This guide establishes definitions for measuring the financial health of an organizational unit.
The Sources and Uses report and CBIG reporting presents both appropriation activity and financial activity as a single measure of available resources.
The general ledger records spending authority in the appropriation column and earned revenue in the financial column. No single ledger column contains both. A unit reviewing only the appropriation column sees the authority it has been granted but not the revenue it has earned. A unit reviewing only the financial column sees revenue and expense but not the authority distributed to it. The Sources and Uses report combines the two into one figure and serves as the campus reference for available resources.
General Ledger Transaction Categories
The Sources & Uses report is built off of the appropriation and financial column in the General Ledger.
Fund Groupings
Appropriated Funds and Non-Appropriated Funds
Appropriated funds require a budget allocation to establish spending authority. Non-appropriated funds derive spending authority directly from available revenue and resources. Organizations may choose to apply an appropriation model internally regardless of the underlying fund source.
Appropriated Funds
- Spending authority is established through a budget allocation process.
- Revenue is typically collected centrally and distributed to departments.
- Budget allocations determine how much can be spent.
- Examples:
- State funds
- Indirect Cost Recovery Funds
- Central Commitments
Non-Appropriated Funds
- Spending authority is based on revenue earned or resources available.
- Revenue is typically generated or controlled by the department or unit.
- Available cash, revenue, or fund balance determines how much can be spent.
- Examples:
- Sales & Service
- Professional Degree Programs
- Self-Support Degree Programs
- Auxiliary Enterprises
Fund Groups
Individual funds are grouped into larger fund groupings
Appropriated Funds
- General Funds
- Indirect Cost Distributed
- Student Services Fees
- University Financial Aid
- Other State Funds
- Other Source Funds
- Contracts and Grants
- Gifts and Endowments
Non-Appropriated Funds
- Student Fees
- Referendum Fees
- Student Fees-Other
- UCLA Extension Funds
- Summer Session Funds
- Prof. Deg. Supplemental Tuition
- Self-supporting Degree Program Fees
- Course Materials Fees
- Sales and Service
- Sales & Service
- Compensation Plans
- Auxiliaries
- Reserves
Organizations and Department Hierarchy
Revenue and Expense activity always reports under the department on the account cost center.
Fund balance activity depend on the fund:
- on appropriated funds they also use the account cost center
- on non-appropriated funds they use the department on the fund.
Mapping Summary
Below is a quick summary of how GL transactions map into the Sources & Uses Report
Appropriated Funds
- Sources: TE11, TE13-15 on Expense Accounts
- Uses: Expense Groupings by Object Code
- Recharges: By Object Code
- Operating Balance: Sources-Uses
- Transfers: Financial Transactions on Fund Balance
- Carryforward:Type Entry 12 and BF
- Ending Balance:Operating Balance + Transfers + Carryforward
Non-Appropriated Funds
- Sources:TE11, TE13-15 on Expense, Fund Balance, and Revenue Accounts, Financial Amounts on Revenue Accounts
- Uses: Expense Groupings by Object Code
- Recharges: By Object Code
- Operating Balance: Sources-Uses
- Transfers: Financial Transactions on Fund Balance
- Carryforward:Type Entry 12 and BF
- Ending Balance:Operating Balance + Transfers + Carryforward
Sources Mapping
Resources made available to a unit during a period, including allocations, earned revenue, and other funding that increase the resources available for spending. Sources are pivoted by Fund Groups in the report.
Perm Appropriations
- Recurring spending authority allocated to the unit
- Ledger Column: Appropriations
- Type Entry 11 on Expense Accounts, Revenue Accounts, and Fund Balance Accounts
Current Year Appropriations (also known as temp)
- One-time spending authority allocated for the current year
- Ledger Column: Appropriations
- Type Entries 13, 14, and 15
Revenue
- Actual revenue received by the unit
- Ledger Column: Financial
- Financial transactions on Revenue Accounts (2xxxxx Accounts or Account Type = 'RV)
Appropriations are not confined to appropriated funds. On appropriated funds, appropriation is the mechanism by which centrally collected revenue is distributed, and the receiving unit is granted spending authority rather than revenue. On non-appropriated funds, a unit may establish appropriations at their own discretion as an internal management control. For example, a dean's office that collects revenue directly may distribute appropriations to subordinate departments in order to grant permission to spend.
Uses Mapping
Expenditures and other activities that consume or reduce the resources available to a unit during a period.
Uses are drawn exclusively from the financial column. Expense transactions are loaded at the object code level and grouped into reporting categories such as salaries and wages, benefits, supplies and materials, travel, and services. The object code detail remains available for drilldown.
What is excluded:
- Appropriation activity on expense account cost centers. Such activity represents authority granted to the unit and is captured within Sources. On an expense account cost center, the appropriation column contributes to Sources while the financial column contributes to Uses.
- Encumbrances. Purchase orders and other commitments not yet expensed do not appear in Uses.
Operating Balance
Formula:
Operating Balance = Total Sources - Total Uses
A positive result indicates a surplus. A negative result indicates a deficit. A negative Operating Balance does not by itself indicate that a unit has exhausted its resources. A unit may operate at a deficit in the current year while retaining sufficient carryforward to remain solvent. Operating Balance answers whether current-year activity is self-sustaining. Ending Balance answers whether the unit has resources remaining.
What is excluded:
Transfers and carryforward are excluded by design. Operating Balance isolates current-year performance and is unaffected by prior-year resources brought forward or by movements between funds.
Transfers
Financial activity recorded on fund balance accounts during the year, categorized by transaction source code. Type Entry BF activity is excluded.
Carryforward
Prior-year resources that become available in the current year, comprising Type Entry BF and Type Entry 12. Carryforward may occur on fund balance accounts, revenue accounts, and expense accounts, and is combined into a single reporting category.
Ending Balance
Formula
Ending Balance = Operating Balance + Transfers + Carryforward