The Purpose segment of the new Chart of Accounts requires entry of a valid value for all expense transactions.  

Segment Definition

The Purpose segment is the functional classification of expenses for financial statements and other functional reporting, or for classifying revenues reflecting the mission of the university. Purpose supports federal and other external reporting requirements.

Expanded Definition and Use Criteria

The Purpose segment tracks the purpose of the transaction, such as NACUBO-defined functional expense classification and mission. 

The National Association of College and University Business Officers (NACUBO) classification data is utilized for far-reaching external reporting (e.g., institution ranking), and is also essential for compliance with federal cost principles and financial statement reporting requiring expenditures be displayed by functional class.

Purpose Values Crosswalk

The Purpose segment of the new Chart of Accounts largely aligns with KFS Higher Ed Function Code (HEFC), an embedded attribute of the KFS Account. With many Purpose values having a 1:1 relationship with HEFC, this segment lends itself to a fairly straightforward crosswalk from values you use in KFS to the values you will use in Aggie Enterprise.

Understanding Purpose Values

When entering a Purpose code value, think about the intent of the expense. Purpose value use criteria are provided below. 

• 40 - Instruction (including Department Research, not separately budgeted)
• 
  Instruction includes expenditures for most activities that are part of UC's instruction program, including:
       • Academic, Occupational and Vocational instruction (Credit & non-credit)
       • Departmental research and public service that are not separately budgeted
       • Expenditures for department chairpersons who are also instructors
  
  This value does NOT include:
       • Dean's office administrative activities (falls under 43 - Academic Support)
       • Organized Research (falls under 44 - Research, non-AES and 45 - AES Research)
       • Summer Session instruction (falls under 41 - Summer Session)
       • University Extension instruction (falls under 61 - University Extension )
  
  KFS HEFC Value Comparison: This Purpose value aligns with INST - Instruction and Departmental Research.
• 41 - Summer Session
• 
  Summer Session includes expenditures to support unique instructional and administrative activities in operation during a summer session, interim session, or other period not associated with an institutions' academic term and which are incurred solely a result of conducting a special session (e.g. faculty salaries).
  
  KFS HEFC Value Comparison: This Purpose value is NEW.
• 42 - Teaching Hospitals
• 
  Teaching Hospitals includes expenditures associated with patient care operations of a hospital including:
       • Nursing and other professional services
       • General services
       • Administrative services
       • Fiscal services
       • Charges for physical plant operations and institutional support.
  
  KFS HEFC Value Comparison: This Purpose value aligns with TEHS - Teaching Hospitals.
• 43 - Academic Support
• 
  Academic Support includes expenditures that provide support services for the institution's three primary missions of instruction, research and public service, including:
       • Academic administration (including academic deans, but not department chairpersons), providing administrative
          support and management direction
       • Educational media, such as audio/ visual services and technology (e.g., computing support)
       • Retention, preservation and display of educational materials (e.g., museums and galleries)
       • Provision of services that directly assist the academic functions of the institution, such as demonstration schools
          associated with a department, school or college
  
  KFS HEFC Value Comparison: This Purpose value aligns with ACAD - Academic Support.
• 44 - Research (non-AES)
• 
  Research includes expenditures for research that is not related to the Ag Experiment Station (AES), including:
       • All activities specifically organized to produce research outcomes (e.g., institutes, research centers, and
          individual and/or project research, whether commissioned by an agency external to UC or budgeted
          separately by an organizational unit within the institution)
       • Expenditures for departmental research that are separately or specifically budgeted for research
  
  KFS HEFC Value Comparison: This Purpose value aligns with ORES - Organized Research.
• 45 - AES Research (Ag Experiment Station)
• 
  AES Research includes expenditures for research related to the Ag Experiment Station (AES), including:
       • All activities specifically organized to produce research outcomes (e.g., institutes, research centers, and
          individual and/or project research, whether commissioned by an agency external to UC or budgeted
          separately by an organizational unit within the institution)
       • Expenditures for departmental research that are separately or specifically budgeted for research
  
  KFS HEFC Value Comparison: This Purpose value aligns with OAES - Organized Research - AES Related
• 60 - Libraries
• 
  Libraries includes expenditures for all activities that directly support the operation of a cataloged or otherwise classified collection of published materials.
  This includes acquisition, preservation, display and maintenance of collections.
  
  KFS HEFC Value Comparison: This Purpose value aligns with LIBR - Libraries.
• 61 - University Extension
• 
  University Extension includes expenditures for activities (both credit and noncredit) that are conducted to provide instruction to the members of the community or other groups external to the institution.
  
