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Accounting & Financial Reporting

Accounting & Financial Reporting Frequently Asked Questions

Browse FAQs by Category:
Funds:
State Funds - EAA Funds - ICR Funds - Self-Supporting Funds - Gift Funds
Other:
Finance Payroll Benefit - Journal Voucher (JV) - Guide to Terminating FOAPAL Segments - Non-Monetary Exchange - Property Accounting


State Funds FAQs

 


EAA Funds FAQs

 


ICR Funds FAQs

 


Self-Supporting Funds FAQs

 


Gift & Endowment Income Funds FAQs

Gift Funds - Basic Information

Gift Fund Deposits

Gift Fund Expenditures

Gift Fund Transfers

 

 

 


Finance Payroll Benefit FAQs

 


Journal Voucher (JV) FAQs

Posting JV Entries During The Month Of July:

 


Guide to Terminating FOAPAL Segments FAQs

 


Non-Monetary Exchange FAQs

 


Property Accounting FAQs

Disposal/Scrap/Surplus/Transfer

 

Donations/Loans/Gifts/Personal Use

 

Lost/Stolen/Insured

 

Inventory

 

Updating Records in FABweb

 

Tags (Origination, Permanent)

 

Notifications

 

Reports

 

Codes

 

Other

 


State Fund Answers

Q. What are State funds?

A. State funds come from a variety of sources, such as:

  • Tuition and certain types of fees charged to students;
  • Appropriations from the State of Illinois; and
  • Other miscellaneous types of income which are recorded in the University's Income Fund (such as fines charged to students for lost or overdue library books.)

Q. How are State funds identified in Banner?

A. State funds can be identified in Banner by examining the Fund segment of the CFOAP.  State funds fall within the fund code range of 1000YY-1800YY, where the YY represents the State fund's applicable appropriation year.  For example, the 100020 State fund would relate to the FY20 appropriation year.

Note that 1000YY is the primary State fund used by most units who receive state funding throughout the University, so that is the fund code most people are referring to when they are referring to State funds.  However, there are other special state appropriations that we receive from the State of Illinois as well, and those special state appropriations fall into other more unique fund codes within the 1000YY - 1800YY range.

Q. Who allocates State funds to my unit?

A. State funds are allocated to units by each University's Budget Office.  For further details, contact your University's Budget Office.

Q. Where can I find the available budget balance in my State funds CFOP?

A. To determine the available budget balance to spend in your State funds CFOP, use Banner page Organization Budget Status - FGIBDST. Enter the applicable State funds CFOP, uncheck the "Include Revenue Accounts" box, and then select "Go'.  Your available budget balance will show in the "Available Balance" column on the "Net Total" line in the lower right hand corner of your screen.  See Finding Your CFOP Balance for further details.

In addition, you can also find your available budget balance using tools such as My-UI-Financials, EDDIE, or Mobius View.  For further details on these options, see the My-UI-Financials page or the GL104 training guide.

 

Q. How are surpluses and/or deficits on State funds CFOPs handled at the end of the fiscal year?

A. Each University Budget Office addresses these State fund deficits/surpluses in different ways.  Contact your University's Budget Office for further details.

Q. What rule code (or Journal Type) should I use on journal vouchers involving State funds?

A. On any journal voucher sequences using a State fund, you would need to use either rule code 170 or rule code 175 (if you are completing a journal voucher with multiple debits and multiple credits).

Q. Why does it matter which account code I use when posting expenditures to State funds?

A. As with any funding source, assigning the proper account code to transactions on your State fund is extremely important for accurate reporting.  Additionally, State funds have additional reporting requirements to the State Comptroller's Office which makes accurate accounts code assignment even more critical.  So please pay close attention to proper account code assignment when posting expenditures to your State funds CFOPs.

For further guidance on account codes and for a link to the Account Code Search application, see the Banner Account Codes webpage.

 

Q. What limitations apply to State funds?

A. State funds are fairly flexible, but there are limitations to keep in mind.  See below for a few examples:

  • State funds typically should not be used for expenditures relating to previous or future fiscal years;
  • State funds cannot be used for unit-generated funding transfers;
  • State funds cannot be used for expenditures or subsidies of any type of auxiliary enterprise activities;
  • State funds should not be used to purchase alcohol; and
  • State funds should not be used to account for any type of sales activity (e.g., sales revenue should never be recorded in a State fund).

Q. When am I allowed to deposit monies received into a State funds CFOAP?

A. Typically, you should not make any types of deposits for monies received into a State funds CFOAP.  The only exceptions would be situations where you received money for:

  • Refunds or rebates from a vendor for goods or services purchased previously on the State funds CFOAP; or
  • Reimbursements of accidental personal usage of system resources (such as a photocopier or fax machine) by employees when the resources were originally charged to a State funds CFOAP.

Q. How do I transfer funding from my State funds CFOP to another CFOP?

A. If you would like to transfer a portion of the expense budget in your State funds CFOP to another CFOP (such as another State fund or ICR CFOP), then you will need to submit a request to your applicable Budget Office via a Budget Adjustment Request form.  The Budget Office will then review your request and will process it on your behalf if approved.

Please note that it is not allowable for units to process any type of funding transfer involving a State funds CFOP via a journal voucher.  Any type of funding transfers involving a State funds CFOP must be submitted to your University's Budget Office to ensure proper financial reporting.

Q. Why can't a split-funded purchase order (PO) or invoice voucher (IV) be processed on a State funds CFOAP?

A. Unfortunately, it is not allowable to use a State fund with a split-funded PO or IV.  Note that a split-funded PO or IV would be a PO or IV which includes both State funds and non-State funds CFOAP strings.  If this occurred, it would create check processing issues as State funds and local funds use different bank codes and thus are processed on separate check processing cycles.  This would cause the vendor to receive two checks instead of one. 

Given these system limitations, it is best to pay the entire PO or IV off of one funding source, and then you may reclassify the resulting expense after the fact, you can process that expense reclassification via a journal voucher.

Q. When can I use my State funds CFOP to pay for expenses which may cross fiscal years (such as subscriptions or membership dues)?

A. The current fiscal year's State fund would be allowed to pay for expenses which may cross fiscal years (such as subscriptions or membership dues) only in situations where the start date of the service received (such as the subscription or the membership term) occurs on or prior to June 30.

For example, if you are paying for the renewal of a professor's professional membership dues, and the membership term runs from 5/1/20 - 4/30/21 (i.e., the start dates falls within FY20), then it would be allowable to use the 100020 State fund to pay for this expenditure since the start date of the membership term occurred prior to 6/30/20.

However, given that a large portion of these expenses may fall in the subsequent fiscal year (such as in the example above), you may want to consider transferring the applicable portion of the expense off of your current year's State fund and over to another funding source (such as the new fiscal year's State fund) via a journal voucher during the lapse period.  This would not be required, but may be something to consider for more detailed accounting.

 

Q. What is the lapse period and what type of expenses are allowed during this time period?

A. The lapse period typically occurs during the first two months of a new fiscal year (i.e, July and August). During this time frame, certain types of transactions are allowed on the prior fiscal year's State fund.  These transactions are limited to goods or services that were contracted for or received prior to July 1.

During the lapse period, there are two State fund codes open for transaction processing: the prior year State fund (1000PY) and the current year State fund (1000CY).  So it is important that the State fund selected is accurate and relates to the same time period as the applicable expenditure.

Q. When is the last time I can post corrections to a prior fiscal year's State fund?

A. The last day to process corrections on the prior year's State fund is August 31 of the current fiscal year.  The prior fiscal year fund code will be terminated on September 1 of the current fiscal year.  Once the prior fiscal year's fund is closed on September 1 of the new fiscal year, no transactions will be allowed to post to the prior year's State fund.

Q. How do we reclassify expenses which posted to the incorrect State fund?

A. If an expense gets charged to an incorrect State fund (e.g., an expense for the current fiscal year is charged to the previous fiscal year's State fund by mistake, or vice versa), the unit must complete a journal voucher to reclassify the expense to the applicable State fund.  This is only allowed during the lapse period (i.e., period 01 in July and period 02 in August).

Please note that adjustments are not allowed after the close of the lapse period.  For example, if you notice in mid-September that expenses posted to the prior year's State fund by mistake, there is nothing that can be done at this point since the lapse period has officially closed as of 8/31.  This is why it is so important to reconcile and keep an eye on all of your State fund transactions throughout the month of August.

Q. How do payroll appointments, P-Card defaults, or Index Codes get updated with the new fiscal year's State fund code at the beginning of the new fiscal year?

A. Payroll appointments, P-Card defaults, and Index Codes are updated automatically on July 1 of the new fiscal year to reflect the new fiscal year's State fund code.

Q. Can State funds be used for vacation and sick leave payouts?

A. Yes, State funds can be used for vacation and sick leave payouts, even if the accumulated vacation and sick leave is from prior fiscal years. 

Q. I have a question that is not on this listing. Who do I contact?

A. If you have any other questions relating to State funds which is not covered above, refer to UAFR's Who to Ask listing.


EAA Funds Answers

Q. What are Education and Administrative Allowance (EAA) funds?

A. The Educational and Administrative Allowance funds are funded by various assessments of university departments by university or system administration. The source of the revenue and budget in these funds mainly consist of administrative overhead charges assessed to various auxiliary units, as well as other miscellaneous sources.

The university also receives Educational and Administrative Allowance funds from certain grants, loan funds and fellowship/trainee programs.

 

Q. How are Education and Administrative Allowance funds identified in Banner?

A. Educational and Administrative Allowance funds have a 2A ("Educational and Admin Allowances") fund type in Banner. These funds can be identified in Banner by examining the Fund portion of the CFOAPAL. The fund code for these Administrative Allowance funds falls under the 20020x fund code range. The current list of 2A funds includes the following funds:

  • 1-200200, "103 Cost of Education Allowances

  • 1-200201, 103 Genl Administrative Allowances

  • 1-200202, "103 Genl Administrative Allow Aux"

  • 2-200200, "103 Educational and Admin Allowance"

  • 2-200201, "103 Educational and Admin Allow Aux"

  • 2-200202, "103 Educational and Adm Allow Hosp"

  • 4-200201, "103 Genl Administrative Allowances"

  • 4-200203, "103 Admin Allow School as Lender"

  • 7-200200, "103 Cost of Education Allowances"

  • 9-200200, "834 Educational and Admin Allowance"

  • 9-200201, "834 Educational and Admin Allow Aux"

 

Q. What types of transactions are allowed on Educational and Administrative Allowance funds?

A. Since these funds are sourced from administrative overhead assessments, they should only be used for administrative-type expenses to support the applicable university to which the fund is tied. The spending on these funds is under the responsibility of the applicable university budget office or System Administration budgeting (UAFR Admin Accounting). UAFR - UAS' role is basically to gather information for the Budget Offices to develop their recovery rates, and to post the assessments to the campus units. The Budget Office is then responsible for determining how these funds will be used.

Q. How are the budgets for Educational and Administrative Allowance funds assigned?

A. The Budget Office at each university is responsible for assigning EAA budgets to the applicable units who receive this funding. For further details, contact your university Budget Office.

Q. How can I tell how much money I have left in my Educational and Administrative Allowance funds to spend?

A. The Expense Budget Balance Available (BBA) indicates the amount of funding available to spend and can be found in My-UI-Financials, EDDIE, Mobius View, and Banner. Available on the OBFS website is a Guide to Finding Your CFOP Balance. This guide explains the different applications that can be used to identify this balance.

