MARS Chart of Accounts Overview November 24, 1998

MARS Chart of Accounts MARS Chart of Accounts OverviewOverview

November 24, 1998November 24, 1998

IntroductionIntroduction

Ed Ross, ControllerEd Ross, Controller

PurposePurpose

Become sufficiently familiar with the Become sufficiently familiar with the MARS Chart of Accounts fundamentals MARS Chart of Accounts fundamentals in order to:in order to:– Understand the Chart of Accounts related to Understand the Chart of Accounts related to

Agency ImplementationAgency Implementation– Begin defining the Agency-specific Chart of Begin defining the Agency-specific Chart of

Accounts elementsAccounts elements

ObjectivesObjectives

Conceptual understanding of:Conceptual understanding of:– MARS Financial System Chart of Accounts MARS Financial System Chart of Accounts

FundamentalsFundamentals– MARS Statewide Chart of Accounts structureMARS Statewide Chart of Accounts structure– MARS Budgetary ControlMARS Budgetary Control– MARS Cash ControlMARS Cash Control

ObjectivesObjectives

Conceptual understanding of the Agency Conceptual understanding of the Agency Chart of Accounts analysis process Chart of Accounts analysis process including:including:– Understanding of how MARS Agency-specific Understanding of how MARS Agency-specific

fields may be usedfields may be used– Understanding of how MARS Agency-specific Understanding of how MARS Agency-specific

hierarchies/roll-ups may be usedhierarchies/roll-ups may be used Understanding of next steps required to Understanding of next steps required to

complete Chart of Accounts definition for complete Chart of Accounts definition for your agencyyour agency

TopicsTopics

IntroductionIntroduction– Ed Ross, ControllerEd Ross, Controller

MARS Chart of Accounts FundamentalsMARS Chart of Accounts Fundamentals– Brandie Wilkinson (MARS Project)Brandie Wilkinson (MARS Project)

MARS Statewide Chart of AccountsMARS Statewide Chart of Accounts– Stuart Weatherford (Accounts)Stuart Weatherford (Accounts)

MARS Agency Chart of AccountsMARS Agency Chart of Accounts– Stuart Weatherford (Accounts)Stuart Weatherford (Accounts)

TopicsTopics

MARS Budgetary ControlMARS Budgetary Control– John Hicks (Governor’s Office for Policy and John Hicks (Governor’s Office for Policy and

Management)Management) MARS Cash ControlMARS Cash Control

– John Hicks (Governor’s Office for Policy and John Hicks (Governor’s Office for Policy and Management)Management)

ConclusionConclusion– Ed Ross, ControllerEd Ross, Controller

IntroductionIntroduction

Expectations and OpportunitiesExpectations and Opportunities– Be able to begin Agency Implementation Be able to begin Agency Implementation

Notebook - Chart of Accounts downstream Notebook - Chart of Accounts downstream activitiesactivities

– Ability to define and identify associated Ability to define and identify associated improvements in coding block requirementsimprovements in coding block requirements

– Actively engage in defining your agency’s Actively engage in defining your agency’s Chart of Accounts under MARSChart of Accounts under MARS

– Ability to work with your Agency Ability to work with your Agency Implementation team in consulting/working Implementation team in consulting/working sessionssessions

BackgroundBackground

Parties to Design WorkParties to Design Work– GOPM, Controller’s Office, Transportation, GOPM, Controller’s Office, Transportation,

Finance Cabinet employees and AMS staffFinance Cabinet employees and AMS staff Worked through the current STARS Worked through the current STARS

elements and their functionalityelements and their functionality AMS paralleled baseline functionality and AMS paralleled baseline functionality and

identified associated gapsidentified associated gaps Each gap was evaluated for significance, Each gap was evaluated for significance,

basis in structure, and effect on the basis in structure, and effect on the business casebusiness case


AMS came forth with proposals to AMS came forth with proposals to modify the system to accomplish the modify the system to accomplish the missing functionalitymissing functionality

A Foundation Design document was A Foundation Design document was drafted providing the basis for drafted providing the basis for Functional SpecificationsFunctional Specifications

These modifications were reviewed and These modifications were reviewed and prioritized for implementationprioritized for implementation


Technical Specifications were written for Technical Specifications were written for approved modifications and coding was approved modifications and coding was startedstarted

MARS Chart of Accounts MARS Chart of Accounts ObjectivesObjectives

Support of the Commonwealth financial Support of the Commonwealth financial structurestructure

Provide a flexible approach for Agency Provide a flexible approach for Agency element definitionelement definition

MARS Chart of Accounts MARS Chart of Accounts FundamentalsFundamentals

Brandie Wilkinson (MARS Project)Brandie Wilkinson (MARS Project)


TopicsTopics– MARS Chart of Accounts structureMARS Chart of Accounts structure– Chart of Accounts entry-level versus roll-ups Chart of Accounts entry-level versus roll-ups

(MARS hierarchical structure)(MARS hierarchical structure)– MARS entry-level inference abilityMARS entry-level inference ability– MARS roll-upsMARS roll-ups


