Budgeted Versus Non-Budgeted Fund Definitions
In general, “Budgeted” funds represent non-contract & grant resources that are managed on a fiscal year basis. An annual budget should be established for all operating activities impacted by budgeted funds, and financials should be tracked to that budget throughout the year. All accounts involving “budgeted” funds are closed each fiscal year. The term “non-budgeted” relates to inception-to-date funds that are project specific and have defined start and end dates that do not necessarily align with the fiscal year. While “non-budgeted” contract and grant funds do indeed have budgets, the “non-budgeted” term reflects the fact that these are not considered a part of the Universities’ annual operating budget.
Budgeted funds include state general funds, tuition, non-resident supplemental tuition, other student fees, UC general funds, endowment income, hospital/clinical revenues, gifts, and miscellaneous sources incorporated into the University’s annual budget. These funds are also defined as either:
- General Funds – these include state appropriations, tuition, non-resident tuition, special state general fund appropriations, a portion of indirect cost recovery, and other general income reflected in fund numbers 199XX.
- Unrestricted Funds – funds may be designated or undesignated and include, but are not limited to: student tuition and fees, opportunity, auxiliary, sales and service, teaching hospital, health sciences compensation.
- Restricted Funds – funds that are subject to special restrictions established by various outside agencies.
Funds may be allocated on either a permanent or temporary basis.
- Permanent allocations are added to the base budget and are automatically reallocated at the start of each fiscal year thereafter.
- Temporary allocations are ordinarily made for short-term purposes and can be provided for one year only.
Funds received in the form of federal contracts and grants, private gifts and grants, special agreements with state and local agencies, and certain other minor income sources are considered non-budgeted (or extramural) funds. These funds are considered non-budgeted funds primarily because they are provided for limited time periods and for specific purposes.