Presentation is loading. Please wait.

Presentation is loading. Please wait.

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

Similar presentations


Presentation on theme: "The Color of Money at UF A Guide to How Moneys May Be Spent at UF."— Presentation transcript:

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

2 Materials Rest Rooms Cell Phones Questions Fire Drill Name Plates Housekeeping

3 When Class is Complete Please sign roster. Evaluation: Let us know what you think! Class Completion

4 Today, We Will: Introduce UFs sources of funds –Were a complex place –Your department or work units 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 –Well 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 Todays 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 its 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 sourcesFYI So, lets get started!

10 How is UF Different? Private Business: –Emphasis on profit –Return to investors –Company relies on investors and revenue UF: –Emphasis is on accountabilityhow moneys are spent –Variety of funding sourcesfor ex.: –State of Florida –Sponsored Projects –Component Units –Auxiliaries The focus of todays 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 Conceptually … Moneys come to UF from a variety of sources Fund Code These moneys are deposited into funds (identified by different Fund Codes) depending on the source and how the funds can be used Fund Code

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 University of Floridas 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 Standardized numbers that make up backbone of UFs 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 ChartFields 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 Vs. –Source of Funds

23 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 … Source of Funds W Source of Funds X Source of Funds Y Source of Funds Z Fund Code 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

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, Whats the Color of Money? Lets begin by looking at four of UFs funding sources: –State of FloridaYellow –Sponsored ProjectsPurple –Component UnitsGreen –AuxiliariesBlue FL CU SP AUX

33 Funding Sources at UF UF gets moneys from … State of Florida Legislature This funding comes from the states 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 UFs allocation from the state (Educational Enhancement Trust Fund) FL

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 SP

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 CU

36 Funding Sources at UF UF gets moneys from … Sale of goods and services to customers employees, departments, students, members of communityby our Auxiliary units (like the J. Wayne Reitz Union or Transportation and Parking) AUX

37 UFs Total Funding FY

38 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 fundingwhile others have none Think about it: What are the funding sources for your department? SP

39 State of Florida

40 State Appropriation State of FloridaState Appropriation Fund Code 101 Fund Code 102 Fund Code 103 UF Chief Financial Officer (CFO) and Provost Office working with VPs, UF Deans, etc., decide how much of this bucket can be used by your department

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

42 Funding Sources at UF Funding source UF lingo State of Florida Legislature State Appropriations E&GEducation and General General Revenue State Funds FL

43 Funding Sources at UF Funding source UF lingoDesignated Fund Code ChartField State of Florida Legislature State Appropriations E&GEducation and General General Revenue State Funds Fund Code 101E&G Gen Rev, Main Campus Fund Code 102E&G Gen Rev, HSC Fund Code 103E&G Gen Rev, IFAS If you work on main campus, you will spend from Fund Code 101 FL

44 Funding Sources at UF Funding source UF lingoDesignated Fund Code ChartField State of Florida Legislature State Appropriations E&GEducation and General General Revenue State Funds Fund Code 101E&G Gen Rev, Main Campus Fund Code 102E&G Gen Rev, HSC Fund Code 103E&G Gen Rev, IFAS If you work at the HSC, its possible you will spend from Fund Codes 101 and 102. If youre at the Vet School, you also might spend from Fund Code 103 FL

45 Funding Sources at UF Funding source UF lingoDesignated Fund Code ChartField State of Florida Legislature State Appropriations E&GEducation and General General Revenue State Funds Fund Code 101E&G Gen Rev, Main Campus Fund Code 102E&G Gen Rev, HSC Fund Code 103E&G Gen Rev, IFAS If you work in IFAS, you might spend from Fund Codes 101 and 103 FL

46 Funding Sources at UF Funding source UF lingoDesignated Fund Code ChartField Student tuition State Appropriations E&GEducation and General General Revenue State Funds As an FYI: Fund Code 121Student Fees, Main Campus Fund Code 122Student 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 FL

47 Funding Sources at UF Funding source UF lingoDesignated Fund Code ChartField Lottery funds (Educational Enhancement Trust Fund) State Appropriations E&GEducation and General General Revenue State Funds As an FYI: Fund Code 111Ed Enhancement, Main Campus Fund Code 112Ed Enhance, HSC Fund Code 113Ed 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 FL

48 Sponsored Projects

49 Federal and non-federal funding agencies Sponsored Project funding –Contracts, Grants, Coop Agreements Sponsored Projects Fund Code 201 Fund Code 209 Division of Sponsored Research

