UCSD CAMPUS NOTICE University of California, San Diego |
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SPEAR PROJECT ADMINISTRATION October 26, 1998 CAMPUS MSO's / KEY ADMINISTRATORS SUBJECT: Correction - Account Code Validation Process Recently the Chancellor approved certain sponsored projects system improvements proposed by the Steering Committee for Sponsored Project Excellence Achieved through Redesign (SPEAR). One of these projects is the validation of expenditure transactions' account codes. In our current environment, many transactions with invalid account code/fund combinations are not detected until the sponsored project is in the closing process. This activity causes delays, missed deadlines and expenditure of additional effort by department administration to track down supporting documentation that may be several years old. As a result, UCSD experiences increased processing costs and the risk of federal sanctions that includes suspension from future federal awards in flagrant cases. The validation function alerts departments when specific expenditure types are questionable in terms of applicable regulations that apply to the fund being charged. Once alerted, departments can correct the inappropriate expenditures. The validation is comprised of two edit processes. The first edit (E edit) blocks the expense transaction for prescribed Rule Classes at the point of entry into the IFIS system. The edit applies to those items that are unallowable for any federal and state agencies projects, e.g., fines, penalties, tobacco/confection, gifts and alcoholic beverages. See the attached appendix for the list of unallowable account codes when applied to federal/state fund sources. For these items, an immediate correction to an acceptable funding source is required. Extramural Funds will be responsible for assigning and maintaining the "E" account codes used by IFIS in the validation process. The second edit (W edit) allows the transaction to enter IFIS but attaches a warning tag to the transaction for Account Code/Fund combinations prescribed by the department. These transactions will appear on FinancialLink's Ledger Annotator for the department's review. If no action is taken, the transaction remains in IFIS as an acceptable charge to the fund. Departments will be responsible for assigning "W" account codes to a specific fund for use by IFIS in the validation process. These edits will be implemented on October 15. Detailed information regarding the Account Code Validation process may be accessed at the following Web address: http://www-bfs.ucsd.edu/emf/proced/afv_act.htm IFIS recharge journals prepared on line Beginning in October, the edit feature (E Code) in the account code validation application will block prescribed expense transactions from entering IFIS at the point of entry. The edit applies to those items that are unallowable for federal and state agencies projects, e.g., fines, penalties, tobacco/confection, gifts and alcoholic beverages. The attached appendix identifies the unallowable account codes on federal fund sources and federal fund ranges. If an Activity Code is rejected, the recharge unit will need to contact the ordering department for an acceptable funding source. Once an acceptable funding source is provided, the transaction must be resubmitted on the journal detail screen. Revised instructions for entering journal vouchers can be found at the BFS web site: http://www-bfs.ucds.edu/gen/services/onlnjrnl.htm THE ABOVE URL SHOULD READ http://www-bfs.ucsd.edu/gen/services/onlnjrnl.htm Batch recharges Recharge departments providing batch files have received prior notification and instructions for the fund/account validation. As a reminder, the new edits for Account Code validation will be applied to batch recharges beginning with the October accounting period. Revised interface specifications can be found on ACT's web site: http://www-act.ucsd.edu/fis/docs/client/clindex.html Commodity Code addition to distinguish between "advertising" Account Codes The following Account Codes are available for classifying advertising costs. 637259 - Advertising - Events & Promotional (Unallowable on federal funds) 637460 - Advertising - Recruitment & Procurement (Generally Allowable on federal funds) However, only one Commodity Code (P2512) was originally assigned this classification for purchase activities. Given the distinction noted above regarding allowable and unallowable, an additional Commodity Code has been established so that the following apply: P2512 is assigned to 637259 - Advertising - Events & Promotional and P2525 is assigned to 637460 - Advertising - Recruitment & Procurement The application of the new commodity code should begin immediately. A review of your open purchase orders should also be performed and change orders submitted where applicable to avoid payment problems. If you have specific questions regarding the process, contact Miles Bowler at mailto:mbowler@ucsd.edu or extension 21808. Miles Bowler Project Administrator for SPEAR ---------------------------------------------------------------------------- APPENDIX LIST OF UNALLOWABLE ACCOUNT CODES ON FEDERAL AWARDS Account Code Number Description 637259 Advertising - Events & Promotional Cost of advertising media and corollary administrative costs. advertising media include magazines, newspapers, radio and television programs, direct mail, exhibits, and the like. 637450 Fines, Penalties & Disallowances Cost resulting from violations of, or failure of institutions to comply with Federal, State and Local or foreign laws and regulations. 637451 Legal Judgements & Settlements Cost resulting from payment of claims in any criminal, civil or administrative proceedings. 637452 Cost of Legal Proceedings Cost of legal services whether performed by in-house or private counsel and cost incurred in connection with any criminal, civil or administrative proceedings. 637455 Gifts - Flowers, Tickets, Contributions Cost of gifts or flowers regardless of the occasion, and tickets to events. Cost of contributions made by the university regardless of the recipient. 637461 Advertising - Disposal Sales Cost of advertising media and corollary administrative costs. Advertising media include magazines, newspapers, radio and television programs, direct mail, exhibits, and the like. 637465 Meals - Parties & Social Events Cost of entertainment including amusement, diversion, and social activities and any costs directly associated with such costs (tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities). 637466 Meeting Costs - Parties & Social Events Cost of meetings for social activities including costs such as meals, lodging, rentals, transportation and gratuities. 637480 Dues/Membership - Civic & Social Cost of membership in any civic, community or social organizations. 637481 Subscriptions - General Interest Cost of subscriptions to publications that are not research related. 637930 General Liability Program Assessment to non federal funds to fund the General Liability Program which pays for claims filed against the University. 638001 General Books-Paperback Cost of any books that are of general interest and are not research related. 638014 UCSD Surplus Property Sales Costs associated with the disposal of surplus UCSD property. 638086 Tobacco/Confection Cost of cigarettes and tobacco. 638173 Beverages - Alcoholic Cost of alcoholic beverages such as wine, liquor, beer, etc. 638191 Catering Services - Parties & Social Events Cost of catering services which includes meals, setup, service charge, rental, gratuities, etc., for social events. (*) 638194 Catering Recharges - Parties/Social Events (*) Same description applies 638197 Faculty Club Recharge - Social Catering (*) Same description applies LIST OF UNALLOWABLE ACCOUNT CODES AS APPLIED TO FUND RANGES FOR FEDERAL AWARDS Fund Range Description 16000 - 16099 (A-Z) Federal Overflow 18800 - 18899 (A-Z) Federal Flow Thru (State) 20851 - 20899 (A-Z) Federal Flow Thru (Local Government) 21000 - 33999 (A-Z) Federal 40000 - 40499 (A-Z) Federal Flow Thru (Private) except 40004, 40030, 40094, 40181, 40382 78000 - 79199 (A-Z) Federal Flow Thru (Private) |