Systemwide Accounting Procedures
Accounting Integrated Statewide Record System Procedures
Loans
Click on one of the following links to jump to the associated loan transaction type.
- Local to Local
- State Treasury account to State Treasury account
- State Treasury account to Local account
- Local account to State Treasury account
The Minnesota State Colleges and Universities system needs to be able to track loans in the Integrated Statewide Record System so that we can identify them and report loans payable and loans receivable on the financial statement balance sheets. We need to track all types of loans - institution to institution, system office to institution, within an institution between funds, etc.
Since balance sheet object codes can't be used for state treasury accounts, revenue and expense "loan" object codes will be established.
7109 - Loans Receivable Transfer Out - (crosswalk to MAPS revenue code 8349) 9809 - Loans Payable Transfer In - (crosswalk to MAPS revenue code 8349)
For MAPS to MnSCU reconciliation this will require that object code 7109 be treated in the same manner that object code 7106 is treated. It will have to be entered as negative revenue instead of expense on the MAPS to MnSCU reconciliation worksheets.
For financial statements the results of transactions in these object codes will be converted to Loans Payable and Loans Receivable.
The Office of the Chancellor Budget division will also need to be aware of these transactions so that they have an accurate fund balance for their monitoring needs.
Entries:
Local to Local:
Within an institution/same bank:
| EG |
|---|
| DR | 8203 | Loans Receivable | ||
| CR | 8110 | Cash |
| CR |
|---|
| DR | 8110 | Cash | ||
| CR | 8670 | Loans Payable |
Within an institution/different bank or from an institution to another institution:
| PG |
|---|
| DR | 8203 | Loans Receivable | ||
| CR | 8110 | Cash |
| CR |
|---|
| DR | 8110 | Cash | ||
| CR | 8670 | Loans Payable |
Payback would be the reverse. EG and PG transactions would debit 8670 and CR transactions would credit 8203. Object code balances would reflect Loans Payable and Loans Receivable balances in ISRS and on the financial statements.
State Treasury account to State Treasury account:
Within an institution or from an institution to another institution
| PV2 (Seller screen Rev Code 8349) |
|---|
| DR | 7109 | Loans Receivable Transfer Out. | ||
| CR | 8110 | Cash |
| CP "Y" Flag |
|---|
| DR | 8110 | Cash | ||
| CR | 9809 | Loans Payable Transfer In |
Financial statement adjustments would have to be made. For the first year there are loans, you would reclassify the totals in object code 7109 to Loans Receivable and the totals in object code 9809 to Loans Payable.
In subsequent years you would start with the previous year's Loans Receivable and Loans Payable balances and compute the new balances based on the activity in object codes 7109 and 9809.
State Treasury account to Local account:
Within an institution or from an institution to another institution:
| PV1 - Pay to EFT vendor number |
|---|
| DR | 7109 | Loans Receivable Transfer Out | ||
| CR | 8110 | Cash |
| CP |
|---|
| DR | 8110 | Cash | ||
| CR | 9809 | Loans Payable Transfer In |
Payback transactions from local account to State Treasury account vary by situation as follows:
- Within an institution and from sweep bank account:
EV DR 9809 Loans Payable Transfer In CR 8110 Cash CP "N" Flag DR 8110 Cash CR 7109 Loans Receivable Transfer Out - Within an institution and from a non sweep bank account or from an institution to another institution:
PV DR 9809 Loans Payable Transfer In CR 8110 Cash CP "N" Flag DR 8110 Cash CR 7109 Loans Receivable Transfer Out
Financial statement adjustments would have to be made. For the first year there are loans, you would reclassify the totals in object code 7109 to Loans Receivable and the totals in object code 9809 to Loans Payable.
In subsequent years you would start with the previous year's Loans Receivable and Loans Payable balances and compute the new balances based on the activity in object codes 7109 and 9809.
Local account to State Treasury account:
- Within an institution and from sweep bank account:
EV DR 9809 Loans Payable Transfer In CR 8110 Cash CP "N" Flag DR 8110 Cash CR 7109 Loans Receivable Transfer Out - Within an institution and from a non sweep bank account or from an institution to another institution:
PV DR 9809 Loans Payable Transfer In CR 8110 Cash CP "N" Flag DR 8110 Cash CR 7109 Loans Receivable Transfer Out
Payback transaction from State Treasury account to local account:
Within an institution or from an institution to another institution:
| PV1 - Pay to EFT vendor number |
|---|
| DR | 9809 | Loans Payable Transfer In | ||
| CR | 8110 | Cash |
| CP |
|---|
| DR | 8110 | Cash | ||
| CR | 7109 | Loans Receivable Transfer Out |
Financial statement adjustments would have to be made. For the first year there are loans, you would reclassify the totals in object code 7109 to Loans Receivable and the totals in object code 9809 to Loans Payable.
In subsequent years you would start with the previous year's Loans Receivable and Loans Payable balances and compute the new balances based on the activity in object codes 7109 and 9809.
If you have questions or comments please email us (accounting@so.mnscu.edu) or refer to the staff directory link at the top of this page for additional contact information.
