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The Color of Money at UF A Guide to How Moneys May Be Spent at UF
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Housekeeping Name Plates Cell Phones Rest Rooms Materials Fire Drill
If you haven’t done so yet, please go ahead and put your name on the name plate that’s on your desk. Rest Rooms The rest rooms are out the door and down the hall to the right. The men’s room is on the left-hand side of the hall. There is also a unisex room next to it. The women’s room is also on this floor but on the other side of the building. You’ll need to loop around to the other side of the building and go through some extra doors to find it. There’s a unisex restroom next to the ladies room as well. There are also restrooms on the second floor. Fire Drill In the event of a fire drill, you’ll want to follow me. I’ll be the person moving swiftly down the aisle, exiting out the door to the left, and heading over to the trash dumpsters. Cell Phone If you have a cell phone, please put that on silent or vibrate. If you do need to take a call, that’s totally fine. You’ll just want to step outside. You’ll also want to resist the temptation to text during the workshop. Class Materials For class materials, you should have a handout. This includes the PowerPoint slides and space for notes. Questions Please feel free to ask questions during today’s session. For the benefit of our remote participants, I’ll be repeating any question I receive from those of you who are here in the room. This will allow the question to be picked up by the microphone. I’ll then do my best to answer the question. If I don’t know the answer to your question, I’ll record it, do some research and get back to you. Fire Drill Questions
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Class Completion When Class is Complete Please sign roster.
Evaluation: Let us know what you think! At the conclusion of this session, we will be circulating a roster for local participants. Please sign it. This will assure the attendance is recorded and your training record is updated. Once your training record is updated, the system will you an evaluation for this session. If you could please complete it, this will provide us with valuable feedback.
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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
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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
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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
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Our Agenda Basic groundwork Fund accounting: source of funds
Accounting system: myUFL, ChartFields, Fund Codes/funds/Source of Funds Summary of general funding
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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
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Our Agenda Allowable expenditures General Fund specific
Other funding sources—FYI So, let’s get started!
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The focus of today’s session!
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!
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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
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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)
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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
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Moneys come to UF from a variety of sources
Conceptually … Moneys come to UF from a variety of sources 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 Fund Code
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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
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Other Key Concepts
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Key Concepts myUFL/PeopleSoft ChartFields funds Fund Codes
Source of Funds Budget-based Cash-based
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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
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my.ufl.edu
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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
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This is an example of how the ChartFields appear in a requisition
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“Funds” Moving forward today, we will also reference these three concepts that are important to distinguish: “funds” Vs. Fund Code Source of Funds
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“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”
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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.
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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)
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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
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Conceptually … A particular Fund Code, then, may be associated with many Sources of Funds so that we may keep track of financial activities associated with specific donors and funding agencies Fund Code Source of Funds W Source of Funds X Source of Funds Y Source of Funds Z
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Why So Complex? In combination, these concepts work together to provide accountability for how our moneys are spent
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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.)
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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
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General Funding Sources at UF
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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 SP CU AUX
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Funding Sources at UF UF gets moneys from …
FL 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)
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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”
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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
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Funding Sources at UF UF gets moneys from …
AUX 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)
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UF’s Total Funding FY
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Think about it: What are the funding sources for your department?
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 SP Think about it: What are the funding sources for your department?
