Frequently Asked Business Questions

Budget & Accounting

Account administration in general
Unrestricted accounting
Restricted accounting

Account administration in general

What is my responsibility for my funds?
Professors, principal investigators, and other “account owners” who direct personal commitments, grants, departmental funds, or other resources are responsible for the use of these University funds. This responsibility has two main parts.

First, those who direct the use of University funds ensure that a transaction placed against a University account is appropriate to that account. An expense is appropriate if it advances the purpose for which the account exists. An account’s purpose is generally known from its name. Second, those who direct the use of University funds exercise spending control. Spending authority is reflected in original and revised budget data contained in the Financial Accounting System. Obtain additional authority before you exceed the budget.

Faculty Service Representatives and other divisional personnel manage accounts and provide considerable assistance to professors, chairs, and other account owners. But ultimately, account owners are responsible for the use of the University funds placed in their care.
How do I monitor expenses and fund balances?
Reporting varies widely by number and source of funding, budget and transaction complexity, project complexity, system abilities, and personal preference. Discuss sensible reporting with your Faculty Service Representative. Have this conversation before spending begins.

Most divisional commitments are reported through the web. In these cases, you receive an e-mail each month that directs you to current expense and balances information.

Departments and other units and individual faculty members serving as principal investigators on grants or directing the use of other funds may receive accounting reports generated directly from the University’s Financial Accounting System. Again, talk with your FSR.
I receive monthly ledgers. How do I read them?
Ledgers are accounting reports generated from the Financial Accounting System. These reports are produced in paper form on or about the 10th of each month for each preceding month. Two reports, preliminary and final, are produced for the last month of the University’s fiscal year, June, so a full year of ledgers includes 13 reports.

Each ledger consists of two reports. The first, the “Account Statement in Whole Dollars,” provides a snapshot of the account as it existed at month-end. The second, the “Report of Transactions,” shows details of expenses charged to the account during the month, as well as any other budget, encumbrance, or accounting entries.

Start with the second report, the Report of Transactions. Expenses are in sub-account order: payroll, services, supplies, equipment, travel, training expense. Sub-accounts are listed here. Payroll expenses are aggregated by sub-account and pay date, so you may need additional information to see individual pay amounts. Details on many other transactions may be sparse, but the transaction description and amount are often sufficient for a knowledgeable observer to identify the charge in question. The main questions you should ask of each transaction are: Does this seem right? Does the amount correspond to expectations? Why did we reimburse this employee or pay this vendor? To investigate particular expenses, talk to your Faculty Service Representative.

The Account Statement in Whole Dollars is harder to understand, particularly for grant accounts. Check the balance available figure at bottom right. For grants, this figure may overstate available funds because it includes indirect costs. Are current month transactions typical? Divide the balance available by the current month transaction total for a rough idea of how many months of funding remain. Compare how many months remain in the budget period and whether the present balance seems adequate or insufficient. Consider what rules this funding source applies to excess funds at the end of the budget period. Talk to your Faculty Service Representative to test your understanding and to adjust future spending.
What is an account projection and how can I get one?
A projection estimates an account balance at some future point, generally the budget period end date. Accounts can be projected in a variety of ways. No one way is appropriate in all cases. Your Faculty Service Representative assists with all aspects of budgeting, spending, reporting, and projecting.
How do I fix mistakes on my accounts?
Bring questionable transactions to the attention of your Faculty Service Representative right away so that she or he can resolve discrepancies or errors.
Am I authorized to sign off on any expenses to my account?
No. All payments, reimbursements, and contracts including those within the University must be processed by the LBC and approved by your Faculty Service Representative.
Can I shift expenses or funds between my accounts or to other units of the University?
Restrictions vary widely. In general, it’s easier to move expenses than to move funds. The central requirement is that every expense be appropriate to the account to which it is charged. Check with your Faculty Service Representative.
How can I get the detail for my phone charges?
Your Faculty Service Representative can provide this on an ad hoc basis.
What are “commitments” and how do I manage them?
Many faculty have financial commitments from the Division for various reasons, monitored by your Faculty Service Representative. If you have any such commitments, you will receive an initial email allowing you to log in online and review your funds and expenses. The reports are updated monthly with an automated e-mail to notify you after each update.
I was supposed to get new funds as of July 1st; why can’t I see them?<
Additional funds for a new fiscal year may take two to three months to be added in the system. If the funds have been confirmed, it is usually acceptable to spend against them. Before spending, consult with your Faculty Service Representative.
How can I get my funds for teaching in the College Core? Do I need to?
Upon completion of the course, e-mail your Faculty Service Representative with the course name and number. Your FSR will arrange for the funds to be added to any commitments you already have from the Division. The SSD allows you to roll over these funds into the following fiscal year while the College often does not.
What if I overspend an account? Does it matter if additional funds are coming in the next budget period?
Divisional commitments typically do not allow spending in advance. You will have to cover any deficits.
Can I put personal checks into my account?
No, except to cover deficits.
I’m arranging an event with funds from various sources; is there a way to consolidate the funds/expenses?
In some cases your Faculty Service Representative may be able to create a fund which you will be able to view with the rest of your online commitments.
Can I get more time to work and finalize my grant expenses?
In some cases, a no-cost extension can be requested, especially if requested well in advance of the actual award end date. Requirements vary depending on source of funds; please confer with your Faculty Service Representative.
What if I overspend an account? Does it matter if additional funds are coming in the next budget period?
Spending control is one of your main responsibilities. That said, some agencies allow spending prior to the new budget period. Before spending, check with your Faculty Service Representative.
Can we track expenses in categories different from those of the University’s Financial Accounting System?
It is not unusual for external funding agencies to use different expense categories than those of the University’s Financial Accounting System. If you anticipate that you may need specialized reporting, talk to your Faculty Service Representative. It is important to have this conversation before spending begins. He or she will set up a system to track expenses as needed.
Is there a way to separate funds from one award but for various projects? What if they’re in different Departments, Divisions, or even institutions?
Projects for the same award but in different areas of the University can be separated into their own distinct accounts within the Financial Accounting System.

Projects for the same award but at different institutions require special subcontracts to be arranged with University Research Administration. Once negotiated and finalized, the subcontracts will be given a special code to separate their expenses within the financial accounting system.
How do I open a gift account?
If you are expecting substantial funds from a donor, please notify your Faculty Service Representative. He or she will coordinate with the appropriate internal offices to ensure the University properly recognizes the donors for their generosity and create a gift account.