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Expenditure Function Codes Defined
Comptroller
GM Setup Specialist
GM Award Manager
GM Project Manager
The Comptroller is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.
Expenditure Function Codes and Definitions
In their general purpose financial statements, public institutions are required to classify expenditures by function. The following functional classifications are used in higher education.
These classifications derive from the Financial Accounting and Reporting Manual for Higher Education. This manual is published and maintained by the National Association of College and University Business Officers (NACUBO).
Each project in Grants Accounting must be assigned one (and only one) expenditure function code. This assignment is made during project setup in completing the Project Quick Entry window. The Expenditure Function Code field gives access to the Expenditure Functions table. Use the list of values (LOV) to select the appropriate Expenditure Function for your project.
The following definitions should be used:
The instruction category includes expenditures for all activities that are part of an institution’s instruction program. Expenditures for credit and noncredit courses; academic vocational and technical instruction; remedial and tutorial instruction; and regular, special, and extension session should be included. Expenditures for departmental research and public services that are not separately budgeted should be included in this classification. This category excludes expenditures for academic instruction when the primary assignment is administration – for example, academic deans. However, expenditures for department chairpersons and administrators for whom instruction is an important role are included.
The instruction category includes the following subcategories:
This subcategory includes expenditures for formally organized and/or separately budgeted instructional activities that are carried out during the academic year, associated with academic offerings described by certain IPEDS instructional program categories, offered for credit as part of a formal post-secondary education degree or certification program. Open university, short courses, and home study activities falling within this classification and offered for credit are included. However, this subcategory does not include instructional offerings that are part of programs leading toward degrees or certificates at levels below the higher education level, such as adult basic education.
2100 Instruction, Vocational/Technical
This subcategory includes expenditures for formally organized and/or separately budgeted instructional activities that are carried out during the academic year, usually associated with IPEDS instructional program categories identified as vocational and technical, and offered for credit as part of a formal post-secondary education degree or certificate program. Open university, short courses, and home study falling within this classification and offered for credit are included. However, this subcategory does not include instructional offerings that are part of programs leading toward degrees or certificates at levels below the higher education level, such as adult basic education.
2300 Community Education
This subcategory includes expenditures for formally organized and/or separately budgeted instructional activities that do not generally result in credit toward any formal post-secondary degree or certificate. It includes noncredit instructional offerings carried out by the institution’s extension division as well as noncredit offerings that are part of the adult education or continuing education program. This subcategory also includes expenditures for activities associated with programs leading toward a degree or certificate at a level below the higher education level, such as adult basic education.
2400 Instruction Preparatory/Remedial
2410 Instruction Preparatory/Remedial – Medicine
This subcategory includes expenditures for formally organized and/or separately budgeted instructional activities that give students the basic knowledge and skills required by the institution before they can undertake formal academic course work leading to a post-secondary degree or certification. Such activities, supplemental to the normal academic program, generally are termed preparatory, remedial, developmental, or special educational services. These instructional offerings may be taken prior to or along with the course work leading to the degree or certificate. They are generally noncredit offerings, although in some cases credit may be provided specifically for required preparatory or remedial skills or knowledge should be included in this category. For example, if students may satisfy preparatory requirements by taking offerings provided primarily for other than remedial or preparatory purposes, those offerings should be classified elsewhere.
2450: Instructional Information Technology
This subcategory includes expenditures for formally organized and/or separately budgeted instructional information technology. If an institution does not separately budget and expense information technology resources, the costs associated with the three primary programs will be applied to academic support and the remainder to institutional support.
The research category includes all expenditures for activities specifically organized to produce research, whether commissioned by an agency external to the institution or separately budgeted by an organizational unit within the institution. (An example might be internal research awards, awarded by the VPR’s Office…aka URPC {University Research Policy Council}). Subject to these conditions, the category includes expenditures for individual and/or project research as well as that of institutes and research centers. This category does not include all sponsored programs nor is it necessarily limited to sponsored research, since internally supported research programs, if separately budgeted, might be included in this category under the circumstances described. Expenditures for departmental research that are separately budgeted for research are included in this category. However, the research category does not include expenditures for departmental research that are not separately budgeted. Such expenditures are included in the instructional category.
