1. Sources of University Funds
How money is different within a University

2. Presentation Outline Types of money
Limitations and spending restrictions
Budget vs. Cash
Lead in slide
Go over length of presentation (30 mins. approximately)
Explain that this is a foundational class that will support the other financial classes for those new to the university or have not been exposed to the various types of funds within the university

3. Types/Color of Money Concessions (Vending) Construction
Sponsored Research
Research Foundation
Foundation
Education & General
Tuition Differential
Carry Forward
Auxiliaries
Local Fees
Athletics
Local Fees – See following slide, then come back to the notes on this page.
Athletics - Money primarily is made from student fees, ticket sales, other forms of revenue exist as well.
Financial Aid – Also discussed in Local Fees slide.
Contracts & Grants - Contracts and Grants (C&G)
Consists of grants, contracts, and other agreements with the University. Fund or monies may consist of federal, federal flow thru, state, not for profit organizations, and private sources.
DSOs – have own slide 2 from this one…give brief idea.
Construction – In slide after Local Fees…3 slides from this one.
Vending - Commissions made from the vending machines are then allocated by the President, to the Vice President, and then to the colleges/departments

4. Source – FSU Budget Office
Local Fees – See following slide, then come back to the notes on this page.
Athletics - Money primarily is made from student fees, ticket sales, other forms of revenue exist as well.
Financial Aid – Also discussed in Local Fees slide.
Contracts & Grants - Contracts and Grants (C&G)
Consists of grants, contracts, and other agreements with the University. Fund or monies may consist of federal, federal flow thru, state, not for profit organizations, and private sources.
DSOs – have own slide 2 from this one…give brief idea.
Construction – In slide after Local Fees…3 slides from this one.
Vending - Commissions made from the vending machines are then distributed by the budget office.
Source – FSU Budget Office

5. Education & General
E&G funds include General Revenue (primarily Florida’s Sales Tax), the Educational Enhancement Trust Fund (Lottery sales), and Student and Other Fees (tuition, out-of-state fees, and other miscellaneous fees).
Educational & General - E&G funds are generated primarily by sales tax and state income tax (note: Florida does not have a state income tax but other states do). The Legislature appropriates a portion to colleges and universities based on enrollment.

6. Tuition Differential
Tuition differential funds are generated through certain increases in tuition or fees
Allowable rate increases varies depending on the type of fee- full details can be found in this 2015 Florida statute
Have additional spending restrictions. Therefore, unique fund code (121) was established to assist with tracking expenses in OMNI
E.g., no funding graduate teaching assistants
Funds are allocated by the Provost
Tuition Differential funds can only be spend on expenditures directly tied to undergraduate instruction. Therefore, an adjunct teaching an undergraduate course is allowable; however, a Graduate Teaching Assistant is not allowable… even if that TA is teaching an undergraduate class.

7. Carry Forward
E&G funds remaining from the previous fiscal year are placed into a Carry Forward fund.
Some universities may sweep these, and/or “certify forward” obligated funds not spent in that fiscal year, as the State of Florida still practices.
Carry Forward - Generally E&G funds remaining from previous fiscal year that are then placed into a carry forward fund if they aren’t swept by the budget office. Some universities may sweep these and/or “certified forward” obligated funds not spent in that fiscal year.
Tuition Differential funds will also be moved to a Carry Forward budget. It will be separate in order to track expenditures, as the funding restrictions still apply.

