Learn More About Auxiliary Funds

Anonymous — Mon, 03 Jan 2022 17:03:25 +0000

Learn More About Auxiliary Funds Anonymous (not verified) Mon, 01/03/2022 - 10:03

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What is the role of our auxiliary funds?

Auxiliaries (fund 2x’s) are those funds that account for units and activities that generate their own revenue. This can include large operations, such as Housing & Dining Services and Athletics, as well as smaller-scale activities such as t-shirt sales and conferences. Some units primarily use auxiliary funds, while others may only have only a few auxiliary SpeedTypes in their organization.

Types of Auxiliary Funds

Fund 20: TABOR Designated Enterprises

See chapter 4 of The Guide for more detailed information about these types of enterprises.

Technically speaking, these are units that are authorized to issue their own revenue bonds and receive less than 10 percent of their annual revenue in grants from all state and local governments. More plainly, these are units that are largely responsible for generating the bulk of their revenue, as they do not receive much general fund support. Spending in a fund 20 should support and reflect the good or service you are collecting revenue for. Some examples of fund 20 auxiliaries are:

Housing & Dining Services (HDS)
Athletics
CU Book Store
Cogen

Recreation Center
Wardenburg
UMC

Fund 22: Cost Share Funded by Auxiliary Dollars

Cost share represents the university’s contractual obligation to cover a portion of sponsored research costs in order to support the scope of work. We also have fund 12 cost share (monies from fund 10) and fund 32 cost share (monies from fund 34).

Spending in cost share should align with the award that the cost share supports. It should not only adhere to the restrictions of the award but should also be spent in tandem with the award.

Fund 26: Primarily to Account for Royalties & Residuals from Sponsored Projects Fiixed Price Contracts

Spending in a fund 26 is fairly discretionary, though funds from fixed price contract residuals are typically used to continue the research from which they originated.

Fund 28: Internal Service Centers (i.e. Rate Based Service Activities)

Spending in a fund 28 needs to directly support the good or service you are providing. Since rates are set for any fund 28 activity, your costs have to follow the guidelines set forth in chapter 13 of The Guide (see pgs. 9-16). You can also find additional guidance on rate-based service activities on the Budget & Fiscal Planning website.

Fund 29: For Uncategorized Revenue

If you cannot categorize the revenue generated through departmental activities into a fund 20, 26, or 28, you will use a fund 29.

A couple of examples of fund 29s are sales external to the university (see OCG’s website for scope-based service activities in fund 33s) and conferences.

Recording Revenue in a Fund 2x

Recording revenue in a fund 2x is dependent on the exact fund type and expense purpose code (EPC) of the SpeedType. Please refer to the revenue account codes chart which helps delineate what revenue to use.

If you do not know your EPC, you can look it up in PS Finance under CU SpeedTypes: Once you have pulled up the specific SpeedType, click on the third tab (Org/Program/Project Attributes) and you will find the EPC in the Program/Project Attributes box. A definition of expense purpose codes can be found on the Office of University Controller's website.

Reports for a Fund 2x

As with other funds, CU-Data reports such as a SpeedType Summary or Operating Summary are good for showing available balances, and the Financial Detail II is good for showing transactional data. A Revenue and Expenditure Summary will also give you a good higher-level overview of activity for a set timeframe.

Questions?

Any questions about auxiliary SpeedTypes can be directed to your campus accountant.

Important Points to Remember with Auxiliaries

Auxiliaries are charged GAIR on all expenses (not on revenue or transfers), with a few minor exceptions, such as student aid expenses. The FY22 rate is 7.89 percent. Review current and past GAIR rates.
Auxiliaries can also be charged PIE (with fund 28s also being credited PIE). This is a charge caused by a FOPPS being in cash deficit on a daily average for a quarter.
Fund 78s are the “savings accounts” for auxiliary SpeedTypes.

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Review Details About Fund 10s

Anonymous — Wed, 01 Dec 2021 16:11:54 +0000

Review Details About Fund 10s Anonymous (not verified) Wed, 12/01/2021 - 09:11

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There are a variety of different kinds of fund types at ��ƷSM��ӰƬ. Monitoring each one comes with its own set of rules and processes.

More About Fund 10s

Fund 10s, or the general fund, are used to account for the major revenue and expenses of the university’s primary mission of instruction and its support functions of academic support, student services, institutional support, operation of plant, scholarships and fellowships. We record all tuition revenue (except Continuing Education), all instructional fees, administrative student fees, some student activity fees and rental of general fund space in our general fund.

Your Available Budget

All the revenue collected from tuition and fees is then distributed to departments as budget. This means that the available budget on your fund 10 is your spending authority, rather than your available cash balance. To check your available balance, you can run a speedtype summary or operating summary in CU-Data. The available balance is calculated by looking at the total budget less expenses and encumbrances.

Recording Revenue

Revenue should not be recorded in fund 10’s, except for ID (interdepartmental) revenue and rental revenue from general fund space. Any ID revenue would be from smaller, incidental sales. You are never able to record SSEA (250000-259999) or miscellaneous revenue (325000-334999) on a fund 10 (barring a few departmental exceptions). These two types of revenue are used to account for sales to parties external to the university and should only be recorded in fund 2Xs. For more details on recording revenue on departmental speedtypes, please see our webpage on internal sales activity.

Spending in Fund 10

One of the basic tenets of fund accounting dictates that once we have determined the proper revenue bucket to put our funds into, the expenditures will naturally follow. This just means that you should be spending your fund 10 dollars to support our primary mission of instruction and its support functions, as mentioned above. This can cover payroll for faculty, staff, and student workers, student aid, office supplies, official functions, building costs, etc.

Since fund 10s are budget-based, it’s necessary for those fund 10s to be spent down to 1% of their total budget by fiscal year-end. If you have budget in excess of this 1%, it can be moved to a fund 72 (plant or renewal and replacement fund) which is accomplished through a cash transfer. When moving funds between two fund 10s, you’ll need to do a budget journal entry.

Questions?

If you have questions about the budget process, you can contact Budget and Fiscal Planning office at bfp@colorado.edu. Any other questions can be directed to your campus accountant.

Link between Fund 10s & Fund 72s

Speaking of fund 72s, many fund 10s are “linked” to an associated fund 72 through an identical program number. This allows a transfer to take place from the fund 72 to the fund 10 through the UNP (unrestricted net position) journal entry. The transfer moves funds from the 72 to cover the before encumbrance budget deficit in a fund 10, assuming the fund 72 has enough funds to fully cover the deficit. If you would like to see the available balance between a “linked” 10 and 72, the speedtype one-liner in CU-Data is a great report to run.

There are a variety of different kinds of fund types at ��ƷSM��ӰƬ. Monitoring each one comes with its own set of rules and processes. Fund 10s, or the general fund, are used to account for the major revenue and expenses of the university’s primary mission of instruction.

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Back to Basics

Learn More About Auxiliary Funds

Back to Basics

What is the role of our auxiliary funds?

Types of Auxiliary Funds

Recording Revenue in a Fund 2x

Reports for a Fund 2x

​Important Points to Remember with Auxiliaries

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Review Details About Fund 10s

Back to Basics

More About Fund 10s

Your Available Budget

Recording Revenue

Spending in Fund 10

Link between Fund 10s & Fund 72s

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Important Points to Remember with Auxiliaries