Fund Transfer Procedures
Purpose
The following describes the process for preparing and submitting requests for cash transfers between funds within the University’s ERP system, Banner Finance. This function is administered by the Office of Controller.
Guidance for Transfers Between Funds
Fund transfers move cash between Banner funds and are restricted by fund type. For a description of fund types refer to the Overview of Banner Index Codes which is available on the Office of Controller website. Typical transfers are described below. Contact the university controller for specific questions regarding allowable fund transfers.
• Index 1 represents operating expenditure authority only and therefore cash cannot be transferred to or from Index 1. Instead, either adjust the authorized budget to the extent possible and/or transfer expenses to another Index.
• Index 2 represents self-support special revenue (dedicated) funding. Transfers can be made between Index 2 funds depending on the revenue source and intended use of funds. For example, course fee revenues should only be used for expenses (e.g., supplies and materials) related to the specific course. An indirect cost recovery fund, generated through sponsored programs, generally provides broad discretion for covering deficits.
• Index 3 represents service and auxiliary funds and cash is typically transferred for debt service payments. Fund transfers out of an auxiliary fund are prohibited when there are debt covenants related to net income production.
• Index 5 represents sponsored programs (grants and contracts) and fund transfers are typically initiated by the Grants Office moving cash to/from Index 2 for program deficits or surpluses; General Accounting coordinates these specific transfers.
• Index 6 and 7 represent state and local capital project funds for which transfers are prepared by the Office of Controller typically to cover facility improvement costs.
Timing
Departmental fiscal managers with budget authority should submit their budgeted fund transfer requests shortly after the annual operating budget is posted to Banner Finance – typically in late July. If there is insufficient cash to cover the budgeted fund transfer at the start of the fiscal year, move only the portion to meet current operating needs and move the remaining portion when available. Since the budgeting process takes place long before the fiscal year begins, adequate long-range planning is needed to accurately plan for budgeted fund transfers. Unbudgeted fund transfers may be submitted throughout the fiscal year to cover cash deficits when unplanned events arise such as revenue shortfalls or excess expenses that cannot be transferred to another budget.
Method
Prepare the online Banner Journal Voucher form using Banner account codes shown below.
Index Account Debit/Credit
XXXXX1 88300 Debit
XXXXX2 83300 Credit
This entry will move cash from Index XXXXX1 to XXXXX2 (where XXXXX represents the specified Banner Index Code). Fund transfers for debt service and capital improvements use different accounts – refer to the chart of accounts within Banner Finance.
Non-budgeted Fund Transfers
Additional budget transfer authority is needed for non-budgeted fund transfers. In addition, increased expenditure authority may be needed if it was not originally budgeted. For instructions, click here.
Approvals and Supporting Documentation
For budgeted fund transfers, agree the amounts to Banner Finance (budgeted by Index code). For unbudgeted/unplanned fund transfers, obtain approval from the dean/director who is responsible for managing the budget. Examples of supporting documentation include email communications, memorandum from the budget manager/academic administrator, or similar detail.
Document Routing
Online fund transfer requests are electronically routed according to type and necessary approvals. The requestor is electronically notified as each process step is completed.
