Q&A Topics Listed Alphabetically

1099 Reportable Account Codes

Q – How do I make sure that a university expense reimbursement to an employee does not generate a tax reportable Form 1099? (Answer from the PSC Communicator newsletter Oct 2005 #2)

A – When you use 1099-applicable Account chartfield values in your Payment Vouchers, Travel Vouchers, and so on, the Finance System flags those lines for reporting to the Internal Revenue Service (IRS). What happens otherwise?

Consider, for example, a reimbursement to an employee who needs to make business-related telephone calls while in travel status. If you separate this expense and designate it with the standard Telecomm Services Account chartfield value (482602), you flag this reimbursement as tax reportable. For the transaction to be reported, the vendor (payee) needs to be marked as a 1099 vendor. Since an employee should not be made a 1099 vendor for this reason, the payment remains on hold. The payment cannot be made.

On the other hand, if you simply include the telephone costs as part of the employee’s general trip costs (e.g., out-of-state travel, 700200), then you treat this expense as part of the cost of doing business from somewhere other than the normal work site. If you prefer to separate the cost of these phone calls from the rest of the trip costs, you could instead use the Toll Charges Account value (482607), which is not 1099 applicable. In either case, the transaction is not marked as reportable and the vendor information is correct as is. The payment can be made. As you classify your transactions with Account chartfield values, consider:

When should you use a 1099-applicable Account? When you buy a service directly from the service provider. (Not when you reimburse an individual/employee who personally incurred an expense that the University ultimately wishes to cover. Note: as a general rule, we do not reimburse individuals or employees who personally paid for services.)

How do you know it is a 1099-applicable Account? Look in the Finance System, under General Ledger, ChartFields, Account. Select the 2nd tab (GL Account CU). The 1099 Applicable box will be checked, if appropriate.

Where do you go for help to determine the best Account chartfield value to use for a transaction? Questions on how to record expenditures and other financial transactions should be directed to your campus controller or finance office staff.

Frequently Used 1099 Accounts. Go to the PSC web site, www.cu.edu/psc, and click on Payable Services, Accounts Payable. In the upper right corner of the Accounts Payable page, you’ll find a link to Frequently Used 1099 Accounts.

1099 – What to do if your department receives a 1099

ACARD Purchases from State Contracts 

Q – Are ACARD cardholders required to make ACARD purchases from vendors under state contract, or can they buy that commodity from any vendor, say personal computers for example?  (02/04)

A – Cardholders are expected to make purchases from vendors that have State Price Agreements. The following excerpt is from the Procurement Card Handbook (page 22):

NON-MANDATORY PRICE AGREEMENT VENDOR. Cardholders are not to use the Procurement Card to purchase items that are otherwise covered by a mandatory price agreement. For a listing of goods and services covered by such agreements, go to https://www.cu.edu/psc/purchasing/downloads/WhoBuysWhat.xls

Any violation of using State Price Agreements must be reported to the PSC Purchasing Agent responsible for the commodity in question.

ACARD 

Q – What is the monthly cutoff for posting ACARD allocations or reallocations to PeopleSoft? (03/02)

A – ACARD to PEOPLESOFT - Timing 7/30/01 

Relevant Dates: 

Transaction Date - the date the vendor assigns the transaction. This date shows on all reallocation screens in ACARD. 

Post Date - the date the transaction was posted at our issuing bank, Bank One. This date shows on #2 -#4 reallocation screens in ACARD. 

Transmit Date - the date the transaction was downloaded to our ACARD system. This date does not show on ACARD screens but is usually the next working day after the post date. 

No transactions feed to Peoplesoft between the first day of the month through the 3rd working day of the month.

Un-reallocated transactions automatically feed to Peoplesoft under the cardholder's default speedtype and 553200 account code when the transmit date is 10 days old. Remember, transactions automatically fed to Peoplesoft must still be reallocated in the ACARD system.

Un-reallocated transactions that have a post date to the bank prior to the 25th of the month automatically feed to Peoplesoft under the cardholder's default speedtype and 553200 account code on the last working day of month. Remember, transactions automatically fed to Peoplesoft must still be reallocated in the ACARD system. 

Re-allocated transactions and re-edits (changes to reallocations) feed to Peoplesoft on the following schedule: 

when the reallocation or re-edit is done between the first day of the month through the 3rd working day of the month the reallocated or re-edited transaction feeds to Peoplesoft on the 4th working day of the month. 

when the reallocation or re-edit is done between the 4th working day of the month and the 24th of the month, the reallocation or re-edit feeds to Peoplesoft that night. 

when the reallocation or re-edit is done during the 25th of the month through the last working day of the month and the transaction has a post date prior to the 25th of that month, the reallocated or re-edited transaction feeds to Peoplesoft on the evening the reallocation or re-edit was entered. 

When the reallocation or re-edit is done during the 25th of the month through the last working day of the month AND the transaction has a post date between the 25th of that month and the last day of that month - the reallocated or re-edited transaction feeds to Peoplesoft on the 4th working day of the next month. 

If one or more transactions cause the batch feeding from ACARD to Peoplesoft to go into error status, the entire batch of transactions does not show up in Peoplesoft until the day after the batch is corrected by the Procurement Card Program Administration office.

ACARD – Paying for Services

Q – Can I use the procurement card to pay for a repair to our copier, for? (04/07)

A – It depends. If the vendor uses his or her Social Security Number (SSN) to report income to the IRS, then the procurement card cannot be used for services. Sole proprietors or “mom and pop” businesses often fall under this category, but not all the time: read on.

If the vendor uses an Employer Identification Number (EIN) then you can use the procurement card. An EIN is a nine-digit number that IRS assigns in the following format: XX-XXXXXXX. It is used to identify the tax accounts of employers and certain others who have no employees. Because EINs can be used by all types of business entities from sole proprietors to corporations, you should confirm with the vendor if they use an EIN.

ACARD - eBay PayPal Accounts 

Q – An old Q&A stated that purchases from eBay are not allowed. Still true? (updated 06/08)

A – No longer true. The terms and conditions that eBay purchasers using PayPal had to agree to was considered signing contracts on behalf of the University—definitely not allowed. However, the May 1 revision of the Procurement Card Handbook changed this and added: “For internet purchases, such as PayPal or Amazon.com, Cardholders may “click-through” or otherwise indicate agreement with online terms and conditions in order to complete small dollar purchases, providing they are not required to sign documents to complete the transaction. (As a matter of good business practice, cardholders should read the terms and conditions that apply to any transaction.)” As always, the purchase must satisfy all the other requirements in the Handbook and applicable PPSs such as Tests of Propriety and Sensitive Expenses.

ACARD Paying for Postage

Q – Can we use the ACARD to purchase postage? (03/02)

A – Yes. You can use the ACARD to purchase postage. However, in allocating the postage cost to your FOPPS, you cannot allocate postage to a sponsored project FOPPS (fund 30/31) unless that project is approved by Sponsored Projects Accounting to pay for postage costs. If your sponsored project FOPPS is not authorized to pay postage costs using the campus Mailing Services, then you cannot charge ACARD purchased postage to the project either. To do so would be a violation of Office of Management and Budget Circular A-21 and the Federal Cost Accounting Standards

ACARD Personal Expense Paid with Procurement Card

Q – One of our employees inadvertently made a personal purchase using her Procurement Card. The employee contacted the vendor who refused to credit the Procurement Card so instead she reimbursed the university with a personal check. Should this be treated as revenue or as a credit to expense? (11/08)

A – This is a case where the expense should be credited because the expense was not for official university business. Crediting the expense effectively cancels it out as if it didn’t happen—which it shouldn’t have. If the vendor was willing to credit the Procurement Card, the ACARD entry would also have resulted in a credit which would then be applied to the expense through the reallocation process. In this instance, the employee reimbursed the university for the charge with a personal check which should be deposited with a Cash Receipt that credits the expense.

In addition to reimbursement, the employee must immediately report the occurrence to the Approving Official. A copy of the check and Cash Receipt should be kept with the transaction documentation. In situations like this, a good choice of account code to use is 552635–Reimbursable Expense for both the original expense debit and offsetting expense credit.

ACARD Reallocation Mistake

Q – After reviewing my monthly statement, I discovered that a Procurement Card charge was reallocated to the wrong account. Can I fix it with a journal entry (JE)?

A – A mis-reallocated transaction is a transaction that has already been reallocated but now needs to be changed, either because it was originally reallocated to an incorrect Speedtype or Account chartfield or because the Speedtype or Account used has subsequently become invalid.

Depending on the situation, there are two possible ways to make the correction:

If the Speedtype and Account chartfield are still active (for both the debit and the credit), and if it is still the same fiscal year as the FY of the original transaction, then the change should be made in the ACARD System. This ensures an accurate paper trail for the transaction.

If the Speedtype or Account chartfield has become invalid since the initial reallocation, or if it is now a new fiscal year, then the change should be made in the Finance System using a Journal Entry (JE). Otherwise, re-editing a transaction from an invalid Speedtype will cause a batch error when the transaction is downloaded into Finance System.

ACARD Receipts 

Q – Do we have to retain the original ACARD receipts with the monthly ACARD Statement of Account? Or may we attach a copy of the ACARD receipt to the monthly statement and file the original ACARD receipt in the sponsored project folder? (11/03)

A – Per Kathe Graham, users may put the original ACARD receipt in the sponsored project folder and attach a copy to the ACARD monthly statement.

Account 699999

Q – What is the AP System-Maintained Default account 699999?  How is this used and what do I need to do if transactions hit this account? (11/01)

A – If a department sends an accounts payable transaction to the PSC using an account that is not allowed, such as a system maintained account, then the PSC will attempt to contact the department to get a valid account. If the PSC can't contact the department, they will process the transaction with the account on the voucher and the system will automatically default it into account 699999 - AP System Maintained Default. When this happens, departmental staff need to process an online JE to move the transaction to a valid account. Please make sure you process JEs to clear out any transactions hitting account 699999 in your FOPPS. This account must have a zero balance by year-end.

Accounts Not Listed on the Quick Reference Card

Q – Why aren’t the following accounts included on the Quick Reference Card?  (11/02)

            482603 – Telecommunication Equipment Rental

            482604 – Telecommunication Equipment Maintenance

            482607 – Telecommunication Toll Charges

A – The Controllers consider these User Option accounts and user option accounts are not included on the Quick Reference Card (QRC). The QRC includes only those accounts that departmental administrators are required to use at a minimum to classify assets, liabilities, revenues, expenses and cash transfers in coding departmental business transactions. The QRC does not include accounts that are:

• System maintained and not available for use on departmental transactions,

• Used primarily by staff in central administrative offices such as the Finance Office, Accounting Office, Bursar, System Controller, Treasurer, Contracts & Grants, etc.,

• User option accounts as requested by departments and approved by the University Controller’s Office.

Accounts Receivable Write-Off Approval

Q – What approvals are required before submitting a request to write-off accounts receivable to Central Collection Services? (08/02)

A – You should obtain the approval of the head of your unit – Dean, Director, Department Chair, etc.  Upon obtaining this approval, send the write-off request to the campus Controller. The Controller will review the request and follow up with any questions. If the the request is approved, the Controller will sign it and forward it to Central Collection Services for processing. The Controller has requested that Central Collection Services return to the requesting department any account receivable write-off requests that do not include his approval.

Accounts Receivable – Credit Card Chargebacks

Q – Do credit card chargebacks have to be submitted to Central Collection Services for collection?  (12/02)

A – No. The campus merchant will receive a "copy request" for documentation about a transaction. The campus merchant has 12 calendar days from the receipt of the request to provide the requested documentation. If the campus merchant fails to do so, regardless of the reason, the disputed purchase is "charged back" against the campus merchant's account. The campus merchant is thereafter forever precluded from attempting to collect that payment—period. Thus, we cannot send these items to Central Collection Services. If the campus merchant missed the deadline, they must write off the chargeback as a reduction of revenues. Therefore, campus merchants must use good business practices to ensure they can comply with this requirement and avoid writing off chargebacks.

Advertising vs. Sponsorships at University Events

Q – What is the difference between Advertising and Sponsorships at university events? (5/08 originally published in OUC Connections 5/9/08 issue.)

A – Advertising: A company that makes a contribution to a specific event is paying a fee to advertise and, therefore, can include promotional material that involves a “call to action” with respect to their company’s product or service. The company doing the advertising has no intention of receiving either a tax deduction or a gift tax receipt from the University. Company representatives do not attend the event, nor does the company receive anything other than the advertising itself for the fee. The org unit is subject to Unrelated Business Income Tax (UBIT) with this advertising activity.

Sponsorships: Sponsors pay a fee to display their company logo or name, but do not include any “call to action” wording relative to their product or service in their display (e.g., to call a 1-800 number). Generally, sponsors for Official Functions and Conferences do not receive any other good or service in exchange for their contribution (i.e., 100% of the sponsor fee goes towards displaying the name or logo). If there is any intent for the sponsor to receive a tax deduction or a gift tax receipt from the University, then the event the sponsor is supporting becomes a Fundraising Event. Similarly, if the sponsor receives anything as a result of the sponsorship (such as having company representatives attend the event, or receiving goods or services from the event), then the event is considered to be a Fundraising Event.

After-the-Fact Purchases

A – Purchases over $5,000 require the issuance of a purchase order by a PSC purchasing agent. It makes no difference that the purchase is for a single item costing over $5,000, or for many items totaling over $5,000. Shipping charges are included in the cost calculation. If you initiate a high-dollar (over $5,000) purchase yourself, you violate the ATF Purchases policy.

