Financial Administration

Program and Sub-Program Codes and Definitions - Attach 3

ATTACHMENT 3


Transfers

Mandatory and nonmandatory transfers are distinguished from expenditures using the criteria defined in this attachment.

Mandatory Transfers

This category should include transfers from the Current Funds group to other fund groups (as defined in section 340 of NACUBO's Financial Accounting and Reporting Manual) arising out of:

  1. binding legal agreements related to the financing of educational plant, such as amounts for debt retirement, interest, and required provisions for renewals and replacements of plant, not financed from other sources; and,

  2. grant agreements with agencies with agencies of the federal government, donors, and other organizations to match gifts and grants to loan and other funds.

Mandatory transfers may be required to be made from either unrestricted or restricted current funds.

The mandatory transfers includes the following sub-programs:

Provision for Debt Service on Educational Plant--

Includes mandatory debt service provisions relating to academic buildings, including (1) amounts for debt retirement and interest and (2) required provisions for renewals and replacements, to the extent not financed from other sources.

Loan Fund Matching Grants--

Includes mandatory transfers to loan funds required to match outside gifts or grants, usually from the U.S. government.

Other Mandatory Transfers--

Includes all mandatory transfers not included in the above subcategories.

Nonmandatory Transfers

This category should include those transfers from the Current Funds group to other fund groups made at the discretion of the Board of Regents to serve a variety of objectives, such as additions to loan funds, additions to quasi-endowment funds, general or specific plant additions, voluntary renewals and replacements of plant, and prepayments on debt principal.