The Controller's Office develops systems, policies and procedures for the efficient and effective management of the College's financial resources and ensures compliance with Generally Accepted Accounting Principles (GAAP). We provide accurate, timely, and useful information and analysis to assist departments in achieving objectives that support the College's goals. We are dedicated to providing excellent customer service to all members of the College community. 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 account numbers are broken up into six segments:
These segments are used to report on various levels of operation at the College. The following categories are currently in use:
B - Babson College
C - The Boston Consortium
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, or 168 Athletics). The creation of a new Management Center is rare because this segment typically represents a department of the College.
- Activity – A program or process undertaken to achieve the goals of the College (e.g., 0221 Financial Services, 1220 Men’s Basketball, or 2194 Regional Programs). The Activity code is used to track the various activities of a particular Management Center. New Activity codes can be created if there is a business need.
0 - Unrestricted
3 - Temporarily Restricted
6 - Permanently Restricted
Restriction Codes 3 and 6 relate to accounting rules for donations received by the Advancement Office. For all other items, this code is 0.
- Object Code –Object Codes describe types of transactions recorded within a particular Management Center and Activity (e.g., 5101 FT Faculty Compensation, 5410 Temporary Help, or 6101 Office Supplies/Equipment). Object Code “names” are pre-set in the system, and managers can select from the list of available codes for use in their Management Center.
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:
- Review monthly account activity reports for accuracy
- Verify that all account activity is appropriately classified (e.g., office supplies charged to the appropriate object code)
- Correct improper charges by completing and submitting the appropriate form
- Ensure that restricted gift funds are spent in accordance with donor wishes
- Ensure that only authorized users access accounting records
- 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 department if needed.
After reviewing monthly account status reports in AccountView (the online chart of accounts for the general ledger) department administrators can transfer posted charges to a different activity or object code. The most common expense transfers result from Procurement card (P-Card) purchases. We request that all charges be transferred, via the Journal Entry Form, to the object code that best describes the transaction (e.g., office supplies should be posted to the Office Supplies/Equipment object code, postage should be charged to the Mail/Postage object code, etc.) The re-classification of an expense or transfer of funds for an expense can only be made after an item is paid for and not based upon an open purchase order.
AccountView Authorization forms should be utilized when an individual needs to be added or removed from accessing financial information for that department.
Cash receipts and credit card transactions (MasterCard and Visa only) should be forwarded with a completed Cash Receipts Voucher to Financial Services. Cash and checks should not be held over a weekend by any department. Foreign currency is not accepted.
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.
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 via AccountView.
The month remains open for the next 5 business days. During this time, the accounting staff continues preparing account reconciliations. After the 10th day, the month end close is complete and no further general ledger adjustments can be made.
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 is sent to faculty and staff explaining the specifics for the year-end close in mid-to-late May.