Account Definitions

Accounting Entities

• Service Department (Budget Purpose: 200000 - 201999)
• Overhead (Budget Purpose: 202000 - 203999)
• Clearing and Escrow (Budget Purpose: 204000 - 204999)
• Self Supporting (Budget Purpose: 206000 - 208999)
• Self Insurance - Student (Budget Purpose: 209000 - 209999)
• Auxiliary Enterprises - Funded Debt (Budget Purpose: 210000 - 211999)
• Other Auxiliary Enterprises (Budget Purpose: 212000 - 214999)
• Other Restricted (Budget Purpose: 215000 - 217999)
• Endowment Income (Budget Purpose: 218000 - 218999)
• Restricted (Grant and Contracts) (Budget Purpose: 220600 - 249999)
• Loan Funds (Budget Purpose: 254500 - 254799)
• Tuition and LAC Guideline Fees (Budget Purpose: 260000 - 269999 & 360000 - 369999)
• State Appropriated (Budget Purpose: 270000 - 279999 & 370000 - 379999)
• Unexpended Plant (Budget Purpose: 280000 - 281199)
• Bond Reserve (Budget Purpose: 281200 - 281399, 281600 - 281799)
• Plant Reserve (Budget Purpose: 281400 - 281599)
• Investment In Plant (Budget Purpose: 281800 - 281999)
• Agency (Budget Purpose: 290000 - 298999)

Service Departments

AIS Budget Purpose Range 200000 – 201999

Service Departments at a glance:

• P-cards Allowed? Yes
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Line item, if revenues or expenses will be greater than $5,000 for the Fiscal Year
• Revenue sources: Internal billings to other campus accounts
• Expenses: Within University guidelines for unrestricted funds

A Service Department is an entity that provides a service to other University departments. Charges to users are determined by the costs of the services rendered. Service Departments are self-supporting entities. They provide goods or services to the University community on a charge-back basis.

Overhead

AIS Budget Purpose Range 202000 – 203999

Overhead accounts at a glance:

• P-cards Allowed? Yes
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Line item, if revenues or expenses will be greater than $5,000 for the Fiscal Year
• Revenue sources: Transfer of Facilities and Administrative (F&A) expense, also known as indirect costs earned on grant and contract accounts
• Expenses: Within University guidelines for unrestricted funds

Overhead accounts receive their revenue on the last business day of each month as a result of a series of transfers. First, grant and contract accounts that generate overhead, also known as F&A, are charged based upon the individual accounts’ predetermined overhead rate applied to the grant and contract accounts’ monthly expenses. Then, the overhead is distributed to administrative and departmental accounts, based upon designated percentages.

Overhead accounts should not receive any other type of revenue other than the monthly transfer in of indirect costs.

Expenses from Overhead accounts should be geared towards the support of grant and contract activity and should be made within University guidelines for the use of unrestricted funds.

Clearing And Escrow

AIS Budget Purpose Range 204000 – 204999

Clearing and Escrow accounts at a glance:

• P-cards Allowed? No expenses are allowed from any source.
• Purchase Requisitions Required? No
• Budget? None
• Revenue sources: None
• Expenses: Not allowed

Clearing and escrow accounts serve the purpose of accumulating or expensing cash, then disbursing or recovering the balance in order to return the account to zero. All activity in these accounts is recorded in the accounting records as either an Account Receivable (AIS Natural Account 13xxx) or as an Account Payable (AIS Natural Account 211xx).

Self Supporting

AIS Budget Purpose Range 206000 – 208999

Self Supporting accounts at a glance:

• P-cards Allowed? Yes
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Line item, if revenues or expenses will be greater than $5,000 for the Fiscal Year
• Revenue sources: Funds generated by the department primarily through sales and services of educational activities, fees, and contributions
• Expenses: Within University guidelines for unrestricted funds

Self Supporting accounts receive resources that have no limitations or stipulations placed on them by external agencies or donors. These funds represent monies which are specifically allowed, under State statutes, to be retained by the University in a local bank account.

The funds are expendable for carrying out the general operations of the University, such as instruction, research, and public service. Expenses from Self Supporting accounts should be made within University guidelines for the use of unrestricted funds. Payments to vendors are made by University check.

Self Insurance - Student

AIS Budget Purpose Range 209000 – 209999

Self Insurance - Student accounts at a glance:

• P-cards Allowed? Yes
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Line Item
• Revenue sources: Student fees
• Expenses: Insurance claims and operating expenses of program

The student health and life insurance fund, or “Extended Care,” was established on August 15, 1995. Extended care is a secondary coverage plan that provides the students at the Carbondale campus with limited protection against the financial costs of health care not covered by other primary provider plans.