Q. If our Educational and Administrative Allowance fund has funds available at the end of the fiscal year that we did not spend, does this available budget balance roll forward to the next fiscal year?

A. The unspent balance in your EAA funds at the end of a fiscal year rolls over to the next fiscal year as beginning expense budget, so these funds are available to spend in the following fiscal year. The expense budget balance available rolls over automatically as part of the fiscal year end closing process after the previous fiscal year is closed. The expense budget balance available posts as budget into account code 109910 - Budget Balance Forward. If the balance in this account code is positive, the fund has a positive carry-forward balance, and money is available to spend. However, if it is negative, then a deficit is carried forward.

 

Q. Our unit's organization code has changed, and we'd like to transfer our Educational and Administrative Allowance budget to our new organization code. How can we get this accomplished?

A. The Budget Office at each university is involved in this type of transfer. Only the Budget Office has access to transfer these funds to the new organization code.

Q. Can I transfer funds out of my Educational and Administrative Allowance fund and into another fund type? Can I transfer my Educational and Administrative Allowance funds to another unit?

A. No, units are not allowed to perform any types of funds transfers from their Educational and Administrative Allowance funds to other units or other fund types within their own unit. Each university Budget Office is responsible for these types of transfers. If you need assistance or have questions on performing funds transfers with your Educational and Administrative Allowance funds, contact your University Budget Office.

Q. If I want to complete an expense transfer to/from an Educational and Administrative Allowance fund, what rule code should I use on the EAA fund side of the JV?

A. Rule code 100 ("JV - Local Funds") should be used with the EAA fund for expense transfers from/to an Educational and Administrative Allowance fund

Q. If we use a specific program code with our Educational and Administrative Allowance funds, is it allowable to also use that same program code with our state or ICR funds (or vice versa)?

A. Yes, it is allowable to use the same program code with both your Educational and Administrative Allowance funds and your state or ICR funds as long as the NACUBO function is identical and is allowable for the fund types involved.

Q. I have a question that is not on this listing. Who do I contact?

A. All other questions regarding Educational and Administrative Allowance funds can be directed to University Accounting and Financial Reporting, 217-333-4568.

You can view the University Accounting and Financial Reporting "Who to Ask List".

 


ICR Funds Answers

Q. What are "ICR" funds?

A. Indirect Cost Recovery funds (or "ICR funds," as they are commonly referred to) are funds which the University of Illinois System collects from the indirect cost recovery (F&A) rates charged to grant funds. These fees are charged to cover the system's overhead costs. The amounts billed to grant funds are based on a percentage of eligible direct expenses. These indirect costs are charged as an expense to the grant fund using an expense account code in the 1981xx account code range, and revenue is recognized in the ICR fund using an account code in the 3088xx range. A portion of the revenue is allocated back to departments from the applicable campus Budget Office as expense budget.

Q. How are indirect cost recovery (ICR) funds identified in Banner?

A. Indirect Cost Recovery funds can be identified in Banner by examining the Fund portion of the CFOAPAL string. The fund code for ICR funds is 200250. This fund has a 2C ("Institutional Costs Recovered") fund type. All units use this same 200250 fund code along with their unit specific organization and program codes to identify and track their specific departmental activity.

Q. How does my department track expenses related to ICR funds?

A. Since all system departments with ICR funding uses the same fund code, specific departmental activity is tracked by using your department's organization and program codes in combination with this ICR fund (200250).

Q. What types of transactions are allowed on ICR funds?

A. The primary purpose of ICR funds is to provide unrestricted support for a unit's core research and administrative operations. ICR funding may also be used for expenditures such as student scholarships/fellowships/awards; student services; operations of maintenance and plant; and public service. However, since ICR funding is generated from indirect cost recoveries from grant funds, it should not be used for instructional activities.

 

Q. How are the budgets for ICR funds assigned?

A. Each university Budget Office is responsible for assigning ICR budgets to the applicable units based on anticipated ICR earnings. For further clarification, contact your university's Budget Office.

Q. How can I tell how much money I have left in my ICR funds to spend?

A. The Expense Budget Balance Available (BBA) indicates the amount of funding available to spend and can be found in My-UI-Financials, EDDIE, Mobius View, and Banner. Available on the OBFS website is the Guide to Finding Your CFOP Balance. This guide explains the different applications that can be used to identify this balance.

Q. If our ICR fund has funds available at the end of the fiscal year that we did not spend, does this available budget balance roll forward to the next fiscal year?

A. The unspent balance in your ICR funds at the end of a fiscal year rolls over to the next fiscal year as beginning expense budget, so these funds are available to spend in the following fiscal year. The expense budget balance available rolls over automatically as part of the fiscal year end closing process after the previous fiscal year is closed. The expense budget balance available posts as budget into account code 109910 - Budget Balance Forward.

 

Q. Our unit's organization code has changed, and we'd like to transfer our ICR budget to our new organization code. How can we accomplish this?

A. The Budget Office at each university is involved in this type of transfer. Only the Budget Office has access to transfer these funds to the new organization code with a budget transfer. To request a transfer, complete a Budget Adjustment Request (BAR) form and submit it to your university's applicable Budget Office. See Budget Adjustment Requests for further details on how to request these types of transfers.

Q. Can I transfer funds out of my ICR fund into another fund type? Can I transfer my ICR funds to another unit?

A. No, units are not allowed to perform any types of funds transfers from their ICR funds to other units or other fund types within their own unit. Each university Budget Office is responsible for these types of transfers. The Budget Office is able to complete budget transfers/exchanges between: (1) two sets of ICR CFOAP strings; (2) ICR and State CFOAP strings; or (3) ICR and Educational Admin Allowance CFOAP strings. To request a transfer, complete a Budget Adjustment Request (BAR) form and submit it to your campus' applicable Budget Office. See Budget Adjustment Requests for further details on how to request these types of transfers. If you need assistance or have questions on performing funds transfers with your ICR funds, contact your university Budget Office. Also note that budget exchanges between ICR and self-supporting funds or ICR and gift funds are not allowable.

Q. Can ICR funds be used to establish a quasi-endowment?

A. No, per Section 11.11 of OBFS Policies & Procedures, ICR funds cannot be used to establish quasi-endowments. Since ICR funds are for cost recovery purposes, investing them in a quasi-endowment is not appropriate.

 

Q. If I want to complete an expense transfer to/from an ICR fund, what rule code would I use on the ICR fund side of the JV?

A. Rule code 100 ("JV - Local Funds") should be used with the ICR fund for expense transfers from/to an ICR fund. Be sure to refer to the document number of the expense you are transferring in the General Text Entry-FOATEXT of the JV. Also, remember that it is not allowable to process lump sum transfers through expense account codes on the ICR fund. These types of transfers need to be processed by the Budget Office. An expense transfer should only be completed if you are transferring an actual expense which has an actual document number.

Q. If we use a specific program code with our ICR funds, is it allowable to use that same program code with our state funds (or vice versa)?

A. Using the same program code with both ICR and state funds is appropriate as long as the NACUBO function is allowable for both fund types. However, this could cause a problem in some situations - for example, if the NACUBO function of the program code in question is 1000 "Instruction" on the Banner page Program Code Maintenance-FZMPROG, it is allowable to use with the State fund, but not allowable to use with the ICR fund, as instructional activities are not allowed on ICR funds. To ensure that these types of unallowable situations do not occur, contact UAFR at 217-3333-4658 to inquire as to whether your particular program code in question can be used with both State and ICR funds.

Q. I have a question that is not on this listing. Who do I contact?

A. All other questions regarding ICR funds can be directed to University Accounting and Financial Reporting 217-333-4568.

 


Self-Supporting Funds Answers

Q. What are self-supporting funds?

A. Self-supporting funds are used to record revenue and expenses generated from the sale of products or services to system departments, students/faculty/staff, or the general public. 

Four fund types distinguish the types of self-supporting activities:

3E - Storerooms and Services - Products or services provided primarily to system departments.

3J - Auxiliary Enterprises not under Indenture - Products or services provided primarily to students, faculty and staff.

3M - Auxiliary Enterprises under Indenture - Products or services provided primarily to students, faculty and staff; however, bond financing is involved in providing facilities for these activities.

3Q - Departmental Activities - Products or services provided primarily to the general public.

The State Legislative Audit Commission University Guidelines require the establishment of accounting entities which classify all self-supporting funds into similar and related groups.

These groups of funds with similar activities are known as "Entities."  The Banner level 3 fund code is used to identify the entity of a self-supporting fund.  A listing of entities is located in the Introduction to Self-Supporting Funds (GL 105) Participant Guide in Topic 1.4: Accounting Entities for Self-Supporting Fund-Defined by Banner Fund Code Hierarchy.

 

Q. How are self-supporting funds identified in Banner?

A. The fund codes for self-supporting funds fall into the numeric range of 300000 - 399999.  They also have a unique fund type code as described in What are self-supporting funds?.

Q. What types of transactions are allowed on self-supporting funds?  Are there any restrictions on self-supporting funds? 

A. The State Finance Act restricts the use of these funds to the support, maintenance, and development of the self-supporting activity generating the revenue in the fund.  In other words, expenditures are restricted to those necessary to fund the activities that generate the revenue.  Self-supporting funds cannot be created to receive revenue that has its offsetting expenditures paid from appropriated or other system funds.  Also, self-supporting funds cannot be generated or used by units for discretionary purposes.

Q. Our office will be involved in an activity that could be classified as a self-supporting activity (e.g., selling tickets to a luncheon for students and their parents), but the dollar level will be fairly immaterial.  Is there a dollar/materiality level that we should consider prior to establishing a self-supporting fund?  If the activity is not material enough to warrant establishing a new self-supporting fund, how should we record this activity?

A. Generally, a self-supporting fund will not be established unless at least $3,000 of revenue or expenses is generated each year.  If an individual activity will not generate that amount, a number of smaller activities that are similar in nature can be combined into one fund.

 

Q. How do I determine if I need a self-supporting fund rather than an agency fund?

A. A self-supporting fund is appropriate when the system has a financial interest or risk associated with the activity.  If the system acts simply as an agent or caretaker of the funds, an agency fund is appropriate for the activity.

Q. I need to set up a new self-supporting fund.  What steps do I need to take?

A. In order to establish a new self-supporting fund, complete a Banner Fund, Program, Index Code Request Form. The form is available from the OBFS Accounting & Financial Reporting Forms page.

Email the completed form to uas@uillinois.edu.  University Accounting and Financial Reporting will inform you when the fund is established.

Q. Will my self-supporting fund have default organization and program codes assigned to it?  Can I use multiple organization and/or program codes with one self-supporting fund?

A. Default organization and/or program codes will be assigned if you check the "Yes" box in item 2f and enter the organization and program codes to be used as defaults on the Banner Fund, Program, Index Code Request Form. If you are requesting a new program code in addition to a new fund code, University Accounting and Financial Reporting will add the new program code as a default if you checked the "Yes" box as directed above.

Multiple organization and/or program codes may be used with one self-supporting fund if the NACUBO functions of the programs are consistent with the fund type and entity codes assigned to the fund.

 

Q. How do I make deposits into my self-supporting fund, and how is revenue recorded in a self-supporting fund?

A. Deposits are made through the applicable campus' University Bursar (Cashiering) office on a Report of Money Received or Report of Cash Sales form and are recorded to the revenue account code entered on the form.