A – Individuals in the organizational unit order or obtain a good or service that a purchasing agent should have ordered for them.

A – Follow the procedures described in the ATF PSC Procedural Statement. Note that the procedures includes a list of campus contacts. Please confer with your campus contact prior to taking any action. The designated individual or office will help you work through the process.

The required documentation must be reviewed by the campus Chief Financial Officer (or delegate) and depending on dollar amount and circumstance, the State of Colorado Controller. They evaluate the situation that led to the ATF and decide whether to approve payment to the vendor by the University.

A – ATFs result in delayed payments to vendors who have, in good faith, provided goods or services to the University. Furthermore, the individual who initiated the improper transaction may be held personally liable for payment.

A – Be sure that everyone understands the ATF policy and that only the designated individuals initiate purchases on behalf of the organizational unit.

A – Contact the appropriate purchasing agent. Go here for a list of purchasing agents and the commodities in which they specialize.

Alcohol & Official Functions

Auxiliary Enterprises 

Q – What is an auxiliary enterprise? How do I know if I have one? Why should I care? (05/02)

A – NACUBO defines an auxiliary enterprise as an entity that exits to furnish goods or services to students, faculty, or staff, and that charges a fee directly related to, although not necessarily equal to, the cost of the goods or services. The general public incidentally may be served by some auxiliary enterprises. The distinguishing characteristic of auxiliary enterprises is that they are managed as essentially self-supporting activities. Examples are residence halls, food services, intercollegiate athletics, (only if essentially self-supporting), college stores, faculty clubs, faculty and staff parking, and faculty housing. Student health services, when operated as an auxiliary enterprise, also should be included. Every PeopleSoft program and project is assigned an Expense Purpose Code attribute. This is used to define the functional classification of all expenses of that FOPPS for our financial statements as follows. 

• 1100 - Instruction 

• 1200 - Research 

• 1300 - Public Service 

• 1400 - Academic Support 

• 1500 - Student Services 

• 1600 - Institutional Support 

• 1700 - Operation of Plant 

• 1800 - Scholarships and Fellowships 

• 1900 - Hospitals and Clinics 

• 2000 - Auxiliary Enterprises 

• 2100 - Internal Service Units 

• 2200 - Other 

The importance of knowing if a FOPPS is defined as an "auxiliary enterprise" is so that you know what revenue accounts to use for that FOPPS. Auxiliary Operating Revenue is one of the revenue lines reported in our financial statements. The NACUBO definition of "auxiliary enterprise revenue" is all revenue generated through operations of an auxiliary enterprise. Therefore, if a FOPPS is defined as an "auxiliary enterprise" (expense purpose code 2000), then the only revenue accounts that can be used for that FOPPS are 280000 - 289999, Auxiliary Enterprise Revenue. A word of caution: all of our 2x funds include the word "auxiliary" in their title. 

• 20 - Auxiliary-TABOR Enterprises 

• 26 - Auxiliary-Other Exempt 

• 28 - Auxiliary-ISU 

• 29 - Auxiliary-Non-enterprises 

That does not mean that all 2x fund FOPPS are auxiliary enterprises. Only those programs with expense purpose code 2000 are auxiliary enterprises. You can see in the Finance System the expense purpose code of the program in your FOPPS by navigating to: General Ledger > Chartfields > Program. Enter the program number and press the Search button. Select the Program CU Attributes tab and then locate the Exp Purpose Code.

Budget Check/Edit Check

Q – What is the PeopleSoft Budget Check and Edit Check step actually checking for? (07/02)

A – The Edit Check checks that you have used a valid combination of data such as fund/organization/program or fund/organization/project and fund/account combinations. Edit check also checks to make sure all values used are active. Since Expenditure Control was activated, the Edit Check also performs a preliminary resource check. The Budget Check checks to make sure that no account (asset, liability, revenue, expense, transfer) used on the transaction is a "System Maintained" account. System maintained accounts are not allowed to be used on journal entries, except that the cash transfer accounts 990000-994999 can be used on the cash transfer journal entry panels. After the journal is approved, the final resource check occurs.

Calling Cards 

Q – Can we purchase prepaid calling cards and get reimbursed for this purchase? (08/03)

A – No. The biggest issue with using prepaid calling cards is that there is no record of who was called and how much each call cost. So, there is no valid documentation to support this as official University business, and especially for charges to sponsored projects.

Cash Transfers

Q – What are the rules for transferring cash between funds? (05/02)

 A – Cash Transfer Table for CU-Boulder is a link to an Excel file containing a chart showing the allowable fund combinations for transferring cash. This was approved by the Senior Vice Chancellor and Chief Financial Officer and the Director of Budget and Finance on April 18, 2002, and updated December 2003. How to use this chart:

• On the left side of the chart find the fund you want to transfer the cash “From”

• Then look across the top of the chart for the fund you want to transfer the cash “To"

• If the intersection of these two rows says “Yes” then the cash transfer is allowed and can be processed using the online Cash Transfer panels (Fund 34 use the Gift Fund Journal Entry page)

• If the intersection of these two rows is empty, then the cash transfer is not allowed. 

Contact your area accountant if you feel you have a valid reason to make a cash transfer that the table indicates is not allowed.

ChartField Attributes

Q – What is the significance of the ‘Manager’ attribute on organization, program or project chartfields?  (08/01; updated 04/07) 

A – The Fiscal Roles and Responsibilities APS describes the various fiscal roles used in the Finance System. It is available on the Fiscal Polices website.

Checks made out to the CU Foundation

Q – We received a check from a donor but it is made out to the University of Colorado Foundation. Do we deposit this at the Office of Cash Management?

A – No, do not deposit the check at OCM. Per the Gift Revenues APS, checks made payable to CUF and all supporting documentation should be sent to the CU Foundation for proper recording (4740 Walnut St, Boulder, CO 80301 or Campus Box 57). Only checks made payable to the University of Colorado, the Regents of the University of Colorado, a campus, a CU Department, or a CU program can be deposited directly to the university through OCM as long as other conditions are met. You can find out the details on how to deposit gift checks on the ABS web in either a list format or a flowchart format.

Checks – Uncashed

Q – What happens to checks issued by the University that are not ever cashed? (07/02)

A – Please refer to Accounting Directive #95-1 Escheat Property Accounting Policy on the University Controller's website https://www.cu.edu/System_Controller/pol-pro.htm.

Checks/Financial Aid 

Q – We received a check today for $2,500 from a company and it is for a scholarship for a designated student. The check is made payable to the student and the University of Colorado. Should we endorse this check over to the student? If not, how do we handle this?  (03/02; updated 08/06)

A – No. Do not endorse the check over to the student. Work with the Office of Financial Aid and the Bursar's Office to deposit the check into PeopleSoft and apply it directly to the student's bill. If this check exceeds the amount of charges on the student's bill, then a refund check will be sent to the student. The Bursar's Office and Financial Aid will handle this check as a 3rd party payment of a student's bill since the sponsor has designated the student to receive these funds. Financial Aid must always be involved with scholarship payments received on behalf of students to ensure that all applicable regulations are followed.

Checks: ID Information that can be Recorded on Checks

Q – Our department makes occasional sales to students and the public. Can we record their driver’s license number on checks received for payment? (5/08)

A – Yes. you can record the driver license number on the check. For students, the student number definitely should be recorded. What you cannot record is a credit card number or a social security number on the check. However, you can request a purchaser to display a credit card as indication of creditworthiness or identification. It is permissible to record the type of credit card and the issuer of the credit card on a check (but not the number).

CIW (Central Information Warehouse)

Q – What's the CIW?

A – CIW stand for Central Information Warehouse. It's a database with data extracted from some CU administrative systems, including the Finance System (aka "GL" for General Ledger). See http://www.cu.edu/irm/CUonly/dwhse/. You can tell if your are using the CIW instead of PeopleSoft because most systems that retrieve financial data from the CIW require a User ID ending with "CIW" or an ID that is similar to your name, or use your Windows account. Examples of such systems are Web Based Reports - HTML Output (formerly known as "UCD Data Inquiry"), Kathy Phillips' PSLite, FishNet, and the Financial Reporting System (Cognos).

To get access to the CIW, please complete the Central Information Warehouse Access Request Form on the UIS web. If you already have CIW access but forgotten your password, call 303-492-9457 and select option 1 to get your password reset or if you have questions about your CIW account.

Clothing Supplied to Employees by Department

Q – My department has been kicking around the idea of supplying clothing with our logo to the staff and faculty. Can we do that with university funds? (02/06)

A – Yes, a department can provide articles of clothing—shirts for example—to employees with department logos. If the clothing is considered acceptable for street wear, then you have two options.

• If you allow the people to keep the shirts and the shirts are collectively valued at over $75, the total value is tax reportable on their W2.

• If you require the people to turn in the shirts when they leave, then there is no tax consequence to the employee. But you have to have a system to track who has shirts and ensure they are turned in when they leave. This would be part of your employee check-out process. If they are not turned in, then you would do the W2 tax reporting.

This does not apply to uniforms where State Fiscal Rule 2-8.07 allows for uniforms at no charge, at a reduced charge, or through a uniform allowance. However, the type of clothing discussed in this Q&A does not qualify as a uniform. A uniform is not an article of clothing commonly worn as street clothes. For example, our police officers would not wear their uniforms to be out in public in general. If an article of clothing is such that the logo would be acceptable to wear the clothing in general—to the store, PTA, Bronco game, etc.—then it is not a uniform. Also, uniforms are usually required to be worn. These articles of clothing frequently are not required, meaning if you show up to work without it you won't be sent home to put it on. 

Collection Costs

Q – What is the proper account to use to record collection costs? (02/03)

A – There are two accounts and it depends on who is providing the collection service.

553400–Administration & Collection Costs is used when paying an outside collection firm. This usually occurs only through the Bursar’s Office and with loan funds.

553412–Administration & Collection Costs–State is used when paying the State Central Collection Services.

Commencement Regalia

Q – One of our employees inadvertently made a personal purchase using her Procurement Card. The employee contacted the vendor who refused to credit the Procurement Card so instead she reimbursed the university with a personal check. Should this be treated as revenue or as a credit to expense? (11/08)

A – This is a case where the expense should be credited because the expense was not for official university business. Crediting the expense effectively cancels it out as if it didn’t happen—which it shouldn’t have. If the vendor was willing to credit the Procurement Card, the ACARD entry would also have resulted in a credit which would then be applied to the expense through the reallocation process. In this instance, the employee reimbursed the university for the charge with a personal check which should be deposited with a Cash Receipt that credits the expense.

In addition to reimbursement, the employee must immediately report the occurrence to the Approving Official. A copy of the check and Cash Receipt should be kept with the transaction documentation. In situations like this, a good choice of account code to use is 552635–Reimbursable Expense for both the original expense debit and offsetting expense credit.

Gifts – Faculty Gifts Restricted for the Faculty's Programs 

Q – May faculty make a gift to the University and restrict it to their own gift FOPPS to be used in support of their programs? (02/04)

A – Yes. These are still gifts to the University and may be made through the Foundation or directly to the university, per established policy. The gift must still be used only for official University business purposes and comply with all University rules and regulations such as the Propriety of Expense Administrative Policy Statement, and the Procurement Service Center Sensitive Expenditures policy. To ensure these gifts are considered to be "arms length" it is highly recommended that the faculty not be the only signatory on the gift FOPPS. He/she should have the Department Chair approve the expenditure of these gifts.

Gift in Kind – How to process

Q – One of our alumni wants to donate professional audio equipment (that we can really use!) valued at $25,000, is willing to help install it, and she’d like to receive income tax benefits for the donation. How should I handle this? (01/06)

A – This is known as a Gift In Kind (GIK) transaction because it involves a non-cash donation. GIK transactions route through CU and not the Foundation. In brief, the policy states that any GIK
■ valued at over $5000 or
■ attached to a written contract or agreement or
■ that is an addition to an existing collection valued at over $5000
requires
1. the completion of a GIK Acceptance Form and
2. the approval of the campus Controller prior to custody.

Donations of GIK valued at less than $5000 and not accompanied by a bilaterally executed written agreement are not recorded in the Finance System and do not require a GIK Acceptance Form (except a GIK of any value to Athletics is recognized, and GIK used for Recognition and Training awards is recorded–see following Q&A). Contact the Office of University Treasurer about a receipt to support a tax deduction.

A GIK valued at over $100,000 requires an appraisal paid for by the donor if the donor requests IRS Form 8283. If no Form 8283 is requested, the campus Controller may approve payment for an appraisal. For donor tax benefits, CU must receive the gift directly from the donor (not via the Foundation); the gift must be in good condition, and the university must use the gift for at least three years

If your department receives an offer of a gift in kind, consult the policy to be sure you are incompliance before accepting the gift or making any commitments. Direct any questions to the campus Controller. Follow this link for the Gift in Kind Administrative Policy Statement and GIK Acceptance Form.

Gift in Kind – Award or Prize Donation

Q – How should our department handle the donation of a tee shirt valued at $20 to be given away as an award or a prize? (04/07)

A – The tee shirt is a gift in kind, i.e. a non-monetary gift. The Recognition and Training PPS requires that all GIK donated for use as an award or prize is recorded by debiting the applicable expense code:
550105 – Performance Support Awards Non-Cash/Non-Employee
550106 – Performance Support Awards Non-Cash/Employee
550108 – Participant Prizes

The credit side of the journal entry should use revenue account:
240606 – Noncapitalizable (Note: the Recognition PPS currently identifies this account code as Gifts in Kind less than $5,000.)

