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NUMBER:                          280

 

SUBJECT:                          TRANSFERS AND EXPENSE RECLASSIFICATIONS   

 

AUTHORIZING BODY:   VICE PRESIDENT FOR FINANCE & ADMINISTRATION

 

RESPONSIBLE OFFICE:  CONTROLLER'S OFFICE

 

DATE ISSUED:                  JUNE, 2002

  

LAST UPDATE:                 APRIL, 2003

                    

RATIONALE:   Transfers of support and expense reclassifications regularly occur between funds maintained on the Banner Finance System.  This procedure describes the accounting to be used for these transactions.

 

POLICY:

 

DEFINITIONS

 

Transfers of support are conveyances of actual dollars between funds on the Banner Finance System.  Expense reclassifications are redistributions of expenditures between funds on the Banner Finance System.

 

Transfers of support (“transfers”) occur when a given fund provides actual dollars to another fund for a specific purpose.  Expense reclassifications (“reclassifications”) occur when expenditures have been recorded in a given fund but should have been recorded, in whole or part, in a different fund.

 

Budget transfers are conveyances of budgeted dollars between funds on the Banner Finance System.  Budget transfers are covered in detail in Policy 205.

 

ACCOUNTING

 

Following is a discussion of the accounting to be followed for transfers of support, expense reclassifications and budget transfers.  The procedures to be followed depend on the funds involved.

 

Transfers of Support

 

As a general rule, transfers of support are to be coded on journal voucher forms using account Y079, “Transfers”, on both the debit and credit sides of the entry.  However, transfers of support within the General Fund (fund codes 1xxxx) are to be processed as budget transfers.  Various budget accounts have been established within the Banner Chart of Accounts.  These accounts should be utilized when completing budget transfer forms or budget journal vouchers (see policy #205).

 

Transfers of support involving the Unexpended Plant Fund (P100, fund codes 7xxxx) also require different handling.  Account Y079, “Transfers”, should be used for all funds outside of the Unexpended Plant Fund.  For funds within the Unexpended Plant Fund, account selection should be made from the following list:

 

B001    General Fund Support

B002    Designated Fund Support

B003    Expendable Restricted Fund Support

B004    Auxiliary Fund Support

B006    Endowment Fund Support

B007    Plant Fund Support

 

Use of the accounts on this list facilitates tracking of capital project funding.

 

Transfers of support and budget transfers involving grant and contract funds are handled by the Office of Research & Graduate Study.  Contact that office for further guidance.

 

Expense Reclassifications

 

 As a general rule, expense reclassifications are to be coded on journal voucher forms using the appropriate expense accounts on both the debit and credit sides of the entry.

 

For example, if postage expenses are to be reclassified between funds, account K055, “Postage” would be used on both the debit and credit side of the entry.  If student labor costs are to be reclassified between funds, account C020, “Student Labor” would be used, etc.

 

In situations where it would cause an unreasonable administrative burden to use each of the detailed supplies and services expense accounts as indicated above, the following expense reclassification account may be used on both the debit and credit side of the entry:

 

E079    Supplies & Services Expense Reclassification

 

Detailed compensation expense accounts must be used for compensation expense reclassifications.  This is to ensure that expenses continue to be matched against their related budgets.

 

 

Questions concerning these procedures may be directed to the Accounting Office, extension 2447.