Q. Where do I find the balance of my self-supporting fund?

A. A difference between self-supporting funds and other system funds is the location of the activity's balance.  The balance for system funds that are budget-based is found in the Operating Ledger. For self-supporting funds, the Operating Ledger reflects only the current year revenue and expense activity. To determine the financial status of a self-supporting fund, the unit should monitor the balances, most importantly the Fund Balance, in the General Ledger.

As revenue and expenses are recorded in the Operating Ledger of a self-supporting fund, General Ledger balances, such as Claim on Cash and Fund Balance, are simultaneously updated in the fund. The Fund Balance reflects the accumulation of all inception-to-date revenue, expense, and transfer activity in the fund. Banner page Trial Balance Summary-FGITBSR and the Asset/Liability Detail Statement in My-UI-Financials, EDDIE, and Mobius View are available to see the fund balance of your self-supporting funds.

 

Q. What happens if I generate a profit/deficit with my self-supporting fund?  If self-supporting funds are supposed to be "break-even" funds in theory, what are the ramifications of operating at a profit/deficit?

A. The State Legislative Audit Commission University Guidelines detail the amount of cash that self-supporting funds can retain at year-end.  For the majority of the entities, the computation of "Excess Funds" is done by entity and university (see What are self-supporting funds?).  The Excess Funds computation is complicated; therefore, the following formula displays the calculation at a high level that you may use to determine your risk of having excess funds.  The amounts used are as of the fiscal year-end.

Cash
Less - highest month expenses (by entity). If month not known, use average monthly expenses.
Less - deferred revenue and deposits
Less - accounts payable
Less - accrued payroll
Less - obligations paid in the grace period (July and August)
_________________________________
Excess Funds (if amount is positive)

The Guidelines also state that entities may not have cash deficits for an entire fiscal year as this indicates that the self-supporting activity is being subsidized.  Individual deficit cash balances may be reviewed by the Office of the Executive Assistant/Assistant Vice President for Business and Finance and a deficit reduction plan may be required and/or the fund may be charged interest expense based on the deficit amount.

 

Q. What is "unrelated business income" (UBI) and how does it relate to the activity that takes place in my self-supporting fund?

A. Unrelated business income is derived from an activity that meets all of the following criteria:

      1. The activity is a "trade or business," i.e. there is an expectation of a profit from the operation,
      2. The activity is regularly carried on, and
      3. The activity is not substantially related to any of the system's exempt purposes.

Federal tax law provides the following exceptions, modifications and special rules that must be considered when determining if an activity is an unrelated trade or business. 

  • The law provides an exception for a trade or business if it is (1) conducted primarily for the convenience of students, employees, patients, etc.; (2) conducted with a volunteer labor force; or (3) selling merchandise substantially all of which was received as gifts or contributions. 
  • Income from dividends, interest, royalties and the rental of real property generally is excluded from the unrelated business income computation, but a few exceptions to this rule exist. 
  • Income (ticket sales, etc.) from an athletic program including the sale of exclusive broadcasting rights is not included as unrelated business income; however, commercial advertising sold by the system in publications and athletic broadcasts may be considered unrelated. 
  • Certain "qualified sponsorship payments" are not included in unrelated business income.  A qualified sponsorship payment is any payment to a tax-exempt organization by a person in a trade or business where there is no arrangement or expectation of any substantial return benefit by the payer.
  • Presentation of performing arts by students is a related activity, and the appearance of professional artists may also be related.  The IRS determines whether the income derived from professional entertainment events is considered unrelated business income by looking at how the event is conducted, not the content of the event.
  • Retail sales from the operation of a general book and supply store on the system's universities for the convenience of the students, faculty and staff generally are exempt from unrelated business tax.  However, not all sales are necessarily considered related.  Items that are directly related to the system's educational purposes are exempt when sold to students, faculty and staff as are some low-cost non-educational items that are in recurrent demand, such as toiletries, system insignia items, newspapers and magazines, etc.  When book stores are open for sales to the general public, sales of similar items to the general public do not fall within the convenience exception and should be reported as unrelated business income.
  • Food service activities open to the general public are not related to the system's exempt purposes and are generally considered unrelated business activities. However, food service at an exempt activity where the food is available only to attendees is exempt. Catering services to non-system customers constitute unrelated business income.
  • Income from scientific research carried on in the public interest is exempt from unrelated business income.  The term "research" does not include ordinary testing or inspection of materials commonly carried on as an incident to commercial or industrial operations where "a standard procedure is used, no intellectual questions are posed, the work is routine and repetitive and the procedure is merely a matter of quality control."  Income from such testing generally would constitute unrelated business income.

While the system must report unrelated business income, expenses that are directly related to the production of that income are allowed as deductions in computing unrelated business taxable income.

However, when facilities or personnel are used both to carry on exempt activities and to conduct an unrelated trade or business, expenses, depreciation and similar items attributable to the facilities or personnel must be allocated between the two uses on a reasonable basis.

For more information and a questionnaire that will assist in determining whether an activity should be reported as unrelated business income, please refer to Section 18.13 of the OBFS Business and Financial Policies and Procedures Manual.

 

Q. How does the BBA (budget balance available) in my self-supporting fund roll into the next fiscal year?  If I have a balance or deficit remaining on a self-supporting fund, will it keep rolling forward from year to year?

A. The BBA on a self-supporting fund does not roll forward into the next fiscal year. The BBA compares how actual revenues and expenses are doing in relation to budgeted revenues and expenses. At the beginning of the fiscal year, you should provide to your university Budget Office new fiscal year budgets that reflect your anticipated revenue and expenses. Only open encumbrances are rolled forward in the operating ledger to the new fiscal year. General ledger balances, such as cash and fund balance, are rolled forward to the new fiscal year. (See Where do I find the balance of my self-supporting fund?)

Q. How do I adjust the budget in my self-supporting fund? 

A. Self-supporting fund budgets may be adjusted by processing a journal voucher in Banner using rule code 260 for a temporary budget revision or rule code 261 for a permanent budget revision.

Q. Can I transfer funds between my self-supporting fund and other fund types (e.g., State funds, gift funds, ICR funds, agency funds, etc.)?

A. No, units are not allowed to perform any type of funds transfers from their self-supporting funds to any other fund types within their own unit or a different unit.  Transferring specific expenses (e.g., a p-card expense or an invoice voucher) may be allowable given the particular circumstances; however, completing lump sum transfers or budget transfers between self-supporting funds and other fund types is not allowable.

Q. Are there any special year-end requirements related to self-supporting funds?

A. Yes, departments are required to submit a Fact Sheet for each active (non-terminated) self-supporting fund at fiscal year-end. See Fact Sheets.  

 

Q. What size of a self-supporting contract needs the involvement of Grants & Contracts?

A. Technical testing agreements and other contracts greater than $5,000 should be reviewed by Grants & Contracts before a self-supporting fund is established and any work is begun.

Q. What happened to all of the money I had in my self-supporting fund at the end of June?

A. Cash, other assets, liabilities and fund balance roll forward at fiscal year-end and can be viewed using a balance sheet type report. The operating statement shows only the revenues and expenses for the current fiscal year. (See Where do I find the balance of my self-supporting fund?)

Q. Our office made a mistake and deposited gift money into a self-supporting fund.  How do we get this fixed?

A. If gift money is incorrectly deposited into a self-supporting fund, contact University Accounting and Financial Reporting (UAFR) at 217-333-4568 for assistance to make the adjusting entries.  Units do not have authorization to make these correcting entries.  Once you contact the UAFR staff, you will be asked to provide the following information and documentation: (1) the full CFOAP string where the gift money currently resides; (2) the exact dollar amount that needs to be transferred to the Banner gift fund; (3) the Banner gift fund where the gift money needs to be transferred to; and (4) copies of any gift documentation from the donor (e.g., a letter, copy of the check) and a completed gift transmittal form summarizing the donor information and the related donation (see http://online.uif.uillinois.edu/Transmittal/ for the website containing the gift transmittal forms).  Once the UAFR staff receives this information and documentation from your unit, they will work with the University of Illinois Foundation to make the appropriate adjusting entries.

 

Q. Our office received a payment from an outside organization in connection with a sponsorship agreement. Should this payment be deposited in a self-supporting fund?

A. If the sponsorship payment is determined to constitute advertising, it is considered a non-qualified sponsorship and should be deposited in a self-supporting fund and may create unrelated business income (UBI). (See What is "unrelated business income" (UBI)...?). A qualified sponsorship payment for which the sponsor will receive no substantial benefit other than the use or acknowledgement of the business name, logo or product lines is considered a donation and should be recorded as a gift.

Q. Can our office charge expenses incurred in fundraising/development activity to a self-supporting fund?

A. No, expenses related to fundraising/development activity cannot be posted to self-supporting funds unless specific exemptions exist.  All expenses for fundraising activity generally need to be posted to an applicable fundraising/development CFOAP string on either a gift, state, or institutional cost recovery (ICR) fund.  See Section 11.6 of the OBFS Policies and Procedures Manual for further guidance on these restrictions.

Q. We need to terminate one of our self-supporting funds that we no longer use.  How do we get this done?

A. A self-supporting fund cannot be terminated until all balances, encumbrances, etc. have been cleared from the fund.  Once the fund has been cleared of all activity and balances, send an email request to uas@uillinois.edu asking to terminate the fund.  The UAFR office will investigate the fund to ensure that all balances have been cleared, and will then terminate the fund.

 

Q. My department sells t-shirts, caps and other items to students, faculty, staff and alumni.  Is there anything special we need to be aware of with this activity?

A. When a department sells tangible personal property such as t-shirts, caps or other items to students, faculty, staff, alumni or the general public for use or consumption, the sales are subject to state and local sales tax.  The sales tax must be collected, reported and remitted to the state unless a specific exemption applies to the sale.  Units should contact University Accounting and Financial Reporting to determine the correct procedure for reporting and recording the sales and sales tax amounts for each campus.  University Accounting and Financial Reporting files the required sales tax returns for each university under separate registration numbers. See Section 18.6 of the OBFS Financial Policies and Procedures Manual for further guidance on this issue.

If units maintain an inventory of items for sale, the inventory must be controlled and the value must be reported at year-end on the Fact Sheet for the fund involved.

Further, if the sales are not related to the exempt purposes of the system, the sales may create unrelated business income.  See and Section 18.13 of the OBFS Financial Policies and Procedures Manual for further guidance on this issue.

Q. My department keeps a supply of items on hand for sale to other University departments, students, faculty, staff and the public.  How should we handle this issue?

A. University units must maintain appropriate inventory control of each item of merchandise for resale.  Use of a perpetual inventory system is the preferred method of inventory control and valuation. University units must complete a physical count and valuation of merchandise for resale at least once each year and report the results of that physical count to University Accounting and Financial Reporting, generally on the Fact Sheet submitted at year-end. See Section 5, Receivables of the OBFS Financial Policies and Procedures Manual for further guidance on this issue.

Q. I have a question that is not on this listing.  Who do I contact?

A. All other questions regarding self-supporting funds can be directed to University Accounting and Financial Reporting at 217-333-4568.  A Who to Ask list is located on the UAFR website.

