The Color of Money at UF

A Guide to How MoneysMay Be Spent at UF

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Today, We Will:

• Introduce UF’s sources of funds– We’re a complex place– Your department or work unit’s moneys

may come from a variety of sources• Link these sources of funds to “Fund Codes”

– Which we will define and explain in a moment

Today, We Will:

• Describe how moneys can and cannot be used by reviewing spending “rules”– We’ll do this by exploring a general

framework associated with the concept of “allowable expenditures”

• Practice applying the rules, or directives, associated with these funding sources

Today’s Overall Objective

Our overall objective: • To ensure you understand how funding

sources can be used when completing financial transactions

Clarity + Compliance = Good Stewardship

Our Agenda

• Basic groundwork– Fund accounting: source of funds– Accounting system: myUFL, ChartFields,

Fund Codes/funds/Source of Funds– Summary of general funding

Our Agenda

• Specific information about each funding source– Where it comes from– What we call it– How it’s reflected in the myUFL system– Some distinctions about the money

• Budget-based and cash-based

Our Agenda

• Allowable expenditures– General– Fund specific

• Other funding sources—FYI

• So, let’s get started!

How is UF Different?

• Private Business:– Emphasis on profit– Return to investors– Company relies on

investors and revenue

• UF:– Emphasis is on

accountability—how moneys are spent

– Variety of funding sources—for ex.:

– State of Florida– Sponsored Projects– Component Units– Auxiliaries

The focus of today’s session!

Fund Accounting

• UF uses “Fund Accounting”• Fund Accounting provides the understanding

that our money comes from different sources and allows us to track the flow of the money separately

Fund Accounting

• Fund Accounting establishes accountability • With Fund Accounting:

– Each transaction is placed in one of several funds that are identified by Fund Code

– Each fund is a self-balancing set of accounts• In each fund, cash and other financial

resources (what you have available to spend and deposits) are offset with all related liabilities (what you have spent)

Fund Accounting

• Separating transactions by fund allows for accountability to government, donor agencies, and other stakeholders

• Type of fund used may determine spending controls and other rules associated with tracking and reporting

Conceptually …

Moneys come to UFfrom a variety of

sources

Fund Code

These moneys are “deposited”into funds (identified by

different Fund Codes) depending on the source and how the

funds can be used

Fund Code

Fund Code

Fund Code

Fund Code

Conceptually …

• Fund Accounting lets us track financial transactions per “bucket”

• When your department spends from (or makes deposits to) these “buckets,” this financial transaction is linked to your department based on the Department ID ChartField used

Other Key Concepts

Key Concepts

• myUFL/PeopleSoft• ChartFields• funds• Fund Codes• Source of Funds• Budget-based• Cash-based

myUFL System

myUFL System• University of Florida’s name for the

PeopleSoft system (and related tools) that we use for financial, human resources, student financials, and reporting transactions

my.ufl.edu

ChartFields

ChartFields• Standardized numbers that make up

backbone of UF’s accounting system• Used for all financial transactions at UF• Must be used in proper combination

(ChartField string) for revenue and expense transactions – The required and proper combination

generally is based on the Fund Code

ChartFields

This is an example of how the ChartFields appear in a

requisition

“Funds”

• Moving forward today, we will also reference these three concepts that are important to distinguish:– “funds”

Vs.– Fund Code

Vs.– Source of Funds

“funds”

• “funds”– Is the term we use generally to denote

moneys or available resources that are to be spent in support of UF and its activities

– Note the lowercase “f”

Fund Code

• “Fund Code” is a 3-digit number (or ChartField), which we use in the myUFL system, that identifies what type of moneys you are spending– It is a required field when completing

financial transactions– This is how you distinguish whether you

are spending State of Florida funding vs. Auxiliary funding vs. Sponsored Projects funding, etc.

Source of Funds

• “Source of Funds” is a 7-digit ChartField used in myUFL/PeopleSoft– Tracks revenue and expenditures from

outside sources– Provides accountability to donor agencies– Is a required field for contracts and grants

and for transfers from component units (DSOs/affiliates)

Source of Funds

– Identifies from what entity or agency the moneys are provided• For example, if a grant is from the US

Department of Education, the required "Source of Funds" ChartField is G000020

Conceptually …

Source of Funds WSource of Funds XSource of Funds YSource of Funds Z

Fund Code

A particular Fund Code, then,

may beassociated with many Sources

of Funds so that we may

keep track of financial activities

associated withspecific donors

and funding agencies

Why So Complex?

• In combination, these concepts work together to provide accountability for how our moneys are spent

To Learn More, Please Attend:

• “Basic Accounting Concepts for UF Fiscal Administrators” (PRO304)– Includes an introduction to ChartFields

• “Budget and Commitment Control” (PST050/PST950)– Introduces ledger groups (APPROP,

CASH_BASED, etc.)

To Learn More, Please Attend:

• “Purchasing 101” (PRO305)– Provides additional guidelines related to

purchasing transactions at UF• “UF Travel Directives Workshop” (PRO306)

– Provides travel and expense guidelines for university travelers

• “Post-Award Overview” (PRO323)– Introduces post-award grant functions

General Funding Sources at UF

So, What’s the Color of Money?

