University of Florida Expenditure Policy

Policy Statement

Procurement and Disbursements must work together to address and communicate what purchases are allowable.  These purchases include major categories of purchase, whether funded by state appropriation, grants or auxiliaries.  These funds can be spent in a variety of ways, so long as the funds are being spent for relevant operating expenses and expenditures meet the intent of the law authorizing the payment.  State of Florida Disbursement Guide can be found at: http://edocs.dlis.state.fl.us/fldocs/dfs/2022ReferenceGuideForStateExependitures.pdf 

State Appropriations (“E&G” Money) – Budget-based funds

This funding comes from/is re-distributed through the following (not all-inclusive):

1. The State’s General Revenue funds (Fund Codes 101, 102, and 103)
2. Student tuition, some collected student fees (Fund Codes 121, and 122)
3. Educational Enhancement Trust Funds (Fund Codes 111, 112, and 113)

Expenditures for food service, including costs for refreshments, are not permitted.  Permissible food costs are limited to certain qualifying recruitment activities, emergencies as those are defined by the Reference Guide, and, as stated within Rule 69I-40.103, F.A.C., where otherwise ‘expressly provided by law’.

Sponsored Projects- Budget–based funds

This funding results from projects proposed by a principal investigator (PI) to an outside agency, where that agency then provides funding against the proposal.  Sponsored projects involve contractual agreements with PI’s that have been approved and funded by an external funding agency.

Relevant fund codes for direct costs of Sponsored Projects include:

1. Fund Code 201 – Federal Sponsored Programs
2. Fund Code 209 – Non-Federal Sponsored Programs
3. Fund Code 214 – Non-Federal Clinical Trials

The use of these funds is subject to Indirect and Direct Cost considerations as is addressed further in the Cost Analysis Directives and Procedures.  All expenditures must be specifically responsive to the funding agreement and purposes of the Project.

IFAS Federal Funds

In addition to state appropriations and sponsored projects funds, IFAS also receives federal funds tied to UF’s status as a land-grant institution with related research and extension activities.  These funds are allocated at the discretion of the IFAS Dean and follow federal guidelines.

Funds codes include:

1. Fund Code 221 – IFAS Experiment Stations
2. Fund Code 222 – IFAS Extension Services

These funds are federally appropriated funds and are subject to the expenditure guidelines for appropriations set forth by the State Department of Financial Services, Division of Accounting and Auditing.

Returned overhead

At the end of each year, Indirect Costs that have not been expended are placed into Fund Code 211, a cash-based fund for use at college/department/project level for purposes which support research, research-related activities, sponsored training programs and extension.

Residual funds

Funds that are not returned to the Sponsor at the end of a Sponsored Project are associated with Fund Code 212, which is a cash-based fund.  These are discretionary moneys restricted for purposes of supporting research.

UF Strategic Funds

These are dollars allocated by the President/Provost for strategic purposes across the university. These funds originate as investment earnings that must follow the original source of the funds and cannot be transferred for other use. Fund Code 175 also receives funds from other specific sources for strategic use.

Fund Code 275 – Research-related

• DSPSTRG – From DSP contributions
• INTSTRG – From research related interest earnings

Allowable use is the same as Returned Overhead funds.

Fund Code 175 – Non-research related

• APPROPN – carries restrictions of appropriated funds
• UNRESTN – unrestricted
• PROVOST – UF Bookstore commissions
• SRVPHSC – Shands administrative overhead

Component Units (CU) – Cash-based funds

This funding pertains to Direct Support Organizations (DSOs) or other affiliates, such as Faculty Practice Plans (FPPs).  These CU’s exist to benefit the University but are separate non-profit corporations that have their own Tax IDs and requirements.  Component Units include Direct Support Organizations (DSOs) and Affiliates.  Examples of DSOs and Affiliates can be found under the UF Reporting Entity section of the UF Finance & Accounting website.  CU employees may be, but are not always, UF employees.

