University at Buffalo Guidelines for Decentralized Financial Management. Table of Contents

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1 University at Buffalo Guidelines for Decentralized Financial Management Table of Contents I. Principles for Decentralized Financial Management II. Account Condition and Monitoring III. Financial Management Guidelines 1. State Operating Fund and Dormitory Income Fund Reimbursable 2. Income Fund Reimbursable and State University Tuition Reimbursement Accounts 3. Endowment Income Fund Accounts 4. Capital Fund Expenditures 5. University at Buffalo Foundation Administrative Accounts 6. Faculty Student Association Agency Accounts 7. Research Foundation Administrative Accounts. IV. Allocation, Expenditure and Revenue Transfers V. Permanent Allocation Adjustments and Savings Requirements VI. UBBusiness VII. Operating Manual for the Buffalo Administrative Resource System (BARS) VIII. NACUBO Financial Classifications IX. State Cash Receipts and Petty Cash Reimbursement Procedures X. Principles, Policy, and Procedures for Setting Fees, Fines, Deposits & Service Charges University Business Services

2 I. Account Condition and Monitoring INTRODUCTION Principles four and eleven specify the University s expectations regarding how Financial Administrators will balance their accounts and also how University Business Services will monitor activity. The type of monitoring will vary depending on the entity or fund involved. A. UB Foundation, Faculty Student Association Agency, and Research Foundation Administrative Accounts Expenditures are not permitted from these accounts without sufficient cash balances to cover those expenditures. Consequently, expenditure transactions from these accounts will not be processed without sufficient cash balances to cover the expenditures. Account guidelines issued by each of these organizations are included in Section III of these guidelines as follows: UB Foundation Item 5 Faculty Student Association Item 6 Research Foundation Item 7 B. Monitoring State Accounts Financial Services is responsible for monitoring the status of the University's State Accounts (State Operating Budget, Income Fund Reimbursable (IFR), State University Tuition Reimbursable (SUTRA), Dormitory Income Fund Reimbursable (DIFR), and Endowment Income Fund (EIF)). Monitoring will vary based upon the type of account as described below. 1. State Operating Budget Accounts State accounts are grouped in clusters reflecting the University s organizational structure. The groupings are referred to as areas of financial responsibility and typically represent organizational units such as colleges/schools and equivalent administrative areas. State operating budget accounts are monitored at the financial responsibility level and are not permitted to expend in excess of total allocation available. Monitoring by Financial Services will be done on a postaudit basis. When an area of financial responsibility becomes over committed the Financial Administrator will be asked to take corrective action by Financial Services. These actions may include expenditure or allocation transfers. University Business Services

3 State Operating and IFR Expenditures Made in Advance of Allocations The University does not have a budget process that ensures that all allocations for State accounts are in place at the beginning of a fiscal year. For instance, capital allocations are not received until late in the fiscal year. Consequently, there must be mechanisms in place that authorize expenditures to be made in advance of the receipt of those allocations. The Vice President for University Services grants these authorizations in accordance with the Principles of Decentralized Financial Management. The Vice President for University Services, in consultation with the Provost, must approve the State operating or IFR accounts that may be used for this purpose. See Section III Item 1 for additional financial management guidelines related to State operating budget accounts. 2. Income Fund Reimbursable and State University Tuition Reimbursable Accounts The allocation for an IFR or SUTRA account is analogous to a line of credit and is extended based on the process set forth in the IFR and SUTRA Budget Development Guidelines. During the fiscal year, Financial Services will monitor an account s allocation on a post-audit basis. Financial Administrators will be requested by Financial Services to initiate corrective action for accounts where expenditures exceed allocation. Financial Services will also monitor an account s revenues, expenditures and cash balances to determine if the account has available cash to support the account's allocation and expenditure needs. Cash shortfalls may be caused by actual account revenues that do not meet budget estimates, or where revenues are received later than anticipated. Financial Administrators may be requested by Financial Services to take action to bring an account into balance. These actions may consist of allocation adjustments and expenditure or revenue transfers. See Section III Item 2 for additional financial management guidelines related to IFR and SUTRA accounts. 3. Endowment Income Fund Accounts (EIF) Monitoring will occur at the account level by Financial Services on a post-audit basis. Income distributions are made to endowment income accounts at the beginning of the fiscal year. With few exceptions, funds available are limited to current year income distributions plus unexpended balances from prior years. Initial allocations for accounts may not exceed the current year's income distribution plus any estimated carry over balance from prior years. Once the previous fiscal year is closed, Financial Services will review actual carry over University Business Services

4 amounts in relation to the estimates to ensure that current year allocations are within available balances for each fund. Where available balances are less than allocations, Financial Services will request that Financial Administrators reduce allocations to the available funding level. Financial Services will also monitor account balances throughout the fiscal year. Financial Administrators will be contacted by Financial Services to take corrective action when an account s cash balance becomes negative or projected expenditures exceed the available allocation. Please note that fringe benefit costs are included in projected expenditures. See Section III Item 3 for additional financial management guidelines related to EIF accounts. C. Actions Taken on Over-Committed State Accounts The following actions will be taken for units at the Financial Responsibility level that are in a negative balance in the State Operating Budget or do not appear to have sufficient allocation for operations through the end of the fiscal year, and for EIF, IFR and SUTRA accounts that are over expended in total allocation or that have negative cash balances. 1. Financial Services will contact the Financial Administrators for areas or accounts with an over-committed total allocation or cash balance that were identified during their review. Explanation for the over expenditure, and specific plans for eliminating it, will be required from the Financial Administrator. These plans may include transferring expenditures from the over expended account, or moving allocation into the account. Procedures for making these transfers are included in Section IV of these guidelines. 2. Financial Services will inform the Controller of any problems that cannot be immediately resolved. The Controller will evaluate the status of these accounts to determine which accounts should be reported to the Provost or Vice President for University Services. The Provost or Vice President for University Services in consultation with the Controller or appropriate Vice President will determine the appropriate actions to take. 3. The Provost or Vice President for University Services may direct Financial Services to impose a freeze on additional OTPS expenditures from any account or financial responsibility area where the Financial Administrator fails to respond to Financial Service s request for information, where a plan to eliminate the over expenditure is not established, or where the plan is not adequate to address the over expenditure. University Business Services

5 III. 1. State Operating Fund and Dormitory Income Fund Reimbursable (DIFR) A pool of revenues, none of which is associated with a specific account or Financial Responsibility, supports each of these funds. The fiscal allocation designates the amount of the pooled revenue directed to a particular account. The annual allocation designates the amount of next year s pool that will initially be made available to a particular account next fiscal year. Allocations for the new fiscal year are initially established towards the end of May. The initial allocations presuppose sufficient revenue (tax dollars and tuition or room rental (DIFR)) will be available to support this level of allocation. If sufficient revenues are not available, reductions may be distributed based on an internal financial plan endorsed by senior management. The following guidelines apply to both the State Operating and Dormitory Income Fund Reimbursable accounts: 1. The expenditure and commitment of funds are monitored by Financial Services at the Financial Responsibility Level (college/school or equivalent administrative areas) at the total allocation level. This information is shared with the Controller, Vice President and Provost. 2. Program administrators are responsible for ensuring that the funds are not over committed or over expended at the Financial Responsibility Level. 3. Budget Revisions and journal transfers are the primary tools for managing the allocations and expenditures, presupposing that the program administrators are utilizing BARS-Financial, Info-Source and UBBusiness. 4. If the State Operating allocation is overspent at the end of the fiscal year, the next year s budget will be reduced by the over expenditure. Likewise, if any allocation is unspent at the end of the fiscal year, the next year s budget will receive a credit in the amount of the unspent funds. These transactions are normally completed in November after the close of the prior fiscal year. BEST PRACTICES The University at Buffalo is required to periodically report plans and projections to State University, therefore internal consistency across areas in budgeting methodology is critical to ensure efficient and reasonable reporting. There are budgeting habits which help to create more useful reporting and aid in monitoring each individual area. These also assist in preventing the double or triple use of the same allocation, which can result in over expenditure. University Business Services

6 The following best practices are highly recommended: 1. All continuing Personal Service Regular (PSR) positions should be fully funded on an annual basis, i.e. Prorata Salary rate (FTE [Full Time Equivalent] x Full Time Annual Salary) should be equal or less than the annual allocation for the line fragment (defined as a unique line, title and account combination). GFT (Geographic Full Time) positions in the School of Medicine use the split percentage: = (FTE Fragment / FTEs all accounts) x Salary rate. 2. Maintain all temporary positions (needed for the current fiscal year only) with only fiscal FTE and fiscal allocation. 3. Balance Major Objects (Personal Service Regular, Temporary Service and Other than Personal Service) so that the free balance for each is zero or positive at the Financial Responsibility or account level. 4. Maintain only the Personal Service Regular lines which are needed, deleting any surplus lines. Other people might need them and be able to fund them. If new positions are required, please request classification at least a month before they are needed. 5. Do not use undistributed lines for long-term storage of FTEs and allocations. Do not use the OEC 0998, Unassigned Salaries and Wages, for long-term storage of allocation. Both of these actions indicate that the allocation and FTE are not needed. 6. Maintain adequate funding in Personal Service Regular for overtime, holiday pay, etc. if you have these obligations. University Business Services

7 III. 2. Income Fund Reimbursable (IFR) and State University Tuition Reimbursable Account (SUTRA) Guidelines The following guidelines apply to both Income Fund Reimbursable (IFR) and State University Tuition Reimbursable (SUTRA) accounts. 1. The IFR fund is the financial and administrative mechanism through which the University conducts income-producing activities not specifically funded within the regular operating budget, and which are considered outside the restricted purposes of other funds, corporations and entities. SUNY's IFR policies can be found in the Policies section of the University Business Services web site at: 2. Financial Services will initiate the annual budget development process, calculate, and set the initial allocation for the upcoming fiscal year, based on the process set forth in the IFR & SUTRA Budget Development Guidelines. Financial Services will contact Financial Administrators to update program and account information for the new fiscal year. 3. Financial Administrators are responsible for revising allocations throughout the fiscal year as required. Financial Administrators should conduct frequent reviews of account income and expenditures, so that deviations from projections or irregularities are detected and prompt corrective action is taken. IFR worksheets and guidelines to aid in adjusting allocations and projecting revenue and expenditures are available at the web site address: by choosing the following options: Administrator, Account Management, Endowment & IFR, Budget Process, and then IFR, or in the Policies section of the same web site. 4. Financial Administrators are responsible for maintaining IFR accounts in a balanced status, under the concept of self-sufficiency where each account should support all costs reasonably attributable to its operation. An IFR account will be deemed balanced when the program s cash balance is zero or positive at fiscal year end, including recognition of the General University Service Fee (GUSF) and fringe benefit costs, which are both charged against an account s revenue. Financial Services may request Financial Administrators to produce a plan to eliminate negative cash balances. 5. Financial Administrators are required to follow all internal control procedures related to the collecting, recording, depositing and reconciling of cash. Cash receipt internal control procedures are available at the web site address: by choosing the following options: Administrator, Account Management, Cash Receipts, or in Section IX of UB s Guidelines for Decentralized Financial Management in the Policies section. University Business Services

