University of Virginia
Integrated System Business Rules
Used for original system setup and implementation. Last update: 9/10/01
Table of Contents
Revised
Purpose
.................................................................................................................. iii
Section 1: Financial Principles ......................................................................................... 1 - 6
Section 2: Project and Award Nomenclature ....................................................................... 7
Section 3: Business Rules
State E & G Funds .................................................................................................................... 8 - 9
State Restricted Funds .......................................................................................................... 10 - 13
State ETF Funds ........................................................................................................................... 14
Local General Funds ............................................................................................................. 15 - 16
Local General Chair Funds ................................................................................................... 17 - 18
Auxiliary Enterprises: State and Local ................................................................................. 19 - 21
Sales and Service: State and Local ............................................................................................... 22
Sponsored Programs ............................................................................................................. 23 - 25
F & A Funds (aka: overhead, indirect costs) ................................................................................ 26
GRA Tuition Remission Projects ................................................................................................. 27
Work Study .......................................................................................................................... 28 - 29
Intellectual Property Funds ........................................................................................................... 30
Expendable Gift Funds ......................................................................................................... 31 - 33
True Endowments ................................................................................................................. 34 - 35
Trustee-Held Endowment Income ................................................................................................ 36
Quasi Endowments ....................................................................................................................... 37
Expendable Plant Funds (Capitalized Projects) ................................................................... 38 - 40
Agency Funds ....................................................................................................................... 41 - 42
Eminent Scholars Program ................................................................................................... 43 - 45
VGUAP Program .......................................................................................................................... 46
Imputed Interest Program ............................................................................................................. 47
Health System (HSF & Medical Center) ...................................................................................... 48
Acquisition & Retirement of Debt ....................................................................................... 49 - 50
7/10/01
ii
Purpose: The purpose of this document is to provide guidance on how the Oracle
financial applications, particularly General Ledger and Grants Management, will operate
at the University of Virginia. The first section will list overarching guidelines that apply
broadly to the applications and the second section provides business rules governing how
different fund sources (state, sponsored programs, gifts, etc.) will be administered and
managed through the use of Oracle financial applications.
The Vice President for Finance is responsible for the maintenance of this document and
for the administration and management of financial processes and transactions such that
they conform to the guidelines and rules contained herein.
iii
Section 1: Financial Principles
1. All users of the Oracle financial applications are responsible for the integrity and
accuracy of all of the data that they enter into the Integrated System. This includes the
proper assignment of all values in the Grants Management application (project, task,
award, expenditure type, and organization) and in the General Ledger application
(entity, project, fund source, object code, and organization).
2. Application owners are responsible for ensuring the integrity and accuracy of all data
entered by users into the applications for which they are responsible. Application
assignments are as follows:







General Ledger: University Comptroller
Grants Management: University Comptroller
Accounts Receivable: University Comptroller
Purchase Order and Accounts Payable: Director of Procurement Services
Order Entry and Inventory: Director of Procurement Services
Human Resources: Chief Human Resource Officer
Labor Distribution: Chief Human Resource Officer
1
3. All entries made into the Integrated System will be in mixed case in accordance with
the Integrated System style guide that is available on the Integrated Systems web site.
4. Approved Integrated System prefixes for all organizations, award short names, and
project short names shall be used in all cases. These are available on the Integrated
Systems web site. Schools and departments are responsible for ensuring the use of any
additional naming conventions that they create. Central offices will incorporate these
unit-based conventions into the organizations, awards, and projects that they create.
5. With the exception of projects and tasks, all values within the General Ledger and
Grants Management applications (object codes, expenditure types, fund sources,
organization codes, etc.) are considered to be institutional values that will change on an
infrequent basis. Schools, departments, and other operating units are encouraged to meet
local business requirements through the use of projects and, sometime after go live, tasks.
Over time, the use of the project segments within the General Ledger and Grants
Management applications and the task segment within Grants management is expected to
eliminate the need for many of the existing shadow accounting and costing systems
maintained in schools and departments.
2
6. Delivery of funding to projects:
 Once deposited to the General Ledger, cash should only infrequently be
transferred within the General Ledger. One example is the required movement of
cash from current funds (operating) sources into plant funds for use in funding
capitalizable projects created and maintained by Facilities Management.
