Funding Sources and Coding

DEFINING TYPES AND SOURCES OF ACCOUNTS DEFINING PURPOSE AND USE OF FUNDS PAYMENT NET WEBSITE ACCOUNT CODING SPECIFIC EXAMPLES Items to be covered

Defining Account Types State Appropriations (Educational & General (E&G) Funds) (01xxxx) Cash Accounts (02xxx) Hospitality Accounts (02xxx) Development Accounts (02xxx) Student Activity Accounts (Sxxxx) Course Fees (01xxx) Agency Funds (Axxxx) Grant Funds (02xxx)

State Appropriations State appropriated funds are an allocation of state revenues by the legislature to the University State appropriations must be spent in the year they are allocated Can’t pay for future year items

State Appropriations State appropriations are received by the university on a monthly basis The funds are pooled into one large account at the state – 290 funds (bank account #) Organization numbers typically begin with 01xxx. The university assigns these funds to departments using budgets.

Cash Accounts All of the following are cash accounts: Hospitality Funds Development Funds Student Activity Funds Agency Funds Grant Funds

Cash Accounts The state defines cash accounts as Agency Special Accounts Cash Accounts are 702 (bank #) funds at the state Cash Account Balances roll forward at year end Cash organization codes typically start with 02xxx

Hospitality Funds Source - Funds generated by the Great Plains Contract Amounts designated by the President for the Vice Presidents use Controversial to say the least.

Development Funds Source is usually donated funds Must follow the donor purpose in spending the funds, can’t violate state purchasing regulations.

Student Activity Funds Source of revenue is fees collected from the students of the University The University handles these funds like appropriations - meaning UCO assigns them through budgets

Course Fees Funds collected from the students to enhance their classroom experience Purchases must meet purpose of course fees (Facility/Equipment, Lab/Materials, Special Instruction) Spending must directly benefit the student

Agency funds Source of funds are usually student club membership dues or club fund raisers These are funds held in trust by the university The state does not guarantee payment from these funds – this is why procard can’t be used with agency funds Funds deposited as Agency funds don’t qualify for UCO’s tax deduction benefit

Grant Funds Sources – Federal money (430 funds) State Money (702 funds) Use of grant funds must follow the purpose of the grant and state purchasing guidelines Verify the ending date of the grant before using Procard to pay for items – timing delays can cause grant funds to be overspent

State Regulations 155 RECEIPT OF MONIES BY STATE AGENCIES Monies received by a state agency, regardless of revenue source must be deposited in state treasury funds. No monies will be deposited in banks or other depositories unless such bank account is maintained by the State Treasurer. A.G. Opinion 82-71, - - This opinion further addresses that state funds must be used for public purposes. OSF Procedure Manual Chapter 300 – Section 318

State Prohibited Purchases Items for personal use or consumption e.g. coffee/water for employee consumption in the office (Allowed for business purposes, meeting refreshments, visitors, events etc.) Gift cards, flowers for birthdays/condolence, birthday cakes, cards, retirement gifts Donations by gift OSF Procedure Manual Chapter 300 Section 318

What do these mean to me? All funds at the treasurers office are funds that belong to the state The check that is written to pay the bill says University of Central Oklahoma regardless of the source All purchases must meet the public purpose criteria Agency funds are specifically excluded by the state

Purpose of different types of cash accounts Purpose is the key. Development Funds – to be spent on developing the department. Training for faculty/staff Departmental Equipment/Supplies Ask the question: Does this purchase further development of the department?

Purpose of Funds Hospitality Funds – Meal for guest speaker as a courtesy that would not otherwise be allowed. Must follow state purchasing policies Student Activity Funds - purchases for UCOSA approved activities

Purpose of Funds E.g. Flowers for a pageant that is held every year for the students is allowable Student Activity Fund Spending must be approved in advance by Student Activity Budget Manager Course Fees - Does the purchase directly benefit the student? Agency Funds - State does not impose spending guidelines on agency funds

Purpose of Funds Grant funds – must meet grant requirements and grant dates Usually reporting back to the granting agency is required – all grant spending is audited Special permission required from grant agency to spend outside of specified requirements

Summary Ask these questions before the money is spent: Does the purchase meet the criteria for the source of funds? Can I justify to the donor/student/state the public use of the purchase?

References Purchasing Website Link to OSF Procedure Manual chapter 300

PaymentNet Website for Procard Charges

Account Coding Ask the question: What is the item to be used for not what is the item.

