Fund Accounting and Spending Authority

Effective Date: Sept. 24, 2026 (see revision log for what changed on this date)

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Guideline

CU °Ç¸ç³Ô¹Ï uses fund accounting to classify financial resources according to their source, purpose, and any applicable legal, contractual, donor, sponsor, or institutional restrictions. Proper fund classification helps ensure university resources are used only for allowable purposes.Ìý

The method for determining spending authority depends on the fund type:Ìý

  • Budget-based funds (e.g., General Fund) derive spending authority from an approved budget.Ìý
  • Available balance-based funds (e.g., Auxiliary, Gift, and Reserve/Plant Funds) derive spending authority from available balances.Ìý
  • Award-based funds (Sponsored Projects) derive spending authority from the remaining award budget within the period of performance.Ìý

Units are responsible for using the appropriate financial reports to determine available spending authority and should consult Budget & Fiscal Planning or the Campus Controller's Office when clarification is needed.

PurposeÌý

This section explains fund accounting at CU °Ç¸ç³Ô¹Ï and describes how to determine spending authority for budget-based and cash-based funds.Ìý

Fund AccountingÌý

Fund accounting is a system used to account for financial resources according to their source, purpose, and any associated restrictions. Each fund represents resources that may only be used for particular purposes or under specific conditions. Proper fund classification helps ensure expenditures comply with applicable laws, regulations, sponsor agreements, donor intent, , and university policy.Ìý

Once resources are recorded in the appropriate fund, expenditures must be consistent with the allowable uses and restrictions associated with that fund.Ìý

See the guidance in Chapter 13 of The Guide.

Common Fund TypesÌýÌýÌý

State-appropriated funds that support the university's core mission.Ìý

Purpose: Supports the university's primary mission of instruction and related support services.Ìý

Typical Uses:Ìý

  • Academic instructionÌý
  • Academic supportÌý
  • Student servicesÌý
  • Institutional supportÌý
  • Facilities operations and maintenanceÌý
  • Scholarships and fellowshipsÌý

Funding Source: State appropriations, tuition revenue, and other general operating revenues.Ìý

Purpose: Supports the university's research mission through reimbursement of indirect costs from sponsored projects.Ìý

Typical Uses:Ìý

  • Research administrationÌý
  • Research support activitiesÌý
  • Costs funded through ICR and DAICR distributionsÌý

Funding Source: Facilities and administrative (F&A) cost reimbursements from grants and contracts.Ìý

Purpose: Used to account for cost share expenditures of the general fund.ÌýÌý

Typical Uses:Ìý

  • Expenses are incurred to accomplish the sponsor requirements of the associated sponsored projects.ÌýÌý

Funding Source:Ìý Are funded with cash transfers from Fund 10, general fund.Ìý

Supports self-funded activities financed by the revenue they generate.Ìý

Purpose: Account for self-funded activities formally designated by the Board of Regents as TABOR Enterprises. A new entity cannot be added to this fund group without the Board of Regents formally designating that entity as a TABOR enterprise.Ìý

Typical Uses:ÌýÌý

  • Self-generated sales from customersÌý

Funding Source: Departmental self-generated sales to customers and cash transfers in.ÌýÌý

See the guidance in of The Guide Ìý(See Current Fund Section -Fund 20)Ìý

Purpose: Accounts for cost-share expenditures associated with sponsored projects supported by auxiliary operations.Ìý

Typical Uses:Ìý

  • Sponsor-required cost sharingÌý
  • Matching fund expendituresÌý
  • Non-sponsored portion of project costsÌý

Funding Source: Cash transfers from auxiliary fund sources.Ìý

Purpose: Accounts for revenue-generating activities that are exempt from TABOR reporting but are not classified as TABOR enterprises or internal service centers.Ìý

Typical Uses:Ìý

  • Royalty revenueÌý
  • Residual transfers from fixed-price sponsored projects (Fund 30)Ìý
  • Other exempt departmental revenuesÌý

