1. "Actuals" financial transactions record revenues, expenses, assets or liabilities of the university. For example, paying a vendor for supplies, receiving tuition pays from student, or accruing a liability for unbilled goods or services that have been received. Frequently, these transactions are recorded to the General Ledger from subsidiary systems that accumulate the original entries (e.g. Payroll, Accounts Payable, UCA, Physical Plant)

2. Encumbrance or Open Commitments transactions reflect purchases that have been ordered but not invoiced from the vendor, generally resulting from the issuance of a Purchase Order. Encumbrances are removed as vendors are paid.

3. Budget transactions record the planned expenditures or planned revenues for a specific time period. Budget transactions are used primarily to show the amounts and categories authorized to be spent. Budget transactions also report available funds from prior periods that may be spent in the current accounting year (e.g. 1% carryover, balance forward, encumbrance carryover)

1. Campus systems (e.g Payroll, Bookstore, SAS, UCA Receivables, Accounts Payable systems)

2. Campus or central accounting spreadsheet journal entries

3. Automatic allocation entries that are calculated from balances or activity in the ledger

4. Budget adjustments

1. Journal Entries. Transaction coding errors originating from procurement transactions (e.g. Accounts Payable, Purchasing Card, Bookstore, Signature Card, Physical Facilities, OIT, Print & Mail Services), or other journal entries, may be corrected via a journal entry.

2. Corrections in Subsidiary Systems. Coding errors initiated by certain subsystems (e.g. Payroll, UCA) often may require corrections initiated by those subsystems rather than through journal entries.

• Payroll system, error corrections that should change tax withholding or W-2 wages must be processed through the Payroll system.

• UCA. Changes in amounts related to information transmitted to UCA and then appearing in a UCA journal likely require a change through the UCA system since customer billings are impacted; contact Student Accounts.

3. Budget Adjustments. Within Funds 11 and 21, if expenses are properly coded and a deficit will result AND the deficit is to be resolved from another Fund 11 or 21 related Operating Unit, make budget adjustments between Fund 11 and between Fund 21 Operating Units rather than processing an expense adjustment. Budget Adjustments are either Temporary or Permanent.

• Permanent Budget adjustments are made where the situation is expected to be recurring from year to year.
• Temporary Budget Adjustments where the situation is expected to last only the current year.
• Fund 21 Budget adjustments will include a funds transfer that will be processed by the Budget Office.

4. University Allocations. Funding for certain auxiliaries has been specifically approved by the Church and the Budget Office to come from Fund 11 budgeted funds (e.g. cover use of buildings or salaries for activities that would otherwise have been included in the annual Fund 11 budget.) Expenses for these items are entered to Fund 11 with an offsetting credit in Account 4010-University Allocation. No campus entities should use 4010 unless previously approved to do so by the Budget Office.

5. Covering Deficits. Losses or deficits generally must be resolved by obtaining funding from other sources with the following exceptions:

• Fund 11 deficits can occur for an Operating Unit in total, or for any one of 7 expense pools (below). Fund 11 deficits in total or by expense pool will result in an over expenditure reduction in the following budget year, thus limiting the available resources for that year.
• Over expenditure reductions are calculated from the following specific expense pools:

• Balances available are added in each pool. If the pool has a positive balance, then no penalty is given in any expense code in that pool. For example, there may be a deficit of $300 in category 5100 and a surplus of $500 in category 5500; overall there is a net positive balance and the 5100 budget will not receive an over-expenditure reduction because both accounts are in the same Wages & Benefits pool.
• Funds 12, 13, 15 may incur losses up to their available net assets.
• Deficits in other funds mean available resources have been exhausted.

 

If funding is to be obtained from another source to resolve losses or deficits, care must be taken to assure the purpose restrictions for that source are consistent with the expenses incurred in the deficit Operating Unit. This is particularly important because it may be necessary to demonstrate to donors, management or the administration that expenditures can properly be associated with the funding provided to the deficit Operating Unit.

To enhance management of expenses incurred, where initial transactions have been coded properly, it is generally best to move support to the expense rather than moving expenses to available support. This may be done by moving dollar amounts equal to specific expenses or round dollar amounts that are supported by at least that level of actual expense in the deficit Operating Unit. MOVEMENT OF SUPPORT SHOULD NOT OCCUR UNLESS THERE ARE DEFICITS.

Entries to move funding support to resolve deficits should identify the offsetting Operating Unit in the reference field of the journal entry. For example:

Operating Unit	Account	Debit	Credit	Reference
11123456	6109		(600.00)	23654321
23654321	6109	600.00		11123456

To transfer support to resolve Dept X deficit

When moving support from a Fund 11 Operating Unit to another Operating Unit, the dollars moved from the Fund 11 expense category (e.g. supplies or travel) must not be more than the actual expenses in the receiving Operating Unit and again, the purposes of both Operating Units must be consistent.