• Let’s begin by looking at four of UF’s funding sources:– State of Florida—Yellow

– Sponsored Projects—Purple

– Component Units—Green

– Auxiliaries—Blue

FL

CU

SP

AUX

Funding Sources at UF

UF gets moneys from …

State of Florida Legislature

This funding comes from the state’s General Revenue fund. Student tuition (and some collected student fees) while collected locally is governed by regulations associated with this funding source. Lottery funds are also incorporated into UF’s allocation from the state (Educational Enhancement Trust Fund)

FL

Funding Sources at UF

UF gets moneys from …

Sponsored Projects

Federal and non-federal contracts and grants are awarded to UF faculty (and others) typically in support of research activities. In combination, we refer to contracts and grants (as well as “cooperative agreements”) as “Sponsored Projects”

SP

Funding Sources at UF

UF gets moneys from …

Our Component Units (CUs)

These are Direct Support Organizations (e.g., UF Foundation) or other affiliates (e.g., Faculty Practice Plans), which get their funds from a variety of sources. CUs exist to benefit UF but are separate not-for-profit corporations

CU

Funding Sources at UF

UF gets moneys from …

Sale of goods and services to customers—employees, departments, students, members of community—by our Auxiliary units (like the J. Wayne Reitz Union or Transportation and Parking)

AUX

UF’s Total Funding

Tuition and Fees15%

State Ap-propriations

21%

Sponsored Programs

23%

Component Units26%

Auxiliaries8%

Other7%

FY 2012-2013

In Your Work Unit

• Not all departments have all funding sources or have funding sources in the same amount as other departments – For example, some departments

have a lot of Sponsored Project funding—while others have none

Think about it: What are the funding sources for your department?

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State of Florida

State Appropriation

• State of Florida State Appropriation

Fund Code 101

Fund Code 102

Fund Code 103

UF Chief Financial Officer (CFO) and Provost Office working with VPs, UF Deans, etc., decide how much of this “bucket” can be used by your department

Funding Sources at UF

Funding source

State of Florida Legislature

Their funding comes from state taxes, fees, and other sources of state revenue

FL

Funding Sources at UF

Funding source

UF lingo

State of Florida Legislature

State Appropriations

E&G—Education and General

General Revenue

State Funds

FL

Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

State of Florida Legislature

State Appropriations

E&G—Education and General

General Revenue

State Funds

Fund Code 101—E&G Gen Rev, Main Campus

Fund Code 102—E&G Gen Rev, HSC

Fund Code 103—E&G Gen Rev, IFAS

If you work on main campus, youwill spend fromFund Code 101

FL

Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

State of Florida Legislature

State Appropriations

E&G—Education and General

General Revenue

State Funds

Fund Code 101—E&G Gen Rev, Main Campus

Fund Code 102—E&G Gen Rev, HSC

Fund Code 103—E&G Gen Rev, IFAS

If you work at the HSC, it’s possibleyou will spend from Fund Codes 101 and 102. If you’re at the Vet School, you also mightspend from Fund Code 103

FL

Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

State of Florida Legislature

State Appropriations

E&G—Education and General

General Revenue

State Funds

Fund Code 101—E&G Gen Rev, Main Campus

Fund Code 102—E&G Gen Rev, HSC

Fund Code 103—E&G Gen Rev, IFAS

If you work in IFAS, you might spend from Fund Codes 101 and 103

FL

Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

Student tuition

State Appropriations

E&G—Education and General

General Revenue

State Funds

As an FYI:Fund Code 121—Student Fees, Main Campus

Fund Code 122—Student Fees, HSC

These FundCodes are used by the Office of the CFO throughoutthe year to makeadjustments astuition is collected in conjunctionwith FundCodes 101-103

FL

Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

Lottery funds (Educational Enhancement Trust Fund)

State Appropriations

E&G—Education and General

General Revenue

State Funds

As an FYI:Fund Code 111—Ed Enhancement, Main Campus

Fund Code 112—Ed Enhance, HSC

Fund Code 113—Ed Enhance, IFAS

These FundCodes are used by the Office of the CFO throughoutthe year to makeadjustments aslottery funds are provided in conjunctionwith FundCodes 101-103

FL

Sponsored Projects

• Federal and non-federal funding agencies

• Sponsored Project funding– Contracts, Grants,

Coop Agreements

Sponsored Projects

Fund Code 201

Fund Code 209

Division of

Sponsored

Research

Funding Sources at UF

Funding source

Sponsored Projects

Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators

SP

Funding Sources at UF

Funding source

UF lingo

Sponsored Projects

Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators

Principal investigators (PIs) are the designated personnel (typically faculty) who secured the funding and who will be responsible for the funded research activity

SP

Funding Sources at UF

Funding source

UF lingo

Sponsored Projects

Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators

“Project” is the ChartField used in myUFL or PeopleSoft to identify activity associated with Sponsored Projects

Sponsored Projects or Programs

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Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

Sponsored Projects

Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators

Sponsored Projects

Projects

C&G—or Contracts and Grants

Fund Code 201—C&G Federal Restricted

Fund Code 209—C&G Other Restricted (Non-Federal)

