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Administrative Procedure 8.617 Administrative Procedure 8.617



Title

Revenue and Higher Education Function Codes

Header

Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.617, Revenue and Higher Education Function Codes
Effective Date:  May 2016
Prior Dates Amended:  July 1987, December 2001
Responsible Office:  Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy:  EP 1.102, Authority to Manage and Control the Operations of the Campus
Review Date:  August 2018

I. Purpose

To describe the purpose and role of the function code account attribute in the University Kuali Financial System (KFS).  The proper assignment of function codes enables the appropriate reporting of University financial information.

II. Definitions

Function Codes - Three or four-digit codes classifying sources of revenue and types of expenditures for reporting purposes. These classifications are established in accordance with college and university accounting and reporting standards.

III. Administrative Procedure

Fiscal Administrators are responsible for the proper assignment of function codes on new account code requests. Function codes are maintained as an attribute (non-dollar value) associated with each account.

A.    Revenue Function Codes identify major funding sources of the account.

    1.    Tuition and Fees (11X) includes all tuition and fees assessed to students for their enrolled courses.

    111    TUI & FEES, REGULAR SESSION
    113    TUI & FEES, SUMMER SESSION
    114    TUI & FEES, COLLEGE CONT ED
    115    TUI & FEES, ACTIVITIES

    2.    Governmental Appropriations (12X, 13X, 14X) include amounts received from or made available to the institution through Act of a legislative body  (Federal, State and Local governments), except grants or contract. These categories include only governmental appropriations made from tax levy funds,
Federal land-grant appropriations, and Federal revenue-sharing funds. Federal appropriations received through State channels  are included in Federal appropriations.

    121    FED APPRN, RESEARCH
    122    FED APPRN, TRAINING
    123    FED APPRN, STUDENT AID
    124    FED APPRN, OTHER PURPOSE
    125    FED APPRN, CAPITAL ASSET
    131    STATE APPRN, RESEARCH
    134    STATE APPRN, OTHER PURP
    135    STATE APPRN, CAPITAL ASSET
    137    STATE APPRN, NON-IMPOSED FRINGE
    141    LOCAL APPRN, RESEARCH
    144    LOCAL APPRN, OTHER PURPOSE
    145    LOCAL APPRN, CAPITAL ASSET

    3.    Governmental Grants and Contracts (15X, 16X, 17X) include revenues from governmental agencies for specific research projects or other types of programs, e.g., Research projects training programs and similar activities for which amounts are received or expenditures are reimbursable under the terms of a government grant or contract.

    151    FED C&G, RESEARCH
    152    FED C&G, TRAINING
    153    FED C&G, STUDENT AID
    154    FED C&G, OTHER PURPOSE
    155    FED C&G, CAPITAL ASSET
    161    STATE C&G, RESEARCH
    162    STATE C&G, TRAINING
    163    STATE C&G, STUDENT AID
    164    STATE C&G, OTHER PURPOSE
    165    STATE C&G, CAPITAL ASSET
    171    LOCAL C&G, RESEARCH
    172    LOCAL C&G, TRAINING
    173    LOCAL C&G, STUDENT AID
    174    LOCAL C&G, OTHER PURPOSE
    175    LOCAL C&G, CAPITAL ASSET

    4.    Private Gifts, Grants, and Contracts (18X) include amounts received from individuals or non-governmental organizations, including private gifts and contracts.  Private gifts and grants include those monies received from private donors for which no legal consideration is involved (i.e., no specific goods or services must be provided to the donor in return for the monies).  Private contracts include those monies received for which specific goods and services must be provided to the donor.  This category includes only those revenues directly related to instruction, research, and public service. Monies received as a result of gifts, grants, or contracts from a foreign government are included here.

    181    PRIV GIFT C&G, RESEARCH
    182    PRIV GIFT C&G, TRAINING
    183    PRIV GIFT C&G, STUDENT AID
    184    PRIV GIFT C&G, OTHER PURPOSE
    185    PRIV GIFT C&G, CAPITAL ASSET

    5.    Endowment Income (261) includes income from endowment and similar funds, and income from funds held in trust by others under irrevocable trusts.

    261    UH ENDOWMENT INCOME

    6.    Sales and Services of Educational Activities (271) are revenue derived from the sale of goods or services incidental to the conduct of instruction, research, or public service (e.g., film rental, scientific and literary publications testing services, University presses, and dairy products).

