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  • Transfers
    Interfund transfers - Transfers made between different funds.

     

    Rules:

    1.  Interfund transfers cannot be made to or from the Restricted fund, Investment in Plant fund, or Agency fund.

    2.  Transfers must be entered with an account code on each side.
    3.  All transfer entries are to be submitted to the Budget Office
    4.  Transfer account codes to be utilized are as follows:
    890100
    Nonmandatory Transfers
    890120
    Transfer to Research
    890130 Transfer to Public Service
    890140 Transfer to Other Area
    890150 Indirect Cost Recovery (IDC) Transfer (used by the Budget Office only)
    5.  Revenue account corrections or expense account corrections are to be made on the revenue or expense account, not with a transfer account codes.

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  • Capitalization

    Capital Project:

    Any construction, improvement, renovation, repair or wiring project with a cost $10,000 or greater. These projects should be charged to a plant fund account.

    Not all capital projects are capitalizable projects. They must meet the criteria as set forth in the following link:Capital Asset Guide.

    Capitalizing a Project means:
    Adding costs incurred by the University on a project to the value of the associated physical plant assets.
    Account Codes:
    When a project meets the criteria for capitalization, account codes used should be in the 782xxx or 783xxx series; otherwise account codes in the 75xxxx series should be used.
    Contact Accounting & Financial Reporting with specific questions relating to whether projects are capitalizable and/or to determine which account codes to use.

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  • Insurance Proceeds

    Central Purchasing Office (CPO) handles all Insurance Claims. For instructions on how to handle the claims visit the CPO web site.

    Accounting for Insurance Proceeds: For large claims, a separate Index (FOPAL) should be established to account for expenses incurred to "fix" the loss. This amount is typically reimbursed by the insurance company. Smaller claims can also be set up in a separate Index (FOPAL).

    Insurance proceeds do not represent revenue, they are credited against the expense incurred to bring the University up to it's pre-loss position.

    Exception: If the damage is not fixed, proceeds should be reported as revenue. For example, if we receive insurance proceeds to replace a stolen computer, but decide not to replace the computer, the insurance proceeds represent revenue to the University.

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  • Leases and Rentals
    For purposes of this section, no distinction is being made between the term leases and the term rentals. The word leases will be used throughout this summary.
    1. Types of Leases
      1. Operating
      2. Capital
        1. Operating Lease
        • Generally, furniture and equipment with a lease period of less than 45 months.
        • All leases of real property
        • The Property Office may apply a property tag to leased furniture and equipment and record the items as private equipment.
        1. Capital Leases
        • Office equipment and furniture with a lease period greater than 45 months. (Computers leased from Hewlett-Packard are treated as capital leases even though lease period may be less than 45 months.)
        • Furniture and equipment on capital leases will be tagged as University property by the Property Office and will be included on the department's equipment inventory listing.
        • The Accounting and Financial Reporting Office will determine if a lease is a capital lease or an operating lease.

         

    2. Items That Can Be Leased
      1. Equipment
      2. Furniture
      3. Real Property( e.g. Land, Buildings, Storage Units, Billboards)
      • Services from temporary employment agencies, security agencies and paging services are not considered leases. Account codes 754xxx or 761xxx should be used for such services.

       

    3. Account Codes
      1. Operating Leases - 753xxx
      2. Capital Leases - 7809xx
        1. Generally, account code 753100 is used for real property operating leases and account code 753200 is used for equipment and furniture.
        2. Account code 780910 is most often used for capital leases.

       

    4. The following is an excerpt from the Purchasing section of the Business Prodedure Manual as it relates to Leases:

      7.03.05.7 Lease or Lease/Purchase of Equipment and Lease/Buy Analysis

      The originator must provide the following information on all PRs for the lease or lease/purchase of any type of equipment:

      1. The cost of the item, if it were to be purchased instead of leased/rented.
      2. The interest rate, number of payments, amount of down payment, and any other significant terms of the lease agreement.
      3. The date of the first payment to be made, if known.
      4. The total amount to be paid over the term of the lease, including both principal and interest.
      5. Maintenance costs included in the monthly payment.
      6. The buy-out option.


      If the amount calculated under point (4) exceeds that under (1), a justification for leasing versus direct purchase must be submitted to CPO.

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