FY2011 Other Education and General Program Accounts OVERVIEW OF “E” FUNDS

“E” Fund accounts are used by units to track revenues, expenditures, and fund balances associated with activities that are:  unrestricted  self-sustaining  on-going Balances in these accounts are carried forward from one year to the next for the purpose of expanding or improving the services provided by the unit. See USC Policy BUSF 3.30 Why Do We Have “E” Fund Accounts?

Differences Between “A” & “E” “E” Generates revenue Activity is ongoing Most are unbudgeted “A” Funded through state appropriations, tuition, VCM One-time activities included in A funds Most are budgeted

Funds that have no limitations/stipulations placed on them by external (outside of USC) sources. All “E” Fund accounts are unrestricted. Unrestricted Funds

Funds with limitations/stipulations place on them by external sources.  Source of funds is primarily gifts, grants, or contracts  Defined scope of work  Specific start and end dates  Deliverable product Restricted funds are not E funds. Restricted Funds

The activity generates sufficient revenue to cover all costs, including the general administrative fee, if applicable. Annual revenues should consistently exceed $5,000. Costs include direct costs of operation such as:  Salaries  Travel  Contractual services  Other costs clearly associated with the activity  General administrative fee (if applicable) Expenditures are controlled by the general Business & Finance policies governing all University funds. Self-Sustaining

Activity is continual and balances carry forward from one year to the next. One-time activities are not considered to be on- going. These activities are handled in a department’s “A” account. All “E” fund activities are on-going. On-Going

 Revenue Generating Accounts  Service Providing Accounts Types of Activities: How Do We Classify “E” Fund Accounts for Reporting and Monitoring Purposes?

 Continuing Education  Credit or non-credit conferences, workshops, short courses, and summer camp programs.  Studies Abroad Activities  Instructional programs with specific fee based on location.  Departmental Operating  Self-supporting activities associated with providing services to other University units or external organizations. Types of Revenue Generating Accounts

 The unit is responsible for establishing the user or participant fee rates needed to support these activities.  The established user fee should cover at a minimum all the direct costs of operations, as well as the general administrative fee charged by the University.  Expenses related to this activity are charged to account. Revenue Generating Accounts Guidelines

Departmental Recharge Centers – Cost reimbursement for departments that provide a common use service to other units on campus such as:  printing  central supply centers  copy centers  University Technology Services Annual revenues should consistently exceed $10,000 Service Providing Accounts

 Rates established (by department) must cover costs.  Rates must be consistently applied to all University users.  Rates are subject to review by the Controller’s Office, Internal Audit and external sponsors.  Unit must complete an “Other Education and General Programs Budget Worksheet”. Guidance on the completion of this worksheet is available from the clarification contact person. Service Providing Accounts Guidelines

Complete the “Request to Establish ‘E’ Fund Accounts” form and submit to Budget Office How do I establish an “E” account?

UNIVERSITY OF SOUTH CAROLINA REQUEST TO ESTABLISH ‘E’ FUND ACCOUNTS (OTHER EDUCATION AND GENERAL PROGRAM ACCOUNTS) USC Budget Office, Susie Vitaris, The requested account will be used for all activity associated with workshops conducted for institutes of higher education. Account is to be funded through registration fees collected from workshop participants. Participants will be business managers from various institutes of higher education. Expenditures will include printing costs, facility rental and, in some cases, food. Budgets in Higher Education Workshops E104 Leslie Brunelli 1/10/06 Susie Vitaris 6/30/2050 Yes No

UNIVERSITY OF SOUTH CAROLINA REQUEST TO ESTABLISH ‘E’ FUND ACCOUNTS (OTHER EDUCATION AND GENERAL PROGRAM ACCOUNTS) Yes Instruction Yes No One of these 3 should be answered “yes”

If the requested account is designated as a departmental recharge center and the expected revenue exceeds $10,000 annually, the unit must also include a completed ‘Other Education and General Programs Budget Worksheet’ form. Please note…….

