‘Did Somebody Say FOAPAL?’ Special Tip Series: Putting the F in FOAPAL
While a little longer than we like our tips to be, we’ve done what we can to use plain language. As always, please let us know where we can do a better job (facts@carleton.ca)!
What is a Fund?
The term fund comes from accounting terminology for fund accounting. It is a segregated pot of money set aside for a specific purpose.
In relation to the FOAPAL, it is called a ‘fund code’. This term is used when referring to the first 6-digit element of a FOAPAL.
What else is it called?
As with any profession, we accountants struggle with jargon, acronyms and nicknames. Jargon, acronyms, and nicknames are a bad habit which hampers our communication with the rest of the campus community. This is a bad habit that we are trying to break. While we work on this, here are a few other fund-related terms that you might run across.
Fund Number: This is a term that we in Financial Services use instead of Fund Code. They mean the same thing.
Account: Term misused by the campus community instead of Fund Code. An example of this is “My research account number is xxxxxx”. Account is one of the ‘A’s in FOAPAL, which we’ll cover in the upcoming weeks.
Why is it important?
Financial Services will specify the type of Fund you require and will provide you with a Fund Code (i.e. 6-digit number). This Fund Code identifies which fund (i.e. pot of money) that related transactions belong to and the policies and laws that govern the use of that money. For example, if you have authority over both an operating fund and a research fund the rules governing each of these funds may differ.
Carleton has over 6000 individual Funds that are grouped into common categories:
- Operating (100000) – Where we, as a university, record all transactions associated with our main function of instructional teaching. Consists of just 1 fund which is shared by over 120 departments.
- Ancillaries (12xxxx) – Where we, as a university, record all transactions that are supportive of but not directly related to our primary function of teaching (e.g. Athletics, Housing, Parking).
- Endowments (6xxxxx) – Where we, as a university, record all transactions associated with donated funds that must be held in perpetuity; only the annual income earned is available for distribution in the form of scholarships and bursaries.
- Scholarships (2xxxxx) – Where we, as a university, record all transactions associated with donated or endowment generated funds that are restricted for student aid (i.e. scholarships and bursaries)
- Plant & Capital Projects (9xxxxx) – Where we, as a university, record all transactions associated with funds expended on fixed assets (e.g. equipment, buildings) and major renovations/repairs.
- Special Purpose (26xxxx) – Where we, as a university, record all transactions associated with donations or interest earned on Endowments for specific endeavors, other than those noted above (e.g. lecture series).
- Funds in Trust (FIT) (8xxxxx) – Where we, as a university, record all transactions associated with funds created when an outside organization provides money to be administered by Carleton University on their behalf.
- Externally Sponsored Research (3xxxxx) – Where we, as a university, record all transactions associated with research activities that are funded by external granting agencies (e.g. NSERC, SSHRC)
- Internally Restricted Research/Enterprise (18xxxx) – Where we, as a university, record all transactions associated with research related activities that are funded by the university’s own funds as well as various commercial activities.
- Restricted Non-Research Grants & Contracts (7xxxxx) – Where we, as a university, record all transactions associated with externally sponsored non-research activities, such as professional development
The Take Away?
It is important to get your Fund Code right and know the policies and/or laws that apply to your fund!
Where do I find more information?
Further information on funds contact financial.services@carleton.ca or accounting@carleton.ca.
Next week, we’re putting the ‘O’ in FOAPAL. Stay tuned!