There are three main types of accounts at the University:
- Operating Accounts
- Trust Accounts
- Grant Accounts
Your Business Unit accounts are Operating Accounts. They are represented by a five-digit number that begins with either a 1 or 2 (e.g. Dept. A – 19250) Operating Accounts are funded through the University's central operating budget. They are administered by the Budget Process and the Budget Committee, subject to the approval of the Board of Governors.
The Budget is allocated to various object accounts, such as general office supplies, travel, equipment, and repairs.
Trust Accounts are established for specific purposes (e.g. to fund a scholarship or conference). They are funded by various outside sources, including but not limited to private donations, government grants, and conference registration fees.
They are represented by a five-digit number that begins with either a 6 or 7.
Endowment Accounts, which begin with a 6, are interest-earning Trust Accounts. They are funded by an individual or group for a very specific purpose, often a scholarship. After the initial investment is deposited into the Account, it remains unspent for the life of the Account (i.e. unless it is to be closed out). Endowment Accounts are bound by very specific terms of reference. You cannot post expenses to an Endowment Account.
At year-end, any interest earned by an Endowment Account up to 6% (inclusive) is transferred to an accompanying Expendable Trust Account (as below), which will start with a 7 followed by the same final four digits as the Endowment Account. Any interest beyond 6% is returned to the Endowment.
Expendable Accounts, which begin with 7, are Trust Accounts that do not earn interest. They are funded by the interest from their respective Endowment Accounts (as above) or from government funding or private donations that have not been earmarked as endowments.
An Expendable Account is not bound by a budget. Expenses are, of course, limited to the funds available in the Account. You can use Expendable Accounts to pay for scholarships, supplies, salaries, or other expenses. Expenditures must still align with institutional policy.
Grant Accounts are typically funded from Tri-Council or other granting. They may also be funded internally funded by "startup" and internal granting schemes.
They are represented by a five- or six-digit number that begins with an 8.
The grantee is solely responsible for ensuring that expenditures are consistent with the funding agency's guidelines. Non-compliance could result in a loss of future funding to the grantee or even the University as a whole. The grantee is also responsible for avoiding over-expenditure.
Any Grant Account can be audited by the funding source at any time.
For financial assistance related to Grant Accounts, contact the Department of Research Finance.