8 6. Financial Administrators are responsible for adhering to State University policies and procedures regarding fees, fines, deposits, and other charges associated with IFR activity. The State University fee policies are available from Section X of UB s Guidelines for Decentralized Financial Management located in the Policies section of the website. Also, the Request for Fee Approval form and guidelines for requesting approval for a new fee or an increase to a present fee can be found in the Forms section at: 7. Financial Administrators are responsible for executing expenditures in accordance with New York State purchasing requirements and guidelines. For additional information, access Administrator, then Purchases at: 8. Financial Administrators are responsible for providing information to Financial Services as requested. Examples: revenue subject to New York State sales tax is requested quarterly, fiscal-year fee revenue and accounts receivable amounts are requested annually. 9. Financial Administrators should notify Financial Services in writing (memo, , etc.) of any changes in account name, program director, contact person, address, etc. 10. Financial Services will provide data to Financial Administrators that is necessary to carry out their day-to-day management responsibilities. The monthly Program Status Report and Report of Receipts, as well as current allocation, expenditure, and encumbrance information are available using the Reports section of the People & Money system found at: Similar information is available from InfoSource ( and BARS. 11. Financial Services will assess and recover GUSF in accordance with the University at Buffalo GUSF policy, which is available in the Policies section at the web site address: Financial Services will provide training, information, and guidance whenever necessary for proper account maintenance. Forms, guidelines, and policies are available from our web site University Business Services

9 III. 3. Endowment Income Fund Account Guidelines 1. Budgeting of all endowment fund income must be consistent with the terms for income use stated in the applicable deeds of gift. The Financial Administrator should maintain in their files a copy of the legal opinion for the funds that they control. Endowment and IFR Account Services staff are available through consultation with SUNY Legal Counsel to assist the Financial Administrator in determining the appropriateness of a potential expenditure. See the Budget Development Guidelines for more detailed information on the endowment budget process. 2. Financial Administrators are responsible for executing expenditures in accordance with New York State purchasing requirements and guidelines. For additional information access Administrator then Purchases at: 3. Financial Administrators must not over expend their individual accounts allocations. An account s allocation and expenditure information is available on BARS, InfoSource and the Money Home section of the People & Money system found at: 4. Financial Services will monitor the cash balance of the endowment funds at the account level and report apparent problems or inconsistencies to the Financial Administrator. 5. Fringe benefit costs are charged annually (September following the close of the fiscal year) to appropriate accounts. Allocation for fringe benefit costs must be maintained for anticipated charges. Personal Service Regular and Temporary Service expenditures, with the exception of Teaching, Graduate and Student Assistants, are subject to fringe benefit costs. 6. Endowment fund income that will remain unallocated or unexpended through the course of a fiscal year, and that is not being accumulated for a particular purpose, should be transferred to the appropriate restricted expendable or unrestricted endowment fund during the budgeting process for the following fiscal year. 7. Requests to liquidate restricted expendable or unrestricted endowment funds must be approved by the appropriate dean/vice president, the Office of the Provost and University Business Services. SUNY s Board of Trustees may also approve liquidations. 8. Section II Item B3 of these guidelines contains additional information related to account condition and monitoring for Endowment Income Fund Accounts. 9. The document titled Description of Endowment Funds provides additional information regarding the nature of the endowment funds and can be found in the Policies section of the University Business Services web site at: University Business Services

10 III. 4. Capital Funds Expenditure Guidelines The following guidelines govern the expenditure of these funds in FY 2002/2003 and until a new statement is issued superseding these guidelines. Capital allocations will be arranged by establishing an account with signature authority assigned to the Dean, the chief financial officer in the School and Jeanne Broderick in University Facilities. All expenditures made in this account should be consistent with the guidelines below. The Provost s Office will conduct periodic post audits of expenditures made to these accounts (but will not review or handle any purchase transactions made against these accounts). The Provost reserves the authority to require units to move expenditures from these accounts that are inconsistent with these guidelines for expenditures. These funds will carry forward to the next fiscal year if unspent in this fiscal year. But, we encourage you to spend these funds fully by no later than 6/30/2003. GUIDELINES Allowable Expenditures o Equipment items with greater than a $500 purchase price o Computing hardware peripherals with greater than a $100 purchase price o Renovation of facilities costs for projects in excess of $5,000 o Bundled computing systems with both software and hardware components in excess of $1,000 o Furniture items in excess of $250 per unit purchased Unallowable Expenditures o Supplies and other operating expenses o Personnel costs (save those associated with allowable renovation costs) o Contractual services (other than for services associated with facilities modification or the installation of equipment) o Software (free-standing outside of a bundled implementation) o Facility work order costs If you are unsure about the allowability of an expenditure with respect to these guidelines, please contact Jeff Dutton ( ) or Jeanne Broderick ( , jbroderi@facilities.buffalo.edu). Jeffrey E. Dutton Vice Provost University Business Services

11 III. 5. University at Buffalo Foundation Accounts These guidelines cover administrative accounts established by the University in the University at Buffalo Foundation (UBF) Inc. UBF provides general support to the University through its annual budget process. A portion of this funding is made available to the University s Financial Plan process. The Provost and Vice President for University Services determine the allocation of funds through the University s financial plan process. Financial Services assists in the process by communicating details regarding the funds allocated and maintaining the detail records of all financial plan allocations. Once an allocation of UBF funds is determined Financial Services works with the unit receiving the funds and UBF administrative staff to determine the appropriate method to deliver the funds. This can be accomplished in one of three ways. Funds may be transferred to an existing account or if necessary a new account may be established. If the funds are for a purpose in which only a few transactions will be necessary, expenses may be charged directly to a central financial plan account. Financial Services is responsible for requesting any of these three alternatives. UBF is responsible for establishing any new accounts. For all accounts, the monitoring of expenses occurs at the account level and funds available are limited to that of the approved allocation. Guidelines for expenditure of UBF funds allocated through the financial plan process are the same as for other accounts administered for the University and its units by UBF. These are available at the UBF home page Information on account activity and balances can be obtained through UBF s financial reporting system known as UBFIRST. Information on access is available at the UBF home page. Questions regarding the administration of UBF accounts should be directed to UBF staff at University Business Services

12 III 6. Agency Account Program The Faculty Student Association (FSA) operates certain activities at the University at Buffalo as authorized by the contract between the two parties. Generally these activities consist of auxiliary enterprises such as food and vending services. In addition, the FSA is authorized by contract and SUNY policy, to administer agency accounts. Agency accounts are those accounts for which the entity holding the funds is not the owner but acts as a custodian or fiscal agent. Agency accounts can hold funds related to activities involving individual students, faculty or staff, and organizations. These activities are social, recreational, academic or cultural in nature, and are to benefit the University Community or some element thereof. The preponderance of the activities for which the FSA maintains agency accounts are related to academic purposes. The nature of the activity or type of transactions will determine whether an agency account may be established with the FSA. Some examples of activities, the revenue from which may be administered through agency accounts, include: 1. Off Campus Activities Where the activity or program is held off campus in facilities that are not owned or leased by the State, where the involvement of State employees occurs outside their normal service obligation, and where public service rather than academic program support is the primary purpose served. This could apply to art, music or theater events where an admission fee is charged. 2. Professional Associations Faculty and staff are sometimes elected to office in outside professional associations. As part of their duties of office, these individuals may be responsible for handling monetary assets of the association, such as dues, conference registration fees, etc. Such funds are appropriately handled as agency accounts. 3. Academic Journals Academic journals are often edited by faculty in their capacities as members of outside professional organizations. Such editorships are frequently rotated from one association member to another, with no single campus claiming a proprietary interest in the journal itself. The revenues and expenses related to this type of activity are appropriate for agency accounts. 4. Student Activity Fees and Other Student Related Activities SUNY Policy calls for mandatory student activity fees to be administered by a custodial and disbursing agent designated by the representative student organization and approved by the campus chief administrative officer. The FSA may serve as the custodial and disbursing agent. The FSA may also act as agent for other student related activities such as honor societies and student clubs. 5. Other Registration fee income from conferences and related expenses are appropriately handled through agency accounts. Financial components of certain University Business Services

13 activities such as funds other than tuition for international overseas programs may be handled as agency accounts. Activities that should not be included in agency accounts as defined by SUNY guidelines include: Educational programs Accounts that require cash advances Personal checking accounts that are funded by advances from an FSA agency account. FSA agency accounts are used because the FSA provides an expedient vehicle for processing transactions for these special activities that cannot be readily processed through normal State administrative procedures. The FSA Central Accounting Office provides invoice processing, check writing, and payroll processing. The authorization for establishing an agency account comes from the Executive Director of the Corporation or the controller. The initiating document is called an "Account Data Sheet" sent by the special program official(s) to the controller s office (sample attached). The Account Data Sheet contains the name of the account, the source(s) of funds, the purpose(s) for which these funds are to be used, the date the account becomes effective and, if relevant, the date it terminates, and a specimen signature of the person(s) who can authorize disbursements from the account. The responsibilities of the FSA are 1. Establish the account 2. Accept deposits for the account 3. Disburse available funds upon request made with a FSA Check Request (copy attached) signed by an authorized individual, if the description of the purpose for the disbursement is not in conflict with the purpose(s) stated in the Account Data Sheet or amendments thereto. 4. Report receipts, disbursements and balance in the account on a monthly basis to a designated individual, usually the person named in the Account Data Sheet. It is not the responsibility of the FSA to: 1. Verify source(s) of funds 2. Determine validity of reasons for disbursements beyond comparing the stated purposes on the purchase requisition with the authorized purposes stated on the Account Data Sheet 3. Prevent shortfalls in special program funding, beyond alerting designated program individuals to actual or potential cash shortages 4. Underwrite any program costs which exceed the amount in the account less the service charge 5. Notify the payee of the group s tax exempt status. University Business Services

14 6. Verify payee account status. The Faculty Student Association charges a 7% on each deposit as mandated by the University. Additional fees for the banking and payroll processing activities such as shown below are applicable: Check Stop/Replacement Fee Payroll processing fees NSF Check Payroll Reports Wire Transfers IRS Form 1099 University Business Services

15 AGENCY ACCOUNT DATA SHEET ACCOUNT # Account Name Contact Person Telephone Number Fax Number Address Campus Address Purpose for which funds may be used Activation Date Termination Date: Authorized Signatures: Print Signature Date University Business Services

16 Agency Accounts Procedural Guidelines 1. FSA has no authority nor does it exercise any regarding the appropriateness of the expenditure, the amount so expended or the payee. 2. FSA is not responsible for actions of the agency account or its employee in cases such as fraud, misappropriations, overpayments, and manipulations of records and transactions, or similar acts. 3. FSA assumes that upon receipt of the ledger copy at the end of each month, the agency will check it against its own records for accuracy and notify FSA immediately of any discrepancy. 4. No Agency account will be allowed to overdraw its balance. 5. If payroll is to be paid from an agency account, a balance equal to one months payroll and related costs must be maintained. Payroll will take preference over disbursement forms. 6. When a deposit is composed of checks or other items where there is a possibility of non-payment, then an adequate waiting period will be required before disbursement can be made from the agency account. This is also required of foreign items. 7. A properly authorized check request form must be received by F.S.A. before a check can be drawn; no checks will be drawn by a telephone call. 8. Properly authorized Agency Account check request forms received by 4:30 on Monday in the F.S.A. accounting office will be ready for pick up on the following Monday afternoon, provided they meet the above Guidelines. Authorized agency personnel may pick up checks at F.S.A. if they sign the appropriate form, or they will be sent by Campus Mail. No personal delivery is possible 9. An up-to-date account data sheet is required for all Agency Accounts. 10. All university guidelines and rules in relation to Agency Funds must be complied with, as well as all State University of New York, Federal, State and local laws and regulations. 11. Agency account funds are legally different from F.S.A. funds and as such agency account holders have the responsibility to file with State and Federal Governments whatever reports are necessary, which may include form 1099 Miscellaneous Income and 990 Exempt Organization. 12. Agency account holders may not use the F.S.A. sales tax exemption number or Federal Tax ID number. Agency accounts holders are not to make representation to any person, organization or company that they are part of the Faculty Student Association. 13. FSA will file on behalf of an agency account the appropriate payroll reports with the government. Charges for these reports will be deducted from the agency account. 14. Vouchers will not be accepted by FSA if it appears that signatures are rubber-stamped or if someone has signed an authorized signature and then added initials. 15. All agency fund deposits must be made at the F.S.A. office in Fargo Quad Room 146. University Business Services