Hand Drawn Express Warrant Pick-Up

Q – Can someone else pick up a hand drawn express warrant on behalf of the payee or PPL? (11/08)

A – Yes, but certain procedures must be followed. These procedures are not new—they have been in place for about 20 years. When hand drawn express warrants are requested by Payroll and Personnel Liaisons (PPL), the PPLs typically receive an email from the payroll administrator at Payroll & Benefits Services (PBS) when the check has been sent to be printed in the Office of Cash Management (OCM). When designating others to pick up warrants on behalf of the payee or PPL, the person picking up must have a printed copy of the email from PBS to the PPL along with the written authorization from the PPL approving the individual to pick up the warrant. OCM will verify the identification of the individual listed on the authorization with a Buff One card or government issued photo ID before releasing the warrant(s).
 

Holiday Parties

Q – Holiday parties used to be allowed by the university but I heard that is no longer true. What changed and what's allowed?

A – That all changed with the revised Sensitive Expenses PPS effective which removes Holiday Parties from the "approved" list. As a result, "holiday parties" per se are no longer allowed by the University of Colorado. However, staff appreciation meals are allowable. This could be a meal timed to coincide with a university holiday, but it cannot be called anything related to a holiday such as "holiday meal," "Thanksgiving party," "4^th of July Picnic," etc.

A – The Recognition and Training Activities PPS says that a staff appreciation meal is an infrequent, unique, official function that is hosted and attended by the head of an organizational unit for the purpose of showing appreciation to a continuing or departing staff member, or a group of staff members. Staff appreciation meals must adhere to the following:

1. Other than the meal itself, a staff appreciation meal includes no additional recognition awards, rewards, or prizes. (If it does involve any of these, it is considered to be an employee recognition event, and is subject to the guidelines stated in Section B of this PPS.

2. Approval procedures set forth in the Official Functions PPS and

3. If alcoholic beverages are served, then the Alcohol Purchase and Provision APS and related procedures must be followed.

Q – Can family be invited?

A – Immediate family and/or domestic partners can be included only if they have contributed to the success of the staff and can therefore rightfully share in the appreciation. Since it is generally thought that family support is a major contributing factor to work success, this would normally be allowable. It should be indicated in the business purpose on the Official Function form and suggested wording is, "Staff appreciation meal with the inclusion of staff immediate family members and/or domestic partners to recognize the support to the university." Having family attend more than one recognition event per year for an organization unit is unusual and would require further justification.

Q – We held a summer staff appreciation picnic. Can we have another one in December?

A – Remember that staff appreciation meals are infrequent, but that term is not defined in the policy, so other considerations come to the fore. Can the additional recognition be justified in the business purpose? Ultimately the Fiscal Principal must apply judgment and take into account the variety of factors that make an organizational unit successful in carrying out its mission. Care must be used so that employees are recognized for identifiable reasons and that this is perceived as infrequent both inside and outside the university.

Holiday Potlucks

Q – Since "holiday" parties labeled as such are not allowed, can we organize an informal employee gathering, which may or may not be held around the holidays, and that involves no direct expenditure of university funds? The most obvious example is the proverbial holiday potluck lunch. If we remove the “holiday,” can we still have the potluck? (11/06)

A – Yes, you can have the potluck and you can even keep the “holiday” part. This is not an official function, uses no university cash, and conducts no university business. It is an informal meal among staff. The use of university resources (email to announce, space to prepare and serve, etc.) is not material. People have to eat.

Honorarium vs. Payment for Service

Q – What is the difference between an honorarium and payment for service? (11/07)

A – An honorarium is a payment made to an individual as a gesture of appreciation, when no expectation or commitment existed for that payment. In limited circumstances, honoraria may be used to reward individuals for one-time services for which custom forbids a price to be set or where no expectation exists for payment for services. An example of this is a guest lecture. By definition, an honorarium is typically a transaction that is identified after a service has been provided. On the other hand, paying an individual for services is a transaction for which the service is agreed-upon and the fee negotiated in advance. If you have any agreement or commitment (verbal or written) to pay the vendor for the service or if you have told the vendor that you will do so – or if you know that the vendor would not perform the service without expecting payment – then this is not an honorarium.

An honorarium requires the Honorarium (HNR) form in amounts over $ 75, and the payment for service requires the Scope of Work (SOW) form in any amount. Both the HNR and the SOW forms require review and approval (signature) by your campus Human Resources office. SOW review must be conducted prior to any work being performed. See the Honoraria APS.

ID Revenue & Expense usage off-campus

Q – Should I use ID revenue/expense accounts for transactions between departments even when the departments are on different campuses? (08/09)

A – Yes, use Inter-Departmental (ID) accounts as long as the selling FOPPS is not an auxiliary enterprise or an Internal Service Center (ISC). Internal sales within the university are treated consistently whether the transaction takes place between departments on the same campus or between departments on different campuses. Auxiliary enterprises (Fund 20, Expense Purpose Code 2000) must use the revenue account range 280000–289999 in order to identify this TABOR-exempt revenue. ISCs (Fund 28, EPC 2100) must use revenue account range 380000–389999 for interdepartmental sales. For sales to entities outside the university or to Fund 80 (Agency) FOPPS, ISCs use miscellaneous revenue accounts 325000–334999.

All other FOPPS in Fund 10, 20, 26, or 29 that make occasional sales to other university departments—on the same campus or on another campus—must use ID Revenue account range 390000–395999 and the purchasing FOPPS must use an appropriate ID Expense account. ID Expense accounts appear in more than a single range in the Chart of accounts, but all are preceded by the “ID” designation.

The reason behind using these specific accounts is so the university does not inflate total revenue and expense that results from internal sales. For more on this topic, see Chapter 4 of the Guide.

Instructional Fees
Q – What is the proper accounting for Instructional Fees? (10/02)

A – Per the State of Colorado Higher Education Accounting Standard #2 issued by the State Controller, Instructional Fees are defined as those mandatory fees charged to students where the fee is directly related to specific instructional programs. This includes fees related to whole academic programmatic areas as well as to specific course fees. Examples of this type of fee are a lab fee (i.e., chemistry, anatomy), a microscope fee (when the microscope is required for a particular program or course), music fee, telecourse fee, physical education fee, and program fee, (i.e., school of business or college of engineering fee). These fees are recorded in the "Tuition and Fees" program code.

All instructional fees are accounted for in the general fund (fund 10) except for instructional fees charged by Continuing Education that are accounted for in their FOPPS in the Auxiliary TABOR Enterprises fund (fund 20). If the fee has been approved to be dedicated to a specific program, then an expense budget is set up for that program and the continuing expense budget is adjusted at various times during the year to equal the actual fee revenue collected.

Insurance

Q – How should I deposit the check from the insurance company to cover the loss of equipment or other property damage? (12/01) 

A – Insurance checks for a loss on equipment or other property damage should be deposited to a Renewal & Replacement plant fund (fund 72 or 78) into account 325400, Insurance Recoveries. You can then use the funds to replace or fix the property or use them for other purposes. Many people want to credit the insurance check against the cost of the replacement. That may seem logical, however it is not correct accounting. We actually have two economic events occurring here. The first is the loss of the property and the payment from the insurance company. The second is the decision to use the insurance proceeds to replace or fix the asset. Once we have the insurance check there is nothing that mandates we use it to replace the asset. We could choose to go without the asset and use the funds for something else. Therefore, proper accounting is to record these as two events.  Refer to the Revenue Definition and Recognition APS https://www.cu.edu/policies/Fiscal/index.html

Internal Service Centers

Q – What is the correct title to be used – Internal Service Center, Service Center, or Internal Service Unit? (01/02)

A – Internal Service Center. There is no absolute right title as all three are used within our industry. In order to facilitate communication, ABS has elected to use Internal Service Center at the official title.

Q – When is it acceptable for an Internal Service Center (ISC) to not record expense and interdepartmental (IN) revenue in providing services to a departmental customer? (01/02)

A – ISCs are established to provide goods and services to other University units, resulting in these units being charged an expense within their FOPPS. These are usually set up because of the efficiency or convenience of providing the services on campus rather than having to always use an outside vendor. Examples of ISCs are Copying and Printing, Mailing Services, Transportation Services, Chemistry Stores, and Telecommunication Services. ISCs will record all costs incurred to provide the goods/services such as cost of goods sold (inventory sold), salaries, wages, benefits, operating expense, travel, depreciation on equipment, etc. Interdepartmental revenue is recorded upon providing the goods/services to campus customers, including sales via the ACARD. Miscellaneous revenue is recorded for sales to private individuals and outside businesses including all agency fund (fund 80) sales.

ISC expense and IN revenue is not recorded only when the ISC is facilitating for a departmental customer the purchase of goods/services the ISC does not offer. A good example of this is in the Transportation Center (TC). There are some repairs that are beyond the scope of the TC. However, to provide good service to a campus customer, the TC will offer to facilitate procurement of the service from an outside repair shop. In this situation the TC can choose to record the expense and IN revenue as activity of the TC in the usual manner, or it can choose to record the expense as a pass through of the TC and have it recorded only as an expense of the customer department. If the TC chooses to show this as a pass through expense, the ideal situation would be to record the expense directly in the departmental customer FOPPS, and to not show it going through the TC records. If the TC were doing this for an outside customer, then the TC would always show an expense of the TC and miscellaneous revenue. It is improper accounting to credit the payment from the outside vendor as a credit to the TC expense.

Internal Service Center Equipment

Q – We have a piece of equipment that was purchased under a federal grant. The grant is concluded and the sponsor has allowed CU to retain title to the equipment. We would like to use this equipment in an Internal Service Center (ISC) to provide services to other departments, other federal grants and external customers. Can we use this equipment in the ISC and include depreciation on this federally purchased equipment as a cost of the ISC in setting our rates? (03/03)

A – Yes, you can use the equipment in the ISC, but no you can’t include depreciation expense in your rates. We raised this question at a National Council of University Research Administrators conference in February 2003. We were told that since the federal government had already paid for the equipment through the grant, they would not pay for it a second time by including depreciation expense on the equipment in the ISC.

Internet Expense Paid by University

Q – Can our department pay for the internet expenses incurred in an employee’s home or personal office if used exclusively for university business.

A – This issue was considered by the Office of University Controller who released the following policy on October 4, 2007 that becomes effective January 1, 2008:

Home internet service is not an allowable expense. Exceptions can be requested from the appropriate Vice President or Vice Chancellor for Finance for reimbursement that is temporary in nature due to changes in job requirements or personal status (e.g., access from remote location home while on sabbatical). This authority can be delegated to one person (per campus) via a written memo to the University Controller.

The reason for this is twofold. First, it ensures consistency among the campuses. Second, it recognizes that the IRS views this type of expense as personal in nature and therefore, if paid by the employer, it becomes reportable income to the employee.

Journal Entries

Q – Can we do journal entries between FOPPS on different campuses? (07/02)

A – Yes. You can process journal entries between campuses. These journal entries have to comply with all the rules for doing journal entries and the entry must be acceptable to both departments. This includes actual journal entries, cash transfer journal entries and payroll expense transfer journal entries. This does not include budget journals.

Journal Entry Approval

The program reads the payroll calendar table for the next unconfirmed (not processed) monthly payroll. This could be the current month, if the date the program is run is prior to the payroll processing for the month. Otherwise, it would be the beginning of the next month. 

The accounting period to be used is determined based on the date the process is being run.  The encumbrances are always entered into the current accounting period. No encumbrances are created in future accounting periods.

    II.      Selection of Employee Jobs and Benefits:

Jobs are selected from the job table based on the following criteria:

• Current approved job row based on the date the process is being run

• Employee Status is Active, Leave of Absence, Paid Leave or Short Work Break

• Employee type is Salaried -- this includes contract employees

• Paygroup is MON (Monthly) or RET, RNA (Retirees) or BW (the comp frequency must be Biweekly Salaried and not hourly).

Next, future-dated jobs are selected to see if there are any upcoming changes that would impact the encumbrance calculation. The same basic selection is used to find job rows, only this time the program is looking for rows with an effective date greater than or equal to the current date. This routine also looks for a contract with an effective date less than or equal to the effective date of the future dated job.

If the future row is a new job (or rehire) or if the appointment end date is different, the future job is loaded into the table with the current jobs. (Appointment end date for the previous job row is updated so length of jobs will not overlap and be twice encumbered.)

Benefit Enrollment Information is selected for each employee that has a non-taxable (employer-paid) deduction. This includes medical, dental, basic life, short-term disability (Classified Staff only), long-term disability (Faculty and Exempt Professionals only) and retirement (PERA or ORP).

Tax information is also collected for employees who are subject to FICA and/or MEDITAX.  Employees with jobcodes beginning with 32xx (Stipend and Fellowship employees) or who have jobcode 3110 are not processed for tax encumbrances. 

 III.      Create Encumbrances

A.     Get Funding Information for Each Position

The speedtype, distribution percentages, and funding begin/end dates for each position are retrieved from the Department Budget Table (created by bud013cu). If no funding is found on this table, the encumbrances will be made to the suspense account. Routines are used to determine the account and suspense chartfields, as they do in the actual payroll distribution process.