Funding Source: Royalties, sponsored project residuals, and other exempt revenue sources.Ìý

Purpose: Accounts for activities designated as Internal Service Centers (ISCs), which provide goods or services to university departments.Ìý

Typical Uses:Ìý

  • Internal sales activitiesÌý
  • Service centers or Core service activitiesÌýÌý

  • Rate-Based Service Activities (RBSAs)Ìý

Funding Source: Charges to internal and external customers based on approved service rates.Ìý

Special Considerations:Ìý

  • Revenues are generally subject to TABOR reporting.Ìý
  • Sponsored project-related revenue must comply with federal Uniform Guidance requirements.Ìý
  • Also used for Rate-Based Service Activities (RBSAs), where goods or services are provided at established rates to internal and external customers.Ìý

  • A Rate-Based Service Activity (RBSA) is a self-supporting auxiliary that allows campus departments to leverage excess research capacity to sell goods and services to both internal and external customers. Unlike project and budget based sponsored research, RBSAs charge for services using a menu of standardized rates.Ìý

Purpose: Accounts for departmental revenue-generating activities that do not fit within other Fund 2x categories and serves as the default unrestricted current fund for departmental revenue.Ìý

Typical Uses:Ìý

  • Self-funded departmental operationsÌý
  • Workshops and conferencesÌý
  • Rate-Based Service Activities (RBSAs)Ìý
  • Miscellaneous revenue-generating activitiesÌý

Funding Source: Departmental revenues, fees, sales, and service charges.Ìý

Special Considerations:Ìý

  • Revenues are generally subject to TABOR reporting.Ìý
  • Sponsored project-related revenue must comply with federal Uniform Guidance requirements.Ìý
  • Also used for Rate-Based Service Activities (RBSAs), where goods or services are provided at established rates to internal and external customers.Ìý

  • A Rate-Based Service Activity (RBSA) is a self-supporting auxiliary that allows campus departments to leverage excess research capacity to sell goods and services to both internal and external customers. Unlike project and budget based sponsored research, RBSAs charge for services using a menu of standardized rates.ÌýÌýÌý

Supports activities funded through grants, contracts, and other sponsored agreements.Ìý

Governed By:Ìý

  • Sponsor terms and conditionsÌý
  • Approved award budgetsÌý
  • Federal and sponsor regulationsÌý

Typical Uses:Ìý

  • Research projectsÌý
  • Training grantsÌý
  • Sponsored service agreementsÌý

Funding Source: External sponsors, including federal agencies, foundations, and private organizations.Ìý

Used to account for cost share expenditures with the restrictionÌý

Governed By:Ìý

  • Donor intentÌý
  • Restrictions places on the use of the giftsÌýÌý

Typical Uses:Ìý

  • Sponsored agreementsÌýÌý

Funding Source: Cash transfers from gift sources.Ìý

Supports activities funded through charitable contributions.ÌýÌý

Governed By:Ìý

  • Donor intentÌý
  • Gift agreementsÌý
  • University gift policiesÌýÌý

Typical Uses:Ìý

  • ScholarshipsÌýÌý
  • Program supportÌý
  • Faculty supportÌý
  • Research and outreach activitiesÌý

Funding Source: Donor giftsÌýÌý

A fund to account for the Office of Advancement (Development) to expend funds provided to accomplish the fundraising mission.ÌýÌý

Governed By:Ìý

  • Fundraising missionÌýÌýÌý

Typical Uses:Ìý

  • Development activitiesÌý

Funding Source: Cash transfers from the CU System Development office.ÌýÌý

Used to set aside resources for future capital needs, major equipment purchases, and planned asset replacement.Ìý

Fund 72: General Fund ReservesÌý

Source: Transfers from General Funds (1x funds)Ìý

Typical Uses:Ìý

  • Future capital projectsÌý
  • Major equipment replacementÌý
  • Strategic investmentsÌý