MARS Chart of Accounts structureMARS Chart of Accounts structure– Statewide Elements:Statewide Elements:

Fund Agency Organization AppropriationUnit

Object RevenueSource

Balance SheetAccount

– Agency Elements:Agency Elements:

Activ ity Function Organization Sub-Object Sub-RevenueSource

ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


Entry-level versus roll-ups (hierarchical Entry-level versus roll-ups (hierarchical structure)structure)– Entry-level elements provide the mode of entry Entry-level elements provide the mode of entry

of data valuesof data values For example, Object is an entry-level element For example, Object is an entry-level element

in MARSin MARS– Roll-ups provide the means of summing Roll-ups provide the means of summing

information for reportinginformation for reporting For example, Object Type (STARS Major For example, Object Type (STARS Major

Object Group) is a roll-up of Objects (STARS Object Group) is a roll-up of Objects (STARS Minor Object)Minor Object)


MARS entry-level inference abilityMARS entry-level inference ability– For entry-level elements where a direct For entry-level elements where a direct

relationship exists, some elements may be relationship exists, some elements may be inferredinferred

For example, a particular expenditure For example, a particular expenditure activity could be associated with the activity could be associated with the MARS Organization elementMARS Organization element

Similar to STARS Posting Level Program’s Similar to STARS Posting Level Program’s ability to infer Allotment Account and ability to infer Allotment Account and Appropriation AccountAppropriation Account


– Entry-level elements will infer their Entry-level elements will infer their associated roll-up levels from reference associated roll-up levels from reference tables when reportingtables when reporting

For example, a report requesting total For example, a report requesting total expenditures for a given Object Type expenditures for a given Object Type (STARS Major Object Group) infers the (STARS Major Object Group) infers the Object Type on each transaction from the Object Type on each transaction from the Object (STARS Minor Object)Object (STARS Minor Object)


MARS Find Code FunctionalityMARS Find Code Functionality– Users can locate and populate valid codes Users can locate and populate valid codes

for an element through the Find Code for an element through the Find Code functionfunction

– Facilitates the rapid location of valid codes Facilitates the rapid location of valid codes for transaction processingfor transaction processing


Common Coding StringsCommon Coding Strings– Stores data values most commonly used by Stores data values most commonly used by

a particular Agency and User Coding String a particular Agency and User Coding String GroupGroup

– Agencies may optionally use the Common Agencies may optionally use the Common Coding StringsCoding Strings

– Initial setup is required to enable the Initial setup is required to enable the Common Coding StringsCommon Coding Strings


Common Coding Strings (continued)Common Coding Strings (continued)– Data values are automatically populated on Data values are automatically populated on

documents during data entrydocuments during data entry For example, the codes for a specific field For example, the codes for a specific field

office can be pre-populated on a office can be pre-populated on a transaction based upon a text description transaction based upon a text description of a Common Coding String that can be of a Common Coding String that can be associated with each userassociated with each user

– Speeds data entrySpeeds data entry– Facilitates transaction codingFacilitates transaction coding


MARS roll-ups, or hierarchical structureMARS roll-ups, or hierarchical structure– The following MARS elements are hierarchical:The following MARS elements are hierarchical:

Statewide elements:Statewide elements:




Standard Hierarchical Structure

Non-Standard Hierarchical Structure

Non-Hierarchical


ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


Agency elements:Agency elements:

Standard Hierarchical Structure

Non-Standard Hierarchical Structure

Non-Hierarchical


– Most elements contain 5 levels:Most elements contain 5 levels: CodeCode ClassClass CategoryCategory TypeType GroupGroup

– Organization provides 12 levelsOrganization provides 12 levels– Appropriation Unit provides 3 levelsAppropriation Unit provides 3 levels


– Code level is the lowest level and the level Code level is the lowest level and the level at which data entry occursat which data entry occurs

– The other 4 levels are roll-ups of the code The other 4 levels are roll-ups of the code level or each otherlevel or each other


Hierarchy Examples PrefaceHierarchy Examples Preface– MARS hierarchies are a very important conceptMARS hierarchies are a very important concept– MARS hierarchies will require further detailed MARS hierarchies will require further detailed

discussion to gain better knowledge of discussion to gain better knowledge of functionalityfunctionality

– Users should ask questions and work with their Users should ask questions and work with their AIL’s, ALM’s, and FAS’s to develop further AIL’s, ALM’s, and FAS’s to develop further knowledgeknowledge

– The following examples are meant to simply The following examples are meant to simply provide an overviewprovide an overview


Hierarchy examplesHierarchy examples– Conceptual Example 1 - Simple Hierarchy:Conceptual Example 1 - Simple Hierarchy:

The Class hierarchy may consist of a The Class hierarchy may consist of a grouping of Codes.grouping of Codes.

The Category hierarchy may consist of a The Category hierarchy may consist of a grouping of Classes.grouping of Classes.

The Type hierarchy may consist of a The Type hierarchy may consist of a grouping of Categories.grouping of Categories.

