NACUBO Function Hierarchy

A functional expense classification is a method of grouping expenses according to the purpose
for which the costs are incurred. The classifications tell why an expense was incurred rather
than what was purchased. Reporting expenses by functional classification helps donors, granting
agencies, creditors, and other readers of the financial statements to understand the various
mission-related activities of the institution and their relative importance.

To find the correct NACUBO Function to use in Workday or (other accounting purposes), use the chart below to identify the subclassification for your area, located in the Organization Name & ID column. Use the associated Function Hierarchy ID in Workday or other accounting related submissions.

NACUBO Function Hierarchy Chart