Accounting

Finance Capital Projects Policies and Procedures Manual

Title: Finance Capital Projects Policies and Procedures Manual
Policy Owner: Finance
Applies to: Staff and Faculty on Storrs and Regional Campuses and UConn Health
Campus Applicability: Storrs, Regionals, and UConn Health
Effective Date: June 13, 2023
For More Information, Contact Budget, Planning and Institutional Research – Project Accounting/Accounting Office
Contact Information: (860)486-6288/BPIR@uconn.edu
(860)486-1366/AccountingOffice@uconn.edu
Official Website: https://bpir.uconn.edu/

The Finance Capital Projects Policies and Procedures Manual are available for download as a PDF.

 

POLICY HISTORY

Revisions:  June 13, 2023 (Approved by BGE, President, and Senior Policy Council); September 11, 2019; February 2015

 

Consumable Supplies Inventory Procedure

Title: Consumable Supplies Inventory Procedure
Procedure Owner: Office of the Controller, Accounting Office
Applies to: All University Departments
Campus Applicability: Storrs and Regional Campuses
Effective Date: September 1, 2016
For More Information, Contact Associate Controller and Director of Accounting
Contact Information: (860) 486-3780
Official Website: https://accountingoffice.uconn.edu/

BACKGROUND AND REASON FOR PROCEDURE

An inventory of consumable supplies is reported annually to the Office of the State Comptroller (OSC) on the Annual Inventory Report of all Real and Personal Property (CO-59) form. Consumable supplies must be safeguarded and managed in order to prevent excessive spending and loss.

DEFINITIONS

Consumable supplies are defined as stock items used and consumed in the daily operations of a UConn department, such as food, cleaning supplies, lab animals, perishables, table or bed linens, repair parts, small tools, small appliances, and articles of a similar nature. Items should be new and unopened, and which will be used up within a year. Consumable supplies does not include capital equipment or controllable property equipment.

PROCEDURE

  1.  For all departments with a consumable supplies inventory of $5,000 or more, a separate perpetual (continuous) inventory should be maintained.
  2. A physical inventory must be performed annually and reconciled to the inventory records by June 30th.
  3. A listing of consumable supplies must be reported to the Accounting Office within the Office of the Controller by July 15th. The inventory listing should include an item description, cost, unit of measure, quantity on hand, and a total cost for each item, by location/building.
  4. The inventory listing and signed Inventory Certificate Form may be sent by email or through the University mail service to the Accounting Office at U-1074.

FORMS/TEMPLATES

An Inventory Worksheet (Excel template) may be used to report inventory. Alternatively, departments may submit a report generated from an inventory system maintained by the department.

The Inventory Certificate Form is available on the Inventory Control website.

Controllable Property

Title: Controllable Property
Policy Owner: Accounting Office; Inventory Control
Applies to: Faculty, Staff and Designated Affiliates
Campus Applicability: Storrs and Regional Campuses
Effective Date: March 29, 2023
For More Information, Contact Associate Controller & Director of Accounting
Contact Information: (860) 486-1366
Official Website: http://accountingoffice.uconn.edu

PURPOSE

To ensure compliance with the State of Connecticut Property Control manual. State agencies must identify, tag, maintain a written listing, and regularly inventory Controllable Property.

APPLIES TO

This policy applies to Faculty, staff and designated affiliates of the University of Connecticut.

DEFINITIONS

Controllable Property: Assets with a unit value under $5,000 that have an expected useful life of one or more years and are easily portable and/or not physically secured, contain new technology or sensitive data, are theft-prone, and/or are adaptable for personal use.  Such items may include, but are not limited to:

  • All computers and other equipment that may contain sensitive data (e.g., desktops, laptops, tablets; Netbooks, cellular phones, smartwatches, etc.)
  • Other items with a value of $500 to $4,999.99 such as televisions, projectors, and monitors, scanners, printers, and cameras.

Custodian: The custodian of a Controllable Property asset is the employee who is in possession of the equipment on a day-to-day basis and/or whose NetID is associated with the asset record.

POLICY STATEMENT

Custodians must confirm possession of their assigned Controllable Property annually in compliance with the Controllable Property Asset Management Procedures. Disposal of Controllable Property must be performed in compliance with University Policy. [1]

[1] See the Policy on Surplus Property

ENFORCEMENT

Violations of this policy may result in appropriate disciplinary measures in accordance with University Laws and By-Laws, General Rules of Conduct for All University Employees, applicable collective bargaining agreements, and the University of Connecticut Student Conduct Code.

PROCEDURES/FORMS

Contact InventoryControl@uconn.edu for assistance in determining whether an item is considered Controllable Property.

