Fund Accounting and Spending Authority
Effective Date: Sept. 24, 2026 (see revision log for what changed on this date)
Guideline
CU Boulder 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.
The method for determining spending authority depends on the fund type:
- Budget-based funds (e.g., General Fund) derive spending authority from an approved budget.
- Available balance-based funds (e.g., Auxiliary, Gift, and Reserve/Plant Funds) derive spending authority from available balances.
- Award-based funds (Sponsored Projects) derive spending authority from the remaining award budget within the period of performance.
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.
Purpose
This section explains fund accounting at CU Boulder and describes how to determine spending authority for budget-based and cash-based funds.
Fund Accounting
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, Board of Regents policy, and university policy.
Once resources are recorded in the appropriate fund, expenditures must be consistent with the allowable uses and restrictions associated with that fund.
Common Fund Types
State-appropriated funds that support the university's core mission.
Purpose: Supports the university's primary mission of instruction and related support services.
Typical Uses:
- Academic instruction
- Academic support
- Student services
- Institutional support
- Facilities operations and maintenance
- Scholarships and fellowships
Funding Source: State appropriations, tuition revenue, and other general operating revenues.
Purpose: Supports the university's research mission through reimbursement of indirect costs from sponsored projects.
Typical Uses:
- Research administration
- Research support activities
- Costs funded through ICR and DAICR distributions
Funding Source: Facilities and administrative (F&A) cost reimbursements from grants and contracts.
Purpose: Used to account for cost share expenditures of the general fund.
Typical Uses:
- Expenses are incurred to accomplish the sponsor requirements of the associated sponsored projects.
Funding Source: Are funded with cash transfers from Fund 10, general fund.
Supports self-funded activities financed by the revenue they generate.
Additional Fund Types
Purpose: Accounts for cost-share expenditures associated with sponsored projects supported by auxiliary operations.
Typical Uses:
- Sponsor-required cost sharing
- Matching fund expenditures
- Non-sponsored portion of project costs
Funding Source: Cash transfers from auxiliary fund sources.
Purpose: Accounts for revenue-generating activities that are exempt from TABOR reporting but are not classified as TABOR enterprises or internal service centers.
Typical Uses:
- Royalty revenue
- Residual transfers from fixed-price sponsored projects (Fund 30)
- Other exempt departmental revenues
Funding Source: Royalties, sponsored project residuals, and other exempt revenue sources.
Purpose: Accounts for activities designated as Internal Service Centers (ISCs), which provide goods or services to university departments.
Typical Uses:
- Internal sales activities
- Service centers or Core service activities
Rate-Based Service Activities (RBSAs)
Funding Source: Charges to internal and external customers based on approved service rates.
Special Considerations:
- Revenues are generally subject to TABOR reporting.
- Sponsored project-related revenue must comply with federal Uniform Guidance requirements.
- Also used for Rate-Based Service Activities (RBSAs), where goods or services are provided at established rates to internal and external customers.
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.
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.
Typical Uses:
- Self-funded departmental operations
- Workshops and conferences
- Rate-Based Service Activities (RBSAs)
- Miscellaneous revenue-generating activities
Funding Source: Departmental revenues, fees, sales, and service charges.
Special Considerations:
- Revenues are generally subject to TABOR reporting.
- Sponsored project-related revenue must comply with federal Uniform Guidance requirements.
- Also used for Rate-Based Service Activities (RBSAs), where goods or services are provided at established rates to internal and external customers.
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.
Supports activities funded through grants, contracts, and other sponsored agreements.
Governed By:
- Sponsor terms and conditions
- Approved award budgets
- Federal and sponsor regulations
Typical Uses:
- Research projects
- Training grants
- Sponsored service agreements
Funding Source: External sponsors, including federal agencies, foundations, and private organizations.
Used to account for cost share expenditures with the restriction
Governed By:
- Donor intent
- Restrictions places on the use of the gifts
Typical Uses:
- Sponsored agreements
Funding Source: Cash transfers from gift sources.
Supports activities funded through charitable contributions.
Governed By:
- Donor intent
- Gift agreements
- University gift policies
Typical Uses:
- Scholarships
- Program support
- Faculty support
- Research and outreach activities
Funding Source: Donor gifts
A fund to account for the Office of Advancement (Development) to expend funds provided to accomplish the fundraising mission.
Governed By:
- Fundraising mission
Typical Uses:
- Development activities
Funding Source: Cash transfers from the CU System Development office.
Used to set aside resources for future capital needs, major equipment purchases, and planned asset replacement.
