Accounting Terminology


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OMB Circular A-133 Audit
Effective July 1, 1990, universities and other non-profit institutions must have audits conducted in compliance with OMB Circular A-133 "Audits of States, Local Governments, and Non-Profit Organizations". Auditors are required to determine if: (a) fund statements are presented accurately; (b) Duke has an internal control structure that provides reasonable assurance that federal awards are being managed properly and ensures compliance with laws and regulations that could have material effect on the fund statements; and (c) Duke has complied with those laws and regulations that could have a direct and material effect on its fund statement amounts and on each major federal assistance program.

When Duke awards federal funds to a subrecipient, OSP is also required to maintain and review a Subcontractor's audit report if the Subcontractor has spent $500,000 or more in federal funds in a fiscal year. If the Subcontractor's audit report indicates a finding that may affect the Subcontract, OSP is required to follow up on the action taken by the Subcontractor to correct the finding.
OMB Circular A-21 Cost Principles for Educational Institutions
The cost principles in A-21 provide the general accounting "rules" that the University must follow in regards to determining costs applicable to grants, contracts, and other agreements with educational institutions. These principles define those costs that are allowable and allocable to the Federal Government.

Issues on cost determination center on Facilities and Administrative (F&A) costs versus allowable direct costs and unallowable costs.
Org Key - Organizational Key
On forms, this will be a 4-character field; it consists of the old "pay point" prefaced with two letters, depending on the organization.
DD Duke University and Duke Hospital
DR Durham Regional Hospital departments
RC Duke Raleigh Hospital departments
Organizational (Org.) Code
Departmental position code within the company code structure.
Also referred to as "BFR Code".

The BFR code is a series of ten digit codes within the General Ledger that provides a five level organizational hierarchy structure. Every position and cost object at Duke will be linked to a BFR code at some level in the hierarchy.
Organizational Unit
An organizational unit is an eight-digit number that represents the hierarchical organizational structure with regards to HR and Payroll in the SAP system. For example, these eight-digit numbers can represent a department within the School of Medicine or a school within the Provost area. One example of an organizational unit is 50000393, which represents Cardiology within the Department of Medicine.

The term Organizational Units pertains to the HR and Payroll functions for both the University and Health System companies, while the term Org. Units pertains to a similar concept of a hierarchical structure for financial reporting purposes for Duke University.
OSP
Abbreviation for "Office of Sponsored Programs"