Recharge Standard Operating Procedures

 

SUBJECT:

Processing Internal Transactions for Accounts Under $100k

SOURCE:

Cost Accounting, Financial Management Services

DATE ISSUED:

May 2016

DATE OF LAST REVISION:

 

N/A

RSOP NO:

8.0 

RATIONALE:

To provide guidance to units needing to allocate costs to other Indiana University Accounts in lieu of Internal Billings, Service Billings, and ID Billings.

RSOP:

Internal activities that have less than $100,000 in anticipated internal revenue in a fiscal year will not be permitted to use internal billings, service billings or ID billings unless an exception is granted by University Cost Accounting. (see RSOP 2.0 – Reporting Requirements for Recharge/Service Centers for more information.)

 

In order for these smaller activities to continue providing goods/services to other Indiana University Accounts, they must move the allowable cost (see RSOP #6.0 Allowable/Unallowable Expenses for Recharge/Service Centers) to the other IU account.  This can be accomplished by using various KFS documents:

 

  • Transfer (TF, YETF) – this document moves cash from one account to another account.  Transfers can never be used to move costs to a C&G account.  For non-C&G accounts, transfers are the preferred method when moving multiple costs and/or when an auxiliary organization wants to reflect income on their financial statement.  Object codes 9916 (“To”) will reflect revenue and object code 9966 (“From”) will reflect expense on the auxiliary income statement.

 

  • Salary Transfer (ST, YEST) – this document moves compensation and benefits from one account to another account.  This document identifies a specific employee and will move the salary and benefits associated with the amount of effort to be charged to the other IU account.  The ST documents must be processed prior to the closing of the effort period (see the Office of Research Administration’s Effort Certification calendar for the timeline).

 

  • Distribution of Income/Expense (DI, YEDI) – this document moves expense from one account to another account.  This cannot be used for compensation.

 

  • General Error Correction (GEC, YEGE) – this document moves a specific transaction from one account to another account. The document number of the expense being moved must be entered on the GEC.  The GEC should be done within 90 days of the original transaction. 

 

Moving Costs to Contract and Grant Accounts

 

When moving costs to a Contract and Grant account (CG fund group), the actual object code of the original cost must be used to move cost.  A GEC is the preferred document for non-compensation expenses as it captures the original document number for audit purposes.  For moving compensation and benefits to a C&G account, a salary transfer document must be used.    

 

Regardless of the document used, only allowable cost may be moved to a C&G account.  In case of an audit, the cost moved must be substantiated by the originating account.

DEFINITIONS:

 

CROSS

REFERENCE:

 

OMB Uniform Guidance "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards"

RSOP #2.0 Reporting Requirements for Recharge/Service Centers

RSOP #6.0 Allowable/Unallowable Expenses for Recharge/Service Centers

ASOP #21.0 Recording Transactions between University Accounts

Providing Goods and Services to Other IU Accounts Flow Chart

RESPONSIBLE

ORGANIZATION:

 

Organizations that bill other Indiana University departments for goods or services