Section 1: Trainee Information

Use your Tab key to move from field to field.

Name:	Date:
Institution:	Email:

Section 2: Current Funds

Place an “X” in the box next to the two basic subgroups of Current Funds

Available and Unavailable Funds

Unrestricted and Restricted Funds

State and Local Funds

Federal and Non-federal Funds

Place an “X” in the box next to the three fund categories of Unrestricted Current Funds

Unrestricted

Restricted

Auxiliary Enterprises Funds

Federal Grants

Educational and General Funds

Retirement of Indebtedness

Agency Funds

Designated Funds

Select the fund type from the drop down list that type best matches the revenues recorded for each.

Student Service Fees, food services, bookstores -

Donation and related income to purchase musical instruments -

Professional fees, sales and services of educational activities -

Tuition, appropriations -

Externally imposed restrictions are not the same as internal designations imposed by the governing board, even though they both specify the purpose for which funds may be expended. True OR False?
True	False

A transfer from Educational and General Funds to Designated Funds for tuition set aside requirements for the Texas Public Education Grant (TPEG) Program is an example of (place an “X” in by your answer)

Mandatory transfer

Non-mandatory transfer

Discretionary transfer

Interfund borrowing

Complete the sentence below.

Students paid tuition and fees of $50,000 during fall registration. Designated Tuition accounts for $10,000 of the total amount collected. Student Service Fees totaled $15,000, all of which is to be used in support of the University Bookstore. Assume that $3,000 of the Designated Tuition was allocated to capital projects. This transfer is - .

Section 3: Loan Funds and Agency Funds

Loans to students are accounted for in the Loan Funds fund group, whereas other types of financial aid like grants, and college work study programs are generally accounted for in Designated or Restricted Funds. True OR False?

True	False

Administrative costs for processing loans are reported as expenses in Loan Funds. True OR False?

True	False

When Loan Funds are operated on a revolving fund basis, the institution makes new loans from the original capital and also from payments of principal and interest from the existing loans. True OR False?

True	False

Place an “X” by the three offices within an institution that should work together to properly administer Loan Funds:

Development Office

Athletics office

Business Office

Student Financial Aid Office

Library

Health

Dean of Student

Agency Funds are funds the university holds as custodian or fiscal agent (for example: student organizations). True OR False?

True	False

The fiscal year end net assets in Agency Funds are reported on the SRECNA. True OR False?

True	False

Section 4: Endowment and Similar Funds

A donor gave money to the University and requested that the income earned on the donation be used to buy musical instruments for the Music Department. The principal would be recorded in:

Restricted funds

Designated Funds

Endowment and Similar Funds (Other than State)

Educational and General Funds

A donor gave the University a check and specified that the donation be used to further research on alternative fuel sources. No other restrictions or limitations were placed on the funds. The donation should be recorded in:

Educational and General Funds

Designated Funds

Restricted Funds

Endowment and Similar Funds (Other than State)

A donor gave the University a check and specified that the donation be used to further alternative fuel sources. No other restrictions or limitations were placed on the funds. Assuming the donor’s check was deposited into Current Funds and management received Board approval to move the funds to Endowment and Similar Funds, what type of endowment would it be?

True Endowment

Funds Functioning as Endowment - Restricted

Term Endowment

None of the above

A donor gave the University a check and specified that the donation be used to further research on alternative fuel sources. No other restrictions or limitations were placed on the funds. How are the funds moved to Endowment and Similar Funds?

As a “Due to Endowment and Similar Funds”

As a “Due from Endowment and Similar Funds”

Via a Mandatory Transfer

Via a Non-mandatory Transfer

Jack Nicholson gave $1,000,000 to the University to establish an endowment and specified that the income should be used for “further advancement of the Performing Arts.” He also stipulated that after 15 years the principal should be used for loans to drama students.

The funds should initially be deposited into Loan Funds. True OR False?

True	False

The endowment would be considered a True Endowment. True OR False?

True	False

After 15 years, the principal will be transferred from Endowment and Similar Funds to Loan Funds. True OR False?
True	False

Jack Nicholson gave $1,000,000 to the University to establish an endowment and specified that the income should be used for “further advancement of the Performing Arts.” He also stipulated that after 15 years the principal should be used for loans to drama students.

Income from the Endowment would be classified as

Restricted

Unrestricted

A gift

None of the above

A donor established an endowment, the income from which would be used to buy computer equipment. What type of endowment is it?

Term Endowment

True Endowment

Funds Functioning as Endowment – Restricted

None of the above

The Board of Regents approved the transfer of Designated Funds to Endowment Funds. What type of endowment would it be?