If the fund type is general and if the benefits are pooled, then the encumbrances are booked to the pooled accounts, instead of to the departmental accounts. 

B.     Determine Length of Calculation

If the fund is not equal to 30 or 31, then the encumbrance will be calculated to the earliest of the following dates:

• through the end of the fiscal year,

• through the funding end date, or

• through the end of the appointment. 

If the fund is equal to 30 or 31, then the encumbrance will be calculated to the earliest of the following dates:

• through the end of five years,

• through the end of  the project budget period,

• through the funding end date, or

• through the appointment end date.

C.     Salary Encumbrances

Each job selected where the employee is not on Leave of Absence or Short Work Break and where the compensation rate is not equal to zero is processed.

The encumbrance amount is calculated based on the monthly amount times the number of remaining months or for a biweekly salaried employee, the biweekly amount times pay periods remaining in the period.

D.     Benefit and Tax Encumbrances

Flat dollar benefits (medical, dental, basic life, and long term disability) are calculated using the amount of the benefit listed in the system table multiplied by the number of remaining months. 

Percentage benefits (short term disability and retirement) and taxes (FICA and Medicare) are calculated using the percentage listed in the system table multiplied by the amount encumbered for earnings.

Fringe rate encumbrances are calculated based on the pool factor from the allocation table (in the Finance system) and multiplied by the earnings encumbrance amount.  (For Boulder employees only.)

  IV.       Outstanding Issues

The payroll encumbrance process does not currently consider the following types of limits and future activity. If you have significant types of these transactions, you should adjust your encumbrance accordingly. We are looking at mechanisms to see if the process can accommodate these types of transactions.

-     FICA and 401a limits are not included in the calculations so that even if an employee meets the max on either FICA or 401a, an encumbrance will still be calculated.

-     For contracts, the current contract amount is being divided by the length of the contract to get the monthly amount to be encumbered.  This amount is multiplied by the months remaining to be paid in the contract to determine the encumbrance.  This doesn’t work correctly if the contract pay amount is changed during the contract.

-     Future-dated hires and terminations are not included in the current encumbrance process.

Any questions about the payroll encumbrance process should be directed to the appropriate campus controller, who will consult with PBS and University Controller as necessary.

Payroll Expense Transfer Reversal

Q – What is the required procedure to reverse a payroll expense transfer? (03/03) 

A – In order to reverse a Payroll Expense Transfer (PET) you have to use the PET process to create another PET to offset the first PET. Do not use the Copy Journal process with the Reverse Signs box checked. This process does not work with PETs. Consult HRMS Step-by-Step Guides for more information https://www.cu.edu/pbs/sbs/.

PeopleSoft Error Message

Q – Sometimes I get the following PeopleSoft error message when I am running a report in PeopleSoft – ‘Only PeopleTools associated with the initial signon are allowed to schedule processes’.  What does this mean and what do I need to do? (12/02)

A – This usually means that you have opened more than one PeopleSoft database and in the wrong sequence.  If a person signs on to any database other than the reporting database and then signs on to the reporting database the first database they signed on to is the initial signon and the reporting database is the secondary signon. Under these circumstances the person will not be able to submit reports in the reporting database. This is a limitation of the system and can not be modified. The simple solution is for the person to sign on to FIN Reporting first and then sign on to FIN Production or HR Production. Or they can close all active sessions and reopen the sessions keeping in mind that the first session they open should be the one where they intend to execute processes or reports. The first session opened will be the initial signon. 

PeopleSoft Finance Security Access

Q – May we provide our employees (including student employees) PeopleSoft Finance inquiry access based on the training we provide them, or do the employees have to complete the three day PeopleSoft Basic Training to obtain inquiry only access?  (09/02)

A – Employees (including student employees) may be provided PeopleSoft Finance inquiry access based on the training the department provides them, and they do not have to complete the three day PeopleSoft Basic Training to obtain inquiry only access.

PeopleSoft Finance Security - Temporary Employees

Q – May temporary employees have access to PeopleSoft Human Resources as well as the PeopleSoft Financial system? (12/02)

A – Yes, as long as they have been authorized by their department head and have completed the required training.

Petty Cash Fund

Q – I am new to the position and it is responsible for a petty cash fund. Where can I find policies and procedures for administering petty cash funds  (11/01; 04/07; 03/08)

A – A good place to begin is The Guide, Chapter 10, Cash Control. Scroll to Section VIII of the Chapter Petty Cash Fund. Also see Petty Cash in the A-Z index for more learning resources.

Petty Cash Used to Pay for Gasoline

Q- May I use petty cash to pay for gas for someone to drive their personal vehicle on university business? (04/04)

A – No. Using a personal vehicle to drive on university business is travel, and travel is an unallowable item for using petty cash funds. Anyone who is paid for using their personal vehicle needs to file a travel voucher. They will then be paid the current rate per mile to cover the cost of using the personal vehicle, including the cost of gasoline. It is also possible to reimburse at a lower rate, if this is agreeable with the individual driving the personal vehicle.

Phone Cards for Long Distance

Q – Are we allowed to purchase phone cards with the Procurement Card to give out to staff and faculty to use for long distance phone charges? This would be used in place of the long distance access codes issued to campus users by ITS-Telecommunications department. (03/03) 

A – Per Kathryn Graham at the Procurement Service Center, the Procurement Card Program will not allow you to purchase any phone cards where there is no itemized billing of the long distance charges showing the number the call was made to and from as well as the total time and total charges. The purchase of the phone cards where there is no itemized billing does not provide sufficient documentation as to whether calls were personal or business. There is not sufficient accountability to provide a reasonable balance of the risk with the control. ITS has been contacted and they do not recommend the use of phone cards in place of the long distance access codes based on 1) the cost to a department for the long distance access includes the rollup and administrative time and effort to manage the billing while providing itemized information to the department and 2) auditing concerns, particularly with grant funds…again, where is the balance of risk and control to provide sufficient accountability.

Pooled Investment Earnings

Q – What is the Pooled Investment Earnings or PIE charge and how is this computed? (02/03)  

A – PIE is a charge caused by certain FOPPS being in cash deficit on a daily average for a quarter. The cash deficit reduces the total amount of cash available to the Treasurer to invest and reduces the interest earnings of the university. Therefore, FOPPS are charged PIE to replace the lost interest earnings.

All FOPPS in funds 2x, 7x and 80 are subject to PIE. The cash balances of all FOPPS of a single organization within the same fund (except fund 28) may be aggregated to calculate one average daily cash balance for that organization. This is accomplished by selecting one speedtype of the organization and assigning that speedtype as the PIE attribute to all the speedtypes of the organization in the fund. The daily cash balance of the FOPPS is averaged for the quarter. If the quarterly average is a deficit then the PIE speedtype is charged PIE interest expense in transfer account 997102 – Voluntary transfer out within campus-PIE. 

For fund 28 FOPPS, Federal cost principles prohibit the use of a surplus in one Internal Service Center to fund the deficits of other Internal Service Centers or other operations. They also require that any interest earned on the investment of Internal Service Center cash balances be returned to the Internal Service Center as an applicable credit, thereby reducing their rates. Therefore, we cannot combine an individual fund 28 Internal Service Center FOPPS cash balance with any other cash balances. If we did combine these cash balances, the Internal Service Center positive cash balances are reduced thereby reducing the interest income allocable to those Internal Service Centers. This results in an increase in their rates that are then charged to Federally sponsored projects. 

The only exception to this rule is where one Internal Service Center has a number of fund 28 FOPPS used for internal management of the single Service Center. For example, if Imaging Services had more than one fund 28 FOPPS to manage Imaging Services, those cash balances would be combined. The basis for this exception is that there is one Internal Service Center and the multiple FOPPS are all for same Internal Service Center.

Private Property Destruction Reimbursement

Q – One of our employees accidentally broke the sunglasses of a guest during a meeting on campus.  Is the University liable to replace the broken sunglasses? Would this be covered under our insurance? (01/04)

 A – Generally speaking, personal property not in the care, custody or control of the University is excluded from insurance coverage. Therefore, the University is not liable to replace the sunglasses.  The employee who broke the sunglasses or the department head may elect to make a reimbursement, but the University is not obligated. All insurance questions should be referred to the Office of Risk Management.

PSLite Error Message

Q – I changed my password for the Finance System and now I get an “ODBC--call failed” error message in PSLite. What should I do? (3/08)

A – That error message usually indicates an incorrect password or user ID. On occasion, the password must be changed twice before the system recognizes it. Try logging out of PS and PSLite and changing your password again. Make sure all the boxes are checked in the self-service password P-Synch system. 

Rate of Exchange

Q – What is the proper account to use in recording gains and losses on rate of exchange conversions when valuing the June 30 balances in foreign bank accounts. (01/02)

A – This situation only applies to International Education which has been authorized to use foreign bank accounts to administer international programs. At the end of each year International Education must convert the foreign bank account balance into US dollars and this can result in a gain or loss due to a change in the rate of exchange since the last conversion. These gains and losses shall be reported in account 231102, Unrealized Currency Gain/Loss. These gains and losses are not realized at this point. They merely reflect a change in the balance sheet value due to a change in the rate of exchange. They would be realized gains/losses if we actually withdrew the funds and converted them to US dollars at the current rate of exchange.

Recognition Policy Template and Grid

Q – Is there a template that we can use to write up our Employee Recognition program in compliance with the Recognition and Training PPS?
A – No, there is not a template per se. However, the bulleted points in the Procedural Statement section B.1 (Employees) or C (Non-employees) can serve as an outline for your written program. You can format it as you choose.

Q – Is there an easy way to figure out the Recognition policy requirements?
A – ABS expanded on the grid used in the policy to include non-employees and also to clearly identify program, form, and tax requirements. This grid may help. On the ABS web, under R – Recognition Grid.

Recognition Awards: Gift Cards

Q – Our department is planning to give away $5 iTune cards and $5 coffee coupons to students who complete a survey. Is this considered cash-like or non-cash since it can only be used for iTunes or coffee which, if we could give these away directly, would be non-cash. (03/07)

A – This falls under the participation category of the Recognition and Training PPS. The PPS states that, “Cash-like refers to an item, such as a gift certificate or a gift card, which can be used in place of cash to purchase goods or services.” Gift cards, certificates, or coupons that are redeemable for products or services are considered cash-like by default. Exceptions may be granted on a case-by-case basis depending on the circumstances. Any exceptions must be approved by the Associate Vice President and University Controller who renders a decision based upon a written request that describes the coupon/card it is handing out along with an example. Contact your area accountant if you think this might apply to your situation.

Recognition Awards: Massages

Q – Our Residential Academic Program (RAP) voted to honor and thank our hardworking custodial staff with chair massages. We paid $100 for this service to benefit the custodial staff of five employees. Is this cash-like or non-cash and what are the reporting or programmatic requirements? (03/07)

A – This falls under the Merit category of the Recognition and Training PPS. It is non-cash because the massages were given at the residence hall, as opposed to a certificate that could be redeemed elsewhere. For employees, non-cash awards valued at $100 or more require the Revenue Recognition form and an approved formal recognition program. But because this $100 was effectively split among five employees, the value to each employee was less than $100. Thus neither a recognition program nor a revenue recognition form is required, assuming that other recognition events are not planned that could push the calendar year amount to $100 or more for each employee.

Recruitment Costs

Q – Our department hosted a recruiting weekend for prospective grad students that included a ski trip to Eldora. Is this an allowable expense? (5/08)

A – A ski trip is normally not an allowable recruitment expense. The Sensitive Expenses PPS item #17 Recruiting Costs for Prospective Employees/Students states that recruitment activities must be directly related to the work position or field of study. Social activities outside of meals that do not highlight the academic program or the work position do not meet the test. There must be a clear and direct connection between the activity and the area of study/work. Anything outside of this is a personal expense and is not reimbursable by the university. However, exceptions may be authorized by the appropriate officer and should be obtained in advance of the expenditure.

Report with Fiscal Roles and Reports To Info for Entire Org

Q – Is there a report I can run for all of our org’s speedtypes that shows the fiscal roles in the Finance System and the “Reports To” data in HRMS? I want to verify that these are complete and correct.

A – Yes, and this is a good practice to do periodically because accurate information is needed for several key university business processes including the coming Expense System. For Reports To data, run the Department Org Report in either HRMS Reporting or Production. It lists all employees in an org with each employee’s “reports to” and appointing authority. Navigation is Home > Reports and Reviews > Job Information > Department Org Report.

To find the fiscal roles for your org’s speedtypes you can use PSLite. From the top of the PSLite home page, click the ORG TREE button. Enter your org # in the ORG field and then select FISCAL ROLES from the menu in the ALL FUNDS column. If you have more than one org on the same node, you can enter the node # in the NODE field, click UPDATE, and then select FISCAL ROLES from the menu in the ALL FUNDS column. This creates a report that shows the org officer, principal, and manager and lists all the org programs’ principals, fiscal managers, and fiscal staff. Send any program fiscal role corrections to accounting@colorado.edu.

Reports − Printing Multiple Reports at a Time

Q – Can I can print our monthly reports all at once, rather than individually?

A – At this time, you cannot print all of your reports with a single click of the mouse. However, there are a few ways to print more than one at a time.