 


Gift & Endowment Fund Answers

Gift Funds - Basic Information

Q. I need to set up a new gift or endowment fund. What steps do I need to take?

A. A University of Illinois Foundation (UIF) fund (which is separate from a Banner gift fund, as the UIF maintains its own set of records in a separate system outside of Banner) is required when your unit will be receiving gifts from donors.  This is required as the UIF processes all incoming donations for the system via these UIF gift funds.  The UIF can establish endowment funds for gifts that are to be held for investment, current use funds for gifts that are available for immediate use and non-gift funds which are used to process fundraising proceeds.

TheRequest to Create a Foundation Gift Fund is the form to complete when a new UIF gift fund needs to be established.  Once these UIF funds are established, the UIF has the capability to sweep the related endowment income & gift/non-gift revenue from these UIF funds to the related Banner gift funds. Once this revenue has been swept to the related Banner gift funds, it is then available to the units for spending out of Banner.

Once the UIF gift fund is established, there may also be a need to request a new Banner gift fund to tie to this UIF fund, as this is where UIF will sweep the related revenue to for spending. To request a new Banner gift fund, complete the Banner Fund, Program, Index Code Request Form and email the completed form to the UIF at newaccounts@uif.uillinois.edu. The UIF will review these requests for donor intent coding purposes and will then forward the requests on to UAFR for completion. Once the Banner gift fund is established, the UIF will link this new Banner gift fund to the related UIF gift fund.

Units also may wish to occasionally create a new gift fund in Banner which will be funded from another Banner gift fund (as opposed to being funded from a UIF fund). For example, a unit may want to transfer funds out of one of their unrestricted gift funds and into a new gift fund which they want to use for a different isolated purpose (for example, a professor's research).  In these cases, the unit does not need to completed the form for creating the UIF fund (since this new Banner fund will be funded via fund transfers from another Banner gift fund, not from UIF) - they would simply need to complete the Banner Fund, Program, Index Code Request Form in that type of situation. However, the request for the new fund still must be sent to newaccounts@uif.uillinois.edu since the Foundation is responsible for adding the applicable donor intent codes to these funds.

One other note worth mentioning - occasionally, gifts are given directly to the system (i.e., the gifts are made out or left to the "University of Illinois" as opposed to the "University of Illinois Foundation").  These types of gifts are held as University endowments and the related investment income sweeps into a 4J endowment income fund.  To establish a 4J University endowment income fund, simply complete the Banner Fund, Program, Index Code Request Form and email the completed form to newaccounts@uif.uillinois.edu. The UIF will then review these requests and add the applicable donor intent codes, and then forward the requests to UAFR for completion.
If you have any specific questions on how to complete these forms or how this process works, call either UAFR at 217-333-4568 or the Foundation at 217-333-0810.
 

Q. What will the new fund number on these gift and endowment income funds look like?

A. Gift funds have a 4M ("Trust - Private Gifts") fund type (you can find the fund type of a fund on Banner page Fund Code Maintenance-FZMFUND). These 4M funds have a fund number that falls into the 620000 - 699999 range.

Note that other fund types also fall within this numerical range (for example, 4S - Medical Service Plan funds), so this numerical range is not limited strictly to gift funds.

The endowment income funds, which were defined in the previous FAQ, have a 4J fund type. The fund numbers for these 4J endowment income funds fall within the 610000 - 619999 range.

If you have additional questions, contact UAFR at 217-333-4568.
 

Q. How do we know which program codes to assign to these new Banner gift and endowment income funds? Also, how do we know whether the current program codes assigned to our existing Banner gift and endowment income funds are correct?

A. Gift & endowment income funds are assigned generic program codes in the "19nnnn" range, where the last four digits of the generic program code represent the assigned NACUBO function. For a full listing and description of the various NACUBO functions, see "Banner Program Codes and NACUBO Function Assignment". For a full listing and description of the various NACUBO functions, see Banner Program Codes and NACUBO Function Assignment.

Gift funds and endowment income funds should have default program codes assigned to them which are in line with the donor intent restrictions assigned to those funds and how the funds will be used. For example, a gift fund restricted for scholarships should use the 191787 program code, since that is the generic program code which contains the 1787 "Scholarships" NACUBO function.

Thus, when requesting a new gift or endowment income fund, or when reviewing your existing gift or endowment income funds, it is important to keep these guidelines in mind to ensure the proper type of program code is assigned to your gift or endowment income fund.
 

Q. Where do we go to see the donor intent restrictions on our gift or endowment income funds?

A. The best way to get a full understanding and detailed description of the specific donor intent restrictions assigned to a gift or endowment income fund is to obtain access to the Foundation's online database located here. By using this UIF Online system, you can search on either the Banner gift fund or the UIF gift fund using a variety of search parameters, such as fund title, fund number, etc. Once you locate the fund in question, you can see detailed documents that give specific information on the fund's restrictions, including language from the actual fund agreement with the donor. This is where you'll find the most detailed information regarding your fund's donor intent restrictions. We highly recommend you obtain access to this system so you can have the capability to properly research the restrictions on all of your Banner gift and endowment income funds. Contact the Foundation at 217-333-0810 or visit their website if you have further questions on how to use or how to obtain access this online database.

Another tool which you can use to get a sense of what a Banner gift or endowment income fund is restricted for is the FOAPAL Attribute Association-FTMFATA page in Banner. This form maintains general donor intent coding for your gift or endowment income fund. While it is nowhere near as detailed & helpful as the restrictions maintained on the UIF Online database, it does give a sense and direction of what a fund is restricted for. To use this form, simply enter the chart and fund number of your gift or endowment income fund and then select the Go button.  The first two attributes (i.e. the Donor Intent Restriction Indicator and Donor Intent Objective) show you the donor intent code restrictions assigned to your gift fund in Banner. Once again, these are simply general guidelines, but will give you a sense of what your fund is restricted for.

Q. If we need to make any edits to our gift or endowment income funds (such as changing the fund title, default organization code, or default program code), how do we get this done?

A. To change the fund title, default organization code, or default program code that is assigned to your gift or endowment income fund, please submit an email request to UAFR at uas@uillinois.edu detailing the changes you'd like to make to your chart-fund code combination. UAFR will then review the request and submit it to UIF for their review, if applicable. UIF will then review the request to determine if the changes are allowable and in compliance with the fund's donor intent restrictions.

If the Foundation approves the changes, they will then update their related UIF funds and will then forward the changes to UAFR for completion in Banner. The UAFR staff will then work on making the changes to the related Banner funds.

You will be notified via email when the change is complete. Also, note that if you are changing the default organization or program code on your gift or endowment income fund, you will need to coordinate with UAFR to ensure all current operating ledger balances on the gift or endowment income fund are moved over to the new organization and/or program code.
 

Q. How can I tell how much money I have available to spend in my gift or endowment income fund?

A. In order to determine the budget balance available (BBA) to spend in your gift or endowment income fund, use Banner page Organization Budget Status-FGIBDST. Once you have your chart & fund entered into the top section of this page, un-check the "Include Revenue Accounts" box and then select the Go button, and the resulting balance in the lower right-hand corner of the "Available Balance" column is your available balance to spend in that fund.

Also, see the Guide to Finding Your CFOP Balance table which further outlines this process. Call UAFR at 217-333-4568 for further guidance on this topic.
 

Q. If our gift or endowment income fund has unspent funds left at the end of the fiscal year, then do these unspent funds roll over into the next fiscal year?

A. Yes - any unspent balance in a gift or endowment income fund at the end of a fiscal year automatically rolls over to the next fiscal year in budget account code 109910 once period 14 has officially closed. So, any unspent money at the end of one fiscal year is available to spend in the subsequent fiscal year.

The same theory applies as well if you end the year in a deficit. The deficit you ended the year in rolls over into the 109910 budget account code once period 14 is closed, so you would start the new fiscal year in a deficit in those cases. If that happens, you will need to investigate ways to clear up that deficit as soon as possible. Contact UAFR at 217-333-4568 for guidance in these situations if needed.
 

Q. We have an accumulated cash balance in our Banner gift fund that we would like to re-invest into a new or existing endowment or quasi-endowment at the Foundation. How do we complete this process?

A. If your unit does not have immediate use for funds which have accumulated in your Banner gift fund (i.e., if you don't anticipate spending the funds within the next five years), then you may want to consider returning a portion or all of this funding to the Foundation for reinvestment into either the related UIF endowment or into a new UIF quasi-endowment.

Typically, the Foundation recommends only doing this with funds that you can afford to invest into the market for a minimum of at least five years. This helps protect your funds against short-term market fluctuations. For more information on how this process works, contact the Foundation at 217-333-0810.

If you've decided that you'd like to pursue this option, then you will need to complete the Return of Gift Funds to UI Foundation and submit it to the Foundation as instructed on the form. The Foundation will then review your request and if they approve, they will then forward it to UAFR. Then, UAFR will process the return of funds to the Foundation during the monthly returns process.

For further details on this process, refer to Section 11.8 of OBFS Policies and Procedures or call either UAFR at 217-333-4568 or the Foundation at 217-333- 0810.
 

Q. How can we terminate our Banner gift or endowment income funds (and any related UIF funds) which we no longer need?

A. To request termination of any gift or endowment income funds that are no longer needed, send an email request to UAFR at uas@uillinois.edu asking to terminate the Banner fund and any related UIF fund which may be tied to it.

Once UAFR receives that request, it will be reviewed to determine whether the request needs to be forwarded to UIF for their review. UAFR will then forward the request to UIF (if applicable) so that UIF can review and approve the termination and so that UIF can close any related UIF funds as well.

UAFR will also review the Banner fund to ensure all balances have been cleared and to ensure there are no dependencies still tied to the fund (such as payroll appointments, open purchase orders, p-card assignments, etc.). If there are any balances, dependencies, etc. still tied to the fund which need addressed, UAFR will contact you to assist you in that closeout process. Then, once that is all complete, UAFR will finalize the termination process in Banner
 

Gift Fund Deposits

Q. Our unit received a gift/donation from a donor - what is the proper procedure for processing and depositing this gift?

A. Gifts/donations must be deposited through the Foundation on a Report of Gift Received Transmittal Form. This includes any type of gift, whether the gift is received via cash, check, credit card, securities, or gifts-in-kind (which would include donated services).

Once the Foundation receives the completed gift transmittal form, they will process the gift in their system to ensure the proper gift acknowledgement letters/tax receipts are sent to the donor and that the donor's giving history is updated in the Foundation's records.

Then, once the processing is complete, UIF will either sweep the gift receipts into the unit's appropriate Banner fund the following week, or they will add the gift to the applicable UIF endowment.

For further details on how to complete gift transmittal forms and how the process works, call either UAFR at 217-333-4568 or the Foundation at 217-333-0810.
 

Q. How do we deposit proceeds from fundraising events, such as fundraising dinners?

A. Proceeds from fundraising events (such as fundraising dinners) must be deposited through the Foundation on a Report of Gift Received Transmittal Form. When completing the transmittal form, be sure to properly break out the gift & non-gift portions of the payment accordingly in the "Gift Portion" and "Non-Gift Portion" boxes on the transmittal form.

For example, if you receive a $100 check from an attendee at a fundraising dinner, where $25 covers the cost of the meal and $75 covers the related charitable contribution, then you would enter $25 in the "Non-Gift Portion" box and $75 in the "Gift Portion" box. Then, the Foundation would sweep the $25 non-gift to the 303242 non-gift revenue account code on your related gift fund, while the $75 gift portion would sweep to the 303241 gift revenue account code on your related gift fund.

