The focus of a fund accounting system is the proper classification of resources (revenue). Therefore, the key to higher education fund accounting is a thorough understanding of the proper accounting for all revenues.
Once the revenue is properly accounted for in the correct fund, and therefore in the correct fund group, then the expenditure of that revenue naturally follows.
Fund
The first building block of a fund accounting system is defining what constitutes a fund. A fund is a self-balancing set of accounts for recording assets, liabilities, net position and changes in net position (revenue, expense and cash transfers). At CU, we use the term fund very specifically and somewhat more generically, though it always ties back to a self-balancing set of accounts.
In the Finance System, there is a coding structure that is made up of blocks of information called ChartFields. A fund is one of these ChartFields. In this use, a fund is included in a unique combination of ChartFields of either the fund/organization/program or the fund/organization/project. Each unique combination is most commonly referred to as a FOPP or FOPPS, but can also be referred to as a speedtype or, generically, a fund. Each of these unique FOPPS is set up to track and account for a unique activity’s resources and use of those resources, separate from the accounting for all other resources and activities of the university. Each FOPPS then uses accounts (from the chart of accounts) to classify the assets, liabilities, net position, revenues, expenses and cash transfers of that FOPPS. The revenues, expenses and cash transfers are used to report the change in net position of that FOPPS from one fiscal year to the next. Each FOPPS is a self-balancing set of records for that unique activity’s financial transactions. Refer to chapter 5 of the Guide, Accounting Structure, for more details about the ChartField combinations.
Fund Group
The second building block identifies and defines the purpose of each fund with its proper fund group. Institutions of higher education typically have the following fund groups and subgroups.
CU uses the Finance System fund ChartField to identify its fund groups and thereby assign each FOPPS to the proper fund group or subgroup.
There are several funds that are used exclusively by CU System Administration and Treasury. They are: Endowments in Fund 60 and pooled investment earnings (PIE) in Funds 75, 76, 77, and 79. Because these funds are not used at the campus level, they are not included in this chapter.
The following table shows how the Finance System funds structure are grouped and the corresponding classification under the NACUBO Supplemental Financial Statements Report Funds.
| Finance System Funds Structure | NACUBO Supplemental Financial Statement Report Funds |
|---|---|
| Current Funds - Unrestricted | |
| 10 - General Fund | State Appropriated Funding |
| 11 - ICR (Indirect Cost Recovery) | |
| 12 - Cost Share Unrestricted Gen Op | |
| 20 - Auxiliary TABOR Enterprises | Auxiliary & Self-funded Activities |
| 22 - Cost Share Auxiliary Enterprises | |
| 23 - Self Funded Projects (Denver only) | |
| 26 - Auxiliary Other Exempt | |
| 28 - Auxiliary Internal Service Centers | |
| 29 - Auxiliary Non-Enterprises | |
| Current Funds - Restricted | |
| 30 - Grants and Contracts | Restricted Funds |
| 31 - Grants and Contracts | |
| 32 - Cost Share Sponsored Projects | |
| 33 - Grants and Contracts (SA) | |
| 34 - Gifts | |
| 35 - Gift Projects (Denver only) | |
| 36 - Development | |
| Loan Funds | |
| 50 - Loan Funds | Student Loan Funds |
| Plant Funds | |
| 70 - Cost Share for 7X Funds | Unexpended |
| 71 - Capital Construction | |
| 72 - General Fund Renewal & Replacement | |
| 78 - Auxiliary Renewal & Replacement | |
| 73 - Retirement of Indebtedness | Retirement of Indebtedness |
| 74 - Investment in Plant | Investment in Plant |
| Agency Funds | |
| 80 - Agency Funds | Restricted Fund |
In addition to these funds, CU also has two presentation funds in Fund 98 and Fund 99. Transactions in these funds are entered by the Campus Controller’s Office.
Fund 98: This non-budget activities fund is used to separate out non-budget activity from budgeted activity. CU Boulder uses this fund to record entries for compensated absences liability, alternative medical plan liability, other post employment benefits liability and scholarship allowance.
Fund 99: This financial presentation fund is used solely for entries to adjust our financial statement presentation from the entity-wide perspective. Most of these entries arise from showing activities between the various fund groups that would result in inflating revenues and expenses if they were not offset. Examples are: