Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Organization of AFRs for University Systems, Component Universities & Independent Universities
Required Matrix of Functional Operational Expenses
Universities may report operating expenses on the statement of revenues, expenses and changes in net position by either natural (for example, salaries and wages, cost of goods sold) or NACUBO functional (for example, instruction, research) classifications.
If a university elects to present operating expenses by NACUBO function, a matrix that shows the natural (object) classification of operating expenses is required immediately following the statement. Non-NACUBO functions (for example, depreciation, scholarships expense) can be presented in a single column, rather than being allocated across different functions.
The university must reconcile expenses in USAS by object, rather than function. If the university elects to report operating expenses by natural classification, no matrix is required.
For more information, see Sample Matrix of Operational Expenses Reported by Function.