How are a FOP and a FOAP different?

Category:  Finance

Question:  How are a FOP and a FOAP different?
 
Answer:
A FOP refers to the three codes (Fund, Organization and Program) that identify a budget.  The three codes are combined to become one identifier for the budget:
  • F - Fund identifies the cash (like a checking account) that the budget operates out of, and is coded to separate various providers (state, donors, research, etc) and their guidelines for revenues and expenditures.
  • O - Organization is the code for the department or business activity and identifies the budget financial manager with signature authority for the Organization.
  • P - Program is a classification to identify how the budget supports the mission statement (instruction, research, public service, support, etc)
When transactions add to (revenue) or deduct from (expense) the budget, they must include an A - Account code that identifies the transaction as well as the budget being updated.  Thus a transaction requires the FOP codes and an A code, and the order of entry on the transaction is FOAP.
 
 
To learn more:  Attend the Financial Management 101: Introduction to the FOAP Codes training class to learn more about the financial terms and business practices of Texas Tech.  This class is a pre-requisite for Budget, Procurement, and Cognos Reporting classes that assist you in the performance of your job duties.
 
Submitted by:  Byron Anderson
Posted by: - Tue, Jun 17, 2008 at 11:48 AM. This article has been viewed 1290 times.
Online URL: http://kainz.ttu.edu/phpkbv8/article.php?id=67

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