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POLICY TITLE:

General Ledger and Chart of Accounts Policy

VOLUME, SECTION & NUMBER:

ENTITIES AFFECTED:

All Divisions and Departments

ADMINISTRATIVE AUTHORITY:

Finance and Administration

## APPROVED BY:

Kentucky State University Board of Regents

## EFFECTIVE DATE:

## August 9, 2024

## POLICY STATEMENT:

The chart of accounts is the basis for the general ledger and the accounting system for Kentucky State University (KSU). General ledger accounts are used to keep track of transactions and how these transactions affect each asset, liability, revenue, expense, and net position account.

The Chief Financial Officer (CFO) of KSU controls the chart of accounts, ensuring that the chart of accounts meets the needs of the:

Organizational structure, divisions, and departments;

Internal financial management reporting; and

• External and regulatory reporting requirements

The CFO approves the chart of accounts. The Controller maintains the approved accounts, including additions and deletions, with the accounting system.

## DEFINITIONS:

## General Ledger

The general ledger is defined as a group of accounts that supports the information shown in the major

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financial statements. The general ledger is supported by various subsidiary ledgers that provide details for certain accounts in the general ledger. The general ledger is the foundation for the accumulation of data and reports.

## Chart of Accounts

The chart of accounts is a systematic numbering system for the accounting system. Accounts are means by which differing effects or transactions can be categorized or collected.

## RELATED POLICIES:

Business Policies and Procedures Manual

## STATUTORY AND REGULATORY REFERENCES:

NACUBO Financial Accounting and Reporting Manual

GAAP

GASB