Auxiliary Enterprises - Funded Debt

AIS Budget Purpose Range 210000 – 211999

Funded Debt accounts at a glance:

• P-cards Allowed? Yes
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Line item
• Revenue sources: Sales and services, fees, room and board charges
• Expenses: All expenses related to the operation of the enterprise

These accounts, also known as auxiliary enterprises, exist to furnish goods or services to students, faculty, staff, other institutional departments, or incidentally to the public, and charge a fee directly related to the cost of the goods or services. The distinguishing characteristic of an auxiliary enterprise is that it is managed as an essentially self supporting activity.

The facilities within the Funded Debt group of accounts have been financed through the issuance of revenue bonds. The revenue generated from these facilities is pledged to the retirement of the bonds. All activities of the system are subject to covenants contained in the Bond Resolution which authorized issuance of the bonds.

Other Auxiliary Enterprises

AIS Budget Purpose Range 212000 – 214999

Other Auxiliary accounts at a glance:

• P-cards Allowed? Yes
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Line item
• Revenue sources: Sales and services, fees, room and board charges
• Expenses: All expenses related to the operation of the enterprise

This group of accounts differs from the “Funded Debt” auxiliary accounts in that the facilities utilized have not been funded through the issuance of revenue bonds.

Other Auxiliary enterprises exist to furnish goods or services to students, faculty, staff, other institutional departments, or incidentally to the public, and charge a fee directly related to the cost of the goods or services. The distinguishing characteristic of an auxiliary enterprise is that it is managed as an essentially self supporting activity.

Other Restricted

AIS Budget Purpose Range 215000 – 217999

Other Restricted accounts at a glance:

• P-cards Allowed? Yes
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Line item, if revenues or expenses will be greater than $5,000 for the Fiscal Year
• Revenue sources: Provided by external sources with limitations or stipulations placed on use
• Expenses: Within University guidelines for restricted funds, usually scholarship payments

This group of accounts carries some restrictions as to the use of the funds, but they are not considered “grants and contracts.”

Many of the Other Restricted accounts are funded by the SIU Foundation, with the funds being used for scholarship awards to students.

Endowment Income

AIS Budget Purpose Range 218000 – 218999

Endowment Income accounts at a glance:

• P-cards Allowed? Yes, for expenses defined below.
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Yes
• Revenue sources: Income earned, usually interest, on Endowment principal
• Expenses: For institutional purposes, sometimes limited by specific terms of the Endowment

A true endowment fund may be established only by a donor and can never be expended. The University’s endowment fund is held by the SIU Foundation. Income earned from this fund is remitted quarterly and deposited into the University’s Endowment Income accounts.

If the income from the Endowment is restricted, it may be expended only for the specified purpose. Otherwise, the income may be used for any institutional purpose.

Restricted (Grants And Contracts)

AIS Budget Purpose Range 220600 – 249999

Restricted (Grants and Contracts) accounts at a glance:

• P-cards Allowed? Yes
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Line item or pooled, based on the restrictions of the granting agency
• Revenue sources: Provided by external sources with limitations or stipulations placed on use
• Expenses: Within University and grantor guidelines

This group of accounts receives revenues from external sources that are generally restricted to specific purposes. The funds are used in support of research, public services, instruction, and other University activities.

Each restricted account is assigned to an accountant within the Grant and Contract Accounting section of OSPA to provide assistance with the financial management of the account.

Loan Funds

AIS Budget Purpose Range 254500 – 254799

Loan Fund accounts at a glance:

• P-cards Allowed? Not applicable. Used only for loans as described below.
• Purchase Requisitions Required? No
• Budget? Not required
• Revenue sources: Private donors, gifts, bequests, grants, fees
• Expenses: Loans are made on a revolving basis to students, who repay principal and interest.

Loan funds are used to account for resources that may be loaned to students. These funds are provided by a variety of sources. Most loan funds are generally operated on a revolving fund basis, with loan and interest repayments remaining in the loan fund group for future lending.

Tuition And LAC Guideline Fees

AIS Budget Purpose Range 260000 - 269999 & 360000 - 369999

Tuition and LAC Guidelines Fees accounts at a glance:

• P-cards Allowed? No expenses are allowed from any source.
• Purchase Requisitions Required? No
• Budget? None
• Revenue sources: Tuition and Legislative Audit Commission Fees
• Expenses: None – these accounts cannot have expenditures

This group of accounts is used for the deposit of tuition revenues and certain fees. All revenues derived from instructional activities are covered by the Legislative Audit Commission (LAC) guidelines. These guidelines were originally adopted in November 1982 and revised in September 1997. The regulations require that all revenues be deposited into the University Income Fund.

LAC fees are budgeted for expenditures as state accounts in the AIS Budget Purpose range of 270000 – 271999.

