Michigan State University
Controller's Office

305 Administration Bldg
East Lansing, MI 48824
517 355-5020

SECTION 5: Account Numbers and Account Requests

Last updated: February 2008
  1. Purpose of Procedure
  2. Components of University Account Numbers
  3. Account Requests
  4. Exhibits/Forms

I. Purpose of Procedure

  1. To briefly explain the components of University account numbers.
  2. To set forth procedures to be followed when requesting the establishment of a new account or amending an existing account.

II. Components of University Account Numbers

University account numbers have the following format: AA-BBBC. The components of an account number are as follows:

AA - The first two digits indicate the type of account.

11 = General fund accounts

21 = Auxiliary revolving, designated revolving and clearing and deposit accounts

31 = Agency, gift and grant, fellowship, scholarship, student aid, student note and student loan accounts

41 = Plant fund accounts

51 = General ledger accounts

61 = Sponsored research accounts

71 = Sponsored research, Michigan Agricultural Experiment Station and MSU Extension accounts

81 = Endowment principal and income accounts

91 = General fund Research Excellence Fund (REF) project accounts.

BBB - For general fund accounts (excluding the 91-series), these three digits represent the departmental account number. For all other accounts, these three digits have no special significance.

C - For general fund accounts (excluding the 91-series), this digit has four designations:

1 = Salary budget and expenditures

2 = Labor budget and expenditures

3 = Supplies, services and equipment budget and expenditures

5 = Special budgets (Contingency and Special Purpose accounts)

For all other accounts, this digit has no special significance.

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III. Account Requests

  1. Revolving Accounts
    1. Requests to establish new accounts or to amend existing accounts must be submitted to the Controller for approval on a completed "Revolving Account Request Form" (see exhibit 5-A).  "Revolving Account Policies" (see exhibit 5-E) lists criteria used in establishing revolving accounts and reversion limits.  Requests should be accompanied by a transmittal letter discussing the nature of the proposed new account or amendment to existing account.  Please include the name and phone number of a contact person.
    2. When completing the form, certain items deserve special attention as follows:
      1. For revolving accounts, the indicated sources of income (item 5), and types of expenditures (item 7) must be related. Only those expenditures which are incurred to generate the indicated sources of income can be charged to the account.
      2. Item 14 must be completed on both new and amended account requests. Accounts are not permitted to accumulate balances in excess of working capital needs.
      3. The request must be signed by a Dean or Vice President.
      4. All items on the reverse side will be completed by the Controller's Office or Internal Audit.
    3. Internal Audit regularly audits accounts to determine that operations are in conformance with the information indicated on approved account request forms.
    4. Internal Service Billing Rates - Revolving accounts which render services to Contract & Grant Accounts cannot include any profit or depreciation allocation (which is calculated by C & G separately).  "Guidelines for Development and Documentation of Internal Service Billing Rate(s)" (see exhibit 5-G) details these procedures.
  2. Clearing and Deposit Accounts - These accounts may be established when deposits must be held for disbursements to others (e.g., sales tax collections to be remitted to the State of Michigan). Requests to establish new accounts or to amend existing accounts must be submitted to the Controller for approval on a completed form "Clearing and Deposit Account Request Form" (see exhibit 5-B).  Requests should be accompanied by a transmittal letter discussing the nature of the proposed new account or amendment to existing account.  Please include the name and phone number of a contact person.
  3. General Fund account requests must be approved by the Office of Planning and Budgets.
  4. Trust account requests must be arranged through the Office of Investments and Trusts, telephone 355-5018.
  5. Gift and Grant, Fellowship and Sponsored Research Accounts
    1. Refer to Section 23, concerning Fellowships; refer to Section 315, concerning Gift and Grant or Sponsored Research accounts.
    2. Any further questions concerning Fellowship accounts should be directed to the Office of Fees and Scholarships, 146 Administration Building; questions concerning Gift and Grant or Sponsored Research accounts should be directed to the Office of Contract and Grant Administration, 301 Administration Building.
  6. Scholarship accounts must be arranged through the Office of Financial Aid.
  7. Agency Accounts - Student Organizations
    1. Use "Application for Agency Account - Student Organization" (see exhibit 5-C). Items 1-8 must be filled in. This form is also available in the Accounting Department, 360 Administration Bldg., telephone 355-5000, and the Student Activities Office, Office of the Vice President for Student Affairs and Services, 101 Student Services Bldg, telephone 355-8286.
    2. The form must be submitted to the Student Activities Office for verification of organization registration and approval of request.
    3. After approval from the Student Activities Office, the form must be submitted in person to the Accounting Department, 360 Administration Building, for approval.
  8. Agency Accounts - Non-Student Organization
    1. Use "Agency Account - Non-Student Organization" (see exhibit 5-D). The date, items 1-5, administrative responsibility and the account name must be filled in and submitted to the Dean or Vice President for approval.
    2. After approval by the Dean or Vice President, this form must be submitted to the Controller's Office, 305 Administration Building, for approval.
  9. Agency Accounts - Exemption from State Sales Tax
    1. Agency accounts do not automatically qualify for exemption from State of Michigan sales tax.
    2. Organizations requesting a tax exempt account number must present with their account application a letter from the State of Michigan, Treasury Department, indicating their tax exempt status. If exemption from State of Michigan sales tax is properly documented, the account will be established in the 31-4100 through 31-4199 range of accounts.
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IV. Exhibits/Forms

Exhibit 5-A. Revolving Account Request Form

Exhibit 5-B. Clearing and Deposit Account Request Form

Exhibit 5-C. Agency Account - Student Organization Application Form

Exhibit 5-C (2).  Agency Account - Student Organization Policies and Guidelines

Exhibit 5-C (3).  Agency Account - Student Organization Signature Authorization Card

Exhibit 5-D. Agency Account - Non-Student Organization Application Form

Exhibit 5-D (2).  Agency Account - Non-Student Organization Policies and Guidelines

Exhibit 5-D (3).  Agency Account - Non-Student Organization Signature Authorization Card

Exhibit 5-E. Revolving Account Policies

Exhibit 5-G. Guidelines for Development and Documentation of Internal Service Billing Rate(s)

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