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UC DAVIS: ACCOUNTING & FINANCIAL SERVICES June 19, 2006 DEANS, DIRECTORS, DEPARTMENT CHAIRS AND ADMINISTRATIVE OFFICERS RE: Appropriate Use of UCD Agency Accounts UCD Policy and Procedures Manual 330-09 defines agency accounts as those maintained by campus Accounting & Financial Services to account for funds held by the University as custodian or fiscal agent on behalf of principals. Such principals may include individuals, faculty/staff/student organizations sponsoring events separate from the University (e.g., retirement parties, graduate student association activities, equestrian club event team) or social events (e.g., dinners, awards), private organizations (e.g., World Poultry Association, Egyptian Embassy), and other sponsors (e.g., funds from a private university to support a visiting scholar) Funds accepted for an agency account are neither University funds nor charitable contributions to the University. These funds belong to the principal, are spent on behalf of the principal and any remainder must be either returned to the principal or distributed at the direction of the principal, normally to the campus general fund miscellaneous income account or to a University gift fund designated by the principal. As recommended by Internal Audit Services (Internal Audit Project #04-39), Accounting and Financial Services reviewed current agency accounts and found that for many agency accounts, the purpose/activity and the responsible parties were not separate from the University. These accounts included conferences, seminars and training organized and sponsored by University departments and not by organizations separate from the University. Revenue-generating activities organized by campus, in which the campus department is ultimately responsible, should be recorded in University funds. In response to this issue, Accounting and Financial Services has set up a series of funds in a University self-supporting fund group to record transactions for University sponsored conferences, seminars and training activities. These funds allow the purchase of alcohol and approved exceptions to the University entertainment policy. Each Dean's and Vice Chancellor's office will be responsible for a unique fund in this series and will be able to assign account(s) within the fund to departments for recording these University activities. Accounting and Financial Services will review and approve these new accounts as they are established. Department chairs will be responsible for fiscal oversight of the department accounts within the unique fund. Oversight includes approving the budget submitted for the activity; covering any unresolved deficits in these accounts; approving the transfer of any balances in these accounts to the department's education and research account and ensuring that expenses are appropriately matched with revenues collected for the event. Deans and vice chancellors are expected to retain oversight of the overall fund associated with their college or administrative unit and to ensure the departmental oversight is effective. Registration/participation fees will be exempt from the Non-University Differential (NUD). The reduced NUD (currently 8.0%) will be charged to non-University entities who are co-sponsors for these University activities and who receive tangible benefits from the activity (e.g., name on the program, table/display at the event). If the sponsor receives no tangible benefit, the funds will be recorded as a gift in a gift fund. These changes are effective July 1, 2006. Questions should be directed to Susan Moore (mmoore@ucdavis.edu) in General Accounting. Susan will be contacting Deans's and Vice Chancellor's offices to establish funds for these activities. J. Michael Allred Associate Vice Chancellor - Finance/Controller 06-070
 Office of the Chancellor | Contact Information | Current Issues | Speaking Out | Staff and Organization | Philosophy of Purpose | Principles of Community | Administrative Resources Modified: 12/14/2006 12:57:16 PM Comments: |
