kuali transfer of funds-finalkuali.colostate.edu/training/kfstransfersinstructions.pdf1 kuali...

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Kuali Transfer of Funds

Overview

The Transfer of Funds (TF) document is used to transfer funds (cash) between accounts. The TF

document can be used by CSU areas to fulfill a funding commitment such as transferring cash from one

account to another. The TF document is also used by Business & Financial Services to record bond

payments.

There are two kinds of transfers: non-mandatory and mandatory.

• Non-Mandatory transfers are allocations of unrestricted cash between or across subfund

groups, which are not required by any external agreements. These transfers are most

commonly used throughout the University. An example of this type of transfer is moving funds

to a plant fund account for capital construction.

• Mandatory transfers are required to meet contractual agreements. An example of this type of

transfer is moving student fees to retire or pay for fund group for principal and interest

payments on bonds.

For financial statement purposes, the transfer “IN” is recorded as revenue and the transfer “OUT” is

recorded as an expense. Transfers within CSU zero out or cancel each other for financial statement

purposes, and net cash is not affected.

Types of Transfers

Non-Mandatory

Non-Mandatory transfers are made at the discretion of CSU personnel managing the account.

There are two types of non-mandatory transfers:

• Transfer of funds between or across subfund groups to provide funds for special purposes not

related to construction.

• Transfer of funds to Plant Funds for construction projects.

Entries will move cash and will be shown on the financial reports after the operating expenses as “Net

Assets including Transfers”.

The following object codes are used to transfer funds:

Object code: 9900 Object Type: Income (TO)

Object code: 9902 Object Type: Expense (FROM)

Documents used for Transfers:

Transferring to AND from Unrestricted Appropriated Accounts: When transferring to and from

unrestricted appropriated accounts such as EG, PVM, EXPSTA, RARSP, EXTEN, CSFS (13, 14, 15, 16, 17

and 19) two possible scenarios exist:

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• Transferring budget between one unrestricted appropriated account to another, within the

same subfund.

TO: EG (13) account FROM: EG (13) account ONLY use a Budget Adjustment (BA)

• Transferring budget between one unrestricted appropriated account to another, across

different subfunds.

TO: EXTEN (17) account (9900) FROM: EG (13) account (9902) Use a TF document

TO: EXTEN (17) account (6200) TO: EXTEN (17) account (4374) Use a BA document

Transferring to OR from Unrestricted Appropriated Accounts and Non-Appropriated Accounts: In all

cases, a TF document is required to move cash. However, when the transfer of funds object code 9900 is

used in conjunction with an appropriated account, the end user will also need to complete a BA

document to provide spending authority in that account.

• A transfer is needed from an EG account to help fund a conference for the first year of activity.

Use the following documents.

TO: CONFER (26) account (9900) FROM: EG (13) account (9902) Use ONLY a TF document

→ The reason a BA is not needed is because the EG account uses an expense transfer object

code (9902) which will reduce budget.

• When the conference is completed, funds are transferred back to the EG account; which will

require both the TF and the BA document as shown below.

TO: EG (13) account (9900) FROM: CONFER (26) account (9902) Use a TF document

TO: EG (13) account (6600) TO: EG (13) account (4374) Use a BA document

→ In the above transfer, actual revenue is recorded in the EG (13) unrestricted appropriated

account using object code 9900; therefore, a BA document is also needed.

Transferring WITHIN Special Course Fee Accounts – subfund COURSE: Because Special Course Fee and

Technology Fee accounts collect student funds and are considered Appropriated funds, specific

guidance is required when transferring within these funds.

If transferring across divisions, a TF document is needed to transfer the cash to the other division. These

types of transfers, in most cases, involve Technology fees only. However, since these types of accounts

are appropriated and will receive revenue in object code 9900, a BA document also needs to be

completed.

• Technology fees from various colleges support an area in another college on campus. Each

college would like to transfer a part of their technology fee to the supporting area.

TO: COURSE (25) account (9900) FROM: COURSE (25) account (9902) Use a TF document

TO: COURSE (25) account (6600) TO: COURSE (25) account (4374) Use a BA document

→ In the above transfer, actual revenue is recorded in the COURSE (25) unrestricted

appropriated account using object code 9900; therefore, a BA document is also needed.

