University Guidelines
Section 3.1 Financial Services: Budget - Income Fund
Issued: May 2024
Replaces: See Note
Southern Illinois University shall establish and maintain an Income Fund account pursuant to the State Finance Act (30 ILCS 105/6a-1). Per LAC Guidelines, Section II.A, tuition revenue received from for-credit courses shall be deposited and accounted for in the Income Fund unless otherwise provided by law. In addition, tuition from not-for-credit courses in which the content is directly connected to for-credit offerings may be deposited into the Income Funds. Per LAC Guidelines, Section II.B, mandatory student fees shall be deposited into the Income Fund, except as provided under the statutory authority for fee supported buildings, other bond covenants, auxiliary enterprises and other activities.
Per the State Finance Act (30 ILCS 105/6a-1), funds deposited into the Income Fund account should primarily be used for general operational and educational purposes which include, but are not limited to, costs to support the delivery of instruction, research, public service, academic support, student services, operation & maintenance of plant, and scholarships & fellowships. Per LAC Guidelines, Section II.A.3, funds in this account should not be used to fund not-for-credit courses, hosting conferences or hosting continuing education programs. Use of Income Fund revenues for support of auxiliary enterprise and self-supporting activities is only permitted in special situations with approval of the Chancellor and President. Per LAC Guidelines the Income Fund (or other university or appropriated funds) shall not be used to directly or indirectly subsidize University-Related Organizations (Section VI.F) or Independent Organizations (Section VII.C).
Per the State Finance Act (30 ILCS 105/6a-2), any income derived from auxiliary enterprises and activities which is not necessary to their support, maintenance, or development shall be credited to the University Income Fund. All transfers of funds from funded debt auxiliary enterprises to the Income Fund should comply with applicable revenue bond covenants.
Per SIU University Guidelines, Section 3.4, internal loans from the Income Fund (or other university funds) to a University Related Organization are prohibited.
Per LAC Guidelines, Section II.C, the Southern Illinois University governing board will formally adopt an operating budget that designates the expense allocation of the Income Fund. Following the end of the fiscal year, an unaudited report showing all Income Fund revenues by source of fund and expenditures by line item will be posted on the university’s website.
Other relevant guidance with respect to Income Fund spending include SIU Board Policy and the Illinois Procurement Code (30 ILCS 500).
Note: Replaces Section 3.1 Financial Services: Budget – Operating Budget Decision Rules which was deleted in July 2019. 5/15/2024