Administration Portal Instructions on how to log on to Portal: Departments > General Accounting > Documents & Forms > DOCX - Financial Security Instructions Update Then open portal under Applications Select Finance Account Codes on the left

State Defined Expenditure Codes State of Oklahoma has many agencies underneath it’s umbrella – Tourism, Corrections, Education State codes have a broader scope than just Higher Education The state compiles all agencies financial data at year end into one report (CAFR)

Overarching Principal Account code Laboratory & Medical Supplies Assumption would be to code lab supplies to this account number Further defined by state as Payments for purchase of supplies, materials, etc. used in diagnostic laboratory and medical testing and other testing when a service is not provided (e.g., reagents, glassware, x-ray film, laboratory animals, etc.). (UCO e.g. student health center supplies. Educational labs see Educational supplies) Account code Laboratory & Medical Supplies Assumption would be to code lab supplies to this account number Further defined by state as Payments for purchase of supplies, materials, etc. used in diagnostic laboratory and medical testing and other testing when a service is not provided (e.g., reagents, glassware, x-ray film, laboratory animals, etc.). (UCO e.g. student health center supplies. Educational labs see Educational supplies)

Specific Examples Toner Cartridges – What or who are they being used for? Used in office – Office supplies expendable Used for computer lab – Educational Supplies Data Processing Supplies – NOTE: Does not include data processing supplies utilized strictly within a standard office

Specific Examples Information Services - Payments for services and products used in collection and dissemination of information to the general public and for informational purposes within an agency, such as clipping service, newsletters, newspaper/magazine subscriptions, subscriptions for Internet service, etc. (UCO e.g. - Wall Street Journal, Survey Monkey, for Library subscriptions see ) OTHER COMPUTER RELATED SERVICES - Computer & Software Mgt. Payments for services providing computer related services (except custom programming, systems integration design, and facilities management). Examples are computer disaster recovery services and software installation services.

Specific Examples Scantron Forms – What are they being used for? Educational Supplies - Payment for purchase of supplies used for education and training conducted in a classroom or other organized instructional setting. (NCS and Scantron forms, test booklets for classroom purposes that includes service for scoring) Educational Testing

Specific Examples EXAMINATIONS Payments for purchase of examination and test materials (e.g., applicant employment tests, employee promotional tests, certification tests administered by controlling boards, licensing examinations, etc.). May also include the payment of fees associated with administering tests and/or examinations by a third party. (UCO e.g. Exams for acceptance, test booklets for assessment that include service for scoring, counseling and ca- reer service assessment testing, on-line examinations) Assessment Testing

Specific Examples UCO Fixed Asset Capitalization Policy – Any single item $2, or greater, includes the cost of shipping and installation – code to 741xx account codes Office Supplies Non Expendable has a state requirement of $500 or less. If greater use 741xxx account codes. UCO Fixed Asset Capitalization Policy – Any single item $2, or greater, includes the cost of shipping and installation – code to 741xx account codes Office Supplies Non Expendable has a state requirement of $500 or less. If greater use 741xxx account codes.

Specific Examples Purchase of Refrigerator – This is not an office supply (73613) The amount is less than $2, for capitalization Still code it to – Equipment & Furniture – Residential, Educational and Institutional Purchase of Refrigerator – This is not an office supply (73613) The amount is less than $2, for capitalization Still code it to – Equipment & Furniture – Residential, Educational and Institutional

Commodity Codes Commodity Codes are required for requisitions Commodity Codes are directly tied to the account number you are going to charge to Work backwards to get your commodity code – First define what you are purchasing and what account number it should be charged to, then find the commodity code associated with the account number Commodity Codes are required for requisitions Commodity Codes are directly tied to the account number you are going to charge to Work backwards to get your commodity code – First define what you are purchasing and what account number it should be charged to, then find the commodity code associated with the account number

Summary Remember to ask the question – What is the item to be used for, not what is the item. Use the tools that have been provided to make your job easier.

Random Thoughts Is your procard default account number set to office supplies? Is this what you purchase the most? Are you depositing your revenues using the correct revenue account codes? Are donations being recorded as donations, are sales of items being recorded as sales income? Banner 8

This is a shot of your brain before and after this class.

Questions

Contact Information Lisa Harper, x2753 Kathy Constien x2598 Cindy Guthrie x 2497 Terrie Silvers X 2398 Thank you.