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Fund Management

Knowledge of the University's five major fund groups is basic to an understanding of the whole accounting system. Each is described below.

 

Note: See Related Information for details on contacting campus fund managers.

Agency Funds

Agency funds come from non-University entities usually closely associated with or even related to the activities of the University. The entities providing the funds have the sole discretion over expenditures. The financial activities of these entities are not reported as University income and expenditures, as these entities are not considered official units of the University. At year-end, as part of the fiscal closing process, any balance in these non-reportable expenditures accounts will be transferred as appropriate to a balance sheet receivable or liability account. 

For more information refer to UC Business and Finance Bulletin A-54, Agency Accounts.

Current Funds Group

These are the funds used for the current operation of the University. The group is divided into Unrestricted Funds and Restricted Funds, which are further divided into subgroups. Each is described below.

Current Unrestricted Funds

Current Unrestricted Funds can be used for any institutional purpose designated by The Regents. They include:

  • General Funds are provided by the state and are spent with the overall constraints of the approved State budget.  more information.
  • Student Fees represent funds that are used to provide services such as student health services or counseling to regularly enrolled students. In the case of University Extension and Summer Sessions, these fees support the entire instructional program.
  • Income Producing Funds derive funding from charges to users either by recharging a campus unit or a sale made to a non-University customer. They include sales and services related to the following:
    • Educational Activities, which use the funds to operate organized activities run by departments in connection with the training of students such as the medical and dental clinics and, for the activities of educational departments or the running of various laboratories.
    • Auxiliary Enterprises, which are operated primarily for service to students and staff, such as residence and dining halls.
    • Teaching Hospital funds are used to operate teaching hospitals related to the medical schools.
  • Other sources include income from self-supporting sources that do not fall naturally into any other classification. These sources range from the police department to off-campus work-study or royalties on patents.
  • Reserves represent funds derived from income-producing activities, and are set aside for future use for maintenance and replacement of equipment.

Current Restricted Funds

Current Restricted Funds are subject to special limitations established by various outside sources as follows:

  • State of California- Besides unrestricted general funds, state funds fall into two categories:
    • Special State Appropriation funds are appropriated by the Legislature for special designated research projects.  more information.
    • State Agencies funds are received under contracts with state agencies.
  • Federal Government funds are to be used in federal projects and programs. A major portion of these funds are used for research under contracts and grants and for federal student aid programs.
  • Local Government funds are to be used under contract with local governments or tax districts (such as cities, counties or school districts).
  • Endowment Income funds come from the return on the investment of principal, and are to be used for enrichment of educational and research programs as designated by the donor. (The principal is held for investment by the Treasurer of The Regents).
  • Gifts funds come from donors either given directly to The Regents or through the UCLA Foundation, and are to be used for the enrichment of University programs as designated by the donor with no tangible specified service or contractual consideration. Some gifts are classified as Unrestricted Funds according to donor designation.
  • Private Sponsor funds are received from individuals or organizations as grants and contracts with written agreements specifying contractual consideration or tangible specified service.

For more information refer to UC Accounting Manual, Section IX, Current Funds Accounting

Endowment and Similar Funds

The principal portion of the endowment funds are held by the Treasurer of the Regents for investment. The main sub-groups are:

  • True Endowment Funds are derived from gifts or bequests. Terms stipulate that the principal must remain inviolate and that only the income may be expended. The income comes to campus as current restricted funds as endowment income.
  • Funds Functioning as Endowments come from a gift or bequest where a donor does not explicitly instruct that it be used as either a current gift or an endowment. At its own discretion, the University has created a fund functioning as an endowment. Other examples of such funds include indirect cost recovery on federal and private agency contracts. These funds are invested as endowments; subsequent allocations for current use are made from principal.

For more information refer to UC Accounting Manual, Section XI, Endowment and Similar Funds. 

Plant Funds Group

These funds include:

  • Unexpended Plant Funds are to be used for plant construction or acquisition.
  • Retirement of Indebtedness funds are set aside for the retirement of bonds or the repayment of other longer term borrowings made for plant acquisition.
  • Investment in Plant includes equipment, and is valued at cost or appraised value at the time of acquisition.
  • Reserves for Renewals and Replacement are funds set aside for the renewal and replacement of plant assets.

For more information refer to UC Accounting Manual, Section XII, Plant Funds Accounting.

Loan Funds Group

This group includes loan funds for loans to students, faculty for housing and for emergency loans to student, faculty members and nonacademic employees.

For more information refer to UC Accounting Manual, Section X, Loan Funds Accounting.

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