 The Oracle Grants Management application provides powerful functionality to
deliver expenditure authority to University programs by funding projects from
awards in the Grants Management application. This funding can occur across
school and department lines since, in Oracle Grants Management, the sources of
funds (awards) is separate from the uses of the funds (projects).
 In larger schools and departments, it may be necessary to create additional awards
that share the same revenue project. This can facilitate the delegation of duties
and responsibilities in units that have a large and decentralized administrative
structure (e.g., Arts and Sciences, School of Medicine, etc.).
3
 In general, maximum funding, administrative, and reporting flexibility is achieved
through the use of fewer awards that fund more projects.
7. Special Conditions:
 Awards in one agency cannot fund projects in another. For example, no UVA
awards may fund any College at Wise project. In this case, General Ledger cash
transfers must be made to deliver funding from any UVA source to the College at
Wise.
 Restricted financial aid awards (those beginning with SR) may only fund projects
that have financial aid expenditure function codes (6500 and 6700).
 Auxiliary awards (local or state) may only fund projects that have an auxiliary
expenditure function code (7XXX).
 State E & G awards (those beginning with SG) may not fund auxiliary projects
(having an expenditure function code starting with 7) or financial aid projects
(having expenditure function codes of 6500 and 6700).
4
8. To the maximum extent feasible, all initiated transactions should be entered into the
Oracle project that represents their final posting within the Oracle financial system. The
use of clearing, suspense, reclassification, and reallocation projects is discouraged. In the
event that the University’s business can be accomplished only through the use of these
types of projects, each such project or set of projects shall be documented. This
documentation will include the business requirement that necessitates the use of the
project, the project number, and a brief description of the financial process operated
through the project. This documentation will appear as Section 3 of this document.
9. All clearing and suspense projects will be reconciled (cleared) to a balance of $0 prior
to the close of business each month unless another reconciliation schedule is approved by
the University Comptroller.
10. Projects created within the Oracle Grants management application may not be used
for any purpose other than the one originally intended. For example, a project originally
created to capture instructional costs (and having an expenditure function code of 2000)
may not subsequently be used to capture other costs such as sales and service,
publications, etc.
5
11. Projects with the Type of General Operating that are to be used solely to receive
revenue will be assigned the expenditure function code of 9990 (Revenue Only). These
projects must never be funded by any award. This is because these projects do not carry
a true NACUBO expenditure function code and posting expenses to these projects is in
conflict with their intended use.
12. Projects with the Type of Balance Sheet Only must never be funded by any award.
This is because these projects do not carry a true NACUBO expenditure function code
and posting expenses to these projects is in conflict with their intended use.
6
Section 2: Project and Award Nomenclature
Type
--P
A project has been created that will be used only for expense purposes. An award will have to
fund it before it can be used.
An award has been created that will need to fund a project before it can be used.
-A
-AP An award and project have been created and, once linked in Oracle, may be used for
expenditure purposes.
P-- A project has been created and, in most cases, will be used only in GL for revenue/cash
deposits or balance sheet purposes.
P-P A limited number of situations in which revenue is deposited to the first P (in GL) and is also
used for expense purposes in Grants Management.
PA A project in GL serves as the revenue project for an award in Grants Management. Once the
award funds another project, expenditures may be processed.
PAP There are many of these. It is a free standing "account" in which revenue may be deposited in
GL (the first P), that same project serves as the revenue project for the award in Grants
Management, and that award funds the second P (same project # as in GL) in Grants
Management so that expenditures may be processed.
7
State E & G
Business Rules:
1. State E&G revenue projects are created and maintained in coordination with the
University Budget office.
2. Awards from these revenue projects will be created and assigned to all schools,
departments, and other units by the Budget Office.
3. Funding of projects from these awards will be limited to projects with appropriate
expenditure function codes (2000 through 6050).
4. These awards will be subject to a cost allowability schedule created for State funds.
5. These awards will not have end dates.
6. Award prefix is SG; the revenue project for these awards is RP0001.
Process:
1. The University Budget Office is the process owner for these funds.
8
State E & G (cont’d)
(cond’t)
Example:
Award 1
State E&G
Law School
$2,000,000
Project 1
Law School
General Academic Instruction
$1,000,000
Project 2
Law School
Student Admissions
$500,000
Project 3
Law School
Counseling & Career Guidance
$500,000
9
State Restricted Funds
Business Rules: These accounts are restricted for various purposes as noted in the
individual descriptions. They will all have the award type of SR.
