1. Disbursement Funding & Accounting Business Manager Curriculum
February 2014
Facilitators:
Sonja Austin
Kim Seamans

2. Agenda & Objectives Agenda: Refer to handout Objectives:
By the end of this session, you should
Be familiar with the main types of University Funds and what they can be used to pay for
Understand the general principles of choosing correct Expense Account Codes
Be able to identify key issues related to disbursement funding and accounting, analyze why these issues exist, and determine potential solutions

3. Disbursement Funding What am I allowed to buy with what funds?
Presented by:
Sonja Austin, Treasury Services

4. Ordinary Business Expenditures
Types of Expenditures
Ordinary Business Expenditures
are routine, operational, and easily documented as those supporting the University’s mission:
Faculty/Staff Salaries
Classroom, Research, and Support Equipment and Supplies
Plant Operation and Maintenance
Unallowable Expenditures
Those that confer a personal benefit
Nonoperational expenditures

5. “In-between” Expenditures
Types of Expenditures
“In-between” Expenditures
for
Business Relations
Conferences, Seminars, Workshops, Committee Meetings, Training Sessions, Retreats
Cultivation of donors and development of community/institutional relations
Recruitment
Retirement and Faculty Receptions
Student-oriented activities
Convenience item for employees
Food & Beverage
Sponsorship
Amenities, Awards, Gifts
Entertainment
The Food, Beverage & Amenity (FB&A) Form (on FS Forms website) is required to be submitted with these reimbursement requests.
See Instructions tab for examples. Remember to:
Submit form with reimbursement request, including supporting documentation
Have the form signed by the individual requesting reimbursement
Other expenditures that have certain restrictions:
Gross-up payments
Parking expenses
Relocation and moving costs

6. Use of Funds
Appendix A of Policy Matrix of Allowable Expenses by Fund Type

7. Determined when money comes into the University.
COLOR OF MONEY
Determined when money comes into the University.
Cannot be changed by anyone within the University.
Drives many accounting decisions.
Fund accounting

8. Unrestricted Funds State General Funds Tuition and Fee Revenue
Institutional Trust Funds
Unrestricted gifts
Endowment income (unrestricted endowments)
Contract/grant residuals
Certain Conference residuals
F&A Funds (Overhead receipts)
Sales and Services (Recharge Units, Conference & Event fees)
Student Auxiliary funds
Student fees

9. Must be determined by external parties Institutional Trust Funds:
Restricted Funds
Must be determined by external parties
Institutional Trust Funds:
Grants and contracts (except exchange transactions)
Restricted gifts
Restricted by donor for the college or department
Can be further restricted to how you spend the funds (e.g., scholarships)
Income from restricted endowments
Restricted Appropriations

10. Discretionary Funds Can be Restricted or Unrestricted
For Restricted funds, if outside party did not restrict funds to certain account codes (books, scholarships), funds can usually be labeled as discretionary
Still must have a business purpose and follow all the expenditures policies and procedures of the University
Identification of Discretionary Funds
New funds will be marked when created as discretionary (if applicable)
Older funds will be reviewed at dept.’s request to see if they qualify for discretionary spending

11. Other Types of Funds Endowment Funds Agency Funds Capital Funds
Debt Service funds
Annuity and Life Income Funds
Loan Funds

12. Endowment Funds True Endowment Funds Quasi Endowment Funds
Only created by outside party
Must be held in perpetuity
Only the income can be spent (i.e., spending policy)
Quasi Endowment Funds
Restricted if formed with restricted sources
Unrestricted if formed with unrestricted sources
Function like endowments
Management/Board decision to treat funds as endowment
Generally, only income is spent, but principal can be divested upon management decision
Term Endowment

13. How These Funds Work at UNC Charlotte
New wording to revised Policy Stmt 601.8

14. Summary of Fund Types* Type of Fund Fund # Range Managed by
Appropriated (General)
Budget Office
ITF: Overhead Receipts
120xxx
Treasury Services
ITF: Unrestricted
ITF: Auxiliary & Student Fee
3xxxxx
ITF: Grants & Contracts
5xxxxx
Grants & Contracts Admin
ITF: Restricted
6xxxxx
Agency
83xxxx
Foundation
N/A for Chart 1
We will go over these in more detail in the next slides
* Main fund types generally used by campus for spending purposes