Fund 78: Auxiliary Fund ReservesÌý

Source: Transfers from Auxiliary Funds (2x funds)Ìý

Typical Uses:Ìý

  • Auxiliary facility improvementsÌý
  • Equipment replacementÌý
  • Long-term auxiliary capital planningÌý

Fund Types Quick Reference GuideÌýÌý

FundÌý

NameÌý

Primary PurposeÌý

10Ìý

General OperationsÌý

Instruction and university operationsÌý

11Ìý

Indirect Cost RecoveryÌý

Research supportÌý

12Ìý

Cost Share Unrestricted Gen OpÌý

Account for Cost Share expenditures of the general fundÌý

20Auxiliary EnterprisesAccount for self-funded activities

22Ìý

Cost Share Auxiliary EnterpriseÌý

Account For Cost Share expenditures funded with Auxiliary or Self-Funded sources or activitiesÌý

26Ìý

Auxiliary Non-EnterpriseÌý

TABOR-exempt departmental revenueÌý

28Ìý

Internal Service CenterÌý

Internal fee-for-service operationsÌý

29Ìý

Other Self-Funded OperationsÌý

Department-generated revenueÌý

32Ìý

Cost Share Gift FundÌý

Cost share expenditures with the restrictionÌý

30/31/33Ìý

Sponsored ProjectsÌý

Grants and contractsÌý

34Ìý

Gift FundsÌý

Donor-funded activitiesÌý

36Ìý

Development FundsÌý

Accomplish fundraising missionÌýÌý

72Ìý

General Fund ReservesÌý

Future capital needs from 1x fundsÌý

78Ìý

Auxiliary Fund ReservesÌý

Future capital needs from 2x fundsÌý

Determining Spending AuthorityÌý

The method used to determine available spending authority depends on the fund type. Some funds operate from an approved budget, while others operate from available cash or net position.Ìý

How spending authority is determined

Budget-Based FundsÌý

General Fund speedtypes operate using an approved budget. Spending authority is determined by the remaining available budget.Ìý

Available Spending AuthorityÌý

Continuing Budget + Temporary Budget − Expenditures +/− Transfers − Encumbrances = Available Budget BalanceÌý

Operate using cash transfers. Spending authority is determined by the remaining available balance.Ìý

Available Spending AuthorityÌý

Transfers inÌý − Transfers out − Expenditures − Encumbrances = Available Budget BalanceÌý

Available Balance-Based FundsÌý

Available balance-based funds do not operate from an annual budget allocation. Instead, spending authority is generally determined using the available balance after considering outstanding encumbrances, planned commitments, and any applicable restrictions on the use of the funds.Ìý

Spending authority is based on:Ìý

Net Position = Assets − LiabilitiesÌý

When evaluating available spending authority, units should also consider:Ìý

  • Outstanding encumbrancesÌý
  • Future operating needsÌý
  • Planned commitmentsÌý
  • General Administrative Infrastructure Recharge (GAIR)Ìý

Sponsored projects are managed against the total award budget rather than an annual fiscal year budget.Ìý

Available Spending AuthorityÌý

Award Budget − Actual Expenses and Transfers = Available Project BalanceÌý

Key considerations:Ìý

  • Uses life-of-project totals rather than fiscal year totals.Ìý
  • Sponsor restrictions may apply.Ìý
  • Spending may be limited by:ÌýÌý
  • Budget periodsÌý
  • Participant support costsÌý
  • Equipment purchasesÌý
  • Other sponsor-specific restrictionsÌý

These funds do not receive an annual budget allocation. Spending authority is determined by the funds available after considering outstanding obligations, future commitments, and any restrictions on fund usage.Ìý

Available Spending AuthorityÌý

Net Position = Assets − LiabilitiesÌý

Spending authority is determined by combining the campus fund balance with available CU Foundation funds.Ìý

Available Spending AuthorityÌý

Net Position = Assets − Liabilities + Available CU Foundation Balance = Available Project BalanceÌý