The research category includes the following subcategories:
2600 Research, Institutes and Centers
This subcategory includes expenditures for research activities that are part of a formal research organization created to manage a number of research efforts. While this subcategory includes agricultural experiment station, it does not include federally funded research and development centers, which, for public institutions, should continue to be classified as independent operations. This expenditure function code should only be used for projects owned by the following state-approved Centers and Institutes:
2700 Research, Projects & Individual
2705 Research, Projects & Individual – SWVA Ctr
This subcategory includes expenditures for research activities and are managed within academic departments. Such activities may have been undertaken as the result of a research contract or grant or through a specific allocation of the institution’s general resources.
2750: Research Information Technology
This subcategory includes expenditures for formally organized and/or separately budgeted research information technology. If an institution does not separately budget and expense information technology resources, the costs associated with the three primary programs will be applied to academic support and the remainder to institutional support.
The public service category includes expenditures for activities established primarily to provide non-instructional services beneficial to individuals and groups external to the institution. These activities include community service programs (excluding instructional activities) and cooperative extension services. Included in this category are conferences, institutes, general advisory services, reference bureaus, radio and television, consulting, and similar non-instructional services to particular sectors of the community.
The public service category includes the following subcategories:
2800 Community Service
2801 Community Service – Funds for Excellence
2805 Community Services –
2810 Conferences, Workshops, etc.
This subcategory includes expenditures for activities organized and carried out to provide general community services, excluding instructional activities. Community service activities make available to the public various resources and special capabilities that exist within the institution. Examples include conferences and institutes, general advisory services and reference bureaus, consultation, testing services (for example, soil testing, carbon dating, structural testing), and similar activities. The activities included in this subcategory are generally sponsored and managed outside the context of both the agricultural and urban extension programs and of the institution’s public broadcasting station.
2820 Public Broadcasting Services
This subcategory includes expenditures for operations and maintenance of broadcasting services operated outside the context of the institution’s instruction, research, and academic support programs. Excluded from this subcategory are broadcasting services conducted primarily in support of instruction (classified in the subcategory ancillary support), broadcasting services operated primarily as a student service activity (classified in the subcategory social and cultural development), and broadcasting services that are independent operations (classified in the subcategory independent operation/institutional).
2850: Public Service Information Technology
This subcategory includes expenditures for formally organized and/or separately budgeted public service information technology. If an institution does not separately budget and expense information technology resources, the costs associated with the three primary programs will be applied to academic support and the remainder to institutional support.
The academic support category includes expenditures incurred to provide support services or the institution’s primary missions: instruction, research, and public service. It includes the retention, preservation, and display of educational materials, for example, libraries, museums, galleries; the provision of services that directly assist the academic functions of the institution, such as demonstration schools associated with a department, school, or college of education; media such as audio-visual services and technology such as computing support; academic administration (including academic deans but not department chairpersons) and personnel development providing administration support and management direction to the three primary missions (instruction, research, public service); and separately budgeted support for course and curriculum development. For institutions that currently charge some of the expenses –for example, computing support – directly to the various operating units of the institution, this category does not reflect such expenses.
This category includes the following subcategories:
3000 Libraries
This subcategory includes expenditures for organized activities that directly support the operation of a catalogued or otherwise classified collection.
3100 Museums and Galleries
This subcategory includes expenditures for organized activities that provide for the collection, preservation, and exhibition of historical materials, art objects, scientific displays, etc. Libraries are excluded.
3200 Educational Media Services
This subcategory includes expenditures for organized activities providing audiovisual and other services that aid in the transmission of information in support of the institution’s instruction, research, and public service programs.
3300 Academic Support Information Technology
This subcategory includes expenditures for formally organized and/or budgeted activities that provide computing support, collectively, to the three primary programs of instruction, research, and public service. Excluded from this category is administrative data processing, which is classified as institutional support.
3400 Ancillary Support
This subcategory includes expenditures for organized activities that provide support services to the three primary programs of instruction, research, and public service, but are not appropriately classified in the previous subcategories. Ancillary support activities usually provide a mechanism through which students can gain practical experience. An example of ancillary support is a demonstration school associated with a school of education. The expenditures of teaching hospitals are excluded.
3500 Academic Administration
This subcategory includes expenditures for activities specifically designed and carried out to provide administrative and management support to the academic programs. This subcategory is intended to separately identify only expenditures for activities formally organized and/or separately budgeted for academic administration. It includes the expenditures of academic deans (including deans of research, deans of graduate schools, and college deans), but it does not include the expenditures of department chairpersons (which are included in the appropriate primary function categories). The subcategory also includes expenditures for formally organized and/or separately budgeted academic advising. Expenditures associated with the office of the chief academic officer of the institution are not included in this subcategory, but should be classified as institutional support.