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State of Florida
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State Appropriation State of Florida State Appropriation
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 Fund Code 101 Fund Code 103 Fund Code 102
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Funding Sources at UF Funding source FL State of Florida Legislature
Their funding comes from state taxes, fees, and other sources of state revenue
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Funding Sources at UF Funding source UF lingo FL
State of Florida Legislature State Appropriations E&G—Education and General General Revenue State Funds
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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, you will spend from Fund Code 101
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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 possible you will spend from Fund Codes 101 and If you’re at the Vet School, you also might spend from Fund Code 103
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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
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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 Fund Codes are used by the Office of the CFO throughout the year to make adjustments as tuition is collected in conjunction with Fund Codes
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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 Fund Codes are used by the Office of the CFO throughout the year to make adjustments as lottery funds are provided in conjunction with Fund Codes
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Sponsored Projects
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Division of Sponsored Research
Sponsored Projects Federal and non-federal funding agencies Sponsored Project funding Contracts, Grants, Coop Agreements Division of Sponsored Research Fund Code 201 Fund Code 209
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Funding Sources at UF Funding source SP Sponsored Projects
Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators
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Funding Sources at UF Funding source UF lingo SP 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
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Funding Sources at UF Funding source UF lingo SP 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
SP 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 Projects C&G—or Contracts and Grants Fund Code 201—C&G Federal Restricted Fund Code 209—C&G Other Restricted (Non-Federal)
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Funding Sources at UF Funding source UF lingo
SP 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 Projects C&G—or Contracts and Grants Other associated Fund Codes include: Fund Code 211—Returned Overhead Fund Code 212—Residual Funds Fund Code 213—UFRF Allocations Fund Code 214— Non-Federal Clinical Trials
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Component Units (including Direct Support Organizations)
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Component Units 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
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Funding Sources at UF Funding source CU Component Units (CUs)
A variety of outside sources fund CUs, which can be Direct Support Organizations (DSOs) or other affiliates
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Funding Sources at UF Funding source CU
Component units support UF and exist to benefit UF but are separate not-for-profit corporations Examples: University Athletic Association (UAA) and UF Foundation (UFF)
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Funding Sources at UF Funding source CU
Component unit employees are not always UF employees
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Funding Sources at UF Funding source UF lingo CU Component Units (CUs)
Example #1 UF Foundation, or UFF—Its funding comes from fundraising, donations, and other investments
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Funding Sources at UF Funding source UF lingo
CU 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
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Funding Sources at UF Funding source UF lingo
CU Funding source UF lingo Designated Fund Code ChartField Component Units (CUs) Example #2 UF 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
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Funding Sources at UF Funding source UF lingo
CU 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)
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Funding Sources at UF Funding source UF lingo CU Component Units (CUs)
Example #3 The Faculty Practice Plans—also known as the Clinical Practice Plans—are affiliates
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Funding Sources at UF Funding source UF lingo CU Component Units (CUs)
Example #3 This revenue comes primarily from patient fees for services provided by UF’s clinics
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Funding Sources at UF Funding source UF lingo
CU Funding source UF lingo Designated Fund Code ChartField Component Units (CUs) Example #3 Faculty Practice Plans Fund Code 171—Transfer from Component Units
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DSOs UF Foundation UF Research Foundation UF Athletic Association
CU 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
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Affiliates FL Clinical Practice Association UF Jacksonville Physicians
CU 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
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Auxiliary Funds
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Auxiliaries Customers Auxiliary Revenue funds Fund Codes 14x, 15x, 16x
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Funding Sources at UF Funding source AUX
Sale of goods and services to customers: employees, departments, students, members of community
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Funding Sources at UF Funding source UF lingo AUX
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
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Funding Sources at UF Funding source UF lingo
AUX 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)
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Funding Sources at UF Fund 149 Animal Care Services
AUX 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
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Any Questions?
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Before We Move On State Appropriations
FL SP 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)
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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 SP
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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)
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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
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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
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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
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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
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Budget- vs. Cash-Based This distinction determines your “available spending authority” To learn more, please attend the “Budget and Commitment Control” Workshop
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So, What’s the Color of Money?
FL State of Florida—Yellow Budget-Based Fund Codes 101, 102, 103 Sponsored Projects—Purple Fund Codes 201, 209 SP
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So, What’s the Color of Money?
CU Component Units—Green Cash-Based For example: Fund Codes 171, 213 Auxiliaries—Blue For example: Fund Codes 149,151 AUX
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Allowable Expenditures
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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”
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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
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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
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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
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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
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What’s an “Allowable Expenditure”?
As noted: A letter of justification for these allowed purchases will be required Fund Codes 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
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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
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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)
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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
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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
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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
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Regardless of Funding Source
All disbursements and expenditures also must have written documentation suitable for auditing purposes
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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
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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 SP
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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
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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
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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
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State Appropriations
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State Appropriation State of Florida State Appropriation FL
UF CFO and Provost Office working with VPs, UF Deans, etc., decide how much of this “bucket” can be used by your department Fund Code 101 Fund Code 103 Fund Code 102
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State Appropriations FL 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
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State Appropriation funds
FL The following are examples of items that are not normally allowed to be purchased or paid for with State Appropriations: 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
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Reference Guide FL For State Appropriations, visit the following web site for more details about “allowable expenditures”
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State Appropriation Fund Codes
FL 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
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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
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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
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Case Study What would the solution be in most instances?
