2. 2   Lab fees must be collected as E&G revenue per Texas Education Code.   Lab fee accounts must be reconciled for each semester’s activity to adjust for actual revenue generated versus the projected budgeted amount using census data.   Reconciliations are performed by the Budget Office and budget adjustments are made based on Banner enrollment reports.   Lab fees must be collected as E&G revenue per Texas Education Code.   Lab fee accounts must be reconciled for each semester’s activity to adjust for actual revenue generated versus the projected budgeted amount using census data.   Reconciliations are performed by the Budget Office and budget adjustments are made based on Banner enrollment reports.

3. 3   What can be purchased with laboratory fees? --Only supplies and materials required by the lab curriculum, which are reasonably allocable to a student, and / or consumed through the experiments performed.   What can be purchased with laboratory fees? --Only supplies and materials required by the lab curriculum, which are reasonably allocable to a student, and / or consumed through the experiments performed.

4. 4   What cannot be purchased with laboratory fees?  Wages  Equipment  Services  Equipment maintenance  Administrative overhead   Please review the guideline for a list of object codes available for use in lab fee accounts.   What cannot be purchased with laboratory fees?  Wages  Equipment  Services  Equipment maintenance  Administrative overhead   Please review the guideline for a list of object codes available for use in lab fee accounts.

5. 5   What is the process for assessing laboratory fees on lab courses?   Approved Lab fees are associated with course numbers   For each semester prior to the first day of registration, Financial Affairs reviews lab course fee set-up in Banner to assure courses are authorized.   We will not allow lab fees to be assessed to courses not previously approved. For a list of lab fee approved courses, contact Becky Sanchez at ext. 4071. Details will be in an appendix to the guideline posted to the web after August 1 st.   What is the process for assessing laboratory fees on lab courses?   Approved Lab fees are associated with course numbers   For each semester prior to the first day of registration, Financial Affairs reviews lab course fee set-up in Banner to assure courses are authorized.   We will not allow lab fees to be assessed to courses not previously approved. For a list of lab fee approved courses, contact Becky Sanchez at ext. 4071. Details will be in an appendix to the guideline posted to the web after August 1 st.

6. 6   What is the process for approving a new laboratory fee on a lab course?   The President’s approval authority for assessing new lab fees is conditioned on prior review and approval by the Executive Vice Chancellor for Academic Affairs. (Board of Regents Rule 40401)   To request a lab fee to be added to a course that was previously not approved for lab fees, follow the same process and forms for requesting incidental fees.   Fee can not exceed $30 per lab and must be cost justified.   What is the process for approving a new laboratory fee on a lab course?   The President’s approval authority for assessing new lab fees is conditioned on prior review and approval by the Executive Vice Chancellor for Academic Affairs. (Board of Regents Rule 40401)   To request a lab fee to be added to a course that was previously not approved for lab fees, follow the same process and forms for requesting incidental fees.   Fee can not exceed $30 per lab and must be cost justified.

7. 7   Lab Fee Usage & Review of Fee Balances -- Lab fee accounts do not lapse at fiscal year end. --Significant revenue balances will trigger a review of lab fee usage to assure cost justifications are accurate and fee rate is appropriately set.   Lab Fee Usage & Review of Fee Balances -- Lab fee accounts do not lapse at fiscal year end. --Significant revenue balances will trigger a review of lab fee usage to assure cost justifications are accurate and fee rate is appropriately set.

8. 8

9. 9 What is reasonableness testing? --Best practice to assure expected revenue is equivalent to income posted in the financial accounting system;   Calculation is based on data independent of the accounting system. -- Reviewing and analyzing revenue to ensure it appears reasonable to the best knowledge of the department. --Process developed in response to an Internal Audit recommendation to involve fee account administrators. What is reasonableness testing? --Best practice to assure expected revenue is equivalent to income posted in the financial accounting system;   Calculation is based on data independent of the accounting system. -- Reviewing and analyzing revenue to ensure it appears reasonable to the best knowledge of the department. --Process developed in response to an Internal Audit recommendation to involve fee account administrators.

10. 10 How will we do this? Financial Affairs staff will perform reasonableness testing with departmental financial administrators on a per semester basis for all fee revenue posted to 19 and 29 accounts. Two different processes: 1. 1.HIGH – LEVEL REVIEWS 2. 2.DETAILED REVIEWS How will we do this? Financial Affairs staff will perform reasonableness testing with departmental financial administrators on a per semester basis for all fee revenue posted to 19 and 29 accounts. Two different processes: 1. 1.HIGH – LEVEL REVIEWS 2. 2.DETAILED REVIEWS

11. 11 1. 1.HIGH – LEVEL REVIEWS Applies only to income that can be projected based on Banner student enrollment data. Financial Affairs will send Excel worksheets to account administrators for their review and comments. Administrators will:   Review budget to actual information   Provide explanations for material variances   Provide/validate revenue projections 1. 1.HIGH – LEVEL REVIEWS Applies only to income that can be projected based on Banner student enrollment data. Financial Affairs will send Excel worksheets to account administrators for their review and comments. Administrators will:   Review budget to actual information   Provide explanations for material variances   Provide/validate revenue projections

12. 12 2. DETAILED REVIEWS When income is not assessed through Banner on the basis of course enrollment (allowing for a easily computed projection by Financial Affairs) and the budget is greater than $25K, detailed analysis must be performed by the account administrator. May apply to housing revenue, application fees, testing fees, library fines, etc. 2. DETAILED REVIEWS When income is not assessed through Banner on the basis of course enrollment (allowing for a easily computed projection by Financial Affairs) and the budget is greater than $25K, detailed analysis must be performed by the account administrator. May apply to housing revenue, application fees, testing fees, library fines, etc.

13. 13 DETAILED REVIEWS, continued Account Administrators will:   Project revenue based on fee rates and number of units sold (rooms occupied, applications submitted, permits purchased, etc.)   Revenue computed should be within a reasonable percentage and amount difference from the revenue posted to the accounting system.   Examples of this type of analysis will be posted with the guideline. Additional assistance may be provided upon request. DETAILED REVIEWS, continued Account Administrators will:   Project revenue based on fee rates and number of units sold (rooms occupied, applications submitted, permits purchased, etc.)   Revenue computed should be within a reasonable percentage and amount difference from the revenue posted to the accounting system.   Examples of this type of analysis will be posted with the guideline. Additional assistance may be provided upon request.

14. 14 When? Beginning Fiscal Year 2011 - Fall: October revenue will be analyzed in November Spring: March revenue will be analyzed in April Year-end: August revenue will be analyzed in September Administrators will be prompted with detailed instructions; training may be offered as necessary. When? Beginning Fiscal Year 2011 - Fall: October revenue will be analyzed in November Spring: March revenue will be analyzed in April Year-end: August revenue will be analyzed in September Administrators will be prompted with detailed instructions; training may be offered as necessary.