3600 Course and Curriculum Development
This subcategory includes expenditures for activities established either to significantly improve or to add to the institution’s instructional offerings, but only to the extent that such activities are formally organized and/or separately budgeted.
3700 Academic Personnel Development
This subcategory includes expenditures for activities that provide the faculty with opportunities for personal and professional growth and development to the extent that such activities are formally organized and/or separately budgeted. This subcategory also includes formally organized and/or separately budgeted activities that evaluate and reward professional performance of the faculty. Included in this subcategory are sabbaticals, faculty awards, and organized faculty development programs.
The student services category includes expenditures incurred for offices of admissions and the registrar and activities with the primary purpose of contributing to students’ emotional and physical well-being and intellectual, cultural, and social development outside the context of the formal instruction program. It includes expenditures for student activities, cultural events, student newspapers, intramural athletics, student organizations, intercollegiate athletics (if the program is not operated as an essentially self-supporting activity), counseling and career guidance (excluding informal academic counseling by the faculty), student aid administration, and student health service (if not operated as an essentially self-supporting activity). In recent years, some institutions have created an office of enrollment management; expenditures for such an office are best categorized in student services.
The student services category includes the following subcategories:
4000 Social and Cultural Development
This subcategory includes expenditures for organized activities that provide for students’ social and cultural development outside the formal academic program. This subcategory includes cultural events, student newspapers, intramural athletics, student organizations, etc. Expenditures of ran intercollegiate athletics program are included in this subcategory if the program is not operated as an essentially self-supporting operation (in which case all the related expenses would be reported as auxiliary enterprises).
4200 Counseling and Career Guidance
This subcategory includes expenditures for formally organized placement, career guidance, and personal counseling services for students. This subcategory includes vocational testing and counseling services and activities of the placement office. Excluded from this subcategory are formal academic counseling activities (academic support) and informal academic counseling services (instruction) provided by the faculty in relation to course assignments.
4300 Financial Aid Administration
This subcategory includes expenditures for activities that provide financial aid services and assistance to students. This subcategory does not include outright grants to students, which should be classified as either revenue reductions, agency transactions, or expenses, as discussed elsewhere in this manual.
4400 Student Admissions
This subcategory includes expenditures for activities related to the identification of prospective students, the promotion of attendance at the institution, and the processing of applications for admission.
4500 Student Services Administration
This subcategory includes expenditures for organized administrative activities that provide assistance and support (excluding academic support) to the needs and interests of students. This subcategory includes only administrative activities that support more than one subcategory of student activities and /or that provide central administrative services related to the various student service activities. In particular, this subcategory includes services provided for particular types of students (for example, minority students, veterans, and handicapped students). Excluded from this subcategory are activities of the institution’s chief administrative officer for student affairs, whose activities are institution wide and therefore should be classified as institutional support.
4600 Student Records
This subcategory includes expenses for activities to maintain, handle and update records for currently enrolled students as well as for students previously enrolled.
4650: Student Services Information Technology
This subcategory includes expenditures for formally organized and/or separately budgeted student services information technology. If an institution does not separately budget and expense information technology resources, the costs associated with the three primary programs will be applied to academic support and the remainder to institutional support.
The institutional support category includes expenditures for central executive-level activities concerned with management and long-range planning for the entire institution, such as the governing board, planning and programming, and legal services; fiscal operations, including the investment office; administrative data processing; space management; employee personnel and records; logistical activities that provide procurement, storerooms, safety, security, printing, and transportation services to the institution; support services to faculty and staff that are not operated as auxiliary enterprises; and activities concerned with community and alumni relations, including development and fund raising. To the extent that fringe benefits are not assigned to other functional categories, those benefits would be charged to institutional support.
Appropriate allocations of institutional support should be made to auxiliary enterprises, hospitals, and any other activities not reported under the educational and general heading of expenses.
The institutional support category includes the following subcategories:
5000 Executive Management
This subcategory includes expenditures for all central, executive-level activities concerned with management and long-range planning for the entire institution (as distinct from planning and management for any one program within the institution). All officers with institution wide responsibilities are included, such as the president, chief academic officer, chief business officer, chief student affairs officer, and chief development officer. This subcategory includes such operations as executive direction (for example, governing board), planning and programming, and legal operations.