50 Funding Sources at UF Funding source Sponsored Projects Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators SP

51 Funding Sources at UF Funding source UF lingo Sponsored Projects Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators Principal investigators (PIs) are the designated personnel (typically faculty) who secured the funding and who will be responsible for the funded research activity SP

52 Funding Sources at UF Funding source UF lingo Sponsored Projects Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators Project is the ChartField used in myUFL or PeopleSoft to identify activity associated with Sponsored Projects Sponsored Projects or Programs SP

53 Funding Sources at UF Funding source UF lingoDesignated Fund Code ChartField Sponsored Projects Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators Sponsored Projects Projects C&Gor Contracts and Grants Fund Code 201C&G Federal Restricted Fund Code 209C&G Other Restricted (Non-Federal) SP

54 Funding Sources at UF SP Funding source UF lingoDesignated Fund Code ChartField Sponsored Projects Federal and non-federal contracts and grants are awarded to UF faculty who are known as principal investigators Sponsored Projects Projects C&Gor 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 Donations, revenue from licensing, clinic fees Component Units (CUs) For example: –UFFUF Foundation –UFRFUF Research Foundation –Faculty Practice Plans For example Fund Code 171 Component Units

57 Funding Sources at UF Funding source Component Units (CUs) A variety of outside sources fund CUs, which can be Direct Support Organizations (DSOs) or other affiliates CU

58 Funding Sources at UF Funding source 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) CU

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

60 Funding Sources at UF Funding source UF lingo Component Units (CUs) Example #1 UF Foundation, or UFFIts funding comes from fundraising, donations, and other investments CU

61 Funding Sources at UF Funding source UF lingoDesignated Fund Code ChartField Component Units (CUs) Example #1 UF Foundation, or UFFIts funding comes from fundraising, donations, and other investments Fund Code 171Transfer from Component Units CU

62 Funding Sources at UF Funding source UF lingoDesignated 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 UFs research efforts Fund Code 213UFRF Allocations CU

63 Funding Sources at UF Funding source UF lingoDesignated 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 209C&G Other Restricted (Private Grants) CU

64 Funding Sources at UF Funding source UF lingo Component Units (CUs) Example #3 The Faculty Practice Plans also known as the Clinical Practice Plans are affiliates CU

65 Funding Sources at UF Funding source UF lingo Component Units (CUs) Example #3 This revenue comes primarily from patient fees for services provided by UFs clinics CU

66 Funding Sources at UF Funding source UF lingoDesignated Fund Code ChartField Component Units (CUs) Example #3 Faculty Practice Plans Fund Code 171Transfer from Component Units CU

67 DSOs UF Foundation UF Research Foundation UF Athletic Association Gator Boosters UF Law Center Association FL Foundation Seed Producers FL 4-H Club Foundation SW FL Research and Education Foundation Citrus Research and Education Foundation FL Leadership and Education Foundation Treasure Coast Agricultural Research Foundation UF Alumni Association UF Investment Corporation CU

68 Affiliates FL Clinical Practice Association UF Jacksonville Physicians Faculty Associates FL Health Professions Association Nursing Faculty Practice Association Pharmacy Faculty Practice Association Veterinary Medicine Faculty Association UF Jacksonville Healthcare UF Faculty Clinic/Jacksonville Shands Teaching Hospital and Clinics University Village Apartments CU

69 Auxiliary Funds

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

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

72 Funding Sources at UF Funding source UF lingo Sale of goods and services to customers: employees, departments, students, members of community Auxiliaries are UF entities that are generally self supporting and charge for their services AUX

73 Funding Sources at UF Funding source UF lingoDesignated 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 149Aux-Other Funds Fund Code 159 RCM Support Unit Fund Fund Code 151Aux- Working Capital (Physical Plant) AUX

74 Funding Sources at UF Fund 149 Animal Care Services Center for the Performing Arts WRUF Radio Health Net University Press OConnell Center Business Services Fund 159 RCM Support Unit Fund Other Sources –Loans Funds Admin. –Soft Drink Commissions –Financial Aid Auxiliary –OH, Returned Check Fee AUX

75 Any Questions?

76 Before We Move On State Appropriations Fund Code 101E&G Gen Rev, Main Campus Fund Code 102E&G Gen Rev, HSC Fund Code 103E&G Gen Rev, IFAS Sponsored Projects Fund Code 201C&G Federal Restricted Fund Code 209C&G Other Restricted (Non- Federal) SP FL