1. SCHEV grants or Special Appropriations
 These will be set up as PAPs. There will be a revenue (state appropriated dollars
being awarded from SCHEV) project, a GM award (w/ a GL project as the
revenue/source of funding), and a GM award, which is available to spend against
(same project # as the GL).
 There will be a periodic billing/settlement with the state.
 These awards are restricted to expenditures for the purpose as awarded. These are
awarded by SCHEV or included in the University’s appropriation for specific
purposes.
Process:
1. The University Budget Office is the process owner for these funds.
10
State Restricted Funds (cont’d)
2. Financial Aid – GF
 At least one such award is made for undergraduates and for each graduate school.
 These awards are funded from state general fund appropriation, revenue project
102206
 Some schools have elected to have two separate awards: restricted (50% to
Virginians) and unrestricted (remaining 50% which can go to Virginians or nonVirginians)
 These awards must be connected to projects that carry financial aid expenditure
function codes (6500 = scholarships, 6700 = fellowships)
11
State Restricted Funds (cont’d)
3. Financial Aid – NGF
 At least one such award is made for undergraduates and for each graduate school.
 These awards are funded from tuition, revenue project 102211
 Some schools have elected to have separate awards for: remission (for
undergraduates or for GTAs/GRAs), differential or tuition adjustment (for out-ofstate GTAs/GRAs who earn in excess of $4,000), special aid (generated from a onetime tuition increase specifically for financial aid), or excess (generated from tuition
increases in excess of institutional increases (limited to Law, Darden or Medicine
who have excess tuition))
 These awards must be connected to projects that carry financial aid expenditure
function codes (6500 = scholarships, 6700 = fellowships)
12
State Restricted Funds (cont’d)
4. Technology Fee
 Except for the School of Continuing and Professional Studies (SCPS), these awards
will map to a single revenue project, 102221.
 These awards must be expended for the purpose as awarded. The revenue is
generated from student fees for the express purpose of student-related technology.
The University awards the fees, either on a one-time or on-going basis, for specific
student technology purposes.
 These awards may be linked to projects as needed.
 The technology fee for SCPS is set up as a PAP and expenditures cannot exceed the
revenue generated.
 The University Budget Office is the process owner for these funds.
5. Eminent Scholars, GF & Eminent Scholars, NGF
 These awards are restricted to Eminent Scholars purposes. See specific business
rules for the Eminent Scholars Program.
 The University Budget Office is the process owner for these funds.
13
State ETF Funds
Business Rules:
1. Separate awards for each school or unit receiving ETF funds, prefix is SE.
2. These awards may fund separate projects in the schools.
Process:
1. Financial Analysis is the process owner for these funds.
14
Local General Funds
Business Rules:
1. There are multiple revenue projects for local general funds.
2. In GL, these revenue projects are children to a revenue parent (RP0002), this revenue
parent is the revenue project for the local general awards.
3. Award prefix is LG and the revenue project for these awards is RP0002.
4. A cost allowability schedule will be used that allows maximal use of these funds across
expenditure types.
Process:
1. The University Budget Office is the process owner for these funds.
15
Local General Funds (cont’d)
Example:
Award 1
Local General Funds
$15,000
Award 2
State E&G Funds
$50,000
Project 1
Local General Project
$10,000
Project 2
Instructional Project
$55,000
16
Local General Chair Funds
Business Rules:
1. These awards derive from local general revenue
2. One award for each participating school will be created. These awards will have no
expiration date.
3. Installments will be made annually in the amount of $2,000 times the number of
qualifying chairs in each school.
4. These awards can be used to support projects that have either instructional or research
(i.e., academic) expenditure function codes.
5. These awards may not be used for salary expenses.
6. These awards must fund projects that are dedicated/linked to the faculty member
holding the chair. The name of the faculty member must appear on the projects
that are funded by these awards.