1/10/ E104 X Budgets in Higher Education WorkshopsN Leslie Brunelli Susie Vitaris Y Activity involved in conducting Budget in Higher Education Workshops Susie Vitaris 1/10/06

 Complete “Request to Establish ’E’ Fund Accounts” form.  If in doubt about restricted verses unrestricted status, seek clarification from: Clarification Contact Person: Jim Little, Office of Research Telephone:  Complete “Other Education & General Programs Budget Worksheet” form – if needed.  Forward all completed forms to Ralph Summer in the Budget Office. Recap of Unit’s Role

 Review the unit’s request to determine if the use of an ‘E’ fund account is appropriate.  If not appropriate, the Budget Office will state its reason in writing to the requesting unit and recommend alternatives.  If the requested account is a departmental recharge center, the Budget Office will determine if appropriate from the “Other Educational and General Program Budget Worksheet”. What is the Role of the Budget Office in Establishing an “E” Fund Account?

Maintain detailed records supporting charges to Other University units, students, and external customers to include at least the following information: 1.Name of person and department responsible for the service. 2. General ledger account numbers for internal customers being charged for the service. 3. Description and cost of the services being performed. 4. Names and addresses of the external customers being billed for services. 5. Total volume of activity for University customers, including federal grants and contracts, and for external customers. 6. Financial information necessary for computing billing rates. (See Other Educational and General programs Budget Worksheet.) Establish user fees to at a minimum to cover the entire cost of operations, including the general administrative fee. What is the Role of the Unit in Maintaining an “E” Fund Account?

 Cash collected from outside sources should be deposited on a timely basis into the proper revenue classification code.  Intra-Institutional Transfers (IIT's) will be used to record fees paid by one University unit to another. (See BUSF 2.06.)  Generally, a unit may not apply revenue as a credit to reduce expenditures within the same unit. Revenue

CodeDescription 40410Conference Registration Fees 40500Other Public Service Fees 41100Departmental Sales 41200Departmental Services 48611State Government Contract 48612Local Government Contract 48613Commercial Contract 48614Philanthropic Contract 48615Other Contract 48628Research Foundation Support 48650General Receipts Monitor annual revenue generation to ensure that it does not fall below $5,000. If revenue falls below $5,000 deactivate the “E” Fund account and run the activity through “A” Funds. Recommended Revenue Codes

 Process expenditures for ‘E’ fund accounts in the same manner as any other expenditure.  Process transfer requests for ‘E’ fund accounts in the same manner as any other transfers with the following exceptions: –‘A’ fund dollars may not be transferred to ‘E’ fund accounts to cover expenditures. –Excess ‘E’ fund balances not needed to meet direct expenditures and the general administration fee may be transferred to ‘A’ fund accounts or another ‘E’ fund account. –Technology fee funding is earmarked to improve access to technology for students and should not be transferred to other uses. Expenditures and Transfers

General Administrative Fee Covers institutional overhead Also known as Direct Charge Journal Entry MM-0971 Monthly (one month in arrears) 8% of prior month expenditures (excluding prior month fee) Object code 52001

 Maintain a positive fund balance status.  Where accounts experience continuing deficits – prepare written plan of action.  Where accounts experience excessive balance – prepare written plan to demonstrate future need for funding. Fund Balance

Keep in Mind…….. Beginning Balance (3XXXX) + Revenues (4XXXX) + IIT’s (6XXXX) +Transfers In (81XXX) -Expenditures (5XXXX) -Transfers Out (86XXX) ____________________________________________ Available Balance

In This Case…….. Beginning Balance Revenues IIT’s Transfers In Expenditures Transfers Out ______________________________ Available Balance 33, , , , _________________ 26, Note: Available Balance = Cash Balance

Semi-Annual Review Twice each year, the Budget Office will conduct a review of all “E” fund accounts in an effort to identify: –Accounts with negative cash balances –Accounts with excessive cash balances –Accounts with little or no activity In each case, the Budget Office will: –Seek to resolve its concern by contacting the unit –Notify each Vice President of “E” fund accounts with continuing excessive or deficit funding

The Budget Office does not prepare or process any routine financial transactions associated with ‘E’ fund accounts to include deposits, expenditures, or journal entries/transfers. This is the responsibility of the unit. Routine Financial Entries

To deactivate an inactive account, the unit should do the following: –Submit personnel documents moving all future payroll charges –Notify appropriate USC servicing departments in order to prevent future IIT’s being charged –Cancel or transfer all outstanding commitments (purchase orders, travel authorizations) –Transfer any remaining funds (journal entry) to a separate account After 30 days of inactivity, the unit should send a written request to the Budget Office to deactivate the account. Note that the account will continue to show on various financial reports through the end of the fiscal year. How do I deactivate an account?

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