For further details on how to complete gift transmittal forms and how the process works, call either UAFR at 217-333-4568 or the Foundation at 217-333-0810.
 

Q. When the Foundation sweeps gift revenue into our gift fund, what Banner entries are made? Which account code do these gift revenue sweeps post to?

A. When the Foundation sweeps gift revenue from current use donations into the applicable Banner gift fund, the year-to-date revenue entry is made to account code 303241. The related revenue & expense budget entries are made to account codes 303241 and 109900, respectively. This gift revenue increases the amount of cash available to spend in the gift fund.

The Foundation also sweeps over investment income earned on UIF endowments on a monthly basis. These year-to-date & budget entries for the endowment income are recorded in Banner account code 303240. The revenue & expense budgets are recorded around the beginning of the academic year (typically around August), and then 1/12th of this endowment income is swept over each month as year-to-date revenue. By the end of the year, the entire budgeted amount (12 months of sweeps) is swept to account code 303240, so the budgeted revenue and year-to-date revenue in account code 303240 should then agree to each other. Once these monthly sweeps post, it will increase the amount of cash available to spend in the related Banner fund.

Finally, if any fundraising proceeds (for example, from a fundraising dinner) are deposited through the Foundation, the UIF sweeps this non-gift revenue to the applicable Banner gift fund using Banner account code 303242. The related revenue & expense budgets are posted to account codes 303242 and 109900, respectively.
 

Q. Is it ever appropriate to directly deposit money into a gift fund through the University Bursar Cashiering Office?

A. As mentioned in an earlier FAQ, all gifts/donations received should be deposited directly through the Foundation. Donations should never be deposited through the University Bursar Cashiering Office.

Typically, the only times it would be allowable to deposit money directly into a gift or endowment income fund through the University Bursar Cashiering Office is when you are depositing something such as a rebate check or a reimbursement of a personal expense which was accidentally charged to the gift or endowment income fund.

For example, a unit may occasionally receive a rebate for an expense that was posted to their gift fund, such as a rebate for some office supplies which they purchased from their unrestricted gift fund. In those types of cases, this rebate check can be deposited directly into the Banner gift fund via Cashiering, applying the deposit to the exact same expense account code where the related supplies expense posted to (which would probably be 121100 "Office Supplies" in this example).

Another common example would be times where an employee may be traveling for business and may accidentally charge a personal expense on their expense report which was charged to the gift or endowment income fund. Since that is a personal expense, and not a business expense, they would obviously need to pay back. In those cases, the reimbursement from the employee would be deposited back into the gift or endowment income fund CFOAP where the personal expense was accidentally charged to, being sure to credit the same expense account code where the personal expenses was accidentally posted to.
 

Q. Our department accidentally deposited a gift/donation through the University Bursar Cashiering Office. What do we do to correct this?

A. If your gift was accidentally deposited through the University Bursar Cashiering Office (for example, if it was deposited to a self-supporting fund or to an expense account code on a gift fund), then your unit must complete a Gift Transmittal Form for the gift and forward this completed form (along with any other related gift documentation you have on hand, such as a donor letter, copy of the check, etc.) to UAFR at uas@uillinois.edu. Include the exact CFOAP string where the gift was accidentally deposited to and the Banner gift fund where the gift needs to be recorded.

UAFR will then making the adjusting entries and will also notify the Foundation so they can update their records as well.

For further guidance, contact UAFR at 217-333-4568 or uas@uillinois.edu.
 

Q. Our department accidentally deposited a gift/donation into a grant fund (or grant funds into a gift fund). What do we do to correct this?

A. The unit must contact their applicable university's Grants & Contracts Office (GCO) for guidance on how to handle the necessary corrections (see Grants).

The GCO will then work with UAFR to post a set of entries to either: (1) move the money out of the grant fund and into the applicable gift fund, or (2) move the money out of the gift fund and into the appropriate grant holding fund.

If the money is being moved from a grant fund to a gift fund, then the unit also must complete a Gift Transmittal Form for this gift and send that completed form (along with any other related documentation such as a copy of donor letter, copy of check, etc.) to UAFR. UAFR then makes the adjusting entries to get the money into the applicable gift fund and then sends this information to the Foundation so they can record their related entries.
 

Gift Fund Expenditures

Q. How do I properly monitor the expense activity on my gift & endowment income funds?

A. To help ensure compliance with donor intent restrictions on your gift & endowment income funds, it is very important to regularly monitor the expense activity on your gift & endowment income funds (for example, during your monthly reconciliation process). If you find any expense activity which is not in line with the donor intent restrictions on your fund, it is important to transfer those unallowable expenses off of your gift & endowment income funds.

If any questions arise as to whether or not the expenditure would be in compliance with the assigned donor intent restrictions, log onto the UIF Online database (see our earlier FAQ for guidance on how to obtain access to UIF Online) to look up the donor intent restrictions of the fund in question.

Also, note that even if there are no clear violations from a donor intent perspective to certain expenditures, it is still important to ensure that the expenditures are in compliance with all applicable University policies & procedures.
 

Q. Are there any special considerations on how to track my fundraising expenses, such as telemarketing expenses, direct mail campaign expenses, and salaries of development officers?

Yes, the requirements related to fundraising expenses are covered in Section 11.6 of OBFS Policies and Procedures. In summary, any gift or endowment income funds that are used to track fundraising expenses must have:

(1) The word "Fundraising" in the fund title;

(2) The "UFR" A-21 attribute code assigned to it (you can see if this A-21 code is properly assigned in the FOAPAL Attribute Association-FTMFATA Banner page).

If another funding source (such as a state or ICR CFOP) is used to track these fundraising expenses, then the related program code which is being used to track these fundraising expenses on that state or ICR CFOP must have:

(1) The word "Fundraising" in the program code title;

(2) The "UFR" A-21 attribute code assigned to it (you can see if this A-21 code is properly assigned in the FOAPAL Attribute Association-FTMFATA Banner page).

These requirements are in place to allow the Foundation to track and analyze how much is spent on fundraising activities for each unit.

Gift Fund Transfers

Q. How do I transfer funds from one gift or endowment income fund to another gift or endowment income fund?

A. For guidance on how to complete fund transfers from a 4M gift fund to another 4M gift fund (or from a 4J endowment income fund to another 4J endowment income fund), refer to our applicable job aid in the following link: Processing Fund Transfers Between Gift Funds.
Contact UAFR at 217-333-4568 for further guidance if needed.

Q. How can I provide funding to cover my fundraising expenses when I have no revenue sweeping into my fundraising gift fund?

A. Since fundraising gift funds do not receive revenue sweeps from the Foundation, it is necessary to complete fund transfers from an unrestricted gift fund to cover your unit's various fundraising expenses which post to your fundraising gift fund. If this situation applies to you, then follow the guidelines in the previous FAQ to debit an unrestricted gift fund within your unit and to credit the fundraising gift fund where you post your fundraising expenses to.

Note that this option is not allowable to use if you post your fundraising expenses to a state or ICR CFOP. In those cases, you will need to work with your applicable Budget Office to transfer expense budget into those state or ICR CFOPs.
 


Finance Payroll Benefit Answers

Q. What is fund 300011?

A. Fund code 300011 is the payroll suspense fund. Each of the FOP code segments has a coordinating suspense segment.

Q. Why do transactions post to a payroll suspense fund 300011?

A. If a payroll transaction, such as a prior year adjustment, attempts to post to a terminated fund, organization or program code, Banner uses suspense FOP segments: fund 300011, org 109001, and prog 109001 to complete the transaction.

Additionally if a labor redistribution transaction is processed and any portion of the pay is associated with a terminated FOP segment, the suspense fund/organization/program code would be placed in lieu of the terminated FOP segment. This is most common when processing labor redistributions on prior year state fund related pay events. Posting to a suspense FOP can occur even though no portion of that fund line on the pay event has been changed. Banner first voids all payroll charges on the entire pay event then posts a separate redistribution, even if the FOP has not changed. If a portion of the transaction is on a terminated FOP segment Banner substitutes it with the suspense FOP segment so the payroll (or labor redistribution) transaction can be completed. (See additional information on how/when to correct).

Q. How can I correct a transaction posted to payroll suspense?

A. An original pay event or adjustment posting to a suspense FOP segment should be corrected by processing a labor redistribution (PZAREDS) to correct the FOP segment. If the payroll suspense transaction is related to a labor redistribution on a terminated FOP segment, the labor redistribution will need to be reversed (PZAREDS) and posted to the suspense FOP. Checking for balances on the suspense FOP can help determine if a correction is needed. Please call University Accounting and Financial Reporting (UAFR) if you are unsure if corrective action is needed.

Q. Why didn't my labor redistribution post?

A. The transaction should be saved and submitted to a disposition of 60 to be processed in Banner. To confirm the disposition use Banner page PZILIST or PZAREDS.

Labor redistributions do not get processed the day of a main payroll calculation.

If the labor redistribution has been completed and the credit has not applied as expected see payroll suspense FOP.

Q. Why is the labor encumbrance not calculating as expected?

A. If grant funded see Multi-Year Encumbrance training materials and job aids:

If not grant funded or the above reverence does not help address the variance, call University Accounting and Financial Reporting or email uas@uillinois.edu for assistance.

 

Q. How do I adjust benefit account code balances (e.g. Worker's compensation 219240 or Termination Benefits 219260)?

A. Email uas@uillinois.edu with your request, please be sure to include the CFOAP for review and adjustment.

 

Q. How do I know what fringe benefit rate will be assessed to my FOP?

A. Fringe benefits are applied to assessed Funds and are posted to the CFOP associated with the gross wages.
Different fund types are assessed differently, Benefit Assessment by Fund Type Job Aid will assist you.
Rates are applied by campus. See the Fringe Benefit rates PDF on the Accounting Reference Materials page.
Grant Fund rate information can be found by campus on the Rate Schedule page.

 

Q. How do I find the employee detail for the payroll transaction on my CFOAPAL?

A.

Q. What is the 999/998 pay event?

A. The MN-999, BW-998 and BW-999 are accrual pay period entries, which is MN 7 and can be BW 13, 14, or 15 depending on the pay period service calendar dates and the pay date. The accrual pay period entries are used when wages are fully or partially earned in one fiscal year and paid in the next. The accrual entries offset the actual cash amount associated with the correct fiscal year. To redistribute any portion of the 998/999 the associated BW or MN 7 pay event should be used when processing a labor redistribution in Banner page PZAREDS. Special processing consideration is needed for these split pay events, please see the Fiscal Year-End Redistribution job aid.

Q. How do I correct a rogue payroll transaction?

A.Most payroll transactions can be corrected through Banner page PZAREDS. The Payroll & Earnings - Labor Distribution page and job aids can assist.

If the rogue balance is related to benefit account codes and there are no associated payroll account code charges, email uas@uillinois.edu for review and correction.

If you do not have access to correct the employee labor distribution or cannot identify who the charges are associated with, email uas@uillinois.edu

 


Journal Voucher (JV) Answers

We highly recommend Banner users take GL 101: JOURNAL VOUCHER PROCESSING course for a complete understanding of the Journal Voucher process. Click here for the course material.

Q. I just created a JV. What should I expect after I click the "Complete" button?

A. Your JV might be routed to an approval queue such as Grants & Contracts' queue if your JV contains a Grant Fund (Banner Fund code starts with a 4 or a 5). See Approval Process for Journal Vouchers Involving Grant Funds for details.

