Continuation Accounts: Best Practices

A continuation account is defined as: an account designated to accept transactions posted to an expired account. It is the responsibility of the Fiscal Officer to reconcile and clear the department continuation account on a monthly basis. Every department is assigned a continuation account. These accounts are designated by “200DeptNumber” (ie 2001602). Any charges that hit against this account should be moved off appropriately within the current month or the immediate following month. In some circumstances, OSP (Office of Sponsored Programs) takes the lead in moving transactions off a continuation account.

Continuation accounts should be reviewed along with other monthly accounts however, continuation accounts should net to zero monthly. At fiscal year end, any expenses that are not cleared from the continuation account will be reclassed to a department account by Campus Services. A list of the department default accounts is maintained in Campus Services. If you have questions or concerns regarding this account, please contact your Campus Services Representative.

OSP’s Responsibility for clearing Continuation Accounts:

53 Accounts The Office of Sponsored Programs (OSP) initiates two types of transactions into KFS – one for billing and one for revenue recognition for 53 account activity. Revenue recognition transactions run at month end via a prorate to recognize revenue on expenses incurred. In addition, when OSP invoices a project, a feed is sent from OSP’s Ledgers to KFS to move the invoice amount from Unbilled Receivable to Billed Receivable.

a) OSP will clear Continuation Account transactions that are created from the Revenue Recognition prorate and the Billing feed. The Object codes that OSP will clear are:

1460 – 1464 Unbilled Receivables Codes

1450 -1453 Billed Receivables Codes

4200 – 4209, 4215-4219 Revenue Object Codes

b) Transactions from 53 accounts that are recorded in an expense object code in a continuation account are the result of the transaction occurring past the 53 account expiration date. The expiration date is set based on when the project has ended and when no more expenses are allowed to hit that account. It will be up to the department to clear the expense transactions from their continuation account. If the department has a concern about the expiration date on a 53 account, they should contact the OSP Accounting Tech overseeing that particular account.

88 Accounts An automated journal entry (prorate) runs at month end to move the total expense incurred in the 88 account to the related 53 account. The entry posts an expense to the 53 account KFS object codes 6215 or 6224 (models, equipment) and a credit to the 88 account KFS object code 4800 (inter-department credit).

a) OSP will clear continuation account transactions that are created from the month end prorate that moves the 88 total expense to the related 53 account. The Object codes that OSP will clear are:

4800 Interdepartment Credits

6215 Model Expense Code

6224 Equipment Expense Code

b) Transactions from 88 accounts that are recorded in an expense object code in the continuation account are a result of the transaction occurring past the 88 account expiration date. The expiration date is set based on when the project has ended and when no more expenses are allowed to hit that account. The department is responsible for clearing transactions that are recorded in expense object codes in the continuation account, except object codes 6215 and 6224. If the department has a concern about the expiration date on an 88 account, they should contact the OSP Accountant that oversees 88 accounts.

64 Accounts An automated journal entry (prorate) or feed does not occur on 64 accounts Transactions in 64 account object codes in the continuation account are a result of the transaction occurring past the 64 account expiration date. The expiration date is entered when there are no additional funds available at the Foundation to fund a 6-4 gift account. It will be up to the department to clear the transactions from their continuation account. If the department has a concern about the expiration date on a 64 account, they should contact the OSP Accountant that oversees 64 accounts. Questions about a balance in a Foundation account may be directed to the CSU Foundation.