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If transferring within the same division but to specific sub accounts, a BA document is needed.

However, a Distribution of Income and Expense (DI) document is needed to distribute the funds to the

correct sub account.

• Funds distributed to a College’s main technology account should be further broken down into

sub accounts which are labeled by each department/organization.

TO: COURSE (25) account (4366) sub account 1472

COURSE (25) account (4366) sub account 1474

COURSE (25) account (4366) sub account 1475

FROM: COURSE (25) account (4366) Use a DI document

TO: COURSE (25) account (4366) TO: COURSE (25) account (6600) Use a BA document

A TF document is not used because movement of funds is within the same account, but only to sub

accounts. Budget that was originally needed in the main account has moved to the sub accounts

therefore a BA document is needed. To move actual funds, a DI document is used to move the funds to

the correct sub accounts.

KFS Steps

Enter the transaction using the Transfer of Funds document in KFS from the Main Menu.

Complete all * fields (these are required fields). Provide an explanation of the transfer, such as

“Transferring funds for the completion of a project from account 13xxxxx to 2xxxxxx.”

Save the document and view the General Ledger Pending Entries tab to make sure the transfer is

moving the funds appropriately.

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When all fields are complete and the General Ledger Pending Entries are reviewed,the entry can be

submitted; and if needed, an Ad Hoc Recipient can be added.

• The “D” under column D/C indicates a Debit (9902 = expense);increasing expenses and

decreasing cash (Credit to object code 1100).

• The “C” under column D/C indicates a Credit (9900 = revenue); increasing the funds in

2362500-9900 and increasing cash (Debit to object code 1100).

Important: Always make sure there is adequate cash in the debit (From) account (the account

providing the funds) to cover the transfer.

Plant Fund Transfers

Plant Fund Transfers in KFS are done at the ‘Main Menu’, ‘Transactions’, ‘Transfer of Funds’, (see page 2

for the KFS Main Menu page).

Plant Fund Transfers move cash from an Organization/Department account to a Plant Fund account.

Complete all * fields (these are required fields). Provide an explanation of the transfer, such as

“transferring funds for the completion of a project from account 13xxxxx to 77xxxxx.”

The object codes to use are listed below



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Save the document and view the General Ledger Pending Entries tab to make sure the transfer is

moving the funds appropriately. A sample of this entry is shown on the below.

Note: Facilities Management initiates and controls the return of excess or unused funds from the Plant

Fund accounts, this same entry would apply. The “FROM” would use object code 9904 and the receiving

department “TO” would use object code 9905. When funds are returned, the original document

number should be referenced in the “Org Ref Id” field. The funds should be returned to the funding

account using a TF document (and a BA to increase budget authority, if unrestricted appropriated

accounts are involved).

Below is an example of TF when returning unused funds from a Plant Fund transfer.

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Below is an example of returning unused funds from a Plant Fund transfer when an unrestricted

appropriated account is used.

Not only is the TF needed, but a BA is needed as well to increase spending authority on the EG account,

see below for an example.

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Mandatory

Mandatory transfers are those transfers required by a non–CSU agency, i.e. bond agreements, CCHE (CO

Commission of Higher Education) fund. Currently these types of transfers will only be made by

Business and Financial Services to transfer funds for bond interest and principal payments from

operating accounts to the plant fund accounts from which the bond interest and principal payments are

disbursed.

Bond Principal and Interest use object codes 9801 and 9806.



Process overview for TF Document

• There must be at least one accounting line in the FROM section and one accounting line in the

TO section.

• The total in the FROM section must equal the total in the TO section in the Accounting Lines tab.

• $0 accounting line amounts are not allowed.

• Negative amounts are not allowed (unless it is an Error Correction TF).

• The KFS automatically generates cash object code, (1100) offset entries.

Routing

The document will route to:

• The Fiscal Officer for each account

• Org/Dept

• Special approvals based on subfund

The document status becomes “Final” when the required approvals are obtained and the transaction is

posted to the account.

Questions?

Campus Services http://busfin.colostate.edu/cs.aspx

Budget Office http://www.budgets.colostate.edu/