Function

Chart of Accounts Manual

Description

Function codes answer the question, “How does this transaction accomplish the mission of the University?” Function codes are required as attributes to all Program and Project values.

The Function code indicates the purpose of a project or program, such as instruction or research.

  • 4 characters
  • Attribute of Program or Project (NOT entered in ChartField string)
  • Higher purpose of activity
  • Each Program/Project can only have one Function
  • Each Function may have many Programs/Projects

Function codes are grouped into the following categories:

However, function code will not be entered on individual transactions. Instead, function is attached to either Program or Project and is inferred when either of these ChartFields is chosen.

Whenever a department or unit starts performing tasks that are different from the nature of the work they have been doing, the impact on function coding must be taken into consideration. For example, if a department that typically instructs starts to conduct research activities as well, a new Program must be identified with a research function code.

Any single activity that is equal to or greater than both $100,000 and 25 percent of the total program or project costs should be separated for the assignment of the appropriate Function code. To identify and code federally unallowable costs, departments should separately budget and expend the salaries and benefits for any person who spends more than 25 percent of total effort in any particular month performing any of the OMB Circular A-21 unallowable activities (see University Policy, Charging of Direct and Facilities and Administrative [Indirect] Costs for details).

Function Values

Instruction Function Codes

The instruction function codes include activities that are part of an institution’s instruction program, including:

  • Expenditures for credit and noncredit courses.
  • Academic, vocational, and technical instruction.
  • Remedial and tutorial instruction.
  • Regular, special, and extension sessions.

Departmental research and public service that are not separately budgeted are included in this classification. It is important to recognize that some types of administrative costs are included in this function while others are not. This category excludes expenditures for academic administration when the primary assignment is administration, such as college administration or most central administrative activities.

The National Association of College and University Business Officers (NACUBO) definition has been further expanded to include required subcategories for Institutional Research and Reporting (IRR) and Sponsored Projects Administration (SPA). Instruction has been divided into degree/credit hour generating and other instruction for the Instructional Cost Study (ICS). Any noncredit hour-generating activities are excluded from direct instructional expenditures for the ICS. The training functions have been divided to identify sponsored training and training associated with contracts between the University and outside hospitals for the indirect (F&A) cost rate development.

0100 Instruction – Credit Courses

Activities related to the generation of credit hours. The department using this code has or will have a course listed in the University’s student system. The Dept ID that is used in the financial system must be set up as an academic ‘org’ in the student administration system and be associated with a subject on the subject table.

This includes department administration and other scholarly activities not separately budgeted. College administration should be coded as Academic Support (4100).

Other than ROTC, this category should not include any central administration activities.

Examples of appropriate activities include:

  • Regular or summer session
  • Special or extension sessions
  • Honors program courses
  • ROTC

0200 Instruction – Remedial & Preparatory

Activities related to non-credit (0xxx level) courses. These courses are considered when awarding financial aid, but do not produce credits toward a degree, such as GC 712 Introductory Algebra, Part 1.

0210 Instruction – other non-Credit

Activities related to other non-credit instruction activities.

Examples of appropriate activities include:

  • Professional development & conference courses.
  • Extension Service workshops.
  • Compleate Scholar programs.
  • Academic and Distributed Computing Services (ADCS) short courses.

0300 Instruction – training sponsored

Activities administered by SPA, that are evidenced by an award notice, relating to additional training of students or post doctoral students, either directly related to coursework or as an enhancement. This category includes stipends.

Examples of appropriate activities include:

  • Internships
  • Assistantships
  • Apprenticeships
  • Training grant

0310 Instruction – Affiliated Hospitals

Activities related to contracts with area hospitals associated with the University’s residents, pharmacists, occupational therapists (OTs), physical therapists (PTs), etc.

0320 Instruction – training nonsponsored

Activities not administered by SPA (and not evidenced by an award notice) related to additional training of students, either directly related to coursework or as an enhancement.

Examples of appropriate activities include:

  • Internships
  • Assistantships
  • Apprenticeships
  • University Showboat program

Those activities whose primary purpose is to contribute to the student’s emotional and physical well-being and to his or her intellectual, cultural, and social development outside the context of formal instruction programs should be coded as Student Services (6100).

0400 Instruction – hospitals/Clinics

Activities related to administration and direct patient care at dental clinics and veterinary hospitals and clinics.