7. Award prefix is LC and the revenue project for the award is RP0002.
Process:
1. The University Budget Office is the process owner for these funds.
17
Local General Chair Funds (cont’d)
(cont’d)
Endowed Chair
Award 1
Endowed Chair
Award 2
Endowed Chair
Project 1
Local General Chair
Award
3 x $2,000 = $6,000
Endowed Chair
Project 2
Endowed Chair
Award 3
Endowed Chair
Project 3
18
Auxiliary Enterprises: State and Local
Business Rules:
1. State auxiliary awards will be subject to the cost allowability schedule for state funds;
local auxiliary awards will be subject to the cost allowability schedule for local funds.
2. Auxiliary awards may fund only those projects that have been assigned auxiliary
expenditure function codes (7XXX).
3. Award prefixes are SA for state auxiliaries, LA for local auxiliaries
4. Separate revenue projects can be created to track different revenue streams (i.e., rent
revenue vs. metered parking revenue), these can roll to a common revenue parent that
can then serve as the revenue project for the associated awards.
5. Revenues generated from outside UVA should be deposited to GL and coded as
revenue. Revenues generated from within UVA require the use of unique revenue
codes within the Grants Management application.
Process:
1. The University Budget Office is the process owner for these funds.
19
Auxiliary Enterprises: State & Local (cont’d)
Example:
1. Separate cash determination needed for each Project:
GL
P1
P2
P3
Award 1
Award 2
Award 3
FM
Project 1
Project 2
Project 3
20
Auxiliary Enterprises: State & Local (cont’d)
Example:
•
Cash determination needed only for the group of Projects:
In GL: Parent revenue project with children, as follows:
Parent
P1
P2
P3
GL
Award 1
FM
Project 1
Project 2
Project 3
21
Sales and Service (State & Local)
Business Rules:
1. State sales and service awards will be subject to the cost allowability schedule created
for state funds.
2. Award prefixes are SS for state sales and service, LS for local sales and service.
3. E&G-related sales and service activities will be created as state sales and service units.
4. Each will normally be created as a “PAP”.
5. Revenue parenting (see Auxiliary section) available in limited circumstances, Budget
Office approval needed.
6. All sales and service activities are expected to operate at break-even.
7. Any sales and service activity that operates as an internal service provider may operate
only as a “PAP”; these awards may not fund additional projects.
Process:
1. The University Budget Office is the process owner for these funds.
22
Sponsored Programs
Business Rules:
1. Normally, one Award and one Project will be created for each grant or contract.
2. All billing will be performed by OSP. Both the Grants Management and Accounts
Receivable applications will be used to perform this function. OSP creates invoices,
prints, and sends bills. Revenue Collections receives and deposits cash.
3. With the approval of OSP, it will be possible to create more than one project and link
them to the same sponsored programs award. This will be done by OSP for program
projects and may be useful for cross-school activities. Burdening of F&A costs occurs
at the project level so F&A revenue will be apportioned appropriately (based on
owning organization of each project).
4. Federal and non-Federal cost allowability schedules as well as transaction controls will
be used. The Federal cost allowability schedule will adhere to Cost Accounting
Standards (CAS). The creation and maintenance of cost allowability schedules and the
application of transaction controls will be a central office function.
5. Other qualifying awards may fund sponsored programs projects in order to provide
supplemental funding or to meet institutional cost sharing obligations.
23
Sponsored Programs (cont’d)
6. Award prefixes are G plus one additional character for each letter of credit or other
sponsor type.
Process:
1. OSP is the process owner for these funds.
24
Sponsored Programs (cont’d)
Example:
Award 1
NSF Grant
Biology
$100,000
Award 2
Biology (State, F&A, etc.)
$50,000
Project 1
Biology NSF Grant
$110,000
25
F & A Funds (aka, overhead, indirect costs)
Business Rules:
1. F and A revenue projects and awards will be created for each FAS account to which
funds are now transferred by the University. These will be established as PAP’s.
2. F and A Awards will not have end dates.
3. These awards will be subject to the cost allowability schedule created for State funds.
4. Award prefix is FA
5. The GL revenue project will receive a monthly distribution of revenue. Awards will be
incremented quarterly by an amount equal to these earned revenues.
Process:
1. Financial Analysis is the process owner for these funds.
26
GRA Tuition Remission Accounts
Business Rules:
1. These accounts are used in ISIS in order to process Nomination and Authority changes.
2. These will be created in Oracle as projects mapped to one of a school’s F and A
Awards.
3. After the charges appear in Grants Management, cost transfers may be initiated by
schools and departments to transfer the charges to the correct grants or other fund
sources.