Store Controllable Property in an environmentally suitable, secure location. Do not leave Controllable Property unsecured.

Custodians must notify University Police immediately if Controllable Property is stolen. In the event of any loss or damage, Custodians must complete the Accountability Form (C1).

For more information, refer to the Inventory Control website:  https://accountingoffice.uconn.edu/inventory-control/

POLICY HISTORY

Policy created:  August 19, 2014

Revisions:  March 13, 2023 (Approved by Senior Policy Council); Review and editorial revisions August 27, 2021

Service Center Policy

Title: Service Center Policy
Policy Owner: Accounting Office
Applies to: Faculty, Staff and Designated Affiliates
Campus Applicability: UConn Storrs and Regionals
Effective Date: December 26, 2014
For More Information, Contact Associate Controller & Director of Accounting
Contact Information: (860) 486-1366
Official Website: https://accountingoffice.uconn.edu/

PURPOSE

To ensure that the University is in compliance with the cost principles and accounting standards set forth by the federal government.

APPLIES TO

This policy applies to faculty, staff and designated affiliates of the University of Connecticut, Storrs and Regional Campuses.

DEFINITIONS

Service Center: a unit which charges a rate to recover the full allowable cost of goods or services provided.  This differs from a unit which charges another area for the cost of the goods or services only, without consideration of other recoverable costs such as overhead costs.  A unit of this type is defined as a “Recharge Center”.

OMB Uniform Guidance: publication of the Office of Management and Budget titled “Cost Principles and Audit Requirements for Federal Awards.”

Governmental Cost Accounting Standards (CAS): standards and rules administered by the federal government for use in achieving uniformity and consistency under federal contracts.

Service Center and Cost Recovery Committee (SCCRC): a University committee responsible for approving the establishment of and rates charged by University Service Centers.

POLICY STATEMENT

The Office of Cost Analysis (OCA), a unit within the University’s Accounting Office, is responsible for ensuring that the establishment of and the rates charged  by  University Service Centers are approved by the SCCRC in accordance with OMB Uniform Guidance.  The Office of Cost Analysis reviews the rates charged by Service Centers, and ensures that the rates are consistent with good business practice and comply with all applicable regulatory and legal requirements, including those outlined in OMB Uniform Guidance and the Governmental Cost Accounting Standards (CAS).  The OCA will ensure that federal grants and contracts are not charged a rate that is higher than what any other internal or external customer may be charged for goods and services.  External rates include indirect costs or overhead, whereas internal rates include only direct costs.  Departments operating Service Centers must have the Center and the rates used by the Center, approved by the SCCRC in advance of commencing operations.

Additional information on Service Centers and cost accounting principles at the University can be found in the Cost Accounting Disclosure Statements (CADS):

Direct and Indirect Costs of Federal Grants and Contracts https://accountingoffice.uconn.edu/wp-content/uploads/sites/143/2018/04/CADS1-Uconn-policies-updated-for-UG.pdf

Cost Sharing https://accountingoffice.uconn.edu/wp-content/uploads/sites/143/2015/08/CADS2.pdf

Financial Management of Service Centers https://accountingoffice.uconn.edu/wp-content/uploads/sites/143/2015/08/University-of-Connecticut.pdf

ENFORCEMENT

Violations of this policy may result in appropriate disciplinary measures in accordance with University Laws and By-Laws, General Rules of Conduct for All University Employees, applicable collective bargaining agreements, and the University of Connecticut Student Conduct Code.

PROCEDURES/FORMS

For more information on OMB Uniform Guidance, please see

https://www.whitehouse.gov/omb/

POLICY HISTORY

Revisions:  Review and editorial revisions August 27, 2021

Personal Services Fringe Rate Calculation for Grants/Research

Title: Personal Services Fringe Rate Calculation for Grants/Research
Policy Owner: Accounting Office
Applies to: Faculty, staff and designated University affiliates
Campus Applicability: Storrs and Regional Campuses
Effective Date: December 26, 2014
For More Information, Contact Associate Controller & Director of Accounting
Contact Information: (860) 486-1366
Official Website: https://accountingoffice.uconn.edu/

PURPOSE

To ensure that the University is in compliance with the cost principles and accounting standards set forth by the federal government.

APPLIES TO

This policy applies to faculty, staff and designated affiliates of the University of Connecticut, Storrs and Regional Campuses.

DEFINITIONS

Personal Services Fringe Rates are calculated to cover the cost of employer-paid contributions for retirement, health care, life insurance and other fringe benefits on grants.  The rates vary because the calculation is based on a percentage of salaries for different categories of personnel.

