Accounting

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: 09/01/2016
For More Information, Contact Robin Hoagland
Contact Information: (860) 486-3780
Official Website: http://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: Robin Hoagland
Applies to: Faculty, Staff and Designated Affiliates
Campus Applicability: Storrs and Regional Campuses
Effective Date: July 1, 2015
For More Information, Contact Robin Hoagland
Contact Information: (860) 486-3780
Official Website: http://accountingoffice.uconn.edu/913-2/

REASON FOR POLICY

According to the State of Connecticut Property Control Manual issued by the Office of the State Comptroller, Controllable Property assets must be identified and inventoried on a regular basis due to their sensitive, portable, and theft-prone nature.

APPLIES TO

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

DEFINITIONS

Controllable Property assets: Items with a cost under $5,000 that have a life of one or more years, and are sensitive, portable, and theft-prone in nature. These items are prone to theft because they are either not secured, are easily portable, contain new technology, contain sensitive data, and/or they are adaptable for personal use.  Examples of Controllable Property assets include: audiovisual equipment, televisions, projectors, communication equipment, cellular phones, data processing equipment, computers (laptops, iPads, Netbooks), computer peripherals, scanners, 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.

POLICY STATEMENT

It is the responsibility of the individual departments to identify and inventory Controllable Property assets on a regular basis.

It is the Custodian’s responsibility to safeguard Controllable Property assets owned by their departments. For example, equipment should be locked in a secured location when unattended, and should be stored in an environmentally suitable location.

When departments need to dispose of Controllable Property assets, University Surplus policies and procedures must be followed. The Controllable Property asset records should be updated to reflect the disposal.

If Controllable Property assets are lost or stolen, University Police must be notified immediately, and the Accountability Form (C1) must be completed.

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

Departments may utilize the Controllable Property List Excel template, or may utilize the Kuali Financial Systems Capital Asset Management (CAM) module to track Controllable Property.  The Excel template, CAM procedures, and additional information are available on the Inventory Control website: http://accountingoffice.uconn.edu/913-2/. Tags for Controllable Property assets may be ordered from Central Stores.

Service Center Policy

Title: Service Center Policy
Policy Owner: Robin Hoagland
Applies to: Faculty, Staff and Designated Affiliates
Campus Applicability: UConn Storrs and Regionals
Effective Date: December 26, 2014
For More Information, Contact Robin Hoagland
Contact Information: (860) 486-3780
Official Website: http://accountingoffice.uconn.edu/

 

REASON FOR POLICY

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

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

 

Personal Services Fringe Rate Calculation for Grants/Research

Title: Personal Services Fringe Rate Calculation for Grants/Research
Policy Owner: Robin Hoagland
Applies to: Faculty, staff and designated University affiliates
Campus Applicability: Storrs and Regional Campuses
Effective Date: December 26, 2014
For More Information, Contact Robin Hoagland
Contact Information: (860) 486-3780
Official Website: http://accountingoffice.uconn.edu/

 

REASON FOR POLICY

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.

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/grants_docs

Integrity of Accounting Transactions

Title: Integrity of Accounting Transactions
Policy Owner: Robin Hoagland
Applies to: Staff
Campus Applicability:  All Campuses, except UConn Health
Effective Date: August 19, 2014
For More Information, Contact Robin Hoagland
Contact Information: (860) 486-3780
Official Website:

REASON FOR POLICY

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

Basic accounting principles – follow the accounting equation where assets minus liabilities equal net position.  Due to basic double entry accounting, this equation needs to be in balance at all times.  Specific types of object code balance types have normal debit or credit balances.  For instance, expense object codes have a normal debit balance.
Net position – fund balance in governmental organizations.
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 all departments follow basic accounting principles when processing accounting entries, and have proper supporting documentation and approval.  All submissions of accounting entries by departments must be reviewed and approved by the Accounting Office to ensure they follow basic accounting principles.

