How to Use PeopleSoft Funds

1. Unrestricted Operating Fund

Range: 11000
Annual Budget: YES
Budget Carryover: YES
Fund Balance Carryforward: NO
Reports: MFS, Budget Review, Budget Carryover
Narrative: The Unrestricted Fund 11000 is the primary operating fund of the University and is used by almost every department to monitor and spend its annual unrestricted budget. Spending in the unrestricted fund is strictly controlled by a department’s unrestricted budget. Annual unrestricted budgets are created and submitted to the Vice Chancellors during the University’s fiscal year budget process each February using the Budget Worksheet report. Departments spend against their unrestricted fund budget for departmental salaries and operating expenses, but do not have access to the unrestricted fund balance. Fiscal year departmental unrestricted budget surplus or deficits will carryover to the department’s following fiscal year budget. The budget carryover calculation does not include Accounts 6101, 6105, 6110, 6124, 6125, or 6126.

2. Unrestricted Discretionary Funds

Range: 11001-11899
Annual Budget: MAYBE
Budget Carryover: NO
Fund Balance Carryforward: YES
Reports: MFS, Budget Review, Fund Report
Narrative: Discretionary funds in the range 11001-11899 are unrestricted funds of the University. They are separated into discretionary funds for accounting purposes only. There are no donor-imposed restrictions on these funds.

1) Discretionary Funds with Budgets: Some departments use discretionary funds to track incidental unrestricted educational programs that have revenues to offset expenses, such as Student Government funds or study abroad programs. Spending in these funds is strictly controlled by budgets. These funds will have annual unrestricted budgets to control spending for the special educational programs. In these funds, the presence of a fund balance does not authorize spending in excess of the unrestricted fund budget. Fund balances carry forward for accounting purposes only. Annual unrestricted budgets for discretionary funds are created and submitted to the Vice Chancellors during the University’s fiscal year budget process each February using special Budget Worksheet reports. A fiscal year budget surplus or deficit will NOT carry forward to the following fiscal year’s budget.

2) Discretionary Funds without Budgets: Some departments use discretionary funds for defined accounting purposes to track non-donation revenues from ancillary education programs, such as Art Camp. Spending is limited to the available balance in the fund. No new discretionary fund can be set up without authorization from the office of the Vice Chancellor for Finance and Administration.

3. Unrestricted Research Funds

Range: 11900-11999
Annual Budget: Project Budgets
Budget Carryover: NO
Fund Balance Carryforward: YES
Reports: Project Report, Fund Report
Narrative: Unrestricted Research funds are unrestricted funds of the University being allocated and used to support faculty development and travel programs. Although allocated by the University for use with specific research and travel requests, there are no donor-imposed restrictions on these funds. Fund 11950 is used for TCU sponsored research funds. Other unrestricted research funds are used only for salary recovery purposes by specific research programs.

Spending of Unrestricted Research funds is strictly controlled by budgets. These research budgets normally are one year in length and carry forward for accounting purposes. At the end of the accounting period, the unused budgets are lost.

4. Endowment Funds

Range: 

  • 12000-12999  Unrestricted funds, unrestricted income
  • 20000-29999  Permanently restricted funds, unrestricted income
  • 30000-49999  Permanently restricted funds, temporarily restricted income

Annual Budget: YES
Budget Carryover: NO; Excess transferred to unrestricted fund
Fund Balance Carryforward: NO; Unspent funds are invested
Reports: MFS, Budget Review (run for the specific fund)  DO NOT use the Fund Report for Endowment Funds Narrative: The Endowment funds of the University provide additional funding for departments as a result of donations to the endowment. For endowment gifts, the donor specifies that the amount of the gift is to be invested with the University’s long-term investments and the University can only spend the annual income from the investment. The donors understand that the Trustees control endowment spending and set an annual spending rate on the endowment investments that is approximately 5% of the invested balance.

Spending from endowment funds must be in accordance with the intention of the donors. The Trustee-determined annual spending amount becomes an expenditure budget in the department that has the authority to spend the endowment revenue. Endowment spending is strictly controlled by budgets and the presence of a fund balance does not authorize spending in excess of the endowment fund’s budget. At fiscal year-end, any unspent endowment expenditure budget is automatically transferred to the department’s unrestricted fund and will carry over with the department’s unrestricted Budget Carryover to the following year. Likewise, endowment expenses in excess of the endowment budget are automatically charged to the department’s unrestricted fund. The Finance & Administration Budget Office uses the Trustee-determined spending rate to create the annual endowment budgets during the University’s fiscal year budget process.

