Do you have unrestricted gift funds within your unit that are used for various types of expenses? If so, did you know that there are different options that you could use to ensure that these expenses are recorded to the appropriate NACUBO function for financial reporting purposes?
For example, a unit may have an unrestricted gift fund which has a default program code of 191000 assigned in Banner. However, if the unit decides to utilize a material portion of the unrestricted gift funding to pay for scholarships, then those scholarship expenses should be recorded to program code 191787 (and not to the default program code) to ensure proper reporting.
This could be done using either of the following methods:
- Create a new gift fund to account for the scholarship expenses. This new gift fund would be assigned a default program code of 191787 and would be funded from the unrestricted gift fund via a funds transfer; or
- Post the scholarship expenses directly to the unrestricted gift fund using the applicable 191787 program code (as opposed to the default program code). The unit would then need to complete a funds transfer, debiting the default program code of the unrestricted gift fund and crediting the 191787 program code within that same unrestricted gift fund. This will ensure funding is available within the 191787 C-FOP to cover the related scholarship expenses that posted there.
Contact
For further details on this topic, contact the applicable subject matter experts on this topic by searching for “Gift Funds” within the Business & Finance Who to Ask list.