The Group hierarchy may consist of a The Group hierarchy may consist of a grouping of Types.grouping of Types.


– Conceptual Example 1 - Simple HierarchyConceptual Example 1 - Simple Hierarchy

Pennyrile

Indiana

United States

Kentucky

JacksonPurchase

Bluegrass

Franklin Fayette W oodford

Bridgeport Balk Knob Peaks M ill Code = Com m unity

Class = County

Category = Region

Type = State

Group = Country


– Conceptual Example 2 - Multiple Hierarchies Conceptual Example 2 - Multiple Hierarchies in one Element:in one Element:

The Class hierarchy may consist of one The Class hierarchy may consist of one grouping of Codes.grouping of Codes.

The Category hierarchy may consist of a The Category hierarchy may consist of a second grouping of Codes.second grouping of Codes.

The Type hierarchy may consist of a third The Type hierarchy may consist of a third grouping of Codes.grouping of Codes.

The Group hierarchy may consist of a The Group hierarchy may consist of a fourth grouping of Codes.fourth grouping of Codes.


– Conceptual Example 2 - Multiple Hierarchies in one ElementConceptual Example 2 - Multiple Hierarchies in one Element

W estern H ills

Public

Hearn Good Shepard

Private FranklinClass Category Type

Code


Agency/OrganizationAgency/Organization– Agency and Organization are two distinct Agency and Organization are two distinct

data elementsdata elements– Agency and Organization are hierarchically Agency and Organization are hierarchically

linkedlinked Organizations must be established under Organizations must be established under

an Agencyan Agency– Organization codes may be duplicated Organization codes may be duplicated

across, but not within, Agencies due to their across, but not within, Agencies due to their hierarchical relationshiphierarchical relationship


Fund/Agency Control OptionsFund/Agency Control Options– Specifies coding options for Organization, Activity, Specifies coding options for Organization, Activity,

and Functionand Function– Two main options:Two main options:

Optional on AccountingOptional on Accounting Required on AccountingRequired on Accounting

– Code usage options may be specified for Code usage options may be specified for budgetary and accounting transactions, such as, budgetary and accounting transactions, such as, Appropriations, Allotments, and Payment VouchersAppropriations, Allotments, and Payment Vouchers

– Settings control code usage options for various Settings control code usage options for various transactionstransactions

MARS Statewide Chart of MARS Statewide Chart of Accounts ElementsAccounts Elements

Stuart Weatherford (Accounts)Stuart Weatherford (Accounts)


TopicsTopics– MARS Chart of Accounts structureMARS Chart of Accounts structure

Statewide Elements:Statewide Elements:










Fund Group

Fund Type

Fund Category

Fund C lass

Fund


FundFund– Coded on transactionCoded on transaction– Size - 4 charactersSize - 4 characters– Definition - The MARS Fund data element is Definition - The MARS Fund data element is

used to establish all valid fund values. The used to establish all valid fund values. The Fund data element will be used to establish Fund data element will be used to establish the Commonwealth’s CAFR Funds. the Commonwealth’s CAFR Funds.

– STARS - 01 (General Fund)STARS - 01 (General Fund)– MARS - 0100 (General Fund)MARS - 0100 (General Fund)


Fund Group

Fund Type

Fund Category

Fund C lass

Fund


Fund Class, Category, Type, and Group Fund Class, Category, Type, and Group used for other statewide reporting used for other statewide reporting needsneeds







Agency Group

Agency Type

Agency Category

Agency C lass

Agency


AgencyAgency– Coded on transactionCoded on transaction– Size - 3 charactersSize - 3 characters– Definition - The MARS Agency data element Definition - The MARS Agency data element

is used to establish all valid agency values. is used to establish all valid agency values. – STARS - 551 (Department for Vocational STARS - 551 (Department for Vocational

Rehab.)Rehab.)– MARS - 551 (Department for Vocational MARS - 551 (Department for Vocational

Rehab.)Rehab.)


Agency Group

Agency Type

Agency Category

Agency C lass

Agency


Agency ClassAgency Class– Inferred from AgencyInferred from Agency– Size - 4Size - 4– Definition - Used to summarize Agency into Definition - Used to summarize Agency into

its associated Cabinet for reporting its associated Cabinet for reporting purposes.purposes.

– STARS - 46 (Cabinet for Workforce STARS - 46 (Cabinet for Workforce Development)Development)

– MARS - 4600 (Cabinet for Workforce MARS - 4600 (Cabinet for Workforce Development)Development)


Agency Group

Agency Type

Agency Category

Agency C lass

Agency


Agency Category, Type, and Group used Agency Category, Type, and Group used for other statewide reporting needsfor other statewide reporting needs







Organization Level 12


Organization Level N




OrganizationOrganization– Coded on transactionCoded on transaction– Size - 4 charactersSize - 4 characters– Definition - The MARS Organization data Definition - The MARS Organization data

element is a breakdown of Agency. Up to 12 element is a breakdown of Agency. Up to 12 levels may be defined for Division, Branch, levels may be defined for Division, Branch, Section, Unit, etc. Level 1 will be used to Section, Unit, etc. Level 1 will be used to represent Commonwealth Department. represent Commonwealth Department.