17 16. All checks deposited should be made payable to F.S.A. 17. By signing below, your agency thereby understands the above conditions and agrees to them Signature Date University Business Services

18 FSA AGENCY CHECK REQUEST Payable to: Address: Invoice#: Invoice Date: Reference: Description: Date Requested: Date Need: Agency Acct#: Amount: $ Mail Check or Give Check to : Name/Address: Requested by: (Authorized Signature must be on file with FSA) FSA Approval: University Business Services

19 FSA AGENCY DEPOSIT FORM Agency Account Name: Agency Account #: Date: Cash Check Other $ $ $ Total Deposit $ Person to Contact in Case of Discrepancy: Name: Phone Number: Request by: (Authorized Signature must be on file with FSA) Received by FSA: Name: Amount: Date: $ University Business Services

20 III. 7. Research Foundation Administrative Accounts These guidelines cover administrative accounts established by the University in the Research Foundation of SUNY (RF). Accounts established for awards that are funded by external sponsors are not covered by these guidelines. For questions related to awards funded by external sponsors, please contact the Office of Grants and Contracts at or review the Project Director s handbook online at The majority of the University's RF administrative accounts are funded by Facilities and Administrative (formerly indirect) cost recovery funds collected on sponsored program activity. The first section of these guidelines addresses those accounts. Other administrative accounts for service centers, conferences, and royalties are covered in the second section of the guidelines. University Business Services' Office of Grants and Contracts is responsible for establishing and monitoring the status of all RF administrative accounts. For all accounts, the monitoring of expenses occurs at the account level and funds available are limited to the approved budget. Accounts Funded by Facility and Administrative Cost Recovery Funds Facilities and Administrative (F&A) cost recovery funds are collected by the RF as a result of direct costs paid on the University's sponsored program activity. Central costs of the RF are assessed against these F&A revenues, and the balance is deposited in a Master Award account controlled by the University. Functional accounts are then funded from this Master Award account. The allocation of available F&A funds is determined as part of the University s internal financial plan process. The funds are used to support various administrative accounts for the Provost, academic Deans, and academic support units; organized research units; research support units; and research incentive programs authorized by the Provost and/or VP for Research. The following summarizes the various types of accounts that may be established from RF F&A funds and the restrictions and allowable expenditures that can be made through each. University Business Services

21 Administration, Other Indirect Support, and General Institutional Services Accounts The Master Awards are initially set up for a one year period (in order to control any payroll encumbrances) and receive funding as they are established. Functional projects are then established for each unit receiving RF funding from the University s internal financial plan. Units may sub-allocate their funds by sending requests to the Director of Grants and Contracts Financial Services, requesting the establishment of additional projects to be funded by their approved allocation. The time period for each project is determined at the discretion of the awarding unit. A project s end date may be requested to run beyond the initial one year period, however, since the initial award period is only for one year, any payroll commitments beyond the one-year period will not appear on the project during the first year. At the conclusion of the initial year, the Master Award will be extended and the future commitments will then appear against the project. Requests for project extensions beyond the initially designated funding period must be submitted by the awarding unit to the Director, Grants and Contracts Financial Services. Units are encouraged to use previous year s funds before using new funds, in order for old awards to be closed in the RF Business System, and to minimize the complexity of the review and monitoring needed by departments. Monitoring by Grants & Contracts Services occurs at the project level, where expenditures may not exceed the budgeted amount. An annual review of project balances should be performed by the awarding units. Upon reaching their designated termination date, projects with remaining balances of less than $100 will be automatically closed by Grants & Contracts Services, and the balance returned to the awarding unit s functional project. A definition and a description of the appropriate expenditures for the various types of accounts within this classification follows. Since institutions are able to receive reimbursement from sponsors for expenses in areas such as administrative services, building space, utilities, janitorial services and libraries, the classification of these accounts is very important. UB s F&A (indirect cost) recovery rate is created based on the expenditures from these types of accounts. 1. Sponsored Funds Administration - this includes the office(s) responsible for administering monies awarded for sponsored projects. Funds in this account are used to cover expenditures generated from the activities of these offices. Appropriate expenditures in this function include employee salaries, wages and fringe benefits; supplies; travel and office equipment associated with activities such as: departmental purchasing administering sponsored project payroll and personnel billing and collecting from sponsors preparing and submitting final reports performing property duties related to administration preaward activities (for example developing budgets, processing applications, and establishing accounts) University Business Services

22 At least 80 percent of the duties of staff assigned to accounts established within this function must be directly related to sponsored programs administered by the RF. 2. General Administration - this includes support of administrative offices and other general expenses that do not relate solely to one of the major functions of the University. Staff assigned to accounts established for general administration may not devote more than 80 percent of their time to administering sponsored projects for the RF. Appropriate expenditures include employee salaries, wages, and fringe benefits, supplies, and travel expenses. Office equipment found in areas of general administration, such as the Vice Presidents offices, is included as well. 3. Maintenance and Operations - this includes central service organizations that are responsible for the administration, supervision, operation, maintenance, preservation, and protection of the physical plant. Appropriate expenditures include janitorial and utility services; repairs and ordinary or normal alterations of buildings, furniture, and equipment; care of grounds; and maintenance and operation of buildings and other plant facilities. 4. Departmental Administration - this includes administrative and support services that benefit department activities in academic deans offices, academic departments and divisions, and organized research units (such as institutes, study centers, and research centers). Departmental administration also includes proposal development and other specific expenses associated with seeking external support at the department level. Appropriate expenditures include administration of sponsored programs at the department level, such as monitoring accounts and processing personnel forms and purchase requisitions. 5. Student Services - this includes services to students. Appropriate expenditures include payments to deans for student services; admissions, registrar, counseling, and placement services; student advisers; student health and infirmary services; catalogs; and commencements and convocations. 6. Libraries - this includes operation of the libraries, including the cost of books and library materials purchased for the libraries. 7. General Institutional Services - this includes services or service units of general benefit to all the major functions of the University. Examples of such services are the computer center, automotive, mail, telephone, and central stores. University policy on service centers must be followed when establishing recharge rates for costs charged back to sponsored projects. For additional information on service center accounts, see University Business Services

23 8. Institutional and Departmental Support Includes activities or functions that directly support institutional and departmental functions that cannot be reasonably allocated to specific functions or departments. Note: This classification should only be used when one of the other classifications is not appropriate. 9. Academic Support this includes activities that support the primary functions of instruction, research, and public service. This classification should be used to support academic administration and separately budgeted course and curriculum development. 10. Organized Activities These are activities or functions that are budgeted and accounted for that provide support to specific objectives not related to another classification related to the institution s missions: instruction, research and public service. Support and Development Accounts These accounts and their term dates are authorized by the Provost and/or the VP for Research. A carry forward of unexpended balances beyond the project period must be approved by the Provost and/or the VP for Research. Monitoring by Grants and Contracts Services occurs at the account level and expenditures may not exceed the awarded budget amount. A definition and a description of the appropriate expenditures for the various types of accounts within this classification follows. 1. Sponsored Program Development - this includes support of broad new programs, the purposes of which are to enhance and/or upgrade the capability to attract future sponsored support. Examples of appropriate expenditures include: purchase of scientific equipment that strengthens or upgrades the research or training capability of an academic unit operation of a formal grant-in-aid program involving submission of applications for funding by investigators and review by peer groups or other committees travel to scientific conferences not related to current projects purchase of scholarly journals or publications pilot project support necessary to attain competitive position for external funding development costs of research centers and facilities Seeking support for a specific sponsored project is not an appropriate expenditure for this group of accounts. University Business Services

24 2. Organized Research - this includes activities that directly support the conduct of existing sponsored projects or programs. These accounts combine expenditures appropriate to the Direct Sponsored Program Support and Sponsored Program Development Accounts. Examples of appropriate expenditures include: funding of programs in order to continue the research effort between periods of externally sponsored support (especially the support of key personnel) purchase of equipment primarily required to maintain current capabilities (such as replacement equipment or enhancements to existing equipment to maintain the unit at the "state of the art") attendance at scientific conferences not covered by current project funds. recharge for general institutional services Instruction and Departmental Research Accounts Instruction and Departmental Research includes general teaching and training activities of the operating location, whether the activities are credited or non-credited, and whether they are offered through regular academic departments or separate divisions such as summer school. Appropriate expenditures include research development and scholarly activities within academic departments that are not separately budgeted as organized research, and the support of graduate and teaching assistants. Many of the expenditures related to the monies transferred to support SUNY activities are appropriate to this function as well. Physical Plant Accounts The accounts in this group are generally established for the period of time within which completion is anticipated. The definition and description of appropriate expenditures for these accounts are provided below. Alterations and Renovations of Physical Plant - this includes structural changes to existing buildings, offices, and laboratories that are of general benefit to one or more of the major functions of the University. Appropriate expenditures include creating additional laboratory space in an existing building and subdividing a building. Physical Plant Facilities - this includes new plant facilities or major rehabilitation programs that generally benefit one or more of the major functions of the University. Capital Equipment - this includes major equipment acquisitions that are of benefit to more than one major function of the University. Accounts must University Business Services

25 remain open until all appropriate charges are recorded. Appropriate expenditures include heating and air conditioning systems. Unreimbursable Costs Funds spent for legitimate RF business expenses that cannot be included in the F&A rate calculations under the provisions of OMB Circular A-21 are unreimbursable indirect costs. In most cases these costs are not allowable to the above listed accounts. However, under very unusual circumstances, the Provost or appropriate VP may approve these types of expenditures. Expenditures that are unreimbursable in accordance with Circular A-21 include: entertainment alcoholic beverages housing costs of institutional officers club memberships most advertising, promotion, and public relations expenses severance pay in excess of institutional policy fines, penalties, parking tickets lobbying alumni activities trustees costs For a more complete listing of unreimbursable expenditures refer to: The complete text of the Federal Office of Management and Budget's Circular A-21 can be found at: Service Center Accounts Other Research Foundation Administrative Accounts 1. Service and Facility Accounts are established to record the costs of a University service or facility of benefit to sponsored programs administered by the University. Costs are incurred on the Service and Facility account and recovered through recharges to sponsored program accounts. Examples of such services include photocopying services and laboratory analysis. These accounts are fiscal year accounts limited to a term of one year. New fiscal year accounts are automatically established with balances rolled over from the old fiscal year. 2. University Service/Revolving Accounts are established to accumulate charges from sponsored program accounts for support services provided from State operations such as mail or central stores. These accounts do not require a term date. University Business Services

26 For additional information (policy and forms) on all Service Center accounts, see Conference Accounts Conference accounts are established for receipt and expenditure of funds for conferences and seminars. These accounts are funded when admission or other fees are collected from conference or seminar participants. Expenditures are made against these accounts in support of the conference or seminar for costs such as speaker fees and administrative costs. All income and expenditures must be recorded and processed within 45-days of the conference and seminar. Original receipts are required to back up all expenditures. Accounts will be closed once all income and expenditure activity is processed. For additional information regarding these accounts see Campus Royalty Accounts Royalty accounts are established to record the receipt of royalties, licensing fees, etc. received in connection with a campus-supported invention. Funds are distributed per the Royalty Distribution Policy at: University Business Services

27 IV. Allocation, Expenditure, and Revenue Transfers Background In 1992, Guidelines for the Decentralized Management and Control of Personal Service Regular Funds were issued which transferred authority and responsibility for management of Personal Service Regular (PSR) to the Provost and Vice Presidents and their designees. In 1993, Guidelines for Budget and Expenditure Transfers were issued to provide assistance and direction to administrators in managing their resources under the enhanced flexibility. Since then the University has moved increasingly to an "all funds" environment where reliance on revenue sources other than the State Operating Budget has increased. In recognition of the related additional increases in authority and responsibility, Principles for Decentralized Financial Management have been issued. As a consequence, these guidelines for allocation, expenditure, and revenue transfers have been updated. Principle four requires that individual accounts or Financial Responsibilities for the State Operating Fund and DIFR must be balanced within each fund. Integral to maintaining a balanced condition is the appropriate use of allocation, expenditure, and revenue transfers. This document identifies when and how to properly initiate these transfers. Since Financial Administrators have developed different approaches to managing and controlling their accounts, these guidelines are not intended to restrict any sound approaches, but rather to provide information on the requirements that exist, the tools that are available, and recommended practices. Allocation Transfers Two allocation amounts are carried in the University s financial system. The first is the fiscal allocation and refers to the allocation available in the account for the current fiscal year. For State Operating accounts, the allocation referred to as the annual allocation, is the ongoing permanent amount that will be available in subsequent years. For Income Fund Reimbursable, State University Tuition Reimbursement, Dormitory Income Fund Reimbursable and Endowment Income Fund accounts, the annual allocation will reflect the future year s allocation upon completion of the budget development process, which occurs each spring. This section deals with the general topic of transfers of fiscal and annual allocation. A. All Appropriated Operating Funds 1. Allocation transfers must be within a given appropriated fund State Operating (SO), Income Fund Reimbursable (IFR), Endowment Income Fund (EIF), Dormitory Income Fund Reimbursable (DIFR), and State University Tuition Reimbursable Account (SUTRA). University Business Services 8/2007

28 2. Allocation and Full-Time Equivalent (FTE) transfers can be designated as temporary (current fiscal year only) or permanent (current, plus future fiscal years). For temporary changes, only the fiscal allocation and FTE are involved in the transfer. For permanent changes, the annual allocation and FTE, and possibly the fiscal allocation and FTE are involved in the transfer. The annual and fiscal amounts may be different. 3. Transfers of allocation within any appropriated fund can be made between all objects of expenditure (PSR, TS, and OTPS). The decrease side of a transfer of allocation cannot create a negative free balance for Temporary Service (TS) or Other Than Personal Service (OTPS) within an individual account. 4. Allocation transfers are implemented by completing and transmitting a Budget Revision Form. B. State Accounts 1. State Operating and DIFR Budget Accounts a) Transfers of allocation must be balanced i.e., increases must equal decreases for both fiscal and annual changes. b) A best practice for budget management is to fully fund, on an annual basis, all of the ongoing PSR positions within an account or sub-account. If this is done, FTE levels will be consistent with PSR allocation available. Although the University has flexibility in establishing positions and FTE levels, there is a requirement that SUNY provide the State Division of the Budget and the Legislature with plans and periodic reports on the State University Financial Plan. State University is required to set a level of staffing which can be supported by its Financial Plan, and therefore requires the same of each campus. 2. Income Fund Reimbursable Accounts a) Net increases or decreases in allocation or FTE may be requested. A request to increase allocation must be supported by sufficient cash balance in the account and corresponding reduction in Reserves if necessary. If an account has excess allocation, it is important that the Program Director reduce the allocation, as this amount can then be used to accommodate other requested increases at UB. b) The total IFR allocation for the campus sets an upward limit on spending. Increases in allocation for individual programs depend on the availability of uncommitted allocation. 3. Endowment Income Fund Accounts a) Net increases or decreases in allocation or FTE may be processed. A request to increase allocation must be funded by new gifts, unallocated balances, or University Business Services 8/2007

29 restricted expendable or unrestricted funds. For EIF programs the use of funds must be consistent with the deed of gift. b) The total EIF allocation for the campus sets an upward limit on spending. Increases in allocation for individual programs depend on the availability of uncommitted allocation. C. Approval/Process 1. Transfers of allocations for all State appropriated funds may be completed any time during the current fiscal year prior to the last week of June. The exact date will be announced in the annual memorandum that notifies the campus of year-end financial transaction cut-off dates. 2. Transfers of allocation require appropriate approval as determined by the policy of each administrative unit. Expenditure Transfers A. General 1. Expenditure transfers are permitted between accounts within the same State fund and between accounts in different State funds (SO, IFR, EIF, DIFR and SUTRA). 2. Expenditures must remain in the same object of expenditure when they are transferred (i.e. PSR expenditures cannot be transferred to OTPS). 3. Expenditure transfers to IFR programs must be consistent with the purpose of the IFR program. 4. Expenditure transfers to EIF accounts must be consistent with the deed of gift for the fund involved. B. PSR and Temporary Service Expenditure Transfers 1. Complete this online form, identifying expenditures that are to be transferred. Once complete, journal transfers may be viewed in People and Money or BARS. For People and Money visit the UB Business website. On the right hand side of the page click People and Money in the UB Business Systems area. Once logged on, select, Money Home, click State and enter account number. Payroll transactions may be found under the PSR and Temp Service tabs. Transactions are also located on the BARS Financial System, within the data retrieval process (DAR), in the Payroll Inquiry Line Detail Action (PIL). All or part of the expenditures for a payroll period may be transferred. University Business Services 8/2007

30 1. Future expenditures are not transferable. They may be recorded in the correct account by timely processing of a Personnel Transaction Form. If the change is temporary, a Personnel Transaction Form reversing the transaction will be required. 2. Expenditure transfers are processed through the payroll distribution system on a bi-weekly basis. C. Other Than Personal Service Expenditure Transfers 1. Send a memorandum or Interdepartmental Invoice (IDI) to Nancy Kreppenneck at 418 Crofts Hall, North Campus and identify the OTPS expenditures to be transferred. The memorandum must include the account(s) to, account(s) from, Purchase Order number or other reference, vendor, and amount. 2. To transfer expenditures for honoraria, the voucher number, payee and amount are necessary. D. Approval Process 1. Transfers of expenditures for all State funds (SO, IFR, DIFR, SUTRA and EIF) may be requested at any time during the current fiscal year and up to the following mid-july. The exact date will be announced in the annual memorandum, which notifies the campus of year-end financial transaction cut-off dates. 2. Transfers of expenditures require appropriate approval as determined by the policy of each administrative unit. Revenue Transfers A. General 1. Transfers of revenues between IFR accounts, between SUTRA accounts, and between IFR and SUTRA accounts are permitted. 2. A revenue transfer between a designated Summer Sessions account and either a General IFR or SUTRA account must take into consideration the impact of the flat tax effect on the Summer Sessions account. If the flat tax should not be charged to or retained by the Summer Sessions account, perhaps an expenditure transfer is a better avenue. 3. Send a memorandum to Financial Services identifying the amounts and accounts involved. University Business Services 8/2007

31 B. Approval/Process 1. Transfers of revenue may be completed anytime during the fiscal year and will be effective on the date processed. 2. The cash balance in the account to be debited must be sufficient to accommodate the transfer. Transfers of revenues require appropriate approval as determined by the policy of each administrative unit. Questions General questions regarding these guidelines should be directed to Davina Desnoes or Beth Corry in Financial Services. For questions regarding specific transactions, please contact: A. Allocation Transfers Davina Desnoes Tricia Canty Brendan Davis B. Expenditure Transfers 1. PSR and TS: Tricia Canty Davina Desnoes OTPS: Nancy Kreppenneck Mark Mariglia C. Revenue Transfers Sean Gardner University Business Services 8/2007

32 V. Permanent Allocation Adjustments and Savings Requirements Each fiscal year the University implements an Internal Financial Plan that aligns the funding available that year, particularly from the State Operating Budget, with institutional priorities and needs. In addition to new funding, one of the ways the Internal Financial Plan is balanced is through identification of internal sources. In some instances, a single source such as the utility budget may be tapped either temporarily or permanently. In other instances, a general assessment may be made to University units. Again, this assessment may be in the form of a fiscal savings requirement, temporary for one year, or a permanent allocation reduction, ongoing for all future fiscal years. These assessments are made first at the level of major units (President, Provost, Vice Presidents). An all funds base is used for making these distributions. Included in the all funds base are the State Operating Budget, Income Fund Reimbursable accounts, State University Tuition Reimbursable accounts, Endowment Income Fund accounts, Research Foundation administrative accounts and UB Foundation activities accounts. Certain expenditure categories within these funds are excluded, such as utilities, scholarships and fellowships, IFR salary recovery and pass through accounts. Total assessment amounts are determined and then distributed to the President, Provost, and Vice Presidents using the all funds base. The President, Provost, and Vice Presidents then distribute the assessments to units within their organizations. Financial Services provides administrative support in this process including instructions and forms for identifying and collecting information needed to process the related financial transactions. It is expected that assessments be distributed as soon as possible to the level at which financial control for the various funds is exercised. Only in rare instances will major units be allowed the option of placing the amount of the assessment in a single account for later redistribution rather than identifying sources immediately. Permanent allocation reductions are closely tied to adjustments in the State Operating Budget. Consequently, units must meet these assessments by identifying funds within the State Operating Budget. Saving requirements, however, can be met with any of the funding categories identified in the first paragraph. University Business Services 2003

33 VI. UBBusiness A new source for administrative business information is UBBusiness located at ( General information is organized by visitor classification (i.e. administrator, employee, researcher, vendor). Human Resource and Financial information can be found under People and Money. (This site will eventually be the primary source of information, as access to the BARS system is phased out.) People and Money is accessible from the Quick Links on the main page, and under Administrator, Account Management, Personnel and Financial Information links (see below). This site provides the user with the ability to view and download data for further analysis. People and Money is accessible using a UBIT name and password once access to Infosource has been established. Upon selecting this link you will be prompted for your user name and password (your UBIT name can be found at and Infosource access can be requested through your department). Once you pass the secure signon screen you will see the following main menu: University Business Services 2003

34 Choosing Money Home from this menu will bring you to the main selection page of the money section: University Business Services 2003

35 Here you have a variety of options that will allow you to filter your search. You may filter by Account Number, Financial Responsibility Code, Function or Line Number. Most of these options allow you to either look up a value or select a value from a drop down list. The accounts that you are able to see follow the same security profile as set up in BARS and Infosource. Once you make a selection, there are several areas that are available for you to view including: account summary, PSR, Temp Service, OTPS, IFR and others. On any page where you see the green Excel symbol, you are able to download all of that information to an Excel spreadsheet by simply clicking on the Excel icon. You may also run predefined reports in the Reports section (a selection on the main menu). Finally, there are many other options available in UBBusiness People and Money, which include viewing historical information (one fiscal year back), running quick queries and looking up user support tables. If you should encounter any problems with the site please report them to: ubbfeedback@business.buffalo.edu. University Business Services 2003

36 VII. UNIVERSITY AT BUFFALO OPERATING IN THE Buffalo Administrative Resource System FINANCIAL SYSTEM H E L P!!! (CONTAINED WITHIN THESE PAGES) Prepared by the University Budget Office, 6/14/90 Revised by Budget Operations, December 2002 University Business Services 2003

37 I. INTRODUCTION AND ARCHITECTURE OF THE SYSTEM This is a How to manual which highlights the inquiry features in the BARS financial system - how to access and use them. The system can be traveled by use of menus or expert commands. The application can be accessed by tabbing down to the desired process or action on the menu and pushing enter; or by the use of the expert commands by tabbing to the appropriate space on the top line of the screen and keying in the 3 character commands - process and action codes - and pushing the enter key. On some keyboards, the enter key is labeled as return. This will bring up the action screen. Once the operator has learned the system, the expert command will become indispensable, since it bypasses all of the menus, and takes the operator directly to the desired action. This will become clearer as the reader continues through this commentary. On the bottom of the various screens, there are program function (PF) keys listed, directing the operator to various other features, which are available at that particular juncture. On some terminals the program function keys are designated as F rather than PF but they serve the same function. Please pay particular attention to this capability. Each inquiry action will be presented separately in the remainder of this manual. HOW TO ACCESS BARS If access to BARS is not authorized and if the reader would like access, please call Budget Operations for a BARS Request for Financial Access/Termination form or download it from the Forms section of our web site: Host on Demand (HOD) is the software being employed to facilitate connection to the mainframe, and has replaced Omnipath in that capacity. Please consult with your technical services staff to obtain access to HOD. The web site address is: You will see a log-in screen similar to the one below. Enter your User ID and Password (the same as your UB IT user name and password). Press Enter or click Log On. University Business Services 2003

