| Policy Title | Income Fund Reimbursable Programs and Accounting |
|---|---|
| Responsible Office | Business Affairs |
| Policy Type | Business Affairs |
| Policy Number | 205 |
| Last Revision Date | 10/26/2023 |
Authority and Responsibility
This policy relates only to ÂÌñÉç and not to the Research Foundation, ÂÌñÉç Foundation, Student Association or any other separate legal entity.
Background Information
SUNY has four major funds applicable to ÂÌñÉç:
State Purpose (sometimes referred to as Revenue Offset)
Income Fund Reimbursable (IFR)
State University Tuition Reimbursement Account (SUTRA)
Dorm Income Fund Reimbursable (DIFR)
This policy applies to IFR and SUTRA
Purpose
The purpose of this Policy is to define the types of funds we consider IFR (including SUTRA) and to provide guidelines on how to administer these types of funds.
Definitions
Income Fund Reimbursable (IFR)
State authorized funds to enable campus to carry out related functions. They are considered cash accounts as cash is generated for this fund by fees charged to students and collections from campus services and activities such as those in the Events Center, Anderson Center, Recreation, Parking, Telecommunication, the Library and from facility rentals and commissions. This type of fund/account begins with a number sequence of 90xxxx or 91xxxx.
State University Tuition Reimbursement Account (SUTRA)
Fund established by the State for programs closely related to the campus core purpose with International Programs, Summer and Winter Sessions and Contract Courses. SUTRA accounts are considered cash accounts and begin with a numbering sequence of 96xxxx.
Policy
New Accounts
University personnel who anticipate new operating programs or functions involving the receipt of revenue to be deposited into an IFR account should request a new IFR. To request a new IFR account please refer to the IFR Accounting section of the Accounting website. This includes a link to the form used to request a new IFR and instructions on how to complete the form. It can also be accessed thru a link on the ÂÌñÉç Business Systems (BUBS) Portal under Accounting. The request must include a signature from the Divisional Vice President as well as from the Chief Financial Officer.
Revenue & Expenditure
The State of New York requires that expenditures in IFR accounts be directly related to the purposes for which income was collected. This means that expenditures made from IFR accounts must fall within the stated purpose of the account and must be related to the reason for which revenue was collected. Any violation of this principle may result in penalties to an account and could jeopardize the existence of an account. Expenditures in IFR accounts must comply with all procurement-related policies and procedures within the Business Affairs section of ÂÌñÉç's Management Procedures. After a new IFR account is established, the person requesting the account must work with Revenue Accounting to establish a Detail Code in the Banner system to map revenue to the appropriate account number in the SUNY system.
Under No Circumstances are Individual Bank Accounts to Be Established for These Purposes
All incoming funds must be routed thru Student Accounts. If there are any questions with relation to this, please contact Revenue Accounting.
Self-supporting
IFR and SUTRA accounts must be self-supporting. The activity that generates revenue must support the expenditure activity within the account.
Duplication
The accounts are usually established for a single, distinct activity and under no circumstance are accounts to duplicate activity for which the State appropriates its regular budget.
Overhead Assessments
IFR and SUTRA accounts are charged overhead assessments in accordance with SUNY policy MTP99-1. Currently most IFR accounts are charged a thirteen percent (as of 7/20/18 revision) overhead assessment on revenue.
Fringe Benefit Assessments
Fringe benefit assessments are charged on PSR and PST expenses except for student employee labor in general IFR accounts. In SUTRA accounts, fringe benefit assessments are charged on PSR and PST labor expenditures other than student employee labor except for summer session accounts. Fringe benefits for the summer session accounts are assessed at a reduced rate on revenue and paid by the campus as revenue offsets. Fringe benefit rates are established each year and provided to the campuses by SUNY System Administration.
Allocation
IFR and SUTRA allocations should be viewed as budgetary guides only. IFR account cash balances determine operational spending limits.
Deficits/Surpluses
The nature of the IFR funding mechanism requires that all IFR accounts be "self-supporting." The definition of this term is that no IFR account should incur an ongoing deficit or surplus of expenditures versus revenue. IFR account managers — as designated at the top of Account Summary in Business Intelligence (BI) — should take care to assure that IFR accounts maintain a reasonable balance between revenue and expense at all times. The Budget Office will monitor expenditures versus revenue regularly and will contact any and all account managers whose accounts do not appear to be in balance. In the event an account has excess funds available, the reserve mechanism may be used to earmark or set aside those funds. In the event that a negative cash balance persists, corrective action will be taken. Cash balances remain in an IFR account and roll from year to year.
Past Due Invoices
As revenue generation is the basis for the account, continual follow-up on unpaid and past due invoices is necessary and is the obligation of the Account Manager.
Questions
If you have questions related to your IFR account please contact the financial manager in your area. If that person is unable to answer your question, please contact Accounting.