FY2006 Other Education and General

Program Accounts

OVERVIEW OF “E” FUNDS

“E” Fund accounts are used by units to track revenues, expenditures, and fund balances associated with activities that are:

unrestrictedself-sustainingon-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

Why Do We Have “E” Fund Accounts?

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

Funds that have no limitations/stipulations placed on them by external (outside of USC) sources.

All “E” Fund accounts are unrestricted.

Unrestricted Funds

Funds with limitations/stipulations place on them by external sources.

Source of funds is primarily gifts, grants, or contractsDefined scope of workSpecific start and end datesDeliverable product

Restricted funds are not E funds.

Restricted Funds

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.

Self-Sustaining

• 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 department’s “A” account.

• All “E” fund activities are on-going.

On-Going

Revenue Generating AccountsService Providing Accounts

Types of Activities:

How Do We Classify “E” Fund Accounts for Reporting and Monitoring Purposes?

Continuing Education Credit or non-credit conferences, workshops,

short courses, and summer camp programs.

Studies Abroad ActivitiesInstructional programs with specific fee based

on location.

Departmental OperatingSelf-supporting activities associated with

providing services to other University units or external organizations.

Types of Revenue Generating Accounts

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.

Revenue Generating AccountsGuidelines

Departmental Recharge Centers – Cost reimbursement for departments that provide a common use service to other units on campus such as:

printingcentral supply centers copy centersUniversity Technology Services

Annual revenues should consistently exceed $10,000

Service Providing Accounts

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.

Service Providing AccountsGuidelines

Complete the “Request to Establish ‘E’ Fund Accounts” form and submit to Budget

Office

http://busfinance.admin.sc.edu/budget/doc_06/efundform.doc

How do I establish an “E” account?

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: 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:

Recommended Account Name Recommended Account No. Chairman’s Name: Principle Investigator’s Name: Begin Date: End Date: Specific Information Needed to Establish an ‘E’ fund Account:

Information Needed Examples of Positive Re sponses Unit’s Response

Do the funds identified to support this activity belong to USC? Yes - the funds have no external restrictions and are controlled by the requesting unit.

Is the source of funding provided for this activity an outside organization that has placed limitations on how the funds can be spent?

No – the funds have no external restrictions placed on them by an outside organization.

Will this activity be primarily funded by donations? No – the account will be supported by revenues generated from (1) user fees for products or services, (2) student fees for continuing education, studies aboard, renovation fees, or technology fees, or (3) research-related indirect cost revenues.

UNIVERSITY OF SOUTH CAROLINAUNIVERSITY OF SOUTH CAROLINAREQUEST TO ESTABLISH ‘E’ FUND ACCOUNTS (OTHER EDUCATION AND GENERAL PROGRAM ACCOUNTS)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-E104Leslie Brunelli

1/10/06

Susie Vitaris

6/30/2050

Yes

No

No

Will the proposed revenues generated to support this activity exceed $5,000 annually? Yes – but this may not occur in the first year of operation.

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?

Yes

What educational and general program does this activity support?

Instruction, research, public service, academic support, student services, institutional support, or physical plant

Would you classify this activity as continuing education? Yes 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?

Yes – I have attached a completed ‘Other Education and General Programs Budget Worksheet’ for your review. Yes – the revenues will exceed $10,000 but not in the first year of operation.

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 – The source of revenue for this activity is the IDC revenues generated on this unit’s grant accounts

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.

UNIVERSITY OF SOUTH CAROLINAUNIVERSITY OF SOUTH CAROLINAREQUEST TO ESTABLISH ‘E’ FUND ACCOUNTS (OTHER EDUCATION AND GENERAL PROGRAM ACCOUNTS)REQUEST TO ESTABLISH ‘E’ FUND ACCOUNTS (OTHER EDUCATION AND GENERAL PROGRAM ACCOUNTS)

Yes

Yes

Instruction

Yes

No

No

One of these 3 should be answered “yes”

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…….

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 WagesFringe BenefitsSuppliesOther (Specify)

Subtotal:

Add:Prior Year Costs in Excess of RecoveriesAnticipated Replacement Cost for EquipmentGeneral 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 OfferedAnticipated Cost per Unit per unitAnticipated Rate to be Charged for the Period per unitNotes:--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 byappropriate University offices.PREPARED BY:DATE:

OTHER EDUCATION AND GENERAL PROGRAMS BUDGET WORKSHEET

1/10/06

62020 E104 X

Budgets in Higher Education Workshops N

Leslie Brunelli

Susie Vitaris

Y

10 10 1 13 10 00

Activity involved in conducting Budget in Higher Education Workshops

Susie Vitaris

1/10/06

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@gwm.sc.eduTelephone: 777-6872

Complete “Other Education & General Programs Budget Worksheet” form – if needed.

Forward all completed forms to Ralph Summer in

the Budget Office.

Recap of Unit’s Role

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 Budget Office in Establishing 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.

What is the Role of the Unit in Maintaining an “E” Fund Account?

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.

Revenue

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.

Recommended Revenue Codes

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.

Expenditures and Transfers

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

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.

Fund Balance

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______________________________

Available Balance

33,989.94

+ 29,141.14

+ 108,387.96

+ 0

- 145,262.80

- 0_________________

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

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.

Routine Financial Entries

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.

How do I deactivate an account?

QUESTIONS