Part III - UNM Finance: Practical Applications

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Standard Accounting Resource Manual (SARM)

MSC 0000 00
1 University of New Mexico
Albuquerque, NM 87131


Revenue Allocation journal entries are routinely used to move actual funding from one index to help support another index, usually within the same department. Allocations entries do not change the overall amount of funds or monies available.  Allocation entries must be budgeted; either in the original budget or as a budget revision. Allocations can be used to move non-clinical revenue to divisions within a department.

In order to preserve the intent of the funding, allocations must be made within the same fund level two (related to UNM mission) and program level two (related to Higher Education Division reporting).  Allocation journal entries are generally initiated by the college or department.  Some colleges use an automated journal entry function in order to post re-occurring entries each month.

Allocations commonly occur when organizations allocate revenue within the organization down to specific departments, doctors, or professors within that organization.  An example would be the allocation by the Dean’s office of F&A funds to different departments.  The departments may then further allocate, or distribute, the funds to indices for specific professors.