OMB Uniform Guidance – publication of the Office of Management and Budget titled “Cost Principles and Audit Requirements for Federal Awards.”

Governmental Cost Accounting Standards (CAS) – standards and rules administered by the federal Government for use in achieving uniformity and consistency under federal contracts.

POLICY STATEMENT

The Office of Cost Analysis (OCA), a unit within the University’s Accounting Office, is responsible for calculating personal services fringe rates that are charged to research grants in accordance with OMB Uniform Guidance and the Government Cost Accounting Standards (CAS).  Federal grants may not be charged personal services fringe rates unless approved by the Department of Health and Human Services, our cognizant federal agency. University departments charging personal services to grants must use the approved fringe rates.

ENFORCEMENT

Violations of this policy or associated procedures may result in appropriate disciplinary measures in accordance with University By-Laws, General Rules of Conduct for All University Employees, and applicable collective bargaining agreements.

PROCEDURES/FORMS

The rates are calculated by the OCA based on current financial information and then adjusted annually in the future rates, based on actual costs.

For more information on OMB Uniform Guidance, please see

http://www.whitehouse.gov/omb/

POLICY HISTORY

Revisions:  Review and editorial revisions August 27, 2021

Capital Equipment Tagging and Physical Inventory Policy

Title: Equipment Tagging and Physical Inventory Policy
Policy Owner: Accounting Office
Applies to: Faculty, Staff and Designated Affiliates
Campus Applicability: Storrs and Regional Campuses
Effective Date: September 15, 2021
For More Information, Contact Associate Controller & Director of Accounting
Contact Information: (860) 486-1366
Official Website:  https://accountingoffice.uconn.edu/ 

PURPOSE

Accurate records of the location of University equipment are vital for compliance with the State of Connecticut Property Control Manual and for the proper valuation on the University’s financial statements.  A physical inventory will be completed in accordance with Section 4-36 of the General Statutes of Connecticut.

APPLIES TO

This policy applies to faculty, staff and designated affiliates of the University of Connecticut, Storrs and Regional Campuses.

DEFINITIONS

Capital Equipment: Tangible, non-expendable, personal property having an anticipated life of one year or more with an acquisition cost of $5,000 or greater.

POLICY STATEMENT

All capital equipment must be tagged with a University barcode at the time of receipt and a physical inventory must be completed annually.  Departments are responsible for assisting the Accounting Office in this process including recording moves of equipment, by updating the equipment data in the financial system.

ENFORCEMENT

Violations of this policy or associated procedures may result in appropriate disciplinary measures in accordance with University By-Laws, General Rules of Conduct for All University Employees, and applicable collective bargaining agreements.

PROCEDURES/FORMS

Please see http://accountingoffice.uconn.edu/policy-procedures-general/ for general information on Inventory Control, http://accountingoffice.uconn.edu/equipment-tagging/ for information on tagging equipment and http://accountingoffice.uconn.edu/equipment-count-physical-inventory/ for information on the annual physical inventory of equipment.

POLICY HISTORY

Revisions:  July 1, 2015; Review and editorial revisions effective September 15, 2021

Financial Statements and Financial Reports Policy

Title: Financial Statements and Financial Reports Policy
Policy Owner: Accounting Office
Applies to: Staff
Campus Applicability: Storrs and Regional Campuses
Effective Date: August 19, 2014
For More Information, Contact Associate Controller & Director of Accounting
Contact Information: (860) 486-1366
Official Website: https://accountingoffice.uconn.edu/

PURPOSE

The financial position of the University must be represented in conformity with Generally Accepted Accounting Principles (GAAP) in the United States of America and the Governmental Accounting Standards Board (GASB).

APPLIES TO

This policy applies to all staff of the University of Connecticut, Storrs and Regional Campuses.  Fiscal staff are responsible for adhering to this policy, and the Accounting Office staff ensure adherence.

DEFINITIONS

Fiscal staff:  are generally responsible in their respective areas for financial matters including but not limited to procurement, adhering to budgets, safeguarding assets, and completing transactions in the financial system.

POLICY STATEMENT

The Accounting Office is responsible for ensuring that the financial statements of the University, as well as all financial reports produced by the Accounting Office and provided to internal or external parties of the University, are presented fairly in all material respects, and that they represent the financial position of the University in conformity with accounting principles generally accepted in the United States of America (GAAP) and the Governmental Accounting Standards Board (GASB). Fiscal staff are responsible for applying proper accounting principles which is the basis for accurate financial reporting.

