FUND 20 RULES
Fund 20 resources are sacred and expenditures are to be made only for University purposes and not for personal benefit. Fund 20 is designed to be used by individual faculty only, with only one fund 20 account (called an “operating unit” in the accounting system) per faculty. However, an account need not be created for each and every faculty; A faculty may have a Fund 20 account and maintain other accounts where he/she is the manager/contact (although it is hoped that consolidation will occur);
Specific rules include:
Fund 20 MAY be used to:
- Hire students and part-time personnel within normal BYU hiring practices;
- Receive funds transferred in from funds 13, 19, 23, and spendable income associated with a fund 35 quasi-endowment (fund 31) using the 9250/9260 account codes. In rare instances, transferring other endowments spendable income may be appropriate based on spending restrictions. A reporting solution will show amounts transferred in via account 9250 as revenue;
- Receive funds from Fund 11 via a budget adjustment through the Budget Office with cash being trued up each month end;
- Receive fund 11 account 1625 Equipment budget, but the budget must be used for account 6250 purchases only (because no capital equipment is to be purchased in fund 20);
- Receive 1% carryover from Fund 11 via a budget adjustment, but it must be moved into a specific budget category.
Fund 20 MAY NOT be used to:
- Hire full-time personnel without the approval of the Board; existing non-fund 11 personnel moved into this fund do not need Board approval;
- Receive a position nor related funding for Fund 11, Church-appropriated full- time personnel;
- Transfer funds out without the approval of the Budget Office;
- 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 account 6600 - thus no such transfers in will be allowed;
- Receive income from any donor or other external sources. Instead such income could be deposited to a college donor fund 23, or other account where the income has previously been recorded, and then transfer using the 9250/9260 account codes. This transfer, however, will only be made if it complies with use stipulations;
- Carry any deficits. If a Fund 20 deficit occurs, you will be contacted by Financial Services to discuss how you plan to clear the deficit.
Other Fund 20 Characteristics:
- Occasionally, special awards or stipends are provided to faculty through their fund 20 accounts which, although added discretion is allowed, must only be used for valid university purposes;
- Budget transferred into a Fund 20 account from Fund 11 (coming from specific budget categories) does not lose specific restrictions regardless of the overall balance available;
- Fund 11 Benefit budget will be added consistent with the related Fund 11 student or part-time staff wage budget;
- Interest will be paid/charged on these funds monthly;
- There will be no fund 11-type carryovers (such as 1%, equipment, etc.) for fund 11 amounts added via a budget adjustment. In fact, any unused Fund 11 budgets will be moved back to Fund 11 at the end of each year by the Budget Office. The only exception is fund 11 research budget in accounts 0030 and 0035. These research-type fund 11 amounts will be carried over in fund 20 if unused.
Last updated: 04/01/2010