Research Function Codes

The research function codes include activities specifically organized to produce research outcomes that contribute to new knowledge, or fuller scientific knowledge or understanding of the subject being studied, whether commissioned by an agency external to the institution or separately budgeted by an organizational unit within the institution. Subject to these conditions, it includes expenditures for individual and/or project research as well as those of institutes and research centers. This category does not include all sponsored activities nor is it limited to sponsored research, since internally supported research activities may be included in this category under the circumstances described.

1100 Research – sponsored

Activities related to research administered by SPA and separately budgeted and accounted for by a project (evidenced by an award notice). Includes activities specifically organized to produce research outcomes that contribute to new knowledge or fuller scientific knowledge or understanding of the subject being studied.

These activities possess all of the following four characteristics:

  • Defined work scope or statement.
  • Specific commitment regarding deliverables and/or the level of personnel effort.
  • Specific line item budgeting (i.e., expense account) to detail expenditures by activity and project period.
  • Requirement of a formal response that summarizes scientific results or conclusions (e.g., final/periodic scientific progress/ technical reports).

Examples of appropriate activities include:

  • Federal National Science Foundation (NSF) research sponsored agreements.
  • Federal National Institutes of Health (NIH) research sponsored agreements.
  • State of Minnesota research grants.
  • National or local foundation research grants.

1110 Research – organized nonsponsored

Research and development activities that are specifically organized to produce research outcomes that contribute to new knowledge, or fuller scientific knowledge or understanding of the subject(s) being studied. Accounts are managed within academic units (not administered by SPA). Funds are allocated based on a formal award request, and are specifically budgeted and accounted for by the University.

The formal award request may include and/or require one or all of the following documents – defined scope, deliverables, detailed budget, final technical and financial reports.

Examples of appropriate activities include:

  • Cost sharing, matching, and in-kind contributions to sponsored research projects.
  • Accounts utilized for the transfer of deficits from sponsored research accounts.
  • Internal grant-in-aid program.
  • AHC Faculty Research Development /Grant Program/Seed Grants.
  • Bridge funds.
  • Research funded by state appropriations.
  • Research funded by federal appropriations, such as Agricultural Experiment Stations (AES) research.

1120 Research – federally unapproved human stem Cell Research – sponsored

Activities administered by SPA, that are evidenced by an award notice, involving human embryonic stem cell research utilizing cell lines that are unapproved by the federal government. Refer to the four characteristics that qualify expenditures as ‘sponsored’ in Research- Sponsored (1100).

1130 Research – federally unapproved human stem Cell Research – nonsponsored

Activities not administered by SPA (and not evidenced by an award notice) involving human embryonic stem cell research utilizing cell lines that are unapproved by the federal government. Refer to the four characteristics that qualify expenditures as ‘nonsponsored’ in Research Nonsponsored (1110).

1140 Research – organized, Investigator- Initiated Clinical trials – Clinical trials

Sponsored expenditures for principal investigator initiated human subject clinical trial research in which the clinical trial protocol was designed by the principal investigator. Refer to the four characteristics that qualify expenditures as ‘sponsored’ in Research-Sponsored (1100). (See also 2150 for public service sponsored clinical trials.)

1200 Research – Departmental Research

Includes all nonsponsored research activities that support the University’s research mission, and are not budgeted or accounted for by a formal* award. These expenses are designated for research purposes.

Examples of appropriate activities include:

  • General lab setup (not associated with a formal award).
  • Startup funds to support faculty research (not associated with a formal award).
  • A Medical School Dean’s commitment to support faculty research (not associated with a formal award).
  • Department allocation to support faculty research.
  • General research related expenses (research expenditures that cannot be directly attributed to a specific research per requirements of Policy 2.1.3 – Charging of Direct and Facilities and Administrative [Indirect] Costs).
  • Fixed price accounts-transfer accounts where funds are not being used for a particular research purpose.

Unlike functions 1100 and 1110, funds are not allocated by formal* award; there is no request for funds. The University is not required to provide any of following documents:

  • Defined work scope or statement.
  • Specific commitment regarding deliverables and/or the level of personnel effort.
  • Specific line item budgeting (i.e., object level) to detail expenditures by activity and project period.
  • Requirement of a formal response that summarizes scientific results or conclusions (e.g., final/periodic scientific progress/ technical reports).