SP

Funding Sources at UFSP

Funding source

UF lingo Designated Fund Code ChartField

Sponsored Projects

Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators

Sponsored Projects

Projects

C&G—or Contracts and Grants

Other associated Fund Codes include:Fund Code 211—Returned OverheadFund Code 212—Residual FundsFund Code 213—UFRF AllocationsFund Code 214—Non-Federal Clinical Trials

Component Units(including Direct

Support Organizations)

• Donations, revenue from licensing, clinic fees

• Component Units (CUs)For example:– UFF—UF Foundation– UFRF—UF Research Foundation– Faculty Practice Plans

For example Fund

Code 171

Component Units

Funding Sources at UF

Funding source

Component Units (CUs)

A variety of outside sources fund CUs, which can be Direct Support Organizations (DSOs) or other affiliates

CU

Funding Sources at UF

Funding source

Component units support UF and exist to benefit UF but are separate not-for-profit corporationsExamples: University Athletic Association (UAA) and UF Foundation (UFF)

CU

Funding Sources at UF

Funding source

Component unit employees are not always UF employees

CU

Funding Sources at UF

Funding source

UF lingo

Component Units (CUs)

Example #1UF Foundation, or UFF—Its funding comes from fundraising, donations, and other investments

CU

Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

Component Units (CUs)

Example #1 UF Foundation, or UFF—Its funding comes from fundraising, donations, and other investments

Fund Code 171—Transfer from Component Units

CU

Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

Component Units (CUs)

Example #2UF Research Foundation (UFRF)

UFRF is a DSO that receives royalty allocations derived from licenses for UF discoveries as a result of UF’s research efforts

Fund Code 213—UFRF Allocations

CU

Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

Component Units (CUs)

Example #2 UF Research Foundation (UFRF)

Grants from private industry and funds from private foundations also are channeled through UFRF

Fund Code 209—C&G Other Restricted (Private Grants)

CU

Funding Sources at UF

Funding source

UF lingo

Component Units (CUs)

Example #3The Faculty Practice Plans—also known as the Clinical Practice Plans—are affiliates

CU

Funding Sources at UF

Funding source

UF lingo

Component Units (CUs)

Example #3This revenue comes primarily from patient fees for services provided by UF’s clinics

CU

Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

Component Units (CUs)

Example #3Faculty Practice Plans

Fund Code 171—Transfer from Component Units

CU

DSOs

• UF Foundation• UF Research Foundation• UF Athletic Association• Gator Boosters• UF Law Center

Association• FL Foundation Seed

Producers• FL 4-H Club Foundation

• SW FL Research and Education Foundation

• Citrus Research and Education Foundation

• FL Leadership and Education Foundation

• Treasure Coast Agricultural Research Foundation

• UF Alumni Association• UF Investment

Corporation

CU

Affiliates

• FL Clinical Practice Association

• UF Jacksonville Physicians

• Faculty Associates• FL Health Professions

Association• Nursing Faculty Practice

Association• Pharmacy Faculty

Practice Association

• Veterinary Medicine Faculty Association

• UF Jacksonville Healthcare

• UF Faculty Clinic/Jacksonville

• Shands Teaching Hospital and Clinics

• University Village Apartments

CU

Auxiliary Funds

• Customers

• Auxiliary Revenuefunds

Fund Codes14x, 15x,

16x

Auxiliaries

Funding Sources at UF

Funding source

Sale of goods and services to customers: employees, departments, students, members of community

AUX

Funding Sources at UF

Funding source

UF lingo

Sale of goods and services to customers: employees, departments, students, members of community

Auxiliaries are UF entities that are generally self supporting and charge for their services

AUX

Funding Sources at UF

Funding source

UF lingo Designated Fund Code ChartField

Sale of goods and services to customers: employees, departments, students, members of community

Examples include the Physical Plant Division and Tele-communications

For example:Fund Code 149—Aux-Other Funds

Fund Code 159 —RCM Support Unit Fund

Fund Code 151—Aux-Working Capital (Physical Plant)

AUX

Funding Sources at UF

Fund 149• Animal Care Services• Center for the Performing Arts• WRUF Radio• Health Net• University Press• O’Connell Center• Business Services

Fund 159• RCM Support Unit Fund• Other Sources

– Loans Funds Admin.– Soft Drink Commissions– Financial Aid Auxiliary– OH, Returned Check Fee

AUX

Any Questions?