    271    SALE/SVC OF EDUCATIONAL ACTIVITIES

    7.    Sales and Services of Auxiliary Enterprises (30X) (31X) include all revenues generated by auxiliary enterprise operations.    This category does not include revenues received in the form of grants, gifts, or endowment income restricted for auxiliary enterprises, but is limited to monies derived directly from the operation of auxiliary enterprises.

    301    SALE/SVC AUX ENT, BOOKSTORE
    302    SALE/SVC AUX ENT, STUDENT HOUSING
    303    SALE/SVC AUX ENT, FACULTY HOUSING
    304    SALE/SVC AUX ENT, FOOD SERVICES
    305    SALE/SVC AUX ENT, PARKING
    306    SALE/SVC AUX ENT, INTERCOLL ATHLETICS
    307    SALE/SVC AUX ENT, UNIV GEN ACTIVITIES
    308    SALE/SVC AUX ENT, ADMINISTRATION
    309    SALE/SVC AUX ENT, CAMPUS CENTER
    310    SALE/SVC AUX ENT, TRANSPORTATION SRVCS
    311    SALE/SVC AUX ENT, TELEPHONE & COMM
    312    SALE/SVC AUX ENT, CHILD CARE

    8.    Other Sources (351) include all items of revenue not covered elsewhere. This category also includes revenues resulting from the sales and services of internal service departments to persons or agencies external to the institution. General funds are received from the State in the form of legislative appropriations for University operations.

    351    OTHER SOURCES

    9.    Independent Operations (41X-46X) include all revenues associated with operations independent of or unrelated to the primary missions of the institution (instruction, research, public service) although they may contribute indirectly to the enhancement of these programs.  This category generally includes only those revenues associated with major federally-funded research laboratories.

    411    INDEPENDENT OP, ST APPRN-OTH PURPOSES
    412    INDEPENDENT OP, ST APPRN-NON-IMP FRINGE
    421    INDEPENDENT OP, FED C&G-RESEARCH
    424    INDEPENDENT OP, FED C&G-OTH PURPOSES
    431    INDEPENDENT OP, STATE C&G-RESEARCH
    434    INDEPENDENT OP, STATE C&G-OTH PURPOSES
    441    INDEPENDENT OP, LOCAL C&G-RESEARCH
    444    INDEPENDENT OP, LOCAL C&G-OTH PURPOSES
    451    INDEPENDENT OP, PRIV GIFT C&G-RESEARCH
    454    INDEPENDENT OP, PRIV GIFT C&G-OTH PURP
    461    INDEPENDENT OP, OTHER SOURCES

B.    Higher Education Function Codes (HEFC) indicate the specific purpose of the activity recorded in the account so that expenditures can be appropriately categorized.  (Additional information on HEFC can be found on the FMO website.  Please use the link provided in the references section).

    1.    Instruction (A) includes expenditures for all activities that are part of the instructional credit program. Excluded are expenditures for academic administration where the primary assignment is administration (as in the case of academic deans).  However, expenditures for department chairpersons are included in this category, since instruction is still an important role of such administrators.  Subcategories for Instruction are:

    A100    INSTRUCTION, GENERAL ACADEMIC FOR CREDIT
    A101    INSTRUCTION, GENERAL ACAD FOR NON-CREDIT
    A102    INSTRUCTION, REMEDIAL/DEVELOPMENTAL
    A103    INSTRUCTION, PROFESSIONAL EDUCATION
    A104    INSTRUCTION, SUMMER SESSION
    A105    INSTRUCTION, VOCATIONAL EDUCATION
    A106    SPONSORED INSTRUCTION AND TRAINING

    2.    Research (B) includes all expenditures for activities specifically organized to produce research outcomes commissioned by an agency either external to the institution or separately budgeted by an organizational unit within the institution. Expenditures for departmental research not separately budgeted should be included in Instruction.

    B100    ORGANIZED & SPONSORED RESEARCH
    B101    DEPARTMENTAL RESEARCH                 

    3.    Public Service (C) includes all funds budgeted specifically for public service and expended for activities established primarily to provide services to groups external to the institution (e.g., seminars, projects and services provided to particular sectors of the community by various organizational entities).    Subcategories for Public Service are:

    C100    PUBLIC SERVICE

    4.    Academic Support (D) includes all funds expended to provide support services for the institution's three primary programs--instruction, research, and public service.    It includes the retention, preservation, and display of educational materials and the provision of services that directly assist the academic functions of the institution.  Subcategories for Academic Support are :

    D100    ACADEMIC SUPPORT
    D101    ACAD SUPP, MUSEUMS GALLERIES
    D102    ACAD SUPP, ACADEMIC PERSONNEL DEVELOPMT
    D103    ACAD SUPP, LIBRARIES

