Accounting for Local Area Networking and Other Information Technology Costs

Memo from Cliff Flood, University Controller  1/24/2003

As a result of discussion with the Office of Contracts and Grants, we have revised the previous list of new accounts dated January 7, 2003 “Accounting for local area networking and other information technology costs”, to include new supply accounts for expendable EDP equipment and software under $5,000.  Also, in an effort to accommodate keeping the last 2 digits the same for equipment under and over $5,000, “Other Equip – Voice Communications” and “Other Equip – Telecommunications” were combined into a single account/object 55550.  Attached is the revised list of new accounts with the supply accounts shaded in gray.

Some accounts previously used for accounting of networking and information technology costs are no longer valid and should not be used after the effective date of the new accounts.  These accounts have now been removed from the available expenditure accounts/objects listed in the Administrative Procedures Manual, as follows:

54200  Rental of EDP Equipment

54410  Maint Contract-EDP Equipment.

55200  EDP Equipment

55210  EDP Hardware

55220  EDP Software

55522  Other Equip - Telecommunications

Based on the effective date of the change as noted on the list of new accounts (either July 1, 2002 or January 1, 2003), amounts recorded in these accounts will need to be classified to the proper account (For example; personal computer or printer purchases with an effective date of January 1, 2003, will require the new classification beginning January 1; however, reclassification will not be required for transactions occurring before that date; as compared to WAN equipment that requires a new classification as of July 1, 2002, and will require reclassification of transaction balances that have been classified to the old accounts/objects for this year.)  These reclassifications need to be made prior to the monthly close of March 2003.  Please contact Maria Brown in the Accounting Office for assistance in making these reclassifications.

We have established a website to assist campus in implementing these new accounts.  The web site provides instructions to campus on the topic of networking and information technology costs, networking and information technology definitions, a listing of the new accounts and their effective dates, questions and answers, a link to the NC State expenditure chart of accounts, and a contact button for additional questions.  To access this information please go to the Controller’s Office home page ( http://www.fis.ncsu.edu/controller ) and click on the “Accounting-IT Costs” button.   

If there are any questions on these instructions, forward your questions to Maria Brown at Maria_Brown@ncsu.edu or Ralph McLester at Ralph_McLester@ncsu.edu .