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UCR Policies and Procedures

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 Campus Policy Number: 300-66A

 
Sales and Services Activities:  Establishment and Budgetary Review
                                                          Organization Sales and Service Fund Policy (OSSF)
Policy Owner:                                Resource Planning & Budget
Effective Date:                               04/01/2004 (Revised 11/15/2012)
 
Organization Sales and Services Fund Policy (OSSF)
 
Policy Objective and Overview
This Policy is an addendum to Policy No. 300-66, Sales and Service Activities. It is intended to supplement that policy in regards to specialized activities of a low dollar value or one-time only nature. Policy No. 300-66 encompasses all budgetary and policy aspects of Sales and Services activities, including the establishment of budgets, rates, cost allowability, reviewing cycles, and full-costing principles, and governs this policy addendum.
 
The Organization Sales and Service Fund (OSSF) is to be used for non-profit, campus business enterprises which meet all criteria of a Sales and Service Activity. Activities are of a low dollar value and are either on-going or one-time.
 
Requirements for unit approved on-going and one-time activities excluding conferences and seminars:
  1. If unit approved, maintain an annual sales volume of $15,000 or less, and
  2. Have no direct charges for salaries and benefits for permanent staff, and
  3. The primary source of revenue is external. (Any usage requiring recharge activity requires special approval from the Office of Resource Planning and Budget.)
Examples of on-going OSSF activities include:  incidental sale of clothing, articles, miscellaneous materials, or other novelties; as well as occasional or one-time services of the same nature, excluding conferences and seminars.
 
Requirements for unit approved conferences and seminars:
  1. Proceeds for a single activity are not to exceed $25,000.
  2. Have no direct charges for salaries and benefits for permanent staff, and
  3. The primary source of revenue is external. (Any usage requiring recharge activity requires special approval from the Office of Resource Planning and Budget.)
 
Requirements for Resource Planning & Budget (RP&B) approved one-time service contracts:
  1. Proceeds for a one-time service contract (i.e., business agreement) not to exceed $100,000 and
  2. The source of revenue is external.
 
Policy Implementation and Review Responsibility
One fund has been established for each organization (See the list provided below.). This fund can be used by all departments within an organization to record appropriate budgetary and financial transactions. Each organizational financial officer is charged with the responsibility of applying this Policy to ensure adequate oversight of each organization’s fund. Organizational financial officers are required to review the fund on an on-going basis to ensure all applicable policies are followed. RP&B, as part of its role as the campus budget office, is charged with the responsibility of monitoring the actual implementation of this policy to ensure adequate campus oversight over all Sales and Services activities.
 
Where an RP&B one-time approval is required, a Sales and Services fund application should be submitted for review. This application should be signed by the responsible party prior to submission. In the narrative, clarify that a new fund number is not being requested but rather advanced approval is being sought which would allow performance of the one-time service contract. After review, an e-mail or written memorandum will be provided authorizing its use.
All questions and correspondence pertaining to this policy are to be directed to the Office of Resource Planning and Budget.
 
Use of Organization Sales and Services Fund
All requests to use the Organization Sales and Services fund must be forwarded to the appropriate dean/vice chancellor for review and approval. Each organization is responsible for establishing internal policies and procedures regarding the implementation of this policy. At a minimum, all procedures should require the submission of a budget proposal containing a breakdown of proposed revenue and expenditures and a concise narrative in support of the establishment of the new activity. The narrative must briefly describe the service(s) to be provided, the need for the service(s), the proposed rate structure, and the primary clients to be served. An authorized faculty member or manager of the department is required to accept responsibility for the Organization Sales and Service events/activities and any budget.
 
Budgetary Principles and Guidelines
Each approved use of the Sales and Services Fund requires the establishment of a temporary budget that reflects its operations. This budget is to be entered into UCRFS under the organizational fund number, and all revenues and expenditures are to be entered with the departmental activity number. The department chair or director, the organizational financial officer, and ultimately the dean or vice chancellor, are responsible for the management of all funds involved, especially assuring that deficits do not occur.
 
Accounting Entries
Deposits to the OSSF should be made to account R60000, employing the appropriate organizational fund number, the department’s activity code and function 20 using the Deposit Advice Forms System (DAFS). It is recommended that cost centers and/or project codes be used to monitor the various activities recorded on each fund.
 
Sales Tax
External revenue generated by an OSSF activity may be subject to State Sales tax. The liability for collecting this tax rests with the department/organization making the sale. Tax applies to the gross receipt of all tangible personal property and must be computed and deposited at the time the revenue is deposited into a University account.
 
For example a department that makes photocopies for students at a price of $0.06 each would charge $12.00 for 200 copies. The department would then add 7.75% tax, or $0.93, for a total price of $12.93.
 
When depositing this revenue, $12.00 would be allocated to the departmental revenue FAU and $0.93 would be allocated to the sales tax FAU. (Account 115510, Activity A01392, fund ZZZZZ and function ZZ)
Additional information concerning sales tax can be found at web site http://www.sbs.ucr.edu by clicking on related sites.
 
References
Business and Finance Bulletins:
·         A-47, University Direct Costing Procedures
·         A-56, Academic Support Unit Costing and Billing Guidelines
·         A-59, Costing and Working Capital for Auxiliary and Service Enterprises
·         BUS-54, Operating Guidelines for University Supply Inventories
·         University of California Sales and Use Tax Manual
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Organizational Sales and Services Fund
 
Fund              Organization Name                                                        Org Code
60600             School of Education                                                          Org10
60601             Bourns College of Engineering                                        Org11
60602             College of Humanities, Arts and Social Sciences         Org12
60603             Anderson Graduate School of Management                  Org13
60604             College of Natural and Agricultural Sciences                 Org14
60605             University Extension                                                          Org15
60606             University Library                                                               Org16
60607             Resource Planning and Budget                                       Org17
60608             Academic Senate                                                              Org18
60609             Vice-Chancellor Finance & Budget                                 Org19
60610             Chancellor's Office                                                             Org20
60611             Computing and Communications                                     Org21
60612             Graduate Division                                                               Org22
60614             Vice Chancellor Research                                                 Org24
60615             Vice Chancellor Student Services & Enrollment             Org25
60616             Vice Chancellor University Advancement                        Org26
60620             VC-Public Service and Int'l Programs                              Org32
60621             SOM Miscellaneous S&S                                                  Org34
60622             CE-College of Nat’l and Ag. Sciences                             Org414
60623             Water Resources                                                                Org428
60624             DANR-Program Leadership                                              Org433
60625             UC MEXUS                                                                          Org530
60626             IGPP                                                                                      Org531

This document is available in a .pdf format by contacting tim.willette@ucr.edu.