Designated Funds

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.

14x10

Development – This fund consists of carryover funds, facilities and administrative (F&A) cost recovery, support from USM Foundation.   

14x20

Lucas Endowments – This fund consists of Lucas Endowments awarded by the USM Foundation.

14x30

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”.

14x40

Study Abroad/ELI – This fund consists of Study Abroad program funds and English Language Institute funds.

14x50

 

There are multiple budget ledgers used in SOARFIN for designated funds.  Fund type determines the budget ledger used (see below). 

Budget Ledger

Fund (x denotes campus location)
Description of Budget Ledger

APPROP (expense)

14x10, 14x20, 14x50

Appropriation budget

PROJ_GRT (expense)

14x30, 14x40

Project Grant budget

PROJ_REV (revenue)

14x30, 14x40

Project Revenue budget

REVEST (revenue)

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 Office of Fiscal Planning and Analysis 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 Office of Fiscal Planning and Analysis, Box #05119.  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. 

Inactive Budgets

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.

 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

For any questions regarding designated funds, please contact the following individuals in the Office of Fiscal Planning and Analysis:

Brenda McPhail: brenda.mcphail@usm.edu

601-266-4091