– STARS - 758 (Division of Accounts)STARS - 758 (Division of Accounts)– MARS - 0758 (Division of Accounts)MARS - 0758 (Division of Accounts)







AppropriationProgram

Allotm ent Program

Program BudgetUnit


Appropriation UnitAppropriation Unit– Appropriation ProgramAppropriation Program

Coded on Appropriation transaction, inferred Coded on Appropriation transaction, inferred from Program Budget Unit on othersfrom Program Budget Unit on others

Size - 2 charactersSize - 2 characters Definition - The MARS Appropriation Definition - The MARS Appropriation

Program will be used to represent the Program will be used to represent the STARS Appropriation Account. STARS Appropriation Account.

STARS - A000STARS - A000 MARS - A0MARS - A0



Allotm ent Program

Program BudgetUnit


Appropriation UnitAppropriation Unit– Allotment ProgramAllotment Program

Coded on Allotment transaction, inferred Coded on Allotment transaction, inferred from Program Budget Unit on othersfrom Program Budget Unit on others

Size - 3 charactersSize - 3 characters Definition - The MARS Allotment Program Definition - The MARS Allotment Program

will be used to represent the STARS will be used to represent the STARS Allotment Account. Allotment Account.

STARS - AA00STARS - AA00 MARS - AA0MARS - AA0



Allotm ent Program

Program BudgetUnit


Appropriation UnitAppropriation Unit– Program Budget UnitProgram Budget Unit

Coded on transactionCoded on transaction Size - 4 charactersSize - 4 characters Definition - The MARS Program Budget Unit will Definition - The MARS Program Budget Unit will

be used to represent the STARS Posting Level be used to represent the STARS Posting Level Program. The Program Budget Unit will infer Program. The Program Budget Unit will infer the associated Appropriation Program, the associated Appropriation Program, Allotment Program and Cash Account.Allotment Program and Cash Account.

STARS - AAAASTARS - AAAA MARS - AAAAMARS - AAAA


AP/AL Program and Program Budget UnitAP/AL Program and Program Budget Unit– AP/AL Program and Program Budget Unit are all AP/AL Program and Program Budget Unit are all

relatedrelated– Relationship established through the Program Relationship established through the Program

Reference TableReference Table– The Program Reference Table allows inference of The Program Reference Table allows inference of

the AP Program from the AL Program, and the AP the AP Program from the AL Program, and the AP and AL Programs from the Program Budget Unitand AL Programs from the Program Budget Unit

– The Program Reference Table performs other The Program Reference Table performs other functions as well, such as establishing the Cash functions as well, such as establishing the Cash Account levelAccount level







Object G roup

Object Type

Object Category

Object C lass

Object


ObjectObject– Coded on transactionCoded on transaction– Size - 4 charactersSize - 4 characters– Definition - MARS provides an Object table Definition - MARS provides an Object table

to establish expenditure Object Codes. The to establish expenditure Object Codes. The MARS Object Code defines objects of MARS Object Code defines objects of expenditure that appear on spending expenditure that appear on spending transactions.transactions.

– STARS - E111 (Regular Salaries and Wages)STARS - E111 (Regular Salaries and Wages)– MARS - E111 (Regular Salaries and Wages)MARS - E111 (Regular Salaries and Wages)


Object G roup

Object Type

Object Category

Object C lass

Object


Object ClassObject Class– Inferred from ObjectInferred from Object– Size - 3 charactersSize - 3 characters– Definition - The MARS Object Class will be Definition - The MARS Object Class will be

used for the STARS Expenditure Sub-used for the STARS Expenditure Sub-Objects.Objects.

– STARS - E110 (Salaries and Wages)STARS - E110 (Salaries and Wages)– MARS - 110 (Salaries and Wages)MARS - 110 (Salaries and Wages)


Object G roup

Object Type

Object Category

Object C lass

Object


Object CategoryObject Category– Inferred from ObjectInferred from Object– Size - 2 charactersSize - 2 characters– Definition - The MARS Object Category will Definition - The MARS Object Category will

be used for the STARS Expenditure Major be used for the STARS Expenditure Major Objects (CAFR).Objects (CAFR).

– STARS - 10 (Personnel Cost)STARS - 10 (Personnel Cost)– MARS - 10 (Personnel Cost)MARS - 10 (Personnel Cost)


Object G roup

Object Type

Object Category

Object C lass

Object


Object TypeObject Type– Inferred from ObjectInferred from Object– Size - 2 charactersSize - 2 characters– Definition - The MARS Object Type will be Definition - The MARS Object Type will be

used for the STARS Expenditure Major used for the STARS Expenditure Major Object Group.Object Group.

