Revenue Classifications
Unrestricted and restricted current funds revenues should be grouped into the following major classifications by source of funds. The list below describes all classifications available, per the AICPA鈥檚 Audit Guide Statement of Position (SOP); however,the bolded classifications below are those adopted by the State Controller for Colorado institutions and used by CU.
- Tuition and Fees
- Federal Appropriations
- State Appropriations
- Local Appropriations
- Federal Grants and Contracts
- State Grants and Contracts
- Local Grants and Contracts
- Private Gifts, Grants and Contracts
- Endowment Income
- Sales and Services of Educational Activities
- Sales and Services of Auxiliary Enterprises
- Sales and Services of Hospitals
- Other Sources
- Independent Operations
CU breaks out its investment and interest income separate from the 'other sources' classification, and its indirect cost revenue separate from the grants and contracts categories.
In addition, revenue accounting at the University of Colorado is also influenced by the section of the OUC's Accounting Handbook.
Some of these revenue classifications can be a little challenging to understand. One thing that helps in understanding the revenue classifications is to look at the expense classifications. We have options of classifying expenses naturally or functionally. Natural classification is based on the nature of each type of expense, such as salary, operating, travel, equipment, etc. This type of classification is useful for organizations to identify how resources are used internally. The functional classification includes categories such as educational and general, auxiliary enterprises, hospitals, independent operations and their subcategories. CU uses these categories for our external, annual financial reports. These categories have been codified by the National Association of College and University Business Officers (NACUBO) and are widely used in higher education to provide the greatest comparability of data among institutions.
The following functional classifications are used by CU:
- Educational and General (E&G)
- Instruction
- Research
- Public Service
- Academic Support
- Student Services
- Institutional Support
- Operation and Maintenance of Plant
- Student Aid
- Depreciation
- Auxiliary Enterprises
- Health Services
By comparing the revenue classifications to the functional classifications, it becomes apparent there is a correlation between the two, as illustrated in the chart below.
| Revenues | Functions |
|---|---|
Educational and General (E&G)
| Educational and General (E&G)
|
| Auxiliary Enterprises Internal Revenues | Auxiliary Enterprises |
| Health Services | Health Services |
| Other Operating Revenues Other Non-operating Revenues | Other Operating Expenses Other Non-operating Expenses |
Since there is an obvious correlation between auxiliary enterprise, health services and other revenues and functions, it is logical to conclude that the remaining revenues fund the education and general expense functions.
This now gives a little clearer picture on how to view and understand the current funds revenue and expense accounting. The discussion will concentrate on the education and general and auxiliary functions. CU 麻豆影院 does not have health services (i.e. a hospital), as Wardenburg Medical Services does not qualify as a hospital for this purpose.
Before beginning the revenue discussion, understand that not all revenue account codes are available for use, nor appropriate, in all funds. The fund-account edit table in the Finance System restricts the use of revenue accounts to certain funds. Contact CCO for assistance in navigating to this table in the Finance System.