15. Main Colors of Money at UNC Charlotte
Money comes from
(in the form of)
Type of Fund
Purpose Restrictions*
Fund # Range
Managed by
State (Appropriations),
Students (Tuition, General Fees), Misc. (surplus sales, utility reimb)
General Funds
Mainly Unrestricted.
Must be used by end of fiscal year (6/30).
Budget Office
Customers/Students (Auxiliary Services fees, revenues)
ITF: Auxiliary & Student Fee
Unrestricted to owners of funds.
3xxxxx
Donors (Gifts)
Foundation (initially)
Must be used consistent with purpose required by donor. primarily restricted, but may be unrestricted.
N/A
(Chart 1 - 6xxxxx)
Treasury Services
Research agencies (Grants & Contracts awarded)
ITF: Grants & Contracts
Must be used consistent with grant/contract restrictions.(restricted)
5xxxxx
Grants & Contracts Admin
Designated Student fees (e.g., Debt Proceeds paid from student fees)
Capital
Restricted to designation.
88xxxx
Other
ITF
Depends
12xxxx- 13xxxx
Another way of summarizing/looking at the different funds here at UNC Charlotte

16. Important Takeaways
University Funds hold different use restrictions depending on the source of funds
Discretionary Funds are a type of fund that have the most flexibility in terms of use
Refer to Policy for spending restrictions on certain funds
Expenditures can generally be lumped into 3 categories of allowability:
Ordinary business expenditures
Unallowable/nonoperational expenditures
Expenditures that require additional documentation (e.g., via FB&A form)

17. The following slides are for Reference Only
Disbursement Funding
What am I allowed to buy with what funds?

18. Appropriated Funds Type of Fund Fund # Range AKA General Funds
Appropriated (General)
ITF: Overhead Receipts
120xxx
ITF: Unrestricted
ITF: Auxiliary & Student Fee
3xxxxx
ITF: Grants & Contracts
5xxxxx
ITF: Restricted
6xxxxx
Agency
83xxxx
Foundation
N/A for Chart 1
AKA
General Funds
State Funds
Definition
Moneys appropriated by the State
All other moneys collected that must be deposited into the General Fund
Generally Unrestricted
Examples
Regular Tuition
Distance Ed Tuition
Summer Tuition
Extension Instruction Fees
Surplus Sales
REFERENCE ONLY
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

19. Institutional Trust Funds (ITFs)
Type of Fund
Fund # Range
Appropriated (General)
ITF: Overhead Receipts
120xxx
ITF: Unrestricted
ITF: Auxiliary & Student Fee
3xxxxx
ITF: Grants & Contracts
5xxxxx
ITF: Restricted
6xxxxx
Agency
83xxxx
Foundation
N/A for Chart 1
AKA
ITFs
Trust Funds
Definition
Non-appropriated Funds that aren’t General, Special, or Capital funds
Not bound by G.S. 143C restrictions of State Budget Manual,* but same guiding principles apply
Source determines allowable use of funds
REFERENCE ONLY
Restricted and Unrestricted ITFs can be Discretionary
*Still bound by other budget manual policies such as travel, personnel regulations, etc.
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

20. ITFs: Overhead Receipts
Definition
Funds generated by charging the F&A (Facilities & Administrative) rate to externally sponsored projects (grants & contracts) of which departments retain 10% as cost recovery monies.
Type of Fund
Fund # Range
Appropriated (General)
ITF: Overhead Receipts
120xxx
ITF: Unrestricted
ITF: Auxiliary & Student Fee
3xxxxx
ITF: Grants & Contracts
5xxxxx
ITF: Restricted
6xxxxx
Agency
83xxxx
Foundation
N/A for Chart 1
Examples
O/H Biology
O/H School of Architecture
Use is governed by UNC BOG Policy – must support scholarly development of faculty, staff, and students to sustain academic programs and campus infrastructure, and to encourage and expand research.
REFERENCE ONLY
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

21. ITFs: Unrestricted Sources include:
Gift funds not restricted by external party in terms of purpose
Residual balances of fixed fee contracts
Sales/services revenue from recharge units
Type of Fund
Fund # Range
Appropriated (General)
ITF: Overhead Receipts
120xxx
ITF: Unrestricted
ITF: Auxiliary & Student Fee
3xxxxx
ITF: Grants & Contracts
5xxxxx
ITF: Restricted
6xxxxx
Agency
83xxxx
Foundation
N/A for Chart 1
Examples
University Unrestricted spending portion of endowments
137051, Matthew Whelan Research Residual
137066, Urban Education RU
REFERENCE ONLY
Use is unrestricted
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

