02 - 021 USNH Fund Descriptions


1. Unrestricted Current Funds

Unrestricted Current funds include all funds received for which no stipulation was made by a donor or other external agency as to the purpose for which they may be expended. They include the general operating funds of USNH related to its primary mission as well as internally designated funds and auxiliary services.

a. Educational and General (E&G)

i. Undesignated E&G Funds: In Banner, these funds are designated with a "U" as the second letter and are included in the fund type "U".   Following are some examples of the general funds at each of the campuses:

1U0000 - University of New Hampshire (UNH) Institutional Educational and General
5U0000 - Keene State College (KSC) General Operating
6U0000 - Plymouth State University (PSU) Educational and General
7U0000 - Granite State College (GSC) Education and General
9UG000 - Chancellor's Office (SYS) University System E&G

Campuses may create additional E&G funds as needed.  In addition to specific general funds for each Responsibility Center (RC) unit, UNH has six Program Appropriation Unit (PAU) fund's associated with its general fund activities:

1UR020 - Industrial Research & Consulting Center
1UB022 - Agricultural Experiment Station - State Station
1UB023 - Agricultural Experiment Station - State Forestry Offset
1UR024 - Marine Research and Development
1UX026 - Cooperative Extension Service - State PAU
1UX028 - CES - Extension Work in Counties

Undesignated E&G Revenues are recorded according to their source. Examples include student tuition and fees; State of NH general appropriations; general sales and services of educational departments and undesignated investment income.

Undesignated E&G Expenditures include those incurred for goods and services used in the conduct of the institution's general operations which are supported by Unrestricted, Undesignated E&G Current Revenue.  Expenditures are recorded by natural classification in account pools representing the following spending categories: salaries and wages, fringe benefits, supplies and services, financial aid and participant support, grant subcontracts, capital equipment and construction related expenses.

ii. Internally Designated Funds:

The Internally Designated classification of E&G funds includes balances that are not restricted by an outside donor or agency but have been formally designated for a specific purpose by campus administration. Internally Designated funds are generally self-supporting and require full budgetary spending controls. All revenues are recorded in account codes relating to the type of revenue source, and expenditures are recorded in account codes related to the natural classification of the expense (salaries, supplies, etc).  For financial reporting purposes, Internally Designated funds are treated as a separate segment of Current Unrestricted fund balance. This is due to the fact that these funds are not viewed as being immediately available for general operating needs (although administration may remove their designation at any time and, thus, make them available for general operations).  Internally designated funds use a "D" as the second character of the fund code. 

b. Auxiliary Enterprises

An Auxiliary Enterprise is an operation that exists to furnish goods or services to the university community (students, faculty and staff) and which charges a fee directly related to the cost of the goods or services sold. Auxiliary enterprises are managed as self-supporting operations and, therefore, are allocated their appropriate share of administrative overhead, fringe benefits, facilities maintenance, etc. Auxiliary Enterprises require unique fund(s) to account for their operations. Auxiliary funds are coded with an "A" as the second character of the fund. Examples of Auxiliary operations include, but are not limited to:

  Dining Services
  Student Union Services
  Printing Services

Note: Athletics are accounted for as an Auxiliary Enterprise at UNH only. KSC and PSU athletic programs are accounted for under other Unrestricted Current funds as Student Services.

c. Deferred Revenue and Prepaid Expense Funds

USNH no longer maintains separate funds for different types of balance sheet accounts. All assets and liabilities are recorded within the fund of origin, unless otherwise stipulated by the users. The exception to this is the use of certain funds for deferred revenues and prepaid expenses. These are holding funds during the fiscal year and related balances are moved to the proper balance sheet accounts weekly via an automated process

i. Prepaid Expense Funds
Examples of activity charged to these funds include supply purchases made during the academic year for summer session classes, etc. All of these funds are coded per the convention of their campus current funds. The last three characters must be "PPD".
ii. Deferred Revenue Funds
Examples of activity recorded in these funds include advance tuition payments, student deposits, summer session tuition revenues, etc. All of these funds are coded per the convention of their campus current funds. The last three characters must be "DEF".

2. Restricted Current Funds

Restricted Current funds are those available for financing operations, but which are limited by donors or external agencies, foundations, etc., for specific purposes, programs, departments or schools. Included in this group are grants and contracts, gifts externally designated as to purpose, and restricted endowment income payout funds.

Expenditures of amounts which are externally restricted for the support of specific operations are recorded in the specific restricted funds. In other words, if the source of the funds is restricted as to use, then the use is a restricted expenditure even though the benefit may be derived by an otherwise unrestricted department. For example, when UNH receives a gift from a donor for general support of the Biology department these funds are restricted for use by the Biology department and are recorded as revenue and expenditures within the Biology Department Restricted Gifts fund.

Within Banner, all restricted current funds related to sponsored programs used a numeric value for the second character of the fund code. All other fund types have an alpha character in this location. Sponsored program funds are assigned a Fund Type of "P1" or "P2". Restricted Current-Use Gift funds have a second character of "G" and are assigned Fund Type "G".

a. Sponsored Research and Sponsored Programs
Maintained for externally sponsored activities organized to produce research outcomes, support training activities and account for state and federally sponsored student financial aid funds. Organizations are established as "Multi-Year Project" or grant in Banner and are grouped into funds based on funding agency or source. These funds are included in fund type "P1". Separate funds are created and maintained in Banner for each grant award received.
b. Agricultural/Environmental Research, Public Service and Other
ese funds are used by the UNH College of Life Sciences and Agriculture and UNH Cooperative Extension Service units to maintain accountability for activities sponsored by agricultural research sales, and other governmental sources such as Hatch and Smith Leaver funds. These funds are assigned fund type "P2".
Restricted Current Gifts and Endowment Income
e annual payout for each restricted endowment fund, and most current-use restricted gifts require a separate fund code in Banner. These funds are included in fund type "G"


Loan funds have been designated by a donor, the institution, or other legal agreements to be made available for loans to students, faculty and staff. The activity in USNH Loan funds is primarily managed through each campus' student accounts office. In Banner these funds all have an "L" as the second character, and are assigned fund type "L" if created with restricted grant or gift funding or "LU" for unrestricted institutional loan funds.