27
Work Study Program
Business Rules:
1.
Clearing project/award combinations (PAP’s) will provide the matching portion
of the Work Study LD activity. They are as follows:
UVA:
Project = 106394, Award = SR00067
College at Wise: Project = 101692, Award = SR00064
2.
Once funding is approved by Student Financial Services (SFS), SFS will fund the
appropriate departmental projects from the appropriate Work Study clearing
award. Through Oracle Labor Distribution, departments will schedule the labor
for the Work Study students using the percentage approved by SFS.
All LD activity related to work-study must use the appropriate Work Study
expenditure types.
All adjustments for activity between departmental awards and the Work Study
awards must be made through use of the distribution adjustment functionality in
Oracle Labor Distribution. Adjustments must not be made using the Cost
Transfer functionality in Oracle Grants Management.
3.
4.
28
5.
6.
7.
Accounting Services is responsible for transferring the total matching expenses
from the clearing project to the appropriate Work Study grant.
Work Study grants will be managed by OSP consistent with the manner in which
other Federal grants are managed. This includes the billing and collection
functions.
Student Financial Services is the process owner for these funds.
29
Intellectual Property Funds
Business Rules:
1. One revenue project maintained centrally for initial deposit of funds.
2. Schools and other units receiving intellectual property funds will have a GL project to
which all their intellectual property cash is deposited. This project will serve as the
revenue project for all awards created within their area/s.
3. These projects and their associated awards will receive distributions (fund transfers to
GL projects and increments to award installments) after the Patent Foundation check
has been deposited at UVA.
4. Award prefix is IP.
5. Special arrangements can be made to invest idle cash.
6. All existing intellectual property accounts will be converted into Oracle as PAP so that
the existing balances can be expended.
Process:
1. The Office of the Vice President for Research and Public Service is the process owner
for these funds.
30
Expendable Gift Funds
Business Rules:
1. At go live, all gifts will be created as PAP’s. This means that gift awards may fund
only the associated gift project.
2. Increments to award installments will be made monthly after receipt and deposit of gift
funds; award installments will not be incremented in anticipation of gift receipts.
3. Award prefixes are DR for restricted gifts, DU for unrestricted gifts, DI for select gifts
managed at the institutional level.
4. Original gift funds and imputed interest activity will be handled within the gift project
in GL.
5. ITS creates all gift awards and increments award installments; upon receipt of gift
funds.
6. Departments will create all gift projects.
Process:
1. Investment and Tax Services is the process owner for these funds.
31
Expendable Gift Funds (cont’d)
Special Cases:
A. Life insurance funds:


Donor provides gift to support periodic life insurance premium payments; University is
the beneficiary.
Handle like other gift projects; the resulting PTAEO will be used to process checks for
the premium payments through AP.
B. Law School and Darden Foundation Gift Funds:


Awards may be used for any academic purpose, as determined by the schools.
The foundations will reimburse UVA monthly for disbursements made from these
awards. These reimbursements will be made in advance of the University’s month-end
close date. It is the responsibility of the foundation to monitor the settlement balance
and to affect the transfer of funds on a timely basis (i.e., prior to University’s monthend close date).
32
Expendable Gift Funds (cont’d)
C. HSF Gift Funds:


These awards may fund any UVA academic project. These awards may not fund HSF
clinical projects.
HSF will reimburse UVA monthly for disbursements made from these awards. These
reimbursements will be made in advance of the University’s month-end close date. It
is the responsibility of the foundation to monitor the settlement balance and to affect
the transfer of funds on a timely basis (i.e., prior to University’s month-end close date).
33
True Endowments
Business Rules:
1. At go live, each true endowment will be created as a PAP. This means that
endowment income awards may fund only the associated endowment project.
2. Award installments will be incremented based on the Board-approved distribution
formula; currently 2 times per year.
3. Award prefixes are ER for income from restricted endowments, EU for income from
unrestricted endowments, EI for selected endowments managed at the institutional
level.
4. All endowment financial activity (corpus, gains/losses, income, imputed interest, etc.)
will be housed within the endowment project in GL.
Process:
1. Investment and Tax Services is the process owner for these funds.
34
True Endowments (cont’d)
Special Cases:
A. Pratt Funds:


Two-endowment revenue projects will be created; one for Arts & Sciences, one for
Medicine. This will allow cash to be tracked at the school level.