38 The Configured Sessions screen will have one or two computer icons: one for BARS, and a second icon if you have access to the Albany system. Double-click on the proper icon to access the system you desire. Both sessions can be open at the same time. The HOD window as well as the session windows can be minimized for use during the day. Click on the icon to access BARS. On the logon screen, type CICS and push enter. University Business Services 2003

39 This will bring up the security sign-on screen. Enter your BARS user ID, BARS password, and push enter. If the sign-on fails for any reason, clear the screen using escape or the appropriate clear key for your machine (the key used for clear and reset are dependent on your keyboard configuration). Then type CSSN in the upper left-hand corner, and push enter. The sign on screen will reappear. This time use capital letters for the sign on attempt. Note that the system will prompt you to periodically change your password. III. HOW TO ACCESS THE FINANCIAL SYSTEM AND SYSTEM SUPPORT TABLES After the sign-on has been completed, a list of the various options available to the user will be displayed. Enter the appropriate option number and push enter. Another way of selecting the desired system is to tab down to it and push enter. If you have access to the system support tables, it will appear as a separate system. The queries available in the financial system will be presented first and the queries with the system support tables will be discussed towards the end of this narrative. University Business Services 2003

40 IV. HOW TO ACCESS THE FINANCIAL MANAGEMENT PROCESS MENU Choose the Financial option. This brings up the Financial Management Process menu which will display the processes available to the user. The main financial menu includes the various processes as follows: Data Retrieval (DAR) is the principal process for retrieving information from the system. There are five inquiry actions within this process which will be examined. The Budget Revision (REV) process is the means by which the FTE and dollar allocations are modified through revisions which are submitted by the University Community. There are two inquiry actions within this process which will be discussed. V. HOW TO EXTRACT INFORMATION USING DATA RETRIEVAL (DAR) Choose the Data Retrieval option. The Data Retrieval Process (DAR) is the main mechanism to retrieve information from the database. There are built-in help capabilities (PF1) for the inquiry (INQ) action, which are designed to provide the user with the necessary information to extract data at many different levels, dependent on security. To access a particular action, tab down to it and push enter. This will bring up the action menu where the inquiry can be requested. University Business Services 2003

41 A. Accounting Transaction Inquiry (ATI) The Accounting transaction inquiry (ATI) action allows access to all Other Than Personal Service (OTPS) transactions which have been recorded for a particular account for a specified period of time during the fiscal year. The date range can be adjusted so that the transactions which are retrieved can be comprehensive or very selective. In addition, transactions for the prior fiscal year may be retrieved by typing the prior year in place of the current year. The beginning (from) date used for the prior fiscal year would have to fall within that year. If prior-year transactions are being requested, the To date can be set beyond June 30, since liquidations of encumbrances, journal transfers and finalization of a transaction may continue through September. These transactions are downloaded from the SUNY Central System (GAAP), and the date indicates how current the information is. University Business Services 2003

42 B. Inquiry (INQ) and Help Screens (PF1) The Inquiry (INQ) action within DAR is the main query to access the present financial condition of a particular account, administrative area(s) at various levels, a function, a major purpose, a fund or the total campus condition for all appropriated funds - if access is permitted. Inquiry into the previous or future fiscal year can also be accomplished by typing over the fiscal year and the budget type. Please see the table below for fiscal year and budget type designations by date ranges. The default will always be to the current fiscal year. FISCAL YEARS DATES PRIOR (P) CURRENT (C) FUTURE (F) 7/1/02-6/30/ /1/03-6/30/ /1/04-6/30/ /1/05-6/30/ /1/06-6/30/ /1/07-6/30/ This action responds to the information provided by the operator, and the level of specificity or generality is defined by those parameters (not all information has to be completed; only that which is required to adequately specify the level of detail). The resulting inquiry at the account level defaults to a summary by major object (PF6), but can be drilled down to objects and object expenditures (PF2 and PF3), and to line detail and line expenditures (PF4 and PF5). Additional current line information can be accessed from the line detail screen by tabbing down to the line in the PF4 or PF5 display and pushing enter. Note that the only option after getting this result is to depress PF2, which will take you back to the previous line detail screen. At the higher levels, it yields information at only major object and subobject levels. The major object result includes personal service regular FTE (filled and vacant), allocation, expenditure, encumbrance and free balance at the specified level. University Business Services 2003

43 A help function is available for each INQ parameter by depressing the PF1 key. To transport the required code back to the inquiry screen, tab to the desired code and push enter. In the help function for Account Number, there is the capability to target an account by full or partial account description. It will place the user into the list where the title is or would be if it existed as spelled. Samples of the results of the help function are shown on the following pages. University Business Services 2003

44 University Business Services 2003

45 C. Line Inquiry (LNQ) The line inquiry (LNQ) action provides current and historical information (PF4) about a line, indicating when budget/personnel changes were transacted within the financial database. Enter the line number and push enter. The transactions which are referenced in the historical records can either be budget revisions which change the FTE and dollars, or a maintenance change which is used for updating the other data elements maintained by your budget analyst. The changed items will be highlighted. A suggestion is to continue pressing PF4 until the message Function key PF04 is undefined in this context appears. This will be status of the line at the beginning of the fiscal year. Then by depressing PF5, the sequence of changes will be in chronological order. The prior and future fiscal years can also be accessed by over typing the fiscal year and budget type (see table on page 6). University Business Services 2003

46 D. Payroll Inquiries There are two payroll inquiries which are available within the process DAR. These actions are Payroll Inquiry-Account Detail (PIA) and Payroll Inquiry-Line Detail (PIL). These expenditure distributions are downloaded from the SUNY Central System (GAAP) to eliminate duplicate input. The prior fiscal year can also be accessed by tabbing to and over typing the fiscal year. 1. Payroll Inquiry-Account Detail (PIA) Payroll Inquiry-Account Detail (PIA) is set up very much like the ATI action except that the expenditures are salary payments and are displayed by financial subobject by payroll. Any journal or expenditure transfers would also be shown in this action. The last date on which the file was updated will be shown on the action screen. University Business Services 2003

47 2. The Payroll Inquiry-Line Detail (PIL) The Payroll Inquiry-Line Detail (PIL) displays the salary and wage expenditures by line by pay period. This action can be used either for an account or a line. The combination of account and line will not work. The payroll period range can be adjusted so that the detail includes any range of pay periods (from one payroll period to the entire fiscal year). Again, the fiscal year may be typed over to capture prior-year information. Please remember that the split payroll at the beginning of a fiscal year is normally payroll #6. If you would like ALL personal service transactions for a fiscal year, the pay period range should be from Payroll 06 to Payroll 05. Please consult a payroll calendar for further information. VI. HOW TO EXTRACT INFORMATION USING BUDGET REVISION (REV) The Budget Revision (REV) process includes two inquiry capabilities, Inquire (INQ) and Unapplied Revision Inquiry (INU). University Business Services 2003

48 A. Inquire (INQ) The Revision (REV) Inquire (INQ) action operates in a similar fashion to the Data Retrieval Inquiry in that there are multiple variables which can be used to isolate the data which is of particular interest to the user. The department revision number is available to allow the units to assign and inquire by their own unique revision number. It is a 5-character alpha-numeric field. Input protocol is to input the department s assigned number starting with the first space in the field, so any resulting spaces would be at the end of the field. Therefore, a query on department revision number would have to match this structure. This query is supported by help screens identical to the Data Retrieval Inquiry. In order to access the help tables, tab to the appropriate line and depress PF1. When the table appears, tab to the required information, press enter and it will be transported to the action screen. The Revision Inquire (INQ) action is a flexible option which can yield all of the allocation and FTE changes by revision number, at the account level, or by financial responsibility for the specified fiscal year. If the inquiry is requested for a particular account, all of the transactions are displayed and sorted by line, by subobject and date. A finer level, object range or line, can be specified at the account level by completing the appropriate spaces. If the object range is being completed, the object help screen should be consulted (PF1) for the valid ranges. In addition, the date range and permanent/temporary selection can be used to further zero in on the needed revisions. A line can also be independently queried. There are four possible status codes for budget revisions which have been input into the system: AP Applied These revisions have been processed and are reflected in all the allocation data within BARS. FT Future These revisions have been entered and will be applied in the future. They are not reflected in the other allocation data within BARS. ER Erred These revisions have been entered and are awaiting correction before being applied. They are not reflected in the other allocation data within BARS. DE Deleted These revisions have been canceled and will never be applied. University Business Services 2003

49 B. Unapplied Revision Inquiry (INU) The unapplied Revision Inquiry (INU) action replaces the manual posting requirements. It includes the current allocations at the most discreet level (PF5) first screen, as well as any future or erred entries which are pending. Any pending/erred entries will be subtotaled and the cumulative change (PF3) will be shown. PF4 shows what the allocations and FTE will be when these entries are applied. It also indicates precisely in what objects the allocation resides. VII. HOW TO ACCESS THE SYSTEM SUPPORT TRANSACTIONS PROCESS MENU The System Support Tables System has also been migrated to some users. The processes available through this system are Chart of Accounts (COA), Object of Expenditure (OEC) (title codes and financial objects) and the Schedule of Positions (SOP). Tab to the desired process and push enter and the available actions for that process will be displayed. University Business Services 2003

50 VIII. HOW TO EXTRACT INFORMATION USING SYSTEM SUPPORT TABLES (SST) A. Chart of Accounts (COA) Within the Chart of Account (COA) process, there are two actions, browse (BRS) and inquire (INQ). 1. Browse (BRS) The Browse action is a flexible inquiry screen where any of the lines may be utilized to select a population of accounts which is needed by the user. Behind each line are the standard help screens which are also common to the data retrieval inquiry as well as the budget revision inquiry. Please see page 7 for a discussion of this help feature. It also allows the user to search the chart of accounts based on account title (description). It will place the user into the list where the title is or would be if it existed as spelled. Also, the account can be selected by tabbing to it, pushing enter and then it can be transported into another query. University Business Services 2003

51 2. Inquire (INQ) The Inquire Action (INQ) requires the user to know the account number and brings up the information which is associated with that account number. The data returned includes Fund, Major Purpose, Entity, Trial Balance, Financial Responsibility, and the codes for each. B. Object of Expenditure Code (OEC) The next process is Object of Expenditures Code (OEC). The actions are Browse (BRS) and Inquiry (INQ). The items included in this process are codes for personal service positions as well as financial objects. University Business Services 2003

52 1. Browse (BRS) The browse process allows for a selection by either OEC code, description, or object type. There is a help table which provides the object type, which is not necessary for the browse action but is needed for the inquiry action. The object types differentiate between title codes (01 & 04) and financial objects (02, 41, 42, 50, 58 & 65). University Business Services 2003

53 2. Inquiry (INQ) The object inquiry (INQ) action allows the user to select by either financial object or title code. The preceding zero should be input to make the object or title code 5 digits. Please see the previous discussion to determine OEC type. C. Schedule of Positions (SOP) Within the Schedule of Positions process, there is only one action - Inquire (INQ). University Business Services 2003