*Examples of formal awards (function code 1110 – Organized Research Nonsponsored):

  • Cost sharing, matching, and in-kind contributions to sponsored research projects.
  • Accounts utilized for the transfer of deficits from sponsored research accounts.
  • Internal grant-in-aid program.
  • AHC Faculty Research Development /Grant Program/Seed Grants.
  • Bridge funds.
  • Research funded by state appropriations.
  • Research funded by federal appropriations, such as Agricultural Experiment Stations (AES) research.

1210 Research – federally unapproved human stem Cell Departmental Research

Department activities not separately budgeted and accounted for by a project (award notice) involving human embryonic stem cell research utilizing cell lines that are unapproved by the federal government. Refer to the four characteristics that qualify expenditures as Research- Departmental Research & Research Support (1200).

Public Service Function Codes

The public service function codes include activities that are established primarily to provide non-instructional services beneficial to individuals and groups external to the institution. These activities include community service programs and cooperative extension services. Included in this category are conferences, institutes, general advisory services, reference bureaus, radio and television, consulting, and similar non-instructional services to particular sectors of the community.

2100 Public service – sponsored

Activities administered by SPA, that are evidenced by an award notice, that involve performance of work primarily to provide services beneficial to individuals and groups external to the institution. This category does not include instruction, research, or research training.

Examples of appropriate activities include:

  • Conferences (non-CCE/CME), symposiums and workshops
  • General advisory services
  • Reference bureaus
  • Testing services
  • Consulting
  • Radio and television (if not self supporting)

2110 Public service – nonsponsored

Activities not administered by SPA (and not evidenced by an award notice) that involve performance of work primarily to provide services beneficial to individuals and groups external to the institution. This category does not include instruction, research, or research training.

Examples of appropriate activities include:

  • Conferences (non-CCE/CME), symposiums and workshops
  • General advisory services
  • Reference bureaus
  • Testing services
  • Consulting
  • Radio and television (if not self supporting)
  • Any non-research, non-instruction sponsored activity

2150 Public service – Clinical trials

Activities administered by SPA, that are evidenced by an award notice, but are initiated by external organizations, which are expended for pharmaceutical and medical device testing on human subjects.

2160 Public service – federally unapproved human stem Cell Clinical trials

Activities administered by SPA, that are evidenced by an award notice, but are initiated by external organizations, involving human embryonic stem cell research utilizing cell lines that are unapproved by the federal government. Activities included in this category are pharmaceutical and medical device testing on human subjects.

2200 Public service – Clinics operations & Administration

Activities related to administration and direct patient care for Medical School private practice plans, including salaries for clinical medical staff, facilities used to treat patients, and clinical supplies. This category is most likely to be used by the Medical School, and includes the Community University Health Care Center (CUHCC), but not these activities:

  • Patient care at other instructional hospitals and clinics; refer to Instruction – Hospitals/Clinics (0400).
  • Dentistry clinics; refer to Instruction – Hospitals/Clinics (0400).
  • Veterinary Teaching Hospital; refer to Instruction – Hospitals/ Clinics (0400).

Institutional Support Function Codes

The institutional support function codes include institution-wide activities such as:

  1. central executive-level activities concerned with management and long-range planning of the entire institution, such as the governing board, planning and programming, and legal services;
  2. fiscal operations including the investment office;
  3. administrative data processing;
  4. space management;
  5. employee personnel and records;
  6. logistical activities that provide procurement, storerooms, safety, security, printing, and transportation services to the institution;
  7. support services to faculty and staff that are not operated as auxiliary enterprises; and
  8. activities concerned with community and alumni relations, including development and fundraising.

The instructional cost study, conducted by the Office of Institutional Research, requires that campus-specific academic support expenditures be segregated from system-wide costs. The geographic campus where expenditures occur normally is a good indicator of a campus- specific activity, except when the Twin Cities campus is involved. A determination is made for all Twin Cities administrative activities as to whether benefits are provided to the entire system or just to the Twin Cities campus.

Indirect (F&A) cost rate development guidelines require a different allocation basis for space planning, security, sponsored project administration and academic administration than other institutional support. Public relations and student administration and service centers also require special treatment and have had special codes established for this purpose.

3100 Institutional support – executive Management/fiscal system-Wide

Activities related to central, executive-level administrative departments, located on the Twin Cities campus, providing benefit to all campuses of the University of Minnesota system.

