TO: Collegiate & Auxiliary Budget Officers
GLDSS Listserv Members
FROM: Selina Martin, Associate Controller, Financial Reporting & Analysis
Audra Haddy, Associate Controller, Post Award Compliance & Administration
Steve Romont, Director of Accounting & Financial Reporting
RE: Function Code Definitions
DATE: February 25, 2015
A functional classification is a method of grouping expenses according to the purpose for which costs are incurred. They are tracked by the use of function codes which are a part of our MFK & WhoKey. We would like to inform you that updated and expanded function code definitions are now published on the Accounting & Financial Reporting’s Accounting Code Manual at http://www.bo.uiowa.edu/~glaccman/index.cfm?action=glaccman.functionindex.
Over the last several months, we have been working with a select group of Budget Officers to review documentation provided by NACUBO (National Association of College & University Business Officers) and other federal guidance on function code definitions. Our goal was to arrive at final definitions which are most relevant and meaningful to our institution. Please review the definitions to make sure that existing and future new WhoKeys are consistent with the guidance provided. We have already been collaborating with specific units across campus to submit WhoKey changes in order to align with the updated definitions, specifically the research functions.
It is very important that we understand and are consistently compliant with the use of function codes in our accounting structure and financial accounts. The use of function codes have implications on important internal and external reporting requirements including but not limited to the following:
- University's Audited Financial Report
- Federal F&A Rates
- Board of Regent’s Performance Based Funding Metrics
- Board of Regent’s Cost of Instruction
- Board of Regent’s Budget by Function Code
- Annual IPEDS Survey (Integrated Postsecondary Education Data System)
Please forward this memo to all staff who should be aware of this information. If you have any questions, please contact Selina Martin (335.0728) or Audra Haddy (335.0827).