Fiscal Operations Manual
Section 1403: Financial Accounting and Analysis
WARNING: THESE ARE NOT CURRENT POLICIES!!
The 0xxxxx series of funds (Fund Type 11) are Education and General Funds (E&G) and Statewide Public Service (SWPS) funds that are subject to expenditure limitations and are funded by a combination of State General funds and other funds (limited) revenue.
Funds 03xxxx are known as Statewide Public Service funds. Agriculture Experiment Stations, Extension Service, and Forest Research Lab are separately appropriated by the State. The funding sources are State General funds and other funds (limited) revenue including Federal USDA appropriations. These funds are restricted as to their use and are not to be expended for instruction costs of University registered students.
Each fund has many indexes which join the fund, organization code (department) and program code (function) together.
Procedure - E&G and SWPS funds are allocated to colleges and units through the budget process. Annual expenditures of these funds should not exceed the budget. External and internal revenue is estimated during the budget process and is posted as available for expenditure.
Expenditures - All costs for carrying out the activity or function should be placed on that index. It is important to be aware of the Program Code (function) on each index. Some are specific for ‘administration’ and some for ‘instruction’. In the case of Agriculture Experiment Station SWPS funds, many indexes have Program Codes restricted to research.
Sometimes an Activity Code is necessary to further define the expense or revenue to a particular activity. This is optional.
For E&G funds, institutional administrative overhead is funded through the budget process.
For SWPS, an institutional overhead is applied to all expenditures and posted as account code 28204 Administrative & Support Service Charge. See FIS 504 OSU Assessments.
Recharging costs incurred in E &G or SWPS funds - When a department/unit wants to recharge E&G or SWPS costs internally within the University and to others external to OSU, the activity (service) being recharged must meet the criteria of a Departmental Cost Center as defined in the “Recharge Activities” policy FIS 519. If the criterion is not met, then Designated Operations, Service Center, or Auxiliary Enterprise funds must be established in order to recharge for the service.
Fees should be developed to cover the direct costs associated with the activity. There are limitations. Fees charged to internal customers may not include unallowable costs, depreciation or capital equipment purchases, building space, building utilities, operations or maintenance costs, land space, or departmental administrative costs.
Fees must be published in either the OSU Internal or External Fee Book, as appropriate, before they may be charged.
See FIS 519 Recharge Activities (Internal & External) for greater detail in calculating fees and documentation of customer usage. This is critical!
Revenue - All cash from recharge activities deposited in E&G or SWPS funds is to carry an income Account Code (06xxx). Cash received as a gift is not to be deposited in these funds; see FIS 102-05: Gift, Grant, and Contract Income.
Use internal sales reimbursements Account Code (79xxx) for non-cash recharge activities. These are completed by Journal Voucher. See FIS 1107: Journal Vouchers.
Record retention - For external (cash) transactions, all documentation including fee, calculation, billing, and receipts should be maintained for three (3) years.
For internal or Journal Voucher transactions, documentation of fee, calculation, and billing must be maintained for eight (8) years because these may involve charges to federal grants or contracts.
OSU Standard No. 580-040-0010