In the portal, you can make multiple selections in the right-most dropdown box in the 2nd channel by holding down the Shift or Ctrl key while selecting with the mouse. You can rearrange the order of the columns so, for example, you could print Revenue and Expense Statement Details for all your speedtypes if you moved ID-Description to the right-most position. Instructions on how to rearrange the columns are in the portal just above these columns.

In the Reporting System (Cognos) after you select the report type (Balance Sheet Detail for example) you can select Org/Org Node and the report will include all the STs and will break by ST. If all your STs are not in the same org, you can choose Speedtype(s) and enter them all in the ST search box. If you do the same list repeatedly, you can save a list in Word and paste the list into this box. Because STs entered into the search box must be separated by a space, the ST list in Word must be maintained as text in rows separated by a space. You can also keep the list in Excel in a row, select and paste this into Word as text, and then paste into the search box. Select PDF output.

Reports that Consolidate Subclasses

Q – Our department uses subclasses extensively in our business. The Reporting System creates reports broken out by speedtype, which is fine if we want to look at that particular subclass. But we also need to look at the program as a whole that includes all the subclasses/speedtypes. Is there a report that does this? (11/07)

A – As you have noted, currently the Reporting System only breaks reports by speedtype. For example, a report run by program that has three subclasses will produce three separate reports as opposed to a single consolidated report for the program. There are plans to create a report that can aggregate data on categories other than speedtype, but that will not be available until next year.

If a report is not yet “live” in the Reporting System, it can still be run in the Finance System. For example, the Summary of Financial Transactions aggregates all the speedtypes in the program or project. The downside is that this takes time and it leaves off the Amount Available.

Another option is to use the various PSLite reports and run them at the program or project level. You can also try the Subclass Crosstab report, which shows the program total along with the subclass totals. You should plan on exporting this report to Excel to use it effectively (Tools→Office Links→Analyze with Excel).

Bear in mind that the Reporting System is the official system of record for the university. Any other reports should be considered adjunct management tools. They are not substitutes for official financial statements.

Revenue (Self-Generated)

Q – What is the correct fund to use to account for departmental self-generated revenue? (05/02)

A – Departmental self-generated revenue, sales of goods and/or services to parties external to the University, shall be accounted for in a 2x fund as appropriate for the type of revenue.

Fund 20 – For all revenue of designated TABOR Enterprises

Fund 26 – For royalty revenue and fixed price contract residuals

Fund 28 – For designated Internal Service Centers

Fund 29 – For all other departmental self-generated revenue

Departmental self-generated revenue shall not be recorded in the general fund (fund 10), grants and contracts (funds 30/31), gift fund (fund 34), or renewal and replacement plant funds (funds 72/78). This was clarified with the Senior Vice Chancellor and Chief Financial Office, and the Director of Budget and Finance on April 18, 2002.

Revenue vs. Profit; Self-Generated Revenue; Avoiding GAIR

Q – My department sponsored an event that included the participation of an outside organization. The room rental cost $482 and the UMC charged that to our Fund 10. The outside organization then sent us a $482 check as payment for the room. Since we didn’t earn any revenue because we didn’t make a profit, should we just credit the expense? (08/06)
A – No. The Revenue Definition and Recognition APS states, “Revenues are inflows or increases in financial resources of the university from delivering or producing goods, rendering services, or other activities that constitute the university’s operations.” It doesn’t matter if you sold at a profit, a loss, or in your case, broke even. Profit and revenue are not the same thing, although there is a connection between them. Profit is the excess of revenues over outlays in a given period of time. If you sell something, you earn revenue. Therefore, this does not qualify as an expense credit. You earned revenue and must enter it as revenue.

Q – Do I enter the revenue to my Fund 10 where the expense is? (08/06)
A – No. Fund 10 is limited primarily to revenues generated from State appropriations, tuition, instructional fees, administrative student fees, and some student activity fees. The campus keeps these revenues separate and clean from all other sources of the campus. Departmental self-generated revenue, such as the room rental revenue, should be recorded in a 2x Fund.

Q – But isn’t everything we do to earn revenue really self-generated? I mean, we have to do something to get money. What’s the difference? (08/06)
A – If you look at the sources of revenue for Fund 10, they are the result of one of our core activities: education of students. All of Fund 10 is essentially managed as one large operation. The money that the university receives for this is pooled at the campus level and then expense budgets equal to the revenue budgets are allocated internally to keep the whole operation going. This ends up as expense budget in your Fund 10. So yes, you do have to perform your normal departmental functions to receive this budget, but that’s because the university considers those as necessary functions to run the university business. But when your department gets paid for doing something outside of and in addition to this process, that’s considered departmentally self-generated revenue.

Q – OK, we have to record the revenue in a Fund 2x. Can we leave the expense in Fund 10 to avoid GAIR? Otherwise it seems like we get penalized. (08/06)
A – Preferably, expenses and revenues that result from the same business activity are posted to the same FOPPS. This matches costs with revenues. The $482 room rental cost is clearly identifiable and makes this relatively easy to do. If the expense is moved from Fund 10 to 2x, that frees up Fund 10 budget. If the expense stays in Fund 10 while the revenue is put in Fund 2x, eventually that revenue will be spent on something and you’ll pay GAIR at that time. Either way, you’ll pay GAIR.

The Fund 10 budgeting process funds the cost of the university administration and common services that support the generation of fund 10 revenues. The Fund 2x group falls under auxiliary and self-funded activities. The term self-funded indicates those operations should cover not only the direct costs of the operation but also a share of the indirect costs that support those operations. GAIR is designed to allocate a portion of fund 10 university administration and common services to recognize the support provided to the self-funded operations of the campus.
 

Royalty Income

Q – In what fund do we account for royalty income? (05/02)

A – Royalty income is exempt from TABOR reporting and is accounted for in fund 26 – Auxiliary-Other Exempt for most departments. Departments that have been designated a TABOR Enterprise will account for their royalty income in fund 20. Fund 29 is not exempt from TABOR and cannot be used to account for royalty revenue. We had not adhered to these rules prior to TABOR and the University Technology Transfer Office and the Treasurer’s Office are working with the University controllers to help ensure that royalty revenue is accounted for in fund 26. So, while you may have accounted for past royalty revenue distributions in some fund other than 26, you will now need to use a fund 26 FOPPS for all future royalty revenue distributions. Contact your area accountant if you need assistance setting up a fund 26 FOPPS for this.

Salary Expense Accounting 

Q – How is the salary expense account determined?  (11/03)

A – After each payroll is run, the payroll and benefit journal entry is built and fed to the PeopleSoft General Ledger. This interface process uses the following information to determine the salary expense account for each person and type of pay: · Job Code · Earnings Code · Percent of time appointment - full-time or part-time · Regular or temporary position. This logic is laid out in the Expense Table available on the PBS website https://www.cusys.edu/pbs/hrms/ps/tables.html. Click on System Tables, then click on the Expense Table. Refer to the tab titled Budget Earnings Table.

Salary Overpayments

Q – I just discovered that one of our employees has been overpaid. What should I do? How will the salary repayment affect the benefits charged to my FOPPS? (11/02)

A – You need to contact Payroll & Benefit Services (PBS) and work with them to recover the salary overpayment from the employee. By working with PBS they will ensure the payroll expense is properly credited after receiving repayment from the employee. Whether the benefit expenses will be credited depends on when the overpayment is detected and reported to PBS. Taxes and retirement will always be credited. Insurances will only be credited if the overpayment is identified within the time allowed by insurance companies to recover errors. If we cannot recover the overpayment from the insurance company then CU must retain that expense. If the overpayment error was on a sponsored project, then the insurance cost must be moved to another non-sponsored project FOPPS of the department. Worker’s compensation, unemployment compensation and annuitant’s insurance are administered by a PeopleSoft allocation process and will be credited when the salary expense is credited. 

The above assumes a return of 100% of the salary. If the overpayment is only partial (the employee retains some payment for the pay period and returns only part) then only those expenses driven as a percentage of pay such as taxes, retirement, worker’s compensation, unemployment compensation and annuitant’s insurance will be reduced. Those expenses that are a flat amount for qualifying employees such as insurance, will not be affected if the employee still qualifies to receive those benefits.

Sales Tax Charged to University Purchase

Q – Our department purchased a computer with the Procurement Card from a vendor that would not remove the sales tax charge even though we explained that we are tax exempt. How do we handle this?

A – The Procurement Card Handbook requires Cardholders to inform each merchant of the University’s status as a tax-exempt organization, which you did. If the vendor insists on charging sales tax even after being given documentation of our tax exempt status, on the procurement card receipt explain that the vendor was notified of CU’s tax exempt status but still refused to remove the sales tax from the purchase. Include any other additional documentation (e.g. email exchange, phone call details, etc.) to support this occurrence and keep the receipt with your monthly card statements. For future purchases, consider using a different vendor that honors our tax exempt status.

Sales Tax Exemption of the University

Q – What do I need to provide to vendors to show that the university is exempt from paying sales tax on purchases made for official university business? (07/08)

A – As a public institution of higher education of the State of Colorado, the University of Colorado (CU) is exempt from all federal excise taxes and from all Colorado State and local government sales and use taxes. In addition, CU is exempt from sales and use taxes levied by select other states – namely, New Jersey, New York, Tennessee, and Texas. Vendors who need verification of CU’s tax-exempt status can view the Tax Exempt Status page. In many cases, printing out and supplying a one-page Tax Exempt Status sheet for your vendor will suffice.

If your vendor asks about a specialized tax-exempt certificate form, direct them first to the Quick Links (grey box) in the upper right corner of the above Tax Exempt Status page. Currently, there is a link to the Multi-jurisdiction Sales Tax Exemption Certificate (Texas & Colorado). Additional links to other specialized certificates will continue to be added.

Vendors who cannot use any of the certificates already published on the web should fax or email their own forms to the Finance and Procurement Help Desk: (303) 315-2795 or FinProHelp@cu.edu. The Help Desk will work with the Associate Vice President and University Controller to determine the appropriate form and obtain signatures, and then return the form to the vendor. (Note that many of these alternative certificates are specific to the situation and therefore require additional information about the purchase – the organizational unit or the vendor should provide this. Contact FinProHelp if you have additional questions: (303) 315-2846. (See related Tax Information for Vendors and Donors.)

Sales Tax on Giveaway Items

Q – I heard that items our department gives away for promotional purposes, such as t-shirts or water bottles, must have sales tax paid on them. Is this true? (5/08)

A – No, the university is not subject to sales tax on giveaway items. The Colorado Department of Revenue publishes a series of publications called FYI – For Your Information on several revenue areas, one of them sales tax. Publication #32 titled Gifts, Premiums and Prizes states, “Purchases of tangible personal property for use as gifts, premiums or prizes, for which no valuable consideration is received from the recipient, are subject to tax on the total purchase price; the purchaser is deemed to be the user-consumer of such property.” The university is considered the end user-consumer, so it is treated the same as other purchases used for university business and is not subject to sales tax. You must use regular procurement methods for these items, not reimbursed personal purchases.

Sensitive Expenditures

Q – The Propriety of Expenses APS, the Official Functions PPS and Sensitive Expenses PPS have generated a number of questions from the departments. The following are examples of the questions received by ABS and our response to those questions. We hope this provides additional guidance to the departments in making these expenditure decisions.  (09/03; 11/03; 04/07; 03/09)

A – The following are Q&As received by ABS on sensitive expenditures. The references cited are to the PSC Sensitive Expenses PPS matrix and are the basis for the ABS response.

1. Food for meetings of student societies (usually pizza or box lunches). Answer: Allowable as a student function related to student or educational development 9.d.vii. Official Function PPS applies.

2. Food for student society banquets, initiation dinners (usually three per year). Answer: Allowable as a student function 9.d.vii. Official Function PPS applies.

3. Student welcome barbeques, picnics, ice cream socials for new members. Answer: Allowable as a student function 9.d.vii. 

4. Dinners off-campus with student faculty advisors. Answer: If students are attending then this is allowable as a student function 9.d.vii. If this is only departmental employees discussing departmental business, then it is unallowable because this is considered a normal workday-type function that could be held during regular business hours.

5. The department wants to host an event to name a seminar room after a deceased individual as an honor. Answer: Allowable as a goodwill function 9.d.iii. Official Function PPS applies.

6. Food for a department retreat. Answer: Allowable as an Employee Training event 7.a if this is truly an infrequent planning retreat. If this is a regular departmental business planning meeting, then it is unallowable. Official Function PPS and Recognition and Training PPS apply.

7. A department may recruit student volunteers to help move stuff (furniture, equipment, etc.) rather than incur the time and expense of hiring an outside firm. The department will compensate the students by buying them lunch/dinner (pizza, sandwiches). Answer: Allowable as an honoraria if the students are agreeing to help out for free and you elect to honor them (honorarium) for their contribution with a meal. See Honoraria APS. If it is a negotiated agreement then you have pay for service through a barter arrangement. Barter arrangements should be documented in a contract and you should get Legal Services approval of the contract. These should also be booked as revenue and expense and may have to be reported to the IRS. It is best to avoid barter arrangements.

8. Lunch for faculty and non-faculty members that come together over the weekend (8 hours) to judge films. Answer: Allowable as an official function as long as film judging qualifies as official university business. Official Function PPS applies.

9. Department chooses to have a once a year party at the end of the school year, or a beginning of the year picnic rather than on an officially observed holiday. Answer: Allowable as an employee recognition function 7.c.i. Recognition and Training PPS applies.

