Deposits to University Accounts Selecting the correct object code SOM Business Managers’ Meeting April 28, 2010 Patsy Oliver, Asst. Dean Finance & Business Operations

Object Code Restrictions Contract Trust deposits may use only 41XX ◦ A service contract for example Gift deposits may use only 42XX Investment/Other Income deposits may use only 43XX Before making a deposit, ask yourself, “Is this a gift? A contract & grant? A contract trust?”

Object Codes – Contract Trusts Object CodeObject Code Description 4110EXCHG GRANT NON-PROF 4111EXCHG GRANT PRIV CO 4112EXCHG GRANT NC AGNCY 4113EXCHG GRANT FEDERAL 4114EXCHG GRANT OTHER 4115EXCHG GRANT INDR FED 4120EXCHG CONTR NON-PROF 4121EXCHG CONTR PRIV CO 4122EXCHG CONTR NC AGNCY Object CodeObject Code Description 4123EXCHG CONTR FEDERAL 4124EXCHG CONTR OTHER 4125EXCHG CONTR INDR FED 4130N-EXC GRANT NON-PROF 4131N-EXC GRANT PRIV CO 4132N-EXC GRANT NC AGENC 4133N-EXC GRANT FEDERAL 4134N-EXC GRANT OTHER 4135N-EXC GRANT FED INDR

Object Codes – Gifts Object CodeObject Code Description 4211GIFTS-ALUMNI 4213GIFTS-PARENTS 4214GIFTS-FAC/STAFF 4215GIFTS-STUDENTS 4217CAPITAL GIFTS & DON 4218GIFTS-ESTATE 4219GIFTS-OTHER INDIVID 4221FDNS PERSONAL-FAMILY 4222FDNS UNIV RELATED 4223OTHER FDNS & TRUSTS Object CodeObject Code Description 4225GIFTS BUSINESS 4226FD RAISING CONSORTIA 4227RELIGIOUS ORGANIZATN 4228STATE MATCHING GIFT 4229OTHER ORGANIZATIONS

Object Codes – Investment/Other Income Object CodeObject Code Description 4310ENDOWMENT INCOME 4315TRUSTEE INCOME 4320INVESTMENT INCOME 4321OTHER INV INCOME 4322SEC LENDING INCOME 4323INV INC STIF 4330INTEREST INCOME 4331INTEREST CONSOL LOAN 4332INTEREST INDEPEND LN 4333LEGAL FEES 4334COLLECTION COSTS 4335LATE CHARGES 4336INTERNAL COLLECTION 4337LOAN RET CK CHANGE Object CodeObject Code Description 4340GAIN ON SALE INVEST 4341INV FUND DISTRI GAIN 4342UNREALIZED GAIN-INV 4351PROC DEBT REFUND 4352NOTE PROCEEDS 4390OTHER INCOME 4391INV FUND DISTRIB INC 4392ANNUITY RESIDUAL 4393ADMIN FEE/RETURN 4394UNITRUST RESIDUAL 4395INV FUND RECEIPTS 4396FDN ADD INVESTMENT 4397REH RENTAL INCOME/RE SOM uses only object code You may see other 43xx codes in fund additions from the investment office.

Gifts – What is a gift? The term “gifts” refers exclusively to private contributions given for the benefit of the University even though such contributions are sometimes called “grants” by foundations and corporations. A gift is an outright or deferred contribution received from an individual, foundation, or corporation (the “donor”) for which no goods or services are expected, implied or forthcoming for the donor. In their discretion, the University, the Foundation or any University- associated entity may decline to accept a proposed gift from an individual, corporate or foundation donor.

Gifts – What does/does not belong in a gift account? What does belong in a gift account? ◦ A gift! See previous slide for definition. What does not belong in a gift account? ◦ Registration fees ◦ Conference fees ◦ Service contracts ◦ Etc. It’s not a gift if the donor has control of or signatory authority on the account. It’s not a gift if a faculty member contributes monies, with the intention of using the monies.

Gifts – Where does the gift go? UNC Policy ◦ “Only gifts from University-related foundations may be deposited through the Cashier's Office. All other gifts must be deposited through the Development Office,” ◦ Or in the case of SOM, the Medical Foundation (accompanied by a Gift Transmittal Form).

4390, Other Income Under no circumstances should gifts be deposited into object code is not a “catch all” 4390 is a flag for auditors

Other items to consider Conflict of interest Contributor cannot be the approver ◦ A faculty member who contributes monies, or designates his/her consultant monies as a gift cannot be the “Approved by” signature on the account. Generic gift account ◦ In general, a department should have one gift account to receive the majority of gifts to the department. However, a gift with restrictions may need a separate gift account. Financial reporting requirements ◦ Often, due to financial reporting requirements, a unique account must be issued for gifts, scholarships, etc.

UNC Policies on Gifts, Contributions, & Solicitations ments/Gift_Accpt_Policy.pdf

Selected Expense by Fund Group “Quick Reference Grid” (Revision effective 4/1/03) Expense Category Appropriated State Funds Receipt-Supported State Funds Facilities and Administrative Receipts Sponsored Research Trust Funds – Gifts, Endowment and Investment Income Internal Service Funds (Recharge Centers) Student and Institutional Auxiliaries, Health Care Clinics Business entertainment No, with limited exceptions. See ACT Business Entertainment Policy 23. No, unless specified in contract or grant award. Yes, as consistent with fund authority. See ACT Business Entertainment Policy 23. No. Yes, as consistent with fund authority. See ACT Business Entertainment Policy 23. Employee awardsNo. No, unless specified in contract or grant award. Yes, as consistent with fund authority. Yes, as consistent with fund authority and federal cost accounting standards. Yes, as consistent with fund authority. Membership dues Yes, if the membership is for the University and not the individual and the benefits exceed the costs. Yes, as consistent with the fund authority and departmental policy. No, unless specified in contract or grant award. Yes, as consistent with the fund authority and departmental policy. Moving Expenses Yes, if employee is moving within State government and for the benefit of the State. Other State regulations apply. Yes, for faculty and research staff. No, unless specified in contract or grant award. Yes, as consistent with fund authority. No. Yes, as consistent with fund authority. Office appliancesNo. Yes, as consistent with fund authority. No, unless specified in contract or grant award. Yes, as consistent with fund authority. No. Yes, as consistent with fund authority. Professional license and certificate fees No. Yes, as consistent with fund authority. No, unless specified in contract or grant award. Yes, as consistent with fund authority. Yes, as consistent with fund authority and federal cost accounting standards. Yes, as consistent with fund authority. Scholarships and fellowships Yes, as budgeted in a Financial Aid purpose account. No, unless specified in contract or grant award. Yes, as budgeted in a Financial Aid purpose account. No. Training GrantsNo. Yes. No, unless specified in contract or grant award. No.