PROCEDURES/FORMS

Accounting entries are routed to the Accounting Office via electronic workflow for review and approval.  These accounting entries include Distributions of Income and Expense, Transfers of Funds, General Error Corrections, Internal Billings, Adjustment/Accrual Vouchers, Journal Vouchers, Indirect Cost Adjustments, Salary and Benefit Expense Transfers, Labor Ledger Journal Vouchers, General Ledger Correction Processes and accounting entries done via collector feeds.  In addition, accounting entries of $100,000 or higher must be approved by the Director of Accounting.  Certain other approvals may be required such as in the case of UCONN 2000 funds (see Capital Projects Delivery Process).

For more information, please see Learning Tools at http://financesystems.uconn.edu/

Capital Equipment Tagging and Physical Inventory Policy

Title: Equipment Tagging and Physical Inventory Policy
Policy Owner: Robin Hoagland
Applies to: Faculty, Staff and Designated Affiliates
Campus Applicability: Storrs and Regional Campuses
Effective Date: July 1, 2015
For More Information, Contact Robin Hoagland
Contact Information: (860) 486-3780
Official Website:  http://accountingoffice.uconn.edu/ 

REASON FOR POLICY

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 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.

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.

Financial Statements and Financial Reports Policy

Title: Financial Statements and Financial Reports Policy
Policy Owner: Robin Hoagland
Applies to: Staff
Campus Applicability: Storrs and Regional Campuses
Effective Date: August 19, 2014
For More Information, Contact Robin Hoagland
Contact Information: (860) 486-3780
Official Website: http://accountingoffice.uconn.edu/

 

REASON FOR POLICY

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.

Facilities and Administrative (F&A) Rate Calculation Policy

Title: Facilities and Administrative (F&A) Rate Calculation Policy
Policy Owner: Robin Hoagland
Applies to: Faculty, Staff and Designated Affiliates
Campus Applicability: Storrs and Regional Campuses
Effective Date: December 26, 2014
For More Information, Contact Robin Hoagland
Contact Information: (860) 486-3780
Official Website: http://accountingoffice.uconn.edu/

 

REASON FOR POLICY

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/grants_docs

 

Chart of Accounts Maintenance Policy

Title: Chart of Accounts Maintenance Policy
Policy Owner: Robin Hoagland
Applies to: Staff
Campus Applicability: Storrs and Regional Campuses
Effective Date: August 19, 2014
For More Information, Contact Robin Hoagland
Contact Information: (860) 486-3780
Official Website:

REASON FOR POLICY

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

General Ledger – part of the accounting system which contains the balance sheet and income statement accounts used for recording financial transactions.
Chart of Accounts – listing of accounts and their characteristics as defined by their attributes.
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 the proper recording and classification of all revenues, expenses, assets, liabilities and fund balances. The Accounting Office will ensure the proper recording and classification by properly maintaining the Chart of Accounts of the General Ledger and overseeing account setup and the assignment of attributes to accounts.  All submissions by departments to the Accounting Office to change attributes on accounts or to set up new accounts must be reviewed and approved by the Accounting Office.

PROCEDURES/FORMS

All new accounts proposed to be set up in the General Ledger are first reviewed and approved by the Accounting Office via electronic workflow to the Chart Manager Group.  This group consists of several Accounting Office staff.  In addition, all changes to account attributes are reviewed by a staff person in Accounting in the Chart Manager Group.

For more information, please see Learning Tools at http://financesystems.uconn.edu/

Capitalization Policy

Title: Capitalization Policy
Policy Owner: Robin Hoagland
Applies to: Staff
Campus Applicability: Storrs and Regional Campuses
Effective Date: August 19, 2014
For More Information, Contact Robin Hoagland
Contact Information: (860) 486-3780
Official Website: http://accountingoffice.uconn.edu/

REASON FOR POLICY

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 – 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

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 at fair 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.

PROCEDURES/FORMS

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