10. An NSF grant includes workshop luncheons for Chairs across the campus and token gifts - pens and mugs. Token gifts are going to University employees. The grant doesn't specifically provide for these items, but the PI could request backup from NSF agreeing that these expenses are reasonable. Answer: First of all, make sure that you have documented approval from NSF that these are allowable expenditures of the grant. Luncheon is allowable as a multi-unit unit event 9.d.vi. Gifts or tokens for employees valued at less than $100 (individually or in aggregate per person per calendar year) are allowed under 10.a. Gifts or tokens for non-employees are allowed under 10.b and 10.c. Recognition and Training PPS applies.

11. External companies visit the department to do recruiting events for graduate students. The department orders the food through CU and pays for it out of their gift FOPPS. The external companies reimburse the department for the costs. The department deposits the check back into the gift FOPPS crediting the expense. Answer: The purchase of the food is allowed as a student function under 9.d.vii assuming this activity is allowed by the donor restrictions of the gift FOPPS. However, incurring an expense (food) to be reimbursed by an outside entity is a violation of the Revenue Definition and Recognition policy. Payments from outside organizations may only reduce our expenses under very limited circumstances described in the APS Revenue Definition and Recognition and this is not one of them. The department should either stop this practice or deposit the payment from the outside companies to a fund 29 FOPPS and use that to pay for the food—essentially, providing this service to the outside companies for a fee. Please refer to Expense Reimbursement or Revenue Q&As. 

12. Lunch with new faculty across the campus to orient them to a specific program. Answer: Allowable as official function 9.d.vi. 

13. Graduate students lunching with colloquium speakers (non-university employees). Answer: Allowable as a student function 9.d.vii. 

14. Food at colloquium or seminars with outside speakers (non-university employees). Answer: Allowable as an official function 9.d.vi.

15. Faculty having dinner with outside speakers. Answer: Allowable as an official function 7.d.vi.

16. Award ceremonies for students. Answer: Allowable as an official function for student educational development and 9.d.vii.

17. Award ceremonies for employees. Answer: Allowable as an employee recognition event 7 and 9.d.ii. 

18. Dinner honoring an employee (faculty) for outstanding contribution. Answer: Allowable as an employee recognition event 7 and 9.d.ii. 

19. Dinner for employees attending a lengthy working meeting after hours. Answer: Generally not allowable because this should normally be considered and scheduled as a regular workday-type function, not an Official Function (9.a). However, other factors may apply and can be taken into consideration such as meetings that: 1) involve multi-units (9.d.vi); 2) cannot be effectively scheduled or completed during normal business hours; 3) are non-routine and infrequent; 4) involve urgent university business. Consult your area accountant if you are not sure.

20. Food provided at a conference hosted by CU. Answer: Allowable as long as the food is covered by the conference registration fee. 4.a.

21. A non-cash token for a non-employee to recognize unpaid volunteer work done for the department.  Answer: Allowable under 10.c.

22. Bottled water service for the office. Unallowable under 9.a. as food and related consumable items for the employee’s personal consumption. However, this is allowable under 9.c. if it is a beverage service available in the general public area or reception area of a Department hosted by a University employee at or above the Chair or Director.

Sensitive Expenditures - Meals with Colleagues

Q:  A few colleagues from other universities traveled to CU for meetings and/or grant research purposes. A departmental faculty member took these visiting colleagues out for dinner to continue their meeting. Is this allowed? (01/05)

 A.  This is considered allowable under 9.d.vi in the Sensitive Expenses PPS matrix. These visiting colleagues were associates of CU, the meeting was an infrequent occurrence, and the meeting involved participants from more than one entity, operating unit, or campus. In general, meals with only employees or associates for the purposes of discussing work are not allowed for official functions, per 9.a. Note that official function expenditures are usually unallowable costs to sponsored research projects.

Sensitive Expenditures - Notary License

Q – Can we use university funds to establish someone as a notary and also for the cost of maintaining the annual notary license? (4/05; updated 04/07)

A – The Administrative Policy Statement on License and Certification Fees, Memberships, or Dues, states: "University funds should not be used for a license or certification that does not benefit the University and is solely for the professional development or advancement of an employee. Benefit to the University is measured through the receipt of support or information, as a result of having the license or certification, which is necessary to accomplish or foster the educational, research, or public service mission of the University."

It states further:

1. The license or certification is required for university employment. Note: “Required for university employment” means that the license or certification is indicated as a mandatory criterion for employment, not as a preferred criterion or an absent one.
2. There must be an equitable provision of the licenses or certifications throughout the organizational unit.
3. There is a reasonable expectation that the license or certification will be used solely for the purpose of providing services to the University, and not for providing services to others for a fee or other compensation. Organizational units should inform employees that if a license or certification paid for by university funds is used for anything other than university business, then the additional compensation generated by the license or the certification, or the value of the license or certification fee (whichever is less) must be reimbursed to the University.

So, if a department can make the above representations relative to the notary license, then using university funds for its set up and maintenance is allowable. The important point is that the notary license be used for university business only.

Sensitive Expenditures - Recognition Awards

Q – The student government from one of CU-Boulder’s colleges wants to buy a small gift for its graduating members using student fee dollars. Is this permissible? (04/05)

A – Yes, this is permissible. The PSC Procedural Statement (PPS) on Recognition and Training Activities addresses recognition awards for associates or other individuals, which includes students.

If you will only be giving token gifts – valued at $100 or less – and if recipients will not receive more than $100 worth of these gifts within a calendar year – then you do not need to establish a formal recognition program. For non-employees, the program must be approved (authorized) by the fiscal principal of your organizational unit.

Most departments attach the initial documentation on the recognition program to the Recognition Reporting (RR) form. For non-employees, such documentation needs to include the information identified in the PPS Section C and the document must show the Org fiscal principal’s signature.

Sensitive Expenditures - Softball Fees

Q – Can we use university funds to pay the registration fee to participate in a campus softball league? (05/05)

A – No. The Sensitive Expenses PPS excludes non-work related activities and their related costs, such as sporting league registrations/fees and team uniforms in 6.b.

 Sensitive Expenditures - Spouses or Significant Others

Q – ABS has received a number of questions from departments about meals paid for spouses or significant others.

A – The Tests of Propriety PPS governs all purchases with university resources. The answer to all eight of the following questions must be "Yes" in regards to including spouses or significant others to a university event where food is provided.

1. For official university business?

2. In the best interests of the University?

3. The most effective way to accomplish official university business? Meaning that, without the expenses, would programmatic objectives be difficult or otherwise more costly to achieve? Or would the impact, level, or quality of the achievement be reduced?

4. In compliance with applicable policies, laws, regulations, and rules; and contracts, grants, and donor restrictions including having the required approvals and authorizations by the appropriate fiscal role?

5. Within the available resources of the responsibility unit, taking into consideration all outstanding commitments and encumbrances?

6. Directly beneficial to the responsibility unit where it is being charged?

7. Reasonable? Meaning that the quantity and quality of goods or services being purchased is sufficient to meet the University’s identified need without exceeding it.

8. In compliance with university conflict of interest provisions? Meaning that, if an employee derives private gain, or appears to derive private gain, as a result of the transaction, then the transaction violates the conflict of interest provisions stated in Regent Law, Regent Policy, and in the Administrative Policy Statement, “Conflict of Interest Policy.”

The Tests of Propriety PPS says this about the Tests of Propriety and Immediate Family Members:

"Generally, it is the policy of the University not to pay for the attendance of an employee’s immediate family member(s) to attend an event, function, or activity. However, there are limited instances, such as external community relations or fundraising functions, where it is deemed necessary for an immediate family member(s) to attend an event for the purpose of promoting the University. The attendance of immediate family members at such events must be limited to those individuals necessary to represent the University. Limiting attendance by immediate family members will ensure expenses are kept to an absolute minimum."

In addition, the Recognition and Training PPS states: "Attendance at employee recognition events should be limited to those that are necessary to recognize the individual(s) receiving the award, reward, or prize. Limiting attendance will ensure expenditures are kept to a minimum. In certain circumstances, however, it may be appropriate for an immediate family member(s) to attend the recognition event. One such example would be a retirement function." Another example would be at a staff appreciation meal timed to coincide with a university holiday. See Holiday Parties Q&A.

The following are questions and the responses to those questions. The references cited are to the matrix found within the PSC Sensitive Expenses PPS. The policy can be found at https://www.cu.edu/psc/policies/. Eight sample scenarios, involving official functions attended by spouses or significant others, follow. The Official Functions PPS must also be followed.

1. Dinner for a student recruitment function that includes two faculty members, a graduate student, and their spouses. Answer: Allowable as a student function for faculty members and students under 7.d.iv. Meals provided for spouses are allowable only when the above eight tests of propriety are met.

2. Dinner for recruiting faculty members involving the recruits, the recruits’ spouses, faculty members, and faculty members’ spouses. Spouses invited for fostering a sense of community. Answer: Allowable as a recruitment function for faculty members, the recruits, and the recruits’ spouses under 7.d.iv. Meals provided for spouses are allowable only when the above eight tests of propriety are met.

3. A department chair hosted a reception to include faculty members from the department, faculty members from other campuses, a guest speaker, and the chair’s spouse. Answer: Allowable as an official function for faculty members, the speaker, and the chair’s spouse under 7.d.vi.

4. Dinner for a large number of departmental members, a guest speaker, and a few employees’ spouses. Answer: Allowable for the employees and the speaker as an official function. Meals provided for spouses are allowable if the above eight tests of propriety are met. The event invitation should be limited to those employees/individuals necessary to and directly involved with the event functions.

5. Food for a faculty and a non-CU employee colleague to conduct research for a book at the faculty member’s home during a two-week project time. The faculty member’s spouse occasionally joined their meals. Answer: Not allowable as an official function for all attending under 7.a. However, meals for a non-CU employee in travel status can be allowed by complying with applicable Procurement Service Center travel Procedural Statements.

6. Food for a welcome back picnic held at the beginning of the fall semester to which faculty, staff, students, and their families are invited. Answer: Allowable as a student function 7.d.vii.

7. Food for a holiday party to celebrate a university-recognized holiday. Answer: See Holiday Parties Q&A.

8. Dinner for a fundraising function including a guest speaker, the speaker’s spouse, some donors, board members of a Center, board members’ spouses, some faculty members, and faculty members’ spouses. Answer: Allowable as an official function for the speaker, the speaker’s spouse, donors, the Center’s board members, and faculty members. Meals provided for faculty members’ spouses and the Center’s board members’ spouses who meet the definition of associates are allowed.

In general, official function expenditures are treated as unallowable costs to sponsored research projects and internal service center (ISC) programs according to the OMB (Office of Management and Budget) Circular A-21.

SpeedTypes

Q – I want to improve my organization structure for my department using new organizations codes but the same program codes that I have now. Is it a good idea to assign the old speedtypes from the old FOPPS to the new FOPPS or should I get new speedtypes for the new FOPPS. (11/01) 

A – You should leave the old speedtype assigned to the old FOPPS and get a new speedtype for the new FOPPS.  HRMS is driven entirely by speedtypes. When you change the FOPP value of a speedtype then you distort HRMS history for that old speedtype. Therefore, you should get new speedtypes for new FOPPS, even if you are using existing programs and fund but with a new organization code. The only exception is if the old FOPPS was set up under the wrong organization.  Please use the following process if you are contemplating a change of this nature.

1.  Review your desired change with your Vice Chancellor Finance Officer and get her/his approval.

2.  Work with your ABS accountant to manage the change.

3.   Once you have the new FOPPS set up you will need to do the following.

a.  Change speedtypes on the payroll funding distributions for all employees paid from the old speedtype.

b.  Change speedtypes on any open Standing Purchase Orders.

c.  Contact any on-campus service provider who may be using the old speedtype such as Telecommunication Services, Mailing Services, etc.

d.  If this involves auxiliary funds, process on-line journal entries to move any balance sheet items, except PS Accounts Payable, to the new FOPPS.

e.  Contact the Bursar’s office to make any changes on Student Billing Receivable System subcodes if this system is used on the old speedtype.

ABS can set up a process whereby any activity hitting the old speedtype can be automatically moved to the new speedtype.

Sponsored Project Cost Sharing

Q – I have a sponsored project that requires we cost-share (or match) certain costs using University funds. How do we account for these cost-sharing requirements  (11/01)

A – Our practice is to set up a unique FOPPS for each cost-sharing requirement. The title of the FOPPS will read "Costsharing for Proj #154xxxx." The fund for the FOPPS depends on what funds the department will use to pay for the cost-sharing. It could be a general fund FOPPS (fund 10), a gift fund FOPPS (fund 34) or a renewal and replacement plant fund FOPPS (funds 72 or 78) R&R will only be used if the cost-sharing is for capital equipment (costs $5,000 or more per each piece of equipment, not total invoice cost). This is the federal government’s preferred practice to demonstrate that we have met each of our cost-sharing requirements and that the same costs are not used to meet more than one cost-sharing requirement.

Sponsored Projects Fiscal Roles

Q – I want to change the Fiscal Manager for a sponsored project, but SPA told me if I do that, I'll end up changing all the projects in our department to that person. Why is this?

A – There is a fundamental difference between sponsored projects and non-fund 30 programs in the way fiscal roles are treated. Fiscal roles are what drive the reports to an employee’s portal.

