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Financial Accounting Improvement Project

Learn about the Financial Accounting Improvement Project (FAIP) and how it will affect the way you use expenditure and other account codes, and commodity codes.

Background

UCSD initiated the Financial Accounting Improvement Project (FAIP) in 2004 to improve the quality of financial information and accounting processes, under the guidance of Assistant Vice Chancellors Elazar Harel, Donald Larson, and Margaret Pryatel. The FAIP team is evaluating recommendations from UCSD's external audit firm and reviewing financial systems controls to make sure appropriate accounting information is maintained.

Account code issues

The FAIP team discovered that users have a hard time selecting correct account codes and are overusing "miscellaneous" and "other" account codes (e.g., 637200, 638000). UCSD must improve this process to be compliant with federal cost accounting standards and accurate F&A rate development.

See the team's recommendations and current progress in this table:

Recommendation Progress
Improve online transactions so selecting accounting elements is easier Made enhancements to default commodity and account codes for purchase requisition, department order, and payment authorization processes
Improve commodity codes and their relationship to account codes. Developed more accurate and consistent commodity codes, descriptions, and corresponding default account codes for purchase requisitions and department orders
Enhance the expenditure account code hierarchy to simplify account code selection Account code hierarchy updated with:
  • New account codes
  • Account title changes
  • Inactivated accounts
Eliminate miscellaneous account codes Reviewed miscellaneous account code usage
Improve financial reporting processes, including timely maintenance of the campus organization code hierarchy Ongoing

Team members

The FAIP team includes members from General Accounting, Procurement & Contracts, the Financial Analysis Office and the Office or the Controller. The FAIP Oversight Committee provides support and direction to the project and includes members from the administrative offices responsible for accounting processes as well as representatives from campus, SOM, and SIO departments.

Note: This page has a friendly link that's easy to remember: http://blink.ucsd.edu/go/faip