State Appropriated

AIS Budget Purpose Range 270000 - 279999 & 370000 - 379999

State Appropriated accounts at a glance:

• P-cards Allowed? Yes
• Purchase Requisitions Required? Yes
• Budget? Line item only
• Revenue sources: None – these accounts cannot receive revenue
• Expenses: Within State and University guidelines for unrestricted funds

State Appropriated accounts are the means by which the University expends its fiscal year appropriation from the State of Illinois. These accounts are used to expend both General Revenue and Income funds.

Each State Appropriated account is allocated a share of the budget for the fiscal year (July 1 through June 30). The funds must be used or encumbered before the end of the fiscal year on June 30. There is a two month "lapse" period, ending August 31, to enable all expenditures to clear the accounts.

State Appropriated accounts are always budgeted within line items, such as salary, wages, travel, equipment, commodities, contractual service, telecommunications, and operation of automotive equipment.

Payments to vendors for expenditures from the General Revenue fund are issued as warrants (checks) by the State of Illinois, requiring the University to adhere to the State’s accounting system.

Unexpended Plant

AIS Budget Purpose Range 280000 – 281199

Unexpended Plant accounts at a glance:

• P-cards Allowed? Yes
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Usually pool
• Revenue sources: Provided by various sources, including special state appropriations, sale of revenue bonds, and federal and state agencies
• Expenses: For the acquisition of long-lived assets, such as buildings and equipment

Examples of accounts within this group are construction accounts for projects such as the Student Health Service building, Research Park, and new facilities for University Housing.

These accounts are established for specific purposes, and the expenses incurred are generally capitalized. This means that they increase the fixed assets of the University, including land, buildings, and permanent improvements.

Bond Reserve

AIS Budget Purpose Range 281200 – 281399, 281600 - 281799

Bond Reserve accounts at a glance:

• P-cards Allowed? Not applicable. Used only for expenses described below.
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Usually pool
• Revenue sources: Periodic transfer of funds from operating accounts in the amount pledged in the bond covenant
• Expenses: To pay interest and principal on revenue bonds and for repair and replacement expenses associated with the facilities financed with these bonds

There are two types of bond reserve accounts:

1. Repair and Replacement (BP 281200-281399)

   The resources of the Repair and Replacement accounts provide for the renewal and replacement of plant fund assets. Examples of such expenditures include the replacement of carpet, painting, and roofing. Some portion of these expenditures may be capitalized as additions to plant.

2. Retirement of Indebtedness (BP 281600-281799)

   The purpose of the Retirement of Indebtedness accounts is to provide for the accumulation of resources for interest and principal payments. These funds are investments in instruments with maturities that coincide with the semi-annual interest payments and annual principal payments.

Plant Reserve

AIS Budget Purpose Range 281400 – 281599

Plant Reserve accounts at a glance:

• P-cards Allowed? Yes, for expenses defined below.
• Purchase Requisitions Required? Yes, per Procurement Services guidelines
• Budget? Usually pool
• Revenue sources: Transfer of funds from operating accounts
• Expenses: For the acquisition and replacement of equipment as well as departmental renovations and infrastructure improvements.

Plant Reserve accounts cannot be used for day-to-day operating expenditures.  Some areas utilize equipment in their operations that is too expensive to purchase from the annual operating budget. Equipment reserve accounts allow the accumulation of dollars over time to allow the purchase of big ticket equipment items. Also, dollars may be accumulated in these accounts to cover costs of renovations and infrastructure improvements within the department.

Investment In Plant

AIS Budget Purpose Range 281800 – 281999

Investment In Plant accounts at a glance:

• P-cards Allowed? No expenses allowed from any source.
• Purchase Requisitions Required? Not Applicable
• Budget? Not Applicable
• Revenue sources: Not Applicable
• Expenses: Not Applicable

This group of accounts includes all long-lived physical assets of the University, including land, buildings, improvements, infrastructure, equipment, and construction-in-progress. The assets in this group have been capitalized, and are depreciated over the estimated useful lives of the assets.

Agency

AIS Budget Purpose Range 290000 – 298999

Agency accounts at a glance:

• P-cards Allowed? Yes, if cash balance is sufficient to cover the expense.
• Purchase Requisitions Required? No
• Budget? None
• Revenue sources: Various
• Expenses: Within University guidelines

Agency accounts are funds held by SIU as custodian for certain organizations. The resources are deposited with the University for safekeeping, to be used or withdrawn by the depositor at will. These funds may be held on behalf of students, faculty, staff organizations, or some other third party.

These accounts are established at the agency’s request. All budget and financial transactions are reflected in the University’s accounting records, but the assets and liabilities of the accounts do not belong to the University.

Each agency account has an on-campus faculty or staff Fiscal Officer who is responsible for the account. The funds may be used at the discretion of the Fiscal Officer within University guidelines. The Fiscal Officer is responsible for maintaining the financial resources to meet all commitments. This means that the account should carry a cash balance that is sufficient to cover all expenditures.