Accounting Entity Definitions
| Accounting Entity | Definition |
|---|---|
| Income Fund |
The income fund accounting entity holds all tuition received from for-credit course offerings. Funds in this accounting entity should not be used to fund not-for-credit courses, conferences or continuing education programs. |
| Indirect Cost Recovery |
Indirect cost recovery funds are monies received by the University in reimbursement for services rendered in support of grants and contracts. Indirect cost recovery is the portion of a grant intended to cover indirect costs. |
| Auxiliary Enterprises |
Auxiliary Enterprises are operations which are not directly related to instruction, research or service organizational units, but which support the overall objectives of the University. This Accounting Entity includes housing and dining facilities, student unions, recreation facilities, student health, parking operations, textbook services, and child care centers. |
| Auxiliary Activities |
Auxiliary Activities are functions which are self-supporting in whole or in part and are directly related to instructional, research, or service units. The Accounting Activities Entity includes Student programs and services, student newspapers, not-for credit courses, athletics, university press, farms, medical and dental clinics, store rooms, and service departments. |
Account Definitions
Tuition and Fees
AIS Budget Purpose Range 711xxx and 712xxx
Tuition & Fee accounts at a Glance
- Revenue sources: Tuition and Legislative Audit Commission Fees
- Expenses: None – these accounts cannot have expenditures
This group of accounts is used for the deposit of tuition revenues and certain fees. All revenues derived from instructional activities are covered by the Legislative Audit Commission (LAC) guidelines. These guidelines were originally adopted in November 1982 and revised in September 1997. The regulations require that all revenues be deposited into the University Income Fund.
LAC fees are budgeted for expenditures as state accounts in the AIS Budget Purpose range of 72xxxx.
State Appropriated
Budget Purpose Range 72xxxx
State Appropriated accounts at a Glance
- Revenue sources: None – these accounts cannot receive revenue
- Expenses: Within State and University guidelines for unrestricted funds.
- Payments: P-Card, APID (PO or unencumbered) or Contractual Service Voucher (PO or unencumbered)
State Appropriated accounts are the means by which the University expends its fiscal year appropriation from the State of Illinois. These accounts are used to expend both Educational Assistance and Income funds.
Each State Appropriated account is allocated a share of the budget for the fiscal year (July 1 through June 30). The funds must be used or encumbered before the end of the fiscal year on June 30. There is a two month "lapse" period, ending August 31, to enable all expenditures to clear the accounts.
State Appropriated accounts are always budgeted within line items, such as salary, wages, travel, equipment, commodities, contractual service, telecommunications, and operation of automotive equipment.
Service Departments
Budget Purpose Range 73xxxx
Service Department accounts at a Glance
- Revenue sources: Internal billings to other campus accounts
- Expenses: Within University guidelines for unrestricted funds
- Payments: P-Card, APID (PO or unencumbered) or Contractual Service Voucher (PO or unencumbered)
A Service Department is an entity that provides a service to other University departments. Charges to users are determined by the costs of the services rendered. Service Departments are self-supporting entities. They provide goods or services to the University community on a charge-back basis.
Overhead (ICR)
Budget Purpose Range 741xxx
Overhead accounts at a Glance
- Revenue sources: Transfer of indirect costs earned on grant and contract accounts
- Expenses: Within University guidelines for unrestricted funds
- Payments: P-Card, APID (PO or unencumbered) or Contractual Service Voucher (PO or unencumbered)
Overhead accounts receive their revenue monthly as a result of a series of transfers. First, grant and contract accounts that generate overhead are charged based upon the individual accounts’ predetermined overhead rate applied to the grant and contract accounts’ monthly expenses. Then, the overhead is distributed to administrative and departmental accounts, based upon designated percentages.
Overhead (ICR) accounts should not receive any other type of revenue other than the monthly transfer in of indirect costs.
Expenses from Overhead (ICR) accounts should be geared towards the costs of the grants and contract operations of the University and should be made within University guidelines for the use of unrestricted funds.
Self Supporting
Budget Purpose Range 742xxx
Self Supporting accounts at a Glance
- Revenue sources: Funds generated by the department primarily through sales and services of educational activities and fees
- Expenses: Within University guidelines for unrestricted funds
- Payments: P-Card, APID (PO or unencumbered) or Contractual Service Voucher (PO or unencumbered)
Self-Supporting accounts receive resources that have no limitations or stipulations placed on them by external agencies or donors. These funds represent monies which are specifically allowed, under State statutes, to be retained by the University in a local bank account.