Fund 72: General Fund Reserves
Source: Transfers from General Funds (1x funds)
Typical Uses:
- Future capital projects
- Major equipment replacement
- Strategic investments
Fund 78: Auxiliary Fund Reserves
Source: Transfers from Auxiliary Funds (2x funds)
Typical Uses:
- Auxiliary facility improvements
- Equipment replacement
- Long-term auxiliary capital planning
Fund Types Quick Reference Guide
Fund | Name | Primary Purpose |
|---|---|---|
10 | General Operations | Instruction and university operations |
11 | Indirect Cost Recovery | Research support |
12 | Cost Share Unrestricted Gen Op | Account for Cost Share expenditures of the general fund |
22 | Cost Share Auxiliary Enterprise | Account For Cost Share expenditures funded with Auxiliary or Self-Funded sources or activities |
26 | Auxiliary Non-Enterprise | TABOR-exempt departmental revenue |
28 | Internal Service Center | Internal fee-for-service operations |
29 | Other Self-Funded Operations | Department-generated revenue |
32 | Cost Share Gift Fund | Cost share expenditures with the restriction |
30/31/33 | Sponsored Projects | Grants and contracts |
34 | Gift Funds | Donor-funded activities |
36 | Development Funds | Accomplish fundraising mission |
72 | General Fund Reserves | Future capital needs from 1x funds |
78 | Auxiliary Fund Reserves | Future capital needs from 2x funds |
Determining Spending Authority
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.
Budget-Based Funds
General Fund speedtypes operate using an approved budget. Spending authority is determined by the remaining available budget.
Available Spending Authority
Continuing Budget
+ Temporary Budget
− Expenditures
+/− Transfers
− Encumbrances
= Available Budget Balance
Operate using cash transfers. Spending authority is determined by the remaining available balance.
Available Spending Authority
Transfers in
− Transfers out
− Expenditures
− Encumbrances
= Available Budget Balance
Available Balance-Based Funds
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.
Spending authority is based on:
Net Position = Assets − Liabilities
When evaluating available spending authority, units should also consider:
- Outstanding encumbrances
- Future operating needs
- Planned commitments
- General Administrative Infrastructure Recharge (GAIR)
Sponsored projects are managed against the total award budget rather than an annual fiscal year budget.
Available Spending Authority
Award Budget
− Actual Expenses and Transfers
= Available Project Balance
Key considerations:
- Uses life-of-project totals rather than fiscal year totals.
- Sponsor restrictions may apply.
- Spending may be limited by:
- Budget periods
- Participant support costs
- Equipment purchases
- Other sponsor-specific restrictions
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.
Available Spending Authority
Net Position = Assets − Liabilities
Spending authority is determined by combining the campus fund balance with available CU Foundation funds.
Available Spending Authority
Net Position = Assets − Liabilities
+ Available CU Foundation Balance
= Available Project Balance
For endowment gift funds:
- Only the available spending distribution is included.
- The endowment principal is not available for spending and is therefore excluded from the calculation.
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.
Available Spending Authority
The cash transferred in from the system development office is converted to a Budget plan:
Net Position = Assets − Liabilities
Units should also consider future operating needs, planned commitments, and the General Administrative Infrastructure Recharge (GAIR) when evaluating available spending authority.
Available Spending Authority
Net Position = Assets − Liabilities
Determining Spending Authority Quick Reference Guide:
Fund Type | Spending Authority Calculation | Primary Report | CU Data Location |
|---|---|---|---|
General Fund (10 & 11) | Budget-Expenses - Transfers-Encumbrances | Operating Summary | CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARY |
Cost Share Unrestricted Gen Op (12) | Transfers in – Transfers out – Expenses - Encumbrances | Operating Summary
| CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARY |
Auxiliary (2x) | Net Position (Assets-Liabilities) | Operating Summary
| CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARY |
Sponsored (30,31,33) | Award Budget – Actual Expenses + Transfers | m-Fin Award Report | CU – Data/Team Content/Finance/Project Reports/m-Fin AWARD |
Cost Share Gift Fund (32) | Net Position (Assets-Liabilities)
| Operating Summary
| CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARY |
Gift (34) | Net Position + Available CU Foundation Balance | Operating Summary
| CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARY |
Development Funds (36) | Net Position (Assets-Liabilities)
| Operating Summary
| CU – Data/Team Content/Finance/m-Fin OPERATING SUMMARY |
Plant/Reserve (72&78) | Net Position (Assets-Liabilities)
| Balance Sheet Summary Report | CU – Data/Team Content/Finance/Project Reports/m-Fin BALANCE SHEET SUMMARY
|
CU Data Report Tips:
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.
The 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.
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).
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).
- Debit (positive) Cash and credit (negative) Net Position end balances indicate a positive balance.
- Credit (negative) Cash and debit (positive) Net Position end balances indicate a deficit balance.
- Fund 72 Reserve Speedtypes are linked to General Fund 10 Speedtypes.
- Fund 78 Reserve Speedtypes are linked to Aux Fund 2x Speedtypes.
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 Controller's Office.
Revision Log
- September 24, 2026: Original publication