INTRAFUND TRANSFERS UNDER RCM 
Under RCM, the University has been divided into 21 units (RC units), each with its own reserve. A reserve is an accounting item, not related to budgets. To generate reserves, units must generate net revenue (actual revenue less actual expenditures). Unit reserves are calculated by the following formula:
total revenue
- total expenditures
net from operations
+ beginning reserve
ending reserve
Budget transfers serve as an authorization to spend but do not move reserves that can be used in future years. As exemplified above, budgets do not affect the reserves of a unit, rather actual performance is the driver. There are various financial agreements across the University involving multiple responsibility centers. Many of these agreements are temporary in nature and can vary widely in dollar amounts from one year to the next. This is in contrast to agreements that are more of a permanent nature with fixed amounts and a "contract" in place between the units. In this case, a permanent transfer of budgets would be more appropriate. We will discuss alternatives to satisfy these financial agreements while operating within University guidelines.
For simplification purposes, we will use the Honors Program as an example. The Honors Program is part of the Academic Affairs RC unit.The Honors Program (Academic Affairs) costs are shared among the schools/colleges as well as the Honors Program.All tuition revenue associated with the program is received by the Academic Affairs unit. Academic Affairs will reimburse each of the schools/colleges on a semester basis based on the cost of the honors activity at each of the schools/colleges.The activity can shift significantly between units from one year to the next depending on which courses are offered.The example we will use is for the Fall Semester, COLA is to be funded in the amount of $10,000 by Academic Affairs for expenses incurred for Honors program activities.
Budget Move: According to USNH Financial and Administrative Procedure 2-43, a budget move is not an accounting entry at all and therefore would not effect unit reserves. An expense budget transfer could be made to COLA by reducing Academic Affairs' expenditure budget and increasing COLA's expenditure budget. While this increases COLA's spending authority, it does not increase their revenues, thus, the expenditures would be processed without a matching revenue stream, incorrectly reducing COLA's reserve:
Actual revenue
Actual expenditures $10,000
Net contribution to reserves
($10,000)
Intrafund Transfer: To achieve the goal of accurate accounting for unit reserves, transfers of actual revenues and expenditures must occur. This is in line with USNH Financial and Administrative Procedure 2-43 (Cost Allocations or charge-backs). In this example, costs are shared by the school/college and the Honors Program. The transfer of actual funds back to the school/college is viewed as a reimbursement of expenses incurred for instruction of honors students. Under RCM, special transfer codes would be used to identify the transaction. The codes can only be used within general funds (1U prefix) and are self-balancing transactions: revenues = expenditures. These intrafund transfers do not require the approval of the VPFA office but will be reviewed by the Controller's Office for reasonableness and compared to the attached “RC Unit Transfers Inventory List”. Transfers of this type that are not on the attached list will be referred to the VPFA office for approval.
Using the example:
Academic Affairs would transfer $10,000 (Expenditure transfer – 8O1051 code) to COLA who would record as revenue (8I1051 code). This then gives COLA $10,000 to reduce net expenditures and contribute toward unit reserves. Because these units are both within Fund 1000, the transfer nets to zero. The account code used here is a transfer code specific to the Honors program. For generic transfers among RC units, the 8I1030/8O1030 codes would be used.** See below for accounting details.
Interfund Transfer: NHPTV and UNHM continue to use regular transfer codes since they are not included within the UNH accounting domain. Attached is a preliminary inventory of transactions that fall under the guise of this document.**
Accounting details for intrafund transfer example:
When performing an intrafund transfer, budgets must be adjusted as well to accommodate the actual revenues and expenditrues:
Sending RC Unit (Academic Affairs):
1. JV – BD04 rule code - decrease supplies account budget $10,000
2. JV – BD04 rule code - increase transfer account code budget $10,000
3. JV – JE14 rule code - debit transfer account code $10,000
1. JV – BD04 - increase supplies account code budget $10,000
2. JV – BD04 - increase transfer account code budget $10,000
3. JV – JE14 rule code – credit transfer account code $10,000
Transfer Inventory:
From Academic Affairs to other RC units:
| Honors Program in support of faculty costs - occurs throughout the academic year | |
| International Affairs in support of faculty costs - occurs throughout the academic year | |
| Academic Affairs to colleges for class access | |
| Academic Affairs to COLSA for Project Smart | |
| Academic Affairs to Mask and Dagger Society | |
| Academic Affairs to colleges for faculty time buyouts and faculty support |
From Student Affairs to other RC units:
| Student Affairs to Academic Affairs in support of orientation programs for International Students |
From VPResearch to other RC units:
| Research support transfers to other RC units to support start-up, cost share, equipment purchases |
Presidents Office:
| Various transfers to support institutional activities such as support for faculty members |
VP Finance and Administration:
| Central Budget Committee one time allocations |
