Transcript The University of South Carolina

OVERVIEW OF “E” FUNDS
FY2006
Other Education and General
Program Accounts
Why Do We Have “E” Fund Accounts?
“E” Fund accounts are used by units to track revenues,
expenditures, and fund balances associated with activities
that are:
unrestricted
self-sustaining
on-going
Balances in these accounts are carried forward from one
year to the next for the purpose of expanding or
improving the services provided by the unit. See USC
Policy BUSF 3.30
Differences Between “A” & “E”
“E”
“A”
• Generates revenue
• Funded through state
appropriations, tuition,
VCM
• Activity is ongoing
• One-time activities
included in A funds
• Most are budgeted
• Most are unbudgeted
Unrestricted Funds
Funds that have no limitations/stipulations placed on
them by external (outside of USC) sources.
All “E” Fund accounts are unrestricted.
Restricted Funds
Funds with limitations/stipulations place on them by
external sources.
Source of funds is primarily gifts, grants, or
contracts
Defined scope of work
Specific start and end dates
Deliverable product
Restricted funds are not E funds.
Self-Sustaining
The activity generates sufficient revenue to cover all costs,
including the general administrative fee, if applicable.
Annual revenues should consistently exceed $5,000.
Costs include direct costs of operation such as:
 Salaries
 Travel
 Contractual services
 Other costs clearly associated with the activity
 General administrative fee (if applicable)
Expenditures are controlled by the general Business &
Finance policies governing all University funds.
On-Going
• Activity is continual and balances carry
forward from one year to the next.
• One-time activities are not considered to be ongoing. These activities are handled in a
department’s “A” account.
• All “E” fund activities are on-going.
How Do We Classify “E” Fund Accounts for
Reporting and Monitoring Purposes?
Types of Activities:
Revenue Generating Accounts
Service Providing Accounts
Types of Revenue Generating Accounts
Continuing Education
Credit or non-credit conferences, workshops,
short courses, and summer camp programs.
Studies Abroad Activities
Instructional programs with specific fee based
on location.
Departmental Operating
Self-supporting activities associated with
providing services to other University units or
external organizations.
Revenue Generating Accounts
Guidelines
 The unit is responsible for establishing the user or
participant fee rates needed to support these activities.
 The established user fee should cover at a minimum all
the direct costs of operations, as well as the general
administrative fee charged by the University.
 Expenses related to this activity are charged to account.
Service Providing Accounts
Departmental Recharge Centers –
Cost reimbursement for departments that provide a
common use service to other units on campus such as:
printing
central supply centers
copy centers
University Technology Services
Annual revenues should consistently exceed $10,000
Service Providing Accounts
Guidelines
 Rates established (by department) must cover costs.
 Rates must be consistently applied to all University
users.
 Rates are subject to review by the Controller’s Office,
Internal Audit and external sponsors.
 Unit must complete an “Other Education and General
Programs Budget Worksheet”. Guidance on the
completion of this worksheet is available from the
clarification contact person.
How do I establish an “E” account?
Complete the “Request to Establish ‘E’
Fund Accounts” form and submit to Budget
Office
http://busfinance.admin.sc.edu/budget/doc_06/efundform.doc
UNIVERSITY OF SOUTH CAROLINA
REQUEST TO ESTABLISH ‘E’ FUND ACCOUNTS (OTHER EDUCATION AND GENERAL PROGRAM ACCOUNTS)
Units wishing to establish an ‘E’ fund account need to provide the information requested in the table below to the budget
office. Units are encouraged to read University Policy BUSF 3.30 (Other Education and General Program Accounts – ‘E’
funds) for additional guidance.
Requesting Unit’ s Name and Contact Person’ s Name and Phone Number:
USC Budget Office, Susie Vitaris, 777-8412
Provide a Concise Description of the Activity to be Tracked Using the Requested ‘E’ fund Account to Include the
Source of Funding, Types of Services or Goods to be Provided, and the type of Customers to be Served:
The requested account will be used for all activity associated with workshops conducted for institutes of higher education. Account is to be funded through registration fees
collected from workshop participants. Participants will be business managers from various institutes of higher education. Expenditures will include printing costs, facility
rental and, in some cases, food.
Recommended Account Name
Recommended Account No.
Chairman’s Name:
Begin Date:
Budgets in Higher Education Workshops
62020-E104
Leslie Brunelli
1/10/06
Principle Investigator’ s Name:
End Date:
Susie Vitaris
6/30/2050
Specific Information Needed to Establish an ‘E’ fund Account:
Information Needed
Do the funds identified to support this activity belong to USC?
