POLICY NUMBER:
500-013
CAMPUS POLICY
Now is the tie for all good men to
PAGE NUMBER:
Page 1 of 7
CHAPTER: 500
Fiscal
SUBJECT: Unrestricted Funds and General Fund
Carryforward
EFFECTIVE DATE: July 1, 2014
SUPERSESSION: None
OPR: VCAF
VC:
APPROVED: Provisional Approval – Under Revision
VCAF
I.
POLICY
This policy has been implemented to ensure consistent and appropriate reporting and categorizing
of fund balances that make up unrestricted net position (Fund Balance) in all funds. This policy
promotes the efficient use of funding and aids in the formulation of spending plans that support
the mission and goals of the University. This policy covers all UCCS departments, centers,
schools and colleges, and campus units.
II.
AUTHORITY FOR CAMPUS POLICIES
Authority for the creation of campus administrative policies is found in The Laws of the Regents,
2007, Article 3 Section B.5(A) which states:
The chancellor of the each campus shall be the chief academic and administrative officer
responsible to the president for the conduct of affairs of their respective campus in
accordance with the policies of the Board of Regents. The chancellor shall have such other
responsibilities as may be required by these Laws, or regent policy, or as may be delegated
by the president.
III.
PURPOSE
Unrestricted Net Position or Fund Balance (formerly Net Assets) is one component of the
University’s financial statements. They represent the fund balances that are held by the collective
units of the University as of June 30 on any given year.
The University of Colorado receives funds from a variety of sources. All funds received by the
University are initially classified as either unrestricted or restricted based on definitions
promulgated by Governmental Accounting Standards Board (GASB) statement No. 54. The
General Assembly appropriates State of Colorado funds which are unrestricted funds. While all
funds generated by the University are typically unrestricted, the Board of Regents and/or senior
campus leadership may designate these resources to be used for certain purposes such as the
purchase of specialized equipment or capital construction. Other funds are restricted by funding
source and include federally sponsored research. Funds from auxiliary enterprise operations such
as parking and residential housing, and funds from student fee auxiliaries such as the University
Center may be either unrestricted or restricted depending on whether or not the revenues
generated by them are pledged to make bond payments. These businesses are required to generate
revenue sufficient to cover operating expenses and, if applicable, debt service.
CHAPTER: 500
Fiscal
IV.
SUBJECT:
Unrestricted Funds &
General Fund
Carryforward
POLICY:
500-013
EFFECTIVE:
July 1, 2014
PAGE:
2 of 7
DEFINITIONS
1) Campus Leadership –The UCCS Leadership Team which consists of the Chancellor, the
Provost, Vice Chancellors, and other appointees as determined by the Chancellor.
2) Types of Funds:
A. General Fund – For UCCS, these are unrestricted funds used to account for the
majority of the revenue and expenses of the University’s primary mission of instruction
and its functions of academic, student services, institutional support, operation of plant,
and scholarships and fellowships. They are mainly from State appropriations, program
fees, tuition, and indirect research.
B. Auxiliary Fund - Auxiliary Funds are used to account for the revenues and expenses of
self-funded and self-sustaining operations like Extended Studies, Residential Life and
Housing, Parking Services, and revenue generated through departmental activity such
as consulting or laboratory testing, conferences, internal service centers, and most
student purpose/activity fees. Auxiliary operations with debt service may be designated
by UCCS as restricted.
C. Restricted Fund - Restricted Funds include sponsored research projects, federal and
state financial aid programs, and gift funds.
D. Reserve Funds – Reserve Funds (Plant fund 72) are used to establish cash reserves for
future needs such as debt payments, campus/departmental initiatives and capital
renewal and replacement expenses. Examples include but are not limited to: debt
service reserves as required by bond covenants, new building construction, building
renovations, capital equipment purchases, faculty start-up funding, contingency reserve
and general programmatic needs for campus support that may include health, life, and
safety issues.
3) Types of Obligated Funds:
Obligated Funds - Obligated Funds are unrestricted net position (Fund Balance) that are
obligated to specific projects (see below), or are held for contractual payments (such as
faculty start-up). The categories that follow are the approved designations of obligated
funds.
A. Approved Capital Projects – Assets obligated for currently approved construction
projects, facilities initiatives, and debt service reserve requirements (including internal
loans). Includes Regent-approved projects (over $2,000,000), and campus-approved
projects (under $2,000,000).
B. Service Centers- Assets obligated for equipment and facilities replacement and generally
subject to federal cost accounting standards (OMB A-21) which limits their use.
C. Risk Financing Activities –Reserves are set aside in a trust for professional liability.
D. Faculty Start-up and Research Initiatives – These funds are obligated for committed
faculty start-up, research cost sharing, bridge funding, and financial aid obligations.
