Last Updated 03/10/2014
Income and expense accounts in ledger 1x are either “FY-oriented accounts” or “carry forward accounts” as determined by the fund number in the account. Fund numbers in the 90xxx, 91xxx, 92xxx, 93xxx, 94xxx and blank fund numbers (including zero fund numbers 0xxxx used only in transactions) are FY-oriented accounts. Accounts with fund numbers in the 93xxx series (assume that 930xx funds are excluded when the term “93xxx” is used) are “Various Carry Forward” accounts. Accounts with fund numbers in the 94xxx series are Clinical Trials and Research Study carry forward accounts. Carry forward accounts are used to set aside and separately account for “designated funds” (funds who use is designated, or determined, by someone within the University; whereas, Restricted funds, ledger 2, are restricted by someone outside the University). These may be “allocations” or “allotments” for a specific purpose that may then be spent over multiple fiscal years, much like grants or other sponsored funds. The Free Balance on a carry forward account will reflect the total funds set aside less any expended or encumbered amounts regardless of the year in which the activity occurred. Note that these definitions are for the Medical School only and may not apply to Danforth Campus Schools or the CFU.
For FY-oriented accounts in ledger 1x the planned or available monies are established at the beginning of the year in the Original Budget as an outcome of the School’s annual budgeting process. The Original Budget is used to initialize the Current Budget which may be modified during the course of the year by Budget Adjustments. At any point in time the Current Budget is the current amount budgeted. The Free Balance on a LC 12 account represents the available funds, that is, the unspent and unencumbered funds. Funds remaining at year-end in the Free Balance on FY-oriented accounts are ignored and are not carried forward to the new year. Service Centers fall into this category.
Carry forward accounts
Current Budgets on income and expense accounts that carry forward are not set by the annual budgeting process (there are some exceptions to this not discussed here). Current Budgets on 94xxx fund accounts represent funds set aside for the operation of Clinical Trials and Research Studies. These are fee-for-service funds, and a residual balance does not revert back to the sponsor. This is what distinguishes them from grants and contracts, which are restricted purpose funds. Current Budgets on 93xxx fund accounts represent funds designated for various purposes, including recruitment packages for faculty, individual faculty professional development funds, different kinds of commitments to faculty or programs within a department, and others uses. These Current Budgets are established and/or modified only via Budget Adjustments.
Income and expense accounts in the 94xxx fund series must close to a LC 15 reserve designated as a 94xxx fund reserve. Similarly, income and expense accounts in the 93xxx fund series must close to a LC 15 reserve designated as a 93xxx fund reserve. The cash in the LC 15 in these cases is the source of the Current Budgets in the LC 12 expense accounts. At the beginning of each fiscal year, the sum of the Current Budgets (excluding encumbrances carried forward) on the expense accounts closing to a single LC 15 reserve equals the reserve beginning balance. At fiscal year end, the sum of the Free Balances on the LC 12 expense accounts closing to single LC 15 reserve equals the reserve ending balance. This equality is reviewed every year-end to ensure no money is present in the Current Budget without the corresponding cash in the reserve, and no cash is present in the reserve that is not assigned to one of the LC 12 accounts closing to that reserve.
Ledger 1x carry forward accounts are reported by the Dean’s Office with the Specific Purpose Funds category (as opposed to General Operating Funds). The two subcategories of ledger 1x carry forward funds are “Various Carry Forward Funds” (93xxx) and “Drug and Research Studies” (94xxx).