  KFS HEFC Value Comparison: This Purpose value aligns with UNEX - University Extension.
• 62 - Public Service
• 
  Public Service includes expenditures for activities established primarily to provide non-instructional services beneficial to individuals and groups associated with particular sectors of the community outside the institution, including:
       • Community service programs (excluding instruction activities)
       • Cooperative extension services
       • Conferences
       • Institutes
       • General advisory services
       • Reference bureaus 
       • Public broadcasting (e.g., radio and television)
       • Consulting, and similar non-instructional services
  
  KFS HEFC Value Comparison: This Purpose value aligns with PBSV - Public Service.
• 64 - Operations and Maintenance of Plant
• Operations and Maintenance of Plant includes:
       • All expenditures of current operating funds for operation and maintenance of physical plant, net of amounts
          charged to auxiliary enterprises, hospitals and independent operations
       • All expenditures for operations established to provide services and maintenance related to grounds and facilities
       • Utilities, fire protection etc.
  
  KFS HEFC Value Comparison: This Purpose value aligns with MOPP- Maint. & Operation of Physical Plant.
• 65 - Depreciation

• 
  For Central office use only. Used to record depreciation for reporting fixed assets to Office of the President.

  Depreciation includes depreciation expenses for capitalized buildings, equipment, software, and infrastructure.
  
  KFS Sub-Object Value Comparison: This Purpose value aligns with Depreciation Sub-Object Codes (24xx and 25xx).
  (Note, this is not self-supporting depreciation expense recorded to D custodial code equipment assets in KFS Object Code 7238/Object Consolidation SB75.)

• 66 - Impairment
• For Central office use only. Used to record impairment of capital assets for reporting to Office of the President.
  
  KFS Sub-Object Value Comparison: This Purpose value aligns with Impair. of Capital Asset Sub-Object Codes (24xx and 25xx).
• 68 - Student Services
• 
  Student Services includes expenditures for the admissions and registrar's offices and for activities whose primary purpose is to contribute to a student's emotional and physical well-being and intellectual, cultural and social development, outside the context of a formal instruction program, including the following:
       • Student activities, cultural events, student newspapers, intramural athletics, student organizations, and
          intercollegiate athletics (if the program is operated as an integral part of the department of physical education,
          and not as an essentially self-supporting activity)
       • Supplemental educational services to provide matriculated students with supplemental instruction outside
          the normal academic program (e.g., remedial instruction)
       • Counseling and career guidance (excluding informal academic counseling by the faculty)
       • Student aid administration
       • Student health services (if not operated as an essentially self-supporting activity)
  
  KFS HEFC Value Comparison: This Purpose value aligns with STAC - Student Activities.
• 72 - Institutional Support & General Administration
• 
  Institutional Support & General Administration includes expenditures for:
       • Central executive level activities concerned with management and long-range planning for the entire institution,
          such as the governing board, planning and programming operations, and legal services
       • Fiscal operations, including the investment office
       • Administrative data processing
       • Space management
       • Employee personnel and records
       • Logistical activities that provide procurement, storerooms, and printing
       • Faculty and staff support services that are not operated by an auxiliary enterprise
       • Activities involving community and alumni relations, including development and fund raising
  
  KFS HEFC Value Comparison: This Purpose value aligns with INSP - Institutional Support.
• 76 - Auxiliary Enterprises
• 
  Auxiliary Enterprises includes expenditures that exist to furnish goods or services to students, faculty, or staff and are managed essentially as self-supporting activities.
  This category also includes all expenditures relating to the operation of auxiliary enterprises, including expenditures for operation and maintenance of plant and institutional support.
  
  Examples include:
       • Residence halls
       • Food services
       • Intercollegiate athletics (only if essentially self-supporting)
       • College stores
       • Faculty clubs and housing
  
  Hospitals, although they may serve students, faculty, or staff, are classified separately because of their financial significance.
  
  KFS HEFC Value Comparison: This Purpose value aligns with AUX - Auxiliary Enterprises.
• 78 - Student Financial Aid
• 
  Student Financial Aid includes expenditures for:
       • Scholarships and fellowships financed from either restricted or unrestricted funds, given as an outright
          grant to student selected by UC
       • Trainee stipends, prizes and awards (except trainee stipends awarded to individuals who are not enrolled
          in formal coursework, which are charged to instruction)
       • Research or public service grants
       • Aid to students in the form of tuition or fee remission
  **Cannot include salary or wages for any employee type including student employees, graduate student researchers, faculty or staff even if they are supporting student programs**
  
  KFS HEFC Value Comparison: This Purpose value aligns with FINA - Student Financial Aid.
• 79 - Department of Energy Laboratories
• 
  Department of Energy laboratories includes expenditures associated with federally funded Department of Energy research laboratories at Berkeley, Livermore, and Los Alamos.
  
  KFS HEFC Value Comparison: This Purpose value is NEW.
• 80 - Provisions for Allocation
• 
  Provisions for Allocation category includes funds held for subsequent allocation to campus departments or programs for specific purposes, including:
       • Merit increases and promotions, range adjustments, staff reclassifications, etc.
       • Unallocated funds such as undistributed endowment income, unallocated student fees, and scholarship funds
       • Assigned campus budgetary savings target
  
  KFS HEFC Value Comparison: This Purpose value aligns with PROV - Provisions.