1. The Color of Money at UF A Guide to How Moneys May Be Spent at UF

2. 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

3. 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.

4. 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

5. 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

6. 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

7. Our Agenda Basic groundwork Fund accounting: source of funds
Accounting system: myUFL, ChartFields, Fund Codes/funds/Source of Funds
Summary of general funding

8. 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

9. Our Agenda Allowable expenditures General Fund specific
Other funding sources—FYI
So, let’s get started!

10. 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!

11. 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

12. 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)

13. 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

14. 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

15. 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

16. Other Key Concepts

17. Key Concepts myUFL/PeopleSoft ChartFields funds Fund Codes
Source of Funds
Budget-based
Cash-based

18. 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

19. my.ufl.edu

20. 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

21. This is an example of how the ChartFields appear in a requisition

22. “Funds”
Moving forward today, we will also reference these three concepts that are important to distinguish:
“funds”
Vs.
Fund Code
Source of Funds

23. “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”

24. 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.

25. 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)

26. 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

27. 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

28. Why So Complex?
In combination, these concepts work together to provide accountability for how our moneys are spent

29. 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.)

30. 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

31. General Funding Sources at UF

32. 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

33. 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)

34. 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”

35. 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

36. 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)

37. UF’s Total Funding FY

38. 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?

39. State of Florida

40. 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

41. Funding Sources at UF Funding source FL State of Florida Legislature
Their funding comes from state taxes, fees, and other sources of state revenue

42. Funding Sources at UF Funding source UF lingo FL
State of Florida Legislature
State Appropriations
E&G—Education and General
General Revenue
State Funds

43. 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

44. 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

45. 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

46. 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

47. 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

48. Sponsored Projects

49. 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

50. 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

51. 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

52. 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

53. Funding Sources at UF Funding source UF lingoSP
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)

54. Funding Sources at UF Funding source UF lingoSP
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

55. Component Units (including Direct Support Organizations)

56. 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

57. 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

58. 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)

59. Funding Sources at UF Funding source CU
Component unit employees are not always UF employees

60. 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

61. Funding Sources at UF Funding source UF lingoCU
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

62. Funding Sources at UF Funding source UF lingoCU
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

63. Funding Sources at UF Funding source UF lingoCU
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)

64. 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

65. 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

66. Funding Sources at UF Funding source UF lingoCU
Funding source
UF lingo
Designated Fund Code ChartField
Component Units (CUs)
Example #3
Faculty Practice Plans
Fund Code 171—Transfer from Component Units

67. DSOs UF Foundation UF Research Foundation UF Athletic AssociationCU
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

68. Affiliates FL Clinical Practice Association UF Jacksonville PhysiciansCU
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

69. Auxiliary Funds

70. Auxiliaries
Customers
Auxiliary Revenue funds
Fund Codes 14x, 15x, 16x

71. Funding Sources at UF Funding source AUX
Sale of goods and services to customers: employees, departments, students, members of community

72. 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

73. 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)

74. 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

75. Any Questions?

76. Before We Move On State AppropriationsFL 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)

77. 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

78. 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)

79. 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

80. 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

81. 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

82. 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

83. Budget- vs. Cash-Based
This distinction determines your “available spending authority”
To learn more, please attend the “Budget and Commitment Control” Workshop

84. 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

85. 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

86. Allowable Expenditures

87. 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”

88. 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

89. 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

90. 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

91. 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

92. 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

93. 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

94. 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)

95. 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

96. 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

97. 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

98. Regardless of Funding Source
All disbursements and expenditures also must have written documentation suitable for auditing purposes

99. 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

100. 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

101. 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

102. 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

103. 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

104. State Appropriations

105. 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

106. 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

107. State Appropriation fundsFL
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

108. Reference Guide FL
For State Appropriations, visit the following web site for more details about “allowable expenditures”

109. State Appropriation Fund CodesFL
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

110. 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

111. 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

112. Case Study What would the solution be in most instances?

113. Sponsored Projects

114. 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

115. Sponsored Project funds
At UF, a significant amount of funding comes from outside sources
These moneys are governed by regulations associated with “Sponsored Projects”

116. 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

117. 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

118. 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

119. 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

120. 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

121. 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

122. 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

123. 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

124. 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

125. 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:

126. Division of Sponsored Research
Sponsored Projects SP
Division of Sponsored Research
Sponsored Project Funding
Each SP
Indirect Costs
Direct Costs

127. 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

128. 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

129. 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

130. Division of Sponsored Research
Sponsored Projects SP
Division of Sponsored Research
Sponsored Project Funding
Each SP
Indirect Costs
Direct Costs

131. 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

132. 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

133. 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)

134. 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)

135. 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

136. 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?

137. 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

138. 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

139. 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

140. 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

141. Case Study What would the solution be in most instances?

142. Component Units (including Direct Support Organizations)

143. Component Units Donations, revenue from licensing, clinic feesCU
Donations, revenue from licensing, clinic fees
Component Units (CUs)
For example:
UFF—UF Foundation
UFRF—UF Research Foundation
Faculty Practice Plans
Your Unit

144. 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

145. 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

146. 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

147. 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

148. 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

149. Let’s Look at a Few Examples Fund Codes Associated with Component Units

150. Fund Code 171 Transfer from Component Units

151. 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

152. 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)

153. Fund Code 171 Faculty Practice Plans (FPP)

154. 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

155. 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

156. 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

157. 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

158. 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

159. 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

160. 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 

161. 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

162. Fund Codes 213

163. UFRF Allocations—Fund Code 213CU
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

164. UFRF Allocations—Fund Code 213CU
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

165. Case Study What would the solution be in most instances?

166. Auxiliaries Fund Codes 14x, 15x, and 16x

167. Auxiliaries Customers Auxiliary Revenue funds 14x, 15x, 16x Fund Codes

168. 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

169. 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”

170. 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

171. 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

172. 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

173. Auxiliary funds Visit the following web site for more details:

174. Case Study What would the solution be in most instances?

175. FYI Other Funding Sources

176. 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

177. 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

178. 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

179. 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

180. 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

181. 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

182. 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

183. 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

184. 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

185. 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

186. Fund Code 179 & 279 Other Miscellaneous

187. 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

188. Restricted Incidental—Fund Code 279
Fund Code 279—Restricted Incidental Fund
Incidental revenues that are restricted to a specific department or purpose.

189. Fund Codes 181 and 182 IFAS Incidental Funds

190. 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

191. Fund Codes 185 and 186 HSC Trust Funds

192. 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

193. Let’s Complete a Comprehensive Review

194. 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

195. Any Questions?

196. Receiving Credit for this Class
Sign or initial the attendance roster to get credit for attending today’s workshop

197. Evaluations
Please …
Give us your feedback about today’s workshop by completing an evaluation when you receive it via

198. Thank you for attending
Thank you for attending! Offered by Finance and Accounting in partnership with …