Sponsored projects must abide by the conditions set forth by the sponsor as well as those applicable at the federal, state, and university levels. Whereas program fiscal role assignments are generally an internal university decision, the sponsored project Principal Investigator (PI) is designated as the Project Fiscal Principal in the Finance System and cannot be changed without agency (sponsor) approval. SPA enters the PI information into the Finance System when the project is set up in the Sponsored Project Information System (SPINS). SPINS data uploads to the Finance System nightly. SPA also maintains a table in SPINS that lists Key Contact names for each department. Key Contacts from the SPINS table become the Project Fiscal Manager in the Finance System through the upload process. Don’t be confused by the term “Key Contact.” Key Contact used to be a valid field in the Finance System but that field and position was eliminated. However, Key Contact continues its status in SPINS and serves as a way for SPA to disseminate project-related information to departments. There is only one Key Contact per department (except for a few large orgs with many projects). If you want to change the employee listed as Fiscal Manager (Key Contact in SPINS), this will change all the Key Contact/Fiscal Managers for all the projects under that org to that employee.

If you want financial reports delivered (via the portal) to someone in addition to the PI (Fiscal Principal) and Key Contact (Fiscal Manager), you can add that person to the Fiscal Staff role by sending an email listing the speedtype, position number, and employee name to accounting@colorado.edu. For all other fiscal role questions or concerns, contact your SPA accountant.

Sponsored Projects Mailing Expense

Q – Are FedEx and UPS a violation of the Federal Office of Management and Budget Circular A-21 (OMB A-21) requirement that postage shall normally be treated as a facilities & administrative cost?  See section F.6.b.3 of OMB A-21.  (12/01)

A – Yes and No. This is a difficult question because the answer is based not just on the use of the service, but what the service is being used for. The OMB A-21 restriction is for general correspondence such as letters, technical reports, requests for extensions, responses to questions, etc. Postage for these items must be charged to your departmental FOPPS. However, it is acceptable to charge FedEx and UPS costs as a direct cost of your project if you are using FedEx or UPS to ship project materials to or from a field location, or blood samples to an investigator at another institution, etc. In order to continue the enforcement against general mailing, the Mailing Service restriction process will be left in place. This means departments would have to charge the allowable UPS cost to another program and then JE the cost into the project. Be sure to document what is being shipped to clearly demonstrate this is not a violation of the OMB A-21 rule in case the auditors select this transaction for review. If your project has a lot of this activity, then please request your SPA accountant to review your project for an exemption from the Mailing Services restriction. If the accountant agrees this is a major activity for the project, versus the occasional activity, then the accountant will authorize that project to be exempt from the Mailing Service restriction. FedEx is not administered through Mailing Services, so ensure that it is used only as described above.

Student Organizations 

Q – We have a group of students organizing a symposium for companies and students. What kind of fund should I use to account for the registration fees and expenses? (11/01)

A – Accounting for student organization activities involves answering a number of questions.

1.                  Is this a formal student organization?

2.                  If yes, is it an affiliated organization of the University or an independent organization? Refer to the Relationship Statement for the University of Colorado Student Organizations on the Student Organization Finance Office Web site.

3.                  If it is an independent student organization then follow the Committee on Use of University Facilities policy.  http://www.colorado.edu/FacultyStaff/facility_use.html

4.                  If it is an affiliated student organization then it is already administered through the Student Organization Finance Office, and we will follow their policies.

5.                  If this is not a formal student organization then you have to answer the following questions.

6.                  Is the department co-hosting the event or are the students working on their own?

7.                  If the students are working on their own, then they are private individuals and they should administer their activities outside of the University business and financial accounting/reporting processes except as required by the Committee on Use of University Facilities policy.

http://www.colorado.edu/FacultyStaff/facility_use.html

8.                  If the department is co-hosting the event then we are conducting University business and all University policies and procedures must be followed in accounting for the revenue and the expense. All departmental revenue and expenses, per the agreement with the students, will be recorded in a FOPPS.

9.                  The FOPPS to use depends on the department. If the department is an “auxiliary fund department” such as Housing, Athletics, etc. then the FOPPS used should be in their fund/organization structure. If the department is a “general fund” department such as an academic department, then the FOPPS should be in fund 29, Auxiliary – Non-enterprises. Do not record University business in an agency fund FOPPS, fund 80.

Study Subjects

Q – What account number should be used for payment to people participating as subjects in research studies?  (09/02; updated 04/07; 03/09)

A – 495102–Study Subjects. See the Study Subject Payment Log template to record cash payments.

Sub-classification

Q – What is the PeopleSoft Sub-classification (sub-class) Chartfield and how is it used? (01/02)

A – The Sub-class ChartField is an optional field available to departments to provide an additional value for classifying revenue and expense transactions. This is a five-character, alpha-numeric field and values must be established in PeopleSoft before they can be used. Values can be requested via the ChartField Request workbook form. The sub-class value can be coded on any transaction where the sub-class ChartField is available – journal entries, requisitions, purchase orders, etc. Speedtypes can be defined to include a subclass value. An example for using a sub-class is 1LREC-Student Reception. A department has created this sub-class to add to those revenue and expense transactions in its FOPPS that relate to their student receptions. The standard reports can then be run to “pull out” just the sub-class activity so that it can be seen separate from all other activity in the FOPPS. The Revenue and Expense Statement Summary can be run for the FOPPS designating this sub-class value and the report will show the summary activity for just those transactions in the FOPPS that have the 1LREC sub-class value. The sub-class value will also show on the FOPPS Detail report, or the report can be run to display only those transactions with the sub-class. The sub-class is not designed for use with balance sheet accounts and balance sheet reports run using the sub-class may not report valid information. For one thing, when the June 30 ending balance sheet balances are rolled forward into the next year, all the sub-class values associated with balance sheet transactions throughout the year are dropped. Therefore, a balance sheet report by sub-class run at June 30 will not equal the same report run at July 1. It is recommended that you not run balance sheet reports using the sub-class.

Tax Exempt Information for Vendors and Donors

Q – Where can vendors verify that the University is exempt from federal income tax, or donors verify that contributions to the University constitute allowable deductions on the donor's tax return? (6/08)

A –  The IRS recognizes the University is exempt from federal taxes under section 501(c)(3) of the Internal Revenue Code. A list of such organizations – including CU – can be found on the Exempt Organizations page of the IRS web site. To locate the University on this Excel table, click on the Colorado link and look or search for “Regents of the University of Colorado.”

To confirm that the University is eligible to receive tax-deductible charitable contributions, use the Search for Charities page. For a pinpoint search, include “Regents of the University of Colorado” in the search criteria and select the “All of the words” radio button.

(See related Sales Tax Exemption Q&A.)

Tax Numbers

Q – What are the University's tax numbers that departments should use when requested for this information? (updated 01/08)

A –  The following are the numbers provided by the PSC and the Treasurer's office. These numbers should be used when requested. Departments should not set up new numbers without prior approval to do so from the Treasurer's Office.

  University Numbers:

• Federal Employer Identification Number (FEIN):  84-6000555 (click for other campuses)

• Federal Excise Tax Exemption Register Number:  84-730123K

  Boulder Campus Numbers:

• Certificate of Exemption for Colorado State Sales/Use Tax Only Number: 98-02915-0000

• City of Boulder Tax Exempt Number: 0-03282

• DUNS Number: 00-743-1505 (click for other campuses)

• State and County Sales Tax License Number: 10-12726-0000

• City of Boulder Sales & Use Tax License Number: 0-03282-1

Tax Exempt Status of the University of Colorado

Certificate of Exemption for Colorado State Sales/Use Tax

Telephones

Q – We provide a cellular phone to some of our employees. The cell phones are for University business only but occasionally a personal call is made. How should we handle the cost of the personal call?  (04/02; updated 03/07)

A – Employees should be reminded that University provided cellular phones are for University business only and not to be used for personal use. The Personal Technology and Telecommunications PPS governs the use of university-supplied cell phones. That policy states, "The University generally will not require reimbursement for an occasional personal call that does not result in incremental costs to the University provided the call enabled the individual to meet personal needs while achieving more efficient, effective conduct of university duties. The fiscal principal of the organizational unit is responsible for addressing patterns of personal calls that would create university exposure under tax law and other governmental regulations, as well as for addressing inequitable reimbursement practices."

If any employee has a frequent rate of personal use of a University provided cellular phone, the department should consider canceling the University provided phone. The employee can then provide a personal phone and get reimbursed for any University business. This would be similar to reimbursing an employee for mileage for driving his/her personal car on University business.

Temporary Employment Services

Q – When we use a temporary employment service such as Westaff, should this cost be charged to salaries and wages or to services?  (11/01)

A – These costs should be charged to a Services or Contractual Services expense account. You can use the accounts in a particular expense sub-group such as 480102 Office Services or 480105 Office Contractual Services if these are Office Administration expenses for example. Or you can use the Other Operating Accounts 552602 Other Operating Services or 552605 Other Operating Contractual Services. You may not use any salary and wage account (400100 – 418399). The salary and wage categories must be used only for payments to our employees. The salary and wage category is used for a number of things such as calculating the worker’s compensation fringe benefit rate, calculating the unemployment insurance fringe benefit rate, prorating general fund fringe benefits in the Facilities & Administrative Rate study, reporting payments to employees separate from payments to vendors in our annual financial report and on the State of Colorado annual financial report, etc. Including payments to vendors for temporary services in the salary and wage accounts distorts these calculations and financial reporting.

Ticket Sales

Q – We want to obtain some tickets from Athletics or other events and make them available to our clients. This is usually done as a convenience to our clients. What is the proper accounting for this situation? (11/02)

A – This depends on the arrangement you make with Athletics or any other department putting on the event. First scenario – you can return any unsold tickets to Athletics. You are basically taking the tickets on consignment. Deposit all ticket sales into a fund 29 FOPPS as revenue. Upon settling up with Athletics, move the revenue from your fund 29 FOPPS to the Athletics FOPPS they designate and return any unsold tickets. Second scenario – you are buying a block of tickets from Athletics and any unsold tickets you have to keep. When you buy the tickets from Athletics, you should record an expense in a fund 29 FOPPS and Athletics will record ticket revenue. You need to use the ID Revenue and Expense accounts for this interdepartmental transaction. All proceeds from your ticket sales should be deposited as revenue to your fund 29 FOPPS.

Travel

Q – We pay for a hotel for a non-employee to travel to Boulder from another state to do business with us such as a visiting faculty. Is this non-employee in-state or out-of-state travel?  (11/01)

A – This is non-employee out-of-state travel and should be charged to account 702100 Non-Employee Out/State Travel.

Q–Are there any limitations on traveling with General Fund Money? (09/01)

A–Yes, but they are the same limitations that apply to all funds. You have to be traveling on approved University business and you have to follow the State of Colorado Travel Management Program polices. These polices can be viewed at: http://www.cusys.edu/psc/payable/travel/. These polices apply equally to general funds, auxiliary funds, sponsored projects funds, and gifts funds. Sponsored project funds may have other restrictions imposed by the sponsor.

Travel Advances

Q – How are travel advances accounted for in PeopleSoft? Will I see the travel advance on my FOPPS until it is cleared? (08/03)

A – All travel advances are accounted for under a Procurement Services Center (PSC) FOPPS and you will not see it reflected in the departmental FOPPS. This greatly facilitates the PSCs ability to keep all the advances reconciled for those issued, cleared, partially cleared, and outstanding. Departments should maintain internal records of all advances issued to faculty and staff and whether or not they have been cleared.

Travel on Behalf of the University of Colorado Foundation

Q – Can our department use a fund 10 to record travel expenses for activity done on behalf of the University of Colorado Foundation and the travel reimbursements that we receive from CUF? (5/06)

A – No. Use a 20, 26 or 29. The Administrative Policy Statement Reimbursements for Work done on Behalf of a University of Colorado Supporting Foundation and its Attachments A, B, & C (http://www.cu.edu/policies/Fiscal/index.html then scroll to Reimbursements...) sets forth the procedure for reimbursements to employees and their immediate family members for expenses incurred on behalf of a supporting foundation. The nutshell version is that the department must have a Memorandum of Understanding (MOU) in place with the Foundation defining what services will be performed on behalf of the Foundation. The individual(s) performs the service, gets reimbursed through the normal University mechanism, and then sends an invoice to the Foundation to reimburse the University. The Foundation invoice and supporting documentation is routed through the System Controllers Office (Roger Cusworth, 436 SYS) for approval.

The APS Attachment A states that expense account code 552666, Foundation Requested Services, must be used in a Fund 10, 20, 26, or 29. Further, the reimbursement from the foundation must be deposited to the speedtype where the expense was posted using account code 325111, Foundation Service Revenue, which falls under the Miscellaneous Income revenue classification on the account tree. However, the Boulder campus Controller has determined that Miscellaneous Income shall not be deposited to a Fund 10. Therefore, that leaves Fund 20, 26, or 29 available for your use. And you may be gratified to hear that account 552666 is exempt from GAIR.

Travel – Do I Need a State Travel Card?

Q – I have to travel out of state on university business for the first time and this will probably be the only time. Do I really have to get a State Travel Card? (07/08)

A – Strictly speaking, no. The Travel Authorization and Expense PPS item #37 State Travel Card states that it “Should be used by employees who travel on official university business out-of-state more than once a year.” Given your limited travel plans, this can apply to you. However, there are numerous benefits to using the card as spelled out in the State Travel Card PPS and its use is strongly encouraged by the PSC Travel Office. It may still be in your (and the university’s) best interests to apply for the Travel Card.