8. Auxiliaries
Auxiliaries are revenue generating business type activities that support the mission of the institution and provide essential services to the campus community. There are several different types of auxiliaries:
Enterprise
Sales & Services of Educational Activities
Sales & Services of Non-Educational Activities
Materials & Supplies Fees
Other
Examples: FSU-Card Center, Seminole Golf Course, Transportation Services, Telecommunications (now w/ ITS)
A. Enterprise Auxiliaries
Mission: These auxiliaries exist to provide goods or services primarily to University students, faculty, and staff (external users). Examples include University housing, food services, and health centers. Revenues & Cash Balances: For the most part, these auxiliaries may realize revenues in excess of costs on both internal users and external users. Cash balances should be maintained at a level consistent with each auxiliary’s mission and operating plan. OHA: These auxiliaries are charged the “full” OHA rate, which varies from year to year. Typically, the “full” OHA rate is approximately 2.5% of operating expenditures.B. Sales and Services of Educational Activities
Mission: These auxiliaries exist to support instruction, research, and public service both within and outside the classroom, helping to demonstrate classroom or related educational techniques to University students, faculty, staff, or other external users. Any goods or services provided are incidental to the basic instructional or laboratory experience of the user. Examples include University theaters, science stockrooms, and Facilities and Equipment Fees. Revenues & Cash Balances: Billing rates charged to internal users should only recoup costs incurred, while billing rates charged to external users may generate revenues in excess of costs. In general, these auxiliaries may maintain an average month-end cash balance not to exceed 15% of annual operating expenditures. Where billing rates charged to external users generate revenues in excess of costs, cash balances may be higher. In these situations, auxiliaries should be prepared to present a spending plan for the excess cash. The spending plan may include the replacement of auxiliary equipment, potential leave payouts for auxiliary employees, or any other use of resources related to the auxiliary. OHA: These auxiliaries are charged an OHA rate of 0% of operating expenditures if at least 51% of their revenue is from internal users, or 1% of operating expenditures if at least 51% of their revenue is from external users.C. Sales and Services of Non-Educational Activities
Mission: These auxiliaries exist to provide goods and services primarily to University departments (internal users), though they also provide goods and services to University students, faculty, and staff (external users). Examples include University information technology services, photo labs, and copy centers. Revenues & Cash Balances: Billing rates charged to internal users should only recoup costs incurred, while billing rates charged to external users may generate revenues in excess of costs. In general, these auxiliaries may maintain an average month-end cash balance not to exceed 15% of annual operating expenditures. Where billing rates charged to external users generate revenues in excess of costs, cash balances may be higher. In these situations, auxiliaries should be prepared to present a spending plan for the excess cash. The spending plan may include the replacement of auxiliary equipment, potential leave payouts for auxiliary employees, or any other use of resources related to the auxiliary. OHA: These auxiliaries are charged an OHA rate of 0% of operating expenditures if at least 51% of their revenue is from internal users, or 1% of operating expenditures if at least 51% of their revenue is from external users.D. Materials and Supplies Fees
Mission: Materials and Supplies Fee revenue is used to purchase consumable supplies used in labs associated with student credit or non-credit courses. Revenues & Cash Balances: Materials and Supplies Fee revenue should cover exactly the cost of consumable supplies used during the semester, so there should be no revenues in excess of costs. Revenues should come only from student fees that have been approved by the Florida State University Board of Trustees. OHA: These auxiliaries are charged an OHA rate of 0% of operating expenditures.E. Other
Mission: These auxiliaries exist to furnish goods and services to the University community, but do not fit into any of the above classifications. They are maintained by the Budget Office and the Controller’s Office, and are managed by the ASB. Examples include auxiliary overhead salary departments, construction departments, and ASB loans. Revenues & Cash Balances: There are no billing rates for these auxiliaries. Cash balances should be maintained at a level consistent with each auxiliary’s mission and operating plan. OHA: These auxiliaries are charged varying OHA rates between 0% of operating expenditures and the “full” rate, approximately 2.5% of operating expenditures.
Note: Surplus revenues from Market Rate Tuition auxiliaries (OMNI fund 325) may be used in support of non-auxiliary activities, but must follow E&G/auxiliary spending guidelines

9. Local Fees Fees paid by students in addition to tuition
Activity & Service Fee
Athletics Fee
Health Fee
Technology Fee
Student Facility Use fee
Financial Aid Fee
Capital Improvement Fee
Transportation Fee
Typically a portion of the per credit hour cost (in addition to tuition) that students pay for is sometimes referred to as local fees. Money collected from these fees are directed toward programs and services that help enhance the “total” educational experience.
Tech Fee Funds split up to Campus labs, College Deans and Proposal based items.
Technology Fee- OMNI fund 615:
From the technology fee paid by students. Spending should enhance instructional technology resources for students and faculty.
Funding is distributed in three ways: (1) one-third to the colleges based on an allocation model that uses each college’s most recent total student credit hours; (2) one-third to the central IT organizations based on a similar model; (3) most or all of the final one-third to faculty or staff projects that enhance instructional technology.
Student Activity and Service Fee:
OMNI fund 610
Primarily the Activity and Service (A&S) fee, along with some self-generated revenues from the FSU Flying High Circus, the Ogelsby Union, etc.
A&S fee revenues are allocated by SGA and should be spent to benefit the student body in general. A&S fee revenue may not be spent on activities for which an admission fee is charged to students (except for SGA-sponsored concerts).

10. Concessions (Vending)
The concession funds are generated primarily from commissions made from the vending machines, and are then allocated by the President, Vice President, and then to the colleges/departments
Fewer restrictions on spending, see expenditure guidelines
Food, alcohol can be purchase- often used to fund luncheons

11. Construction Funds PECO (Public Education Capital Outlay) fund
Private sources
State Matching
CITF (Capital Improvement Trust Fund)
PO&M (Plant Operation & Maintenance)
PECO Fund – School districts, Florida colleges, state universities, and other education agencies receive PECO funds to construct new facilities or to perform maintenance, renovation, and/or repairs on existing facilities. These funds are also used for site acquisitions and site improvements.
State Matching fund – Cortellis fund – State was 1-1 match and now have a priority list
CITF – from student payments of tuition and capital improvement fee
PO&M – 1. used for hiring staff (custodial workers, maintenance, lawn/grounds, electricians)
2. operating supplies (buying/changing supplies, light bulbs, fertilizers, etc)
3. Utilities

12. Sponsored Research
This fund consists of grants, contracts, and other agreements between the University and government sponsors. Funds or monies may consist of federal, federal flow thru, state, not for profit organizations, and private sources.
Note: Formerly referred to as Contracts & Grants or C&G.

