Understanding the Sources & Uses Report

This guide explains how the Sources & Uses Report translates appropriation and financial activity from the UCLA General Ledger into a management reporting format. While it does not replace the General Ledger, it summarizes and reorganizes ledger activity to support internal analysis. The report only relies on the appropriation and financial columns of the General Ledger. Encumbrances are not included.

Mapping Summary

Below is a summary of how GL transactions map into the Sources & Uses Report. Additional detail can be found in following sections.

• Total Revenues:
  • Appropriation column: TE11, TE13, TE14, TE15 on accounts 4xxxxx-8xxxxx. See list appropriated funds below.
  • Financial column: TE33-35, TE41-44, TE50-57 on accounts 2xxxxx-39xxxx.
• Total Uses: Financial Column for expense account cost centers, categorized by Object Code groupings
  • Financial activity on Accounts 4xxxxx-8xxxxx
  • Encumbrances are not included.
• Operating Surplus/(Deficit):Total Sources - Total Uses. Shows whether current-year activities generate enough resources to cover current-year spending.
• Transfers: Financial Activity on Fund Balance Accounts (119700-119999), categorized by transaction code (Source Code). Excludes Type Entry (TE) BF and 12.
• Carryforward: Type Entry 12 and Type Entry BF. Can post on Fund Balance, Revenue, and Expense Account Cost Centers and are all combined into one category.
• Ending Balance: Operating Balance + Transfers + Carryforward

Appropriated and Non-Appropriated Funds

Appropriated funds are funds for which spending authority is established through the campus budget allocation process. Revenue generated in these funds is typically collected and managed by central campus control units and allocated to campus units through appropriations or budget allocations. As a result, a unit's spending authority is determined by its budget allocation rather than the revenue it generates. Some additional detail:

• Fund balance and revenue accounts are owned by campus central control units
• A campus unit’s spending authority is reflected in 4xxxxx-8xxxxx (expense) accounts in the Appropriations column through:
  • TE11: 7/1 permanent budget allocations
  • TE13-14: Temporary one-time funding allocations
• See below for list of funds

Non-appropriated funds are funds for which spending authority is based on revenue directly generated by a campus unit. Because the unit retains control over the revenue it generates, spending authority is determined by available revenues and fund balances rather than through the campus budget allocation process. In addition:

• Fund balance and revenue accounts are maintained by the campus unit, unlike appropriated funds where these accounts are maintained by central campus control units.
• Revenue is recorded directly to 2xxxxx revenue accounts maintained by the campus unit and is recorded in the Financial column through TE53 and TE54 transactions.
• See below for list of funds

Non-appropriated funds with permanent budgets are used when an organization chooses to allocate spending authority to its sub-units through budget allocations rather than directly passing through the revenue generated by the activity. This approach allows the organization to establish permanent budget allocations at the beginning of the fiscal year that are reflected in the General Ledger. Under this model, non-appropriated fund revenue is recorded directly to the organization's 2xxxx revenue accounts in the Financial column, while sub-units receive spending authority through TE11 (permanent budget allocations) and TE14 (temporary allocations) recorded in the Appropriations column. It is the organization’s responsibility to ensure that the budget allocations (TE11/14) transferred to sub-units is less than or equal to the revenue generated by the fund.

Latest Fund Mapping:

Lookup individual fund's mapping using this report (CDW/QDB Access required):

APB Fund Groups Lookup Report

Sources Mapping

The Source & Uses Report categorizes funding sources into three primary categories: Permanent Appropriations, Current Year Appropriations, and Revenue. See below for the mapping of the GL to these categories.

Perm Appropriations

• Recurring spending authority allocated to the unit
• Ledger Column: Appropriations
• Type Entry 11 on Expense Accounts, Revenue Accounts, and Fund Balance Accounts

Temp Appropriations (also known as Current Year Appropriations)

• 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)
• Type Entries TE33-35, TE41-44, TE50-57

Uses Mapping

The Source & Uses Report categorizes expenditures ("uses") by grouping General Ledger expense transactions into high-level reporting categories while retaining the ability to drill down to object code detail.

• Expenditures are drawn exclusively from the financial column.
• General ledger expense object codes are grouped into reporting categories such as Salaries & Wages, Benefits, Supplies & Materials, Travel, and Services.
• Users can drill down from each reporting category to the underlying object code detail.

What is excluded:

• Encumbrances are excluded from the report. As a result, purchase orders and other commitments that have not yet been recorded as expenses do not appear in Uses.

Operating Balance

Formula:

The Operating Balance reflects the net result of a unit’s current-year financial activity.

• A positive Operating Balance indicates that revenues and funding sources exceeded expenditures, resulting in a surplus.
• A negative Operating Balance indicates that expenditures exceeded revenues and funding sources, resulting in a deficit.

A negative Operating Balance does not necessarily mean a unit has run out of resources. A unit may incur a current-year deficit and still have sufficient carryforward balances or reserves available to support operations.

Transfers

Transfers include financial activity recorded on fund balance accounts (1197xx–1199xx) during the fiscal year and are categorized by transaction source code.

What is excluded:

• Type Entry BF activity is excluded from Transfers.

Carryforward

Carryforward represents prior-year resources that become available for use in the current fiscal year. It includes Type Entry BF (Beginning Balance Forward) and Type Entry 12 (Reappropriation) activity.

Carryforward may be recorded on fund balance, revenue, or expense accounts. For reporting purposes, all carryforward activity is consolidated into a single category within the Source & Uses Report.

Carryforward reflects the cumulative impact of prior-year operating results and other balance-forward activity, providing visibility into the resources available to support current-year operations.

Ending Balance

Formula

The Ending Balance represents the resources available to a unit after accounting for current-year operating activity, transfers, and prior-year resources carried forward.

A positive Ending Balance indicates that the unit has resources remaining, while a negative Ending Balance indicates that obligations and expenditures exceed available resources.

Unlike the Operating Balance, which measures whether current-year activity is self-supporting, the Ending Balance reflects the unit's overall financial position by incorporating both current-year results and resources accumulated from prior years.

Organizations and Department Hierarchy

The General Ledger assigns ownership of each fund to a department. At the same time, individual account-cost-centers within the same fund may be associated with different departments. The Source & Uses Report maps activity as follows:

• Revenue and Expense Activity:
  • Reported under the department associated with the account cost center, regardless of the department assigned to the fund.
• Fund Balance Activity (acct 1197xx-1199xx):
  • Appropriated Funds:
    • Reported under the department associated with the account cost center, consistent with revenue and expense activity.
  • Non-Appropriated Funds:
    • Reported under the department assigned to the fund, regardless of the account cost center used in the transaction.