Fund Sources

What is a Fund Source?

A fund source tells us where the dollars come from and helps determine what they can and cannot be used for. Any funding flowing through the Division of Financial Services (DFS) is considered “state funds”. However, fund Sources fall into two major categories, General Use (GU) and Restricted Use (RU).

General Use (GU) fund sources originate from allocations received from the State of Kansas, as approved by the legislature, as well as tuition revenue. They are called ‘general use’ because these funds may be used to support the overall day-to-day operations of the University or for any of the University’s fundamental missions as a Land Grant institution. Therefore, K-State also receives various GU allocations from the state for specific programs and initiatives, including, but not limited to Agriculture Research, Extension, and Veterinary Medicine. Because the Legislature allocates funds one year at a time, GU funds normally should be fully spent by the end of each fiscal year.

Restricted Use (RU) fund sources refer to the other pools of money received outside of GU fund sources, such as Restricted fees, Sponsored Research Overhead (SRO), Federal Funds, and other external funds. These funds are considered ‘restricted’ because they are earned for a very specific (or restricted) program, activity, or purpose and must be spent accordingly. A good example of the is a grant. The funds received for that grant are ‘restricted’ to only what is allowed in that grant.

Fund sources may include:

  • State Funds (Appropriations) – money provided by the Kansas Legislature.
  • Federal Funds – grants, contracts, or appropriations from U.S. government agencies.
  • Tuition and Fees – payments made by students.
  • Restricted Funds – payments or awards made by other external entities
  • Sponsored Research Overhead – Indirect cost recovery from grants awarded
  • Foundation Funds – gifts, endowments, or donations

Our financial structures must ultimately align with the State of Kansas’ structure. The State organizes monies by funding type at the Fund level, with each Fund containing one or more Budget Units that roll up into it. These Budget Units (and their associated Funds) are then incorporated into K-State’s structure as Sources. Some Source codes have a one-to-one relationship with Budget Units; however, K-State may also create more detailed Sources that roll up to a single Budget Unit. From most detailed to least detailed, these funding classifications are: Source → Budget Unit → Fund. Colloquially at K-State, the terms source, fund, and fund source are often used interchangeably, so it’s important to verify which level is being referenced in any given context.

Why It Matters

Each fund source has its own rules, restrictions, and compliance requirements. For example:

How to Use Funds

When making purchases or approving expenses, always ask:

  1. What fund source is paying?
  2. What are the rules tied to that source?
  3. Is this expense allowable under those rules?
  4. What is the timeframe of the fund being used?

By correctly identifying and following fund source requirements, the University ensures compliance, protects resources, and maintains trust with taxpayers, donors, and funding agencies.

State Funds

State appropriated funds are appropriated annually by the Kansas Legislature and allocated to the University. They are taxpayer-supported dollars intended to advance the University’s mission of instruction, research, Extension, and service.

State Fund: 1000

KSU Fund Sources: 0003, 0150, 0170, 0180, 0190, 0200, 0210, 0220, 0230, 0240, 0260, 0320, 0350, 0360, 0370, 1020, 1030, 1040, 5003, 5013, 5023, 8510

Allowable Uses

  • Faculty and staff salaries and benefits (primary use)
  • General operating expenses necessary for university functions (utilities, technology equipment, etc.)
  • Instructional and academic program costs
  • Research activities that align with state and University priorities. Funds for agriculture expenses must be approved by USDA.
  • Extension and service activities that align with state and Universities priorities and approved by USDA.
  • Student support services

Restrictions

  • Cannot be used for personal benefit, scholarship (including all E56xx codes) or non-business purposes that are not specified within the appropriation.
  • Limited for certain types of hospitality (meals, receptions, gifts if other sources of funds are not available) Alcohol beverages are always prohibited.
  • Limited for membership costs (individual memberships prohibited)

Other Things to Know

  • Must follow State of Kansas purchasing rules and travel regulations
  • Subject to State fiscal year deadlines (funds lapse if not used by year-end)
  • Any funds allocated for a specific project must be spent in accordance with the approved legislation
  • Should be spent by the end of the fiscal year

Federal Funds

Federal funds come from U.S. government agencies through grants, contracts, or appropriations. They are often tied to specific programs, projects, or compliance requirements. All expenditures involving federal funds are subject to state and federal regulatory requirements.

