  - 8: Other changes to Net Position

    Segment Definition:
    The (Natural) Account segment classifies the nature of the transaction as a specific type of revenue, expense, recharge, transfer, asset, liability or net position.

    Expanded Definition and Criteria:
    For clarity between the CoA Account segment and the current KFS Account, we will refer to the CoA segment as “Natural Account”, a commonly used accounting term.

    The (Natural) Account segment categorizes the nature of the transaction being recorded. The transaction is either revenue-producing, an expenditure, an asset that is owned, or a liability that is owed. Additionally, Account maintains Net Position for Entities and Funds. 

    (Natural) Account values will generally be shared across Financial Departments to provide consistency in operational and management reporting for UC Davis. 

    (Natural) Account values are established by both UCOP and UC Davis.

    Examples:
           - Salaries and Wages
                  - Academic Salaries and Wages
                         - Faculty Salaries
                                - Faculty Salaries - Ladder Rank & Equivalent
                                - Faculty Salaries - Lecturers
                                - Faculty Salaries - Clinical/ In-Resident/ Adjunct
                                - Faculty Salaries - Other
                                - Faculty Salaries - Reimbursement

    FAU Value Comparison:

    The (Natural) Account segment most closely aligns with the KFS Object Code.

  • Purpose

  • Segment Length: 2 characters

    Segment Value Schema: Numeric

    Segment Definition: 
    The Purpose segment is the functional classification of expenses for financial statements and other functional reporting, or for classifying revenues reflecting the mission of the university. Purpose supports federal and other external reporting requirements.

    Expanded Definition and Criteria:
    The Purpose segment tracks the purpose of the transaction, such as NACUBO-defined functional expense classification and mission.

    NACUBO classification data is utilized for far-reaching external reporting (e.g., institution ranking). This field is also essential for compliance with federal cost principles and financial statement reporting requiring expenditures be displayed by functional class.

    Purpose values are established by UCOP.

    Examples:
           - Instruction
           - Summer Session
           - Teaching Hospitals
           - Academic Support
           - Research
           - Libraries
           - University Extension
           - Public Service
           - Operations & Maintenance of Plant
           - Student Services

    FAU Value Comparison:
    The Purpose segment most closely aligns with the HEFC (Higher Ed. Function
    Code) attribute of the KFS Account.

  • Program

  • Segment Length: 3 characters

    Segment Value Schema: Alpha-numeric

    Segment Definition:
    The Program segment records revenue and expense transactions associated with a formal, ongoing system-wide or cross-campus/location academic or administrative activity that demonstrates UC Davis’ mission of teaching, research, public service and patient care.

    Expanded Definition and Criteria:
    There are two categories of Programs: 
           1)  Those pre-defined and sanctioned by UCOP, of which values are predesignated
           2)  Those endorsed and acknowledged by UC Davis Leadership

    Programs have permanence, are a going-concern, and are considered significant due to their prominence and impact.

    In general, Programs have allocated, not dedicated, FTEs and cannot be identified through a single Financial Department, Project Code or Activity Code.

    Program values are determined by both UCOP and UC Davis.

    Examples:
           - UCOP System-wide examples:
                   - Ag Experiment Station (AES)
                   - California State Summer School for Mathematics & Science (COSMOS)
                   - UC Sacramento
           - UC Davis examples (possible programs):
                   - Self-Supporting Degree Programs
                   - Student Success Programs
                   - Graduate Groups
                   - Campus-wide Programs
                   - Campus Ready
                   - Healthy Davis Together
                   - International/ Study Abroad Programs
                   - Housing Services Programs
         
    FAU Value Comparison:
    Due to significant variations in how departments track programs in KFS, it is not possible to align the Program segment with a KFS value.

  • Project

  • Segment Length: 10 characters

    Segment Value Schema: Value schema will differ for converted data vs. new projects
           - Projects that are converted to Oracle from KFS will be alpha-numeric
           - Projects that are new, generated in Oracle, will be numeric only

    Segment Definition:
    The Project segment tracks financial activity for a ‘body of work’ that often has a start and an end date that spans across fiscal years.

    Expanded Definition and Criteria:
    There are two categories of Projects: 
           1)  GL-Only Projects
           2)  Projects supported with the PPM (Projects Portfolio Management).

    GL-Only Projects - Activities, initiatives, or bodies of work with explicit funding, low  complexity of budget management and/or reporting needs, & which are not explicitly defined as a PPM Project.
                  -  Are associated with a Financial Department.
                  -  Are formally recognized and of financial significance.

                  -  Billing/invoicing to a third party is not required.

    PPM Projects - Generally, a body of work, often supported by a contract, with complex budget and third-party invoicing needs, or designated to a specific faculty member by agreement.
                  -  Generally, have a designated start and end date.
                  -  Managed under the terms and conditions of a contract.
                  -  Supported by multiple funding sources.
                  -  
    Supports reporting across fiscal years.

    Project values are assigned by UC Davis.

    Examples:
           - Examples of GL-Only Projects:
                   - Course Materials Fees
                   - Seminars
           - Examples of PPM Projects:
                   - Capital Projects
                          - Minor
                          - Major
                          - Deferred Maintenance
                          - Capital Renewal
                   - Sponsored Research
                   - Mondavi Performances
                   - Faculty Portfolio Funds
                 
    FAU Value Comparison:
    Due to significant variations in how departments track projects in KFS, it is not possible to align the Project segment with a KFS value.

  • Activity

  • Segment Length: 6 characters

    Segment Value Schema: Numeric

    Segment Definition:
     
    The Activity segment will track significant transactions which are recurring and take place at a point in time.

    Expanded Definition and Criteria:
    The Activity segment will track activities or events which support:
           - Financial Departments
           - and/or Programs
           - 
    and/or GL-Only Projects.

    Activities need to be tracked and reported on because of their financial significance. 

    Activity values will generally be shared across Financial Departments to provide consistency in operational and management reporting for UC Davis.

    Activity values are assigned by UC Davis.

    Examples:
           - Commencement
           - Student Orientation & Welcome Events
           - Fund Raising Campaigns
           - Symposiums/ Colloquiums
           - Student Advising
           - Professional Development/Awards
           - Student Competitions
           - Marketing & Media Campaigns
           - Recruitment & Relocation
           - Student Organizations & Sports Clubs
           - Campus-wide Activities (e.g. Picnic Day)

    FAU Value Comparison:
    Due to significant variations in how departments track activities in KFS, it is not possible to align the Activity segment with a KFS value.

  • Inter-Entity

  • Segment Length: 4 characters

    Segment Value Schema: Numeric

    The Inter-Entity segment is recommended by Deloitte to support the Balancing Segment functionality. UC Davis intends to designate the Entity and Fund segments as Balancing Segments.

    Although users will see this segment in Oracle, it will NOT require data entry. It will have default values, generated by the Oracle system.

  • Future 1 & Future 2

  • Segment Length: 6 characters 

    Segment Value Schema: Numeric

    The Future segments are currently undefined. 

    Based on lessons learned from other Higher Education institutions, and at the request of UCOP, the two segments will be used for UCOP’s future use.

    Although users will see these segments in Oracle, they will NOT require data entry until the criteria are defined and put into use.  Until that time, a default value will be system-generated.