– STARS - 1 (Personal Services)STARS - 1 (Personal Services)– MARS - 01 (Personal Services)MARS - 01 (Personal Services)


Object G roup

Object Type

Object Category

Object C lass

Object


Object Group used for other statewide Object Group used for other statewide reporting needsreporting needs







Revenue SourceGroup

Revenue SourceType

Revenue SourceCategory

Revenue SourceClass

Revenue Source


Revenue SourceRevenue Source– Coded on transactionCoded on transaction– Size - 4 charactersSize - 4 characters– Definition - MARS provides a Revenue Definition - MARS provides a Revenue

Source table to establish Revenue Source Source table to establish Revenue Source Codes. The MARS Revenue Source Code Codes. The MARS Revenue Source Code defines revenues that appear on revenue defines revenues that appear on revenue transactions.transactions.

– STARS - R101 (Sales and Use Tax - Regular)STARS - R101 (Sales and Use Tax - Regular)– MARS - R101 (Sales and Use Tax - Regular)MARS - R101 (Sales and Use Tax - Regular)


Revenue SourceGroup

Revenue SourceType


Revenue SourceClass

Revenue Source


Revenue Source ClassRevenue Source Class– Inferred from Revenue SourceInferred from Revenue Source– Size - 3 charactersSize - 3 characters– Definition - The MARS Revenue Source Class Definition - The MARS Revenue Source Class

will be used for the STARS Revenue Sub-will be used for the STARS Revenue Sub-Objects.Objects.

– STARS - 100 (Selected Sales and Gross STARS - 100 (Selected Sales and Gross Receipts Taxes)Receipts Taxes)

– MARS - 100 (Selected Sales and Gross MARS - 100 (Selected Sales and Gross Receipts Taxes)Receipts Taxes)


Revenue SourceGroup

Revenue SourceType


Revenue SourceClass

Revenue Source


Revenue Source CategoryRevenue Source Category– Inferred from Revenue SourceInferred from Revenue Source– Size - 2 charactersSize - 2 characters– Definition - The MARS Revenue Source Definition - The MARS Revenue Source

Category will be used for the STARS Category will be used for the STARS Revenue Major Objects (CAFR).Revenue Major Objects (CAFR).

– STARS - 50 (KY Lottery Corporation STARS - 50 (KY Lottery Corporation Receipts)Receipts)

– MARS - 50 (KY Lottery Corporation Receipts)MARS - 50 (KY Lottery Corporation Receipts)


Revenue SourceGroup

Revenue SourceType


Revenue SourceClass

Revenue Source


Revenue Source Type and Group used Revenue Source Type and Group used for other statewide reporting needsfor other statewide reporting needs







Balance SheetAccount G roup

Balance SheetAccount Type

Balance SheetAccount Category

Balance SheetAccount C lass



Balance Sheet AccountBalance Sheet Account– Coded on transactionCoded on transaction– Size - 4 charactersSize - 4 characters– Definition - The MARS Balance Sheet Definition - The MARS Balance Sheet

Account Code would be used to represent Account Code would be used to represent the STARS Subsidiary Account.the STARS Subsidiary Account.

– STARS - 4921 (Advance to Sheriff - STARS - 4921 (Advance to Sheriff - Woodford Co.)Woodford Co.)

– MARS - 2110 (Advance to Sheriff - Woodford MARS - 2110 (Advance to Sheriff - Woodford Co.)Co.)








Balance Sheet Account ClassBalance Sheet Account Class– Inferred from Balance Sheet AccountInferred from Balance Sheet Account– Size - 3 charactersSize - 3 characters– Definition - The MARS Balance Sheet Account Definition - The MARS Balance Sheet Account

Class is a hierarchy of the MARS Balance Sheet Class is a hierarchy of the MARS Balance Sheet Account Code. The MARS Balance Sheet Account Code. The MARS Balance Sheet Account Class would be used to represent the Account Class would be used to represent the STARS General Ledger Accounts.STARS General Ledger Accounts.

– STARS - 0598 (Advances to Sheriffs)STARS - 0598 (Advances to Sheriffs)– MARS - 112 (Advances to Sheriffs)MARS - 112 (Advances to Sheriffs)








Balance Sheet Account Category, Type, Balance Sheet Account Category, Type, and Group used for other statewide and Group used for other statewide reporting needsreporting needs

MARS Agency Chart of AccountsMARS Agency Chart of Accounts

Stuart Weatherford (Accounts)Stuart Weatherford (Accounts)

MARS Agency Chart of Accounts MARS Agency Chart of Accounts ElementsElements

TopicsTopics– MARS Chart of Accounts structureMARS Chart of Accounts structure

Agency Elements:Agency Elements:


ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


MARS Agency Chart of Accounts validated MARS Agency Chart of Accounts validated against 5 of the more significant users of against 5 of the more significant users of STARS Agency ElementsSTARS Agency Elements– Justice CabinetJustice Cabinet– Tourism Development CabinetTourism Development Cabinet– Cabinet for Workforce DevelopmentCabinet for Workforce Development– Natural Resources CabinetNatural Resources Cabinet– Transportation CabinetTransportation Cabinet