22. ITFs: Unrestricted – Subcategories
Research Residuals
Residual balances of fixed-fee contracts (5xxxxx)
Generally, funds are unrestricted per terms of the contracts, but UNCC practice is that spending is related to the original contract purpose or at least research-related.
Recharge Units (RU)
Primary purpose: provide goods and services to UNCC community for a fee (may also be provided to external users). Should help further the University’s educational, research, and community service goals.
Generally, funds are unrestricted, but UNCC practice is that spending must support operations, and revenues must be reinvested in the RU.
Contact Cost Analysis department within Grants & Contracts Administration (currently Sandra Haynes) to establish a Recharge Unit.
REFERENCE ONLY
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

23. ITFs: Student Auxiliary & Student Fee
Type of Fund
Fund # Range
Appropriated (General)
ITF: Overhead Receipts
120xxx
ITF: Unrestricted
ITF: Auxiliary & Student Fee
3xxxxx
ITF: Grants & Contracts
5xxxxx
ITF: Restricted
6xxxxx
Agency
83xxxx
Foundation
N/A for Chart 1
Definition
Funds generated by fees and activities that support student attendance at the University
Examples
Housing, Dining, Student Centers (e.g., Student Union), Student General Fees (e.g., Education & Technology, Application Fees), Athletics
REFERENCE ONLY
Use is unrestricted except for certain student fees (e.g., Athletics)
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

24. ITFs: Grants & Contracts
Type of Fund
Fund # Range
Appropriated (General)
ITF: Overhead Receipts
120xxx
ITF: Unrestricted
ITF: Auxiliary & Student Fee
3xxxxx
ITF: Grants & Contracts
5xxxxx
ITF: Restricted
6xxxxx
Agency
83xxxx
Foundation
N/A for Chart 1
Definition
Funds received from federal, state, municipal, non-profit, and industrial entities restricted to support a specific use or purpose defined in the award document or agreement.
Examples
Secure Info Sharing
Efficacy of Soybean-based Vaccines
REFERENCE ONLY
Restrictions:
As defined in the award document/ agreement.
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

25. ITFs: Restricted Type of Fund Fund # Range Definition
Appropriated (General)
ITF: Overhead Receipts
120xxx
ITF: Unrestricted
ITF: Auxiliary & Student Fee
3xxxxx
ITF: Grants & Contracts
5xxxxx
ITF: Restricted
6xxxxx
Agency
83xxxx
Foundation
N/A for Chart 1
Definition
Gift funds restricted by the donor in terms of purpose
Examples
Africana Studies Scholarship Fund
Urban Design Studio Fund
Restrictions:
Donor-driven
REFERENCE ONLY
Includes:
Most non-endowed scholarships
Restricted spending portion of endowments
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

26. Can be used for any expenditures that comply with agency restrictions
Agency Funds
Definition
UNCC acts as custodian or agent
UNCC has fiduciary relationship with organization, club, etc.
Associated with campus activities
Type of Fund
Fund # Range
Appropriated (General)
ITF: Overhead Receipts
120xxx
ITF: Unrestricted
ITF: Auxiliary & Student Fee
3xxxxx
ITF: Grants & Contracts
5xxxxx
ITF: Restricted
6xxxxx
Agency
83xxxx
Foundation
N/A for Chart 1
Examples
Student Orgs (830278, Phi Kappa Phi)
Funds donated for benefit of faculty/ staff, e.g., flower, coffee funds
Residual conference funds that do not belong to UNCC (830271, UNC Financial System Conf 2013)
REFERENCE ONLY
Can be used for any expenditures that comply with agency restrictions
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

27. Non-appropriated Funds held in the Foundation or Athletic Foundation
Foundation Funds
Type of Fund
Fund # Range
Appropriated (General)
ITF: Overhead Receipts
120xxx
ITF: Unrestricted
ITF: Auxiliary & Student Fee
3xxxxx
ITF: Grants & Contracts
5xxxxx
ITF: Restricted
6xxxxx
Agency
83xxxx
Foundation
N/A for Chart 1
Definition
Non-appropriated Funds held in the Foundation or Athletic Foundation
Examples
Donor gifts – Restricted & Unrestricted (Chancellor’s Fund)
Esther Fishel Art Schlshp (670396)
EPIC Manf. Research (660575)
REFERENCE ONLY
In examples, the 6xxxxx funds in parentheses are the corresponding scholarship funds on Chart 1
Can be used for
If Restricted, uses must be consistent with donor restrictions
If Unrestricted, spend in accordance w/Foundation board approved budget
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