Awards will be created from each school’s annual allocation of Pratt income.
B. Life Income Funds

These are just corpus; which need a revenue project in GL in order to record the gift
on the balance sheet.
35
Trustee-Held Endowment Income
Business Rules:
1. These are usually situations in which the University does not hold the corpus.
2. UVa periodically receives a distribution of income for deposit to the revenue project
associated with the endowment corpus held by the external entity.
3. These adhere generally to the business rules established for UVa-held endowment
corpus.
4. At go live, these endowments may only fund their own expenditures projects.
Process:
1. ITS is the process owner for these funds.
36
Quasi Endowments
Business Rules:
1. Quasi endowments can be created only through the transfer of funds already on deposit
at UVa.
2. Handled like any other endowment funds, see prior section.
Process:
1. ITS is the process owner for these funds.
37
DRAFT: NOT FINAL (AS OF 7/29/01)
Expendable Plant Funds (Capitalized Projects)
Business Rules:
1. These are comprised of unexpended plant and renewal & replacement (aka, expansion
reserve) funds.
2. Capitalizable projects will normally be classified as follows:
State
Project
State
GL
Expend. Capitalized
Code
Category Appropriated?
Cost *
Transfer? Function
by UVa?
Required?
A
Yes
Any
Yes
9700
Yes
Yes
Amount
B
No
$0 No
Operating Sometimes
No
$50,000
Range
C
No
$50,000 Yes
Operating
Yes
No
$500,000
Range
* Any capitalizable project in excess of $500,000 must be state appropriated. Some
projects less than $500,000 may be state appropriated.
38
3. A state appropriation of plant funds (Category A) will be established as a plant fund
revenue project by the Budget Office. The revenue project will be owned by the unit
benefiting from the capital project. In the case of state funds (general funds, GOB
funds,etc.), the Budget Office will own the revenue project. The associated awards will
be established and managed by the Budget Office, but owned by same unit owning the
revenue project. The expenditure project will be created and managed by Facilities
Management, but owned by the unit benefiting from the project.
4. For non-plant funds supporting capital projects less than $50,000 (Category B)
Facilities Management will, with the assistance of Financial Administration, assess
whether the resulting expenditures will need to be capitalized. For expenditures that are
to be capitalized, Facilities Management will create and own Oracle expenditure projects.
Each project will be funded by as many awards as are providing funding to the
construction project.
5. UVA non-plant funds supporting capital projects in excess of $50,000 (Category C)
must be transferred to a plant fund revenue project. These will be GL transfers. An
associated award will be created from the plant fund project to fund the construction
project. The revenue project will be created and managed by ITS, but owned by the unit
providing the funding. The award will be established and managed by the ITS, but
owned by unit providing the funding. The expenditure project will be created and
managed by Facilities Management, but owned by the unit benefiting from the project.
39
Expendable Plant Funds (Capitalized Projects) (cont’d)
1. The University Budget Office is the process owner for all state capital projects
(Category A) and the associated awards.
2. ITS is the process owner for all non-state appropriated capitalized projects (Category
B and C) and the associated awards.
3. Award prefixes are SP for state plant funds, LP for local plant funds.
Example:
Award 1
Plant Fund 1
$10,000,000
Award 2
Plant Fund 2
$10,000,000
Project
New Arts
Precinct
$20,000,00
0
Note: Funds will be transferred
from original fund sources into
Plant Fund GL projects – consistent
with current practice
40
Agency Funds
Business Rules:
1. There will be one or more revenue projects in GL that will serve as the settlement
clearing project/s between UVA and the entity for which UVA serves as agent.
2. Agency awards may fund UVA projects. UVA awards may not fund agency projects.
3. Prefix is YY for agency awards.
4. Agencies will reimburse UVA monthly for disbursement made from these awards.
These reimbursements will be made in advance of the University’s month-end close
date. It is the responsibility of the agency to monitor the settlement balance and to
affect the transfer of funds on a timely basis (i.e., prior to University’s month-end close
date).
5. Each agency will annually submit fiscal year budget information to the University
Comptroller for inclusion into the Oracle Grants Management application. This
information will include the installment value for each award, all project funding
values, and an award/project budget for each award/project combination. Upon
approval, Accounting Services will enter the award installment information and each
agency will then fund their projects and create the award/project budgets.