54 Input the personal service regular line number and push enter. This will yield either the current certification of the line if there is only one record, or a choice of records. If there is a choice, tab down to the desired record and push enter. This will bring up the certification information for the line item. If you have any questions on this material or the BARS System, please call Davina Desnoes at Prepared by: Alfred Attfield, Director, Budget Operations Carol Adler, IFR Administrator December 11, 2002 University Business Services 2003

55 VIII. NACUBO Financial Classifications Principle nine of the Principles for Decentralized Financial Management indicates the University s commitment to following industry standards in its account classifications and transaction processing. Numerous parties have an interest in the financial information of colleges and universities. These include branches of government at all levels, members of governing boards, donors, accrediting agencies, colleges and university associations, and individual institutions as well. Financial information is made available in annual financial statements and reported in surveys. Public policy decisions are often made based on conclusions drawn using this information. Comparisons among peer institutions are also made based upon reported information. The need to report accurately and consistently both from year to year and with other institutions can t be overemphasized. The National Association of College and University Business Officers (NACUBO) in conjunction with the Financial Accounting Foundation, Governmental Accounting Standards Board, Financial Accounting Standards Board and the American Institute of Certified Public Accountants set the standards for accounting and reporting for colleges and universities. Institutions are expected to follow these standards in their accounting and budgeting practices. NACUBO publishes the Financial Accounting and Reporting Manual (FARM), a subscription service, to assist institutions in interpreting and complying with these standards. Sections 312 and 313 of the FARM provide detailed guidance with regard to the classification of revenues, allocations, expenditures, and transfers. SUNY currently uses a slightly dated expenditure scheme for internal purposes in which classifications are referred to as functions. The third and fourth digits of the account number specify the functional classification of the account. For external reporting and comparisons, accounts are cross walked to the classifications specified in the FARM. One of the most significant variances between the SUNY functions and the classifications prescribed in the FARM is the treatment of the Dean s operating accounts. SUNY still classifies this as Instruction and FARM includes it in Academic Support. Even with this adjustment it is possible to report erroneously if expenditures directly related to an academic department are charged to a Dean s operating account. Accounts are established by Financial Services based on requests received from Financial Administrators. Financial Services determines the appropriate expenditure classification based on information provided and in consultation with the Financial Administrator. It is the Financial Administrator s responsibility to ensure that transactions processed against the account are consistent with the account s financial classification. University Business Services 2003

56 IX. STATE CASH RECEIPTS AND PETTY CASH REIMBURSEMENT PROCEDURES Table of Contents I. INTRODUCTION... 1 II. CASH RECEIPTS... 1 A. DEFINITIONS... 1 B. SCOPE... 1 C. INTERNAL CONTROL PROCEDURES Separation of Duties Record of Receipt... 2 a) Receipt Forms... 3 b) Event Tickets... 3 c) Cash Register Restrictive Endorsement Depositing Cash Receipts... 5 a) Cash Receipts... 5 b) Credit Cards Refunds Reconciliation... 7 D. CHANGE FUND... 7 E. NON-STUDENT REVENUE COLLECTIONS... 7 III. PETTY CASH REIMBURSEMENT... 9 A. DEFINITIONS... 9 B. SCOPE C. REIMBURSEMENT PROCEDURES Signature Form PC Vouchers Internet Purchases Sales Tax Exemption Cash Advance Fund Procurement Cards IV. SOURCES AND CONTACTS V. EXHIBITS Exhibit A Receipt Forms Exhibit B1 Ticket Representative Reconciliation Exhibit B2 Ticket Analysis Exhibit B3 Ticket Representative Reconciliation Exhibit B4 Ticket Representative Worksheet Exhibit C Concessions Cash Out Form Exhibit D Endorsement Memo Exhibit E Transmittal Form Exhibit F - Memorandum Exhibit G Sample Refund Request Memo Exhibit H Report of Receipts Exhibit I Sample Petty Cash Fund Signature Form Exhibit J Petty Cash Reimbursement Request (State Funds) Exhibit K Tax Exempt Certificate Exhibit L - Pro Forma Revenue Contract Exhibit M Past Due Notice University Business Services 2003

57 IX. STATE CASH RECEIPTS AND PETTY CASH REIMBURSEMENT PROCEDURES Table of Contents I. INTRODUCTION... 1 II. CASH RECEIPTS... 1 A. DEFINITIONS... 1 B. SCOPE... 1 C. INTERNAL CONTROL PROCEDURES Separation of Duties Record of Receipt... 2 a) Receipt Forms... 3 b) Event Tickets... 3 c) Cash Register Restrictive Endorsement Depositing Cash Receipts... 5 a) Cash Receipts... 5 b) Credit Cards Refunds Reconciliation... 7 D. CHANGE FUND... 7 E. NON-STUDENT REVENUE COLLECTIONS... 7 III. PETTY CASH REIMBURSEMENT... 9 A. DEFINITIONS... 9 B. SCOPE C. REIMBURSEMENT PROCEDURES Signature Form PC Vouchers Internet Purchases Sales Tax Exemption Cash Advance Fund Procurement Cards IV. SOURCES AND CONTACTS V. EXHIBITS Exhibit A Receipt Forms Exhibit B1 Ticket Representative Reconciliation Exhibit B2 Ticket Analysis Exhibit B3 Ticket Representative Reconciliation Exhibit B4 Ticket Representative Worksheet Exhibit C Concessions Cash Out Form Exhibit D Endorsement Memo Exhibit E Transmittal Form Exhibit F - Memorandum Exhibit G Sample Refund Request Memo Exhibit H Report of Receipts Exhibit I Sample Petty Cash Fund Signature Form Exhibit J Petty Cash Reimbursement Request (State Funds) Exhibit K Tax Exempt Certificate Exhibit L - Pro Forma Revenue Contract Exhibit M Past Due Notice University Business Services 2003

58 I. INTRODUCTION IX. STATE CASH RECEIPTS AND PETTY CASH REIMBURSEMENT PROCEDURES Most of the cash transactions, which occur at the University at Buffalo (UB), take place in the financial offices responsible for collecting the University s accounts receivable and for paying its bills. However, a significant number of smaller transactions are, for reasons of effective and efficient operation, handled by individuals in various operating units. Fees, charges, etc. are received and goods/services are purchased by individuals on behalf of University departments. While departments need the ability to handle these cash transactions, they must also accept responsibility to administer these transactions with sufficient internal controls and to advise Financial Services that they are handling cash transactions. This Cash Receipts and Petty Cash Reimbursement Procedures Manual has been developed by Financial Services and is designed to be straight forward, simple, and efficient, while providing the internal controls necessary to safeguard university employees. These procedures are based on guidelines contained in Volume XI, Controls and Special Procedures of the New York State Accounting System User Procedures Manual. II. CASH RECEIPTS A. DEFINITIONS Bankroll Report - Cash register tape that summarizes activity for a period of operation Cash - Currency, coin, checks, money orders and credit card receipts. Cash Receipts - Cash (as defined above) received from all sources, such as participant fees, ticket sales, damage charges, deposits, parking fines, etc. Change Fund - A departmental fund authorized by Financial Services to facilitate the cash collection process by making currency and coin available for giving change. Check Log A spreadsheet tracking the Date, Payer, Amount, Check Number, Department and Account to be deposited into. Restrictive Endorsement - The action that limits the negotiability of a check or money order to the deposit of a UB bank account. B. SCOPE These procedures apply to cash receipts collected at UB and deposited to the credit of state accounts: State Operating Budget, Income Fund Reimbursable (IFR including DIFR and SUTRA), and Endowment Income. University Business Services

59 C. INTERNAL CONTROL PROCEDURES The significant number of university departments collecting cash necessitates the decentralization of the cash receipt function. These procedures have been developed to provide an adequate internal control system. The importance of adhering to these procedures cannot be overemphasized. If adequate internal controls are not in place, the personnel handling cash in your department are not being afforded the protection to which they are entitled should allegations of impropriety ever be made. Using this system, departments provide an accurate accounting of cash received. Important aspects of this system include: 1) separation of duties; 2) adequate record keeping; 3) restrictive endorsement of checks; 4) timely deposits; 5) proper handling of refunds; and 6) reconciliation. A description of each follows: 1. Separation of Duties: Proper internal control requires that different individuals be responsible for handling each aspect of the cash receipt procedure. For example, the person who receives cash does not prepare the deposit, and the person who prepares the deposit does not handle the reconciliation. Where a department does not have a sufficient staff to separate responsibilities for cash handling, record keeping and reconciliation in the most desired manner, closer day-to-day supervision by departmental managers is necessary. The Chairman or other designated staff person such as someone in the Dean s Office may do a test of reasonableness. An illustration of a test of reasonableness may be if someone determines if the number of applications received supports the deposits made for graduate application fees. 2. Record of Receipt: Cash must be recorded as soon as it is collected. Cash stolen without a record of receipt is more difficult to trace than cash that is recorded. The person recording the receipt of cash has no further involvement in cash handling, recording, depositing, or reconciliation. The recording of cash receipts requires the use of pre-numbered cash receipt forms (receipt forms), pre-numbered event tickets, cash register tapes or check logs. For most departments, these three methods of recording cash are satisfactory. In some situations, alternative methods have been authorized with prior written approval of Financial Services. This approval will be sent to the department and a copy forwarded on to Student Processing Services ( SPS ), Bursar Area for their records. For more information or questions on your specific needs, call Lance Mahalic or Shawn Diehl and , respectively. University Business Services

60 a) Receipt Forms All cash (as defined in section II.A.) should be recorded on receipt forms. These forms serve a dual purpose. They provide a receipt to the individual from whom cash is received and they provide a record of the receipt of the cash at the unit. These forms are printed in triplicate and are available in booklets of 100 from Financial Services. A complete listing of whom to contact for forms and information is included in section IV. The original (white) is given to the person from whom cash is received, the first copy is attached to the deposit, and the second copy remains in the book as a permanent, chronological record of the transaction. The first and second copies have the following pre-printed statement: COPY - THIS IS NOT A VALID RECEIPT. Provision is made on the receipt forms for indicating the purpose of the payment and whether it was cash, money order, or check. If it is necessary to void or cancel a receipt form, clearly mark all copies VOID to preclude reuse. The original (white) is included with the deposit. The first and second copies remain with the receipt book. A sample of a completed receipt form is included as Exhibit A. For the system to be effective, it is most important to account for each receipt form. Completed receipt books should be retained by the department for seven years, after which they may be discarded. The department must provide Financial Services with a listing of completed receipt books, when new receipt books are requested. Departmental internal records must be maintained and receipt books stored so they are accessible for inspection upon audit. b) Event Tickets Event tickets provide an excellent method to control cash receipts generated by concerts, lectures, sporting events, etc. Event tickets are press numbered when printed and the numbers should be compared to the detail on the printer s invoice when the event tickets are received. When graduated prices are offered to students, faculty/staff, and the general public, separate series of event tickets are used to account for the price differentials. Unsold event tickets require reasonable safekeeping in a vault or fireproof cabinet when not out for sale activity. Access to this area should be limited. When presented at the event, the event ticket is torn in half. One half is given to the customer and one half retained. Ticket takers at events must not be otherwise involved in the sale process. If event tickets are distributed to multiple sellers or locations, a record of the numbers assigned is maintained and reconciled as unsold event tickets and cash receipts are returned. Also, a record of any complimentary event tickets issued should be maintained. This record should identify the event, the date of the event, the ticket number issued and the name of the recipient. In addition, each recipient of a complimentary ticket should be University Business Services