Expenditure rules for each organization are guided by the CU’s Memorandum of Understanding (MOU) and any donor-specific restrictions.  There are 4 basic criteria which determine the legitimate use of CU funds:

1. The use must be reasonable and for and on behalf of UF and its mission
2. If applicable, the use must fall within the donor’s intent for the gift
3. The use must not jeopardize the CU’s tax-exempt status
4. The use must comply with all applicable statutes and regulations

Some DSO’s are required to follow the same Procurement quote/solicitation thresholds as UF.

Money spent by the CU for the purposes of accomplishing the CU’s express mission, including travel and entertainment expenses for fund-raising and development purposes, are processed directly by the CU in accordance with its policies.  DSO’s process disbursements through the myUFL system under the guidelines in the UF HR Toolkit – Paying Suppliers (For DSOs).

Transfer from Component Units-Fund Code 171 – used for all transfers from CU’s, except where circumstances require a different fund code, such as UF Research Foundation (discussed below).

1. Source of funds is a required ChartField to define source for these transfers
2. Funds sources include fees charged for delivery of services in the clinical operations of the Health Science Center colleges
3. Faculty Practice Plan (FPP) funds can only be expended for purposes consistent with and supportive of the objectives of the respective College, the Health Science Center, and UF, and in accordance with the approved faculty practice plans

Expenditures may be made, subject to appropriate approval, for items such as:

1. Enrichment of a Department’s academic activities
2. Provision of appropriate salary and fringe benefits to designated faculty of the respective College
3. Food & beverage for meeting, entertaining or recruitment purposes, if supported by a statement of business purpose and list of attendees
4. Coffee or water service for department

University of Florida Research Foundation (UFRF) Allocations – Fund Code 213

UFRF operates as a DSO that promotes, encourages and provides assistance to UF’s research activities.  This fund receives the monies generated by royalties and licensing, as well as monies from private foundations, and provides discretionary monies restricted for purposes of supporting research.

Cash-Based Funds

AUXILIARIES

This funding comes from the sale of goods and/or services. Examples of Auxiliary fund codes are:

1. Fund Code 141 – Reitz Union

2. Fund Code 142 – Traffic and Parking

3. Fund Code 143 – Teaching and Technology

4. Fund Code 147 – Housing

5. Fund Code 149 – Auxiliary – Other funds

6. Fund Code 159 – Support Unit Overhead Fund

7. Fund Code 151 – Auxiliary – Working Capital (Physical Plant)

Moneys generated by an Auxiliary Department of the University are not considered appropriated and therefore, are not subject to the expenditure guidelines for appropriations set forth by the State Department of Financial Services, Division of Accounting and Auditing. Generally, Auxiliary moneys may be expended for any goods and/or services necessary to fulfill the mission and programmatic needs for which the Auxiliary was established. The Auxiliary Accounting website provides more information.

RESEARCH SERVICE CENTERS

Revenues in this fund come from sales of goods and/or services primarily to university departments, with most revenue generated from sponsored projects. Examples of Research Service Centers fund codes are:

1. Fund Code 161 – Service Center Fund

2. Fund Code 165 – Service Center Support

Moneys generated by a Research Service Center Department of the University are considered appropriated and therefore, are subject to the expenditure guidelines for appropriations set forth by the State Department of Financial Services, Federal Uniform Guidance or University Directives. These units recover the costs of their operations through internal services. Expenditures must support the primary mission of the unit. The Auxiliary Accounting website provides more information.

CULTURAL CENTERS/BROADCASTING

This fund encompasses public service and cultural activities such as the Center for Performing Arts, the Florida Museum of Natural History, the Harn Museum, and public broadcasting units under the College of Journalism and Communications. Expenditures must support the primary mission of the unit. An example of Cultural Centers/Broadcasting fund codes is:

1. Fund Code 168 – Cultural Centers/Broadcasting

EXTERNAL BUSINESS ACTIVITIES

This fund encompasses business enterprises providing services primarily to external parties and in support of the mission of the University. Enterprises include testing labs and other professional services. Expenditures must support the primary mission of the unit. An example of External Business Activity fund codes is:

1. Fund Code 169 – External Business Activities

Other UF Funds

Typically, use of these moneys should follow the same guidelines as Auxiliary funds, unless other specific donor restrictions apply.

