FAQs - IT COSTS
For additional questions concerning
the accounting of networking and information technology costs, contact
Ralph_McLester@ncsu.edu
Frequently asked questions in applying
the new accounting requirements for networking and information technology
costs follow: (click the question for the
answer):
1. As
the result of the new accounting established for networking
and information technology costs, what accounts have been
removed from the list of valid expenditure accounts/objects?
2. What
is expendable EDP equipment and what accounts/object codes
should be used to record them?
3. What is expendable EDP software
and what accounts/object codes should be used to record them?
4. Are the 528xx accounts/object
codes only for EDP expendable equipment/software items?
5.
Will transactions recorded to expenditure
account/object 55522 "Other Equip - Telecommunications"
need to be reclassified to account/object 55550 "Other
Equip - Voice Communications"?
6.
Where should network storage charges
billed by Network & Client Services be coded?
Question
#1:
As a result of the
new accounting established for networking and information
technology costs, what accounts have been removed from the
list of valid expenditure accounts/objects?
Answer:
As of January 1, 2003, the following
expenditure accounts/objects are no longer valid and have
been removed from the list of valid expenditure accounts in
the Administrative Procedures Manual:
- Rental of EDP
equipment (account/object 54200)
- Maintenance Contract
EDP equipment (account/object 54410)
- EDP equipment
(account/object 55200)
- EDP hardware
(account/object 55210)
- EDP software
(account/object 55220)
- Other Equip –
Telecommunications (account/object 55522)
Instead, when coding expenditures for
EDP rental, maintenance, equipment, hardware, and software
you must follow the guidelines provided in the memo from the
University Controller dated January 7, 2003, “Accounting
for local area networking and other information technology
costs”, as revised on January 23, 2003 for expendable
equipment items. Because of pending activity in these
accounts, these account/object codes are still active on the
system but will be deactivated as soon as the pending activity
is cleared.
Question
#2:
What is considered
expendable EDP equipment and what accounts/object codes should
be used to record them?
Answer:
Expendable EDP equipment are individual
equipment purchases under $5,000 for voice communications
equipment (account/object 52850), WAN equipment (account/object
52871), video transmission equipment (account/object 52872),
LAN equipment (account/object 52873), personal computers and
printer purchases (account/object 52874), server purchases
(account/object 52875), mainframe purchases (account/object
52876), and other DP equipment (account/object 52870).
If individual expenditures for these items are $5,000 or more
they are recorded similarly to account/object 555XX (note
the last two numbers are the same as above for under $5,000).
Question
#3:
What is considered
expendable EDP software and what accounts/object codes should
be used to record them?
Answer:
Expendable EDP software are individual
software purchases under $5,000 for WAN software (account/object
52822), personal computer software purchases (account/object
52823), server software purchases (account/object 52824),
mainframe software purchases (account/object 52825), external
developed software (account/object 52826) and other computer
software (account/object 52821). If individual expenditures
for these items are $5,000 or more they are recorded similarly
to account/object 552XX (note the last two numbers are the
same as above for under $5,000).
Question
#4:
Are the 528xx accounts/object
codes only for EDP expendable equipment/software items?
Answer:
Yes. The 528xx accounts/object codes
are currently being used only for the EDP expendable equipment/software
items. However, this series may be expanded at a later date
to include other non-EDP expendable items.
Question
#5:
Will transactions recorded
to expenditure account/object 55522 “Other Equip –
Telecommunications” need to be reclassified to account/object
55550 “Other Equip – Voice Communications”?
Answer:
No, these two accounts will roll up to
one for reporting to the State. This change was made
to accommodate keeping the last two digits the same for equipment
under and over $5,000. Account/object 55550 “Other
Equip – Voice Communications” should now include
expenses previously recorded to account/object 55522 “Other
Equip – Telecommunications”.
Question
#6:
Where should network services
(i.e. storage charges) billed by Network & Client Services
be coded ?
Answer:
They should be coded to account/object
53811 "Managed LAN Service Charge"
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