5100 Fiscal Operations
This subcategory includes expenditures for operations related to fiscal control and investments. It includes the accounting office, bursars office, and internal and external audits. It also includes unallocated interest expense.
5200 General Administration
5300 Logistical Services
This subcategory includes expenditures for activities related to general administrative operations and services (with the exception of fiscal operations and administrative data processing). Included in this subcategory are personnel administration, space management, purchase and maintenance of supplies and materials, campus wide communication and transportation services, general stores, printing shops, and safety services.
5400 Public Relations/Development
This subcategory includes expenditures for activities to maintain relations with the community, alumni, or other constituents and to conduct activities related to institution wide development and fund raising.
5600 Administrative Information Technology
This subcategory includes expenditures for formally organized and/or separately budgeted administrative information technology. If an institution does not separately budget and expense information technology resources, the costs associated with the three primary programs will be applied to academic support and the remainder to institutional support.
OPERATION AND MAINTENANCE OF PLANT
The operation and maintenance of plant category includes all expenditures of current operating funds for the operation and maintenance of the physical plant, in all cases net of the amount charged to auxiliary enterprises, hospitals, and independent operations. It includes all expenditures for operations established to provide services and maintenance related to grounds and facilities. Also included are utilities, fire protection, property insurance, and similar items. It does not include expenditures made from the institutional plant funds accounts. As the college guide prohibits recording depreciation in the current funds, this category does not include depreciation.
This category includes the following subcategories:
6000 Physical Plant Administration
This subcategory includes expenditures for administrative activities that directly support physical plant operations. Activities related to the development of plans for plant expansion or modification, as well as plans for new construction, should be included in this subcategory.
6100 Building Maintenance
6110 Rental Property
This subcategory includes expenditures for activities related to routine repair and maintenance of buildings and other structures, including normally recurring repairs and preventive maintenance.
6200 Custodial Services
This subcategory includes expenditures related to custodial services in buildings.
6300 Utilities
This subcategory includes expenditures related to heating, cooling, light and power, gas, water, and any other utilities necessary for operation of the physical plant.
6400 Landscape and Grounds Maintenance
This subcategory includes expenditures related to the operation and maintenance of landscape and grounds.
6450 Major Repairs and Renovations
This subcategory includes expenditures related to major repairs, maintenance, and renovations. Minor repairs should be classified as building maintenance. The distinction between major repairs and minor repairs should be defined by the institution.
6050: Operation and Maintenance Information Technology
This subcategory includes expenditures for formally organized and/or separately budgeted operation and maintenance information technology. If an institution does not separately budget and expense information technology resources, the costs associated with the three primary programs will be applied to academic support and the remainder to institutional support.
The scholarships and fellowships category includes expenditures for scholarships and fellowships – from restricted or unrestricted current funds – in the form of grants to students, resulting from selection by the institution or from an entitlement program. The category also includes trainee stipends, prizes, and awards. Trainee stipends awarded to individuals who are not enrolled in formal course work should be charged to instruction, research, or public service.
Recipients of grants are not required to perform service to the institution as consideration for the grant, nor are they expected to repay the amount of the grant to the funding source. When services are required in exchange for financial assistance, as in the College Work Study program, charges should be classified as expenditures of the department or organizational unit to which the service is rendered. Aid to students in the form of tuition or fee remissions also should be included in this category. However, remission of tuition and fees granted because of faculty or staff status, or family relationship of students to faculty or staff, should be recorded as staff benefit expenditures in the appropriate functional expenditure category.
This category includes the following subcategories:
6500 Scholarships
6501 Scholarships – Funds for Excellence
This subcategory includes grants-in-aid, trainee stipends, tuition and fee waivers, and prizes to undergraduate students. It does not include funds for which services to the institution must be rendered, such as payments for teaching.
6700 Fellowships
This subcategory includes grants-in-aid and trainee stipends to graduate students. It does not include funds for which services to the institution must be rendered, such as payments for teaching.
An auxiliary enterprise exists to furnish goods or services to students, faculty, or staff, and charges a fee directly to, although not necessarily equal to, the cost of the goods or services. The distinguishing characteristic of an auxiliary enterprise is that it is managed as an essentially self-supporting activity. Examples are residence halls, food services, intercollegiate athletics (only if essentially self-supporting), college stores, faculty clubs, faculty and staff parking, and faculty housing. Student health services, when operated as an auxiliary enterprise, also are included. The general public may be served incidentally by auxiliary enterprises. Hospitals, although they may serve students, faculty, or staff, are classified separately because of their financial significance.
