The UC Merced Office of the Controller is issuing the following guidance related to recording financial transactions using Function 76, Function 80, and Agency Funds in the Oracle Financial System.
The UC Office of the President has clarified the use of Function 76, Function 80, and Agency Funds with system-wide Accounting Procedure updates. This updated guidance takes into consideration the Common Chart of Accounts (CCoA) and CFS file schemas that transmit UC Merced’s data from our local Oracle instance to the consolidated financial statements.
Function 76, Function 80, and Agency Fund activities are defined below.
Function 76 – Auxiliary Enterprises
Function 76 must be used exclusively with Auxiliary Fund numbers (fund series 11XXX) and specifically designated State funds. Transactions coded to Function 76 with a non-Auxiliary fund source will not be accepted for processing. To help our campus partners with this task, a cross-validation rule was activated in Oracle on September 4, 2024, and transactions coded to Function 76 with a non-Auxiliary fund source are automatically rejected.
Function 80 – Provisions for Allocations / Non-Reportable
Function 80 must be used exclusively with Gift, UCOP and Foundation Endowments, and Agency Fund Sources only as these funds are not owned, and as a result are not reported, by UC Merced. On October 1, 2024, a cross-validation rule will be activated in Oracle and transactions coded to Function 80 with fund outside of the fund sources listed above will be automatically rejected.
Agency Funds – Fund Series 5000X
In addition to the Function 80 guidance above, Agency Funds must be used solely with account 590002 – SUSPENSE. Agency Funds are funds held for others; these funds (for example, Student Club funds), are not under the financial ownership of UC Merced. All Agency Fund activity is considered non-reportable for UC Merced and should not be recorded in any manner that gives the appearance of UC Merced operational expense. On October 1, 2024, a cross-validation rule will be activated in Oracle and transactions coded to Agency Funds with any other account aside from 590002 will be automatically rejected.
When recording financial transactions to Function 76, Function 80, and/or Agency Fund 5000X, please follow the COA coding rules defined above. Your proper coding will help to ensure our campus is using valid COA combinations that are acceptable at both the local and systemwide reporting levels.
Next Steps:
Financial and Accounting Services and the Office of the Controller will work with campus partners to reclassify any FY2025 activity coded to invalid combinations pertaining to the updated guidance above. CBS2 and Procurement will work with campus partners to ensure only valid COA combinations are on active Purchase Orders.
Questions? Please reach out to Amanda Preston-Nelson, Associate Vice Chancellor and Controller.
