Introduction to
Self-Supporting Activities
1
Agenda
HAVE
• Introductions
• Course Objectives
FUN!
• Section I
- Definitions
- Understanding Recharge vs. Income
- Identifying Possible Self-Supporting Activities
- Identifying and Classifying Costs
- Developing Effective Pricing Rationale
- Understanding the Rate Review Process
2
Agenda…….And More!
• Section II
- Integrating with Kuali
- Account Setup
- Establishing and Maintaining Budgets
- Balance Sheets
- Decision Support Report Examples
- Billing Process
- Questions and Answers
3
By the end of this course, you
will be able to….
• Identify possibilities for self-supporting activities
- Differentiate between types of activities
- Identify the differences for university and nonuniversity clients
• Establish rates to recover operation costs
- Identify costs related to self-supporting activities
- Develop pricing rationale and proposal narratives
4
In the near future you may be
able to...
• Establish and maintain financial
accountability
- Establish Self-supporting activity
accounts on Kuali,
- Use the budget to manage fiscal
activity,
- Select Decision Support reports to
best manage your activity.
5
Introductions
•
•
•
•
•
Name
Department
Position
Years experience with Campus
Experience with self-supporting
activities
6
Definitions
7
What is a Self-Supporting
Activity?
• Products or services are provided, for a fee, by
campus departments
• An activity functioning as a non-profit business.
• An activity that collects revenue sufficient to cover all
costs.
• Services offered are necessary to advance the
educational, research, or public service functions of
the University.
8
What are the Activity Classifications?
9
What is an Auxiliary Enterprise?
• Provides non-instructional
support to students,
faculty and staff.
• Examples: Bookstore and
Residence Hall
10
What is a Service Enterprise?
• Provides service to
campus departments and
operating costs are
primarily supported by
recharges.
• Examples: Storehouse
and Fleet Services
11
What is a Sales and Services of
Educational Activity?
• Income producing
activities operated by
academic departments
in connection with the
training of students or
support of research
activities.
• Example: Crocker Nuclear
Laboratory Services,
Dental Clinics.
12
What is an Other Activity?
• Other sources include income
sources which do not fall
naturally into any of the other
classifications. Primarily sales
and services from nonacademic departments.
• Examples: Recreation Hall
(OSSSO) ,Patents (OTHER) or
Research Conferences
(OTHUNV).
13
What is a Teaching Hospital
Activity?
• Revenue-producing
activities operated by
teaching hospitals that
support the clinical
teaching and research
programs.
14
What is NOT a Self-Supporting
Activity?
An Agency Account
- Event/activity is sponsored by a non-university entity
- Event/activity is funded by the participants through
ticket sales or contributions for which a faculty,
student or staff will be responsible for covering any
deficit and/or the balance will not be returned to the
department
• Retirement parties, award banquets, special graduation
ceremonies
15
What is NOT a Self-Supporting
Activity?
How can I get help if I am not sure?
Check General accounting website:
• Step by Step instructions are located at:
http://accounting.ucdavis.edu/GA/howdoi/Univers
ityEvent/index.cfm
or
• Contact Jim Seibert at
joseibert@ucdavis.edu
16
Who are your clients?
• Recharge:
- UC Davis departments (including contracts
and grants)
- Other UC campuses (Interdepartmental)
• Income
- Non-university clients
17
Non-University Clients Defined
• What is a non-university
client?
- A client from outside the UC
system.
- Does not have a Kuali Account
- Pays non-university differential
(NUD) when purchasing goods
or services from UC Davis.
18
You Mentioned NUD?
• The NUD ensures that self-supporting
activities recover full costs by including
indirect costs.
• The NUD is charged in addition to the
calculated recharge rate (direct costs).
• More on this later…….
19
What about core-supported activities?
• General or Registration Fee
supported departments can not
recharge for a service or product
that is within the scope of their
core funded activities.
Why???
20
What about core-supported activities?
• Shifting core-supported activities to
recharge activities is typically done
to free up core-funds by charging
other campus departments.
- Essentially shifting the cost burden to
units that are also taking reductions.
• Certain administrative positions are
included in the F&A overhead rate.
- If you bill Federal contracts and grants
you would be charging double. Also
referred to as “Double Dipping”.
21
How does this relate to our Campus?
