Learn More About Auxiliary Funds
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What is the role of our auxiliary funds?
Auxiliaries (fund 2x’s) are those funds that account for units and activities that generate their own revenue. This can include large operations, such as Housing & Dining Services and Athletics, as well as smaller-scale activities such as t-shirt sales and conferences. Some units primarily use auxiliary funds, while others may only have only a few auxiliary SpeedTypes in their organization.
Types of Auxiliary Funds
See chapter 4 of The Guide for more detailed information about these types of enterprises.
Technically speaking, these are units that are authorized to issue their own revenue bonds and receive less than 10 percent of their annual revenue in grants from all state and local governments. More plainly, these are units that are largely responsible for generating the bulk of their revenue, as they do not receive much general fund support. Spending in a fund 20 should support and reflect the good or service you are collecting revenue for. Some examples of fund 20 auxiliaries are:
- Housing & Dining Services (HDS)
- Athletics
- CU Book Store
- Cogen
- Recreation Center
- Wardenburg
- UMC
Cost share represents the university’s contractual obligation to cover a portion of sponsored research costs in order to support the scope of work. We also have fund 12 cost share (monies from fund 10) and fund 32 cost share (monies from fund 34).
Spending in cost share should align with the award that the cost share supports. It should not only adhere to the restrictions of the award but should also be spent in tandem with the award.
Spending in a fund 26 is fairly discretionary, though funds from fixed price contract residuals are typically used to continue the research from which they originated.
Spending in a fund 28 needs to directly support the good or service you are providing. Since rates are set for any fund 28 activity, your costs have to follow the guidelines set forth in chapter 13 of The Guide (see pgs. 9-16). You can also find additional guidance on rate-based service activities on the Budget & Fiscal Planning website.
If you cannot categorize the revenue generated through departmental activities into a fund 20, 26, or 28, you will use a fund 29.
A couple of examples of fund 29s are sales external to the university (see OCG’s website for scope-based service activities in fund 33s) and conferences.
Recording Revenue in a Fund 2x
Recording revenue in a fund 2x is dependent on the exact fund type and expense purpose code (EPC) of the SpeedType. Please refer to the revenue account codes chart which helps delineate what revenue to use.
If you do not know your EPC, you can look it up in PS Finance under CU SpeedTypes: Once you have pulled up the specific SpeedType, click on the third tab (Org/Program/Project Attributes) and you will find the EPC in the Program/Project Attributes box. A definition of can be found on the Office of University Controller's website.
Reports for a Fund 2x
As with other funds, CU-Data reports such as a SpeedType Summary or Operating Summary are good for showing available balances, and the Financial Detail II is good for showing transactional data. A Revenue and Expenditure Summary will also give you a good higher-level overview of activity for a set timeframe.
Any questions about auxiliary SpeedTypes can be directed to your campus accountant.
Important Points to Remember with Auxiliaries
- Auxiliaries are charged GAIR on all expenses (not on revenue or transfers), with a few minor exceptions, such as student aid expenses. The FY22 rate is 7.89 percent. Review current and past GAIR rates.
- Auxiliaries can also be charged PIE (with fund 28s also being credited PIE). This is a charge caused by a FOPPS being in cash deficit on a daily average for a quarter.
- Fund 78s are the “savings accounts” for auxiliary SpeedTypes.