Examples of appropriate activities include:

  • Board of Regents
  • Financial Reporting and Budgeting
  • President’s Office
  • Asset Management
  • VP Academic Affairs
  • Audits
  • Institutional Research and Reporting (IRR)
  • Cash Management
  • VP Finance & Operations
  • Insurance (non-property)
  • Property Accounting
  • Attorney’s Office
  • Payroll
  • Equal Opportunity Affirmative Action (EOAA) Office
  • Training Services
  • Patent Office
  • Human Resources
  • University Senate

Expenditures to provide benefits to students are classified under Student Services (6100).

3110 Institutional support – executive Management/fiscal Campus-Wide

Activities related to central administrative departments that provide benefit to only the campus on which they are located. These departments include:

  • Chancellors.
  • Bursar.
  • Campus mail.
  • Coordinate campus business offices.

Expenditures to provide benefits to students are classified to Student Services (6100).

This category is not for use by colleges, schools or non-central campus departments, since it would be inappropriate to allocate the costs of these activities to all other colleges on the campus. Refer instead to the codes under Academic Support to determine where these activities should be classified.

3150 Institutional support – legal Proceedings

Activities related to defense and prosecution of any criminal, civil, or administrative proceeding commenced by any governmental body (Federal, State, local or foreign governments).

3200 Institutional support – sponsored Projects Administration

Activities related to central University offices established primarily to administer sponsored projects. These offices generally include:

  • Sponsored Projects Administration (SPA)
  • Sponsored Financial Reporting (SFR)
  • Research Subjects Protection Program (RSPP)
  • Oversight, Analysis and Reporting (OAR)
  • eResearch Systems Support (eRSS)

3300 Institutional support – space Planning/security

Activities related to campus security, space planning and environmental health.

Examples of appropriate activities include:

  • Police department
  • Campus security
  • Physical planning
  • Environmental health

3400 Institutional support – Public Relations & other

Activities at an institutional level conducted to maintain relations with the community, alumni, or other constituents and to conduct activities related to institution-wide development and fundraising. For similar activities at a college level or below, see Academic Support – College Development/Alumni Relations (4500).

3500 Institutional support-student Administration (system-Wide)

Activities related to central student administrative departments, located on the Twin Cities campus, that provide benefit to all campuses of the University of Minnesota system.

Examples of appropriate activities include:

  • Student Administration Systems
  • Student accounts receivable
  • Vice President of Student Affairs

Excludes non-self-supporting intramural athletics and intercollegiate athletics. See 6100.

Academic Support Function Codes

The academic support function codes include activities that provide support services for the institution’s primary missions—instruction, research and public service, but do not benefit the entire institution. This category includes, for example:

  1. the retention, preservation, and display of educational materials – e.g., libraries, museums, and galleries;
  2. the provision of services that directly assist the academic functions of the institution, such as demonstration schools associated with a department, school, or college of education;
  3. media such as audio-visual services and technology such as computing support;
  4. academic administration (including academic deans but not department chairpersons) and personnel development providing administration support and management direction to the three primary missions as noted earlier; and
  5. separately budgeted support for course and curriculum development.

Expenditures that are charged directly to the various operating units of the institution (such as computing support) are not included. They would be classified as Auxiliary Enterprises (7300).

The instructional cost study requires that campus-specific academic support expenditures be segregated from system-wide costs. The geographic campus where expenditures occur normally is a good indicator of a campus-specific activity, except when the Twin Cities campus is involved. A determination is made for all Twin Cities administrative activities as to whether benefits are provided to the entire system or just to the Twin Cities campus.

4100 Academic support

Activities that provide support for instruction, research, and public service missions only to the campus on which the activities are conducted. This category excludes department chairs and their staff, which should be coded to Instruction – Credit Courses (0100).

Note: If a program has more than one mission, and each mission within that program has activity equal to or greater than $100,000 and is 25 percent of the total program or project; then that mission must be separated into the appropriate Function code.

Examples of appropriate activities include:

  • Course and curriculum development
  • Vice Chancellor for Academic Affairs
  • College administration
  • Undesignated gifts

4400 Academic support-Museums & Galleries

Activities related to organized activities that provide for the collection, preservation, and exhibition of historical materials, art objects, scientific displays, etc.

Excludes libraries, which are classified instead to Academic Support- Libraries (4700).