There are three options to move support to cover deficits:

• Use the xxx9 accounts to keep individual regular accounts pure in both the providing and receiving Operating Units. In this approach use the xxx9 accounts to record an expense debit in the Operating Unit that will provide the support and a credit to a corresponding xxx9 account in the deficit Operating Unit. Revenue accounts (4xxx) should never be used for providing this funding. This option retains the original entries in the regular expense accounts (the non-xxx9 accounts). This approach is preferred where a Fund 11 Operating Unit is "selling" their services or supplies to another Operating Unit. Desired exceptions should be discussed with Financial Services.
• Use the same account numbers for debit/credit amounts on both sides of the transaction. This allows greater granularity of account presentation where it is deemed necessary (e.g. the balances in individual wages, supplies and travel accounts will be displayed net of the support transactions)
• Funds transfer accounts 9250/9260 keep the expense categories pure in both the providing and receiving Operating Units. Funds transfers using 9250/9260 may never be used with Rxxxxxxx or Cxxxxxxx-Operating Units or Operating Units in Funds 11, 21, 51 (for 9250/9260 transfers involving these Operating Units, contact Financial Services). Funds may not be transferred out of a Fund 20 Operating Unit without the approval of the Budget Office. Funds can be transferred into a Fund 20 from Funds 13, 19, 23, and 31 using the 9250/9260 account codes. For more information regarding the use of Fund 20 Operating Units see the Fund 20 Rules document on the Financial Services web page (Services > Accounting > Fund 20 Rules).

6. Projects. Sponsored Research Operating Units (Rxxxxxxx) and Construction Operating Units (Cxxxxxxx) must account for specific expenditures. Adjustments related to deficit Research projects to offset excess expenditures will only be made by the Research Accounting Office. Construction projects and Sponsored Research projects may not receive 9250/9260 funds transfers.

7. Use of 4xxx Revenue Accounts. Sales of products or services from campus businesses in Funds 12, 13, 15 should use accounts 4xxx. Other funds should not use accounts 4xxx, when providing support to other funds. When products or services are sold, campus businesses should properly assign sales to either Sale-Campus or Sales-Off Campus or Sales-Taxable.

• Sales-Campus means that products or services are sold from one BYU department to another BYU department
• Sales-Off Campus means that products or services are sold from one BYU department to students, or other non-BYU customers
• Sales-Taxable means that products or services are taxable when sold from one BYU department to students, or other non-BYU customers

8. Agency Operating Units (47xxxxxx) are not owned by the University. Thus no budget adjustments, funds transfers or journal entries should be processed on their behalf.

• The ONLY transactions that should occur for Agency Operating Units are cash receipts at the Cashier's Office and Agency check payments by the Operating Unit managers. Campus departments and subsystem should not process entries to Agency club accounts. Other situations requiring entries should be discussed with the Financial Services Academic accountant.
• There should be no P.O.s, Purchasing Card transactions, direct billings, (etc.) issued on behalf of an Agency Operating Unit

 

 

	Options When Operating Unit is Overspent
Fund	Adjust Budget	Move support among Operating Unit with consistent purposes to same expense category (same account or xxx9)	To maintain expense history, use 9250/9260 funds transfer via journal entry (May not include Fund 11)
11 Budgeted and General Fund	Yes	Yes	Not allowed
12 General Fund Auxiliary	N/A	Allowed but reduces management info	Yes, preferred
13 Education Related	N/A	Allowed but reduces management info	Yes, preferred
15 Auxiliary and Services Enterprises	N/A	Allowed but reduces management info	Yes, preferred
19 Designated	N/A	Yes, preferred	Allowed
20 Faculty Consolidation	Yes	Yes	Yes, from funds 13, 19, 23, and 31 only
21 Allocated General Endowment	Yes, requires transfer of funding by Budget Office	Yes	By Fin Services
23 Donor Restricted, Satisfied	N/A	Yes, preferred	Allowed
31 Endowment Income	N/A	Yes	Allowed
35 Quasi Endowment	N/A	No	By Fin Services
39 Plant Fund	N/A	No	Yes, required
R- Research Projects	N/A	By Fin Services	No
C-Construction/WIP Projects	N/A	No	No
47 Deposits Held for Others - Agency speedtypes ONLY receive checks or pay by check, no other campus entry methods should be used, including CPOs	N/A	No	Not allowed
51 Donor Restricted	N/A	Yes	By Fin Services
55 Quasi Endowment	N/A	No	By Fin Services
17,32,37,43,53,55,72,73,76,77,89 Funds Used By Financial Services Only	N/A	No	By Fin Services