28. Transferring Funds
Concept: Transferring money from one fund to another to support another department/fund/program (via JV).
Example: Deficit cash coverage for a program in another department.
General Rule: A transfer of funds to another fund must follow the same restrictions imposed by the external parties.
Examples:
Cannot transfer Restricted funds to Unrestricted funds.
Cannot transfer General Funds out of the General Fund.
Get input from Gen accting?
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

29. New Banner Funds Link to form:
See Instructions tab for documentation needed depending on source of funds.
Remember to:
Attach requested support
Complete Attachment A
Have the form signed and approved
Describe how to request a new Banner fund
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

30. Also see University Policies: 706, Alcoholic Beverages
601.15, Control and Management of University Equipment and Other Property
101.18, Employee Gifts, Prizes, and Awards (under development)
University Manuals:
Purchasing Manual
Purchasing Card Manual
Allowable/Non-Allowable Expenses on the Purchasing Card
Travel Procedure Manual
Petty Cash/Change Fund Procedures
Statewide Guidance:
North Carolina Budget Manual (see
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

31. The Puzzle of Endowments
How are University investments accounted for?
Presented by:
Sonja Austin, Treasury Services

32. Objectives By the end of this presentation you will be able to:
Item 1
Define an endowment fund and distinguish between true, term , and quasi
Item 2
Understand how endowments are recorded in Banner
Item 3
Understand what the current endowment spending policy is, and what is meant by “underwater endowment”
Item 4
Have a cursory understanding of the regulatory environment and of reporting standards for endowments
Item 5
Have an introductory understanding of the investment side of endowments, (asset allocation, investment managers, UNCCIF)
The first thing we are going to look at is what exactly IS an endowment , and then talk about the 3 different types.
Then we are going to talk about how we record them in Banner and how you look them up to see the most recent balance.
Next we will take a look at the spending policy and talk about how we have calculated it up till now, the new method we will be using to calculate it going forward, and why we are changing it.
We will also discuss what we mean when we say underwater endowment, and how that affects funds available to spend.
We will briefly touch on the regulatory environment and the reporting standards we have to work with when dealing with endowments.
Next we will briefly discuss the investment side of endowments, where we will discuss investment managers, asset allocation, and UNCCIF.
By this point I expect your eyes will be glazed over and your brain numb, so we will end on a lighter note talking about why endowments (and pledges) are important to universities in general.
Item 6
Understand the importance of pledges, and also endowments in general to universities

33. When you think of endowments do you turn into one of these people?

34. What exactly is an endowment, and how does it differ from other funds?
Elements that make up a typical endowment:
Donor gift is received that meets or exceeds endowment levels as determined by University Advancement
Donor states (via the endowment document) that the gift is to be maintained in perpetuity
Distribution of income is via the annual spending policy calculation
There are 3 components to a typical endowment:
Donor gives a gift that meets or exceeds the minimum level for an endowment. This level can vary from non-profit to non-profit, so we can’t say that a gift of XX dollars automatically makes it an endowment
The donor must state that the gift be maintained in perpetuity. A donor could give a gift that meets the endowment threshold, but unless the donor states that the gift must be maintained intact and only the income spent , then it is not an endowment.
And finally the third component is that the distribution of income occurs via an established spending policy calculation.

35. Types of Endowments
True Endowment - a fund in which the donor has specified that the gift must be maintained in perpetuity and invested to produce income
Quasi Endowment - a fund set aside by the institution’s governing board to be managed as if they carried external endowment stipulations
Term Endowment - a fund that a donor specifies must be held as an endowment until the passage of a specified period of time or the occurrence of an event
Now we will look at the types of endowments:
The first one we are going to talk about is the most common type, and that is called a true endowment. Since it is the most common type we just finished discussing the elements of it on the prior slide. So to review, a true endowment is created when a donor gives an endowment level gift, states that we must maintain the gift in perpetuity and only disperse income according to the spending policy of the institution.
The second type of endowment is called a quasi endowment. A quasi endowment is created by internal management decision, not by a donor’s direction. For example, a decision to create a quasi endowment can occur if a Dean or Chair has a fund that has a large balance, and they want to insure that the fund’s purpose has a guaranteed stream of income in the future, (s)he could use some of that fund balance to create an endowment.
Term endowments are the least common type of endowments. Currently UNCC does not have any term endowments on our books.

