Spending Policy Codes

Since a Spending Policy can vary between Funds, a code on the Fund record links each Fund to a set of variables to use in the calculation. The number of variables depends on the calculation method.

The code is stored on the Fund record via the Policy field on the Fund 1 tab.

Tip: You can also maintain these codes via File Maintenance > Fund Code Maintenance > Spending Policy in the Fund Management module.

To create a spending policy code:

1. From anywhere in FIMS, select View > Spending Policy > Spending Policy Code.

2. Click New on the toolbar to create a new code.

3. In Code, enter two characters for the Spending Policy code that identifies the Spending Policy on the Fund record.

4. In Description, enter a brief text description (up to sixteen characters) of the code.

5. Enter the appropriate # of Qtrs to Avg. The meaning of this field depends on the Evaluation Method chosen at run time.

EXAMPLE: Calculation Source G/L:

• Average Quarterly Balance, Average of Highest Month in Quarters, Average of Ending Months in Quarter: Enter the number of quarters that you want to average to calculate the Spending Policy.

Note: The number of quarters to average is a maximum limit – fewer quarters will be used if fewer are available in General Ledger history for a particular Fund.

• Average of Ending (annual) Balances, Average Beginning and Ending YTD (annual) Balances: Enter 4 to go back one year prior to the basis / calc year, 8 to go back two years, etc.
• Beginning Balance of Calc Year: Enter 1.

6. In Spending Rate, enter the percentage of the total amount that may be spent, according to the Spending Policy code.

7. Leave Minimum Rate blank. It is not currently used.

8. Enter the Beginning Month. The meaning of this field depends on the Calculation Source and Evaluation Method chosen at run time. Refer to Calculating Spending Policy for more information.

Calculation Source = G/L:

• Average Quarterly Balance, Average of Highest Month in Quarters, Average of Ending Months in Quarter: Enter the number of the last General Ledger period of the last chronological quarter you are averaging.

Tip: You can enter any month within the desired quarter and FIMS will recognize the appropriate quarter.

• Average of Ending Balances, Average Beginning and Ending YTD Balances, Beginning Balance of Calc Year: Enter 12.

Note: These methods ignore the Beginning Month value. You will enter the calculation basis year at run-time.

Calculation Source = FACTS

• This method ignores the Beginning Month value.

9. In the Calculation Source field, enter either GL or FACTS to indicate which module you are using to make Spending Policy calculations.

Note: This code is required for all calculation methods.

10. Click Save on the toolbar.