5. Annuity Funds

Range: 

  • 57001-57999  Temporarily Restricted
  • 58001-58999  Permanently Restricted

Annual Budget: NO
Budget Carryover: NO
Fund Balance Carryforward:  YES
Reports:  N/A
Narrative: The Annuity funds are used to track individual annuities established with gifts from donors. University departments do NOT use the annuity funds. Annuity gifts are invested with the University’s long-term investments and the annual Trustee determined spending amount is used to pay or help pay the annual annuity payments to the income beneficiary. With the expiration of the lifetime income beneficiary, the annuity’s principal becomes the property of the University and the remaining balance of the fund is transferred within the University for its donor-determined use. Temporarily restricted annuities have an unrestricted ultimate donor designation. Permanently restricted annuities have a permanently restricted ultimate donor designation. Spending from these funds is limited to the establishment of the annuity liability or the annual annuity payments to the income beneficiary.

6. Restricted Plant Funds

Range: 60000-61999
Annual Budget: NO
Budget Carryover: NO
Fund Balance Carryforward: YES
Reports: N/A
Narrative: The Restricted Plant funds of the University provide funding for construction of buildings and other physical plant projects as a result of individual donations to the specific plant projects. Spending from these funds is limited to the amount of the gifts received and the available balance in the fund. Since a project’s budget may not match the expected donated funding, there are no budgets for restricted plant funds, however an appropriate amount of the plant project’s expenditures will be charged there. The fiscal year-end balance of these funds will carry forward from one fiscal year to the next until the gifts have been fully spent for the restricted purpose. At the end of a donation supported project, unspent restricted plant gifts may be transferred to an endowment fund to provide a revenue stream for continuing building maintenance.

7. Restricted Gift Funds

Range: 62000-62999
Annual Budget: NO
Budget Carryover: NO
Fund Balance Carryforward: YES
Reports: Fund Report
Narrative: The Restricted Gift funds of the University provide additional funding for departments as a result of individual annually expendable donations to specific programs and departments. Spending of these restricted gifts must be in accordance with the donor’s intentions. Departmental spending of these funds is limited to the amount of the gifts received and the available balance in the fund. There are no budgets for Restricted Gift funds. The fiscal year-end balance of these funds will carry forward from one fiscal year to the next until the gifts have been fully spent for the restricted purpose. A restricted donation in excess of $5,000 must receive written Vice Chancellor approval before it can be moved into the department’s Restricted Gift fund for expenditure. These transfer forms are supplied by the DIS Office. New Restricted Gift funds can be requested by a Dean or Vice Chancellor from the Office of the Vice Chancellor for Finance and Administration. Only revenues that are restricted by the donor can be deposited into Restricted Gift funds.

8. Research Grant Funds

Range: 70000-70999
Annual Budget: Project Budgets
Budget Carryover: NO
Fund Balance Carryforward: YES
Reports: Project Report
Narrative: The Research Grant funds of the University provide funding for faculty-sponsored research. Funding is supplied by an external granting agency whose name is on the fund. Spending is limited to the research grant’s project budget as established by the Office of Research Accounting in Financial Services. Research grant funds relate to a specific granting agency and one fund can support multiple projects. Each research grant has a principal investigator, usually a University faculty member, who is responsible for managing the project’s grant budget. The fiscal year-end fund balance of these funds will carry forward from one fiscal year to the next. Grant projects generally have a fixed time limit and the project will be closed at the end of that period; the fund however remains open. The Office of Research Accounting in Financial Services creates new research grant funds.

9. Agency Funds

Range: 90000-90999
Annual Budget: NO
Budget Carryover: NO
Fund Balance Carryforward: YES
Reports: Fund Report
Narrative: The Agency funds of the University provide accounting for non-University special programs or for organizations where a relationship has been established, such as faculty-sponsored events or for student organizations. Financial activity in these funds is NOT considered the financial activity of the University, so no University business can be conducted using them. Spending is generally limited to the balance available in the fund. Each Agency fund will have a University faculty member or employee as a sponsor who is personally responsible for any deficits in the fund. The fiscal year-end balance of these funds will carry forward from one fiscal year to the next. Agency funds can continue indefinitely for programs and organizations as long as the fund balance remains positive. For faculty-sponsored events, at the end of the event’s accounting period, any unspent revenues will be returned to the appropriate organization and the fund will be closed. Permission to open new Agency funds must be given in writing by the appropriate Dean or Vice Chancellor.