36. Endowment Principal
Original & subsequent gift(s) that were received to establish the endowment (aka corpus)
Historic dollar value – fair value of the fund when received, plus subsequent gifts and other additions specified by the donor(s)
Fund numbering in Banner:
H2xxxx for University
H1xxxx for Foundation
G6xxxx for Athletic Fdn.

37. Endowment Earnings Come from market gains and losses
Represents investment performance over the life of the endowment.
Funds the endowment spending.
Fund numbering in Banner:
R2xxxx for University
R1xxxx for Foundation
R6xxxx for Athletic Fdn.

38. Total Market Value Combination of : Fund numbering in Banner:
Principal
Earnings and realized gains and losses
Unrealized gains and losses
Fund numbering in Banner:
E2xxxx for University
E1xxxx for Foundation
E6xxxx for Athletic Fdn

39. In summary: Start with “H” or “G” Original and subsequent gifts,
Add the “R” values.
Investment performance less spending to date.
Result is “E”
Fair market value, or FMV
The “E” is the value that is reported when some asks what the value of XX endowment is.
Now let’s move on and talk about the spending policy and the various issues related to that topic.

40. Spending Policy Competing Objectives New Spending Policy – Why?
Good business practice to review, especially with roller coaster returns of last few years.
Ideally, long-term investments returns should equal or exceed the inflation rate + spending rate.
Average returns over the next 8 years estimated at 6.2%, and inflation is estimated at 2% per annum. With a 5% spending rate, we need to at least earn 7% (2% + 5% = 7 %, yet returns are estimated to only be 6.2%).
Management and Finance Committee do not believe 5% spending rate is sustainable over time.
Historically a high level of volatility to spending because our spending methodology is based solely on the market (i.e. 5% of market value).
Staff and finance committee believe the Foundation can do a better job of meeting spending goals- budget stability and maintenance of purchasing power.
Competing Objectives

41. Spending Policy Competing Objectives New Spending Policy:
More dependent on changes in Consumer Price Index
Estimated to result in moderate increases over the next couple of years.
Barring any deflation, there should not be any decreases
Maintain spending in FY 2014 at the same dollar amount as FY 2013
Thereafter annual spending will be calculated as follows:
80% times prior years spending adjusted for inflation +
20% times the 4.5% of the average of the prior three years market values as of December 31 each year
Competing Objectives

42. Regulatory Environment of Endowments
UPMIFA – Uniform Prudent Management of Institutional Funds Act
Provides better guidance on what is considered prudent use of endowments based on 7 criteria:
Duration/preservation of the endowment
Purposes of the charity and of the endowment
General economic conditions
Effects of inflation & deflation
Expected total return from earnings & gains
Charity’s other resources
Charity’s investment policies

43. Financial Reporting of Endowments
Accounting standards require that endowment principal (original and subsequent gifts) be recorded separate from the earnings and market gains and losses
Pledges, although they are very important, are not tracked in Banner Finance, and an endowment fund at UNC Charlotte is not created when a pledge is received, but rather when payment is received on the pledge

44. Underwater Endowments
How do we manage risk?
What are Underwater Endowments and how do we manage them?

45. How are Endowments Invested?

46. The Importance of Endowments
Importance grows in an economic downturn
Large endowments make a university more appealing – allows university to provide a variety of programs, services, and opportunities
Wisely invested endowments provide assurance for the continuity of programs and opportunities for students and faculty
Endowment ratios are used to compare universities to one another

47. Disbursement Accounting
How do I classify this purchase?
Presented by:
Kim Seamans, Financial Reporting

48. Importance of Using Correct Accounts
Reporting needs:
Financial Statements
Contributors (e.g., NCAA)
Regulators (e.g., bond issuers)
Management
Governing bodies (Legislature, OSBM, OSC)
If expenses are coded incorrectly, decisions are made using bad information.
(This may result in bad decisions!)

49. Updates are posted to the Admin Chat Listserv
General Rules
Use resources on General Accounting website:
Updates are posted to the Admin Chat Listserv
NOT an exact science!
Goal = Consistency
Consult Reporting & Fixed Assets department
Avoid using “Other” or “Miscellaneous” accounts for recurring expenses
If you do not see a description that fits your situation, ask! We may need to revise an account description or create a new account.