ENFORCEMENT

Violations of this policy may result in appropriate disciplinary measures in accordance with University Laws and By-Laws, General Rules of Conduct for All University Employees, applicable collective bargaining agreements, and the University of Connecticut Student Conduct Code.

POLICY HISTORY

Revisions:  Review and editorial revisions August 27, 2021

Facilities and Administrative (F&A) Rate Calculation Policy

Title: Facilities and Administrative (F&A) Rate Calculation Policy
Policy Owner: Accounting Office
Applies to: Faculty, Staff and Designated Affiliates
Campus Applicability: Storrs and Regional Campuses
Effective Date: December 26, 2014
For More Information, Contact Associate Controller and Director of Accounting
Contact Information: (860) 486-1366
Official Website: https://accountingoffice.uconn.edu/

PURPOSE

To ensure that the University is in compliance with the cost principles and accounting standards set forth by the federal government.

APPLIES TO

This policy applies to faculty, staff and designated affiliates of the University of Connecticut, Storrs and Regional Campuses.

DEFINITIONS

Facilities & Administrative (F & A) Rate: overhead rate charged to federal research grants. It is synonymous with indirect costs, and refers to the actual operating costs for facilities and administrative personnel necessary to support externally funded research.

OMB Uniform Guidance: publication of the Office of Management and Budget titled “Cost Principles and Audit Requirements for Federal Awards.”

Governmental Cost Accounting Standards (CAS): standards and rules administered by the U.S. government for use in achieving uniformity and consistency under federal contracts.

POLICY STATEMENT

The Office of Cost Analysis (OCA), a unit within the Accounting Office, is responsible for calculating the Facilities and Administrative (F&A) rate charged to federal research grants every five years in accordance with OMB Uniform Guidance and the Government Cost Accounting Standards (CAS).  The OCA will ensure that federal grants and contracts are not charged a higher rate for goods and/or services that any other internal or external customer may be charged, and only the approved F&A can be charged to grants.  Departments cannot charge more on a grant than the rates approved by the Department of Health and Human Services, our cognizant federal agency.

ENFORCEMENT

Violations of this policy may result in appropriate disciplinary measures in accordance with University Laws and By-Laws, General Rules of Conduct for All University Employees, applicable collective bargaining agreements, and the University of Connecticut Student Conduct Code.

PROCEDURES/FORMS

For more information on OMB Uniform Guidance, please see:

http://www.whitehouse.gov/omb/

POLICY HISTORY

Revisions:  Review and editorial revisions August 27, 2021

Financial Accounting and Chart of Accounts Policy

Title: Financial Accounting and Chart of Accounts Policy
Policy Owner: Accounting Office
Applies to: University Workforce Members
Campus Applicability: All UConn Campuses, except UConn Health
Approval Date: December 23, 2025
Effective Date: January 1, 2026
For More Information, Contact Associate Controller & Director of Accounting
Contact Information: accountingoffice@uconn.edu
Official Website: https://accountingoffice.uconn.edu/

PURPOSE

To ensure accurate and consistent recording of the University’s financial transactions and proper creation, maintenance, and use of the University’s Chart of Accounts for reliable financial reporting, strong internal controls, and compliance with all applicable accounting and reporting standards.

APPLIES TO

This policy applies to all Workforce Members involved in the initiation, approval, recording, reconciliation, or reporting of financial transactions.

DEFINITIONS

Chart of Accounts: The structured listing of account codes, attributes, and financial classifications used to record and report the University’s financial activity.

Financial Reporting Requirements: Standards and rules that govern how the University prepares and presents its financial information, including U.S. Generally Accepted Accounting Principles (GAAP), standards issued by the Governmental Accounting Standards Board (GASB), and other applicable state, federal, or sponsor requirements.

General Ledger: The central component of the University’s accounting system that records detailed financial transactions and account balances.

Workforce Members: Employees, volunteers, trainees, and other persons whose conduct, in the performance of work for the University, is under the direct control of the University, whether or not they are paid by the University.

Fiscal Staff: Workforce members that are generally responsible in their respective areas for financial matters including but not limited to procurement, adhering to budgets, safeguarding assets, and completing transactions in the financial system.

Departments: Academic, administrative, and operational units of the University, including schools, colleges, divisions, and centers, that initiate, approve, record, or review financial transactions.

Accounting Transactions: Financial activities recorded in the University’s general ledger that affect account balances. These include, but are not limited to, Distribution of Income and Expense (DI), Internal Billing (IB), Transfer of Funds (TF), Salary Transfer (ST), and General Ledger Transfer (GLT).