22
Revenues
(Excludes Medical Centers)
23
Revenue Break-Out by Activity Type
Service
Enterprises
16%
Auxiliaries
34%
Other
33%
Educational
Activities
15%
Teaching Hospitals
2%
24
Understanding
Recharge vs. Income
VS
25
Recharge vs. Income
Recharge
• Provide products /
services to other UC
departments.
- Kuali Interdepartmental bill (IB)
- Kuali Feed (GLIB)
Income
• Provide products /
services to non-UC
clientele only.
- Cash (SCC)
- Banner (Invoice)
- DaFIS A/R (Invoice)
• Financial object=3900 • Financial object= 0060
• Budget object =SUB9 • Budget object =INCO
26
Recharge vs. Income
Recharge
• Governed by
federal costing
guidelines
Income
• Not subject to federal
costing guidelines.
- OMB A-21 allowable
cost principles.
• Required to recover
direct costs.
• Required to recover
all costs; direct and
indirect (e.g., NUD).
27
Recharge vs. Income
Recharge
• Limited to operating
reserves equal to
8.33% of annual
revenue.
• Required to consider
operating reserves
and deficits in pricing
rationale.
Income
• Can accumulate
operating reserves.
28
Common to both Recharge and
Income Activities
• Rates must be established on a per hour
or per unit basis.
• Pricing rationale worksheets are used to
itemize and calculate costs.
- Different rates should be established for
different levels of services.
• Base & Current Budgets are required for
all self-supporting activities.
29
Let’s Test Your Knowledge!
With a Few Questions…..
30
True or False?
UCD attempts to compete with local businesses
when a profit can be made.
False
Self-supporting activities are an effective tool in
early retirement planning.
False
Base & Current Budgets are required for selfsupporting activities.
True
31
True or False?
Non-university clients pay the nonuniversity differential (NUD).
True
Core support activities can become recharge
activities without much consideration.
False
32
Income or Recharge?
Sale of olive oil to Paesano’s restaurant
Income
Reprographics printing of department
handbook.
Recharge
Bookstore sells grammar book to Budget
Office.
Recharge
33
Income or Recharge?
Surgery performed by
the VMTH to correct
my dog’s “cherry
eye”.
Income
Sale of T-shirts to
public that were
made during class.
Income
34
Income or Recharge?
Analytical services
charged to a Federal
grant for your PI’s
research project.
Recharge
35
Identifying and Classifying Activities
36
Identifying Possibilities
Market Assessment Questionnaire can
be used to assess:
• Core support issues
• Relationship to department mission
(Unrelated Business Income Tax)
• The market potential
• If criteria for operation will be met
• Start up costs
37
Identifying Costs
The following must be
identified for each activity:
• Direct Costs
• Indirect Costs
38
Direct Costs
• Costs that can be directly and
consistently traced to the product or
service.
• Examples
- Personnel costs
• General Administration, if >5% effort
- Materials for the end product
- Equipment Depreciation
39
Indirect Costs
• Costs of conducting business that are
incurred for common or joint objectives.
- Also known as Facilities & Administration (F&A)
Costs
• Cannot be identified readily and specifically
with particular projects or a specific activity
• Indirect costs must be charged to non –
University clients by assessing the NUD.
40
WHY do I have to charge NUD?
• Consumers must be
charged no less than
what the Federal
Government is charged
on contracts and grants.
41
How is the NUD calculated?
• The F&A Sponsored Project Rate is the basis
for calculation.
• Two NUD rates are available:
- Full NUD
• Deducts services typically not utilized by outside
clients
• Department receives percentage back for
departmental administration.
42
How is the NUD calculated?
• Reduced NUD at 8% - Exception required
- Cannot charge Federal clients
- Departmental Markup cannot be applied
- Department does not receive departmental
administration component
- Additional data must benefit the campus
research mission
43
How is the NUD rate calculated?
12
NUD Flowchart
Allowable Costs
• All costs charged to the Federal Government must
be allowable under OMB A-21 guidelines.
• If unallowable costs are included in rates, they will
be rebated to Federal sources by General
Accounting.
- Examples:
Reserve for Improvements
General/Auto/Employment Practices
Liability (GAEL)
• How do I know what is unallowable?