Is the source of funding provided for this activity an outside organization that has placed
limitations on how the funds can be spent?
Will this activity be primarily funded by donations?
Examples of Positive Re sponse s
Yes - the funds have no external
restrictions and are controlled by
the requesting unit.
No – the funds have no external
restrictions placed on them by an
outside organization.
No – the account will be supported
by revenues generated from (1)
user fees for products or servic es,
(2) student fees for continuing
education, studies aboard,
renovation fees, or technology fees,
or (3) res earch-related indirect cost
revenues.
Unit’ s
Response
Yes
No
No
UNIVERSITY OF SOUTH CAROLINA
REQUEST TO ESTABLISH ‘E’ FUND ACCOUNTS (OTHER EDUCATION AND GENERAL PROGRAM ACCOUNTS)
Will the proposed revenues generated to support this activity exceed $5,000 annually?
Will the proposed revenues cover at a minimum all the direct costs of operations and if
applicable the general administrative fee charged by the University to offset institutional
support and physical plant services?
What educational and general program does this activity support?
Would you classify this activity as continuing education?
Would you classify this activity as a departmental recharge center because you are
providing a common service to other units of the University on a cost-reimbursement
basis?
Will your revenues exceed $10,000 annually?
Would you classify this activity as research-related because the revenues generated are
based on applying the University’s approved indirect cost rates to the parameters
established for individual research grants?
Yes – but this may not occur in the
first year of operation.
Yes
Instruction, research, public service,
academic support, student services,
institutional support, or physical
plant
Yes
Yes – I have attached a completed
‘Other Education and General
One
of
Programs Budget
Worksheet’
for
your review. these 3
Yes
Yes
Instruction
Yes
No
should be
Yes – the revenues will exceed
answered
$10,000 but not
in the first year of
“yes”
operation.
Yes – The source of revenue for
this activity is the IDC revenues
generated on this unit’s grant
accounts
No
Users of this form will need to download it from the budget office’s webpage and save the completed form onto their computer using a unique
name. A separate form should be completed for each new ‘E’ fund account request.
Please note…….
If the requested account is designated as a
departmental recharge center and the
expected revenue exceeds $10,000 annually,
the unit must also include a completed ‘Other
Education and General Programs Budget
Worksheet’ form.
http://www.sc.edu/policies/busf330b.pdf
OTHER EDUCATION AND GENERAL PROGRAMS BUDGET WORKSHEET
NOTE: This form is to be prepared for departmental recharge centers on an annual basis per BUSF 3.30
RESPONSIBILITY AREA/ DEPARTMENT:
NAME OF PROGRAM:
ACCOUNT:
ANTICIPATED COSTS:
Salaries and Wages
Fringe Benefits
Supplies
Other (Specify)
Subtotal:
Add:
Prior Year Costs in Excess of Recoveries
Anticipated Replacement Cost for Equipment
General and Administrative Fee
Subtract:
Prior Year Recoveries in Excess of Cost
Total Anticipated Costs:
Computation of Cost per Unit:
Total Anticipated Costs
Divide by:
Units of Production or Service Offered
Anticipated Cost per Unit
Anticipated Rate to be Charged for the Period
per unit
per unit
Notes:
--Anticipated revenue must equal Anticipated cost
--Unit costs must be set at a rate sufficient to recover all costs
--Any excess of recoveries under/over costs must be factored into the rates for subsequent years
--this form should be retained in the preparing unit's files for possible review or audit by
appropriate University offices.
PREPARED BY:
DATE:
1/10/06
62020
E104
X
Budgets in Higher Education Workshops
N
Leslie Brunelli
Y
Susie Vitaris
10
10
1
13
10
Activity involved in conducting Budget in Higher Education Workshops
Susie Vitaris
1/10/06
00
Recap of Unit’s Role
 Complete “Request to Establish ’E’ Fund Accounts”
form.
 If in doubt about restricted verses unrestricted status,
seek clarification from:
Clarification Contact Person: Jim Little, Office of Research
Email: [email protected]
Telephone: 777-6872
 Complete “Other Education & General Programs
Budget Worksheet” form – if needed.
 Forward all completed forms to Ralph Summer in
the Budget Office.
What is the Role of the Budget Office in Establishing
an “E” Fund Account?
 Review the unit’s request to determine if the use of an
‘E’ fund account is appropriate.
