What type of Transfer is needed?
Determining which document to use

This is a common area of confusion.  The Budget FAIT Presentation, Case #5 (page 64), does a good job of outlining a typical situation and explaining which document to use.  There are 4 documents that are used for transferring budget, revenue or expense.

1. A1 Budget Adjustment
2. T1 Fund Transfer (this usually requires an A1 Budget Adjustment, as well)
3. Transfer Voucher
4. Foundation Transfer

1.  A1 Budget Adjustment Form
A Budget Transfer uses the A1 Budget Adjustment Form (online A1).  If funds are needed to process a purchase order or because the budget in one account will not cover expected expenses, the A1 Budget Adjustment Form is the correct document to use. This document moves budget funds from one account to another or from one subcode to another within the same account.

2.  T1 Fund Transfer
When the debit and credit accounts have different map codes, a T1 Fund Transfer must be completed.  Use screen 6 in FRS to check the Map codes for each of the accounts.  If this is the case, process an online A1 with a note that the map codes are different and the Budget Office will process the T1.
NOTE: All T1 Forms must be completed in one of the following offices, Budget, Accounting or Plant Funds. The Accounting and Budget Offices review every T1 Form.

Fund Transfer
A Fund Transfer moves existing funds from one general ledger to another, using the subcodes 4091 and 4092 for fund additions and subcodes 5091 and 5092 for fund deductions. Fund Transfers are implemented when an area receives an actual check or when funds are provided to an area with no expectation of a reciprocating service.

A Fund Transfer is used when:

• Department A provides funds for a specific purpose to Department B. The purpose does not include a service rendered, for example Department A covers a deficit for Department B; General University Fees collected are allocated to the appropriate units.
• A check is received that is not earned revenue, for example, a University employee works for another institution/corporation and is paid from University funds. The University is subsequently reimbursed for salary and fringe benefits from the institution/corporation. Treat this as a fund addition.

If the transfer is between the Operating Fund and the Research Fund or Local Funds, the transfer must be completed by the State Comptroller as well as at the University. The Accounting Office will process the State transfer.

3.  Transfer Vouchers
Transfer Vouchers are used to correct account coding or to bill a department for services rendered. The revenue or expense transaction exists and has been recorded in FRS.

• To make a correction, the transfer voucher moves the original transaction to a different account. This is the only time that personal services would be seen on a transfer voucher.
• For billings, the service department charges the client department account using an expense subcode (e.g. 2990). The service department may either recognize revenue in their account by using subcode 0690 or 0790 OR may credit their account using the same expense subcode (e.g. 2990).

The key is that the revenue 0690/0790 or expense exists in FRS before the transfer voucher is processed.

4.  Foundation Transfers
A check is received from the Foundation. For Ledger 2 accounts, Accounting deposits the check to 101886-0351 and notifies the Budget Office. Budget will confirm the deposit and increase the budget for the FRS account identified by the amount of the deposit. For Ledger 3 or 4 accounts, the check is deposited using subcode 0351. For Ledger 5 or 6 accounts, the check is deposited to the general ledger using subcode 4351.

Updated: 7/21/08