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Sponsored Projects
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Division of Sponsored Research
Sponsored Projects Federal and non-federal funding agencies Sponsored Project funding Contracts, Grants, Coop Agreements Division of Sponsored Research Fund Code 201 Fund Code 209
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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 funds
With 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
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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! SP 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
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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
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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
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Jargon Alert! SP 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
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Jargon Alert! SP 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! SP 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:
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Division of Sponsored Research
Sponsored Projects SP Division of Sponsored Research Sponsored Project Funding Each SP Indirect Costs Direct Costs
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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 Indirect Costs
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Division of Sponsored Research
Sponsored Projects SP Division of Sponsored Research Sponsored Project Funding Each SP Indirect Costs Direct Costs
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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
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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
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Fund Code 211 Returned Overhead R Indirect Costs
Did you notice that the color changed from purple to pink? We’ll be using the color pink in this and other workshops to denote returned overhead and residual balances Your Unit’s Returned Overhead Fund (211)
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Fund Code 211 R 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)
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Fund Code 211 R 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
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Residual Balances Residual Balances R
Unspent Funds Your Unit’s Residual Balance Fund (212) Did you notice that the color changed from purple to pink?
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Fund Code 212 R “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
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Fund Code 212 R “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
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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, using these Fund Codes Fund Code 221—IFAS Exp. Station Fund Code 222—IFAS Ext. Services
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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
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Case Study What would the solution be in most instances?
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Component Units (including Direct Support Organizations)
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Component Units Donations, revenue from licensing, clinic fees
CU Donations, revenue from licensing, clinic fees Component Units (CUs) For example: UFF—UF Foundation UFRF—UF Research Foundation Faculty Practice Plans Your Unit
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Component Units CU 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
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Component Units CU 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
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Component Units CU 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
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Component Units CU 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
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Component Units CU 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
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Let’s Look at a Few Examples Fund Codes Associated with Component Units
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Fund Code 171 Transfer from Component Units
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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, F would be the “Source of Funds” code to indicate funds were from the Patrons of the Libraries Fund
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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)
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Fund Code 171 Faculty Practice Plans (FPP)
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FPP Funds—Fund Code 171 CU 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
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FPP Funds—Fund Code 171 CU 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
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FPP Funds—Fund Code 171 CU 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
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FPP Funds—Fund Code 171 CU 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
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FPP Funds—Fund Code 171 CU 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
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FPP Funds—Fund Code 171 Also, not allowed:
CU 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
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FPP Funds—Fund Code 171 Also, not allowed:
CU 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
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FPP Funds—Fund Code 171 Visit the following web site for more details:
CU Visit the following web site for more details: Some colleges may have additional restrictions or guidelines governing how FPP funds may be used
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Fund Codes 213
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UFRF Allocations—Fund Code 213
CU 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
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UFRF Allocations—Fund Code 213
CU 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
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Case Study What would the solution be in most instances?
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Auxiliaries Fund Codes 14x, 15x, and 16x
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Auxiliaries Customers Auxiliary Revenue funds 14x, 15x, 16x Fund Codes
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Auxiliary funds AUX 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
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Auxiliary funds AUX 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”
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Auxiliary funds AUX 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
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Auxiliary funds AUX 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
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Auxiliary Fund Codes AUX 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
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Auxiliary funds Visit the following web site for more details:
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Case Study What would the solution be in most instances?
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FYI Other Funding Sources
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Capital Projects CP 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
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Fund Code 179 & 279 Other Miscellaneous
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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
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Restricted Incidental—Fund Code 279
Fund Code 279—Restricted Incidental Fund Incidental revenues that are restricted to a specific department or purpose.
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Fund Codes 181 and 182 IFAS Incidental Funds
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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
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Fund Codes 185 and 186 HSC Trust Funds
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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
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Let’s Complete a Comprehensive Review
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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
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Any Questions?
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Receiving Credit for this Class
Sign or initial the attendance roster to get credit for attending today’s workshop
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Evaluations Please … Give us your feedback about today’s workshop by completing an evaluation when you receive it via
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Thank you for attending
Thank you for attending! Offered by Finance and Accounting in partnership with …
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