State Fund: 3142, 3143, 3144, 3433, 3434, 3638, 3753, 3756 3872, 9182, 9183

KSU Fund Sources: 1300, 1301, 1321, 1322, 1323, 1330, 1331, 1340, 1341, 1342, 1351, 1360, 3145, 3146, 3147, 3148, 3149, 3150, 3151, 3152, 3153, 3154, 3155, 3156, 3400, 3536, 3537, 3538, 3637, 3638, 3639, 3640, 3753, 5140, 5141, 5150, 9340, 9350, 9351, 9352, 9353, 9354, 9355, 9356, 9357

Allowable Uses

  • Activities directly related to the approved federal grant or contract scope
  • Salaries and wages of personnel working on the project (effort must be documented)
  • Research equipment and supplies specifically approved in the award
  • Student financial aid (Pell Grants, work-study, etc.)
  • Programmatic costs tied to federal regulations

Restrictions

  • Cannot be used outside the approved project scope
  • Certain costs are unallowable under Uniform Guidance (2 CFR 200), including:
    • Alcoholic beverages
    • Entertainment (unless specifically authorized)
    • Lobbying or political activities
    • Gifts or personal expenses
    • Limited for membership costs (individual memberships prohibited)
  • Salary expense on federal funds may not be used for any matching requirement on another federally funded grant or project.

Other Things to Know

  • Require detailed documentation, cost allocation, and federal audit readiness
  • Spending must occur within the award period of performance

Tuition and Fees

Tuition and fees are funds received from students through tuition, mandatory fees, and other course/program fees.

State Fund: 2062

KSU Fund Sources: 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007

Allowable Uses

  • Faculty and staff salaries and benefits
  • Instructional and academic program costs
  • Student support services
  • Academic infrastructure
  • General operating expenses necessary for university academic functions

Restrictions

  • Cannot be used for personal benefit or non-business purposes
  • Limited for certain types of hospitality (meals, receptions, gifts)
  • Must follow university purchasing rules and travel regulations

Other Things to Know

  • Should be spent by the end of the fiscal year

Restricted Funds (non-Federal)

Funds are received from fees charged (departmental generated revenue) or awards provided by external parties.

State Fund: 2263, 2364, 2479, 2481, 2491, 2053, 2154, 2451, 2472, 2520, 2540, 2630, 2697, 2842, 2860, 2889

KSU Fund Sources: 1100, 1150, 1180, 1190, 1491, 2050, 2080, 2090, 2053, 2058, 2154, 2451, 2484, 2500, 2630, 2840, 2860, 2889

Allowable Uses

  • Faculty and staff salaries and benefits
  • Instructional and academic program costs
  • Student support services
  • Academic infrastructure
  • General operating expenses necessary for university functions

Restrictions

  • Cannot be used for personal benefit or non-business purposes
  • Limited for certain types of hospitality (meals, receptions, gifts)
  • Must follow university purchasing rules and travel regulations

Sponsored Research Overhead (F&A Funds)

When the University receives federal or other sponsored research awards, it negotiates an indirect cost rate with the federal government. This rate is applied to certain direct costs of a grant to recover expenses that cannot be easily tied to one project (e.g., utilities, building maintenance, administrative support). The recovered dollars are called sponsored research overhead (F&A funds). These are unrestricted at the federal level once collected but are subject to university and state policies on how they can be used.

State Fund: 2901, 2921

KSU Fund Sources: 1200, 2160

Allowable Uses

  • Faculty and research support salaries
  • Start-up packages for new faculty
  • Research infrastructure support
  • Administrative and compliance support for research
  • Strategic Initiatives

Restrictions

  • Cannot be used for personal benefit or non-business purposes
  • Non-research activities
  • Limited for certain types of hospitality (meals, receptions, gifts)
  • Must follow university purchasing rules and travel regulations

Service Clearing

Service Clearing funds function as an in-and-out funding mechanism to support campus areas that charge for services. They are not intended to generate revenue, but rather to recover the costs associated with providing a specific service. Charges must be directly tied to related expenses, and revenue collected should offset those costs rather than create a surplus. All activity must align with the approved purpose of the service. Because Service Clearing funds are not business accounts, long-term balances or profit accumulation are not permitted. These activities must be specifically authorized through state appropriations or by the Kansas Board of Regents with approval from the State Finance Council, in accordance with state guidelines.

Foundation Funds

Foundation funds are private dollars used to support university activities and are administered through the KSU Foundation. These funds come from donors and are used for specific purposes. These are not state funds and must be spent according to donor restrictions. All expenditures paid by the University that will be reimbursed with Foundation funds are subject to University policies and procedures. In addition to Foundation fund restrictions.

State Fund: 2520, 2697, 2590

KSU Fund Sources: 2095, 1105, 5550

Allowable Uses

  • Determined by the rules of the Memorandum of Understanding (MOU)
  • Payroll Expenses
  • Scholarships
  • Research
  • Program support

Restrictions

  • Determined by the rules of the Memorandum of Understanding (MOU)

This is not an all-encompassing list. For a full listing of all Fund Sources, please review the Fund Source Listing.