IFAS Internal Management Memoranda

IFAS; Procedures for Requesting Fund Category Conversions

EFFECTIVE DATE: December 1, 1993

INTERNAL MANAGEMENT MEMORANDUM NUMBER: 6C1-6.20-2 (Revised)

SUBJECT: IFAS; Procedures for Requesting Fund Category Conversions

  1. The State Legislature currently appropriates General Revenue Funds to all State agencies, including the Institute of Food and Agricultural Sciences. In addition, the Legislature authorizes budget authority by fund category for all sources of funds (i.e., General Revenue, Federal Formula, Extension Incidental, and Contracts and Grants).
  2. General Revenue, Federal Formula and Extension Incidental Funds are allocated in lump sum by source to all IFAS units by the Vice President and the Deans. These funds are then placed in categories as follows by each budgetary unit.
    1. Other Personal Services (OPS)
    2. Operating Expense (OE)
    3. Operating Capital Outlay (OCO)
    4. Special Categories (i.e., Electronic Data Processing (EDP), some in specific program areas and others as established by the Legislature).

  3. Contract and Grant direct cost funds are released to appropriate Principal Investigators in the following categories based on a sponsor-approved budget and/or a Budget Allocation form:
    1. Salary
    2. Other Personal Services (OPS)
    3. Operating Expense (OE)
    4. Operating Capital Outlay (OCO)
    5. Federal Demonstration (OTH)

    The balance of funds awarded are released to IFAS as indirect costs recovery.

  4. During the fiscal year a Unit Administrator, for programmatic reasons, may need to convert funds from one category to another. If such a need arises, the following information and procedures for converting General Revenue, Federal Formula or Extension Incidental Funds should be used to obtain approval for fund category conversions:
    1. Unit Administrators will first determine if the fund category conversion can be accomplished between accounts (of the same fund source) within their unit. If so, complete the IFAS Allotment Transfer/Category Conversion Form 2686 (see attached copy) and send it to IFAS Fiscal Services for appropriate conversion.
    2. If the category conversion cannot be accomplished between accounts (of the same fund source) within their unit, then complete IFAS Allotment Transfer/Category Conversion From 2686 and send it to IFAS Planning and Business Affairs.
    3. Action by IFAS Planning and Business Affairs:
      1. If the conversion can be accomplished within available reserve category budget authority, it will be processed and the unit will be notified.
      2. If the conversion cannot be accomplished within available category reserve budget authority, IFAS Planning and Business Affairs will contact appropriate units and attempt to arrange an exchange. If successful, the conversion will be processed and the unit will be notified.
      3. If an exchange cannot be arranged, then IFAS Planning and Business Affairs will request the conversion by Budget Amendment. These are normally submitted on the following dates:
        September 10, December 10, and March 10.
      4. As soon as the Budget Amendment is approved the Category conversion will be processed and a copy will be sent to the unit concerned.

  5. A Principal Investigator or Unit Administrator, for programmatic reasons, may need to convert contract and grant funds from one category to another. If so, the following procedures apply.

    1. Sponsored Restricted Grant Funds:
      1. The Principal Investigator (PI) will contact the IFAS Sponsored Programs Office for a review to insure that the proposed category conversion is programmatically acceptable. If so, the Principal Investigator (PI) will request the category conversion by completing IFAS Allotment Transfer/Category Conversion Form 2686 and sending it to IFAS Sponsored Programs. The following information must be included on Form in the section entitled "Reason For This Transfer" prior to the Unit Administrator's signature:
        1. Justification as to need for funds in category to be increased.
        2. Justification as to why funds are no longer needed in the category to be decreased.
        3. Statement by Principal Investigator that the category conversion will not change scope of project.
        In addition, category conversions that are for OCO need:
        1. Identification of equipment
        2. Dollar amount of item
        3. Prior approval from the sponsor for conversions over $1,000 if required by the agency.
      2. Action by IFAS Sponsored Programs:
        1. IFAS Sponsored Programs will review category conversion requests for completeness.
        2. If the conversion request is not in accordance with the terms of the contract or grant and/or sponsor approval is required, the request will be returned to the Principal Investigator to obtain sponsor's written approval. Upon receipt of the written approval, the PI may resubmit the conversion request, with written approval attached.
    2. Indirect and Combined Grant Funds:
      1. Unit Administrators and/or Principal Investigators will request these category conversions by completing IFAS Allotment Transfer/Category Conversion Form 2686 and sending it to IFAS Contracts and Grants Accounting for appropriate action. Justification is not necessary for such category conversions.
      2. Action by IFAS Contracts and Grants Accounting: The conversion will be processed and unit will be notified.