Handbook of Business Procedures
June 2, 2009
March 11, 2011
Financial Accounting Services
2.2.8. UNEXPENDED PLANT FUNDS—36-ACCOUNTS
Plant funds include unexpended plant funds and renewal and replacement funds. Unexpended plant funds are funds specified by the Board of Regents or by other sources for the acquisition, construction, or improvement of physical properties to be used for institutional purposes. Renewal and replacement funds are funds specified by the Board of Regents or by other sources to be used for the renewal and replacement of plant fund assets.
Funding for projects comes from various sources:
- Permanent University Fund (PUF) bond proceeds
- Available University Fund (AUF)
- Investment income
- Revenue Financing System (RFS) and Tuition Revenue Bond (TRB) proceeds
- Federal, state, and local grants
- Auxiliary balances
- Other (includes designated tuition, facilities and administrative recovery, other self-supporting designated balances, insurance claims, and land proceeds)
- Project Accounts
Each funding source is accounted for separately within the budget group in order to keep a historical record of how the project was funded. Account balances continue from year to year depending upon the length of the project. Projects that meet certain requirements are capitalized upon project completion and recorded to the permanent capital asset schedules on the annual financial report.
- Capital Improvement Plan (CIP)
The University of Texas System maintains a system-wide capital improvement plan. New construction and renovation projects are included on the CIP if they cost in excess of $4 million, have any type of debt financing, or are historically significant.
- Project Management
Projects are managed by various groups depending upon the scope of the project.
- CIP Projects—The UT System Office of Facilities Planning and Construction normally provides project management and accounting services for new construction and renovation CIP projects.
- Non-CIP Projects—The University of Texas at Austin Project Management and Construction Services and Facilities Services normally provide project management and accounting services for renovation projects, including some CIP projects.
Interbranch transfers from UT System consist of PUF, RFS, and TRB proceeds. Interfund transfers include transfers from auxiliary funds, AUF, designated funds, and restricted funds. Transfers from service centers are generally not allowed. Direct transfers from general funds, transfers from loan funds, endowments, and agency funds are not allowed.
- Expenditures must be directly related to the project.
- Restrictions pertaining to the original funding source also apply to the project account.
- Operating income cannot be deposited directly into plant fund accounts. Such income should be deposited into the appropriate operating fund account and then transferred to the plant fund account.
- Salaries cannot be directly charged to 36-accounts, but may be transferred in as distributed wages.
- University purchasing procedures must be followed. If a project is funded with AUF funds, then state purchasing rules must also be followed.
- No entertainment expenditures are allowed.
- Travel is rarely used in connection with a project.
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