For endowment gift funds:Ìý

  • Only the available spending distribution is included.Ìý
  • The endowment principal is not available for spending and is therefore excluded from the calculation.Ìý

Budget is used as a planning tool while true spending authority is based on net position after considering outstanding obligations, future commitments, and any restrictions on fund usage.Ìý

Available Spending AuthorityÌý

The cash transferred in from the system development office is converted to a Budget plan:Ìý

Net Position = Assets − LiabilitiesÌý

Units should also consider future operating needs, planned commitments, and the General Administrative Infrastructure Recharge (GAIR) when evaluating available spending authority.Ìý

Available Spending AuthorityÌý

Net Position = Assets − LiabilitiesÌý

Determining Spending Authority Quick Reference Guide:Ìý

Fund TypeÌý

Spending Authority CalculationÌý

Primary ReportÌý

CU Data LocationÌý

General Fund (10 & 11)Ìý

Budget-Expenses - Transfers-EncumbrancesÌý

Operating SummaryÌý

CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARYÌý

Cost ShareÌýUnrestricted Gen Op (12)Ìý

Transfers in – Transfers out – Expenses - EncumbrancesÌý

Operating SummaryÌý

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CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARYÌý

Auxiliary (2x)Ìý

Net Position (Assets-Liabilities)Ìý

Operating SummaryÌý

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CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARYÌý

Sponsored (30,31,33)Ìý

Award Budget – Actual Expenses + TransfersÌý

m-Fin Award ReportÌý

CU – Data/Team Content/Finance/Project Reports/m-Fin AWARDÌý

Cost Share Gift Fund (32)Ìý

Net Position (Assets-Liabilities)Ìý

Ìý

Operating SummaryÌý

Ìý

CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARYÌý

Gift (34)Ìý

Net Position + Available CU Foundation BalanceÌý

Operating SummaryÌý

Ìý

CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARYÌý

Development Funds (36)Ìý

Net Position (Assets-Liabilities)Ìý

Ìý

Operating SummaryÌý

Ìý

CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARYÌý

Plant/Reserve (72&78)Ìý

Net Position (Assets-Liabilities)Ìý

Ìý

Balance Sheet Summary ReportÌý

CU – Data/Team Content/Finance/Project Reports/m-Fin BALANCE SHEET SUMMARYÌý

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CU Data Report Tips:ÌýÌý

The Operating Summary report (CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARY) is useful in determining the balance available for one speedtype at a time.Ìý

ÌýThe Speedtype One-liner report (CU – Data/Team Content/Finance/m-Fin SPEEDTYPE ONE-LINER) is good for looking at a particular Org or Unit with multiple speedtypes. Ensure the Available Balance Extra checkbox is selected.Ìý

The m-Fin Award report (CU – Data/Team Content/Finance/Project Reports/m-Fin AWARD) shows total award and project budgets for a sponsored project (Funds 30, 31, 33).ÌýÌýÌý

The Balance Sheet Summary report (CU – Data/Team Content/Finance/Project Reports/m-Fin BALANCE SHEET SUMMARY) shows the current balance in Reserves/ Plant Funds speedtypes (also known as Funds 72 and 78, or Plant Funds).Ìý

  • Debit (positive) Cash and credit (negative) Net Position end balances indicate a positive balance.Ìý
  • Credit (negative) Cash and debit (positive) Net Position end balances indicate a deficit balance.Ìý
  • Fund 72 Reserve Speedtypes are linked to General Fund 10 Speedtypes.Ìý
  • Fund 78 Reserve Speedtypes are linked to Aux Fund 2x Speedtypes.Ìý

Note: Many additional m-Fin reports can assist with determining spending authority depending on the fund type and business needs. M-Fin reporting training resources are available through the .Ìý

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Revision Log

  • September 24, 2026: Original publication
  • October 2, 2026: Added Fund 20: Auxiliary Enterprises section