Before We Move On

State Appropriations• Fund Code 101—E&G Gen Rev, Main Campus• Fund Code 102—E&G Gen Rev, HSC• Fund Code 103—E&G Gen Rev, IFAS

Sponsored Projects• Fund Code 201—C&G Federal Restricted• Fund Code 209—C&G Other Restricted (Non-

Federal)

SPFL

Before We Move On

Component Units• UFF and other CUs• Fund Code 171—Transfer from Component Units• UFRF• Fund Code 213—UFRF Allocations• Fund Code 209—C&G Other Restricted (Private

Grants)

• Faculty Practice Plans• Fund Code 171—Transfer from Component Units

CU

SP

Before We Move On

Auxiliaries

For example:• Fund Code 141 – Reitz Union Fund• Fund Code 149—

Aux-Other Funds• Fund Code 151—Aux-Working Capital (Physical

Plant)

AUX

Budget- vs. Cash-Based• Some of these funding sources are “budget-

based”– Budget allocations funded from State

Appropriations (including student tuition revenue) are made in lump-sum amounts by the University Budget Officer as determined by the CFO to the appropriate vice presidents and deans

– These allocations may be further allocated to departments and divisions by these vice presidents and deans

Budget- vs. Cash-Based

– Once the budget allocation has been made, these funds can be spent

• Sponsored Projects also are considered “budget-based”

• Think of budget-based as a credit line that has been extended and guaranteed to your department

Budget- vs. Cash-Based

• Others are “cash-based”– Includes Auxiliaries, Component Units,

Returned Overhead and Residuals, as well as others

– Available resources (operating budget amounts) are based on beginning cash balances, plus revenue, less expenditures

Budget- vs. Cash-Based

• Others are “cash-based”– These funds can be spent only when the

“cash” has been obtained

• Think of it as the cash you have in your wallet—you must have the cash in your wallet in order to be able to spend it

Budget- vs. Cash-Based

• This distinction determines your “available spending authority”

• To learn more, please attend the “Budget and Commitment Control” Workshop

So, What’s the Color of Money?

• State of Florida—Yellow– Budget-Based– Fund Codes 101, 102, 103

• Sponsored Projects—Purple– Budget-Based– Fund Codes 201, 209

SP

FL

So, What’s the Color of Money?

• Component Units—Green– Cash-Based– For example: Fund Codes 171, 213

• Auxiliaries—Blue– Cash-Based– For example: Fund Codes 149,151

CU

AUX

Allowable Expenditures

What’s an “Allowable Expenditure”?

• Let’s now discuss how these moneys can and cannot be used – We’ll do this by exploring the concept of

“allowable expenditures”

What’s an “Allowable Expenditure”?

• To be an “allowable expenditure,” regardless of funding source, a clear business purpose must exist

• All “allowable expenditures,” regardless of funding source, must be for relevant and appropriate operating expenses

What’s an “Allowable Expenditure”?

• Additionally, moneys cannot be expended to satisfy the personal preference of employees– For example, you may not purchase a

space heater or fan just to accommodate an individual’s preference for temperature

What’s an “Allowable Expenditure”?

• Items that are for personal convenience and that generally are not necessary for UF to carry out its business are not allowed– Although some items that typically fall in

that category can be purchased if justification is obtained when the items are for the organization’s convenience

What’s an “Allowable Expenditure”?

• For example:– A refrigerator can be purchased for a break

room, but not for a personal office (even if the refrigerator is small)

– You can purchase a picture or photo for a common space but not a personal office

What’s an “Allowable Expenditure”?

• As noted: A letter of justification for these allowed purchases will be required

• Fund Codes 101-103 are discouraged• The salient point: Items cannot be for

personal use or in the personal space of an employee– If the item is for personal use but for the

organization’s convenience, however, it may be approved as a perquisite

FL

Jargon Alert!

• What’s a perquisite? (Think “job perk”)– Goods or services that are required by the

employer, which may be given or provided at reduced cost to employees based on position requirements

– Typical perquisites include uniforms, special footwear, and safety equipment

Regardless of Funding Source

• Moneys may not be used for:– First class travel

• Although business class will be approved when travel exceeds 9 hours

– Private club memberships– Lavish or extravagant entertainment– Personal benefit to an individual (other

than an incidental benefit)

Political/Charitable Contributions

• Payments to Political Action Committees (PACs) when included within a membership fee are allowed

• When the amount to a PAC is separate and distinguishable, it is only allowed for Fund Code 171– No other political contributions allowed

• Lobbying fees also allowed for Fund Code 171• Charitable contributions allowed for Fund Code

171, Source of Fund, Faculty Practice Plans

CU

Regardless of Funding Source

• Items that also should not be paid include:– Gifts (above a certain value) or gift

certificates for most purposes• Some sponsored projects allow gift

certificate purchases

Regardless of Funding Source

• And all transactions must comply with:– Competitive procurement processes

(including bid/quote limits) – Contract and requisition business rules– Limitations on unencumbered expenses– Travel directives on reimbursements,

including pre-approval and reimbursement in myUFL

Regardless of Funding Source

• All disbursements and expenditures also must have written documentation suitable for auditing purposes

Broad Principles

• We’ll discuss all of this in more detail moving forward today, but as a general rule:

• State Appropriation funds can be spent in a wide range of ways—salaries, office supplies, travel, etc.—so long as the funds are being spent for relevant operating expenses

FL

Broad Principles

• Funds from Sponsored Projects are typically more restrictive– If the award is for x, you must use

the funds for x• There also are additional restrictions

associated with “Direct” and “Indirect Costs”• Cost Accounting Standards also apply• Funds sometimes can be used to purchase

items typically not allowed based on project guidelines

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Broad Principles

• In most cases, funds from Component Units have greater flexibility—for example:– Alcohol can only be purchased only from