50. Our Resources
The resources we look to and the process that occurs when you ask us an account question:
OSC’s Chart of Accounts for NC Accounting System (NCAS)
Our Banner accounts are linked to these accounts
UNC System
Chart of Accounts
Our internal documents

51. Specific Areas of Confusion
Student Financial Assistance
Accounts in ARCHIBUS
Food Costs
Equipment
49er Mart Purchases
Service v. Maintenance
Telecom, Internet, & Data Processing
Other FAQs
See “for reference only” slides

52. Examples of Inconsistencies
Item/Service Purchased
Account Code Used
Correct Account Code
Parking tokens
920700, Other Contracted Svcs
925440, Non-Employee Transportation
© and Publishing fees
928170, Printing/Binding/Duplicating
953100, Other Admin Costs
Videotaping & transmitting
928130, Video Transmission Charges
Food supplies
951360, Administrative Meals
930200, Food Supplies
Chartwells orders
922150, Contract Svc-Food Svc Event
Staples orders
Various – Should be itemized
Note the Parking Tokens account. We still get questions about this one!

53. Recent Updates
Notification is sent via the Admin Chat Listserv when significant updates are made
Updates are noted in red font in Expense Account documents

54. Important Takeaways
Expenses coded incorrectly  Bad Information  Bad Decisions!
Account code choice ≠ Exact Science
Goal = Consistency
Know your Resources.
The expense account used should describe what is being purchased, not why.
Avoid using “Other” or “Miscellaneous” accounts for recurring expenses.
If you don’t see an account/description that fits your situation, ASK!

55. Expense Account Codes:
Website/Contact Information
Spending Guidelines:
Treasury Services website:
Jane Johansen, Director of Treasury Services,
Sonja Austin, Financial Reporting and Outreach Analyst,
Expense Account Codes:
Reporting & Fixed Assets website:
Tony Georges, Financial Reporting Manager,
Kim Seamans, Senior Financial Reporting Accountant,

56. The following slides are for Reference Only Disbursement Accounting
How do I classify this purchase?

57. Specific Areas of Confusion
Student Financial Assistance
Accounts in ARCHIBUS
Food Costs
Equipment
49er Mart Purchases
Service v. Maintenance
Telecom, Internet, & Data Processing
Other FAQs
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

58. Student Financial Assistance from Departments
Student Scholarships (e.g., $100 for student’s books)
Should be processed via the Scholarship Database* and coded to:
960550, Other Educational Awards
960050, Appropriated Grants
960200, Academic Enhancement Scholarships
Scholarships cannot be paid from the General Fund unless approved by the Board of Governors.
*Use DPR for Non-resident Aliens
Travel Scholarships (e.g., $100 to help student attend a conference)
Should be processed via DPR w/attached scholarship form. Account
When for individual student benefit only .
Travel related to valid University business purpose
Should be processed via a Travel Reimbursement and coded to Travel Accounts.
Laura
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

59. ARCHIBUS – Basic Work Requests
Click small gray box at column heading to sort descending or ascending
See “ARCHIBUS Banner Account Codes info” on FM Archibus Training site
Laura
Basic categories:
Motor Fleet requests
Basic Work Requests (Repairs/Maint, Other FM Services, Equipment, Furniture)
Project Requests
Fuel
Departments should not need to use the accounts in the FM Only or Capital Projects lists
Basic Work Requests =
a) Basic maintenance to keep facilities operational and safe
b) Billable work <$2,500 and generally involving only one trade (e.g., after-hours housekeeping, hanging items on walls, furniture repair)
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

60. ARCHIBUS – Informal Project Requests
Account
Account Descr
Use
928355
Projcts-Repair/Maint/Replace-Noncap
For Informal Non-capitalized projects - Projects performed by FM Design Services that repair, maintain, or replace an existing building/asset. Examples: roof, plumbing, electrical repairs; interior decorations; replacement of a part or building component with a new part of the same type and service capabilities.
948355
Projcts-Constr/Renov/ Imprv-
Captlize
For Informal Capitalized projects - Projects performed by FM Design Services that are new construction or projects to renovate and/or improve an existing building/asset that increase future service potential of the building/asset. Examples: projects that increase square footage; conversion of shell space to usable office, research, or classroom space; attaching new structures to buildings; original installation or upgrade of heating/cooling systems, plumbing, electrical wiring, etc.
Laura
Informal Projects: For major work involving a larger scope than that of a WR
FM = Facilities Management
WR = Work Request
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