• The Charging Practices for Federally Funded Grants and
Contracts guide located on-line at
http://accounting.ucdavis.edu/EX/casbman.pdf
46
Is it allowable?
• After reviewing the Charging
Practices guide and you are still
unsure if a cost is allowable,
you should apply the “Prudent
Person Test”.
Which hat
belongs to a
prudent person?
• What does “prudent” mean?
- Reasonable
- Careful
47
Is it Allowable?
• What questions should a “prudent
person” ask?
- Is it necessary for the operation of the
activity?
- Can the cost be identified specifically to
an activity?
- Is the cost consistent with institutional
policies, procedures and practices?
• Still not sure?
- Contact Extramural Accounting
48
Costing Resources: Details, Details!
UC Davis P&P Manual
http://manuals.ucdav
is.edu/ppm/conte
nts.htm#340-25
Extramural Accounting
http://accounting.u
cdavis.edu/EX/casb
man.pdf
OMB A-21 Circular
http://www.whiteho
use.gov/omb/circ
ulars/a021/a021.
html
49
Let’s Test Your Knowledge!
With a Few Questions…..
50
Would a Prudent Person Include in
Rates if Federal clients are Charged?
Coffee service for morning technical staff.
No, not necessary for the operation of the
activity.
Costs for direct supplies used while providing a
service.
Yes
Reserve for improvement to renovate office.
No, specifically disallowed by the OMB-A21
51
How about ….
• The bar tab accumulated by
graduate students while
developing the product.
No
• Benefit costs for the
Administrative Assistant who
does purchasing for the service.
Yes, if percentage of time is >
5%
52
To NUD or not to NUD?
• Special reports by A&FS for campus
departments only.
No NUD – only recharged to campus
departments
•
US Geological Service brings injured snake
to UC Davis for surgery
Yes – Full NUD
53
To NUD or not to NUD?
• VMTH service needed to provide research
data on the growth of tumors in small
dogs .
Yes - Reduced NUD
(must be approved by Campus Rate Committee)
• Chemical cleansing process sold to
outside companies
Yes – Full NUD
54
Where we have been...
We have learned to:
• Identify and assess
opportunities,
• Identify costs,
• Determine allowability
of costs,
And Now….
Lets CALCULATE costs.
55
Developing Effective Pricing Rationale
56
Developing a Pricing Rationale
• Once costs have been identified, they must be
calculated.
57
What does pricing rationale mean?
(also known as rate methodology)
• How were the existing rates calculated?
 What cost categories were used? (e.g.,
salaries, benefits, supplies)
 How are the costs allocated? (e.g., number of
tests performed, number of widgets
produced)
58
• The Pricing Rationale worksheet helps organize
costs. Included in this worksheet:
- Personnel costs directly supporting the
activity
- Direct materials used in production
- Indirect or overhead costs – must be able to
track and account for costs.
59
Let’s look at an example
• Molly MSO has
completed her market
assessment and is
ready to develop an
hourly rate to charge
for servicing
specialized lab
equipment.
60
Step 1: Identify Employee(s) and
Billable Hours
61
Step 2:
Personnel Expenses and FTE
Remember:
If Federal contracts or grants
are charged:
1. General Administration costs
can only be included if direct
support is 5% or greater.
2. GAEL Assessment not
included
62
Step 3: Expense Calculation
63
Step 4: Calculate rate
64
Is it Easy to Enter on the Forms?
• Let’s take a look!
• First we need the forms from the
website…
65
While You’re Here……
• If possible, rates should be rounded up to
the nearest dollar or 50 cents.
• Review your market assessment or your
actuals from the prior-year to determine
the actual billable hour or units. They
may not be the same as the calculated
billable hours.
66
While You’re Here……
• Can only depreciate equipment from NonFederal Funds.
• New equipment and start-up costs are
unallowable to federal clients.
• More on this in the Advanced SelfSupporting Class!
67
Narrative for all rate proposals
• Brief description of the
proposed service
What should
I say in the
narrative?
• Brief description of the
rate methodology
including the basis for
estimating sales
68
Narrative for new rates and existing
rates not submitted for 5 years:
• How the service was provided in the past
• Why the service is needed
• Why the service should be provided by
your office rather than purchased from
another unit or from the private sector
• If applicable, comparison of rates with
private sector prices
69
Narrative – Help is a click or
phone call away
• Check with your Dean or Vice
Chancellor’s office for
requirements and forms.