If the JV is approved, it will post in Banner. If not, it will roll back as Incomplete status.  We recommend users check on their JVs to make sure they are approved and posted in Banner.

Q. How do I access an Incomplete status JV?

A. You can access the original JV you created, by using one of these three Banner pages:  FGAJVCD (Journal Voucher Entry), FGAJVCQ (Journal Voucher Quick) or FGAJVCM (Journal Voucher Mass Entry).

 

Q. I completed my JV, why is it now Incomplete?

A. There can be several different reasons why your JV rolled back as Incomplete:

  • Your JV might be disapproved from an Approval Queue.
    • You may receive an email or call from an officer to ask questions about your JV or to let you know they are going to deny it from posting.
    • Access your JV and look at the FOATEXT (General Text Entry), to see if an officer left a note stating why your JV was disapproved. A contact name and phone number are usually provided so you can work with the officer directly.
    • You can see the officer who disapproved a JV by going into Banner page FOIAPPH (Document Approval History) or FOIAPHT (Approval History) and enter the JV# and click Go.
  • If your JV contains $0.00 sequence(s), the document will automatically roll back as Incomplete status.
  • Your JV might fail Cross-FOAPAL edits. UAFR personnel should contact the JV originator with the JV number and the reason why. See Table 1 and Table 2 at the end of this document for Allowable Fund Type and Program Code Combinations and Allowable Fund Type and Account Code Combinations.
  • Contact University Accounting & Financial Reporting at 217-333-4568 for further assistance.

 

Q. How do I delete an Incomplete JV?

A. See the Deleting a Journal Voucher with Incomplete Status Job Aid.

Q. Can I delete a JV that has already posted in Banner?

A. No. When a JV has posted, nothing can be done to it. If the posted entry was an error, you will need to create another JV to reverse the erroneous transaction(s).

Q. How do I reverse a posted JV?

A. Before you make the reversal JV, check to make sure the original JV has posted in Banner.

  • If the original JV didn't post, a correcting JV is not needed.  You just simply need to delete the unposted/incomplete JV.
  • If the JV has already posted, a correcting JV is needed. See Copying a Journal Voucher Job Aid for step-by-step instructions on how to create a reversal JV.

Q. I'm trying to re-complete an Incomplete JV and receive the Banner error message “Transaction date DD-MM-YYYY is not in an open accounting period for chart X”. What does this mean and what do I need to do?

A. You received the error message because you're trying to post to a fiscal period that is closed.  Make sure your JV has a Transaction Date within the current month or in an open fiscal period. Then you can re-Complete the JV.

 

Q. I'm trying to complete a JV and receive the Banner error message “Document contains errors and cannot be marked complete”. What does this mean and what do I need to do?

A. After you close the error message, it takes you back to the record screen. Select Related and then select Access Transactions Summary Info-FGIJSUM. Look for the sequence number(s) that has an Error status. Those sequences need to be corrected. Close the FGIJSUM page. Go to each sequence number with an error status and tab through all the fields in the record. Once all sequences have a Postable status, the JV can be marked as Complete.

Q. I've completed my JV. How can I check its status?

A. There are several ways to check the status of a JV.

  1. Go to Banner page Document Retrieval Inquiry-FGIDOCR and type in your JV# and select Go. If it pulls it up, it is posted to Banner. If it doesn't come up, that means it's not posted to Banner and may either be in an approval queue or sitting in Incomplete status. See QA "How do I access an Incomplete status JV?"
  2. Go to Banner page Document by User-FOADOCU to check the status of all JVs you have created. Your User ID, COA & Fiscal Year are prefilled. Change the COA & Fiscal Year if they're not correct. Enter JV in the Document Type field. Select Incomplete in the Status field. Select Go. It will list all your Incomplete JVs. Notes that it could take several minutes to run a query on this Banner page.

Q. After I clicked Complete, I realized I made a mistake, can I re-call it?

A. It depends.  Most JVs go straight to the posting process and should post in Banner.  Some JVs require approvals.  Go to Document Approval-FOAAINP form to see if the JV is in an approval queue. You can contact that office and request the JV to be rejected. Then the JV will roll back as incomplete and you can access the JV for editing, correcting and re-completing. Contact University Accounting and Financial Reporting at 217-333-4568 for further assistance.

 

Q. What Rule Code should I use?

A. See Rule Codes for Journal Voucher Types job aid.

Q. Can I process a JV that has multiple debits and multiple credits?

A.Only certain personnel can post a JV with multiple debits and multiple credits if they have special rule code access. All other JV users must process a JV with 1 debit and multiple credits or 1 credit and multiple debits.

Posting JV Entries During The Month Of July

The transaction date determines which fiscal year the transaction will post. Banner JV pages (FGAJVCD, FGAJVCM, and FGAJVCQ) automatically default to the current calendar date as the transaction date. DURING THE MONTH OF JULY, FOR A TRANSACTION TO POST IN JUNE YOU MUST MANUALLY CHANGE THE TRANSACTION DATE TO A JUNE DATE.

For example, a JV entered in July will have a July transaction date as default and it will post on the July statement unless the transaction date is manually changed to a June date.

Q. I processed a JV during the month of July and forgot to change the Transaction Date to a June date.  The JV is already posted in Banner. How do I correct the fiscal year?

A. You will need to create two JVs to correct the fiscal year error:

  1. Reverse the original JV with a July date. See Copying a Journal Voucher Job Aid for step-by-step instructions on how to create a reversal JV.
  2. Create a new JV with a June date. See Copying a Journal Voucher Job Aid for how to copy a JV, then change the Transaction Date to a June date.  Review the records and complete the JV for posting.

Contact University Accounting & Financial Reporting at 217-333-4568 for further assistance.

 

Payroll Related JV:

For payroll charges (account code that starts with a 2) you will need to complete a PZAREDS (Labor Redistribution Form).  This is because a payroll charge can have varying degrees of benefits charges that need to be transferred along with the salary.

Table 1: Allowable Fund Type and Program Code Combinations

Fund Type

Program Code

19XXXX

Begins with 3-digit Org

State (1XXXXX)

 

X

ICR and Allowance (2XXXXX)

 

X

Royalties (2XXXXX)

 

X

Self-Supporting (3XXXXX)

 

X

Grants (4XXXXX) and (5XXXXX)

X

 

Gifts (6XXXXX)

X

 

Service Plans (6XXXXX)

 

X

Plant (7XXXXX)

X

 

Loan (8XXXXX)

X

 

Agency (9XXXXX)

X

 

 

Table 2: Allowable Fund Type and Account Code Combinations


Fund Type

Account Code

Expenditure (1XXXXX)

Revenue (3XXXXX)

Intra-fund Transfer (4XXXXX)

State (1XXXXX)

X

 

X

ICR and Allowance (2XXXXX)

X

 

X

Royalties (2XXXXX)

X

 

X

Self-Supporting (3XXXXX)

X

X

X

Grants (4XXXXX) and (5XXXXX)

X

 

 

Gifts (6XXXXX)

X

 

X

Service Plans (6XXXXX)

X

X

X

Plant (7XXXXX)

X

 

X

Loan (8XXXXX)

X

X

X

Agency (9XXXXX)

X

X

X

 


Guide to Terminating FOAPAL Segments

Q. What does it mean when a FOAPAL code is terminated?

A. Terminating an individual FOAPAL code prevents future transactions from posting to that specific code. This includes all transactions: journal vouchers, feeder systems, etc. This might prevent "rogue FOAPALS" by stopping users from using the code by mistake.

 

Q. How can I tell if a specific FOAPAL code is terminated?

A. View the Banner FOAPAL code maintenance pagess listed below to determine if a code has been terminated. Select the maintenance form, select enter query, enter the chart and code value, execute query. The date in the "Termination Date" field is the date the code was terminated.

  • Fund=FZMFUND

  • Organization=FZMORGN

  • Account=FTMACCT

  • Program=FZMPROG

  • Activity=FTMACTV

  • Location=FTMLOCN

  • Index=FTMACCI

 

Q. Can I "freeze" a FOAPAL code without terminating it?

A. No, simply freezing a segment is not possible. The code is both active and valid, or it is terminated.

Q. What if I made a mistake? Can a FOAPAL code be "unterminated" and made active again?

A. Yes, if the code was terminated in error, it can be made active again. However, this can be done only if the code will be used for the same purpose. Generally, FOAPAL codes cannot be reused for different purposes.

Q. Can I terminate an entire FOP (Fund, Organization and Program) combination?

A. No, we cannot terminate or prevent specific combinations of FOAPAL codes. Banner validates each FOAPAL code segment separately. Banner does not validate the entire FOP string as a whole, so we are unable to prevent how combinations of FOAPAL codes are used.

Q. Will I continue to receive monthly statements even though a FOAPAL code is terminated?

A. You will continue to receive monthly statements in Mobius View for the remainder of the fiscal year if there has been activity during the fiscal year. If the balance is $0 at fiscal year-end, it will not roll into the next fiscal year and you will then stop receiving these statements.

 

Q. How do I request a FOAPAL code be terminated?

A. Send an email request including the chart, code value, and type of FOAPAL segment to uas@uillinois.edu.

Q. Is terminating a FOAPAL code in Banner difficult?

A. Yes, terminating FOAPAL codes in Banner is very complicated because Banner is an integrated system. For example, if we terminate a FOAPAL code that is used on a Banner Accounts Receivable Detail Code, then the Accounts Receivable feed to the General Ledger will not post. Even though only one of the FOAPAL codes might be invalid, the entire GL feed from AR will not post until it is corrected. Because FOAPAL codes are used in many Banner related systems, we must first ensure that terminating it won't cause a problem in another area.

Q. What are some of the items verified before terminating a FOAPAL code?

A. Please see Guide to Terminating FOAPAL Segments detailing the items verified before terminating a FOAPAL code. General questions can be directed to uas@uillinois.edu.

 


Non-Monetary Exchange Answers

Q. What is a non-monetary exchange?

A. A non-monetary exchange occurs when the system receives goods or services from an external entity in exchange for provision of goods or services, rather than paying for it in cash or monetary equivalent.  Such exchanges may occur independently or as a secondary aspect of other kinds of transactions, such as sponsorship gift agreements, reductions in revenue received or costs incurred for monetary transactions, or gifts-in-kind.

Q. Are trade-ins of equipment considered non-monetary exchange transactions?

A. No. Trade-ins are accounted for as a part of the acquisition in valuing the new asset according to required accounting guidelines and are not considered a separate non-monetary exchange transaction.

Q. Are discounts considered non-monetary exchange transactions?

A. No. Discounts are offered by vendors for volume purchases or as a qualifying educational institution are considered a normal aspect of negotiating a monetary transaction.  The system does not give up goods or services in exchange for the price reduction.

 

Q. What if it appears that a non-monetary exchange is included in a grant or contract agreement; do I report it separately?

A. No. You should consult with your university Grants and Contracts Post-Award Office.  They will collaborate with University Accounting and Financial Reporting to determine if special accounting treatment is needed. 

Q. Can there be a gift and a non-monetary exchange to record in the same transaction?

A. Yes, when the gift transaction involves both receiving and providing goods and/or services, a non-monetary exchange is likely to be involved. See Non-Monetary Exchanges in Section 13, Accounting.

