For manufacturing operations, this subaccount is for the cost of goods produced during a given accounting period. This includes raw materials, labor, and fixed and variable overhead. 

A service is broadly defined as any activity provided by a department or an outside organization where the charge is assessed on a fee-for-service basis. For example, if an audio-visual service department provides a projectionist to the Comptroller’s Office and charges for the service, the Comptroller’s Office charge would be made to subaccount 2100. By contrast, if the Comptroller’s Office hires someone to project a movie and puts that person on the departmental payroll, then that person’s salary is not a service expense, but rather a payroll expense. In that case, the salary should be charged to the Comptroller’s Office Technical salary subaccount.

The cost of social activities (e.g., a holiday party) and any costs directly related to such costs (e.g., transportation, tent rental, tickets, etc.) must be charged to subaccounts 3000-3099.  Personal entertainment activities are unallowable and unreimbursable expenses in accordance with the University’s travel policy (Financial Policy No. 1202). 

See Financial Policy No. 1203 for the University’s policy on business meals and social activities.

Supplies are raw materials of any cost and goods with a per item cost of less than $5,000 or a useful life of less than one year. Refer to the Equipment section for items that cost  $5,000 or more.

Equipment is defined as an item of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost that is $5,000 or more.  Total cost includes freight, in-transit insurance, installation, and any modification or accessories necessary to make the equipment usable. (Supplies and replacement parts should be charged to the appropriate supply subaccount.)

The following subaccounts are to be used for expenses related to travel including tickets, taxi, car rental, hotel, and meals. (For travel entirely within the Chicago area, use subaccounts 4400 to 4499.)

Subaccounts in the leases/rental range should be used for leases or long term rental agreements. (Car rental expenses related to travel should be charged to subaccounts 7100–7500.)

Subaccounts in the training expenses/student aid range are to be used for expenses related to student aid and student training. Expenses related to the professional development of employees should be charged to subaccounts 3900–3999.

Tuition aid awards, and any corrections or transfers of tuition aid awards, are entered into FAS through the Financial Aid Awards module of the Student Information System. To properly record transactions to this subaccount, the following criteria must be met: 

1. The student is eligible to receive the award in accordance with University and divisional policy.  
2. The student receiving the tuition aid is assigned a U of C student identification number in the Student Information System (SIS).  
3. The student receiving the tuition aid is registered in the academic quarter for which the tuition aid is granted.  
4. For graduate students, the amount of tuition aid cannot exceed the amount of the tuition charge for the academic quarter. For students in the college, the aid cannot exceed the amount of the educational charges assessed for the academic quarter.  
5. Tuition aid is an allowable expense in the FAS account charged.  

To properly record transactions to this subaccount, the following criteria must be met:

1. The student is eligible to receive the award in accordance with University and divisional policy.  
2. The student receiving the stipend aid is assigned a U of C student identification number in the Student Information System (SIS).  
3. The student receiving the stipend aid is registered in the academic quarter for which the aid is being granted.  
4. Stipend aid is an allowable expense in the FAS account charged.  
5. The recipient is not a post-doctoral fellow. (See subaccount 8370 for post doctoral fellowship stipend payments.)  

Fee aid awards, corrections, and transfers are entered into FAS through the Financial Aid Awards module of the Student Information System. To properly record transactions to this subaccount, the following criteria must be met: 

1. The student is eligible to receive the award in accordance with University and divisional policy.  
2. The student receiving the fee aid is assigned a U of C student identification number in the Student Information System (SIS).  
3. The student receiving the fee aid is registered in the academic quarter for which the aid is granted.  
4. The amount of fee aid does not exceed the fees assessed by the University for the academic quarter.  
5. Fee aid is an allowable expense in the FAS account charged.  
6. The recipient is not a post doctoral fellow. (See subaccount 8380 for post doctoral fellowship fee aid.)  

Construction, renovation, and property acquisitions subaccounts are to be used for expenses relating to new construction, renovations, and purchases of land and buildings. All renovation and construction projects with a proposed cost of $100,000 or more must be accounted for in Ledger 8 - Plant Funds. All purchases of land and buildings must be made from a Ledger 8 - Plant Fund account and in accordance with University Policy.

Occupancy and maintenance subaccounts are to be used by central administration for payment of utilities and by those departments with rental arrangements which require the department to pay for the utilities.

Nonmandatory transfers are transfers of funding. They serve a variety of objectives such as the underwriting of the restricted budget.

