Transcript University of Minnesota Office of External Sales

University of Minnesota
Office of Internal / External Sales
Annual Requirements, Certification and
Budgeting for Internal Sales
Internal Sales Rate Development
Procedure and Website
Internal Sales EFS website:
http://www.finsys.umn.edu/sales/int.html
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Policy and Procedures
Forms
Job Aids
Internal Sales Training Modules
Administrative Procedure Reviewing Internal Sales Activity
Annually:
http://policy.umn.edu/Policies/Finance/Accounting/INTERNALSALES_PROC04.html
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Learning Objectives
Internal Sales Activity related to:
• The annual review and recalculation requirements
• The annual certification requirements
• The annual budget process for internal sales rates
• Where to send the documents
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Introduction
A review of internal sales activity and a recalculation of the
internal sales rate is required annually after the close of the
fiscal year.
 Rate review should be performed 1-2 months before the
close of the fiscal year
 The preceding year's financial information will provide the
basis for developing the following year's rate.
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How to review internal sales activity:
Review the Internal Sales during the year
• Internal Sales Business Managers with support of their RRC
manager should monitor internal sales activity throughout
the year to assure a significant surplus or deficit will not
exist at year-end.
• If a significant surplus or deficit is projected, work with the
Internal Sales Office to determine if the rate should be
adjusted within the same fiscal year.
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How to review internal sales activity:
Review the Internal Sales Business Plan
• Does the unit conducting internal sales activity continue
to qualify to conduct internal sales activity?
• Annual internal sales revenue greater than $25,000.
• Charging a federal grant of any dollar amount.
• Does the internal sales unit continue to provide the
services that are identified on the original business plan?
• Does the internal sales unit continue to provide a service
that cannot be met elsewhere?
• Should the internal sales activity continued?
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How to review internal sales activity:
Budget to Actual Analysis
• Compare budgeted revenues and expenditures to the
current year-end results on a line-by-line basis.
• Identify large variances and analyze reason for variance.
• Determine if all resources are used effectively.
• Depreciable life versus remaining useful life of capital
assets should be analyzed.
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How to review internal sales activity:
Determine the surplus or deficit
• Surplus or deficits from prior year must be incorporated in
the calculation of the proceeding year's rate development.
• Any excessive surplus may require refunding the customers.
• Any excessive deficit may require a subsidy from the
college or department.
• Calculate the adjusted rate using the steps described in
Administrative Procedure: Establishing Internal Sales
Rates.
• Use the preceding fiscal year's financial data to estimate
expenses and revenues.
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How to review internal sales activity:
Submit documentation to Internal Sales department
• Each year the annual business plan review and budget to
actual comparison for the fiscal year just ended must be
submitted to the Internal Sales Compliance Office by
September 30 (if you complete the information prior to this
date, feel free to send in before the deadline)
• Each year the new rate development proposal for the
forthcoming fiscal year must be submitted to the Internal
Sales Compliance Office by the RRC in compliance with
the annual budget process. (See page 12 of Budget
Instructions for FY12 – Support Units)
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Certification of Annual Review of
Internal Sales Activity
Submit one certification (Form UM1743) for each Internal
Sales activity to Internal/External Sales Office by
September 30th of each year.
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Activity Name
Department ID
Chatfield Account String
Contact Person
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Certification of Annual Review of
Internal Sales Activity
Business Plan Review completed:
• Activity has been reviewed with Chancellor, Dean or Vice
President.
• Activity continues to qualify as an internal sales activity.
• Activity is providing a service that cannot be met elsewhere
more cost effectively.
• Activity should continue.
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Certification of Annual Review of
Internal Sales Activity
Budget to Actual Comparison and rate development
completed:
• Actual revenues and expenditures were compared to
budgeted revenues and expenditures.
• Rate development has been submitted to the Internal Sales
Compliance Office.
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Certification of Annual Review of
Internal Sales Activity
Training Certification
The appropriate individuals who have responsibilities for
internal sales activities have completed the following
Internal Sales On-line training courses: (List names of all
individuals trained on a separate sheet.
• Course1 Overview of Policy Governing Internal Sales
• Course2 Transacting Internal Sales and Rate Development
Basics
• Course 3 Rate Development Example
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Certification of Annual Review of
Internal Sales Activity
Review Certification
• A review of the internal sales activity and a recalculation of
rates for previous fiscal year per the internal sales policy
“Selling Goods and Services to University Departments” is
complete.
• The procedure titled “Reviewing Internal Sales Activity
Annually” has been followed.
• Any exceptions have been noted and explanations and
corrective actions are included on a separate sheet.
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Certification of Annual Review of
Internal Sales Activity
Signatures
• Business Manager Signature
• RRC Manager Signature
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After review is completed:
Submit budget information to the budget office
• In accordance with the annual budget instructions, units
conducting internal sales activity must submit their budget
information to the Budget Office. (See page 12 & 13 of
Budget Instructions for FY12 – Support Units)
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After review is completed:
Implement the new rate
• Customers are to be charged the new rate at the beginning of
the fiscal year.
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Summary
• Refer to the information available on the Internal/External
website
• Complete the internal sales activity review, recalculation
and certification annually
• Implement the new rate
• Send your information and supporting backup to
[email protected]
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