77 Before We Move On Component Units UFF and other CUs Fund Code 171 Transfer from Component Units UFRF Fund Code 213UFRF Allocations Fund Code 209C&G Other Restricted (Private Grants) Faculty Practice Plans Fund Code 171 Transfer from Component Units CU SP

78 Before We Move On Auxiliaries For example: Fund Code 141 – Reitz Union Fund Fund Code 149 Aux-Other Funds Fund Code 151Aux- Working Capital (Physical Plant) AUX

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 walletyou 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, Whats the Color of Money? State of FloridaYellow –Budget-Based –Fund Codes 101, 102, 103 Sponsored ProjectsPurple –Budget-Based –Fund Codes 201, 209 SP FL

85 So, Whats the Color of Money? Component UnitsGreen –Cash-Based –For example: Fund Codes 171, 213 AuxiliariesBlue –Cash-Based –For example: Fund Codes 149,151 CU AUX

86 Allowable Expenditures

87 Whats an Allowable Expenditure? Lets now discuss how these moneys can and cannot be used –Well do this by exploring the concept of allowable expenditures

88 Whats 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 Whats 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 individuals preference for temperature

90 Whats 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 organizations convenience

91 Whats 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 Whats 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 organizations convenience, however, it may be approved as a perquisite FL

93 Jargon Alert! Whats 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 Well 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 wayssalaries, 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 flexibilityfor 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 flexibilityalthough they still must only spend funds on relevant and appropriate expenses for their business enterprise AUX

103 Allowable Expenditures Lets look more closely at the differences across funding sources of what constitutes an allowable expenditure Its 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 FloridaState Appropriation Fund Code 101 Fund Code 102 Fund Code 103 UF CFO and Provost Office working with VPs, UF Deans, etc., decide how much of this bucket can be used by your department FL

106 State Appropriations As a general rule, these funds can be spent in a wide range of wayssalaries, office supplies, travel, etc.so long as the funds are being spent for relevant operating expenses FL

107 State Appropriation funds Alcoholic beverages Portable heaters Fans Refrigerators Stoves/microwaves Coffee pots and supplies Picture frames Wall hangings Various decorations First class travel Food items (except for recruitment) Gifts Political contributions The following are examples of items that are not normally allowed to be purchased or paid for with State Appropriations: FL

108 Reference Guide For State Appropriations, visit the following web site for more details about allowable expenditures guide/Reference_Guide_For_State_Expendit ures.pdf FL

109 State Appropriation Fund Codes Fund Codes associated with State Appropriations are: –Fund Code 101E&G Gen Rev, Main Campus –Fund Code 102E&G Gen Rev, HSC –Fund Code 103E&G Gen Rev, IFAS No Source of Funds ChartField is required when spending State Appropriations FL

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 Federal and non-federal funding agencies Sponsored Project funding –Contracts, Grants, Coop Agreements Sponsored Projects Fund Code 201 Fund Code 209 Division of Sponsored Research SP

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 SP

116 Jargon Alert! Whats 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 SP

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 SP

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 SP

119 Sponsored Project funds Sometimes there also are costs that are unallowablethat is, they cannot be designated as Direct or Indirect –These costs must be identified and covered by a different funding source SP

120 Jargon Alert! This is governed by the U.S. Office of Management and Budget (OMB) –Assists in overseeing federal budget preparation and supervises its administration –Leads development of government-wide policy: To assure grants are managed properly And federal dollars are spent in accordance with applicable laws and regulations SP

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 SP

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 SP

123 Jargon Alert! In conjunction with the terms Direct or Indirect Costs, you may also hear: Cost Accounting Standards (CAS) –Principles for determining costs applicable to grants, contracts, and other agreements with educational institutions as established by the federal governments Office of Management and Budget (OMB) Circular A-21 SP

124 Jargon Alert! Essentially, CAS requires consistency in how costs associated with grants and contracts are estimated, accumulated, and reported –Provides guidance as to what is allowable vs. unallowable costs –And how both should be treated CAS also establishes consistency in the accounting periods used for cost accounting UFs related practices must comply with CAS SP

125 Jargon Alert! Exceptions to the University's CAS policy may be requested by submitting a request to the Division of Sponsored Research Visit the following web site for more details about CAS as well as allowable charges: ok/researcher_handbook/section4.html#RTF ToC4 SP

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

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 SP

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 SP Indirect Costs

130 Sponsored Projects Sponsored Project Funding Each SP Direct Costs Division of Sponsored Research SP Indirect 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 UFs sponsored research program Indirect Costs are also referred to as Facilities and Administrative (F&A) costs Facilities and Administrative costs are billed against Sponsored Projects periodically to recover the costs of managing UF and its research activities SP