CHAPTER: 500
Fiscal
SUBJECT:
Unrestricted Funds &
General Fund
Carryforward
POLICY:
500-013
EFFECTIVE:
July 1, 2014
PAGE:
3 of 7
4) Types of Unobligated Funds
Unobligated Funds- Unobligated funds are generally available for campus use or support of
schools, colleges, departments, or units. These funds are generated by nonrecurring revenue
surpluses or year-end balances resulting from lower than expected spending levels (such as
vacancy savings from an unfilled position). Campus leadership holds these funds in general
categories based on Budget and Planning Office procedures. Their designation may change
in accordance with directives from campus leadership, including Regent directives.
A. Campus Designated Capital – Funds designated for future specific capital projects and
facilities initiatives that will be submitted for campus or Regents’ approval (depending on
project size). This includes projects on the campus master plan, controlled maintenance,
and health/life/safety expenditures.
B. Unobligated Capital Reserves – Assets held by departments for capital activities that have
not been identified with specific projects or on the campus master plan, but rather general
campus needs including renewal and replacement.
C. General Programmatic Reserves - General departmental reserves for campus support.
Category includes reductions for grant deficits or pre-awards, which are claims on
department resources, and program, course and student fees.
D. Auxiliary Facilities Non-pledged – Assets held by auxiliary programs. Revenues are not
pledged to specific projects. Continuing Education reserves and insurance activities are
included with this group.
V.
PROCEDURES
1.
Reserve Spending Plan: Before a reserve is established or supplemented via a transfer, a
spending plan must be reviewed and initially approved by the appropriate Provost/Vice
Chancellor. The spending plan will then be forwarded to Resource Management for
compliance review. If there are any concerns, the final approval is determined by the Vice
Chancellor of Administration and Finance. The spending plan must clearly identify the
purpose of the reserve, the dollar amount added, the new total amount or balance, the date
monies will be spent, and how the purchase/use complies with and supports the mission of
the school, college, unit, and campus. If the reserve is a contingency reserve of any kind, an
internal agreement signed by the Dean or applicable Vice Chancellor that describes the
rationale and methodology for the established amount must accompany the plan.
2. Student Fees: Revenue and the related expenses for course or program fees must be
accounted for separately in a unique speedtype and not comingled with any other
departmental revenues and expenses. If a school or college collects two or more fees for
different purposes, each unique fee and the related expense shall be accounted for separately.
An annual report showing the fees collected and how they are used must be made available
each year by the schools, colleges or units. The Budget and Planning Office will work with
schools and colleges to establish a standardized report for this information. Student fee
balances are subject to the following:
CHAPTER: 500
Fiscal
SUBJECT:
Unrestricted Funds &
General Fund
Carryforward
POLICY:
500-013
EFFECTIVE:
July 1, 2014
PAGE:
4 of 7
a. Unspent fee revenue must be kept to a minimum. At the end of the fiscal year, any
unspent fee revenue must be carried forward to the new fiscal year and into the same
course or instructional program fee speedtype(s). Year-end balances may not be
transferred to another departmental speedtype.
b. The only exception is that a balance may be transferred into a reserve fund speedtype
for the future acquisition of capital equipment or an allowable expense. In this case,
the school, college or unit must comply with section D.1 of this policy. The Budget
and Planning Office will routinely monitor fund balances. Resource Management
will require a school, college, or unit that repeatedly transfers balances of unspent fee
revenue to provide a spending plan and possibly reduce the fee in order to eliminate
the balance in a timely manner.
c. Spending plans will be subject to internal review. Spending student fee revenue on
purposes other than those approved by the Regents will be subject to payback. If the
school, college, or unit wishes to use the fee balance on a purpose other than original
approved for the fee revenue, a fee request must be submitted to the Board of
Regents.
3. Student Activity Fees: Student activity fees are maintained in both the general and auxiliary
fund. For those activity fees that reside in the general fund, revenues and expenses will be
accounted for in a separate speed type and not comingled with other departmental activity.
For student activity fees that reside in the auxiliary fund, revenues and expenses will be
accounted for in the main departmental speed type which was created to receive, track and
monitor these fees according to the purpose of the fee as approved by the student body,
Campus Leadership Team, and the Board of Regents. Student activity fees are monitored
throughout the fiscal year and an annual comprehensive analysis is performed by the Office
of Budget and Planning to include verification of adequate reserve balances to comply with
bond documents.
