General Information

The financial report is prepared quarterly by the recharge center to show cumulative activity for the biennium. The report summarizes the actual activity shown on Budgetⁱ Status Report (BSR) for the recharge center operating budget and includes accruals for activities that have not yet posted to the budget but are related to the time period being reported.

The report is set up so revenue is entered as a credit (-) and expenditures as a debit (+). This is the format to be used by most recharge centers for the quarterly financial report.

Preparing the Report

The top part of the form is copied from the BSR. The ending balance should match the ending balance on the BSR.

• Amounts can be rounded to the nearest dollar.
• Amounts followed by a minus sign (-) on the BSR should be entered with a minus sign on the report.

The bottom of the report includes accrued amounts that are not on the BSR and relate to the time period being reported.

Accrued Revenue

Accrued Revenue includes revenue for the period for which an Internal Sales Documentⁱ or Cash Sale Invoices has not yet been issued. The revenue could be either unbilled or posted in a subsequent month.

Accrued Annual Leave

Effective July 1, 2011, the University changed the separation pay procedures.  Allowance for separation pay is now recovered through the fringe benefit load rate.  As a result of this change, centers no longer have to include this on their quarterly reports. 

Encumbrances

Valid encumbrances, for the reporting period, should be included on the report. Encumbrances for blanket purchase orders and the unused portion of maintenance contracts should be excluded from the encumbrance amount reported.

Example: The center has a maintenance contract that runs from July 1 to June 30 and costs $10,000 per year. The vendor bills the University quarterly so the encumbrance that should be included for each quarter is $2,500 ($10,000 x 3 months / 12 months).

Unencumbered Accounts Payable

Unencumbered Accounts Payable represent material or services received by the recharge center for which neither the expenditure nor an encumbrance has appeared on the BSRs to date.

Unposted Depreciation or Use Allowance

Unposted depreciation or use allowance is the amount that has not yet shown up on the BSR for the period being reported.

Unposted Institutional Overhead

Unposted institutional overhead is calculated by adding the cash sales from the top of the report and the Cash Salesⁱ Invoices from the bottom of the report and multiplying by the institutional overhead percentage (depending on the location of the center). Use the following formula to calculate the unposted institutional overhead:

{[Posted Cash Sales (from top) + Cash Sales Invoices (from bottom)] x Institutional Overhead % / (1 + Institutional Overhead %) }- Posted Overhead

Balance

With this report format, if the ending report balance is negative (credit) the center has a surplus. If it is positive (debit), the recharge center has a deficit.

Report Distribution

Cost centers should send a copy of their financial report to the appropriate Dean's or VP's office.

Recharge centers should send a copy of their financial report to Management Accounting and Analysis and their Dean's or VP's office.