Fund FD04 (Fund 20) Rules

Fund FD04 resources are sacred, and expenditures are to be made only for University purposes and not for personal benefit. Fund FD04 is designed to be used by individual faculty only, with only one fund FD04 worktag (called an “Cost Center” or “Activity” in the accounting system) per faculty member. However, an worktag need not be created for each and every faculty; a faculty may have a Fund FD04 account and maintain other accounts where he/she is the manager/contact (although it is hoped that consolidation will occur).

Specific rules include:

Fund FD04 MAY be used to:

• Hire students and part-time personnel within normal BYU hiring practices;
• · Receive funds transferred in from funds FD02, FD03, and FD20 and the spendable portion associated with a fund FD26 quasi-endowment using the ledger account 9250:Funds transfer. In rare instances, transferring other endowments spendable income may be appropriate based on spending restrictions.
• · Receive funds from Fund FD01 via a budget adjustment through the Budget Office.
• · Receive Fund FD01 ledger account 1625: Capital Equipment, but the budget must be used for ledger account 6900 purchases only (because no capital equipment is to be purchased in Fund FD04).
• · Receive 1% carryover from Fund FD01 via a budget adjustment, but it must be moved into a specific budget category.

Fund FD04 MAY NOT be used to:

• · Hire full-time personnel without the approval of the Board; existing non-fund FD01 personnel moved into this fund do not need Board approval.
• · Receive a position nor related funding for Fund FD01, Church-appropriated full-time personnel.
• · Record any balance sheet transactions other than cash and accounts payable. This means no inventories, capital equipment, etc. may be purchased. If capital equipment needs to be purchased, funds will need to be transferred back to their origin and the purchase made there.
• · Purchase access equipment normally acquired in Fund FD01.
• · Receive income from any donor or other external sources. Instead, such income could be deposited to a college donor fund FD20, or other account where the income has previously been recorded, and then transfer using 9250: Funds transfer. This transfer, however, will only be made if it complies with use stipulations.
• · Carry any deficits.

Other Fund FD04 Characteristics:

• · Occasionally, special awards or stipends are provided to faculty through their fund FD04 Activity which, although added discretion is allowed, must only be used for valid university purposes.
• · Budget transferred into Fund FD04 Activity from fund FD01 students or part-time staff wage budget.
• · Interest will be paid/charged on these funds monthly.
• Interest will be paid/charged on these funds monthly;
• · There will be no fund FD01- type carryovers (such as 1%, equipment, etc.) for fund FD01 amounts added via a budget adjustment. In fact, any unused fund FD01 budget will be moved back to fund FD01 at the end of each year by the Budget Office. The only exception is fund FD01 research budget in Accounts 0030 Budget unallocated and 0035 Research Carryover. These research-type fund FD01 amounts will be carried over in fund FD04 if unused when appropriate.

Last updated: 12/27/2024