The Controller's Office develops systems, policies and procedures for the management of the College's financial resources and ensures compliance with Generally Accepted Accounting Principles (GAAP).
We provide information and analysis to assist departments in achieving objectives that support the College's goals. Specific responsibilities include, but are not limited to, policy and procedure review, transaction processing, treasury and investment management, and financial reporting—including the preparation of the College's audited financial statements.
Babson College Financial Account Structure
At Babson College, an “account” is broken up into five segments:
Management Center: 000
Object Code: 0000
These segments are used to report on various levels of operation at the College. The following categories are currently in use:
1 - Educational Services
2 - Institutional Support
6 - Development & Fundraising
7 - Investment Management
8 - Plant Management
- Management Center: A responsibility center charged with implementing certain activities of the College (e.g. 000 Business Administration; 112 BEE Programs, 135 Finance; 168 Athletics, etc.). The creation of a new Management Center is rare because this segment typically represents a department of the College. Please contact our office if a new Management Center segment is needed.
- Activity: A program, project, or process undertaken to achieve the goals of the College (e.g. 0221 Financial Services; 1220 Men’s Basketball; 2194 Regional Programs; etc.). Because the Activity code is used to track the various activities of a particular Management Center, there are numerous occasions when transactions related to a new activity may need to be tracked. Please contact our office if a new Activity segment is needed.
- Restriction: Restriction Codes 3 and 6 relate to accounting rules for donations received by the Alumni & Development Office. For all other items, this code is 0.
3- Temporarily Restricted
6- Permanently Restricted
- Object Code: The Object Code segment is used to describe types of transactions recorded within a particular combination of Management Center and Activity (e.g. 1106 Payroll Cash, 5101 FT Faculty Compensation, 5410 Temporary Help, 6101 Office Supplies/Equipment, etc.). To add additional Object Codes to an existing department, send an e-mail request to one of the members of our department.
Each account in the general ledger has been assigned a responsible person—usually a department chair or administrator. It is the responsibility of that individual to:
- Ensure that monthly account activity reports are reviewed to verify that all entries are accurate and appropriate
- Verify that all account activity is appropriately classified (i.e. office supplies are charged to the appropriate object code)
- Take appropriate action to correct any improper charges by completing the appropriate form and submitting it to our office
- Ensure, when applicable, any restricted gift funds are spent in accordance with donor wishes
- Ensure that employee access to accounting records for the department are accurate
- Ensure charges made to government and other restricted sponsoring agency accounts are appropriate and allowable under the sponsor's regulations.
Budget Managers can request a Chart of Accounts Code Listing for their respective departments by contacting a member of our office. The Chart of Accounts lists all the Business/Management Center/Activity/Object Codes for their Management Center(s).
After reviewing monthly account status reports in Breago, department managers and/or administrators may need to transfer posted charges to a different activity or object code. The most common expense transfers result from Procurement card purchases. We request that all charges be transferred, via the Expense Transfer/Journal Entry Form, to the object code that best describes the transaction (i.e. office supplies should be posted to the Office Supplies/Equipment object code, postage should be charged to the Mail/Postage object code, etc.). Please note that all applicable areas of the form must be completed and appropriate signatures must be noted for the form to be processed. Adequate supporting documentation should accompany the form sent to our department for processing. In addition, the reclassification of an expense or transfer of funds for an expense may only be made after an item is paid for and not based upon an open purchase order.
Cash Receipts Vouchers
Non tuition/room/board cash receipts, along with a completed Cash Receipts Voucher , should be forwarded to our department for deposit in the bank and recording in the College's general ledger. Departments should verify that all information on the voucher is correct and that amounts noted on the form agree to cash, checks and credit card information accompanying the voucher. As a general rule, cash and checks should not be held over a weekend by any department and foreign currency should not be accepted. Credit card transactions should also be reported to our department using one of these forms. Currently, the College only accepts MasterCard and Visa.
A Petty Cash Reconciliation Form is utilized when petty cash funds need to be replenished. The departments on campus who have been authorized to have a petty cash fund should complete this form at least semi-annually.
Month-End Closing Process
The General Accounting Office conducts a two-step monthly closing process. Within the first 5 business days of the subsequent month, all automatic interfaces are submitted, edited, and posted to the general ledger. At the same time, standard monthly journal entries, adjusting entries, and expense transfer requests received from department managers are reviewed and posted. On the 6th business day, the financial records of the closing month are archived, meaning that the information is available for departmental review through Breago, the College's online financial reporting tool. The month remains open for the next 5 business days. During this time, the accounting staff continues preparing account reconciliations. If adjusting or reconciling items are necessary to complete the reconciliation, these will be posted during this time. After the 10th day of the subsequent month, the month end close is complete and no further general ledger adjustments can be made.
Year-End Closing Process
Babson's fiscal year end is June 30th. Year-end procedures are generally the same as monthly closing procedures; however, there are a few key differences. An in-depth memorandum will be sent to all faculty and staff explaining the specifics for the year-end close sometime in mid-to-late May.