61 required to sign for the ticket. Complimentary tickets issued to sellers/locations should be clearly marked COMPLIMENTARY - NOT FOR RESALE. Sellers/locations will be given an allocation of tickets to sell, along with an inventory sheet describing the given allocation. The sellers will also be given a tally sheet to assist them in tracking any tickets sold at a discount (if applicable). At the close of sales, each seller will make a final count of the tickets remaining and subtract that from the original allocation of tickets to determine the number of tickets sold. The number sold will be multiplied by the sales price. That figure will then be adjusted for any discounted sales (per collected discount coupons and the tally sheet) if applicable. The resulting figure will be the total receipts for each seller. This figure should be equal to cash received (final cash minus starting bankroll) from the seller/location. The cash and the ticket sales reconciliation should be sent to SPS, Bursar Area with the TF. If cash registers are utilized, a closing bankroll report should also be submitted. See next section - Cash Register - for details. After the event, a reconciliation of all event tickets is prepared comparing the cash receipts from those sold, the unsold (including returns and voids), and the complimentary with the record of event tickets printed. This reconciliation and unused event tickets are to be kept on file in the department for three years. See Exhibits B1 B4 for various examples of ticket reconciliations. c) Cash Register Prior to the start of sales activity, cashiers receive bank drawers. Each cashier must count the drawer and initial a cash out sheet, acknowledging receipt. Throughout the hours of operation, if excessive cash is taken in, the manager will have the cashiers separate cash taken in during the event from the original bank. Amounts in excess of the original bank will be recorded on the cash out sheet as picked up. Both the cashier and the manager are required to initial the pickup on the cash out sheet. The manager should bundle cash with the bills facing the same direction in proper denomination sequence. Also, the manager must complete a cash slip indicating the pickups. After the event, the cashier will prepare a final deposit which will be forwarded to the manager. The manager is required to complete a cash out form daily. The cash out form should include the following: Beginning cash: equal to the beginning bank placed in each register; include denominations. Cash reading: cash figure per the register tape. Total cash: equal to the cash reading plus the beginning cash. Cash Drawer: total cash (cash plus closing pickup). Pickups: the amounts of money picked up from the cashiers during the event that are secured. Each time the manager makes a pickup; the cashier must initial the pickup dollar amount indicated on the cash out sheet. University Business Services

62 Pickup (closing): amount of cash left in the drawer at the end of the event. Over (short): the difference between total cash and total cash register. Customer count: the total number of customers serviced by each terminal per the register tape. Void: the total number of voids by terminal from the register tape. The manager should also check to make sure that the beginning transaction number is consecutive with the previous day s ending transaction number. The cash, register tape and cash out form should be forwarded to SPS, Bursar Area for deposit. See Exhibit C for an example of a cash out form. This example has been included to serve as a guideline. 3. Restrictive Endorsement Checks and money orders are endorsed by the department as soon as they are received. The preferred statement to use for endorsement is For Deposit Only To The Account Of The University At Buffalo which must be written or stamped on the back of each check. However, it is acceptable to endorse the check with the statement For Deposit Only. The department name and account number must be part of the restrictive endorsement if it does not appear on the face of the check. The endorsement is placed on the right side of the back of the check in a space not exceeding three inches from the right edge of the check. The left side of the back of the check (reverse of the check number and signature) is reserved for SPS, Bursar Area for processing. See Exhibit D. 4. Depositing Cash Receipts a) Cash Receipts Prompt deposit of cash receipts is essential for security and internal control. Cash receipts are transmitted for deposit to one of the two SPS, Bursar Area locations (see section IV). Ideally, this is done at the close of each day. If daily transmittal is not feasible because of location or if collections are minimal and not in the form of currency or coin, transmittal may be made less frequently, but in no case less frequently than once a week. Secure undeposited cash receipts in a safe or a locked filing cabinet. Cash receipts are never used for change, petty cash, or to make refunds. Cash receipts are transmitted to SPS, Bursar Area for deposit by means of the Cash Receipts Transmittal Form (TF). Blank TFs can be obtained from SPS, Bursar Area. However, for departments making regular deposit of cash receipts, it is recommended that pre-printed, pre-numbered forms be ordered from University Print Services. Each completed deposit sent to SPS, Bursar Area should include the cash receipts, two adding machine tapes (or check log) reconciling the cash with the receipt forms and, the deposit total on the TF. University Business Services

63 Information required on each TF includes: Name and address of the depositing department Name and telephone number of the individual preparing the deposit. Total amount of the deposit with sub-totals for checks (including money orders), charge card receipts, U.S. currency and coin, and Canadian currency and coin. Numbers of the receipt forms related to the deposit (including voided forms). Transmittal number designated by the department which can be any alpha-numeric combination up to six characters; sequentially assigned transmittal numbers will facilitate reconciliation. Account number to be credited or the statement, See Attached when more than one account is involved and a spreadsheet or check log with account breakdown is included. For graduate and professional application fees, identify the subsidiary account number and indicate before the 3184/3185 designation on the account number line (eg ). The first copy of the receipt forms and the original voided receipt forms must accompany the transmittal. Send all copies of the TF to SPS, Bursar Area, except for the departmental copy, which is retained by the department for its records. The preferred method of transporting cash receipts to SPS, Bursar Area is personal delivery to 122F Porter. Deposits solely representing checks, money orders or credit cards may be sent to SPS, Bursar Area, 232 Capen, North Campus. Under no circumstances are currency or coin to be sent through campus or US mail. If cash receipts are personally delivered to SPS, Bursar Area, a representative will accept deposit for further processing. The amount will be verified and a receipted copy of the TF will be mailed to the department. If cash receipts, other than currency or coin are sent to SPS, Bursar Area via campus mail, SPS, Bursar Area will return a receipted copy of the TF to the department once the amount has been verified and deposited. Refer to Exhibit E for an example of a completed TF. Also refer to Exhibit F for common problems associated with cash receipt transactions. b) Credit Cards Accounting procedures for credit card transactions mirror the procedures for other forms of cash receipts (refer to previous section) with a few additions. At the close of each day, departments accepting credit cards are required to batch out credit card terminals. As terminals are batched out, information is transmitted to the bank and amounts are recorded as deposits in the University s bank account. Note: balances transmitted to the bank must equal the receipts attached to the TF forwarded to SPS, Bursar Area. Receipts forms should be forwarded to SPS, Bursar Area as terminals are batched out because the bank reconciliation process becomes complex if the dates do not match. Departments are also University Business Services

64 5. Refunds required to maintain a log detailing the good batch (GB) number, dates, amounts, and types of transactions (MC, Visa, Discover). In certain instances, it is appropriate to make refunds. Refunds are never to be made from cash receipts. Refunds are made by check through Financial Services and are obtained by writing to: Carrie Hutchins, Financial Services, 418 Crofts Hall, North Campus. Refund requests should include the account number credited on the original deposit, the number and date of the TF, and the reason for the refund. The refund check will be returned to the requesting department. A refund request should not be made within the first ten business days past original deposit date to allow for proper bank processing. A sample refund request memo appears in Exhibit G. 6. Reconciliation The IFR Report of Receipts is available at UBBusiness ( The deposits listed on these reports should be reconciled promptly with the department s transmittals by someone not involved in any other aspect of the cash handling procedure. The separation of this responsibility from the other cash handling and reporting activities is most important. Any questions regarding items on this report should be directed to Betsy Harmon at See Exhibit H for a sample report of receipts. D. CHANGE FUND When a department collects cash frequently, a small change fund may be requested from Financial Services. Change funds are never to be created from cash receipts. The change fund will be issued to a departmental custodian who will be personally responsible for maintaining the fund. Inquiries regarding the establishment of a change fund should be directed to Lance Mahalic at E. NON-STUDENT REVENUE COLLECTIONS Background: IFR accounts rely upon revenues generated to fund their operations. Its essential projects collect all funds due to prevent a revenue shortfall. Payment for goods received or services rendered may be achieved through the following: Cash Collections -for certain programs, it is practical to collect funds at the time of service rather than issue an invoice. In these instances departments must either comply with the University s Cash Receipts Policy, or obtain a waiver from Financial Services to implement a more efficient, yet effective procedure. University Business Services

65 Interdepartmental Invoice (IDI) the expenditure transfer process is the appropriate means to charge another State, IFR, Research or UBF Account at the University. For further information on expenditure transfers refer to Administrator, Payments, IDI s on our website at Billing/Collecting in some instances it may be more appropriate to bill customers for services rendered / goods provided. The following billing and collection procedures provide assurance that bills are controlled and projects are credited with the proper amount of collections. If departments believe it is necessary to use other means for billing or payment, Financial Services should be consulted during procedure development for approval. Non-Student Accounts Receivable Collection Procedures: a. Contracting to Provide Goods or Services Arrangements made to provide more than $2,500 worth of goods or services to another individual or agency should be put in writing and approved by the Department Head. Agreements should identify the performance expectations of the parties and specify when and how the account is to be paid, billing address and contact. Until this agreement is signed by both the Department Head, and the customer, no goods or services should be provided by the University. Refer to Exhibit L for a pro forma agreement form. For arrangements less than $2,500 discussions held with the customer should include what is documented in the pro forma agreement, however no formal written agreement is deemed necessary. b. Billing and Collection Controls The following billing and collection controls provide for a minimal level of internal control that should be in place over University revenue-generating operations. Please keep mind no cash collection activity should be implemented without the review and approval by Financial Services. Also, additional controls may be required by Financial Services at any time. Billings: services: The following process should be followed when billing a client for goods and When a person or organization receives goods or services, and is going to pay for them at a future date, it is important that a receivable be recorded. Receivables may be tracked through a bookkeeping system, excel spreadsheet or manually. Information tracked should include: Invoice Date Date invoice was sent to customer (this should be within 3 business days of delivering goods/rendering services) Invoice Number A sequential numbered invoicing process should be utilized. We suggest a combination of the IFR account number/fiscal year, i.e In this example 03 represents the fiscal year ending 6/30/03, the is the IFR account to University Business Services

66 be deposited, the 1 means this is the first invoice to be generated for this account number for this fiscal year. Customer Name Short description of transaction Amount Due In addition to recording the receivable, a copy of the open invoice should be maintained. Experience has shown timely follow-up on outstanding invoices greatly enhances the collection process. Departments are primarily responsible for collecting the amounts billed and for the necessary follow-up on outstanding invoices. When an invoice is not paid within a reasonable amount of time (30 days) the following actions should be taken: Issue letter requesting immediate payment and retain copies of these letters. Refer to Exhibit M for example. No further service should be given to a client who has a past due invoice When payment is received guidelines set forth in the State Cash Receipts manual apply. Refer to for guidelines. In the event an Accounts Receivable is unable to be collected, contact Financial Services for further guidance. III. PETTY CASH REIMBURSEMENT A. DEFINITIONS Petty Cash Purchase - The purchase of goods or services (services must be performed by an organization as opposed to an individual) by University employees from their own personal funds on behalf of their department. The cost per receipt must be $250 or less. Petty Cash Reimbursement - The reimbursement to a University employee who has made a petty cash purchase which is considered an appropriate expenditure of state funds. The reimbursement is made by check drawn by Financial Services from a local University bank account. Cash Advance Fund - A fund that Financial Services establishes for a department, which permits immediate reimbursement of petty cash purchases to departmental employees. Online Banking - A banking service that processes all transactions electronically and produces no paper trails. University Business Services

