| A | B | |
|---|---|---|
1 | Overview of Cross Funds Transfer | |
2 | Role: Journal Entry Specialist and Approver | |
3 | Fund transfers are mandatory or non-mandatory movements of resources due to external or legal obligations or discretionary movement between Resource Responsibility Centers (RRCs), departments, or funds. Fund transfer Account values (6XXXXX) for fund transfers are used in pairs, reflecting the debit and credit impact on internal accounts. Transfers are typically done via a manual online journal in the General Ledger. The fund transfer matrix outlines the allowability of inter-fund transfers from one fund to another. The best practice is to avoid inter-fund transfers on current funds. Inter-fund transfers between current funds should only occur when it is impossible to match expenses with revenues. | |
4 | IMPORTANT CONSIDERATIONS | |
5 | ⚠️ | Non-mandatory inter-fund transfers that involve unrestricted and restricted funds are considered non-routine and should be processed on an exception basis. Due to restrictions placed on restricted funds and the need to maintain the integrity of these funds. These transfers make it challenging to match revenues to expenditures and complicate fund-specific management reporting. Chief Financial Manager (CFM) or designee approval is required. Evidence of approval from the CFM must be attached to the journal. See Processing, Documenting, and Approving Financial and Accounting Transactions policy. |
6 | ⚠️ | Subsidy of Internal Sales Organization (ISO) activity only. See Selling Goods and Services to University Departments policy. |
7 | ⚠️ | Fund transfer Account values are composed of six numbers beginning with a 6. Each number represents a specific bit of information. |
8 | WHAT DO THOSE NUMBERS MEAN? | |
9 | 6 | 6 = Fund transfer |
10 | 0 | 0 = Credit/transfer in, 1 = Debit/transfer out |
11 | 0 | 0 = No meaning |
12 | 2 | 2 = Movement of funds from RRC, dept, and/or fund |
13 | 0 | 0 = Movement of funds from RRC, dept, and/or fund |
14 | 1 | 1 = Movement of funds from RRC, dept, and/or fund |
15 | Controller's Office | Financial Training • controller.umn.edu/training | |
16 | Financial Helpline: 612-624-1617 or controller@umn.edu | |