Revolving Funds & System IT Distribution

Revolving Funds and System IT Distribution

Revised: 2024-03-08

Definition

Revolving Funds are funds for services provided by other state agencies are paid by SBCTC on behalf of the colleges throughout the fiscal year.

These funds and their respective charges are transferred from SBCTC records to the colleges’ just prior to the close of the fiscal year. Examples: Attorney General fees, Risk Management.

System IT Support Distribution

Similarly, some of the costs for System IT support paid by SBCTC are distributed to the colleges.

See 40.20.30 Inter-Agency Services Provided and Used (Revolving Funds & System IT Charges)

Previously, colleges received these Revolving Fund expenses as part of an allocation and posted a journal to record these Expenses to State Funds.

As of FY 2023, SBCTC posts the Year-End Revolving Fund Journal Entries on behalf of the colleges.

Below is information on how this journal will be posted, so colleges are aware of where to find these transactions in the General Ledger.

Where to find these transactions

Since these expenditures are already paid for by SBCTC, colleges will see a debit the PS Expense accounts listed in the Allocation Memos and a credit to Revolving Fund Revenues (4100099) in the chartstring listed in the general ledger.

Journal source

For the Journal Entry use a Journal Source of RVL – Revolving & System IT Alloc.

Fig. 1: Revolving & System IT Allocation

Fig. 2  Choose Journal Source RVL

The use of Journal Source RVL will exclude these expenditures from the State Reimbursement Request report.

Caution: Do not request these funds from the Treasurer!

Add Budget to the State Fund Chartstrings

Colleges will need to ensure that Budget has been added to the State Fund Chartstrings for these allocation accounts/expenses.

We use Department 98459. Fund 001, AI 101, class 08x, Department 98459.

The Majority of the Expenses will roll up to “Budget 5081004 – Other Expenses,” but you will also need Budget in 5010003 Benefits for System IT Distributions, and 5050003 Contract Services roll-up for Supplemental Retirement Payments.