Cash Transfer Journal Entries

Procedure

Cash Transfer Journal Entries must comply with the University's Fund Transfer Rules. The Fund Transfer Rules tables show the rules for cash transfers between funds at each campus. Since each campus has its own table, you must check the rules for each campus involved in a transfer prior to approving the transfer. 

Here’s how a cash transfer works:

Cash transfer journals must contain only lines with transfer Accounts (Accounts that begin with 99). Each transfer involves a pair of lines (two lines). You can have more than one pair (more than one transfer) in a single journal

Each transfer must have one “out” Account and one “in” Account. The third digit of the Account identifies this.

• 992xxx (mandatory) and 997xxx (voluntary) with a debit amount (e.g., $500) denote transfer-out Accounts: these Accounts identify the FOPPS giving up the cash.
• 990xxx (mandatory) and 995xxx (voluntary) with a credit amount (e.g., -$500) denote transfer-in Accounts: these Accounts identify the FOPPS receiving the cash.
• A 992xxx Account must transfer to a 990xxx Account while a 997xxx Account must transfer to a 995xxx Account.

The fourth digit of the Account identifies if the cash transfer is within a campus or between campuses.

• 99x100 identifies cash transfers within a campus.
• 99x200 identifies cash transfers between campuses.

The cash transfer journal edit is launched when you run the Edit process – not when you click Save. This lets you begin a journal and finish it later. It also allows for a particular journal to be overridden in cases of exception or transfer error correction. The cash transfer journal edit applies only to ACTUALS journals.

SPECIAL NOTICE to FOPPS with Auxiliary Enterprise Attributes of PAA, PAB, PAD, PAH, PAM, PAP, PAR, PAS, PAU, PRL, PRR, POK, POO, POT, and POY:

• Colorado Revised Statute 23-5-103(3) prohibits auxiliary facilities whose net income is pledged to revenue bonds, from making cash transfers to any entity whose net income is NOT cross-pledged to revenue bonds. 
• The units listed above are not allowed to make cash transfers to any FOPPS in the General Fund, to make cash transfers to any FOPPS in the Auxiliary Fund whose net income is not pledged to revenue bonds, etc.

Support Model

Departments transfer current fund cash to non-current funds to fund programs such as construction, renewal and replacement (R&R), debt, etc. Transfers from current funds to current funds are usually to support other programs. The following models should be used for current fund to current fund support.

General Fund Support

Some campuses only allocate budget to Fund 10 FOPPS and therefore do not use transfer journals. Other campuses record revenue directly in department Fund 10 FOPPS and therefore do use journals. Contact your campus controller's office if you are unsure of which situation applies to you.

• General fund support to auxiliary operations is done with a cash transfer from the general fund FOPPS to the auxiliary fund FOPPS.
• General fund support to sponsored projects is done by spending directly out of the general fund FOPPS on behalf of the sponsored project. This is done in a unique FOPPS for mandatory cost sharing or a departmental FOPPS for voluntary cost sharing.
• General fund support for gifts usually doesn't exist. This is just spending out of the general fund FOPPS for the departmental activity in the normal course of business.

Auxiliary Fund Support

• Auxiliary fund support to other auxiliaries is done by a cash transfer.
• Auxiliary fund support to general fund operations is done by opening an auxiliary fund FOPPS using the general fund's organization and program codes. A cash transfer is made to the general fund's auxiliary FOPPS. The general fund spends out of the auxiliary FOPPS. Auxiliary fund cash transfers to the general fund are not allowed. Exchanges between auxiliary and general fund FOPPS are recorded as revenue and expense using either IN revenue in Fund 28 or ID revenue and expenses in other 2x funds.
• Auxiliary fund support for sponsored projects and gifts is the same as for general fund support of these activities.
• Support from an ISC operation (Fund 28) is not allowed for any purpose per Federal cost regulations.

Restricted Fund Support

Restricted funds supporting restricted fund projects/programs is not allowed for Funds 30 and 31.

• For Fund 34, do a cash transfer to the other Fund 34 FOPPS for use by the Fund 30 or 31 project or Fund 34 activity. This assumes the support is allowable under the terms of the Fund 34 program providing the support.

Restricted funds supporting unrestricted fund programs is not allowed for Funds 30 and 31.

• For Fund 34, set up a Fund 34 FOPPS for use by the Fund 10 or 2x program.