Designated Funds are resources received by the University that have no limitations or stipulations placed on them by external agencies or donors but are internally restricted by the university for a specific purpose.
Designated Funds are coded in SOARFIN using Fund codes that begin with “14”. There are different types of designated funds as described below:
Description of Fund Type
SOARFIN Fund Code
(x representing campus location)
Fees – This fund consists of fees, such as lab fees, course fees, etc.
Development – This fund consists of carryover funds, facilities and administrative (F&A) cost recovery, support from USM Foundation.
Lucas Endowments – This fund consists of Lucas Endowments awarded by the USM Foundation.
Special Projects– This fund consists of seed/start-up funds that are linked to an individual and applicable home department, salary recoveries and other funds earmarked or under the direction of a specific person. Each “special project” is assigned a unique “Project ID”.
Study Abroad/ELI – This fund consists of Study Abroad program funds and English Language Institute funds.
There are multiple budget ledgers used in SOARFIN for designated funds. Fund type determines the budget ledger used (see below).
Fund (x denotes campus location)
Description of Budget Ledger
14x10, 14x20, 14x50
Project Grant budget
Project Revenue budget
14x10, 14x20, 14x50
Revenue Estimate budget
Designated Fund Budgets
All designated funds have both revenue and expense budgets. Revenue budgets are used to track revenue transactions for designated funds. Budget controls are in place for designated fund expense budgets.
If a department submits transactions that exceed the budget, then the transaction will not be posted to the general ledger or against the department’s budget. The budget authority will be contacted by the Controller’s Office for a resolution.
Departments, who have access to SOARFIN Commitment Control can inquire on-line and view the status of their budgets and see transactions that have been processed against the budget.
For designated funds that are for a specific activity where expenses are incurred prior to the receipt of revenue, a special override for a deficit budget may be requested. A special request must be made in writing to the Controller, Box 5143. A justifiable reason along with your Vice President/Provost’s approval must be included in the memo.
Balances in designated funds carry over fiscal year to fiscal year. Beginning budgets in a new fiscal year are loaded into SOARFIN based on balances as of the end of May in the prior fiscal year. Once the prior fiscal year is closed, beginning budgets are adjusted to balances as of June 30.
Special Projects & Lucas Endowment Funds that have no activity for two years will be closed. A notification letter will be sent to the signature authority (CC: approving Vice President/Provost) prior to the closing. If there is a remaining positive balance, it will be returned to the budget it was originally funded by. If there is a remaining negative balance, the VP/Provost will be contacted in order to clear up the deficit.
Procedures to establish a new Designated Fund
- Complete the form as directed (click here for instructions)
- Effective Dates for Special Project - Designated Funds must be included on the Request for a New Designated Budget form. If the dates are left blank, the Controller’s Office will assign an ending date of three years from the Effective Beginning Date of Establishment or date the form is received by the Controller’s Office.
- A request for a new designated fund budget must be approved by applicable Vice President, Dean or Director of the department making the request. (i.e., Professors should get approval from their respective Dean, a Dean should get approval from the Provost, and Directors should get approval from their Vice President, etc.). A signature indicating approval by the appropriate personnel must be obtained before the new account is established.
- Mail the form to the Office of the Controller, Box 5143
- The budget string will be assigned by the Controller’s Office and an account establishment form will be emailed to the signature authorities.
- The new account must be funded before expenditures are allowed. This can be accomplished through making a deposit in Business Services or processing an Interdepartmental Invoice transferring funds from another budget.
Month End Reconciliation Procedures
Designated fund budgets should be reconciled on a monthly basis. Monthly Detail Reports are available in SOARFIN to assist in this process. Anyone with Monthly Detail Report access can run a monthly report after receiving notification from the Controller’s Office (via e-mail) when an accounting period has been closed.
The SOARFIN menu path is as follows:
If the Fund Code is like 14X10 or 14X20:
USM Procedures -> MDR Designated and Agency Funds
If the Fund Code is like 14X30 or 14X40:
USM Procedures -> MDR Projects and Grants-Detail
If the Fund Code is like 14X50:
USM Procedures -> Study Abroad MDR
Questions regarding Designated Funds