13. Direct Support Organizations (DSOs)
Direct Support Organizations are non-profit organizations that operate exclusively to provide the University with additional resources from private gifts, or other sources.

14. Direct Support Organizations (DSOs)
FSU Foundation
College of Business Student Investment Fund
FSU Research Foundation
Family Medical Practice Plan
Seminole Boosters
FSU Magnet Research and Development
Ringling Museum Foundation
International Programs Association
FSU Real Estate Foundation
Alumni Associations
Financial Assistance
Performing Arts Center Foundation
Separate legal entities, their own tax ID, accounting system, bank accounts, are included on FSU’s annual financial statements
RF will not be found in OMNI

15. FSU Research Foundation
This fund consists of grants, contracts, and other agreements between the University and private (non-government) sponsors. Funds or monies may consist of private corporations, non-profit organizations, and other private sources.

16. FSU Foundation
The FSU Foundation organizes the fundraising activities and funds management for the university. As a DSO, it is a non-profit corporation, today manages an endowment of $370 million and has total assets of $498 million (per Audited Financial Statements as of June 30, 2012 LINK).
Types of funds include scholarships, graduate assistantships, endowed professorships, and general development funds.
The Foundation’s purpose is to raise, manage, and disburse funds for the advancement of the university. Foundation work with colleges, programs, and units of the university to generate private support from alumni and friends. The money may also go towards endowments, scholarships, or may be placed in a general fund for a specific school.
Funds are typically restricted by the donor for a specific purpose.

17. What can be purchased on what fund?
Controller’s Office Expenditure Guidelines
Controller’s Office > Accounts Payable > Expenditure Guidelines
This list is a good, general guide for what is and is not allowable on certain types of funds
“The guidelines provided below are a source of information to help departments make sound purchasing decisions. Special attention may be paid to specific situations. Should you have questions, please call Accounts Payable at (850) ”

18. Budget vs. Cash
How they are different/similar based on the color of money?
E&G: Budget = “Cash” (available balance)
Non-E&G (Auxiliary): Budget ≠ Cash
Sponsored Project: Budget = Cash
Budget on an aux is not the same as cash
Timing of cash is different .. They usually come in gradually over time whereas budget is booked at the beginning of the year
E&G budget = cash
C&G budget is kind of like cash
Cost reimbur-> SRS allows you to spend then invoice sponsored projects
Fixed price -> Cash comes in first, spend from Cash
E&G funds get a “budget. This amount is entered or “booked” into OMNI and is used to control spending. If you have budget available, it is as good as having cash. We will see this in the next presentation and will learn how to look this up in OMNI. Explain about the usage of the term “cash,” and remind them that this term isn’t normally used in association with E&G funds.
Budget on a non-E&G fund is not the same as cash
A non-E&G fund only has cash from collected deposits. At the beginning of the year it “books” budget, but that is estimated revenue and expenditures, not the actuals.
Cost reimburse-> SRS allows you to spend then invoice sponsored projects

19. Spending Constraints
For E&G and non-E&G (excluding C&G and Construction) departments, “Budget Checking” in OMNI will prevent transactions from being processed without sufficient funds at the department-fund-account level.
Non-E&G departments must also have sufficient cash. These departments could spend into a cash deficit, as there is no “Cash Checking” in OMNI.
Note: Having sufficient budget (authority to spend) does not mean the department has sufficient cash.

20. Rate vs. Salary
Rate: the annualized gross salary for a specific position
Salary: Rate plus fringe benefits
E&G: Department manages the budget for only the rate.
Auxiliary: Department manages the budget for salary (rate plus fringe)
Sponsored Research: Department manages the budget for salary (rate plus fringe)

21. E&G Salary Budgets
No longer managed by the Budget Office outside of OMNI
Position Budgeting & Rate Management will soon be maintained in Hyperion
Budgets in OMNI will need to be adjusted as changes occur (e.g., pay increases, positions transferred between departments, etc.)
Handled by “School Managers,” (budget managers) who typically work in the Dean’s Office.

22. Wrap up & Questions

23. Contact Information
Quality Assurance
Malica Segura– University Business Administrators
Slides available at: