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Sources of Funds and Uses of Funds

In general accounting principles, there are five account types used:

  • Assets
  • Liabilities
  • Expenditures
  • Revenues
  • Fund Balance/Equity

However, Illinois’s list of official state functions separates functions in the 7000s, 8000s, and 9000s into unique types called Sources of Funds and Uses of Funds.

Functions in 7000s and 9000s are Sources of Funds. They act similarly to Revenue accounts, but use the prefix S in SchoolInsight Financials (not R). For example, function 7110 (Abolishment or Abatement of Working Cash Fund) should use the prefix S7110. An example account would be 10-S7110.

Functions in the 8000s are Uses of Funds. They act similarly to Expenditure accounts, but use the prefix U in SchoolInsight Financials (not E). For example, function 8110 (the complementary side of Abolishment or Abatement of Working Cash Fund) should use the prefix U8110. An example account would be 70-U8110.

Why is this important?

Using the correct prefix is important for SchoolInsight Financials to efficiently and consistently find the data you want, and to ensure proper exporting of data to the ISBE Budget Spreadsheet. If you recorded a budgeted amount in 10-R7110, that amount would NOT export into the spreadsheet.

Correcting past mistakes

If you have previously created Revenue functions in the 7000s or 9000s, or created Expenditure functions in the 8000s, you should deactivate the incorrect functions and accounts. In the current fiscal year, if you’ve already used the mistaken accounts, you should create correcting journal entries to fix them first.

To create correcting journal entries:

  1. Run a report to find all instances of the incorrect accounts
  2. Go to Financials Main > General Ledger > General Journal
  3. Click the blue plus sign in the upper-right corner and select Create Journal Entry
  4. In the Entries section, enter the necessary details to zero out the incorrect account and move the amount to the right place.

For example, if you had previously credited 10-R7110 and debited 70-E8110, then the correcting entries should look like this:

  • Debit 10-R7110 (zeroing out incorrect account)
  • Credit 10-S7110 (moving to the correct account)
  • Credit 70-E8110 (zeroing out incorrect account)
  • Debit 70-U8110 (moving to the correct account)

To remove incorrect accounts from the Chart of Accounts:

  1. Go to Financials Main > Setup > Chart of Accounts
  2. Filter the Type to Revenues
  3. Delete or Edit any accounts that incorrectly use the prefix R with a 7000s or 9000s function.
    • Even if the account has been used in the past, you can still delete it. Past data will be unchanged, except that the Account Description will be replaced by an auto-generated one.
    • If you prefer to mark the account inactive to preserve the Account Description, then Edit, uncheck the Active box, and click Save.
  4. Filter the Type to Expenditures
  5. Delete or Edit any accounts that incorrectly use the prefix E with an 8000s function.

To remove incorrect functions:

  1. Go to Financials Main > Setup > Functions
  2. Filter the Function Type column to show Revenues
  3. If there are any functions outside the default 1000, 2000, 3000, and 4000 rows, then either Delete or Edit them
    • If you’ve already used the function in the past, you will not be able to delete
    • If you Edit, then uncheck the Active box, and click Save to mark it inactive
  4. Filter the Function Type column to show Expenditures
  5. If there are any functions outside the default 1000, 2000, 3000, 4000, and 5000 rows, then either Delete or Edit them