The auxiliary enterprise category includes all expenditures relating to the operation of auxiliary enterprises, including expenses for operation and maintenance of plant and institutional support. Also included are other direct and indirect costs, whether charged directly as expenses or allocated as a proportionate share of costs of other departments or units.
This category includes the following subcategories:
7010 Student Dining Services (Aux)
7020 Student Housing (Aux)
7030 Student Health (Aux)
7040 Stores and Shops (Aux)
7050 Student Activities – Std Unions/Rec Facilities (Aux)
7051 Student Activities – Rec & Intramural Programs (Aux)
7052 Student Activities – Other (Aux)
This subcategory includes expenditures for auxiliary enterprise activities primarily intended to furnish services to students. A student health service, when operated as an auxiliary enterprise, is included. However, intercollegiate athletics are excluded from this category.
7100 Auxiliary Enterprises – Faculty/Staff
7110 Parking and Transportation (Aux)
7120 Publications (Aux)
This subcategory includes expenditures for auxiliary enterprise activities primarily intended to provide a service to the faculty and/or staff. Such activities include the faculty club, faculty/staff parking, and faculty housing.
7200 Intercollegiate Athletics (Aux)
This subcategory includes expenditures for an intercollegiate sports program when the program is operated in accordance with the definition of an auxiliary enterprise, which means that it is essentially self-supporting.
7300 Auxiliary Enterprises – Other
This subcategory includes expenditures for auxiliary enterprise activities primarily intended to furnish goods and services that are related to the higher education mission. Customers of these goods and services will primarily not be students, faculty, or staff. Entities of this type are formed to meet the geographic and public service needs of a region and generally relate to an institution’s mission of either teaching, research, or public service. Examples of such an entity would be a drug testing center or a university press department.
OTHER SELF-SUPPORTING ENTERPRISES
7350 Other Self-Supporting Enterprises
This subcategory includes activities that were primarily established to provide goods and services to other internal units on a fee for service basis. The following characteristics assist in identifying these units:
8000 Hospitals
The hospital category includes all expenditures associated with the patient care operations of a hospital, including nursing and other professional services, general services, administrative services, fiscal services, and charges for physical plant operations and institutional support. Also included are other direct and indirect costs, whether charged directly as expenses or allocated as a proportionate share of costs of other departments and units. Expenditures for activities that take place within the hospital, but that are categorized more appropriately as instruction or research, are excluded from this category and accounted for in the appropriate categories.
The independent operations category includes expenditures that are independent of or unrelated to, but that may enhance the primary missions of, an institution. This category generally is limited to expenses associated with major federally funded research laboratories. Excluded are expenses associated with property owned and managed as investments of the institution's endowment funds.
Expenditures of independent operations are identified by the same criteria as educational and general expenditures to distinguish them from transfers. Mandatory transfers follow the same criteria of identification as educational and general mandatory transfers to distinguish them from expenditures and non-mandatory transfers. Non-mandatory transfers follow the same criteria of identification as educational and general non-mandatory transfers to distinguish them from expenditures and mandatory transfers.
This subcategory includes the following category:
8500 Independent Operations/Institutional
This subcategory includes separately organized operations owned or controlled by an institution but unrelated to, or independent of, the institution’s missions. This subcategory generally includes commercial enterprises operated by the institution but not established to provide services to students, faculty, or staff or to provide support to one or more of the institution’s missions. Activities operated as auxiliary enterprises (i.e., those established to provide a service to students, faculty, or staff and charging a fee related to the cost of the service) are excluded from this subcategory. Operations with commercial aspects that primarily support instruction, research, and/or public service (for example, hospitals and ancillary support activities) are excluded. Also excluded are activities operated as a part of the institution’s endowment funds.
Other Expenditure Function Codes
Revenue Only Projects - 9990
Agency Projects - 9970
The following two categories of expenditures are reserved primarily for General Ledger use. Do not use except for exceptional central accounting purposes.
Balance Sheet Only Projects
Clearing and Suspense Projects - 9800
Balance Sheet Projects - 9810
Loan Funds - 9820
Investments - 9830
Other - 9840
Capital Projects
Capital Projects - 9700
Renewal and Replacement Projects - 9710
Effective: 07/01/01
Revision: 2 04/29/05
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