Recharge Operation Accounting Protocol

Table of Contents


Recharge Operation Glossary

Account Control - Account controls are the last four digits of the ten-digit account number in the general ledger (Ledger 0). These numbers are used to designate a specific asset, liability, fund balance, etc.

Automated Feed - Information transferred electronically from one computer to another.

Bad Debt Expense - Failure to receive payment on a billed sale. Bad debt expenses must be separately funded by the sponsoring department's unrestricted funds per OMB Circular A-21.

Billed Sales - Sales to third parties on credit. Payment will be made at some time in the future. An accounts receivable for all billed sales must be recorded on Comptroller's Form 60.

Budgeted Costs - Budgeted costs are defined as Ledger 2 expenditures being budgeted for the upcoming fiscal year (excluding bad debt expense and unallowable costs) plus or minus the projected current year ending fund balance.

Comptroller's Form 60 - This is a journal voucher form. This form should be completed to record accounts receivable for billed sales (i.e. sales to third parties), depreciation expense transfers, adjust inventory differences, accrue expenditures, write-off uncollectible receivables, etc.

Comptroller's Form 62 - This is an interdepartmental order form. This form is utilized to record sales by the recharge operation to a University user.

Comptroller's Form 133 - This is a report of money received form. This form must be completed for deposit of cash and checks with the Bursar.

Continuing Recharge Operation - Recharge Operations which have been operating for a period longer than one year.

Deficit - Expenses exceed revenues.

Depreciation - The allocation of the cost of a capital expenditure to the periods of its use.

FAS - Financial Accounting System - The University's general ledger and revenue/expenditure reporting system.

Federally Sponsored Agreements - University projects which receive money from the federal government. These projects are recorded in Ledger 5.

Fund Balance Position - The fund balance identifies the cumulative surplus or deficit generated by the operation.

General Ledger - The general ledger (Ledger 0) identifies the assets, liabilities and fund balance position of the operation.

OMB - The federal Office of Management and Budget. This government agency issues policies and guidelines relating to federally sponsored projects.

OMB Circular A-21 - "Principles for Determining Costs Applicable to Grants, Contracts and Other Agreements with Educational Institutions". A copy of this circular may be obtained from the Comptroller's Office Manager of Current Unrestricted Fund Accounting.

Protocol - General guidelines or instructions.

Rates - The sales price on goods or services sold to users.

Recharge Operation - A recharge operation furnishes goods or services to University departments and/or programs. It charges a fee directly related to the recovery of the goods or services provided. The fee is measurable in terms of materials used or hours worked for each order. The recharge operation acts only upon specific user request. Incidental users of the recharge operation include individual students, faculty, staff and the general public.

Recharge Operation Mark-Up - the recharge operation mark-up is comprised of those costs added to the base cost of goods to determine the sales price users must pay. They include expenditures such as the labor and supply costs incurred for inventory control.

Renewal/replacement Fund - Funds set aside for the renewal and replacement of University property. Charges to recharge operations for this purpose are unallowable under OMB Circular A-21.

Savage Value - The amount which can reasonable be expected to be realized upon retirement of the asset.

Specialized Service Facility Recharge Operation - These operations receive a charge for University administrative expenses, divisional administrative expense, and space use expenses (i.e., utilities).

Sponsoring Department - Department in the University responsible for management and operation of a recharge operation.

Subaccount - Subaccounts are the last four digits of the ten-digit account number in a subsidiary ledger account. They are used to distinguish between different types of revenue and expense within an account.

Subsidiary Ledger - The subsidiary ledgers (Ledgers 1-9) identify the revenues and expenses of the operation as of the date of the ledger report.

Surplus - Revenues exceed expenses.

Third Party - Services provided to a non-University department.

Total Operating Costs - Current year expenditures (excluding internal interest and bad debt expense) plus or minus the prior year ending fund balance.

University User - A university department or program that purchases goods or services from the recharge operation.

Unallowable Cost - A cost that cannot be charged, either directly or indirectly, to a grant or contract account. Recharge operations who sell goods or services to grants or contracts are prohibited from including recovery for unallowable costs in their rates.

Useful Life - Useful life of an asset is defined by one of the following: the amount of time the asset may be utilized (i.e. months, years); the number of units it may produce (i.e. boxes); or the service quantities produced (i.e. machine hours operated, miles driven, etc.)

User - Any customer of the recharge operations. University departments and programs are most frequent type of recharge operation user, students, faculty, staff and the general public may be served incidentally by the operation.



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