The UC Merced Office of the Controller is issuing the following guidance on using Function 44 to record financial transactions related to research activities in the Oracle Financial System.
The UC Office of the President has clarified the use of Function 44 with system-wide Accounting Procedure updates. This updated guidance takes into consideration the Common Chart of Accounts (CCoA) and CFS file schemas that transmit UC Merced’s data from our local Oracle instance to the consolidated financial statements, Annual Single Audit (grant-related audit), and annual HERD Survey.
For UC Merced’s research data to flow with the required Catalog of Federal Domestic Assistance Number (CFDA) coding and/or the required National Science Foundation (NSF) Discipline Code, department staff responsible for financial transactions must set up a project attribute and use it on all direct research expenditures.
Transactions coded to default project (0000000000) and Function 44 will no longer be accepted for processing. Effective July 1, 2023, a cross-validation rule will be activated in Oracle and transactions coded to Function 44 without a project attribute will be automatically rejected.
In addition to the above, please note that indirect costs should not be coded to Function 44 as indirect costs are intended to be covered by our Indirect Cost Recovery charged to extramural funding; entering a Function 44 on indirect costs would duplicate the amount of funds we are declaring as related to research.
Financial and Accounting Services will work with campus partners to reclassify all current year activity coded to Default Project (0000000000) and Function 44. CBS2 and Procurement will work with campus partners to ensure a project attribute is placed on all FY2023-24 purchase orders.
Questions? Please reach out to Amanda Preston-Nelson, Associate Vice Chancellor and Controller.
