HBP Part 2.2.3. Designated Funds--19-Accounts

Handbook of Business Procedures

Date published:July 29, 2011
Last revised: July 29, 2011
Issued by: Financial Accounting and Reporting


A. Purpose

Designated funds (19-accounts) are allocated by The University of Texas at Austin’s governing board or management to use for special purposes and to provide services to the university and to the community. These funds can be modified by management at any time.

B. Source of Funds

These accounts are funded by designated tuition and mandatory student fees, discretionary student fees, conferences or seminars, continuing education, indirect cost recovery (IDC), and miscellaneous income.

C. Terminology

There are various types of designated funds.

Types of Designated Funds

Type Definition Rate Review Rate Approval
Designated Tuition/Mandatory Student Activity Charges Designated tuition and student activity charges authorized in the Texas Education Code, including board approved courses and college and program activity charges. Provost Provost / Tuition Policy Advisory Committee (TPAC) / President/ Regents
Discretionary and Optional Student Fees Fees associated with voluntary student services, charged only to the students who elect to make use of the service or item for which the fee is established, e.g., standardized testing, application, late registration, etc. Provost Provost
Conferences or Seminars Registration fees for conferences, workshops, and seminars. Dept Department Head, Dean, or VP
Continuing Education Services include short courses, workshops, seminars, conferences, and camps, as well as testing and consulting services. For example, Thompson Conference Center fees for noncredit instructional services to the general public or outside groups are designated funds. Dept Department Head, Dean, or VP
Indirect Cost  Recovery Facilities and Administrative (F&A) Indirect Cost (IDC) Recovery earnings from 26-accounts (sponsored project awards) and Indirect Cost Return (ICR) allocated to departments. Accounting and Financial Management / VP for Research Applicable governing body
Miscellaneous Income Royalties, endowment compliance, investment, administrative charges, trademarks, University Interscholastic League (UIL), and business services contracts. Various Various

D. Transfers

  • Transfers between designated funds (19-accounts) are allowed, if the accounts have similar characteristics, but restrictions apply based on the source of funds, which can be found on the account profile. Examples include:
    • Student activity accounts can transfer to student activity accounts.
    • ICR accounts can transfer to other ICR accounts.
    • Accounts assessed the university administrative charge can transfer to like accounts.
    • Accounts with centrally funded fringes can transfer to like accounts.
  • With approval from Accounting and Financial Management, designated funds (19-accounts) can transfer funds to the following account groups on a case-by-case basis:
    • Service Center Funds (18-Accounts)
    • Auxiliary Expenses (29-Accounts)
    • Gift Funds (30-Accounts)
    • Unexpended Plant Funds (36-Accounts)
  • Designated funds (19-accounts) cannot be transferred to the following account groups:
    • Education and General funds (14- and 20-accounts) (Except by central administration for institutional budget purposes)
    • Sponsored Projects (26-Accounts)
    • Agency Funds (41-Accounts)

E. Rules and Restrictions

  • Purchasing and payment procedures for local accounts belonging to The University of Texas at Austin must be followed.
  • Entertainment expenses may be allowed if the Entertainment and Official Occasions Expenditure Policy is followed.
  • Gift income is not allowed.
  • Subscriptions are allowed.
  • Individual memberships to professional organizations are allowed when benefit to the university can be shown.



Part 2. Fund Accounting - Table of Contents