1. Fund Code 179 – Other Miscellaneous Donations – This fund does not have a standard funding source – It is used primarily for non-research miscellaneous donations and revenues
2. Fund Code 279 – Restricted Incidental Fund – Incidental revenues that are restricted to a specific department or purpose
3. Fund Codes 181 (Research), 182 (Extension) – IFAS Incidental Funds – Used for revenues from the sale of certain goods and services – Example would be soil testing by the Department of Soil and Water Sciences
4. Fund Codes 185,186 – Health Science Center Trust Funds – Used for revenues from the sale of certain goods and services. Fund 185 is used by all 6 Colleges.  Fund 186 is for Veterinary Medicine Teaching Hospital use
5. Fund Code 192 – Concession funds – These are commissions from UF’s vending contracts for beverages, food, and games.  These funds are used for discretionary purchases that support a University business purposes that generally are not made with state or grant funds
6. Fund Codes 5xx – Capital Projects – Funds used for Capital Projects may include state appropriations, funds managed through UF’s Capital Improvement Trust Fund (CITF), and/or Public Education Capital Outlay (PECO) funds.  Capital projects are managed by UF Facilities and Planning Office or IFAS Facilities.  The Construction Accounting Department serves as the chief budgetary and fiscal office for all construction projects undertaken by UF
7. Fund Code 191 – Student Government Funds – These are student activity and services fees collected by the University Bursar as a component of tuition.  These funds are administrated by the Division of Student Affairs.  Use is allocated by the Student Senate to the needs of student groups
8. Fund Code 162 – Materials & Supply Fee – These funds are also collected as fees with tuition.  Use is for classroom material & supplies consumed each semester
9. Fund 163 – Equipment Usage Fee – These funds are also collected as fees with tuition. Use is for replacement costs of equipment over time
10. Fund Codes 131, 251, 901 – Scholarship Funds – These fund codes receive funding that includes UF Departments, the State of Florida, federal and other outside agencies, private donations, UF Foundation and interest earned on investments
11. Fund Code 301 – Federal Loan Fund (Perkins Loans) – Revolving fund receives funding from federal government and UF matching
12. Fund Code 331 – Regular Loan Fund – Revolving fund receives funding from private donations and UF Foundation

Additional references, including account use permitted by fund, are available under the Chartfield section of the Finance & Accounting website.

Reason for Policy

To ensure all expenditures follow the requirements, restrictions, and regulations of the funding source.

Who must comply?

All University Departments.

Procedures

Check for items that are never allowed, regardless of UF funding source.

These include:

1. First class travel
2. Private Club memberships
3. Lavish or extravagant entertainment, including service of alcohol
4. Items for personal benefit to an individual (other than incidental benefit) – Examples of items that are not be permitted: personal fans or heaters, wall hangings or decorations for personal offices, microwaves for personal use, personal fines or fees of an employee, etc.
5. Personal or other expenses not having a direct business purpose associated with the mission of the College and University (e.g., Gift cards/certificates or monetary gifts, consistent with UF Gift/Gift Card policy)
6. Consulting fees to any state employee
7. Petty cash funds unless approved by UF’s Controller with approved controls and guidelines
8. Contributions to political organizations (except if part of a membership fee)

Some colleges may have additional restrictions or guidelines governing how FPP funds may be used.

Maintain written documentation for all disbursements and expenditures for auditing purposes.

Last Reviewed

Last reviewed on 03/20/2024

Resources

Account Use by Fund

Program Codes Use By Fund

Required Chartfield by Fund

Toolkits

UF HR Toolkit – Chartfields

UF HR Toolkit – Paying Suppliers (For DSOs)

Contacts

Disbursements: (352) 392-1241

General Accounting & Financial Reporting: (352) 392-1326

Procurement: (352) 392-1331

UF Help Desk: (352) 392-HELP

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