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Departmental Accounts

Policy
Purpose: 

Provide instructions for establishing income and expenditure estimates so that accounting transactions may be processed on the financial system.

Applies to: 

All University of Kansas departments and offices.

Campus: 
Lawrence
Policy Statement: 

When a program which will result in income (Restricted Fees) to the department is approved by the appropriate Vice Chancellor or University Director, the Budget Office is to be notified to establish an income estimate and expenditure allocations. The expenditure allocations must equal the amount of estimated income to be earned. An entry such as the following would be made on PeopleSoft:

FUND 700

Type

Dept/Cost
Center

Budget

Category

Estimate/Allocation

Rev

1234000

$20000

Revenues

$1,000

 

 

 

 

 

Exp

1234000

$11100

Student Wages

$200

 

1234000

$12000

Other Op

$800

 

Accounting transactions can be processed only after the income estimate and expense allocations have been established on the financial system. In the example above, students could be hired and paid a total of $200 from cost center 1234000, and supplies could be purchased and paid for from cost center 1234000 up to a total of $800. If supplies or wages are going to exceed the original budget estimates, and if the department has received, or anticipates receiving, additional income to support the excess expenses, the Budget Office is to be informed via a budget adjustment request to increase both the income and expenditure estimates. Such a revision will not be made automatically nor can it be made by the Comptroller's Office. As income is received, you should deposit it into cost center 1234000, fund 700. If at the end of the fiscal year an overdraft condition exists (excess of spending over receipts), the overdraft will be carried forward into the next fiscal year as a decrease in your spending authority in the 12000 budget category. Any surplus of receipts over expenditures will be carried forward into the 12000 budget category. State appropriated funds may not be used to cover overdrawn restricted fee accounts.

 

Balances in 700 funds should not be negative. If expenditures exceed available funds, the department will be requested to report and proceed with a financial plan that brings the account to a positive cash position as quickly as possible.

Contact: 

Comptroller@ku.edu
Ph (785) 864-3066
Fax (785) 864-5829

Approved by: 
The Board of Regents
Approved on: 
Friday, March 21, 2008
Effective on: 
Friday, March 21, 2008
Review Cycle: 
Annual (As Needed)
Financial Categories: 
Accounting

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