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 SP

133 Fund Code 211 Returned Overhead Indirect Costs Your Units Returned Overhead Fund (211) Did you notice that the color changed from purple to pink? Well be using the color pink in this and other workshops to denote returned overhead and residual balances R

134 Fund Code 211 At the end of each year, some of the Indirect Costs are returned to the colleges, departments, and PIs –When Indirect Costs are returned, they are associated with Fund Code 211 (Returned Overhead) R

135 Fund Code 211 –Use of Returned Overhead is restricted by state statute and may be used only to support research, research-related activities, sponsored training programs, or extension –Fund Code 211 is a cash-based fund R

136 Residual Balances Unspent Funds Your Units Residual Balance Fund (212) Did you notice that the color changed from purple to pink? R

137 Fund Code 212 Residual Funds, on the other hand, are unused funds that were not needed to fully execute the requirements of the Sponsored Project –Some unused funds may need to be returned to the sponsor –Funds not returned to the sponsor are returned to the PI, his or her work unit, or the appropriate vice president R

138 Fund Code 212 Residual Funds are associated with Fund Code 212, which is a cash-based fund Residual Funds are discretionary moneys restricted for purposes of supporting research R

139 FYIIFAS 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 221IFAS Exp. Station –Fund Code 222IFAS Ext. Services

140 FYIIFAS 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 Donations, revenue from licensing, clinic fees Component Units (CUs) For example: –UFFUF Foundation –UFRFUF Research Foundation –Faculty Practice Plans Your Unit Component Units CU

144 Component Units Expenditure rules are guided by each CUs Memorandum of Understanding (MOU) and any donor-specific restrictions –Generally, the expenditures need to be reasonable and for and on behalf of UF and its mission –All expenditures must have written justification that reflects purpose and benefit CU

145 Component Units There are four basic criteria which determine the legitimate use of CU funds: –The use must be reasonable and benefit UF –If applicable, the use must fall within the donor's intent for the gift –The use must not jeopardize the CUs tax- exempt status –The use must comply with all applicable statutes and regulations CU

146 Component Units Moneys spent by the CU for the purpose of accomplishing the CUs express mission, including travel and entertainment expenses for fundraising and development purposes, are processed directly by the CU in accordance with its policies These funds are not transferred to UF CU

147 Component Units It is important to judge all expenditures in light of the CU's responsibility to the public and its donors –All disbursements and expenditures must have written documentation suitable for auditing purposes Source of Funds is a required ChartField for these transactions CU

148 Component Units In accordance with IRS regulations, gifts to employees generally must have a value of $25 or less to avoid being taxable income –Cash and gift certificates are always considered taxable income and therefore may not be given –Gifts for significant occasions (e.g., retirement) may be eligible for exception to these regulations; please contact the CUs Accounting Department CU

149 Lets Look at a Few Examples Fund Codes Associated with Component Units

150 Fund Code 171 Transfer from Component Units

151 Transfer from CUsFund 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 CU

152 Transfer from CUsFund Code 171 Fund Code 171 is used by the UFF as well as othersfor example: –Citrus Research & Edu Foundation –Faculty Practice Plans –UF Law Center Association –University Athletic Assn (UAA) CU

153 Fund Code 171 Faculty Practice Plans (FPP)

154 FPP FundsFund Code 171 The funding source for the Faculty Practice Plans are the fees charged for services delivered by Health Science Center clinics in the: –College of Medicine –College of Dentistry –College of Public Health and Health Professions –College of Nursing –College of Pharmacy –College of Veterinary Medicine CU

155 FPP FundsFund Code 171 FPP funds can only be expended for purposes consistent with and supportive of the objectives of the respective College, the Health Science Center, and UF, and in accordance with approved faculty practice plans Source of Funds is a required ChartField –For example, HSCJXPH is the Source of Funds code to indicate funds came from UF Jacksonville Physicians CU

156 FPP FundsFund Code 171 Expenditures may be made, subject to appropriate approval, for items such as: –Enrichment of a dept.s academic activities –Provision of appropriate salary and certain fringe benefits to designated faculty of the respective College –Food and beverages for meeting, entertaining, or recruitment purposes if supported by a statement of business purpose and list of attendees –Coffee and water services for departments CU