Component Unit funding sources– Entertainment expenses, which must be

reasonable, also are generally allowed only from Component Unit funding sources

CU

Broad Principles

• Auxiliaries funds typically also can be spent with more flexibility—although they still must only spend funds on relevant and appropriate expenses for their business enterprise

AUX

Allowable Expenditures

• Let’s look more closely at the differences across funding sources of what constitutes an “allowable expenditure”

• It’s critical to know which of the available funding sources can be used for the desired financial transaction

State Appropriations

State Appropriation

• State of Florida State Appropriation

Fund Code 101

Fund Code 102

Fund Code 103

UF CFO and Provost Office working with VPs, UF Deans, etc., decide how much of this “bucket” can be used by your department

FL

State Appropriations

• As a general rule, these funds can be spent in a wide range of ways—salaries, office supplies, travel, etc.—so long as the funds are being spent for relevant operating expenses

FL

State Appropriation funds

• Alcoholic beverages• Portable heaters• Fans• Refrigerators• Stoves/microwaves• Coffee pots and

supplies

• Picture frames• Wall hangings • Various decorations• First class travel• Food items (except for

recruitment)• Gifts• Political contributions

• The following are examples of items that are not normally allowed to be purchased or paid for with State Appropriations:

FL

Reference Guide

• For State Appropriations, visit the following web site for more details about “allowable expenditures”

• http://www.myfloridacfo.com/aadir/reference_guide/Reference_Guide_For_State_Expenditures.pdf

FL

State Appropriation Fund Codes

• Fund Codes associated with State Appropriations are:– Fund Code 101—E&G Gen Rev, Main

Campus– Fund Code 102—E&G Gen Rev, HSC– Fund Code 103—E&G Gen Rev, IFAS

• No “Source of Funds” ChartField is required when spending State Appropriations

FL

Jargon Alert!

• Budget Reference ChartField– This ChartField answers the question

“When did I receive this money?”• Current

– When spending State Appropriations in the year in which it was budgeted, use a budget reference ChartField of CRRNT

Jargon Alert!

• Carry Forward– Unexpended balances at June 30 of each

year are carried forward and budgeted in the next fiscal year

– Same restrictions as state appropriations but usually not used for recurring expenses (i.e., salaries)

– Budget reference ChartField of CYFWD

Case StudyWhat would the solution

be in most instances?

Sponsored Projects

• Federal and non-federal funding agencies

• Sponsored Project funding– Contracts, Grants,

Coop Agreements

Sponsored Projects

Fund Code 201

Fund Code 209

Division of

Sponsored

Research

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Sponsored Project funds

• At UF, a significant amount of funding comes from outside sources

• These moneys are governed by regulations associated with “Sponsored Projects”

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Jargon Alert!

• What’s a “Sponsored Project”?– Projects are proposed by a principal

investigator (or PI) to an outside agency that provides funding

– “Sponsored projects” are contractual agreements with PIs that have been approved and funded by an external funding agencies

– We use this term to denote grant, contract, or cooperative agreement funding

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Sponsored Project funds

• Sponsored Projects moneys are generally more restrictive in that expenditures must meet specific requirements of the project – For example, if an award is made to do X,

then the funds must be spent to do X– As with all other funding sources,

expenditures must be relevant to the project

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Sponsored Project fundsWith Sponsored Projects, there are:• Direct Costs

– Which are specifically associated and identified with a particular project, program, or activity as designated by the grant/ cooperative agreement/contract award

• Indirect Costs (overhead)– Which are Facilities and Administrative

(F&A) costs billed against Sponsored Projects periodically to recover the costs of managing UF and its research activities

SP

Sponsored Project funds

• Sometimes there also are costs that are “unallowable”—that is, they cannot be designated as “Direct” or “Indirect”– These costs must be identified and

covered by a different funding source

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Jargon Alert!

• This is governed by the U.S. Office of Management and Budget (OMB)– Assists in overseeing federal budget

preparation and supervises its administration– Leads development of government-wide

policy:• To assure grants are managed properly• And federal dollars are spent in accordance

with applicable laws and regulations

SP

Sponsored Project funds

• According to U.S. Office of Management and Budget (OMB) Circular A-21, we can only report expenses if they are: – Reasonable - A prudent person would have

purchased the item and paid that price– Allocable - Expenses are at least partially

applicable to a sponsored agreement

SP

Sponsored Project funds

– Consistently Treated - Expenses for similar purposes must be treated the same way (throughout the university) under like circumstances

– Allowable - The expense must be allowable or not specifically excluded as specified by government regulations or by the contract/grant/cooperative agreement requirements

SP

Jargon Alert!

• In conjunction with the terms “Direct” or “Indirect Costs,” you may also hear:

• Cost Accounting Standards (CAS)– Principles for determining costs applicable

to grants, contracts, and other agreements with educational institutions as established by the federal government’s Office of Management and Budget (OMB) Circular A-21

SP

Jargon Alert!

• Essentially, CAS requires consistency in how costs associated with grants and contracts are estimated, accumulated, and reported– Provides guidance as to what is

“allowable” vs. “unallowable” costs– And how both should be treated

• CAS also establishes consistency in the accounting periods used for cost accounting

• UF’s related practices must comply with CAS

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Jargon Alert!