STARS Agency ElementsSTARS Agency Elements

MARS Agency ElementsMARS Agency Elements


ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase

Location Function AgencyObject

Budget UnitNum ber

Term ini

Grant Sub-Grant D ivision Branch Section Unit


Common use of elements is an objective Common use of elements is an objective in MARSin MARS

Considerations when defining the MARS Considerations when defining the MARS Agency elements:Agency elements:– Budgetary controlBudgetary control– Cost reportingCost reporting– Project reportingProject reporting– Federal reporting requirementsFederal reporting requirements– Usage by transaction typeUsage by transaction type


Detailed examples provided for Detailed examples provided for guidanceguidance


Agency Elements - Sub-Object ExampleAgency Elements - Sub-Object Example– Cabinet for Workforce DevelopmentCabinet for Workforce Development– STARS Agency Object to MARS Sub-ObjectSTARS Agency Object to MARS Sub-Object– The last four characters of the STARS The last four characters of the STARS

Agency Object are used to track educational Agency Object are used to track educational programs such as Electronics versus programs such as Electronics versus BiomedicalBiomedical


Agency Elements - Sub-Object Hierarchy Agency Elements - Sub-Object Hierarchy ExampleExample– Cabinet for Workforce DevelopmentCabinet for Workforce Development– STARS Agency Object to MARS Sub-Object STARS Agency Object to MARS Sub-Object

HierarchyHierarchy– The first two characters of the STARS The first two characters of the STARS

Agency Object are used to categorize Agency Object are used to categorize programs recorded in the MARS Sub-Object. programs recorded in the MARS Sub-Object. An example of this would be ‘Industrial An example of this would be ‘Industrial Education’ for a Sub-Object of ‘Carpentry’.Education’ for a Sub-Object of ‘Carpentry’.


Sub-Object Hierarchy ExampleSub-Object Hierarchy Example

3601

1700 - IndustrialEducation

17

Industrial Education

Carpentry

3601 - CabinetM aking

Class (inferred)

Code (entered)3302 - Tailoring


Agency Elements - ExampleAgency Elements - Example– Cabinet for Workforce DevelopmentCabinet for Workforce Development– STARS Location to MARS Function CodeSTARS Location to MARS Function Code– Used to record facilities, such as ‘Fivco Boyd Used to record facilities, such as ‘Fivco Boyd

Co Ashland Comm College’.Co Ashland Comm College’.


Agency Elements - ExampleAgency Elements - Example– Cabinet for Workforce DevelopmentCabinet for Workforce Development– STARS Location to MARS Function ClassSTARS Location to MARS Function Class– Used to record county as it relates to Used to record county as it relates to

facilities recorded in the MARS Function.facilities recorded in the MARS Function.


Function ExampleFunction Example

Fivco Boyd Co AshlandCom m College

Boyd CountyFunction C lass

Function


Agency Elements - ExampleAgency Elements - Example– Justice CabinetJustice Cabinet– STARS Function to MARS ActivitySTARS Function to MARS Activity– Used to record activities, such as hog Used to record activities, such as hog

operations (HOG), or cattle operations operations (HOG), or cattle operations (CAT).(CAT).


MARS Chart of Accounts structureMARS Chart of Accounts structure Agency Elements:Agency Elements:


ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


ActivityActivity– Size - 4 charactersSize - 4 characters– Keyed by AgencyKeyed by Agency– Hierarchical (Class, Category, Type, Group)Hierarchical (Class, Category, Type, Group)– Available on Expenditure transactions and Available on Expenditure transactions and

Mgmt. BudgetMgmt. Budget– Used in conjunction with object to Used in conjunction with object to

determine reimbursement billing statusdetermine reimbursement billing status




ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


FunctionFunction– Size - 4 charactersSize - 4 characters– Keyed by Agency (except Class)Keyed by Agency (except Class)– Hierarchical (Class, Category, Type, Group)Hierarchical (Class, Category, Type, Group)– Available on Expenditure transactions and Mgmt. Available on Expenditure transactions and Mgmt.

BudgetBudget– Recommended use is for “location” information Recommended use is for “location” information

that can be associated with a county (i.e., that can be associated with a county (i.e., buildings, sites, etc.)buildings, sites, etc.)

– Function Class is a statewide element used to Function Class is a statewide element used to represent countyrepresent county




ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


OrganizationOrganization– Size - 4 charactersSize - 4 characters– Keyed by AgencyKeyed by Agency– 12 level hierarchy12 level hierarchy

1st level reserved for Department1st level reserved for Department Additional lower levels may be used for Additional lower levels may be used for

Agency Organization structure (Division, Agency Organization structure (Division, Branch, Section, Unit) or for use as Branch, Section, Unit) or for use as neededneeded


Organization (continued)Organization (continued)– Available on Expenditure and Revenue Available on Expenditure and Revenue

transactions, and Mgmt. Budgettransactions, and Mgmt. Budget– Should relate hierarchically to Department Should relate hierarchically to Department

(or next highest level organization structure (or next highest level organization structure used)used)

Code must be unique across Organization Code must be unique across Organization structure within a given Agencystructure within a given Agency

– Example - Department of Parks may define Example - Department of Parks may define a lower level Organizations as cost centers.a lower level Organizations as cost centers.




ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


Sub-OrganizationSub-Organization– Size - 2 charactersSize - 2 characters– Keyed by AgencyKeyed by Agency– Available on Expenditure and Revenue Available on Expenditure and Revenue

transactions, and Mgmt. Budgettransactions, and Mgmt. Budget




ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


Sub-ObjectSub-Object– Size - 2 charactersSize - 2 characters– Keyed by AgencyKeyed by Agency– Hierarchical (Class, Category, Type, Group)Hierarchical (Class, Category, Type, Group)– Available on Expenditure transactions and Available on Expenditure transactions and

Mgmt. BudgetMgmt. Budget




ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


Sub-Revenue SourceSub-Revenue Source– Size - 2 charactersSize - 2 characters– Keyed by AgencyKeyed by Agency– Available on Revenue transactions and Available on Revenue transactions and





ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


Reporting CategoryReporting Category– Size - 4 charactersSize - 4 characters– Keyed by AgencyKeyed by Agency– Non-hierarchicalNon-hierarchical– Available on Expenditure transactions and Available on Expenditure transactions and





ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


TerminiTermini– Size - 7 charactersSize - 7 characters– Keyed by AgencyKeyed by Agency– Used to record and validate Termini for Used to record and validate Termini for

Transportation CabinetTransportation Cabinet– Free-form text for all other agenciesFree-form text for all other agencies– Available on Expenditure transactions and Available on Expenditure transactions and





ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


Project

Sub-Project

Phase


ProjectProject– Size - 5 charactersSize - 5 characters– Keyed by AgencyKeyed by Agency– Used for:Used for:

Capital ProjectsCapital Projects GrantsGrants Highway ProjectsHighway Projects

– Hierarchical Hierarchical Able to establish statewide project Able to establish statewide project

identifieridentifier




ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


Project

Sub-Project

Phase


Sub-ProjectSub-Project– Size - 2 charactersSize - 2 characters– Keyed by ProjectKeyed by Project– Hierarchical below ProjectHierarchical below Project– Ability to infer background information from Ability to infer background information from

Project/Sub-Project setupProject/Sub-Project setup




ReportingCategory

Term ini

Sub-Organization

ProjectSub-

ProjectPhase


Project

Sub-Project

Phase


PhasePhase– Size - 1 charactersSize - 1 characters– Keyed by ProjectKeyed by Project– Hierarchical below ProjectHierarchical below Project


Agency Elements - TipsAgency Elements - Tips– ““Smart Codes” may be good candidates for Smart Codes” may be good candidates for

use in a hierarchyuse in a hierarchy Workforce Development Cabinet STARS Workforce Development Cabinet STARS

Agency Object Code - 173601Agency Object Code - 173601– The first two characters are used to categorize The first two characters are used to categorize

programs (17 - Industrial Education) and can be programs (17 - Industrial Education) and can be inferred through a MARS Class (e.g., Activity)inferred through a MARS Class (e.g., Activity)

– The last four characters are used to track The last four characters are used to track educational programs (3601 - Carpentry) and educational programs (3601 - Carpentry) and can be entered into a MARS code (e.g., Activity)can be entered into a MARS code (e.g., Activity)


““Smart Codes” ExampleSmart Codes” Example

3601

1700 - IndustrialEducation

17

Industrial Education

Carpentry

3601 - CabinetM aking

Class (inferred)

Code (entered)3302 - Tailoring


Agency Elements - Tips (continued)Agency Elements - Tips (continued)– Data within STARS elements must be Data within STARS elements must be

analyzed to determine if different data analyzed to determine if different data definitions are stored within the same definitions are stored within the same elementelement

If an element contains multiple definitions, If an element contains multiple definitions, it should be split into multiple MARS it should be split into multiple MARS elementselements

Example - STARS FunctionExample - STARS Function– Value 1200 - Central Kentucky RegionValue 1200 - Central Kentucky Region– Value 1300 - Parent/Teacher ConferencingValue 1300 - Parent/Teacher Conferencing


Agency Elements - Tips (continued)Agency Elements - Tips (continued) Data definitions should be separated in Data definitions should be separated in

order to:order to:– Streamline codesStreamline codes– Allow easy identification and relationships Allow easy identification and relationships

between coding elements and data typesbetween coding elements and data types– Use more standard MARS reporting and Use more standard MARS reporting and

inquiry techniquesinquiry techniques– Facilitate reporting on these codesFacilitate reporting on these codes

MARS Budgetary ControlMARS Budgetary Control

John Hicks (Governor’s Office for John Hicks (Governor’s Office for Policy and Management)Policy and Management)

Budgetary Control - Budgetary Control - AppropriationsAppropriations

Control by BFY/Fund/Agency/AP Control by BFY/Fund/Agency/AP Program combinationProgram combination

Spending control for “on-budget” Spending control for “on-budget” accounts onlyaccounts only

