Key PRISM Attributes

The Subcode List provides the four-digit codes used to record financial transactions in their “natural classification” and serves as the University’s “Chart of Accounts”. The University’s Account Structure for the ORACLE general ledger can aid in the understanding and accuracy of the accounting for University expenses.

The Unallowable Subcode List provides the four-digit subcodes used to record financial transactions that are not recoverable on and must not be charged to federal or other projects on either a direct or indirect costing basis. Costs can be unallowable because they are expressly unallowable per federal regulation, mutually agreed to be unallowable, unreasonable, or unallocable. See the University’s financial guideline on Allowability of Costs for further explanation.

Total direct costs are the total costs that can be directly identified to a sponsored activity or a cost center. Modified Total Direct Costs (MTDC) are the total costs that can be directly identified to a sponsored activity less certain categories of direct costs that are excluded for purposes of application of indirect or overhead costs. The University is required to exclude certain categories of costs, by fund accounting entity, for purposes of overhead application to be compliant with Office of Management and Budget (OMB) Uniform Guidance. The MTDC Exclusions for the current year are listed below. Historical MTDC Exclusions for prior fiscal years are also available upon request.

• Entity 03 MTDC Subcode Exclusions List - Issued annually as part of the annual budget target letter
• Entity 05 MTDC Subcode Exclusions List - Issued annually as part of the notification of approved Sponsored Program Facilities and Administrative Cost Rates

When an account is created in PRISM, it must be assigned a Function Code. The Function Code is a combination of two previously distinct function codes; the NACUBO Purpose Code and the A-21 Code. The Function Code is a three digit code where the first digit identifies the NACUBO function and the last two digits identify the A-21 function. There are 10 NACUBO functions and 15 A-21 functions which have been combined to form only 26 valid combined function codes.

Although the functions listed for both reporting attributes bear some resemblance, there is a distinct difference in the purpose they serve.  The NACUBO functions are expense classifications established and defined by the National Association of College and University Business Officers (NACUBO) to improve comparability of data among institutions of higher education and are used to prepare a footnote to the University's Audited Financial Statements, titled "Functional Expenses.”

In contrast, the A-21 functions are expense categories established and described in OMB Uniform Guidance (formerly Circular A-21) that provide a uniform method of grouping costs into various direct and indirect cost pools for the primary purpose of calculating indirect cost reimbursement rates on sponsored projects.  These rates are submitted to the Federal government for approval in the University's Facilities and Administrative (F&A) Cost Rate Proposal, which is a cost study required by OMB Uniform Guidance.

The Function Code List and related application to accounts facilitates the internal and external financial reporting and indirect cost determination of the University.