Special Edits: When these account controls are used, the offsetting account control must be either a 51nn or 94nn subaccount.

Salary/Benefit Support transfers are to transfer funding to a division/department in support of salary. These transfers are not meant to bypass the payroll transfer process.

Lump sum transfers should be made on Comptroller Form 60, "Journal Voucher".

Transfers of differentiated (separately identifiable) expenses should be made on Comptroller Form 61, "Expenditure Transfer." On the expenditure transfer, both the debit and credit side of the transfer entry should have the same subaccount as the original entry. An exception can be made if the subaccount that was originally charged was incorrect, and the transfer is being made to charge the correct subaccount. 

Subaccounts 9600–9699 are Lump Sum Transfers of Expenses (Debit Subaccount), as follows:

9620–9624	Transfer from Ledger 2—Within Division
9625–9629	Transfer from Ledger 2—Other Divisions
9640–9644	Transfer from Ledger 4—Within Division
9645–9649	Transfer from Ledger 4—Other Divisions
9650–9659	Transfer from Ledger 5—Federal
9660–9669	Transfer from Ledger 6—Nonfederal
9670–9679	Transfer from Ledger 7—Endowment
9690	Transfer from Ledger 9—Agency & Misc. (must be 9690 on both debit and credit side of the entry)

Subaccounts 9700–9799 are Lump Sum Transfers of Expenses (Credit Subaccount), as follows:

9720–9724	Transfer to Ledger 2—Within Division
9725–9729	Transfer to Ledger 2—Other Divisions
9740–9744	Transfer to Ledger 4—Within Division
9745–9749	Transfer to Ledger 4—Other Divisions
9750–9759	Transfer to Ledger 5—Federal
9760–9769	Transfer to Ledger 6—Nonfederal
9770–9779	Transfer to Ledger 7—Endowment
9790	Transfer from Ledger 9—Agency & Misc. (must be 9790 on both debit and credit side of the entry)

 

Credit subaccounts record the sale of goods or services to third parties or to other University departments.

If the transaction involves the sale of goods or services to another University department, then the credit subaccount used by the seller to record the sale is determined by the ledger charged for the purchase. The department making the purchase should charge an expenditure subaccount which most closely relates to the good or service purchased. For example, Division A sells Division B a box of Xerox paper. Division B wants the charge recorded in its subsidiary ledger 4 account. The purchasing division, Division B, records the charge to the office supplies expenditure subaccount (5500) in its subsidiary ledger 4 account. The selling division, Division A, should record the credit to the credit subaccount for the subsidiary ledger 4 (9845). The departments should use an interdepartmental order form, Comptroller Form 62, to record the intra-University sale. If the transaction involves the sale of goods or services for cash, then the credit subaccount for outside income is used by the seller to record the sale. The sale is reported on a Report of Money Received, Comptroller form 133. 

Specific credit subaccounts and their purposes are as follows:

An unallowable cost is a cost that cannot be charged, either directly or indirectly, to a grant or contract as specified by the terms of the grant or contract. Unallowable costs should not be confused with unreimbursable costs, which are costs the University will not pay. In contrast, unallowable costs are reimbursed by the University; they simply cannot be charged to certain grants and contracts.

Unallowable costs can be further divided into two types: activity and transaction.

An activity is defined as a function or responsibility of a person or department. The cost of the activity includes but is not limited to salaries, benefits, phones, postage, and travel for the person or department performing the activity. Unallowable activities are alumni activities, bad debt losses, commencement and convocation ceremonies, contingency provisions, fund raising, investment management, lobbying, public relations, and student activities. Unique six-digit FAS accounts should be created to record the costs incurred for unallowable activities.

A transaction is an event, usually evidenced by a receipt or group of receipts; for example, the receipt from a business meal is evidence of a transaction. Unallowable transactions are advertising, marketing, selling, the expenses of operating automobiles for personal use, most business meals, social activities, fines, penalties, officers’ housing expenses, institutional donations, interest costs on cash overdrafts, interest costs for internal loans, certain memberships, gifts, and trustee expenses. Unallowable transaction costs should be coded to the appropriate unallowable cost subaccounts.

All unallowable costs should be coded to an appropriate unallowable cost subaccount. For additional information on the University policy regarding unallowable costs, see the University of Chicago Financial Policies Manual, Policy Number 1013, Unallowable Costs.