How do I create a template?

Select Add/Edit Supplier Invoice Templates found under the Data Entry tab in Accounts Payable. The system will assume that it’s the first template being created, and will default to new. Future templates will require a click on the “new” button (or File then New). Enter a template name, and then select a supplier. Use “100” as a basis to distribute monies against pre-defined g/l accounts, i.e. 30 16204.1 60 16204.2 10 16203.3 The purpose of the distribution is to create the calculation used by the system to distribute the total amount of the respective invoice. Once the template is created, go to Add/Edit Supplier Invoices and click on Load a Template (located on the toolbar – picture of a yellow cross with a window to the right of it). Select the template name and enter the amount of the respective invoice. Enhanced will use the “distribution” created in the template to distribute the total of the invoice to the various g/l account numbers. The template can be used as often as desired. Note: a/p templates don’t appear on the Operating Statement until they are posted.

Kentucky Fund Accounting | Enhanced Business Systems

Fund accounting is the fundamental financial management system used by government entities and non-profit organizations. Unlike corporate accounting, which is designed to measure profitability and maximize shareholder value, fund accounting focuses entirely on accountability, stewardship, and legal compliance.

Instead of treating a government’s finances as one massive, undivided pool of money, fund accounting divides resources into multiple, independent “funds.” Each fund operates as a self-balancing set of accounts with its own assets, liabilities, revenues, and expenditures. This system ensures that money is spent exactly how the law dictates and prevents specific revenue streams from being commingled or diverted.

Here is a detailed look at how fund accounting works and why it is absolutely vital for a state like Kentucky.

The Core Principles of Fund Accounting

In government finance, money often comes with strict legal strings attached. When taxpayers pay a specific toll, or when the federal government provides a grant for public health, that money cannot legally be used to throw a state-sponsored banquet or pave a random driveway. Fund accounting categorizes money into distinct buckets:

Governmental Funds: Used for standard public services (e.g., public safety, education, social services).
Proprietary Funds: Used for state-run operations that act like businesses and charge fees for services (e.g., public lotteries or municipal utilities).
Fiduciary Funds: Used to account for assets held by the state in a trustee capacity for others (e.g., public employee pension systems).

Why Fund Accounting is Crucial for Kentucky

In Kentucky, the Office of Statewide Accounting Services (under the Finance and Administration Cabinet) is responsible for maintaining the centralized accounting system. For a state that manages tens of billions of dollars annually, fund accounting is essential for several key reasons:

1. Legal Compliance and Restriction of Funds Kentucky’s legislature passes a biennial budget that dictates exactly how taxpayer dollars must be spent. Fund accounting physically and administratively isolates resources to ensure compliance. For example, Kentucky receives millions of dollars annually from the historic Tobacco Master Settlement Agreement. Because of fund accounting, the state can transparently prove that this specific money is channeled into restricted programs, such as agricultural grants, healthcare improvements, and Dolly Parton’s Imagination Library for childhood literacy, rather than being swallowed by general administrative costs.

2. Tracking the General Fund vs. The Road Fund One of the most prominent ways fund accounting impacts Kentucky is the strict separation of its two major state-level funds:

The General Fund: This is Kentucky’s primary operating pool, fueled mostly by individual income taxes and sales taxes. It pays for the state’s largest expenses, including K-12 education (such as the SEEK program), human services, and healthcare.
The Road Fund: This fund is completely separate and is financed by the state motor fuels tax and the motor vehicle usage tax. By law, Road Fund revenues must be invested in Kentucky’s highways, bridges, and transportation infrastructure.

Without fund accounting, a sudden shortfall in the General Fund might tempt lawmakers to quietly drain the Road Fund to cover general state expenses, leaving highways to crumble. Fund accounting creates a financial firewall between these pools.

3. Managing Federal Funds and Grants A massive portion of Kentucky’s total budget consists of federal funds (such as Medicaid funding, which requires precise tracking). The federal government demands rigorous accounting to prove that grant money was spent on intended programs. If Kentucky could not produce a cleanly separated audit using fund accounting, it would risk losing billions in federal aid.

4. Public Pension Accountability Kentucky has historically faced massive challenges with its public pension liabilities. The Kentucky Public Pensions Authority (KPPA) relies on fiduciary fund accounting to manage over $26 billion in pension and insurance assets for state and local employees. By utilizing strictly regulated fund accounting standards, the state can transparently report its funded ratios, actuarial contributions, and investment returns. This transparency is vital for rebuilding trust with state workers and improving the commonwealth’s overall credit rating with agencies like Fitch and Moody’s.

5. Transparency for the Taxpayer Ultimately, Kentucky fund accounting allows for the creation of Kentucky’s Annual Comprehensive Financial Report (ACFR). This public document allows citizens, journalists, and watchdogs to see exactly how much revenue was collected and exactly where it went. It translates complex state operations into verifiable data, answering the fundamental question of government: Did you spend our money on what you promised to spend it on?