• Use rate forms on BIA
website.
• The Market Potential
Assessment tool is helpful.
70
In-Class Exercise
• Rate Scenarios
• Decide if a rate can be developed. If not,
why?
•
• Divide into groups of three (if you want).
Time allotted: 10 minutes to complete
10 minutes to discuss
71
Rate Exercise – Scenarios
•
A list of common compliance issues and real scenarios are provided.
•
Names have been changed to protect the innocent!
•
Read each scenario and decide if they can submit a rate and if not which
compliance issue fits the scenario.
Agency Account
Shifting Core-Support
None – Rate can be developed
OMB-A21 – unallowable
Included in F&A Rate
72
In-Class Exercise 1 - Answers
73
• Scenario One:
• The Center for Acrobat Science (CAS) is hosting
an event sponsored by Cirque de Soele. Cirque
de Soele would like to charge a nominal fee to
cover basic costs. CAS wants to establish a rate
for this event.
• Submit Rate (circle one): Yes or No
Compliance Issue: AGENCY ACCOUNT
74
• Scenario Two:
• A campus unit that provides free technical support for a
campuswide program wants to off-set some of their
budget cuts by charging campus units for help desk
phone calls.
• Submit Rate (circle one): Yes or No
Compliance Issue: SHIFTING CORE SUPPORT
75
• Scenario Three:
• The Lab for High Level Testing (LHLT) has developed a
new test. This test is very sensitive and very few
customers have expressed interest, but LHLT believes
that this will become popular once it is available. The
clients that have expressed interest are Non-University
entities.
• Submit Rate (circle one): Yes or No
Compliance Issue: None-Rate can be developed
76
• Scenario Four:
• The Analytical Services Lab (ASL) has a special statistics
computer that has finished its federal grant cycle. The
ASL would like to make it available to other researchers
and only want to cover the cost of replacing this
machine by setting up 10 year depreciation. The main
clients are other campus departments and other federal
contracts and grants
• Submit Rate (circle one): Yes or No
Compliance Issue: OMB A-21 – Equipment was
purchased with Federal Funds
77
• Scenario Five:
• The technology group for flower research has an ace
programmer on core funds that is great with web
design. Facing budget cuts, the department wants to
charge 35% of his time to federal contract and grants.
• Submit Rate (circle one): Yes or No
Compliance Issue: Included in F&A Rate –
Part of Department Administration costs
already included in the overhead rate on
the contract or grant.
78
Discussion
• Any surprises?
• Any questions or comments on different
approaches?
79
Understanding the
Rate Review Process
80
Business Contract
Does activity meet the
establishment criteria in
PPM 340-25?
Overview
Overview of
of
Rate
Rate Process
Process
Activity should be approved
by Office of Research or
Purchasing
No
Yes
Yes
Is this a New Rate ?
Yes
Yes
Charge federal
contracts or grants?
No
Rate group review
required
Charge campus
departments?
No
No
No
Non-university
clients Only?
Existing rate:
Increases higher
than planning
guidelines?
No
Yes
Yes
Rate group review not
required; Dean/VC
approval required
Yes
Consistent with
existing or campus
pricing rationale?
No
81
New activities
• BIA must approve new activities that
represent a higher level of risk
 The good/service being provided is mandated
or the unit is the only reasonable provider
 The activity generates more than $50,000 in
annual federal recharge
82
Existing activities
• Approval by BIA is no longer required for all
rate modifications
• The office of the D/VP/VC has the authority
to approve certain modifications
• Office with final approval depends on the
type of modification & risk profile of the
activity
83
Recharge activity modification scenarios –
office with final approval
New rate consistent with existing pricing
rationale
New rate inconsistent with existing pricing
rationale
Rate increase consistent with budget planning
guidelines
Rate increase inconsistent with budget
planning guidelines
Rate decrease
Change pricing rationale
Mandated OR >$50,000
federal recharge
Not mandated AND
<$50,001 federal recharge
Mandated: BIA
D/VP/VC
>$50k: D/VP/VC
BIA
D/VP/VC
D/VP/VC
D/VP/VC
BIA
D/VP/VC
D/VP/VC
D/VP/VC
BIA
D/VP/VC
84
Scenario Definitions
•Consistent with existing pricing rationale:
•Same cost categories + same allocation method = same pricing
rationale
•Consistent with budget planning guidelines:
•Annual guidance from BIA that includes specific policy
adjustments/updates related to recharge activities
Examples:
Increases in employment benefit costs
Collective bargaining unit salary increases
Campuswide salary programs (Automatic Merits and Ranges)
85
What does a change in pricing
rationale look like?