61. Food Costs Purpose/Use Account Account Name Examples
Employee Travel meals
925200/
925360/
926150
Employee Subsistence-Meals
(in-state/out of state/out of country)
Reimbursable meal at training
Non-employee meals (incl. board members)
925460
Board/Non-Employee Subsistence
Lunch for interviewee
Food for Resale
931550
Purchases for Resale-Food & Drinks
Candy, soda for sale
Catering (Contracted service), incl. Chartwells
922150
Contract Svc-Special Food Svc Event
Catering for event
Food supplies (food, beverages, condiments; not prepared meals)
930200
Food Supplies
Snacks for training; bread for sandwiches
Alcohol
930210
Unallowable F&A – Alcohol
Prepared Administrative Meals and food costs not classified elsewhere
951360
Administrative Meals
Business-related meals
Kim
Reference: “Food Costs” tab of List of Expense Account Codes
Wednesday, September 19, 2018

62. Equipment and Furniture
Capital v. Non-capital Thresholds
$5,000 for each piece of equipment/furniture
$100,000 for each item of software
Items whose costs are equal to or greater than these thresholds are considered capital and will be depreciated over their estimated useful lives
What’s included in the cost of each item?
Purchase price + all costs necessary to place the asset in service, including: Shipping and delivery costs, setup and installation costs, legal fees, sales tax
Allocate if multiple items purchased with one shipping charge.
See Fixed Assets Guidebook:
Reference: 1st tab of List of Expense Account Codes > Fixed Asset Accounts
Wednesday, September 19, 2018

63. 49er Mart Purchases
Make sure to include adequate DETAIL so that reviewers can determine correct accounting
Full description of item/services
Itemized documentation of goods/services
Reason/purpose for the purchase
Don’t lump total costs if separable items and services are being purchased.
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

64. Service v. Maintenance Repairs & Maintenance
One-time or short-term service to repair property
Both parts and labor should be coded to this expense account
Repairs & Maintenance
Ongoing support for property
Usually an agreement of 1 year or longer
Note – Repairs are corrective and restorative following wear and deterioration. Maintenance is preventive and anticipatory.
Maintenance Contracts/Service Agreements
Contracts/agreements other than maintenance
For professional and consultative personal services
Contracted Services
Contracted Services – examples, Legal or Accounting
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

65. Telecom, Internet, & Data Processing
ITS/Telecom ONLY
Campus Phone and Data Services
Data Processing
Telephone Services
Local
Long Distance
Internet/Network Device Services Dept. Use
928110, MCD Allowances
928140, Misc Internet (Wi-Fi)
928141, Telecommuting Internet Reimb.
Misc Services
Teleconference
/Calendar Services
Video Transmission
Departments should mainly only need to use the Internet/Network Device Services category of accounts.
See Expense List and Account Descriptions for account numbers and descriptions.
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

66. FAQ #4 – Accounts describe the ‘What’
Q: I am purchasing software to be used exclusively in the classroom. Should this be classified in account:
Educational Supplies
Other Educational Equip Non-Cap, or
Software-PC/Printer Non-Cap?
A: The expense account used should describe what is being purchased, not why.
We want to record all software being purchased as “software,” regardless of intended use, e.g., in a classroom or office.
The fund number will indicate the function supported by the expenditure, e.g., administrative, instructional, research.
Therefore, the best account to use here is
Software PC/Printer Non-Cap.
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

67. FAQ #10 – Educational Supplies
Q: What expenses should be recorded using account Educational Supplies?
A: For “purchase of materials and supplies used exclusively for instructional and training purposes.”
Examples:
Exam/testing kits
Educational videos to be watched in class
Teacher’s edition books
Materials for Senior Design Projects
Examples of items NOT to record to Educational Supplies:
Paper (Office Supplies)
Educational software (Capital Equipment - Software)
Chemicals (Lab Supplies)
UNC Charlotte - Financial Services
Wednesday, September 19, 2018

68. FAQ #28 – Current v. Contracted Services
Q: What is the difference between accounts and ?
A: Current v. Contracted services:
Account Other Current Services:
For non-contracted services
That cannot be more specifically categorized
Account Other Contracted Services:
For contracted services
That cannot be more specifically categorized in other Contracted Services accounts
UNC Charlotte - Financial Services
Wednesday, September 19, 2018