What are ChartFields?

ChartFields are the foundation of financial management and reporting in an organization. They serve as a framework to organize, categorize, and track financial data at various levels of detail. ChartFields break down transactions into identifiable segments, providing a way to assign revenue and expenses to specific departments, projects, funds, or activities. This structure supports accurate financial reporting, analysis, and compliance with organizational and regulatory requirements.

By standardizing how financial transactions are recorded, ChartFields ensure that financial data is comprehensive and easily accessible for strategic decision-making, audits, and performance assessments.

 

Introduction to ChartFields

In the Chart of Accounts (COA), ChartFields act as individual data fields that provide crucial details about every financial transaction within the system. These fields capture the specific attributes of each transaction, allowing for the classification of revenues, expenses, assets, liabilities, and other financial elements.

For example, if a department purchases office supplies, the ChartFields identify the fund and department (DeptID) that incurred the expense and attribute the cost to a specific program, class or project if applicable.

ChartFields enable organizations to:

  • Track financial activity by business unit, department, or project.
  • Support budgeting and forecasting by providing structured financial data.
  • Facilitate reporting by enabling tailored financial reports based on the combination of various ChartField values.
  • Ensure compliance by tracking restricted funds, ensuring expenditures align with their intended purpose.

 

Quick List of Common ChartFields Elements

To provide clarity, here’s a reference list of common ChartField elements used in the system, offering quick access to essential components:

Business Unit
The organizational entity responsible for processing the transaction. This ensures the right organizational unit is credited or debited in the system. Note: UOFAB (University of Alberta) is the only business unit available in the system.
Account
Identifies the nature of the transaction (e.g., expenses, revenues, assets). Accounts define what type of transaction is occurring, ensuring accuracy in financial reporting. The General Ledger Accounts include a quick list and a complete list.
Fund
Specifies the source of the financial resource, whether from internal budgets or external grants. Funds often come with stipulations, requiring proper tracking to ensure compliance with donor or granting agency requirements.
Department (DeptID)
Indicates the specific department or unit responsible for the transaction. It helps in tracking the financial performance of various organizational units.
Program
Used to track specific initiatives, ongoing programs, or strategic goals, ensuring that related expenses and revenues are assigned correctly.
Class
Provides a further breakdown of financial activities within programs or departments. It allows a more granular view of transactions within larger financial groups.
Project
Assigns transactions to projects with defined lifespans or specific funding sources. Project ChartFields are essential for tracking expenses and revenues against a particular initiative over its lifecycle.This ChartField is only available for research, special purpose, and capital funds.
Sponsor
This field identifies the source of external funding for departments engaged in research projects, funded by external bodies. Accurate tracking of sponsor-related transactions ensures compliance with external reporting requirements.

These ChartField elements, when used in combination, provide a robust system for categorizing and reporting on an organization’s financial data.

 

COA Structure 

The Chart of Accounts (COA) is a financial structure that defines how transactions are categorized and reported across the organization. It acts as the backbone for financial reporting by providing a standard template for recording financial activity.

A well-organized COA ensures consistency across departments, facilitates reporting, and aids in effective budget management. It also supports internal controls, helping to ensure that financial activity complies with both internal policies and external regulations.

 

Key Components of a COA Structure 

1. Segmentation
The COA is structured into multiple segments (or fields): Account, Fund, Department, Program and Class. This allows the organization to track financial activity at various levels.
2. Hierarchical Reporting
The COA is designed with a hierarchical structure, enabling high-level reporting at the business unit level while also allowing more detailed reporting at the departmental or project level.
3. Flexibility
The structure of the COA is designed to accommodate changes within the organization, such as the creation of new departments or programs, by allowing new ChartFields to be added or modified as needed.
4. Standardization
The COA standardizes how financial transactions are recorded, ensuring consistency in how data is captured and reported across different departments, programs, and business units.

 

ChartField Updates and Structure Changes

It is important to periodically review and update the COA to reflect any changes in the organization’s structure or reporting needs. This may include restructuring departments, adding new funding sources, or aligning the COA with updated regulatory requirements. Transition checklists ensure that any changes to the COA are carefully planned and executed, minimizing disruption to financial reporting.

In the case of significant changes to the COA structure, the organization must:

  • Review the current COA structure and identify areas that need adjustment.
  • Communicate changes to all stakeholders.
  • Update ChartFields and ensure accurate mapping to new segments.
  • Test new configurations before full implementation to avoid unintended errors in other reporting systems.

By maintaining an up-to-date and flexible COA, organizations can ensure that their financial systems continue to meet their operational and regulatory needs.

 

Last Updated: October 2024