Kuali Transfer of Funds-FINALkuali.colostate.edu/training/KFSTransfersInstructions.pdf1 Kuali...
Transcript of Kuali Transfer of Funds-FINALkuali.colostate.edu/training/KFSTransfersInstructions.pdf1 Kuali...
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Kuali Transfer of Funds
Overview
The Transfer of Funds (TF) document is used to transfer funds (cash) between accounts. The TF
document can be used by CSU areas to fulfill a funding commitment such as transferring cash from one
account to another. The TF document is also used by Business & Financial Services to record bond
payments.
There are two kinds of transfers: non-mandatory and mandatory.
• Non-Mandatory transfers are allocations of unrestricted cash between or across subfund
groups, which are not required by any external agreements. These transfers are most
commonly used throughout the University. An example of this type of transfer is moving funds
to a plant fund account for capital construction.
• Mandatory transfers are required to meet contractual agreements. An example of this type of
transfer is moving student fees to retire or pay for fund group for principal and interest
payments on bonds.
For financial statement purposes, the transfer “IN” is recorded as revenue and the transfer “OUT” is
recorded as an expense. Transfers within CSU zero out or cancel each other for financial statement
purposes, and net cash is not affected.
Types of Transfers
Non-Mandatory
Non-Mandatory transfers are made at the discretion of CSU personnel managing the account.
There are two types of non-mandatory transfers:
• Transfer of funds between or across subfund groups to provide funds for special purposes not
related to construction.
• Transfer of funds to Plant Funds for construction projects.
Entries will move cash and will be shown on the financial reports after the operating expenses as “Net
Assets including Transfers”.
The following object codes are used to transfer funds:
Object code: 9900 Object Type: Income (TO)
Object code: 9902 Object Type: Expense (FROM)
Documents used for Transfers:
Transferring to AND from Unrestricted Appropriated Accounts: When transferring to and from
unrestricted appropriated accounts such as EG, PVM, EXPSTA, RARSP, EXTEN, CSFS (13, 14, 15, 16, 17
and 19) two possible scenarios exist:
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• Transferring budget between one unrestricted appropriated account to another, within the
same subfund.
TO: EG (13) account FROM: EG (13) account ONLY use a Budget Adjustment (BA)
• Transferring budget between one unrestricted appropriated account to another, across
different subfunds.
TO: EXTEN (17) account (9900) FROM: EG (13) account (9902) Use a TF document
TO: EXTEN (17) account (6200) TO: EXTEN (17) account (4374) Use a BA document
Transferring to OR from Unrestricted Appropriated Accounts and Non-Appropriated Accounts: In all
cases, a TF document is required to move cash. However, when the transfer of funds object code 9900 is
used in conjunction with an appropriated account, the end user will also need to complete a BA
document to provide spending authority in that account.
• A transfer is needed from an EG account to help fund a conference for the first year of activity.
Use the following documents.
TO: CONFER (26) account (9900) FROM: EG (13) account (9902) Use ONLY a TF document
→ The reason a BA is not needed is because the EG account uses an expense transfer object
code (9902) which will reduce budget.
• When the conference is completed, funds are transferred back to the EG account; which will
require both the TF and the BA document as shown below.
TO: EG (13) account (9900) FROM: CONFER (26) account (9902) Use a TF document
TO: EG (13) account (6600) TO: EG (13) account (4374) Use a BA document
→ In the above transfer, actual revenue is recorded in the EG (13) unrestricted appropriated
account using object code 9900; therefore, a BA document is also needed.
Transferring WITHIN Special Course Fee Accounts – subfund COURSE: Because Special Course Fee and
Technology Fee accounts collect student funds and are considered Appropriated funds, specific
guidance is required when transferring within these funds.
If transferring across divisions, a TF document is needed to transfer the cash to the other division. These
types of transfers, in most cases, involve Technology fees only. However, since these types of accounts
are appropriated and will receive revenue in object code 9900, a BA document also needs to be
completed.
• Technology fees from various colleges support an area in another college on campus. Each
college would like to transfer a part of their technology fee to the supporting area.
TO: COURSE (25) account (9900) FROM: COURSE (25) account (9902) Use a TF document
TO: COURSE (25) account (6600) TO: COURSE (25) account (4374) Use a BA document
→ In the above transfer, actual revenue is recorded in the COURSE (25) unrestricted
appropriated account using object code 9900; therefore, a BA document is also needed.