• New cost category: a new rate includes
depreciation or a reserve for improvement
& the old rate does not
• Change in allocation method: a new rate
is calculated on the number of widgets
produced & no longer on the number of
hours worked
86
Office of Record
• Office of the D/VP/VC serves as the office of
record
 Ensure that documents are maintained related to
the establishment, modification & termination of
recharge activities
• File for each activity includes
 List of current rates
 Most recent approval letter & pricing rationale
 Hold historical records for a minimum of five
years
87
What is the timeline for approval?
• Rate Group Required:
- Minimum of 60 days from the
submission of the rate
proposal by the dean, vice
chancellor or vice provost to
the Budget & Institutional
Analysis and Planning.
• Dean/VC Approvals:
-
Check with your Dean/VC office
• Retroactive rate approvals
are not allowed.
88
Don’t Forget……….
• Clients must be properly
notified before rates can be
charged!
89
Accounting and Kuali
90
Integrating with Kuali
To establish a Kuali account:
- Obtain rate approval.
- Rate Committee sends info to
General Accounting.
OR
- Dean’s/Vice Chancellor’s office
sends letter approving rate to
BIA and General Accounting.
91
And then….
• General Accounting:
- Requests Department’s Organization and Account
Manager information
- Assigns an OP fund based on the activity.
• OP fund number drives Sub-fund group.
- Establishes the Unexpended Balance Account.
- Establishes the Provision for Allocation account
(PR+fund#).
- Establishes reserve funds, if necessary.
92
Last steps….
• Dept. initiates a Kuali Account
document for an operating
account.
• Dept. assigns correct account
attributes:
-
OP Fund
OP Account (6 digit ‘legacy’ acct)
Rate Information
NUD
• Call General Accounting for
help.
93
Required Tabs: Assessment
Type
Make sure to click on
the add button
Standard Codes:
Non-University Differential (NUD):
-
NUD3 = Full NUD
Campus Assessment:
-
CAI1= Assessment on Income
CAR1=Assessment on Recharge
Exceptions – Contact Annette Davis at BIA – AMADAVIS@UCDAVIS.EDU
94
Required Tab: Rate Names
• Rate Name A name for every rate is not required. A name for each
group of rates that are presented/reviewed together should be
entered.
• Review Date last date that the rate was reviewed by the campus
rate group or your Dean's/Vice Chancellor Office.
• Next Review Date indicates the next time the rate should be
reviewed This date should be no more than 10 years later than the
Review Date .
95
Required Tabs: Account Indicators
•
•
•
•
Depreciation: check if the approved rate includes depreciation expense.
Reserve for Improvement: check if the approved rate includes a reserve for
improvement expense.
Income Authority Code: Dean or Vice Chancellor or Professional Staff Rate Group
Income Type Code Select the appropriate option for the source of income
- Internal and External Sources, External Only (income), Internal Only (recharge)
96
DETAILED INFORMATION
• Setting up an
account:
- Kuali website
-
• Rate Indicators:
• BIA website:
•
http://budget.ucdavis.edu/rates
http://accounting.ucdavis.edu/doc_Help/COA
/account/self-support.cfm
`
97
Operating Account(s)
• Revenue and expenses must be traceable
to Kuali General Ledger by rate
- Different accounts or sub accounts for each
rate within the same fund
- More details in Advanced Self Supporting
Funds class
98
Budgets
• We have the accounts now what?
99
Budgets are the key to success
• The budget is an important
planning tool.
- Requires accumulation of rates,
customer projections & account
profiles.
• Budget at the object
consolidation level; salaries at
the object level.
- E.g., income=INCO, general
assistance salaries=SUBG
100
When is a base budget needed?
• Establish a base budget
ALWAYS! for all new activities.
• The base budget
establishes the annual
operating budget.
• Use rate proposal.
