THE COLOR OF MONEY FUND U$E Sandra Perez Alan Williams 8/2/2019

Agenda Questions [Parking Lot] Review [Important Concepts and Definitions] Fund Groups Fund Uses Restrictions & Designations

QUESTIONS [Parking Lot] ???

REVIEW FUND: An income source established for the purpose of carrying out specific activities in accordance with special regulations, restrictions or limitations. 5 digit number assigned - identifies the source of the funds. The sponsoring agency specifies the terms and conditions of the Funding.

FUND GROUPS

CURRENT FUNDS (1)

CURRENT FUNDS (2) Group of funds expendable for operating purposes in support of the institution’s mission; expected to be spent in the near term Unrestricted [e.g. *General Funds*, Tuition, Unrestricted Gifts] Restricted [e.g. Lottery Funds, State Special Funds for Research, Restricted Gifts] Designated [e.g. SSF, SMH, *SGFs*: 19903, 19906, 19912, 19924, 19948, 19969, 19955, 19956]

CORE FUNDS State General Funds: 19900 – General Fund 19903, 19906,19912,19924,19948,19969,19973, 19955, 19956 UC General Funds: 19933 – UCGF – FICR 19942 – Nonresident Supplemental Tuition 19931,19932, 19934, 19941 Tuition & Fees: 20095* - Tuition 20000/20005 – Student Services Fee/Student Mental Health 20045 – Professional Degree Supplemental Tuition [Technology Management] 20293 – Summer Session – UC Matriculated Students

EXTENDED - CORE FUNDS [ICR] Federal Indirect Cost Recovery: 19933 – UC General Fund [FICR] 07427 – Opportunity Fund 69750 – Off the Top 69763 – Garamendi State Indirect Cost Recovery: 19933 – UC General Fund [SICR] Private Contracts & Grants Indirect Cost Recovery: 05397 – Educational Fund [PICR]

Core Funds ≠ Free Benefits CORE FUNDS USES Provide permanent funding for UC’s core mission and support activities. These include: Faculty Salaries and Benefits Academic and Administrative Support Student Services Operation & Maintenance of Plant Financial Aid Core Funds ≠ Free Benefits

SGFs RESTRICTIONS No Auxiliaries and Intercollegiate Activities Expenditures [State Budget Act] No Alcoholic Beverages & Tobacco Expenditures [BFB BUS-79] Restrictions for Capital and Deferred Major Maintenance Only Projects Per Capital Plan & DM Plan - Approved by State Department of Finance Entertainment & Travel [except per policy approval, BFB BUS-79] Gifts to non-university individuals & organizations [except to a student for academic achievement, BFB-G-42] No Student Services Support Activities (Function 68) [OP Funding Streams Technical Instructions]; Exception - Fund 19912 & 2016-17 LCFF Funding

TUITION Regental Policy: “To fund student financial aid and related programs: admissions, registration, administration, libraries, and operation and maintenance of plant. Tuition may be used for general support of the University's operating budget. Revenue from Tuition may be used to fund all costs related to instruction, including faculty salaries. “ Designation: Financial Aid Restriction: No Capital Funding

STUDENT SERVICES FEE/SMH Regental Policy: “Income generated by the Student Services Fee (formerly referred to as the University Registration Fee) shall be used to support services and programs that directly benefit students and that are complementary to, but not a part of, the core instructional program. These services and programs include, but are not limited to, operating and capital expenses for services related to the physical and psychological health and well-being of students; social, recreational, and cultural activities and programs; services related to campus life and campus community; technology expenses directly related to the services; and career support.” Designations: Student Support Svcs, Student Mental Health, and Financial Aid Restriction: No expenditures for Core Instructional Program

OTHER CURRENT FUNDS [Not CORE] Other Restricted State Funds [Lottery Funds and Research Grants: Tobacco, Aids, etc.] Other Fees: Campus Based Fees Extension Course Materials Miscellaneous Other Income Funds & Services Sales & Services [Educational Activities] Sales & Services [Auxiliary Enterprises] Gifts & Endowments Extramural Funds

RESTRICTED FUNDS State Special Lottery Funds: (18082, 18084, 18086) -- For Instruction and Instructional Support Activities State Special Funds: (18XXX) -- For Specific Research Activities Restricted Contracts & Grants & Some Gifts -- Per Grantor and Donor specified instructions. Extramural Funds -- Contracts & Grants for Specific Research Activities

CALIFORNIA LOTTERY FUNDS California State Lottery Act of 1984 states “that all funds allocated from the California State Lottery Education Fund shall be used exclusively for the education of pupils and students and no funds shall be spent for acquisition of real property, construction of facilities, financing of research, or any other non-instructional purpose.” FUNDS: 18082, 18083, 18084, 18085, 18086 USES: Instructional Computing Instructional Equipment Instructional Support Library Support Science and Math Initiative

SUMMARY RESTRICTIONS: GAAP; Legislative Acts; University Policy DESIGNATIONS: Specific Set-asides or Agreements between funding and receiving entities RULE OF THUMB: If in doubt, consult with Accounting, Budget Office; or research policies and campus pronouncements. Think about how it would sound as a headline in the newspapers

QUESTIONS Use of Summer Session [20293] Funding: 20293 is Tuition from Summer Session and has the same use and restrictions as regular Tuition, fund 20095. NO research, Sales & Services [Auxiliaries], and Capital expenditures are allowed. 18082 is one of the Lottery Funds: Lottery funds are designated for Instruction and Instructional Support activities. Research is prohibited => no accounts in 44xxxx or 59xxxx. Therefore, IRCA expenditures are disallowed if the costs are going to hit accounts in research function accounts [44-59xxxx]. UNEX [University Extension]: Funding from Extension Courses is not considered core funding. Funding from these fees is to support the programs. NSFAS [Non-State Funded Administrative Support]: Assessment to non-state funded units for campus overhead [Administrative Support].   STIP [Short Term Investment Pool]: Interest earned from short term cash investments. It is highly discretionary funding. Income Funds: Departments need to be clear what the income fund is for [source and uses]. If unrestricted, it can be used to fund shortfalls in other funds in the same or similar Fund Group.

REFERENCES 2016 CA Budget Act: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160SB826 UC Budget for Current Operations: http://ucop.edu/operating-budget/_files/rbudget/2016-17budgetforcurrentoperations.pdf Regent Policy 3101: [A. Tuition; B. Student Services Fee] http://regents.universityofcalifornia.edu/governance/policies/3101.html Gifts: http://www.bfs.ucsb.edu/extramural-funds/gifts Endowments: http://www.bfs.ucsb.edu/extramural-funds/gifts Capital Funding: Contact Mark Nocciolo, Mark.Nocciolo@ucsb.edu [805-893-2491] Business & Financial Services: http://www.bfs.ucsb.edu/controller/resources Health Sciences Faculty Salary: http://www.ucop.edu/academic-personnel-programs/_files/apm/apm-670.pdf OP Contracts & Grants Policy: http://www.ucop.edu/research-policy-analysis-coordination/resources-tools/contract-and-grant-manual/index.html OP Business and Financial Bulletins: http://policy.ucop.edu/manuals/business-and-finance-bulletins.html A Series – Accounting [e.g. A-47 Direct Costing Procedures] G Series – General [e.g. G-42 Policy on Gifts Presented to Non-Employees on Behalf of University] BUS Series – Business Affairs [e.g. BUS-79 Expenditures for Entertainment, Business Meetings and Other Occasions]