• Exceptions to the University's CAS policy may be requested by submitting a request to the Division of Sponsored Research

• Visit the following web site for more details about CAS as well as allowable charges: http://www.research.ufl.edu/research/handbook/researcher_handbook/section4.html#RTFToC4

SP

Sponsored Projects

• Sponsored Project Funding

Each SP

Direct Costs

Division of

Sponsored

Research

SP

Indirect Costs

Sponsored Project Fund Codes

• Direct Costs of Sponsored Projects are associated with Fund Codes 201 (federal) and 209 (non-federal)– For these funds, State Appropriation

guidelines apply unless specifically allowed or disallowed by the sponsor of the contract, cooperative agreement, or grant

– A “Source of Fund” ChartField is required when spending these funds

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Sponsored Project funds• The following are generally considered

“Direct” charges for a federally funded project (Fund Code 201) as long as they are relevant for the project: – Salaries for research-related jobs/positions– Lab supplies – Travel – Technical and scientific equipment – Animal care and other cost center services – Technical software/Repair and maintenance

charges for equipment purchased – Long distance calls related to the project

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Sponsored Project funds

• With few exceptions, the following items cannot be charged directly to a federally funded project (Fund Code 201): – Clerical, secretarial and administrative

salaries – Data processing/computer supplies – Postage and basic telephone charges – Office supplies – General software – Subscriptions – Institutional and individual memberships

SP

Indirect Costs

Sponsored Projects

• Sponsored Project Funding

Each SP

Direct Costs

Division of

Sponsored

Research

SP

Indirect Costs

Sponsored Project funds

• Indirect Costs (IDC) of Sponsored Projects – These funds are collected from Sponsored

Projects to be used to operate and support UF’s sponsored research program• Indirect Costs are also referred to as

Facilities and Administrative (F&A) costs• Facilities and Administrative costs are

billed against Sponsored Projects periodically to recover the costs of managing UF and its research activities

SP

Fund Code 209

• Non-Federal Sponsored Agreements (Fund Code 209)– All costs may be directly charged to a non-

federal sponsored agreement as long as they have been approved by the awarding sponsor and are relevant for the project

– All questions should be directed to the appropriate Contract and Grants office for your college

SP

Fund Code 211

• Returned Overhead

Indirect

Costs

Your Unit’sReturned Overhead Fund (211)

Did you notice thatthe color changed

from purple to pink?

We’ll be using the color pink in this and otherworkshops to denote

returned overhead and residual balances

R

Fund Code 211

• At the end of each year, some of the Indirect Costs are returned to the colleges, departments, and PIs– When Indirect Costs are returned, they are

associated with Fund Code 211 (Returned Overhead)

R

Fund Code 211

– Use of Returned Overhead is restricted by state statute and may be used only to support research, research-related activities, sponsored training programs, or extension

– Fund Code 211 is a cash-based fund

R

Residual Balances

• Residual Balances

Unspent Funds

Your Unit’sResidual Balance

Fund (212)

Did you notice thatthe color changed

from purple to pink?

R

Fund Code 212

• “Residual Funds,” on the other hand, are unused funds that were not needed to fully execute the requirements of the Sponsored Project– Some unused funds may need to be

returned to the sponsor– Funds not returned to the sponsor are

returned to the PI, his or her work unit, or the appropriate vice president

R

Fund Code 212

• “Residual Funds” are associated with Fund Code 212, which is a cash-based fund

• Residual Funds are discretionary moneys restricted for purposes of supporting research

R

FYI—IFAS Federal Funds

• In addition to State Appropriations and Sponsored Projects funds, IFAS also receives federal funds because we are a land-grant institution (research, extension)

• These moneys are allocated at the discretion of the appropriate IFAS dean, usingthese Fund Codes– Fund Code 221—IFAS Exp. Station– Fund Code 222—IFAS Ext. Services

FYI—IFAS Federal Funds

• The use of these federal funds are determined by federal guidelines

• Please contact the office of the Dean for Research – With questions regarding Fund Code 221

• And the office of the Dean for Extension – With questions regarding Fund Code 222

Case StudyWhat would the solution

be in most instances?

Component Units(including Direct

Support Organizations)

• Donations, revenue from licensing, clinic fees

• Component Units (CUs)For example:– UFF—UF Foundation– UFRF—UF Research Foundation– Faculty Practice Plans

Your Unit

Component UnitsCU

Component Units

• Expenditure rules are guided by each CU’s Memorandum of Understanding (MOU) and any donor-specific restrictions – Generally, the expenditures need to be

reasonable and for and on behalf of UF and its mission

– All expenditures must have written justification that reflects purpose and benefit

CU

Component Units

• There are four basic criteria which determine the legitimate use of CU funds:– The use must be reasonable and benefit

UF– If applicable, the use must fall within the

donor's intent for the gift– The use must not jeopardize the CU’s tax-

exempt status– The use must comply with all applicable

statutes and regulations

CU

Component Units

• Moneys spent by the CU for the purpose of accomplishing the CU’s express mission, including travel and entertainment expenses for fundraising and development purposes, are processed directly by the CU in accordance with its policies

• These funds are not transferred to UF

CU

Component Units

• It is important to judge all expenditures in light of the CU's responsibility to the public and its donors– All disbursements and expenditures must

have written documentation suitable for auditing purposes

• “Source of Funds” is a required ChartField for these transactions

CU

Component Units

• In accordance with IRS regulations, gifts to employees generally must have a value of $25 or less to avoid being taxable income– Cash and gift certificates are always

considered taxable income and therefore may not be given

– Gifts for significant occasions (e.g., retirement) may be eligible for exception to these regulations; please contact the CU’s Accounting Department

CU

Let’s Look at a Few Examples

Fund Codes Associated with Component Units

Fund Code 171 Transfer from

Component Units

Transfer from CUs—Fund Code 171

• Fund Code 171 is used for all transfers from CUs except when the circumstances require a different Fund Code

• “Source of Funds” is a required ChartField for transfers from CUs– For example, F000223 would be the

“Source of Funds” code to indicate funds were from the Patrons of the Libraries Fund

CU

Transfer from CUs—Fund Code 171

• Fund Code 171 is used by the UFF as well as others—for example:– Citrus Research & Edu Foundation– Faculty Practice Plans– UF Law Center Association– University Athletic Assn (UAA)

CU

Fund Code 171Faculty Practice

Plans (FPP)

FPP Funds—Fund Code 171

• The funding source for the Faculty Practice Plans are the fees charged for services delivered by Health Science Center clinics in the:– College of Medicine– College of Dentistry– College of Public Health and Health Professions– College of Nursing– College of Pharmacy– College of Veterinary Medicine

CU

FPP Funds—Fund Code 171

• FPP funds can only be expended for purposes consistent with and supportive of the objectives of the respective College, the Health Science Center, and UF, and in accordance with approved faculty practice plans

• “Source of Funds” is a required ChartField – For example, HSCJXPH is the “Source of

Funds” code to indicate funds came from UF Jacksonville Physicians

CU

FPP Funds—Fund Code 171

• Expenditures may be made, subject to appropriate approval, for items such as:– Enrichment of a dept.’s academic activities – Provision of appropriate salary and certain

fringe benefits to designated faculty of the respective College

– Food and beverages for meeting, entertaining, or recruitment purposes if supported by a statement of business purpose and list of attendees

– Coffee and water services for departments

CU

FPP Funds—Fund Code 171

• Items that should not be paid from FPP funds include personal or other expenses not having a direct business purpose associated with the mission of the College and University– Including gift certificates or monetary gifts

for any purpose or any amount

CU

FPP Funds—Fund Code 171

• Permitted gifts must be nonmonetary, infrequent, and have a value of $75 or less– Employee length-of-service awards, such

as retirement gifts, may have a value of up to $400, subject to IRS requirements

CU

FPP Funds—Fund Code 171

Also, not allowed:• Costs of holiday, retirement, or miscellaneous

parties which are frequent, or for which the value of the benefits to participants is unreasonable, lavish, or extravagant

• Tobacco products• Parking decals for personal automobiles • Consultant fees to any state employee• Petty cash funds unless approved by UF’s

Controller with approved controls, guidelines

CU

FPP Funds—Fund Code 171

Also, not allowed:• First class or business class air travel; air

flight insurance– Although business class will be approved

when travel exceeds 9 hours• Contributions to political organizations

(except if part of membership fee)• Personal fines and penalties resulting from

violation of the law or local government ordinances 

CU

FPP Funds—Fund Code 171

• Visit the following web site for more details:• http://www.fa.ufl.edu/directives-and-

procedures/disbursements/#expenditure• Some colleges may have additional

restrictions or guidelines governing how FPP funds may be used

CU

Fund Codes 213

UFRF Allocations—Fund Code 213

• UFRF stands for University of Florida Research Foundation, Inc.

• This is a DSO that promotes, encourages, and provides assistance to UF’s research activities

• A not-for-profit organization, UFRF provides a means by which discoveries, inventions, processes, and work products of UF faculty, staff, and students can be transferred from the laboratory to the public

CU

UFRF Allocations—Fund Code 213

• Funds generated by licensing such discoveries are used to enhance research at UF

• Fund Code 213 is associated with UFRF allocations and is a cash-based fund

• These are discretionary moneys restricted for purposes of supporting research

• “Source of Funds” is a required ChartField

CU

Case StudyWhat would the solution

be in most instances?

AuxiliariesFund Codes 14x,

15x, and 16x

• Customers

• Auxiliary Revenuefunds

14x, 15x, 16x Fund

Codes

AuxiliariesAUX

Auxiliary funds

• Auxiliary funds are generally governed by the same guidelines as funds from state appropriations—however, not always

• May be expended for any goods and services necessary to fulfill the mission and programmatic needs for the auxiliary

AUX

Auxiliary funds

• For example, Housing and Residence Education is an “auxiliary”

• It has customers (student residents) who pay a fee to live in the residence halls

• These funds are used, in turn, to support the Housing “enterprise”

AUX

Auxiliary funds

• Auxiliary operations must operate similar to a private entity operating a business– Have discretion over determining

appropriate programmatic needs (although some limitations still exist)