Presence control for “off-budget” Presence control for “off-budget” accountsaccounts– Ensures proper accounting strip, but does Ensures proper accounting strip, but does

not enforce spending limitsnot enforce spending limits

Budgetary Control - Budgetary Control - AppropriationsAppropriations

Appropriation ObjectAppropriation Object– Appropriation Object stored with each Appropriation Object stored with each

appropriationappropriation– No budgetary control by Appropriation No budgetary control by Appropriation

ObjectObject

Budgetary Control - AllotmentsBudgetary Control - Allotments

Control by:Control by:– FundFund– AgencyAgency– Appropriation ProgramAppropriation Program– Allotment ProgramAllotment Program– Allotment PeriodAllotment Period


Control by (continued):Control by (continued):– Object Type (Major Object Group - 3)/Object Object Type (Major Object Group - 3)/Object

Class (Sub-Object - E701)Class (Sub-Object - E701) Indicated on the parent appropriation as Indicated on the parent appropriation as

control by Major Object Group, Sub-Object, or control by Major Object Group, Sub-Object, or Neither.Neither.

Major Object Group used on most General Major Object Group used on most General Fund allotmentsFund allotments

Sub-Object used on all Capital Projects Fund Sub-Object used on all Capital Projects Fund allotmentsallotments

““Neither” is used on all other fund allotmentsNeither” is used on all other fund allotments


Spending control for “on-budget” accounts Spending control for “on-budget” accounts onlyonly

Presence control for “off-budget” accountsPresence control for “off-budget” accounts– Ensures proper accounting strip, but does not Ensures proper accounting strip, but does not

enforce spending limitsenforce spending limits Allotment Object stored with each allotmentAllotment Object stored with each allotment No budgetary control by Allotment Object No budgetary control by Allotment Object

(e.g., B101 Regular Allotment for Personal (e.g., B101 Regular Allotment for Personal Services)Services)

MARS Cash ControlMARS Cash Control

John Hicks (Governor’s Office for Policy John Hicks (Governor’s Office for Policy and Management)and Management)

Cash ControlCash Control

Cash is always controlled by Fiscal Year and Cash is always controlled by Fiscal Year and one of the following levels:one of the following levels:– Level 1: FundLevel 1: Fund– Level 2: Fund/AgencyLevel 2: Fund/Agency– Level 3: Fund/Agency/Appropriation ProgramLevel 3: Fund/Agency/Appropriation Program– Level 4: Fund/Agency/Appropriation Level 4: Fund/Agency/Appropriation

Program/Allotment Program Program/Allotment Program– Level 5: Fund/Agency/Appropriation Level 5: Fund/Agency/Appropriation

Program/Allotment Program/Allotment Program/Program Program/Program Budget Unit Budget Unit

Cash ControlCash Control

Ability to override cash control where Ability to override cash control where specified by approved usersspecified by approved users

Cash control and the related reduction Cash control and the related reduction of available cash at the time of of available cash at the time of disbursement in MARSdisbursement in MARS

ConclusionConclusion

Ed Ross, ControllerEd Ross, Controller


Fulfilled the objectives of providing an Fulfilled the objectives of providing an overview of:overview of:– MARS Chart of Accounts FundamentalsMARS Chart of Accounts Fundamentals– Statewide Chart of AccountsStatewide Chart of Accounts– Agency Chart of AccountsAgency Chart of Accounts– Budgetary Control ModelBudgetary Control Model– Cash Control ModelCash Control Model


Next steps:Next steps:– Obtain the Chart of Accounts Foundation Obtain the Chart of Accounts Foundation

Concept Design document from:Concept Design document from: http://www.state.ky.us/agencies/adm/mars/mars.htmhttp://www.state.ky.us/agencies/adm/mars/mars.htm

– Complete work on gathering information about Complete work on gathering information about the current agency code usagethe current agency code usage

Complete Agency Implementation Notebook Complete Agency Implementation Notebook Form F6.5.8aForm F6.5.8a

Complete Agency Implementation Notebook Complete Agency Implementation Notebook Checklist ID8 on Agency SUA Checklist Checklist ID8 on Agency SUA Checklist C6.5.1aC6.5.1a


Next steps (continued):Next steps (continued):– Participate in Agency Chart of Accounts Participate in Agency Chart of Accounts

working sessions with your AIL’s, ALM’s and working sessions with your AIL’s, ALM’s and FAS’s to define the MARS Chart of Accounts FAS’s to define the MARS Chart of Accounts for your agencyfor your agency

To determine your agency AIL, visit:To determine your agency AIL, visit:– http://www.state.ky.us/agencies/adm/mars/http://www.state.ky.us/agencies/adm/mars/

agencyteam.pdfagencyteam.pdf An Agency Implementation Notebook Task An Agency Implementation Notebook Task

and Form will be provided in Release 2 that and Form will be provided in Release 2 that corresponds to this itemcorresponds to this item


Next steps (continued):Next steps (continued):– Determine the impact of the MARS Chart of Determine the impact of the MARS Chart of

Accounts on the agency interface and Accounts on the agency interface and conversionconversion

Documents

MARS Chart of Accounts Overview November 24, 1998