Q: When we receive a cash gift and also provide goods or services to the donor that are significantly less than the value of the gift, is a non-monetary exchange involved?

A. Not unless goods or services are also received by the system. Otherwise, the amount of the gift will be recorded only at the amount of cash received minus the value of goods or services provided (with the goods and services recorded as a non-gift.)  The remainder of cash received will be recorded in the associated gift fund as "non-gift revenue."  For example:

To help underwrite a conference, a unit receives a sponsorship gift for $10,000 that includes providing the sponsor approximately $2,000 in tickets to attend the conference.  A gift transmittal with $8,000 gift and $2,000 non-gift would be sent to the Foundation.  The following entries would be posted in the system gift fund:  
            Dr. Cash                       $8,000
                        Cr. Gift Revenue            $8,000
             Dr. Cash                       $2,000
                        Cr. Non-Gift Revenue             $2,000

 

Q. The University of Illinois System policy says that if either party to the exchange fails to fulfill the terms of the agreed exchange, the entire transaction should be penalized or cancelled.  What if one party fails to fulfill the terms, but the other party proceeds with providing the goods or services without imposing a penalty?

A. This should rarely if ever occur. If it does, contact University Counsel to determine legal ramifications, and contact University Accounting and Financial Reporting (uas@uillinois.edu; 217-333-4568) to determine proper accounting treatment.

Q. The system policy indicates the goods or services received or given up should be valued at estimated fair market value.  How can that value be determined?

A. Potential sources of valuation include cash sales value of similar goods or services, quoted market prices in catalogues or vendor price lists, auction values, independent appraisal, or any other external source that provides the value of an arms-length transaction involving similar goods or services.

 

Q. How do I record non-monetary exchange transactions?

A. Follow the processes described in OBFS Business and Financial Policies and Procedures, Non-Monetary Exchanges, Section 13, Accounting and submit the required Report of Non-Monetary Exchange Transactions as indicated. University Accounting and Financial Reporting will record the entry. 

Q. How will non-monetary exchange transactions appear on my financial statements?

A. The transactions will appear as an increase/decrease in the related revenue or expense account codes, with a rule code of 112.  There will be no net effect to fund balance or cash.  For example:

A unit is charged a reduced rate of $250 per day for use of a local hotel's conference room (normally rented at $500 per day) for a system-sponsored event in exchange for providing hotel advertising on brochures and flyers publicizing the event (estimated fair market value of $200). The value of the non-monetary exchange is $200 (fair market value of services provided by the system).  The entry that appears on the unit's statement is:

Dr. Meeting Space Rental Expense    200.00
                Cr. Advertising Income    200.00

Q. How often do I need to report non-monetary exchange transactions?

A. OBFS Business and Financial Policies and Procedures, Non-Monetary Exchanges, Section 13, Accounting requires that units submit the Report of Non-Monetary Exchange Transactions "promptly after the transaction has occurred."  This should normally be the same month that the transaction was executed. 

Q. What if I have other questions?

A. Contact the University Accounting Services section of OBFS University Accounting and Financial Reporting at uas@uillinois.edu or 217-333-4568.

 


Property Accounting Answers

Disposal/Scrap/Surplus/Transfer

Q. Can we dispose of equipment in FABweb?

A. No, disposals must be requested by submitting the Request Disposal Equipment as Scrap or Surplus form. University Property Accounting and Reporting is looking into offering a different method of disposal which may take 1 to 2 years to implement.

 

Q. I submitted a request for disposal but the item is still on my inventory. Why hasn't it been removed?

A. The reason your item is still on your inventory may be one of the following:

  • Property Accounting may be reviewing it - All equipment disposal requests are reviewed by Property Accounting staff for completeness. Incomplete requests are returned to the department and must be resubmitted.

  • The request may have been sent to the incorrect address - All equipment disposal requests are to be emailed to obfsuafrproperty@uillinois.edu. Requests sent anywhere else may not be processed.

When requests for disposal have not been removed from your inventory in four weeks please resubmit the request with a note that it was previously sent, indicating which item(s) was not removed. Property Accounting staff will respond with an explanation or advising that the item(s) has been disposed.

Q. Why is an item that I disposed/scrapped still showing up in FABweb?

A. Currently FABweb is showing all assets assigned to your chart/organization code whether or not they have been disposed. In the future, FABweb will no longer display disposed assets.

Q. Why can't Property Accounting submit disposal/transfer forms to the UIC service desk instead of returning them to the department?

A. The department is responsible for working directly with UIC Transportation to schedule the removal of equipment. Therefore, disposal/transfer requests are reviewed by Property Accounting staff for accuracy and completeness of information and returned to the department.

Q. Why do we have to put serial numbers on disposal requests for equipment with no Permanent Tag (PTag)?

A. The serial number of disposed assets that have not been assigned a property control number [PTag] provides the best means for Property Accounting to track assets as they are removed from the system.

 

Q. Can a faculty/staff person take scrap materials/equipment from a dumpster?

A. No. Employees are strictly prohibited from retrieving scrap materials/equipment from a system dumpster.

Q. I have an item for surplus, what steps do I need to take to remove it from my inventory and move it to surplus?

A. To move equipment to surplus, use the Request Disposal of Equipment as Scrap or Surplus form. Complete the form with all requested information, entering either a PTag number or a serial number:

  • For inventoried assets use the PTag and refer to Banner Fixed Asset Master Query-FFIMAST for the information.

  • For non-inventoried assets enter the serial number, description, either <$500 or <$2,500 for cost, and enter N/A where other data is not available.

  • For computers make certain that all the information is entered in the yellow highlighted columns.

Incomplete request forms will be returned for update and returned to the Property Accounting mailbox.

Q. Can faculty or staff buy surplus equipment?

A. No.

 

Q. Can University departments sell surplus equipment?

A. Yes, surplus equipment no longer needed by the system may be sold but only to not-for-profit organizations and with the permission of the Illinois Department of Central Management Services. Surplus equipment cannot be sold to system employees or for-profit businesses and organizations. A request to donate/sell surplus equipment can be initiated by contacting Jeff Weaver, Director of University Property Accounting & Reporting, at 217-244-7978 or jweaver2@uillinois.edu.

Q. Does the University conduct an auction to sell surplus equipment?

A. No. system surplus equipment is transferred to the Illinois Department of Central Management Services which conducts quarterly auctions out of their Springfield, Illinois facilities.

Q. A professor has resigned and is leaving the university. Can the research equipment be permanently transferred to another university?

A. Yes. When certain requirements have been met, sponsored project equipment may be permanently transferred with a researcher to another institution. To process this type of transfer, use the form Request to Permanently Transfer Equipment with Researcher. Also available are Instructions to complete this form.

 

Q. What is the turnaround time for UPAR to process transfer and disposal requests?

A. Transfers and disposals should be completed within 2 weeks of the initial request or 1 week after the actual removal of the equipment from the sending department. There are variables that determine exactly how long it takes to process these documents - scheduling of pick up by movers, scrap metal vendor and backlog of inspections at UIUC. As far as transfers, once the equipment is delivered by Transportation or Movers, the transfer should appear within a week in Banner. Disposals may not be posted as quickly because some disposals are batched and posted once a month. If a transfer or disposal has not been posted in the above time frame, the department may send an email to obfsuafrproperty@uillinois.edu to inquire on the status of an asset record. Users should use the Banner Fixed Asset Master Query-FFIMAST screen to verify changes to the asset records.

Q. Why isn't my transfer/disposal reflected in FABweb?

A. One problem with FABweb is that the FABweb record may not get updated the next day after the Banner fixed asset record is updated. To overcome this problem, after the transfer or disposal is processed in Banner Fixed Asset Master Query-FFIMAST, the sending unit in transfer transactions and the disposing unit in disposal transactions, must go into FABweb and perform an update to the existing asset record by adding a space or some character in the description field and submit it to Banner. Then FABweb will be updated by the Banner record. This is a glitch in the FABweb update process which will be remedied in the future (in a re-engineering of FABweb).

 

Donations/Loans/Gifts/Personal Use

Q. Can we donate computers to local primary and secondary schools?

A. No. As a rule, the State Department of Central Management Services does not approve requests to donate equipment. However, a request to donate/sell surplus equipment can be initiated by contacting Jeff Weaver, Director of University Property Accounting & Reporting, at 217-244-7978 or jweaver2@uillinois.edu.

Q. Do I add equipment donated to us to our inventory? If so, how do I record it?

A. Yes. Equipment received as a gift must be recorded by completing the appropriate gift form found on the Gift Forms page.

Q. Should I record equipment loaned to the system by an Individual, an Institution, or a Corporation?

A. Yes. Any equipment received on loan from anyone should be recorded in Banner Fixed Asset as a non-cash addition with the correct Title-To code.

Q. Can equipment be loaned to another university?

A. Yes. To process this type of loan, use the Equipment Loan Agreement. Also, see Instructions to complete Equipment Loan Agreement.

Q. Can a faculty or staff person take equipment home?

A. Yes, but only for system use and with departmental approval can faculty or staff take equipment home. Equipment may be signed out for short period usage. When equipment is to be off campus for one semester or longer, a loan agreement must be completed, signed, and retained by the owning department.

Q. Can the department give a retiree the computer or chair they were using while employed by the system as a retirement gift?

A. No, this is prohibited by system policy and state law.

 

Lost/Stolen/Insured

Q. What do I do when equipment has been stolen?

A. Report the theft of system equipment to the University Police Department. If the stolen equipment is on the departmental inventory, submit a Request Disposal of Equipment as Scrap or Surplus form indicating in the comments section that the listed item(s) was stolen and attach a copy of the police report or a letter from the police department indicating a report has been filed.

Q. Can a department obtain insurance coverage for equipment?

A. Yes. Departments may obtain insurance coverage for equipment by contacting the University Office of Risk Management at 217-333-3113.

Q. Is system equipment insured for loss due to theft or casualty?

A. Generally, no. However, departments may obtain insurance coverage for equipment accompanying an employee traveling on system business. In addition, departments may work with the University Office of Risk Management (217-333-3113) to purchase insurance coverage on equipment as needed. The OBFS Business and Financial Policies and Procedures Manual Section 6, Insurance provides information to help units understand the types of insurance provided by the system. The system does not insure office contents (including but not limited to furniture, equipment, research, and scientific equipment) unless the unit head has arranged for insurance through the University Office of Risk Management and paid the required insurance premium.

 

Q. What do I do if an employee loses a piece of equipment?

A. System employees using system property assigned specifically to them are responsible for that equipment. They may be asked to reimburse the system if the equipment is lost, stolen, misplaced, or damaged because of neglect. Whether or not an employee is required to reimburse the department for lost equipment is determined by the unit head. Equipment lost or stolen should be reported to the University Police and Property Accounting. If the equipment was purchased with sponsored-project funds, the unit must also notify the loss to the appropriate university Grants and Contracts Office.

Unit heads ensure that employees take adequate measures for the security of all equipment assigned to their units. In addition to unit heads, all individuals in a unit responsible for the security of equipment must consult with the campus University Police Department about appropriate security measures.

For more detailed information, please refer to the OBFS Business and Financial Policies and Procedures Manual, Section 12, Property Accounting.

Q. What do I do with inventoried equipment that cannot be found?

A. Once a department has made a thorough search, equipment that cannot be located during a physical inventory may be disposed according to instructions provided in the Biennial Physical Inventory Manual and explained during training. The department may complete the Request Disposal of Equipment as Scrap or Surplus form indicating that the listed items are "presumed scrapped without authorization." The completed form must be emailed to obfsuafrproperty@uillinois.edu with copy to the department head.