Supporting Documentation: Records that validate the accuracy and purpose of a transaction, such as invoices, receipts, contracts, email correspondence, or internal approval forms, as specified in University procedures.

POLICY STATEMENT

The University must maintain financial records that fairly and accurately represent its financial position in accordance with applicable Financial Reporting Requirements, including GAAP and GASB standards.

The Accounting Office maintains the University’s Chart of Accounts and ensures proper classification of revenues, expenses, assets, liabilities, and fund balances. Fiscal Staff may submit account requests or attribute changes through the University’s electronic workflow system. The department’s authorized approver or their delegate, as defined by University policy, must review account requests for accuracy, completeness, and compliance with University coding standards prior to final review by the Accounting Office.  The Chart Manager Group within the Accounting Office approves all new accounts and attribute changes to ensure compliance with Financial Reporting Requirements.

Fiscal Staff must record all Accounting Transactions using the appropriate object codes, and include  supporting documentation as outlined in applicable University procedures. The Accounting Office reviews and approves accounting entries, as appropriate, to help ensure the integrity, accuracy, and reliability of the University’s financial reporting. Departments should consult with the Accounting Office concerning issues or discrepancies in their General Ledger accounts that cannot be resolved at the department level.

ENFORCEMENT

Violations of this policy and any related procedures may result in appropriate disciplinary measures in accordance with University By-Laws, General Rules of Conduct for All University Employees, applicable collective bargaining agreements, and the University of Connecticut Student Code.

PROCEDURES/FORMS

The Accounting Office maintains the procedures and reference information supporting this policy, both of which are published in the University’s Knowledge Base. This includes the Chart of Accounts structure, attributes, object code descriptions, and procedures for requesting new accounts, processing Accounting Transactions, and correcting errors.

For additional guidance on account classification, transaction processing, or coding, departments may contact the Accounting Office.

Accounting – Finance, Payroll, and Budget – UConn Knowledge Base
Chart of Accounts – Finance, Payroll, and Budget – UConn Knowledge Base

POLICY HISTORY

Policy created: 08/19/2014

Revisions:

08/27/2021 (Review and editorial revisions)
12/23/2025 (Approved by the University Senior Policy Council and President)

Capitalization Policy

Title: Capitalization Policy
Policy Owner: Accounting Office
Applies to: Staff
Campus Applicability: All campuses except UConn Health
Effective Date: September 15, 2021
For More Information, Contact Associate Controller & Director of Accounting
Contact Information: (860) 486-1366
Official Website: https://accountingoffice.uconn.edu/

PURPOSE

The property and equipment of the University must be presented in conformity with Generally Accepted Accounting Principles (GAAP) in the United States of America and the Governmental Accounting Standards Board (GASB).

APPLIES TO

This policy applies to all staff of the University of Connecticut, Storrs and Regional Campuses.  Fiscal staff are responsible for adhering to this policy, and the Accounting Office staff ensure adherence.

DEFINITIONS

Capitalization: Accumulating the costs of an asset to be expensed over the useful life of the asset.
Depreciation: the systematic allocation of the cost of an asset from the balance sheet to an expense on the income statement over the useful life of the asset.
General Ledger: part of the accounting system which contains the balance sheet and income statement accounts used for recording financial transactions.
Fiscal staff: Generally responsible in their respective areas for financial matters including but not limited to procurement, adhering to budgets, safeguarding assets, and completing transactions in the financial system.

POLICY STATEMENT

All equipment costing $5,000 or more and having a useful life of one year or more will be capitalized and depreciated in the University’s General Ledger and presented on the University’s financial statements in accordance with GAAP and GASB.  All improvements to buildings and nonstructural assets that extend the useful life of the asset will also be capitalized and depreciated in accordance with GAAP and GASB. In addition, new land, buildings and nonstructural assets will be capitalized and depreciated, if applicable, according to accounting standards within GAAP and GASB.  Property and equipment are recorded in the General Ledger at cost at date of acquisition including all costs necessary to place the asset in a useable condition. Gifts are recorded the acquisition value at the date of donation. Renovations that are determined to materially or significantly increase the value or useful life of an asset are capitalized.   Routine repairs and maintenance costs that are incurred in the normal course of business are charged to operating expenses in the year incurred.

ENFORCEMENT

Violations of this policy or associated procedures may result in appropriate disciplinary measures in accordance with University By-Laws, General Rules of Conduct for All University Employees, and applicable collective bargaining agreements.

PROCEDURES/FORMS

Please see http://accountingoffice.uconn.edu/913-2/ for more information regarding capitalization.

POLICY HISTORY

Revisions: August 19, 2014; Review and editorial revisions September 2021