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25.55 Accounting for State of Oregon Assessments & CO Cost Recoveries

25.55 Accounting for State of Oregon Assessments & CO Cost Recoveries

Purpose:

To ensure that the payment and distribution of State of Oregon assessments and Chancellor’s Office cost recoveries are recorded in a uniform and consistent manner in the University and Chancellor’s Office accounting records.

Policy:

The following procedures will be used in the accounting for assessments and Chancellor’s Office (CO) cost recoveries.

Procedures

State of Oregon Assessments

  1. Annual listing of State of Oregon Assessments
    1. The annual listing is provided by the CO Budgets Division and contains the following information:
      • Assessment name
      • Assessment annual amount
      • Assessment funding source broken out by University and Fund Type
      • Frequency of payment (i.e., annually or quarterly)
      • Frequency of distribution to universities (i.e., annually or quarterly)
  2. Payment of the assessment to the State of Oregon
    1. For assessments funded entirely by the CO, charge the General Fund (001005) within Chart K, Fund Type 11 Budgeted Operations (index ASSESS).
    2. For assessments partially or fully distributed to the Universities, charge clearing fund 095015 (State Assessments Clearing) within Chart K, Fund Type 14 Clearing Funds (index SASSCL).
    3. For all assessments, use the applicable 280XX account code. For a complete listing of assessment account codes see Fiscal Policy Manual 02.11G.
    4. Annual assessments are paid in August (period 02). Quarterly assessments are paid in August (period 02), December (period 06), March (period 09), and May (period 11).
  3. Distribution of Assessments to Universities
    1. Based on the annual State of Oregon Assessments schedule provided by CO Budgets Division, distribute each assessment to the applicable Banner FIS charts to the university’s clearing fund using the applicable 280XX assessment account code and reducing the same account code in the Chart K clearing fund (SASSCL).
    2. To assist universities in distributing their assessments from their clearing fund to the appropriate funding sources, a separate line will be included in the inter-institutional journal voucher that identifies each amount and each funding source.
    3. Annual assessments are distributed in August (period 02). Quarterly assessments are distributed in August (period 02), December (period 06), March (period 09), and May (period 11).
  4. Worker's Compensation Assessment
    1. This assessment is paid to DAS Risk Management annually by the CO from clearing fund 095020 "SAIF/Workers Comp Clearing" using account code A5018 “Prepaid Insurance” and index SAIFCL.
    2. The annual amount will be distributed to the campuses in August of each year, to the applicable Banner FIS charts to the university's clearing fund, using account code A5018 "Prepaid Insurance".
    3. Aggregate Payroll manages the OPE rate for SAIF charged to each campus based on the amount that DAS charges at the beginning of the year. The amounts collected by the campuses are recorded in agency fund 936037 "SAIF State Accident Insurance Fund" on a monthly basis using account code 06922 "Payroll Deduction".
    4. On a monthly basis, each campus needs to enter a JV to credit the clearing fund, account code A5018 "Prepaid Insurance" and debit agency fund 936037 "SAIF State Accident Insurance Fund", account code 06922 "Payroll Deduction."
    5. At the end of the year, the balance of the clearing fund, account code A5018 will be zero. Any differences between the reimbursement from the payroll system and the workers compensation assessment paid to DAS is to be carried forward as a balance in agency fund 936037 "SAIF State Accident Insurance Fund" at the institutions.
  5. Banking Service Charge
    1. State Treasury deducts the banking service charge from the various cash accounts at the State Treasury
      1. There is a monthly maintenance fee for each state treasury account and a unit charge for each transaction (e.g., deposits, checks, transfers, etc.).
    2. The amount for all campuses except UO & PSU is initially charged to Chart K clearing fund 095017 “State Treasurer’s Charge Clearing” using account A5052 “Undistributed Treasury Charges.” Charges for UO & PSU go directly to those universities.
    3. On a monthly basis the CO Controller’s Division does an inter-institutional journal voucher to redistribute the charges from Chart K to the appropriate funds at the universities using account 28028 “State Treasury Banking Srv Chg.”.

Chancellor's Office Cost Recovery

  1. CO Centralized Activities & Statewide Public Service Cost Recovery
    1. The CO Centralized Activities cost recovery is charged to the campuses based on a predetermined rate, currently .22% (.0022), multiplied by the institutions’ auxiliary and Statewide Public Service revenue. This charge allows the CO to recover indirect administrative costs for services provided on behalf of the campus’s non-education & general operations.
    2. This assessment is charged to the campuses using account code 28101 “Chancellor’s Office Assessment” and is credited to the CO General Fund 001005 (index CENTAC) as Internal Revenue using account code 09392 “Miscellaneous Service Internal Sales”.
      1. The use of the internal revenue account code prevents double counting of system-wide revenue at year end.
    3. This is a quarterly assessment that is charged after the close of each of the first three quarters (in period 4, 7, and 10) based on the previous quarters' actual revenue. The fourth quarter assessment is based on actual revenue for periods 10 and 11, and an estimate of an additional 1/12th (8.3%) of the annual assessment to cover both periods 12 and 14. The fourth quarter assessment posts to period 12 in order to give campuses time to charge the assessment out to the appropriate funds prior to year end. In period 01 of the following fiscal year, the assessment will be adjusted for the difference between the estimated assessment and the actual assessment for periods 12 and 14 of the previous fiscal year.
  2. CO Capital Support Assessment
    1. The CO charges the campuses a Capital Support Assessment on all legislatively approved capital construction projects. The assessment is 0.25% (.0025) of the approved budget for all unexpended plant funds established under a legislatively approved project. The assessment is charged at the time that the fund is established and any time the budget is increased by more than $10,000.
    2. This assessment is charged to the campuses using either account code 28103 “OUS Capital Support Assessment” or the appropriate capital outlay (4xxxx) account code and credited to the Chancellor’s Office Capital Support Assessment fund 001015 (index CAPSUP) using account code 79392 "Miscellaneous Service Reimbursement".
    3. See Fiscal Policy Manual 05.780 Accounting for Unexpended Plant Funds for more details about this assessment.
  3. CO F&A rate Recoveries Received from Universities
    1. The CO receives a portion of each campus’s F&A rate recoveries. This allows the CO to recover indirect administrative costs for services provided on behalf of the campuses.
    2. At the end of each fiscal quarter, the campuses are to move the portion of their F&A rate recoveries due to the Chancellor’s Office. The transfer of funds is to be processed in periods 3, 6, 9 and 12.
    3. The F&A rate recoveries are to be credited to chart K, General Fund (001005), Fund Type 11 Budgeted Operations (index INDCST) using account code 03410 “F&A Cost Recovery Redistribution.”

Last Updated: 08/17/09