The funds are expendable for carrying out the general operations of the University, such as instruction, research, and public service. Expenses from Self Supporting accounts should be made within University guidelines for the use of unrestricted funds. Payments to vendors are made by University check/ACH.
Funded Debt (Housing, MUC, Parking, SFC, and SSC)
Budget Purpose Range 75xxxx (excluding 758xxx)
Funded Debt accounts at a Glance
- Revenue sources: Sales and services, fees, room and board charges
- Expenses: All expenses related to the operation of the enterprise
- Payments: P-Card, APID (PO or unencumbered) or Contractual Service Voucher (PO or unencumbered)
These accounts, also known as auxiliary enterprises, exist to furnish goods or services to students, faculty, staff, other institutional departments, or incidentally to the public, and charge a fee directly related to the cost of the goods or services. The distinguishing characteristic of an auxiliary enterprise is that it is managed as an essentially self-supporting activity.
The facilities within the Funded Debt group of accounts have been financed through the issuance of revenue bonds. The revenue generated from these facilities is pledged to the retirement of the bonds. All activities of the system are subject to covenants contained in the Bond Resolution which authorized issuance of the bonds.
Other Auxiliary Enterprises (Textbook Services)
Budget Purpose Range 758xxx
Other Auxiliary accounts at a Glance
- Revenue sources: Sales and services
- Expenses: All expenses related to the operation of the enterprise
- Payments: P-Card, APID (PO or unencumbered) or Contractual Service Voucher (PO or unencumbered)
This group of accounts differs from the “Funded Debt” auxiliary
accounts in that the facilities utilized have not been funded through the issuance of revenue bonds.
Other Auxiliary enterprises exist to furnish goods or services to students, faculty, staff, other institutional departments, or incidentally to the public, and charge a fee directly related to the cost of the goods or services.
Restricted (Grants and Contracts)
Budget Purpose Range 76xxxx
Restricted accounts at a Glance
- Revenue sources: Provided by external sources with limitations or stipulations placed on use
- Expenses: Within University and grantor guidelines
- Payments: P-Card, APID (PO or unencumbered) or Contractual Service Voucher (PO or unencumbered)
- ORP additional signatures required
This group of accounts receives revenues from external sources that are generally restricted to specific purposes. The funds are used in support of research, public services, instruction, and other University activities.
Each restricted account is assigned to an accountant within ORP (Office of Research and Projects) who will provide assistance with the financial management of the account.
Agency
Budget Purpose Range 787xxx
Agency accounts at a Glance
- Revenue sources: Various
- Expenses: Within University guidelines
- Payments: P-Card, APID (PO or unencumbered) or Contractual Service Voucher (PO or unencumbered)
- Cash balance must be sufficient to cover the expense for non-foundation accounts
- Foundation accounts must have funds at the foundation to cover the expense
Agency accounts are funds held by SIU as custodian for certain organizations. The resources are deposited with the University for safekeeping, to be used or withdrawn by the depositor at will. These funds are held on behalf of third parties (including student/faculty/staff organizations).
These accounts are established at the agency’s request. All budget and financial transactions are reflected in the University’s accounting records, but the assets and liabilities of the accounts do not belong to the University.
Each agency account has an on-campus faculty or staff Fiscal Officer who is responsible for the account. The funds may be used at the discretion of the Fiscal Officer within University guidelines. The Fiscal Officer is responsible for maintaining the financial resources to meet all commitments. This means that the account should carry a cash balance that is sufficient to cover all expenditures.
Loan Funds
Budget Purpose Range 703xxx and 708xxx
Local Fund accounts at a Glance
- P-cards Allowed? Not applicable. Used only for loans as described below.
- Revenue sources: Private donors, gifts, bequests, grants, fees
- Expenses: Loans are made on a revolving basis to students, who repay principal and interest.
Loan funds are used to account for resources that may be loaned to students. These funds are provided by a variety of sources. Most loan funds are generally operated on a revolving fund basis, with loan and interest repayments remaining in the loan fund group for future lending.
Clearing and Escrow
Budget Purpose Range 700xxx
Clearing & Escrow accounts at a Glance
- Revenue sources: None
- Expenses: None – these accounts cannot have expenditures
Clearing and escrow accounts serve the purpose of accumulating or expensing cash, then disbursing or recovering the balance in order to return the account to zero. All activity in these accounts is recorded in the accounting records as either an Account Receivable (AIS Natural Account 13xxx) or as an Account Payable (AIS Natural Account 211xx).