Endowment funds function similarly to a trust. A sum of money is invested. The income from the investment is made available for use, and the principal remains invested and intact.

Unless there are additional gifts to an endowment fund, the balance of the fund will only change semi-annually when gains/losses on the investments are posted to the funds. Exceptions to this are: donor agreements requiring all income be added to the principal balance until it reaches some pre-designated level, or agreements stipulating any unused income be moved back to principal. In the latter case, the income becomes a permanent part of the principal.

Within Banner, all endowment and similar funds are recorded in funds with a second character of "T" or "Q".

1. True Endowment Funds (Fund type T1 = unrestricted, Fund type T2 = restricted)

These are funds for which donors have stipulated that the principal of the fund is not expendable. That is, the historic gift balance is to remain inviolate in perpetuity (True Endowment) or for an expressed period (Term Endowment) and is to be invested for the purpose of producing income to be expended for the stated purpose.

True Endowment funds may be either restricted or unrestricted. This is determined by the requirements placed upon the use of the income by the donor. As an example, one donor leaves $500,000 to be invested in perpetuity with the income available for general support of the UNH campus; and another donor leaves $100,000 to be invested in perpetuity with the income available to support the UNH College of engineering and Physical Sciences (CEPS). Both are True Endowment funds. They both require the principal balance to be invested. This is a specific request of the donor, not an interpretation of the governing board. The first gift ($500,000) is unrestricted, and the second gift ($100,000) is restricted. In the first instance, the income is available for any use determined by the management. The second requires the funds be used to benefit CEPS. How CEPS spends the funds is determined by the College. However, it is still restricted for financial statement purposes.

The spendable income from endowment funds is recorded in Current funds called a "Payout funds." If the use of the annual endowment payout is restricted, the payout fund in Banner will be a current restricted gift fund. Alternately, if the use of the payout is unrestricted the payout fund will be a current internally designated fund.

2. Quasi-Endowment (Funds functioning as Endowments) [Fund type Q1=unrestricted, Q2=restricted]

These are funds that USNH Presidents (rather than a donor) have requested be retained and invested. Since these funds are not required by the donor to be retained and invested, the principal as well as the income may be utilized at the discretion of the governing board, subject to any donor imposed restrictions on use.

Similar to True endowments Quasi-endowments may be either restricted or unrestricted. The key distinction is that True endowments are binding legal agreements with a third party, whereas Quasi-endowments are designated by the USNH Board of Trustees or campus presidents; as such, they are subject to revocation.

To establish a Quasi-endowment of up to $1,000,000, the President/Chief Executive Officer of the campus should request such a fund in writing via the USNH Treasurer. Quasi-endowment funds greater than $1,000,000.00 must be approved by the Board of Trustees as noted in: http://www.usnh.edu/policy/bot/iv-financial-policies/g-quasi-endowments-also-known-funds-functioning-endowments. Each such request should include the following:

  • A brief description of why management feels the institution is better served by investing the amount as a Quasi-endowment.
  • An indication of how the income will be used (in accordance with the donor's wishes, if applicable).
  • Signature of the President/Chief Executive Officer denoting approval.

3. Life Income and Annuity Funds

Life Income and Annuity funds have an "M" as the second character and are included in the fund type "M".

a. Annuity Funds:
These funds are acquired under agreements whereby money or other property is made available to the institution with the condition that it bind itself to pay stipulated amounts periodically to the donor. The payments terminate at a time specified in the agreement, and the remaining balance is retained by the institution.
b. Life Income Funds:
These funds are acquired under agreements where money or other property is available to the institution with the condition that it bind itself to pay the donor the income earned by the assets during their lifetime. Depending upon the agreement, the principal then becomes available to the institution as either Current funds or Endowment funds.


1. Unexpended Plant Funds

Fund balances of Unexpended Plant funds represent amounts earmarked for plant projects which remain unexpended at the reporting date. Additions to unexpended plant fund balances include State of N.H. capital appropriations and transfers from other fund groups to support specific construction projections. Reductions include disbursements for construction and plant operations. Unused unexpended plant balances are returned to the original source of funds upon completion of the related project.

Amounts budgeted annually for campus Renovation and Adaption (R+A) amounts reside in Unexpended Plant funds until expended on a related project.

2. Net Invested in Plant Funds

The Net Investment in Plant fund balance represents the excess of the depreciated cost of plant assets over associated liabilities. Additions to this fund arise from capitalization of plant project costs; purchases of buildings and capital equipment; or from gifts of plant assets (i.e., gifts in kind). Reductions in the fund balance result from the recording of depreciation; disposal, abandonment, or sale of plant assets; or the issuance of external debt to fund costs of new construction or renovation projects.

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.

This page last updated Monday, June 22, 2015. For information on the adoption and effective dates of policies please see explanation on the OLPM Main Menu.