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UHD Fund Group Definitions


Operating Funds

Fund 1 - Educational and General Funds - Funds for administration, institutional expense, instruction and departmental research, physical plant operation, libraries, and other items relating to instruction. Most state appropriations are accounted for in this fund. These consist of our General Revenue Appropriations that are retained in the State Treasury in Austin that the university expends against. There are certain funds in this group that are collected locally, such as tuition, that the university collects locally, but is required to deposit in the State Treasury that the university expends against.

Fund 2 - Designated Funds - Funds arising from sources that have been internally designated by management and approved by the Board of Regents to be used for special purposes. The funds are collected locally and deposited in University of Houston Downtown bank accounts. These include designated tuition and investment income, which are available to the President for central allocation. These funds are also composed of student lab and course fees, whose rate and use are determined by the colleges.

Fund 3 - Auxiliary Enterprises Funds - Funds for activities that furnish services to students, faculty, or staff for which charges are made that are directly related to the cost of service, such as parking, Student Life Center, and food services.

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Restricted Funds

Fund 4 – Scholarship and fellowship funds, primarily gifts and endowments. Use restricted by donor or other outside entity.

Fund 5 – Contract and grant funds, primarily research, managed by the Office of Sponsored Programs in conjunction with Grant Accounting.

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Capital Projects (Fund 7)

Capital projects, which are a portion of the Plant Fund group, are used for construction, rehabilitation, and acquisition of physical properties for institutional purposes. In addition, the PeopleSoft administrative systems project is included within these funds at System Administration and UHD Office of Finance and Administration.

HEAF (Fund 1 for capital equipment, library books and materials and Fund 7 for capital projects)

(Higher Education Assistance Funds) Permanent capital funding appropriation provided under Article VII, Section 17 of the Texas Constitution for Texas institutions of higher education beginning September 1, 1985.

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HEAF may be used for the following purposes:
  • Acquisition of land, with or without permanent improvements
  • Construction and equipping of buildings or other permanent improvements
  • Major repair or rehabilitation of buildings or other permanent improvements
  • Acquisition of capital equipment, library books, and library materials


Last updated or reviewed on 7/26/11

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