 If not appropriate, the Budget Office will state its
reason in writing to the requesting unit and recommend
alternatives.
 If the requested account is a departmental recharge
center, the Budget Office will determine if appropriate
from the “Other Educational and General Program
Budget Worksheet”.
What is the Role of the Unit in Maintaining an “E”
Fund Account?
Maintain detailed records supporting charges to Other University units,
students, and external customers to include at least the following information:
1.
2.
3.
4.
5.
6.
Name of person and department responsible for the service.
General ledger account numbers for internal customers being charged for
the service.
Description and cost of the services being performed.
Names and addresses of the external customers being billed for
services.
Total volume of activity for University customers, including federal
grants and contracts, and for external customers.
Financial information necessary for computing billing rates.
(See Other Educational and General programs Budget Worksheet.)
Establish user fees to at a minimum to cover the entire cost of operations,
including the general administrative fee.
Revenue
 Cash collected from outside sources should be deposited
on a timely basis into the proper revenue classification
code.
 Intra-Institutional Transfers (IIT's) will be used to record
fees paid by one University unit to another.
(See BUSF 2.06.)
 Generally, a unit may not apply revenue as a credit to
reduce expenditures within the same unit.
Recommended Revenue Codes
Code
Description
40410
Conference Registration Fees
40500
Other Public Service Fees
41100
Departmental Sales
41200
Departmental Services
48611
State Government Contract
48612
Local Government Contract
48613
Commercial Contract
48614
Philanthropic Contract
48615
Other Contract
48628
Research Foundation Support
48650
General Receipts
Monitor annual revenue generation to ensure that it does not fall below $5,000.
If revenue falls below $5,000 deactivate the “E” Fund account and run the
activity through “A” Funds.
Expenditures and Transfers
 Process expenditures for ‘E’ fund accounts in the same manner as
any other expenditure.
 Process transfer requests for ‘E’ fund accounts in the same
manner as any other transfers with the following exceptions:
– ‘A’ fund dollars may not be transferred to ‘E’ fund accounts to
cover expenditures.
– Excess ‘E’ fund balances not needed to meet direct
expenditures and the general administration fee may be
transferred to ‘A’ fund accounts or another ‘E’ fund account.
– Technology fee funding is earmarked to improve access to
technology for students and should not be transferred to other
uses.
General Administrative Fee
•
•
•
•
•
Covers institutional overhead
Also known as Direct Charge
Journal Entry MM-0971
Monthly (one month in arrears)
8% of prior month expenditures (excluding
prior month fee)
• Object code 52001
Fund Balance
 Maintain a positive fund balance status.
 Where accounts experience continuing
deficits – prepare written plan of action.
 Where accounts experience excessive
balance – prepare written plan to
demonstrate future need for funding.
Keep in Mind……..
Beginning Balance (3XXXX)
+ Revenues (4XXXX)
+ IIT’s (6XXXX)
+Transfers In (81XXX)
- Expenditures (5XXXX)
- Transfers Out (86XXX)
____________________________________________
Available Balance
In This Case……..
Beginning Balance
Revenues
IIT’s
Transfers In
Expenditures
Transfers Out
33,989.94
+ 29,141.14
+ 108,387.96
+
0
- 145,262.80
0
______________________________
_________________
Available Balance
26,256.24
Note: Available Balance = Cash Balance
Semi-Annual Review
Twice each year, the Budget Office will conduct a
review of all “E” fund accounts in an effort to
identify:
– Accounts with negative cash balances
– Accounts with excessive cash balances
– Accounts with little or no activity
In each case, the Budget Office will:
– Seek to resolve its concern by contacting the unit
– Notify each Vice President of “E” fund accounts with
continuing excessive or deficit funding
Routine Financial Entries
The Budget Office does not prepare or process any routine
financial transactions associated with ‘E’ fund accounts to
include deposits, expenditures, or journal entries/transfers.
This is the responsibility of the unit.
How do I deactivate an account?
To deactivate an inactive account, the unit should do
the following:
–
–
–
–
Submit personnel documents moving all future payroll charges
Notify appropriate USC servicing departments in order to
prevent future IIT’s being charged
Cancel or transfer all outstanding commitments (purchase orders,
travel authorizations)
Transfer any remaining funds (journal entry) to a separate
account
After 30 days of inactivity, the unit should send a
written request to the Budget Office to deactivate the
account. Note that the account will continue to show on
various financial reports through the end of the fiscal
year.
QUESTIONS