– As with all funding sources, documentation to support expenditures is required for audit purposes

AUX

Auxiliary funds

• The following goods and/or services may not be purchased with Auxiliary moneys:– Alcohol

• Except at “Fee-Collected Events”– Entertainment for visiting dignitaries – First class travel – Flowers

AUX

Auxiliary Fund Codes

• Examples of Fund Codes associated with Auxiliary funds are:– 142—Transportation and Parking Services– 143—Distance, Continuing, and Executive

Education– 146—Housing—General– 149—Aux—Other Funds– 151—Aux—Working Capital (Physical Plant)

• No “Source of Funds” ChartField is required when spending Auxiliary funds

AUX

Auxiliary funds

• Visit the following web site for more details:

• http://www.fa.ufl.edu/directives-and-procedures/disbursements/#expenditure

AUX

Case StudyWhat would the solution

be in most instances?

FYIOther Funding

Sources

FYI: Other UF Funding Sources

• There are other funding sources at UF that you should be aware of:– Student Activity and Service Fees– Financial Aid– Concession Funds– Capital Projects

Funding Sources at UF

UF gets moneys from …

Student Activity and Service fees (A&S fees), which are collected by University Bursar as a component of tuition

–Administered by the Division of Student Affairs, these fees are allocated by the Student Senate to meet the needs of student groups

–Fund Code 191—Student Govt Funds

Funding Sources at UF

UF gets moneys from …

Various sources to provide financial aid to UF students. With financial aid, UF acts as the custodian for funds until the moneys are disbursed to the students or credited toward the students’ debts

There are a range of Fund Codes used to support financial aid-related efforts

Financial Aid

How does financial aid “work”?• As a first step, students typically complete the

Free Application for Federal Student Aid (FAFSA)

• UF’s Office of Student Financial Affairs then uses information from the FAFSA to determine what type and amount of aid (federal, state, or university) the student is eligible to receive

Financial Aid

• Additionally, students may be eligible to receive:– Bright Futures Scholarships – Scholarships from UF departments funded by

private donations, the UF Foundation, or department overhead accounts

– Scholarships from other outside agencies and organizations

– Private loans• As a result, there are a number of Fund Codes

used for financial aid purposes

Financial Aid

• Fund Codes 131, 251, 901—Scholarship Funds:

• These Fund Codes receive funding from:– UF departments, state of Florida, and

federal agencies– Other outside agencies– Private donations– UF Foundation– Interest earned from investments

Financial Aid

• Fund Code 301—Federal Loan Fund (Perkins Loans)– Revolving fund receives funding from

federal government and UF matching• Fund Code 331—Regular Loan Fund

– Revolving fund receives funding from private donations and UF Foundation

Funding Sources at UF

UF gets moneys from …

Commissions from vending contracts for beverages, food, and games

–Known as the President’s “concession funds,” these funds are used for discretionary purchases that support business purposes that are generally not made with state or grant funds

–Fund Code 192—Concession Funds

Funding Sources at UF

UF gets moneys from …

State, private, and university sources to be used for capital projects—new construction and major renovations of buildings

Terms that you will hear include:–State Approp—Non-operating–Capital Improvement Trust Fund (CITF)–PECO—Public Education Capital Outlay

–Fund Codes 5XX

Capital Projects

• Capital projects are managed by UF’s Facilities and Planning Office and IFAS Facilities

• The Construction Accounting Department serves as the chief budgetary and fiscal office for all construction projects undertaken by UF

CP

Fund Code 179 & 279

Other Miscellaneous

Other Miscellaneous—Fund Code 179

• Fund Code 179—Other Miscellaneous– This cash-based fund does not have a

standard funding source– It is primarily used for non-research

miscellaneous revenues– Typically, use of these moneys should

follow the same guidelines as Auxiliary funds

• Fund Code 279—Restricted Incidental Fund– Incidental revenues that are restricted to a

specific department or purpose.

Restricted Incidental—Fund Code 279

Fund Codes 181 and 182

IFAS Incidental Funds

IFAS Incidental Funds–181 and 182

• Used for revenues made from the sale of certain goods and services

• If the money is research-related, Fund Code 181 should be used; if it is extension-related, Fund Code 182 should be used– Dept. of Soil & Water Sciences, for ex., does

soil testing for the public and charges a small fee for this service

• IFAS only—although not all IFAS departments have these types of funds

• Cash-based• Auxiliary spending rules apply

Fund Codes 185 and 186

HSC Trust Funds

HSC Trust Funds–185 and 186

• Used for revenues made from the sale of certain goods and services

• Fund Code 185 is used by all six colleges in the HSC

• Fund Code 186 is for the Vet Med Teaching Hospital’s use

• HSC only• Cash-based• Auxiliary spending rules apply

Let’s Complete a

Comprehensive Review

Today, We:

• Introduced UF’s sources of funds• Described how the funds can and cannot be

used• Applied what we discussed using case

studies• All to ensure you understand how funding

sources can be used when completing financial transactions at UF– Clarity + Compliance = Good Stewardship

Any Questions?

Receiving Credit for this Class

• Sign or initial the attendance roster to get credit for attending today’s workshop

Evaluations

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