101
Budget Format
• Revenue budgets are debits (+).
- INC0 (Income) and SUB9 (Recharge)
• Expense budgets are credits (-).
- SB%,SUBS,SUBG, SUB3, SUB6 etc.
• Base Budgets should total to zero.
• Budgets are created and modified in Kuali.
102
One-sided Budget Entry:
Setting Up Self-Supporting Account
• All entered in the TO Section
- aka - the Increase section
• TO Section: Object Code INCO (object
type of
Revenues
IN-Income) $8,000
match
• TO Section: Object Code SUB9 (object
type of
Expenses!
IC-Income, not Cash) $2,000
$8000+ $2000=$10000
• TO Section: Object Code SUB3 (object type of
EX-expenditure) $10,00
103
Example BB - Self-Supporting
104
Example Decision Support Report –
Self-Supporting Base Budget
Total = zero
105
Current Budget
• The current budget is used to manage
current year operations.
- Current budget activity is reflected in general
ledger reports.
- Minimum requirement – review budget to actual
expense at mid-year.
• DS Report 210 is helpful
106
Budget - Self-Supporting
• Can do Base & Current on same doc.
• Remember:
- To establish/increase budget – use the TO
section of the BA
- To decrease budget – use the FROM section
of the BA
• Income + recharge must equal total
expenses
107
Budget - Self-Supporting:
Example
108
DS Tool for Mid-Year Review:
Report 210
• Features
- Percent Available or Spent
- Projections to Year End
• Based on prior year or avg.-to-date
- Can be put into Excel spreadsheet
109
DS Report 210: Percent Budget
Available
110
DS Report 210: Projections
111
More on Reports
112
Remember when reviewing
Kuali reports
General Funds
Self Supporting Funds
• Budgets are
appropriations.
• Expenditures are
limited by budgets.
• GL reports are
analyzed left to right .
• Budgets revenue
estimates.
• Expenditures are
limited by earned
revenue.
• GL reports are
analyzed downwards
(budget vs. expense)
(revenue vs. expense).
113
Self-Supporting – Top to Bottom
Current
Year
Balance
Account
Balance
114
Remember when reviewing Kuali
reports
• Include Balance Sheet in reports when:
- Reconciling your ledgers.
- Reallocating the unexpended balance from
the prior year.
• Exclude Balance Sheet in reports when:
- Budgeting for the year or revising the budget.
- Monitoring your revenue and expenses.
115
Which Decision Support Reports?
• 193 - Statement of Operations
− High level summary of operations at a point of time.
• 55 -
Sub Fund Summary by Consolidation
− Use to reallocate balance carried forward
− Cannot drill down for detail
• 1-
Balance Summary Report
− Use this report if you don't need transaction detail
− Provides account balance and total charges
accumulated.
• 2-
Transaction Listing by Consolidation
− Use to see transaction details of the charges and
credits which have hit your accounts.
116
Report 193 Example
Beginning
Fund Balance
Ending Fund
Balance
117
Report 55 Example
118
FIS 1 Report Example
119
FIS 2 Report Example
120
Unexpended Balance Accounts
• What are those
unexpended balance
accounts and what do
I do with them?
121
Unexpended Balance Accounts
• Annually:
- Income
- Expenses (not encumbrances)
- Net income/loss
• At year end: income & expense totals for all
accounts within a fund are ‘closed’ to a
single unexpended balance account.
• Unexpended balance – accumulation of net
revenues (profit) or deficit (loss).
122
Unexpended Balance Accounts
• Kuali Account:
- A single unexpended balance account for each fund:
OP Fund number + “00” or ‘UB’ (For example,
6601600 or 66016UB).
- Budget is reappropriated to unexpended balance
account and PR+fund# (provision for allocation).
• In August of the new year - Departments must
reappropriate Provision account balance into
operational account(s) prior to spending.
123
Report 55 June Final - 2011
124
Report 55 July - 2011
125
Budget Entry to move funds to the Operating
Expense Account
126
Report 55 August - 2009
127
Unexpended Balance Accounts
• Balance must equal $0
• Other entries: STIP interest, depreciation, rserve
for improvement
• DO NOT CLOSE OR ALTER ACCOUNT
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Let’s Test your knowledge with a
Matching Game
Find a friend
and match the phrases
129
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Billing Process
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Collecting Revenue
• Internal Revenue (recharges):
- Kuali IB document
- Kuali Direct Feed (GLIB)
• External Revenue:
- Point of sale (cash or credit card) use Kuali
Statement of Cash Collections (CR or CCR)
- Invoice customers use Banner or DaFIS
Accounts Receivable modules.