    5.    Student Services (E) includes all funds expended for admissions, registrar activities, and activities whose primary purpose is to contribute to students' emotional and physical well-being and to their intellectual, cultural and social development outside the context of the formal instruction program.  Subcategories for Student Services are:

    E100    STUD SVC, ADMISSIONS & RECORDS
    E101    STUD SVC, COUNSELING & CAREER GUIDANCE
    E102    STUD SVC, FINANCIAL AID ADMINISTRATION
    E103    STUD SVC, SOCIAL & CULTURAL DEVELOPMENT
    E104    STUD SVC, STUDENT HEALTH SERVICES
    E105     STUD SVC, STUDENT SERVICES ADMIN

    6.    Institutional Support (F) includes all funds expended for activities whose primary purpose is to provide operational support for the day-to-day functioning of the institution, excluding expenditures for physical plant operations. Subcategories for Institutional Support are :

    F100    INSTITUTIONAL SUPPORT & GENERAL & ADMIN
    F101    INST SUPP, INFORMATION TECHNOLOGY
    F102     INST SUPP, PUBLIC RELATIONS/DEVELOPMENT
    F103     SPONSORED RESEARCH ADMINISTRATION

    7.    Financial Aid (H) includes monies given in the form of outright grants and trainee stipends to individuals enrolled in formal course work, either for credit or not.    The recipients should not be required to render services to the institution as consideration for the grant, nor should they be expected to repay the amount of the grant to the funding source.  Expenditures for trainee stipends awarded to individuals not enrolled in formal course work should be included in either: Instruction, Research, or Public Service.  Subcategories for Financial Aid are:

    H100    STUDENT FINANCIAL AID

    8.    Auxiliary Enterprises (J) includes entities which exist to furnish a service to students, faculty or staff and charge a fee directly related to, although not necessarily equal to, the cost of the service.    The distinguishing characteristic of an auxiliary enterprise is that it is managed as an essentially self-supporting operation.    Therefore, although revenues do not always exceed or equal expenditures, auxiliary enterprise fees are usually set with this goal in mind.    The following are included in Auxiliary Enterprises:

    J100    AUXILIARY ENTERPRISES
    J101     AUX ENT, INTERCOLLEGIATE ATHLETICS
    J102     AUX ENT, AUXILIARY SERVICES ADMIN
    J103     AUX ENT, BOOKSTORE
    J104     AUX ENT, CAMPUS CENTER
    J105     AUX ENT, CHILD CARE PROGRAM
    J106     AUX ENT, FACULTY HOUSING
    J107     AUX ENT, FOOD SERVICES
    J108     AUX ENT, STUDENT HOUSING
    J109     AUX ENT, PARKING OPERATIONS
    J110     AUX ENT, TELEPHONE & COMMUNICATION
    J111     AUX ENT, TRANSPORTATION SERVICES
    J112     AUX ENT, RECHARGE CENTERS

9.        Operation and Maintenance of Plant (K) includes all expenditures of current funds for the operation and maintenance of physical plant; all expenditures for operations established to provide services and maintenance related to campus grounds and facilities; and utilities, fire protection, and similar items. (Excludes expenditures made from the plant fund accounts.)    Subcategories for Operation and Maintenance of Plant are :

    K100    O&M PLANT, BUILDING MAINTENANCE
    K101     O&M PLANT, CUSTODIAL SERVICES
    K102     O&M PLANT, PHYSICAL PLANT ADMINISTRATION
    K103     O&M PLANT, MAJOR REPAIRS & RENOVATIONS
    K104     O&M PLANT, LANDSCAPE & GROUNDS MAINT
    K105     O&M PLANT, AUXILIARY ENTERPRISES

C.        Other Expenditure Functional Codes (U and Z):

    U100     CAPITAL PROJECTS - NEW CONSTRUCTIONS
    Z999     NOT APPLICABLE.  - E.G. ACCOUTING ACCRUALS

IV. Delegation of Authority

There is no specific administrative delegation of authority.

V. Contact Information

    
General Accounting and Loan Collection, 956-8278, or uhgalc@hawaii.edu
Website:  http://www.fmo.hawaii.edu/general_accounting/index.html

VI. References

    A. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
    B. Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php
    C. Link to Higher Education Function Codes and Definitions
http://www.fmo.hawaii.edu/account_codes/index.html

VII. Exhibits and Appendices

None

Approved

    Signed    
    Kalbert Young    
    May 23, 2016    
    Date    
    Vice President for Budget and Finance/Chief Financial Officer

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