Uniform Allowance

Q – Should uniform allowances be paid through payroll or accounts payable? (12/02)

A –State of Colorado Fiscal Rules chapter 2, section 8.07 (http://abs.colorado.edu/ and click on F, then click on Fiscal Rules) says that uniforms required to be worn by State employees and the necessary maintenance of these uniforms may be provided to the employee by the State Agency at no charge, or at a reduced charge, or through a uniform allowance. Therefore, departments may incur the direct cost of providing the uniform and its maintenance or it may pay a uniform allowance to the employee. The following information has been provided by PBS Tax Services

Issue: 

For tax purposes, should certain "allowances" paid to campus police and security guards be considered as reimbursements of business expenses, or additional compensation?

Example Facts of Current Process:

The department has two allowances involved. Administrative personnel in the department have been operating under the assumption that these allowances should be treated as reimbursements to the recipients. These payments are currently being processed through Accounts Payable. 

First, there is an initial allowance paid to campus employees when they are hired, to enable them to buy the uniforms and equipment required for the job. It consists of two parts: the first part of it is $1,000, but it is in the form of a standing purchase order with specific vendors (i.e., it is not given in cash). The recipient of the allowance can use the money only to buy specified gear from the specified vendor. The recipient cannot use any amount not spent as specified. The second part of the initial allowance is a flat cash amount, (equal to two quarterly allowances, explained below). The cash amount of the initial allowance is given to the recipients to help offset the considerable additional costs they will incur in getting themselves established as Boulder employees. The individuals are not required to substantiate their expenditures. They are, however, required to return at least some portion of these cash initial allowances if they do not work for the University for a certain period of time.

Second, a quarterly allowance is paid to the employees every quarter. The quarterly allowances are a flat dollar amount. The expectation is that the quarterly allowance will be used for cleaning, repairs, replacement etc. to the individual's required service uniforms and equipment. The recipients of the quarterly allowances are not required to do any sort of substantiation of these expenses. There is no requirement to return excess amounts (if any) not spent for cleaning, repairs, replacement, etc. to the individual's required service uniforms and equipment.

Analysis and Discussion:

Compensation for services is considered as gross income to the recipient (Internal Revenue Code section 61) unless specifically excluded pursuant to federal tax law.  It follows that payments by an employer to an employee for services are considered as gross income to the employee.  Normally those kinds of payments also meet the tax definition of "wages," pursuant to Internal Revenue Code ("IRC") section 3401, unless a specific exception applies. 

An exclusion from gross income, described in IRC 62, is provided for "certain trade or business deductions of employees."  Under certain circumstances, an exclusion is provided for employer reimbursements of ordinary and necessary business expenses that are paid by an employee who is working for that employer.  In order for these payments to qualify for exclusion, the expenses must first meet the tax definition of trade or business expenses, (found in IRC section 162).  IRC section 62 and the regulations thereunder state that in order for employee business expense reimbursements to be excludable, the expenses must: (1) have a business connection, (2) be properly substantiated, and (3) employees must be required to return any amounts in excess of expenses.  Business expenses reimbursed according to these rules are said to be made under an "accountable plan."  Other business expense reimbursement arrangements are called "non-accountable plans." 

Employee business expense reimbursements paid under non-accountable plans do not qualify for exclusion from gross income, and are subject to payroll taxes and withholding.  The regulations under IRC section 62 state that expenses attributable to amounts included in gross income under non-accountable plans may be deducted by the employee as a miscellaneous itemized deduction on his or her tax return, provided the employee can properly substantiate those expenses.

When we think about the tax rules for properly substantiating business expenses according to the accountable plan rules, in most cases we think about employees submitting receipts for the expenses.  However, there are some exceptions to the requirement for receipts.  One good example of such an exception is the use of "per diem" amounts in place of receipts for employee's meals during times the employee is traveling on business for the employer.

Certain fringe benefits are excludable from gross income pursuant to IRC section 132.  One of those fringe benefits is the "working condition fringe benefit" defined in IRC section 132(d) as "any property or services provided to an employee of the employer to the extent that, if the employee paid for such property or services, such payment would be allowable as a deduction under section 162..."

To qualify for exclusion as a working condition fringe benefit, the regulations under IRC section 132 state that the employee must meet three requirements.  The employee must be required to (1) use the payment for expenses in connection with a specific or pre-arranged activity which would qualify as an ordinary and necessary trade or business expense, (2) verify that the payment was actually used for such expenses, and (3) return to the employer any portion of the payment that is not used as prescribed.

Conclusion:

The initial allowance amount of $1,000 that is not paid in cash would be considered as a working condition fringe benefit.  The second part of the initial allowance, consisting of a cash amount equal to two quarterly allowances, would probably also be considered as a working condition fringe benefit.  The employee will incur substantial uniform and equipment costs when he or she is first employed, which might fulfill the verification requirement. There is a requirement that the allowance be returned if the individual does not work for a certain period of time, which might be enough to satisfy the requirement that any excess be returned to the employer.  In order to make sure that this initial cash allowance qualifies for exclusion as a working condition fringe benefit, there should be a written policy that: states how the money should be used, requires employees to verify the payment is actually used for such expenses, and requires employees to return any excess amounts to the employer.

The on-going quarterly allowance paid to the employees every quarter does not qualify for exclusion.  Although the expectation is that the quarterly allowance will be used for cleaning, repairs, replacement etc. to the individual's required service uniforms and equipment, there is no requirement that the money be used for that purpose.  Additionally, the employees are not required to verify or substantiate how the money is used, and there is no requirement to return excess amounts.

If an allowance qualifies as a working condition fringe benefit, the allowance is excludable from the employee’s wages.  If an allowance is not considered as paid under an accountable plan, or does not qualify as a working condition fringe benefit, the payment is considered wages to the employee.  The payment should be made through the PeopleSoft HR system, and an earnings code of "ALW" should be used.  Using that earnings code will make the payment subject to the appropriate payroll taxes and withholding, but the payment will not be considered as compensation for the employee's retirement plan (PERA or the Optional Retirement Plan, as applicable).

Therefore, to ensure compliance with the letter of the regulations, if a cash allowance is provided to the employees without being based on documentation of actual expenses incurred, this should be paid through the PeopleSoft HR system as described above.  If a reimbursement is paid to the employees based on documentation of actual expenses incurred, this should be paid through Accounts Payable using the expense voucher.  Keep in mind that reimbursements via the expense voucher to employees for out-of-pocket expenses are limited to $3,000.

Uniform Allowance

Q – State fiscal rule 2-8.07 says that “Uniforms required to be worn by State employees and the necessary maintenance of these uniforms may be provided to the employee by the State Agency at no charge, or at a reduced charge, or through a uniform allowance.”  Does this mean that the University should not pay these costs if the uniform is not required?  (09/02)

A – Yes. The state fiscal rule applies only to uniforms “required to be worn by State employees.”  If the State agency does not require the uniform, then the employee wears the uniform at her/his election and s/he is responsible for all costs of these clothes the same as all other employees are responsible for the cost of their clothes. Also, the fiscal rule says these costs “may” be provided to the employee by the State agency. The fiscal rule does not require that these be provided. So, even if the uniform is required, it is up to the department to set its policy regarding these costs.

Use of University Facilities (for Personal or Business)

Q – Can university facilities (i.e. physical space) be used for commercial or personal endeavors? For example, can a Psychology professor conduct a counseling session with a private client in his office, or can a researcher use a university lab to work on an idea she’s developing for her own company? (09/06)

A – No. The Policy on the Use of University Facilities states in the section on Commercial or Personal Use (VIII.A.), “University facilities may not be used for commercial, personal, or private financial gain or for commercial advertising.” Also, the Memorandum on Rules Governing the Use of University Accounts from Chancellor Corbridge dated October 11, 1991 states, “Do not use University property or resources for personal business or other personal uses.” 

Only official university business is allowable in university facilities. This is activity that carries out the university’s mission of instruction, research and service or that provides support to these activities. While certain outside activities may bear some connection to an employee’s role at the university, this is not a valid reason to use university resources for these personal or business pursuits.

W-9 Forms

Q – Please explain the two kinds of W-9 forms on the PSC Forms page. (06/08)

A – The PSC Forms page (www.cu.edu/psc/forms) has two types of W-9 forms available. One is the Blank W-9 for Vendors – CU uses its own CU W-9 and Vendor Authorization form in place of the standard IRS W-9 Request for Taxpayer Identification Number and Certification form in order to collect the information we need for both federal reporting (vendor business classifications) and internal business process (e.g., correct Remit To addresses, etc.). This is completed and signed by external vendors so that the University can purchase and pay for goods and services from that vendor. The other is the Signed W-9 for CU – a standard W-9 form already completed and signed by the University and available to vendors when the vendor will be paying CU for something.

Occasionally, vendors have developed their own modified W-9 form and they typically ask the organizational unit they are working with to sign that modified form instead of using the signed CU version on the web. Do not sign their modified W-9—only designated individuals are authorized to sign a W-9 form on behalf of the University of Colorado. The  icon next to the “Signed W-9 for CU” link directs the vendor who wishes CU to complete a modified W-9 form to fax that form to the Finance and Procurement Help Desk at 303-315-2795. The Help Desk will work with the Associate Vice President and University Controller to obtain a properly completed and signed copy for the vendor. Please contact FinProHelp at 303-315-2846 if you have further questions.

Wire Transfers

Q – A visiting researcher's home university wants to wire $2000 to pay some support for laboratory supplies. What are the bank wire instructions for the university?

A – Bank wires such as these are handled by the Bursar's Office of Cash Management. You need to do two things. (Note: Bank wires in support of sponsored projects do not go through the Bursar. Contact SPA or the grant accountant for assistance.)

1) Complete a cash receipt form indicating the amount to be received, the speedtype where it should be deposited, and the account code. Include a brief description of the sender and the purpose of the transaction. Send or take this form to the Bursar's Office of Cash Management in Regent Hall room 150 (41 UCB). You can also order or pick up cash receipts from them: 492-7219.

2) Provide the following wire transfer information to the sender:

Routing Number: 121000248

Bank Name: Wells Fargo Bank, N.A.

City, State: San Francisco, CA

Beneficiary Account Name: University of Colorado - Boulder

Beneficiary Account Number (BNF): 182-3472752

International SWIFT code: WFBIUS6S

If this is a payment for a student, include the student's full name and student ID number.

Workers’ Compensation

Q – What is the correct account code to use to deposit checks from Workers’ Compensation to reimburse CU for salary and wages paid? (updated 11/07; 03/02)

A – Payment on a worker's compensation claim represents a reimbursement to the University for payroll costs paid by the University on behalf of the insurance company. These insurance proceeds cannot be used for other purposes. Therefore, record these reimbursements as a reduction of the injured employee’s payroll cost. However, because actual payroll accounts are System maintained and not available for use, you must use the appropriate Non-HRMS (NHRMS) account code for the budget pool where the original salary expense was recorded:

400169 - Fac FTP Sal NHRMS
400369 - RschFac FTP Sal NHRMS
400549 - PRAFac FTP Sal NHRMS
400669 - RsAsFac FTP Sal NHRMS
400769 - OthFac FTP Sal NHRMS
401049 - RschFac PTP Sal NHRMS
401069 - RschFac FTT Sal NHRMS
401099 - RschFac PTT Sal NHRMS
401349 - Fac PTP Sal NHRMS
401369 - Fac FTT Sal NHRMS
401449 - Fac PTT Sal NHRMS
401499 - PRAFac FTT Sal NHRMS
401599 - PRAFac PTT Sal NHRMS
401749 - PRAFac PTP Sal NHRMS
401769 - RsAsFac FTT Sal NHRMS
401789 - RsAsFac PTT Sal NHRMS
401849 - RsAsFac PTP Sal NHRMS
401899 - OthFac PTP Sal NHRMS
401989 - OthFac PTT Sal NHRMS
402049 - OthFac FTT Sal NHRMS
402249 - StdFac FTP Sal NHRMS
402299 - StdFac FTT Sal NHRMS
402349 - StdFac PTP Sal NHRMS
402399 - StdFac PTT Sal NHRMS
402649 - O/E FTP Sal NHRMS
402749 - O/E PTP Sal NHRMS
402949 - O/E T Sal NHRMS
405149 - Class FTP Sal NHRMS
405249 - Class PTP Sal NHRMS
405349 - Class FTT Sal NHRMS
405249 - Class PTP Sal NHRMS
405349 - Class FTT Sal NHRMS
405449 - Class PTT Sal NHRMS
407699 - Std Hr Pay NHRMS
407799 - Std OnC WS Pay NHRMS
407899 - Std OffC WS Pay NHRMS

Work-Study Payroll Expense Transfers

Q – Whom do I contact to get a work-study payroll expense transfer done?  (01/04)

A – The departmental end user cannot process payroll expense transfers involving work-study earnings.  If you need to transfer funds that involve a work-study transaction, please complete the ‘Hourly to Work-study Transfer Request Form.’ Send the completed form to the Student Employment Office (77 UCB).  This form and the ‘On-Campus Student Employment Handbook,’ that contains additional information, can be found at: http://www.colorado.edu/studentemployment/oncamp.html.  Transfers will be contingent upon student eligibility and availability of work-study funds.  Additional questions should be directed to the Student Employment Office at x2-3548. 

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