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If transferring within the same division but to specific sub accounts, a BA document is needed.
However, a Distribution of Income and Expense (DI) document is needed to distribute the funds to the
correct sub account.
• Funds distributed to a College’s main technology account should be further broken down into
sub accounts which are labeled by each department/organization.
TO: COURSE (25) account (4366) sub account 1472
COURSE (25) account (4366) sub account 1474
COURSE (25) account (4366) sub account 1475
FROM: COURSE (25) account (4366) Use a DI document
TO: COURSE (25) account (4366) TO: COURSE (25) account (6600) Use a BA document
A TF document is not used because movement of funds is within the same account, but only to sub
accounts. Budget that was originally needed in the main account has moved to the sub accounts
therefore a BA document is needed. To move actual funds, a DI document is used to move the funds to
the correct sub accounts.
KFS Steps
Enter the transaction using the Transfer of Funds document in KFS from the Main Menu.
Complete all * fields (these are required fields). Provide an explanation of the transfer, such as
“Transferring funds for the completion of a project from account 13xxxxx to 2xxxxxx.”
Save the document and view the General Ledger Pending Entries tab to make sure the transfer is
moving the funds appropriately.
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When all fields are complete and the General Ledger Pending Entries are reviewed,the entry can be
submitted; and if needed, an Ad Hoc Recipient can be added.
• The “D” under column D/C indicates a Debit (9902 = expense);increasing expenses and
decreasing cash (Credit to object code 1100).
• The “C” under column D/C indicates a Credit (9900 = revenue); increasing the funds in
2362500-9900 and increasing cash (Debit to object code 1100).
Important: Always make sure there is adequate cash in the debit (From) account (the account
providing the funds) to cover the transfer.
Plant Fund Transfers
Plant Fund Transfers in KFS are done at the ‘Main Menu’, ‘Transactions’, ‘Transfer of Funds’, (see page 2
for the KFS Main Menu page).
Plant Fund Transfers move cash from an Organization/Department account to a Plant Fund account.
Complete all * fields (these are required fields). Provide an explanation of the transfer, such as
“transferring funds for the completion of a project from account 13xxxxx to 77xxxxx.”
The object codes to use are listed below
Object code: 9904 Object Type: Income (TO)
Object code: 9905 Object Type: Expense (FROM)
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Save the document and view the General Ledger Pending Entries tab to make sure the transfer is
moving the funds appropriately. A sample of this entry is shown on the below.
Note: Facilities Management initiates and controls the return of excess or unused funds from the Plant
Fund accounts, this same entry would apply. The “FROM” would use object code 9904 and the receiving
department “TO” would use object code 9905. When funds are returned, the original document
number should be referenced in the “Org Ref Id” field. The funds should be returned to the funding
account using a TF document (and a BA to increase budget authority, if unrestricted appropriated
accounts are involved).
Below is an example of TF when returning unused funds from a Plant Fund transfer.
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Below is an example of returning unused funds from a Plant Fund transfer when an unrestricted
appropriated account is used.
Not only is the TF needed, but a BA is needed as well to increase spending authority on the EG account,
see below for an example.
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Mandatory
Mandatory transfers are those transfers required by a non–CSU agency, i.e. bond agreements, CCHE (CO
Commission of Higher Education) fund. Currently these types of transfers will only be made by
Business and Financial Services to transfer funds for bond interest and principal payments from
operating accounts to the plant fund accounts from which the bond interest and principal payments are
disbursed.
Bond Principal and Interest use object codes 9801 and 9806.
Object code: 9801 Object Type: Income (TO)
Object code: 9806 Object Type: Expense (FROM)
Process overview for TF Document
• There must be at least one accounting line in the FROM section and one accounting line in the
TO section.
• The total in the FROM section must equal the total in the TO section in the Accounting Lines tab.
• $0 accounting line amounts are not allowed.
• Negative amounts are not allowed (unless it is an Error Correction TF).
• The KFS automatically generates cash object code, (1100) offset entries.
Routing
The document will route to:
• The Fiscal Officer for each account
• Org/Dept
• Special approvals based on subfund
The document status becomes “Final” when the required approvals are obtained and the transaction is
posted to the account.
Questions?
Campus Services http://busfin.colostate.edu/cs.aspx
Budget Office http://www.budgets.colostate.edu/