True Endowment

Funds Functioning as Endowment - Restricted

Funds Functioning as Endowment - Unrestricted

Term Endowment

Section 5: Endowment and Similar Funds – State

The University of Texas System may issue PUF bonds in aggregate up to % of the book value of the PUF.

The Texas A&M System may issue PUF bonds in aggregate up to % of the book value of the PUF.

The proceeds of PUF bonds issued by U. T. System are used for capital projects and major renovations at U. T. System institutions. True OR False?
True	False

The Available University Fund is made up of dividends and interest on PUF investments and surface income from PUF lands. True OR False?
True	False

A donor gave the university a check for $1,000,000 with the stipulation that he receives the income earned on the donation until his death. This would be a(n)

Endowment

Annuity contract

Life Income contract

None of the above

If a donor gives money to a university and requests that only the income earned on the donation be used for a particular purpose, or by a certain department, the donation would be recorded as a(n)

Endowment

Annuity contract

Life Income contract

None of the above

Mr. Johnson donated money to the university but requested that a portion of the money be returned to him along with the income earned on the money until his death. This would be a(n)

Endowment

Annuity contract

Life Income contract

None of the above

Section 6: Plant funds

Select the three subgroups of Plant Funds from the list below:

Retirement of Indebtedness

Private Gifts

Investment in Plant

Interest Earned on Construction Funds

Proceeds from Issuance of Notes and Loans

Unexpended Plant Funds

Capitalized Plant Facilities

A liability incurred to fund the construction of a capital project may be split between the Unexpended Plant Fund and the Investment in Plant subgroups until the project is completed. True OR False?

True	False

The Unexpended Plant Fund subgroup is used to account for resources set aside to purchase or construct long lived plant assets. True OR False?

True	False

Expenditures for repairs to plant assets may be made from the Unexpended Plant Funds subgroup. True OR False?

True	False

Select the assets from the list below that are reported in the Investment in Plant subgroup:

Land

Buildings

Cash and Temporary Investments

Other Accounts Receivable

Equipment

Accounts Payable

Library Books

Construction in Progress

Capitalized expenditures from Unexpended Plant or Current Funds are capitalized in the Unexpended Plant Funds subgroup. True OR False?

True	False

The Retirement of Indebtedness subgroup accounts for the resources used to make debt service payments to retire indebtedness incurred for the acquisition or construction of long-lived plant assets. True OR False?

True	False

Select the fund type from the drop down list that best matches the function recorded in it on the list below.

Function:

Accounts for the resources used to make debt service payment -

Accounts for all long-lived assets purchased by the university -

Accounts for the resources that are committed to purchase capital assets -

Section 7: Financial Statements

Select the three principal financial statements used by the U. T. System from the list below:

Statement of Cash Flows

Profit and Loss Statement

Budget Report

Balance Sheet

Plant Funds Report

Spending Report

Annual Cash Report

Statement of Revenues, Expenses, and Changes in Net Assets (SRECNA)

The two approaches to presenting information in the financial statements are: as of a particular date and a flow of activity from the beginning to the end of a reporting period. True OR False?

True	False

Select the statement type from the drop down list which type best matches the reported information on the list below.

Reported Information:

Reports detailed inflows and outflows of cash for operating, noncapital and capital related financing and investing activities -

Reports the institution’s Assets, Liabilities, and Net Assets as of the last day of the fiscal year -

Reports the operating and nonoperating activities for the fiscal year -

On which statement(s) could the reader find the net assets of the Designated Fund category?

Exhibit A – Balance Sheet

Exhibit B - SCRECNA

Exhibit C - Statement of Cash Flows

Both Exhibit A and B

What totals flow from the SRECNA to the Balance Sheet?

Select the two items that must equal each other on the Balance Sheet from the list below:

Noncurrent Assets

Total Liabilities and Net Assets

Noncurrent Liabilities

Cash and Cash Equivalents

Total Current Assets

Beginning Net Assets

Ending Net Assets

Total Assets

The information in an individual institution’s Annual Financial Report would be included in:

Combined Primary Exhibits of the systemwide Consolidated Annual Financial Report

Statewide Comprehensive Annual Financial Report (CAFR)

Various other systemwide financial reports requested by the Board of Regents

All of the above

When requesting CPE, email the completed exam along with

CPE Request Form and Course Evaluation to

controllersoffice@utsystem.edu

If you have questions related to CPE, contact

Rebecca Latham at 512.499.4527