 

Inventory

Q. Is a physical inventory of equipment conducted? If so, who is responsible; how and when is it done?

A. The system conducts Biennial Physical Inventory with half of UIUC and UIC performing their physical inventory each year and UIS performs their inventory only on odd years. Property Accounting emails property contacts and department heads on each campus notifications of the critical dates and expectations for conducting the physical inventory. Departments run their own inventory verification report in EDDIE: UR FINANCE/UF FIFA Fixed Asset by Organization Report. Access for the report in EDDIE is granted through your departmental Unit Security Contact.

Q. Where do I get the inventoried equipment lists?

A. Departments may obtain a current listing of their inventoried equipment by accessing and running the UR FINANCE/UR FIFA Fixed Asset by Organization Report in EDDIE. Training on how to use this report is available with our Biennial Physical Inventory Training which is offered on each campus as each year's biennial documents are sent.

Q. Where do I send my inventory lists?

A. You should keep these lists in your department. The inventory verification lists used to conduct the physical inventory, complete with notations, are to be retained in the departmental files and made available to auditors and OBFS staff upon request. However, Biennial Inventory Certification letters for all universities may be mailed to Juana Rodriguez, 426 Marshfield Ave. Building, 809 S. Marshfield - MC 548, Chicago, IL 60612 or FAX to (312) 413-9487.

 

Q. I just received notice that our Biennial Physical Inventory is past due, and we never received the materials. What do I do now?

A. Contact Property Accounting advising them of your situation. No extensions can be granted. However, Property Accounting will resend the inventory notification and work with you to complete your physical inventory as soon as possible.

Q. Can I get an extension on the date the Physical Inventory Certification Letter is due?

A. Extensions are not granted on the due dates for the Biennial Physical Inventory Certification letter. The department is considered tardy until the certification letter is received by Property Accounting. However, Property Accounting appreciates emails and phone calls to update the status of the certification letter.

Departments should indicate the Chart and Organization Codes as well as the Organization Title of the Department when submitting Biennial Inventory Certification letters to Property Accounting. Failure to include this required information may result in the department being considered tardy.

 

Updating Records in FABweb

Q. Why do the departments have to update FABweb?

A. Departments have detailed information required for a complete Banner Fixed Asset record which Property Accounting staff does not know. Therefore, departmental staff must update the new acquisition record with commodity code, description, location, custodian, equipment manager, model, manufacturer, serial number, component, trade-in information. When existing equipment is re-assigned, only the department can change the location, custodian, and equipment manager information.

Rather than sending these changes to Property Accounting staff to enter, it is faster and more accurate for departmental staff to enter the information directly into FABweb for upload to Banner.

Q. Is there a way to do same type multiple item updates in FABweb?

A. No, each asset [PTag] must be updated in FABweb individually.

Q. When I went into FABweb to update a PTag, it wasn't available in FABweb. What do I do?

A. Review the asset record in Banner Fixed Asset Master Query-FFIMAST. Contact the Property Accounting staff to let them know this happened. Property Accounting will review the FABweb and Banner systems to discover why it is not available. One reason may be that the asset was transferred to your organization in Banner, but the transfer has not been updated in FABweb. In this case, the department that previously owned the equipment must submit an update of the record in FABweb by adding a punctuation mark in the description field of the FABweb record. This will allow the record to be properly refreshed in FABweb.

 

Tags (Origination, Permanent)

Q. I purchased 2 items that go on inventory. Why are there 10 tags outstanding in FABweb?

A. Origination Tags (OTags) are assigned according to the way the Purchase Order indicator was set for document accounting or commodity accounting in Banner. Requisitions/Purchase Orders acquiring equipment must use the commodity accounting method which means the document accounting box must be un-checked.

Even when the document accounting box has been un-checked, OTags are generated based upon each line item. When several line items are used to list the cost of a part of a piece of equipment, each line item will generate an OTag. For example, a vendor invoice is paid which lists 4 separate parts that make up one piece of equipment:  Widget I $550.00  Widget II $450.00  Widget III $650.00  Widget IV $350.00

An Otag is created for each listed part:  OTag 1 $550.00  OTag 2 $450.00  OTag 3 $650.00  OTag 4 $350.00

In this example, OBFS Property Accounting staff would process a JV to create 4 credit DTags which are used to inactivate OTags 2, 3, & 4. The debit DTags are used to update OTag 1 with the additional cost of the OTags 2, 3 & 4. The end result will be OTag 1 with four funding lines totaling $2,000.00.

In either case, Property Accounting staff can process journal voucher transactions to combine the appropriate line items for each piece of equipment so the department will have one OTag for each piece of equipment.

 

Q. Who sends me my permanent tags?

A. Property Accounting staff sends the Permanent Tags (PTags) to departments that do not assign their own Permanent Tags. After the Fixed Asset record for a permanent tag is completed in Banner [the department has submitted the unit modified OTag to Property Accounting and Property Accounting has reviewed, assigned a PTag and submitted the PTag to Banner Fixed Asset], Property Accounting sends the department property contact the physical tag to be affixed to the equipment.

Q. Why does it take so long to get our PTags?

A. PTags assigned by Property Accounting staff cannot be sent until the completed new acquisition record has been forwarded to UPAR who reviews and submits to Banner Fixed Asset. Property Accounting seeks to have the completed record of every new acquisition submitted to Banner within 30 days after the invoice is paid. Reasons for the delay may be one or more of the following:

  • delay in payment of the invoice if the department does not approve the invoice for payment in a timely manner or if the vendor delays sending the invoice for payment

  • delay in the submission of the updated record to Property Accounting if the departmental property contact does not complete the departmental information required before submission to Property Accounting

  • delay in submitting the completed records to Banner if Property Accounting staff are backlogged and do not submit the unit modified record to Banner in a timely manner

  • delay in sending the physical tag to the department if Property Accounting staff do not mail the physical tag to the department in a timely manner.

 

Q. What do I do if an asset tag is missing?

A. A missing asset tag may be replaced by contacting the Property Accounting processor assigned to your department who will create a new tag and mail it to you. However, the replacement tag will only have the Permanent Tag Number without the bar code.

Notifications

Q. I no longer work with property accounting matters, why am I being contacted by Property Accounting to submit acquisitions?

A. Property Accounting maintains a file of departmental contacts which has to be updated with new information. Whenever a change occurs, the department is responsible to complete and submit the Property Accounting Contact Change form .

Q. Why am I not getting the automatic FABweb messages when an item is inactivated?

A. You may not be listed as the department property contact. The FABweb email messages advising departments that an Origination Tag (OTag) has been inactivated are sent automatically to the property contact. If you need to be added to the list of department property contacts, complete the Property Accounting Contact Change form and send it to Juana Rodriguez, 426 Marshfield Ave. Building, 809 S. Marshfield - MC 548, Chicago, IL 60612 or FAX to (312) 413-9487.

 

Q. I don't understand why I am being asked for information about an item that "didn't show up in FABweb?"

A. At times, the program used to update FABweb with new acquisition transactions fails to pick up all of them. One specific reason is when there are multiple items purchased on the same P-Card transaction and the first acquisition is a supply item. Therefore, we recommend that P-Card users not mix equipment acquisitions with non-equipment acquisitions. Purchase equipment separate from supplies and/or services.

Q. I got an email telling me that I have 2 weeks to get my updated asset record submitted in FABweb. How do I find out about the item?

A. If you do not have access to FABweb, go to FABweb , click on the Logon button and follow the instructions for obtaining access. If you do have access to FABweb, once logged into FABweb, select the "new acquisition" option and all of your pending OTags will appear in FABweb. Additional information pertaining to the OTag record in FABweb may be found by referring to the Purchase Order/Invoice Voucher/P-Card/Journal Voucher. Property Accounting staff may assist you in finding and reviewing the purchase document.

Q. What notifications does Property Accounting expect from Department Property Contacts?

A. Departments must notify Property Accounting when:

  • Newly acquired equipment has a trade-in - Departments trading-in old equipment toward the purchase of new equipment must communicate this information to Property Accounting by entering information in FABweb so the equipment that was traded-in may be removed from inventory and any remaining book value can be added to the cost of the new equipment.

  • Equipment is being returned for credit - The credit transaction will then be handled properly and the equipment record will be removed from inventory.

  • Equipment items are being paid in multiple payments - Proper notification will reduce the amount of journal voucher entries required to correctly record the new acquisition. Such transactions require special handling and a special account code, 127190, is used in the payment process to record the purchase payments until the final payment has been made. At that time the new asset is recorded in Banner Fixed Asset.

 

Reports

Q. What is EDDIE? How do I use it?

A. EDDIE is the Enterprise Date Delivery Information Environment used to retrieve, view, and print financial and fixed asset reports. Access to EDDIE can be obtained by sending a request to your Unit Security Contact. Two reports are available for fixed asset users:

  • FINANCE UR Reports - UR FIFA Fixed Asset by Organization report will give you a listing of your active inventory of moveable equipment for use in performing your physical inventory requirements. Training on how to use this report is available with Biennial Physical Inventory training sessions.

  • UI2 FINANCE/Fixed Assets - FIFX Monthly Activity by Chart and Organization report is used to reconcile your departmental inventory activity with the transactions processed in Banner Fixed Assets each month. The report contains several sub-reports showing new acquisitions, funding changes, disposals, transfers in and transfers out. Training on how to use this report is available as part of the FABweb training sessions.

 

Codes

Q. What is the difference between commodity codes and account codes?

A. Account Codes indicate the type expense category for equipment purchased and indicates whether equipment is expensed or capitalized or is not equipment.

Equipment account codes are a part of the CFOAPAL:  127nnn equipment with cost from $500 to 2,499.99  161nnn equipment with cost from $2,500 to $4,999.99  163nnn equipment with cost of $5,000 and above

Commodity Codes classify equipment purchased. Departments must take extreme care in assigning the correct commodity code for a newly acquired asset because the commodity code determines the useful life of the asset which directly affects the annual calculation of depreciation. For example, the commodity code for computer hardware and peripherals for microcomputers is 204nn and for automotive vehicles and related equipment is 07000.

Q. Why are Location Codes important?

A. Location codes are extremely important not only for locating assets during the biennial physical inventory but also in the calculation of indirect cost rates.

Other

Q. Why is the historical cost of equipment more than what was paid for the item?

A. The total cost of purchased equipment includes shipping/transportation and installation costs.

 

Q. Why can't I get into FABweb to submit my department's acquisitions?

A. If you have not been granted permission to access FABweb, go to the FABweb site, click on the Logon button and follow the instructions for obtaining access.

If you have been granted access to FABweb, the system may be temporarily down

Please contact Property Accounting. If known, contact the staff person who handles your organization. If not known, contact Cheryl Dodge at 217-244-0039.

Q. How do I record the acquisition of software?

A. Software may be used for research or administrative purposes. The following account codes are valid whether the software was purchased or developed in house.

Research software is expensed using the account code 168200 in the year of acquisition.

Administrative software with a cost of $100,000 or more is capitalized using the account code 168600. Administrative software with a cost less than $100,000 is expensed using the account code 168100.

 


For questions please contact uas@uillinois.edu.

Last Updated: April 23, 2020

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