41
Agency Funds (cont’d)
Process:
1. Accounting Services is the process owner for these funds.
Special Cases:
1. Agencies may choose to create memo entries whereby non-Oracle transactions can be
included in the financial analysis of an Oracle project. This is accomplished through
the creation of an agency memo entry project. This memo entry project serves as an
offset accounting mechanism so that the net affect of the memo entries is $0.
2. The creation of all memo entry projects must be approved by Accounting Services
prior to their creation and use.
42
Eminent Scholars Program
Business Rules:
1. One state award per school with award installment value set as follows:

The annual installment will be: The fringe benefit rate for faculty salaries less 10%
(e.g., 24.5% - 10% = 14.5%) times the amount of state matching money allocated
for faculty salaries for the Eminent Scholars program by the Budget Office.
2. Two state restricted accounts per school; one to receive state matching funds and one
to receive eminent scholars endowment income to match state funds. These are
settlement accounts that can only be used by a central office at year-end. Examples:
Eminent Scholars, GF; Eminent Scholars, NGF.
3. Award prefixes are SG for the awards in #1 above, SR for the awards in #2 above.
4. Schools and departments use the SG award only.
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Eminent Scholars Program (cont’d)
Process:
1. Schools
 By endowed chair, charge 2 times the available state matching salary dollars to the
Eminent Scholars SG Award. These awards fund the appropriate endowed chair
projects.
 Use additional endowment income to fund additional portions of chairholder’s
salary (optional).
2. Central Office
 At year-end, transfer cash needed to cover institutional portion of the matching
program from the appropriate endowment revenue project to the appropriate state
restricted account (Note: This is a GL transaction performed by a central office).
 Transfer all charges (except that portion of the fringe benefit charges not funded by
the state matching program) from the school’s eminent scholars SG award to each of
the state restricted awards.
 Bill and receive funds from the state to cover the expenses in their state restricted
account, a central office function.
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Eminent Scholars Program (cont’d)
Example:
State
Eminent Scholars
Award
Eminent Scholars
Endowment Income
Award 1
Endowed Chair
Project 1
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VGUAP Program
Business Rules:
1. Same as Eminent Scholars except only one State VGUAP award is needed for the
matched portions of the expenses and only two State restricted accounts are needed for
the entire institution.
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Imputed Interest Program
Business Rule:
To be handled as transactions within the projects that holds the funds to be invested.
Thus, no separate imputed interest projects and awards are required. Each department
will be responsible for managing their own cash within their projects. In Oracle, there is
no need to transfer cash into another project in order to participate in the imputed interest
program. A journal entry will be prepared and processed by departments to move excess
funds into the imputed interest program by choosing the object code established for the
imputed interest program.
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Health System (HSF & Medical Center)
Business Rules:
1. Agreements and contracts between these two entities are to be settled outside of the
University’s accounting system.
2. Refer to Exchange of Goods and Services document dated 6/24/00.
Process:
1. Refer to Exchange of Goods and Services document dated 6/24/00.
Example:
1. All HSF revenues are to be deposited to HSF corporate accounts.
2. Transfers between these entities of incidental non-labor expenses (e.g., pharmacy, etc.)
may be made through the standard Oracle cost-transfer process.
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Acquisition and Retirement of Debt
Business Rules:
1. The categories are plant bonds and plant debt service.
2. A project will be created to receive the proceeds of the debt instrument (cash &
liability) as well as funds from the project sponsor (Business Operations, etc.) to be
used to service the debt. These are all GL transactions.
3. The proceeds of the debt instrument are transferred to the appropriate plant fund
project in order to provide funding to the construction project.
4. The transfer from the project sponsor provides award installments to service the
interest and fee portions of the debt repayment plan. These are disbursements via AP.
5. The transfer from the project sponsor is also used to make principal payments. These
are GL transactions via AP.
Process:
1. ITS is the process owner for these funds.
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Example:
Debt Proceeds
Transfer to Construction (Plant) Project
Transfer to Service Debt
Debt Project
FS1
P
FS2
P
Business Operations Project
P
Debt Service
Awards
Award
Capital Project
Debt
Project
Note: Need separate Awards for each fund source.
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