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Basic Billing Requirements
• External customers must
receive invoice
• Recharge (internal) customers
must receive detail of goods
or services provided
- IB doc (items/description)
- Direct feed detail
- Mailed statement (only if feed
detail not sufficient)
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Recharge: Interdepartmental Billing (IB)
Documents
• Only used with an approved rate
- SUB9 must be budgeted
- Exceptions: Agency accounts
• Object code = 3900 or 39XX credit (income).
• Department receiving service debit (expense) –
unique to fund/rate (call GA to establish)
• IB document routed to account managers for
approval.
- Auto-approved after 5 business days.
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You Mentioned Accounts
Receivable Systems?
135
Need More Assistance???
• Accounts Receivable help is just a click away at
http://accounting.ucdavis.edu/AR/.
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Accounts Receivable Resources
• DaFIS Accounts Receivable
-
Student Accounting
• Banner Non-Student Accounts
Receivable
- Student Accounting – new customer numbers
(PPM 330-89 Ex A); invoices (Storehouse-catalog
number 71461-900 in UCD Buy); collections
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Let’s Test Your Knowledge!
With a Few Final Recap Questions…..
138
Recap…….
A self supporting activity...
a)
b)
c)
d)
Operates as a non-profit business
Tries to compete with local businesses
Is your key to early retirement
All of the above
139
Recap...
A self supporting activity...
a)
b)
c)
d)
Operates as a non-profit business
Tries to compete with local businesses
Is your key to early retirement
All of the above
140
A budget is not established to:
a) Establish financial priorities
b) Plan for the upcoming year
c) Ensure there is enough money to
throw a holiday party
d) Monitor fiscal activity
141
A budget is not established to:
a) Establish financial priorities
b) Plan for the upcoming year
c) Ensure there is enough money to
throw a holiday party
d) Monitor fiscal activity
142
A current budget is used to:
a) Something I will never look at
b) Only used for Core funds
c) Manage current year operations
d) All of the above
143
A current budget is:
a)
b)
c)
d)
Something I will never look at
Only used for Core funds
Used to manage current year operations
All of the above
144
The Account Indicator:
a) Is a field in the Kuali Account Maintenance
Document.
b) Identifies the NUD rate that applies to the
activity.
c) Invented by B of A to notify customers of
overdrawn accounts.
d) A & B above
145
The Account Indicator:
a) Is a field in the Kuali Account Maintenance
Document.
b) Identifies the NUD rate that applies to the
activity.
c) Invented by B of A to notify customers of
overdrawn accounts.
d) A & B above
146
The Unexpended Balance:
a) Is the accumulated net revenue from a fund
source.
b) Is the amount that can be spent or must be
covered on future years.
c) A balance sheet account I don’t need to know
anything about.
d) A & B above
147
The Unexpended Balance:
a) Is the accumulated net revenue from a fund
source.
b) Is the amount that can be spent or must be
covered on future years.
c) A balance sheet account I don’t need to know
anything about.
d) A & B above
148
Final Question!
Final
Question
149
Which is not a sub fund
group number:
a) SSAUX
b) SSEDAC
c) BYOB
d) SERENT
150
Which is not a sub fund
group number:
a) SSAUX
b) SSEDAC
c) BYOB
d) SERENT
151
You are not alone...
• Contact your Dean’s or
Vice Chancellor’s Office
with core-support
questions.
152
Now we can..
• Identify a self-supporting possibilities,
• Identify, classify & calculate costs,
• Include the correct information in a rate
proposal,
• Establish a self-supporting activity in Kuali,
• Establish and monitor base and current year
budgets; and,
• Use Decision Support to monitor activity.
153
In the next Advanced SelfSupporting class..
The next
Advanced Self
Supporting
Class?
• More on:
- Federal Rebate
- NUD
- Federal Guidelines
• Introducing:
- Inventory
- STIP
- Reserves and
Depreciation
- Cost Accounting
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