4500 Academic support-College Development/Alumni Relations

Activities at the college level or below that are conducted to maintain relations with the community, alumni, or other constituents, and for college-wide development and fundraising. Similar activities at an institutional level should be classified to Function code Institutional Support-Public Relations & Other (3400).

Example: Registered campus life student groups .

4700 Academic support-libraries

Activities related to organized efforts that directly support the operation of a catalogued or otherwise classified collection.

Expenditures related to rare books (i.e., only those collections maintained in environmentally secure areas with restricted access) are also included, although indirect (F&A) cost rate development guidelines treat rare book collection expenditures differently from general library expenditures.

Operation and Maintenance of Plant Function Codes

The operation and maintenance of plant function code includes activities related to all expenditures of current operating funds for the operation, maintenance and service of the physical plant (grounds and facilities), net of amounts charged to auxiliary enterprises, hospitals, and independent operations.

Depreciation of the physical plant is not included in this category.

Examples of appropriate activities include:

  • Physical plant administration
  • Utilities
  • Grounds maintenance
  • Fire protection
  • Property insurance
  • Major repairs, maintenance and renovations to buildings and other structures
  • Routine repair and maintenance of buildings and other structures
  • Custodial and janitorial services in buildings

5100 operations & Maintenance of Plant

Activities as described under the general heading for Operation & Maintenance of Plant.

Student Services Function Codes

The student services function code includes activities related to the offices of admissions and registrar as well as others whose primary purpose is to contribute to the student’s emotional and physical well- being and to his or her intellectual, cultural, and social development outside the context of formal instruction program.

Examples of appropriate activities include:

  • Admissions
  • Registrar
  • Student records
  • Student organizations
  • Student newspaper
  • Student financial aid and work study administration
  • Student health service (if not essentially self-supporting)
  • Intercollegiate athletics (if not essentially self-supporting)
  • Intramural athletics
  • Cultural events
  • Minority Affairs
  • Counseling and career guidance (excluding informal academic counseling by the faculty)
  • Placement offices

6100 student services

Activities as described under the general heading for Student Services.

Auxiliary Enterprises Function Codes

The auxiliary enterprises function code includes activities related to furnishing services directly or indirectly to students, faculty, or staff, and charging a fee related to, but not necessarily equal to, the cost of services. The distinguishing characteristic of most auxiliary enterprises is that they are managed essentially as self-supporting activities, although sometimes a portion of student fees or other support is allocated to assist these activities. Some auxiliaries may incidentally serve the public.

Examples of appropriate activities include:

  • Bookstores
  • Residence halls
  • Recreational sports
  • Food services
  • Faculty club
  • Faculty and staff parking
  • Day-care centers
  • Faculty housing
  • Intercollegiate athletics (if essentially self-supporting)
  • Student health services (if essentially self-supporting)

7300 Auxiliary enterprises

Activities as described under the general heading for Auxiliary Enterprises.

Scholarships and Fellowships Function Codes

The scholarship and fellowships function code includes activities related to student financial aid such as scholarships, fellowships, prizes, and awards in the form of grants to students, resulting either from selection by the institution or an entitlement program. Recipients are not required to perform service to the institution as consideration for the financial assistance, nor are they expected to repay the amount of the grant to the funding source. When services are required in exchange for financial assistance, the charges should be classified as expenditures of the department.

Examples of appropriate activities include:

  • Scholarships or fellowships awarded to undergraduate, graduate, or post-graduate students.
  • Trainee stipends, except as noted below.
  • Prizes and awards.
  • Aid to students in the form of tuition or fee remissions, except as noted below.

Excluded are:

  • Administration of student financial aid and work study.
  • Trainee stipends awarded to individuals who are not enrolled in formal course work (which should be charged to instruction, research, or public service, as appropriate).
  • Remissions of tuition or fees granted because of faculty or staff status, or family relationship of students to faculty or staff (which should be recorded as staff benefit expenditures in the appropriate functional expenditure category).

8100 student Aid

Activities as described under the general heading for Scholarships and Fellowships.

Agency Activity Function Codes

The agency activity function code includes activities in funds that are held in trust by the University but owned by outside entities that have a close relationship with the University. These funds are not owned by the University, but rather are held by the University as custodian or fiscal agent (for individual students, faculty, staff members, or student organizations), and thus are not available for University operations. All expenditures classified here are excluded from the University’s operations and net assets.

9980 Agency Activity

Activities as described under the general heading for Agency Activity.


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