FY2006 Other Education and General Program Accounts

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FY2006 Other Education and General Program
Accounts
OVERVIEW OF E FUNDS
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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

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Differences Between A E

• E
• Generates revenue
• Activity is ongoing
• Most are unbudgeted

• A
• Funded through state appropriations, tuition, VCM
• One-time activities included in A funds
• Most are budgeted

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Unrestricted Funds
Funds that have no limitations/stipulations
placed on them by external (outside of USC)
sources. All E Fund accounts are unrestricted.
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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.

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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.

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On-Going

• Activity is continual and balances carry forward
  from one year to the next.
• One-time activities are not considered to be
  on-going. These activities are handled in a
  departments A account.
• All E fund activities are on-going.

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How Do We Classify E Fund Accounts for
Reporting and Monitoring Purposes?
Types of Activities

• Revenue Generating Accounts
• Service Providing Accounts

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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.

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Revenue Generating AccountsGuidelines

• 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.

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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

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Service Providing AccountsGuidelines

• Rates established (by department) must cover
  costs.
• Rates must be consistently applied to all
  University users.
• Rates are subject to review by the Controllers
  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.

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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/efu
ndform.doc
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UNIVERSITY OF SOUTH CAROLINA REQUEST TO ESTABLISH
E FUND ACCOUNTS (OTHER EDUCATION AND GENERAL
PROGRAM ACCOUNTS)
USC Budget Office, Susie Vitaris, 777-8412
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.
Budgets in Higher Education Workshops 62020-E104
Leslie Brunelli 1/10/06
Susie Vitaris 6/30/2050
Yes
No
No
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UNIVERSITY OF SOUTH CAROLINA REQUEST TO ESTABLISH
E FUND ACCOUNTS (OTHER EDUCATION AND GENERAL
PROGRAM ACCOUNTS)
Yes
Yes
Instruction
Yes
One of these 3 should be answered yes
No
No
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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
Please note.
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1/10/06
62020
E104
X
Budgets in Higher Education Workshops
N
Leslie Brunelli
Y
Susie Vitaris
10
10
1
13
10
00
Activity involved in conducting Budget in Higher
Education Workshops
Susie Vitaris 1/10/06
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Recap of Units 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 littlej_at_gwm.sc.edu
• Telephone [phone]
• Complete Other Education General Programs
  Budget Worksheet form if needed.
• Forward all completed forms to Ralph Summer in
  the Budget Office.

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What is the Role of the Budget Office in
Establishing an E Fund Account?

• Review the units 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.

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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. Name of person and department
responsible for the service. 2. General ledger
account numbers for internal customers being
charged for the service. 3. Description and
cost of the services being performed. 4. Names
and addresses of the external customers being
billed for services. 5. Total volume of
activity for University customers, including
federal grants and contracts, and for external
customers. 6. 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.
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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.

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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.
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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.

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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

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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.

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Keep in Mind..

• Beginning Balance (3XXXX)
• Revenues (4XXXX)
• IITs (6XXXX)
• Transfers In (81XXX)
• Expenditures (5XXXX)
• Transfers Out (86XXX)
• ____________________________________________
• Available Balance

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In This Case..

• Beginning Balance
• Revenues
• IITs
• Transfers In
• Expenditures
• Transfers Out
• ______________________________
• Available Balance

• 33,989.94
• 29,141.14
• 108,387.96
• 0
• - 145,262.80
• - 0
• _________________
• 26,256.24

Note Available Balance Cash Balance
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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

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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.
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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 IITs 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.

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QUESTIONS