IFR Accounting Guidelines

SUNY policy provides for the establishment of Income Fund Reimbursable (IFR) accounts to be managed within a Special Revenue Fund on each campus. The fund (the total of all accounts) must have a positive cash balance at all times. IFR's are self-supporting accounts that support activities related to campus' missions. These types of accounts have clear and defined income/expenditure relationships. Each IFR account must generate revenue sufficient to cover costs incurred and be managed to a positive cash position. A number of accounts generate revenue through contracts and other entities. In some cases these contracts require an initial outlay of funds before reimbursement can be requested. For these and other accounts with like circumstances where revenue follows expenditures, an accrual basis can be used to assure a break-even status at fiscal year-end.

Over the past several years, the Budget and Accounting Offices have advanced and documented a budget development process for Income Fund Reimbursable Accounts. This process assures a reasonable level of annual review of the past operating experience by account, and projects allocation requirements for the upcoming year. Any accounts with serious cash deficit balances will be structured to correct the negative cash conditions through the rate process, revenue and expenditure projections or allocation decisions within the following fiscal year. If a deficit is of a size that prohibits a solution through the traditional budgeting techniques, vice presidential area representatives must identify "other resources" that can be appropriately used to resolve the deficit. "Other resources" may include the VP area's state carry-forward surplus or if there is no carry-forward surplus or the surplus is insufficient, then the state allocation for the following fiscal year will be charged for the shortfall. Account deficits must be resolved in one year. The only exception to this policy concerns the management of service-related IFR accounts whose rates are reviewed every two years. If a deficit develops in such an account the elimination of that deficit must be addressed as part of the next rate development exercise. The revised rates in those accounts should be established to eliminate the existing deficit and prevent the development of a new deficit.

There are four types of Income Fund Reimbursable accounts:

  1. General Income Fund Reimbursable
  2. SUTRA Income Fund Reimbursable (State University Tuition Reimbursable Account.) These accounts were established to provide State University the ability to retain a limited amount of tuition revenue generated in excess of targeted levels and create entrepreneurial incentives for campuses to expand enrollment and programs.
  3. Dormitory Income Fund Reimbursable (DIFR)
  4. Hospital Income Fund Reimbursable (HIFR)

IFR Accrual Documentation