157 FPP FundsFund Code 171 Items that should not be paid from FPP funds include personal or other expenses not having a direct business purpose associated with the mission of the College and University –Including gift certificates or monetary gifts for any purpose or any amount CU

158 FPP FundsFund Code 171 Permitted gifts must be nonmonetary, infrequent, and have a value of $75 or less –Employee length-of-service awards, such as retirement gifts, may have a value of up to $400, subject to IRS requirements CU

159 FPP FundsFund Code 171 Also, not allowed: Costs of holiday, retirement, or miscellaneous parties which are frequent, or for which the value of the benefits to participants is unreasonable, lavish, or extravagant Tobacco products Parking decals for personal automobiles Consultant fees to any state employee Petty cash funds unless approved by UFs Controller with approved controls, guidelines CU

160 FPP FundsFund Code 171 Also, not allowed: First class or business class air travel; air flight insurance –Although business class will be approved when travel exceeds 9 hours Contributions to political organizations (except if part of membership fee) Personal fines and penalties resulting from violation of the law or local government ordinances CU

161 FPP FundsFund Code 171 Visit the following web site for more details: procedures/disbursements/#expenditure Some colleges may have additional restrictions or guidelines governing how FPP funds may be used CU

162 Fund Codes 213

163 UFRF AllocationsFund Code 213 UFRF stands for University of Florida Research Foundation, Inc. This is a DSO that promotes, encourages, and provides assistance to UFs research activities A not-for-profit organization, UFRF provides a means by which discoveries, inventions, processes, and work products of UF faculty, staff, and students can be transferred from the laboratory to the public CU

164 UFRF AllocationsFund Code 213 Funds generated by licensing such discoveries are used to enhance research at UF Fund Code 213 is associated with UFRF allocations and is a cash-based fund These are discretionary moneys restricted for purposes of supporting research Source of Funds is a required ChartField CU

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

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

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

168 Auxiliary funds Auxiliary funds are generally governed by the same guidelines as funds from state appropriationshowever, not always May be expended for any goods and services necessary to fulfill the mission and programmatic needs for the auxiliary AUX

169 Auxiliary funds For example, Housing and Residence Education is an auxiliary It has customers (student residents) who pay a fee to live in the residence halls These funds are used, in turn, to support the Housing enterprise AUX

170 Auxiliary funds Auxiliary operations must operate similar to a private entity operating a business –Have discretion over determining appropriate programmatic needs (although some limitations still exist) –As with all funding sources, documentation to support expenditures is required for audit purposes AUX

171 Auxiliary funds The following goods and/or services may not be purchased with Auxiliary moneys: –Alcohol Except at Fee-Collected Events –Entertainment for visiting dignitaries –First class travel –Flowers AUX

172 Auxiliary Fund Codes Examples of Fund Codes associated with Auxiliary funds are: –142Transportation and Parking Services –143Distance, Continuing, and Executive Education –146HousingGeneral –149AuxOther Funds –151AuxWorking Capital (Physical Plant) No Source of Funds ChartField is required when spending Auxiliary funds AUX

173 Auxiliary funds Visit the following web site for more details: procedures/disbursements/#expenditure AUX

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 191Student 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) UFs 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, 901Scholarship 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 301Federal Loan Fund (Perkins Loans) –Revolving fund receives funding from federal government and UF matching Fund Code 331Regular 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 Presidents 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 192Concession Funds

184 Funding Sources at UF UF gets moneys from … State, private, and university sources to be used for capital projectsnew construction and major renovations of buildings Terms that you will hear include: –State AppropNon-operating –Capital Improvement Trust Fund (CITF) –PECOPublic Education Capital Outlay –Fund Codes 5XX

185 Capital Projects Capital projects are managed by UFs Facilities and Planning Office and IFAS Facilities The Construction Accounting Department serves as the chief budgetary and fiscal office for all construction projects undertaken by UF CP

186 Fund Code 179 & 279 Other Miscellaneous

187 Other MiscellaneousFund Code 179 Fund Code 179Other 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 Fund Code 279Restricted Incidental Fund –Incidental revenues that are restricted to a specific department or purpose. Restricted IncidentalFund Code 279

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 onlyalthough 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 Hospitals use HSC only Cash-based Auxiliary spending rules apply

193 Lets Complete a Comprehensive Review

194 Today, We: Introduced UFs 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 todays workshop

197 Evaluations Please … Give us your feedback about todays workshop by completing an evaluation when you receive it via

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


Download ppt "The Color of Money at UF A Guide to How Moneys May Be Spent at UF."

Similar presentations


Ads by Google