4. Transfers: In order to move end of fiscal year cash balances to/or from a General fund or
to/or from a Reserve fund the following procedures apply:
a. All reserve funds must have specific spending plans in place that detail how
these funds are to be expended in the future. The spending plan is to be
submitted to the appropriate Provost/Vice Chancellor for initial review and
approval. The plan will then be forwarded to Resource Management for
compliance review. If there are any concerns, the final review and approval
will be determined by the Vice Chancellor of Administration and Finance.
The spending plan must be submitted by April 30th. Transfers in or out of
reserve funds will require Resource Management review. Transfers out of the
CHAPTER: 500
Fiscal
SUBJECT:
Unrestricted Funds &
General Fund
Carryforward
POLICY:
500-013
EFFECTIVE:
July 1, 2014
PAGE:
5 of 7
plant fund must be transferred back to the appropriate fund and speedtype to
cover the actual expenditures that have been charged.
b. All campus Obligated Faculty Start-up and Research Initiatives reserves must
have a Provost or Provost Delegate approved hiring plan in place.
c. Unspent Unobligated General Programmatic Reserve balances (Fund 72) held in
reserves for longer than three years will be swept at the end of the 3rd fiscal year
and transferred to the campus reserve. Carryforward balances not spent within
one year will be swept at the end of the following fiscal year and transferred to
the campus reserve.
d. Unobligated general fund transfers to reserves that occur after April 30th of each
fiscal year will be swept at a rate of 20% at the time of the transfer request.
e. Compliance with spending plans will be subject to internal review.
Noncompliance with plans may result in pay back. Updates to spending plans
must be approved by the appropriate Provost/Vice Chancellor and Resource
Management before changes can be implemented.
5. General Fund Carryforward: The General Fund Carryforward is the unspent revenue and/or
budget balance available at the end of a fiscal year after transfers that is carried forward to the
next fiscal year as stated in the Carry Forward Report approved by the Regents. Any funds
not transferred out to Reserve Funds with an approved spending plan are subject to the carry
forward process.
a. Carryforward balances at the end of the fiscal year must be requested. A request
needs to be sent to the appropriate Provost/Vice Chancellor and to the Director of
Budget Operations. Carry forward requests must include dollar amounts, reason
for request, and ramifications if the request is not granted. These requests are
due by August 15th.
b. Carryforward balances that are not identified as a mandatory carryforward will
be swept at a rate of 20% and returned to campus reserves.
c. Carryforward balances will be budgeted and must be expended in a
corresponding Fund 11 speedtype upon review and approval by the campus
Leadership Team and the Board of Regents. These balances must be spent
within the fiscal year that they are received in Fund 11. At the end of that fiscal
year, any balances remaining in Fund 11 will be swept and transferred to the
campus reserve.
6.
Auxiliary Fund: Any Unrestricted Auxiliary speedtype with net cash position greater than
$250,000 at June 30 of each fiscal year will need a spending plan. This threshold includes
amounts for working capital. Working capital allows an auxiliary unit to ensure it is able to
CHAPTER: 500
Fiscal
SUBJECT:
POLICY:
500-013
Unrestricted Funds &
General Fund
Carryforward
EFFECTIVE:
July 1, 2014
PAGE:
6 of 7
continue operations and has sufficient cash flow to satisfy operational expenses and shortterm maturing debt obligations. The amount of allowable working capital (net position) is
equal to 90 days of operating expenses, on average, over the fiscal year. These spending
plans will be due by September 15th.
7. Unrestricted Net Position Reference Chart
UNIVERSITY OF COLORADO COLORADO SPRINGS
8. Speedtype Designations: Based on the type of speedtype, the Finance office will use the following
designations to identify Unrestricted Net Position speedtypes. Except as approved by Controller.
VALUES FOR DESIGNATION OF UNRESTRICTED NET POSITION
Funds
10
Auxiliary Facilities Operating Reserves (nonpledged)
Unobligated Capital Reserves
AUXR
11
20
26
28
D
29
30
31
71
D
Campus Designated Capital
CACR
PEPC
Approved Capital Projects
OCIP
Service Center Reserves
ISUR
73
X
CAPR
General Programmatic Reserves
72
X
X
D
D
D
D
D
X
D
X
D
X
X
D
CHAPTER: 500
Fiscal
SUBJECT:
POLICY:
500-013
Unrestricted Funds &
General Fund
Carryforward
Risk Financing Activities
RFIN
Faculty Start-up and Research Initiatives
STRT
University Physicians, Inc.
UPIR
1
EFFECTIVE:
July 1, 2014
PAGE:
7 of 7
X
X
X
X
X
D is the default code for each applied fund
X is an allowable code
Excluded are restricted funds (34, 35, 36, & 50) and funds whose net position is zero (80 & 99)
2
VI.
RESPONSIBILITY
VII.
HISTORY
VIII.
ATTACHMENTS: