UH System Policies and Procedures
- Board of Regents Policies
- Executive Policies
- + 1. General Provisions
- + 2. Administration
- + 3. Organization
- + 4. Planning
- + 5. Academic Affairs
- + 6. Tuition, Financial Assistance, and Fees
- + 7. Student Affairs
- + 8. Business and Finance
- + 9. Personnel
- + 10. Land and Physical Facilities
- + 11. Miscellaneous
- + 12. Research
- Abolished Procedures (Post Oct. 2014)
- Archived AP
UH‐Related Laws and Rules
- Hawaiʻi Revised Statutes (HRS) 304A
- Hawaiʻi Administrative Rules (HAR) Title 20
Administrative Procedure 8.619 Administrative Procedure 8.619
Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.619, Fund Groups
Effective Date: May 2016
Prior Dates Amended: July 1982, August 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: May 2019
To provide an understanding of the funds and fund groups used in the University financial system.
A. Fund Accounting - An accounting system that emphasizes accountability and stewardship rather than profitability. It supports the classification of resources by purpose for accounting and reporting. Classifications may be in accordance with activities or objectives such as those specified by donors, with regulations or restrictions imposed by governmental legislation, or with directions issued by a governing board.
B. Funds - Groups of accounts with specified sources of capital and revenue.
C. Fund Group - A group of accounts with common operational characteristics.
III. Administrative Procedure
A. Sources of funds used by the University
As a component unit of the State of Hawai`i, the University has to be granted legal authority to receive funds for operational and non-operations activities.
1. General funds are received from the State in the form of legislative appropriations for University operations.
2. Federal funds are received for support of contracts and grants in support of research and training programs.
3. Special funds are funds that are dedicated or set aside by law for a specified object of purpose. Special funds are used to account for revenues earmarked for particular purposes and from which expenditures are made for those purposes. Examples of special funds include: Tuition and Fees, Information Technology Services, and Outreach College.
4. Revolving funds are generated by charges made for goods or services provided by a state agency. These funds are also used to pay for the cost of the goods or services rendered.
5. Trust funds are used to account for designated persons or classes of persons who have a vested beneficial interest or equitable ownership or which are created or established by a gift, grant, contribution, or bequest that limits the use of the funds to designated objectives or purposes.
Trust accounts are defined by the Department of Accounting and General Services as a separate holding or clearing account for state agencies. Trust accounts also serve as accounting devices to credit or charge agencies or projects for payroll or other costs.
6. Agency funds are used to account for monies held by a governmental unit in an agent capacity of individuals, private organizations and other governmental units or programs.
7. Bond funds account for the proceeds of general obligation bonds issued by the State and revenue bonds issued by the University that are designated for specific uses.
B. Funds groups used by the University
1. The Current funds group consists of General, Federal, Special, Trust and Agency funded accounts that are used for the general operations of the University.
a. The Current Unrestricted fund group (FG11) accounts principally focus on the instructional and general operations of the University.
b. The Current Restricted fund group (FG12) accounts principally focus on research or other extramural activities of the University.
2. The Loan fund group (FG20) is comprised of funds obtained by the University from Federal, State, and private sources. These funds are used for loans to students. Funds for short-term loans (repayable in one semester) are generally received from private organizations and individuals. Long-term loan funds are obtained from Federal and State sources.
3. The Endowment fund group (FG30) is made up of funds that were received from individuals and organizations. These funds are invested with resulting income being used as designated by the donors. Most endowment funds are used for student scholarships.
4. The Plant funds group consists of funds to be used for physical property and equipment related activities.
a. The Unexpended Plant fund group (FG51) principally holds funds appropriated by the State for the purpose of acquisition, construction, or improvement of physical properties to be used for institutional purposes.
b. The Renewal and Replacement plant fund group (FG52) principally holds funds for the renewal and replacement of existing plant fund assets.
c. The Retirement of Indebtedness fund group (FG53) is comprised of accounts where bond debt service transactions are recorded.
d. The Investment in Plant fund group (FG54) is comprised of the accounts where all the capital assets of the University as well as their related debt are recorded.
5. The Agency fund group (FG60) is comprised of funds held by the University in the capacity of custodian or fiscal agent for others.
IV. Delegation of Authority
There is no specific administrative delegation of authority.
V. Contact Information
General Accounting and Loan Collection, 956-8278, or firstname.lastname@example.org
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
VII. Exhibits and Appendices
Vice President for Budget and Finance/Chief Financial Officer
May 23, 2016
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