67 B. SCOPE These procedures apply to petty cash purchases made by University employees and reimbursed from state funds. Travel expenses, although reimbursable, are to be processed in accordance with state and university travel procedures, rather than the petty cash reimbursement procedures. See the Travel Policy manual at Click on Employee, Reimbursement, Travel and State. C. REIMBURSEMENT PROCEDURES 1. Signature Form A department authorizes its employees to be reimbursed from its state accounts for petty cash purchases by filing a Petty Cash Fund Signature Form with Financial Services. With this form, the department head notifies Financial Services which accounts are available for petty cash expenditures and which departmental personnel are authorized to sign the Petty Cash Reimbursement Request (PC voucher). Any employee can be reimbursed, however, only specific employees are authorized to sign the PC voucher. See Exhibit I for a sample of a completed form. 2. PC Vouchers Petty cash reimbursements are obtained by sending a completed PC voucher to Financial Services, 418 Crofts Hall, North Campus. Information required with each PC voucher includes: name, address, and phone number of the requesting department with the current date accounts to be charged name and signature of the person to whom the petty cash reimbursement should be made payable the total amount to be reimbursed an itemized list of the petty cash purchases Each petty cash purchase must be clearly identified or explained on the receipt or the PC voucher. Petty cash reimbursement is limited to $250 per receipt, however a PC voucher may include more than one receipt and, therefore, total more than $250. authorized signature, if other than person being reimbursed. Each completed PC voucher must include original paid receipts, invoices, canceled checks, or an itemized credit card statement. Departments should retain photocopies for their records. See Exhibit J for a sample of a completed PC voucher. Submit PC vouchers promptly, particularly at the end of the University s fiscal year (June 30). A schedule of fiscal year-end cut off dates is issued annually by the Office of the Controller. Reimbursements are charged to the fiscal year in which the purchase was made. University Business Services

68 Please prepare separate PC vouchers for purchases made in different fiscal years. Reimbursement checks are sent via campus mail to the University department address that appears on the PC voucher. 3. Internet Purchases Payment with credit card, debit card or online check: Original credit card statement or bank statement must be submitted with request. Payment with online banking or the transfer of funds on the Internet: The purchase request or the confirmation receipt and a detailed transaction report of your bank statement (this may be printed from the internet) with the purchases highlighted. Please note it may take a couple of days for the transfer of funds to be updated by your bank. These items must be submitted with your request. 4. Sales Tax Exemption The University at Buffalo is a state agency, and therefore, is exempt from NYS sales tax for purchases made from state accounts. If UB is not registered as tax exempt with a vendor, a Tax Exemption Certificate (AC 946) should be presented to the vendor at the time of the petty cash purchase. Some vendors may not be familiar with this certificate which is for use by employees of NYS agencies and its political subdivisions only. It differs from form ST used by other tax exempt, non-state organizations which requires both NYS vendor ID and exempt organization numbers. If the certificate is not used when purchasing items, individuals may complete form AU-11, Application for Credit or Refund, with the NYS Department of Taxation and Finance to receive a refund of sales tax paid. For tax exemption certificates (AC946) and AU-11 forms, please visit our website at click on Employee, Reimbursement, Petty Cash, State and then Forms. For additional questions please call Shawn Diehl at See Exhibit K for a completed AC Cash Advance Fund For departments that make frequent petty cash purchases, a small cash advance fund may be requested from Financial Services. The cash advance fund will be issued to a departmental custodian who is personally responsible for securing the fund, making petty cash reimbursements from the fund, and replenishing the fund following these procedures. For more information, call Lance Mahalic at Procurement Cards University Business Services

69 In an effort to streamline the processing of small dollar purchases, UB implemented the Procurement Card program which enables authorized cardholders to make purchases directly from a vendor without a purchase order. The Procurement Card holder s departmental account is billed directly for charges incurred. The cardholder receives a monthly statement for reconciliation and certification. For more information on the Procurement Card, call Angie Rzeszut in Procurement Services at University Business Services

70 Receipt Books* Petty Cash Signature Form* PC vouchers and subvouchers* Application for Credit or Refund (AU-11) Cash Change Fund Cash Advance Fund Tax Exemption Certificate (AC 946)* IV. SOURCES AND CONTACTS FOR FORMS AND INFORMATION REFERENCED IN THESE PROCEDURES Need Contact and Department Phone Address Financial Services Nancy Kreppenneck Patti O Farrell pdo@buffalo.edu Cash Receipts Transmittal (if not already pre-printed by University Print Services) IFR Report of Receipts Financial Services Shawn Diehl Carrie Hutchins smdiehl@buffalo.edu chutchin@buffalo.edu Financial Services Lance Mahalic lmahalic@buffalo.edu Financial Services Shawn Diehl smdiehl@buffalo.edu Carrie Hutchins chutchin@buffalo.edu Purchasing Services Student Response Center Bursar Area 122 F Porter Financial Services Betsy Harmon eaharmon@buffalo.edu To access the forms referenced by *, please visit our website at Click on Quick Links at the bottom right hand side, and then scroll to find the appropriate form. University Business Services

71 V. EXHIBITS EXHIBIT A Receipt Forms University Business Services

72 EXHIBIT B1 Ticket Representative Reconciliation University Business Services 15

73 University Business Services EXHIBIT B2 Ticket Analysis

74 EXHIBIT B3 Ticket Representative Reconciliation University Business Services

75 University Business Services EXHIBIT B4 Ticket Representative Worksheet

76 EXHIBIT C Concessions Cash Out Form EXHIBIT D Endorsement Memo Financial Services, 1/2011 Page 19

77 Financial Services, 1/2011 Page 20 EXHIBIT E Transmittal Form

78 Above number does not represent an actual account Financial Services, 1/2011 Page 21

79 EXH IBIT F - Memorandum EXHIBIT G Sample Refund Request Memo Financial Services, 1/2011 Page 22

80 Sample Refund Request Memo June 17, 2003 Revenue Officer Financial Services 418 Crofts Hall North Campus Subject: Refund Request Please issue a refund check in the amount of $28.50 to Sharon Suhr, 330 Main Street, Arcade, NY Sharon was charged $28.50 for a lost book which has since been recovered. Therefore, a refund is due. The original payment by Sharon Suhr was included in the deposit to for April 2, 2003, transmittal no. 4321, receipt A Thank you. Above number does not represent an actual account. EXHIBIT H Report of Receipts University at Buffalo IFR Report of Receipts Financial Services, 1/2011 Page 23

81 Fiscal Year 20XX / 20XX Account Number: 900XXX Date Reference Number Description Source Receipts 07/11/xx 6800 Cash Receipt Department /15/xx LTR Revenue Transfer , /01/xx LTR Revenue Transfer -5, /13/xx LTR Correct 11/01/xx , /09/xx 6033 Cash Receipt Department /25/xx LTR Revenue Transfer , /03/xx 6535 Cash Receipt - Department /02/xx 6949 Cash Receipt - Department Sum of Receipts 6, Financial Services, 1/2011 Page 24

82 EXHIBIT I Sample Petty Cash Fund Signature Form UNIVERSITY AT BUFFALO STATE PETTY CASH SIGNATURE FORM DEPARTMENT: Libraries ADDRESS: 434 Capen PHONE: EXT 32 DEPT HEAD: Name: Pamela Newbook Signature: (sign here) Name: Joe Smith Signature: (sign here) Name: Mike Jones Signature: (sign here) Name: Signature: Name: Signature: PRIMARY ACCOUNT NUMBER: Professional Preservation Study Leaves PLEASE RETURN ORIGINAL FORM WITH SIGNATURE AND ACCOUNT NUMBER/S TO ADDRESS BELOW ACCOUNTING AND BUDGETING SERVICES 418 CROFTS HALL SHAWN M. DIEHL Above numbers do not reflect actual accounts Financial Services, 1/2011 Page 25

83 EXHIBIT J Petty Cash Reimbursement Request (State Funds) Above number does not represent an actual account. Financial Services, 1/2011 Page 26

84 Financial Services, 1/2011 Page 27 EXHIBIT K Tax Exempt Certificate

85 EXHIBIT L-Pro Forma Revenue Contract Pro Forma Revenue Contract Memorandum of Understanding Agreement Payments from the (individual/organization) for the following project will be submitted at the inception of the project, which will be determined in the following manner: (Describe project, responsibilities of each party, timetables, deliverables, etc.) The University at Buffalo, (department name) will issue an invoice to (individual / organization) for the full amount of the agreed price, in this case $. (individual /organization) will pay (department name) at the University at Buffalo in the following manner (identify payments procedures). Project Director Date Department Head Date Recipient: Date Financial Services, 1/2011 Page 28

86 EXHIBIT M - Past Due Notice NOTICE Our records indicate Invoice No, which was issued to you on (Date) has been outstanding for more than 30 days. Please remit your payment within 10 days. Your cooperation in resolving this matter is appreciated. If you should have any questions concerning this matter, feel free to contact my office at (716) xxx-xxxx. Please refer to the above invoice number when inquiring. Sincerely, Financial Services, 1/2011 Page 29

87 X. Principles, Policy, and Procedures For Setting Fees, Fines, Deposits, and Service Charges Introduction This document provides a description of the three categories of fees, general principles applicable to campus fees, steps to establish or modify existing fees, and timetable for fee approvals. This document covers all fees, fines, deposits, and service charges deposited in an Income Fund Reimbursable (IFR) account, or an agency account maintained by the University at Buffalo Foundation (UBF), Research Foundation (RF), or Faculty Student Association (FSA). This campus policy is based on SUNY System Administration policy. The complete SUNY Administrative Policy regarding fees, rentals, and other charges can be found at Fee Categories 1. SUNY Board of Trustees Authorized Fees and Charges The SUNY Board of Trustees approves university-wide fees that are required to be paid by students as a condition of attendance. The Board's fee authorization may take the form of imposing a fee, with or without a ceiling level, requiring either a university-wide charge to be established or individual campus rates to be approved by the Chancellor or designee. These fees are normally proposed during the University's budget development process and are implemented as required by law or the Board s policy. These include broad-based fees charged to all enrolled students, such as Intercollegiate Athletics Fee, Health Services Fee, Technology Fee, and College Fee. Other Board of Trustee authorized fees include the student activities fee; health insurance fee for international exchange, research, and study programs; and admission deposits. 2. Fees Authorized by the SUNY Chancellor or Designee The Chancellor (or designee) is authorized to establish a schedule of reasonable fines, fees, deposits, and charges in accordance with guidelines to be issued by the Trustees. These fees include: Academic Course-Related Fees are appropriately charged for academic offerings that entail extraordinary costs, result in a tangible end product for the student (e.g. sculpture, ceramics, and photography), or where a special service is provided (e.g. music instrument rental). User Fees, Charges, and Fines for Violation of Institutional Regulations finance discrete activities and services available to those who pay the fee. Fees in this category may include but are not limited to: late registration and late payment fee, Financial Services, 1/2011 Page 30

88 library fees and fines, drop/add fee, returned check charge, placement fees, residence hall common area damage repair fees, and the administratively cancelled registration fee. 3. Campus Authorized Fees The campus is authorized to establish certain charges and fees. These fees and charges may be funded through an IFR account or a non-state agency (e.g., Faculty Student Association) where the service for which the charge is made is provided by such agency. Examples of campus-authorized fees include residence hall room rents, meal plan charges, non-credit-bearing instructional program fees, equipment deposits and breakage charges, event entrance and attendance fees, and charges for services and facility usage. Campus Process for Establishing or Modifying Fees The campus process for establishing or modifying fees, including required approvals and deadlines, varies depending on the type of fee. In 1998, the University established a Comprehensive Fee to consolidate several campus-required student fees. Because of the widespread impact on students, a separate approval process is required for the Comprehensive Fee, residence hall and meal plan charges. The fee approval process for the various types of campus fees is detailed in the following sections of this policy: Comprehensive Fee, Residence Hall and Meal Plan Charges Campus Fees Requiring Approval by SUNY System Administration, Other than the Comprehensive Fee, Residence Hall and Meal Plan Charges Campus Fees which do not Require Approval by SUNY System Administration Attachment A Attachment B Attachment C Questions regarding this policy document should be directed to Financial Services at Elizabeth D. Capaldi Kevin R. Seitz Dennis R. Black Provost Vice President for University Services Vice President for Student Affairs March 21, 2001 Revised April 10, 2006 Financial Services, 1/2011 Page 31