University of Vermont
Financial Management-Operations Manual
 

Table of Contents

Statement of Origin
Manual Overview
Chapter 1 - Internal Control Environment and Strategic Purpose
    1.1 - Overview of the Internal Control Environment
    1.2 - Strategic Relevance
    1.3 - Key Principles of UVM's Financial Management and Operations
    1.4 - Key Roles and Responsibilities
Chapter 2 - Financial Accounting and Reporting
    2.1 - Overview
    2.2 - Annual Certification of Financial Reporting
    2.3 - Other Financial Attestation or Compliance Audit Reports
    2.4 - Internal Audit
    2.5 - Other Financial Reporting Requirements
Chapter 3 - Financial Management
    3.1 - Overview
    3.2 - University Strategic Planning
    3.3 - University Budget Building
    3.4 - Sub-certification of Quarterly Financial Reporting
    3.5 - Continuous Improvement of Financial Performance
Chapter 4 - Financial Services Delivery Model (under development)
Chapter 5 - Financial Operations
    5.1 - Overview and Framework of Internal Controls
    5.2 - Accounting Framework
    5.3 - Fund and Source Accounting
    5.4 - Accounting Entries
    5.5 - Budget and Financial Reports and Certification
    5.6 - Managing Expenditures - Commitment Control
    5.7 - Grants and Contracts (under development)
    5.8 - Non-Grant Billing and Accounts Receivable
    5.9 - Student Financial Services
    5.10 - Prepaid Expenses and Deferred Revenue
    5.11 - Procurement and Accounts Payable
    5.12 - Travel
    5.13 - Asset Control
    5.14 - Tax and Treasury Operations
    5.15 - Institutional Investment Portfolio
    5.16 - Gifts and Fund-raising
    5.17 - Cost Accounting (under development)
Chapter 6 - Financial Information and Technology
      6.1 - Working Environment
    6.2 - Access and Security
    6.3 - Reporting
    6.4 - Updates and Maintenance
    6.5 - Governance
    6.6 - Infrastructure

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Statement of Origin

December 31, 2008

This Financial Management–Operations Manual for the University of Vermont (UVM) is intended to provide a comprehensive, single source for all information necessary to conduct, manage, account for, and report on UVM’s financial business. The manual references key applicable University policies, explains important business financial concepts, clearly states the University’s business and financial objectives and guiding principles, and identifies responsible officials and offices that perform or monitor the business functions of the University and their primary responsibilities. The organization and content of this material are intended to enhance the transparency and efficiency of business practices within the University and promote a disciplined and pervasive culture of accountability and responsibility.

This manual applies to all faculty, staff, students, and agents of the institution who conduct, manage, or oversee activities relating to the financial resources of the University of Vermont.

The effective date of this manual is February 1, 2011. The authorized source for this manual is the University Financial Management-Operations Manual web site. The University Financial Management-Operations Manual will be reviewed and updated every year, or when changes in policy are significant enough to warrant immediate updates beginning in July 2011. Specific provisions of the Manual are subject to change in view of legal developments and administrative experience gained; thus, persons subject to its terms should review applicable provisions in the course of ordinary business operations to remain current.

Except as otherwise stated in the University Manual or as required by law, the following descending order of precedence shall apply in the event of conflicts between policies, standards, procedures or guidelines; University Charter: University Bylaws: Board of Trustees' resolutions: University policies, including the provisions of this Manual and legislation of the Faculty Senate: college or school policies: departmental policies. In addition, University faculty and staff may be subject to the provisions of handbooks or collective bargaining agreements, and the provisions of such agreements shall prevail in the event of a conflict with provisions of the University manual.

The responsible official for this manual is the University Controller. Suggested improvements for this manual can be submitted by e-mail to ufs@uvm.edu or by phone at (802) 656-2903.

Richard H. Cate
Vice President for Finance and Treasurer


Acknowledgments


We thank the members of the Financial Management-Operations Manual Ad Hoc Subcommittee of the University Business Council, who guided development of this manual. We thank each member of the Subcommittee as well as the many other members of the University community who participated.

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Manual Overview

The Financial Management-Operations Manual is organized around the core elements of the University of Vermont’s internal control environment and structure, in order to enhance the transparency and efficiency of business practices within the University and promote a disciplined and pervasive culture of accountability and responsibility. The Manual contains six chapters:

Chapter 1 - Internal Control Environment and Strategic Purpose, provides an executive overview of the University’s system of internal control, its relationship to the University’s overall financial system, its strategic relevance to the achievement of institutional strategic objectives, and key roles and responsibilities.

Chapter 2 - Financial Accounting and Reporting, describes the concept and tone of the University’s internal control environment and the design of its internal control structure, which ensures the integrity and reliability of the University’s annual financial accounting and reporting through transparency, oversight, and full-disclosure, to form the basis of trust.

Chapter 3 - Financial Management, focuses on the University’s internal management processes -- including University strategic planning, risk management, budgeting, and a continuous improvement model -- that inform financial planning and operations and guide the University throughout its fiscal year, concluding with the production of its Annual Financial Report.

Chapter 4 - Financial Service Delivery Model, identifies the service delivery model through which the University conducts its financial business, with guidance regarding the balance, distribution, and ownership of internal controls across campus-wide processes.

Chapter 5 - Financial Operations, outlines policies, procedures, and guidelines for the key financial processes regarding the University’s sources and uses of funds.

Chapter 6 - Financial Information and Technology, addresses the management and planning of the core financial information underpinning the University’s internal control environment and structure and key technological dependencies that support how the University conducts, manages, accounts for, and reports on its financial business.

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Chapter 1 - Internal Control Environment and Strategic Purpose

This chapter provides an overview of the University’s system of internal control and executive guidance regarding its relationship to the University’s overall financial system, its strategic relevance to the achievement of institutional strategic objectives, and key roles and responsibilities.

1.1 Overview of the Internal Control Environment

The University of Vermont aspires to the most prudent business practices promoting accountability and responsibility, regardless of the sector in which they originated.  The University therefore pursues its strategic objectives and conducts its financial business within a system and environment of internal control that is described in detail in the University’s Internal Control Policy. As shown in Figure 1, the individual components of the University’s financial system must be aligned and integrated to produce an effective and efficient internal control environment and structure.

Figure 1: The University of Vermont’s Financial System (gray) and Internal Control Environment and Structure (green)
Financial System & Internal Control Environment
 
The internal control environment encompasses all aspects of the University’s collection and consumption of financial resources—its sources and uses of funds—and has three tiers: (1) financial accounting and reporting, (2) financial management, and (3) financial operations.

Financial accounting and reporting represents the University’s obligation to externally and publicly report on its annual activities, performance against strategic objectives, and resultant financial condition to its numerous benefactors and stakeholders, primarily via the University’s Annual Report.

Financial management represents the short- and long-term analysis, assessment, and planning of how best to employ the University’s financial resources to achieve the University’s strategic objectives. This segment of the internal control environment focuses on the management processes that inform, guide, and decide upon the strategic investment of University financial resources—the allocation of monies for transformational and strategic initiatives, to sustain ongoing operations, and to meet unforeseen contingencies that result in the University’s annual budget. The budget functions as the intersection of planning, risk management, and decision-making in alignment with University strategic objectives, thereby providing reasonable assurance that the University’s financial resources are employed optimally to achieve its strategic objectives.

Financial operations represent the day-to-day execution of policies and procedures in the deployment of the University’s financial resources. This segment of the internal control environment instructs all members of the University community regarding the collection and consumption or use of University financial resources through policies and procedures that govern those activities. These policies and procedures must be in alignment with and supportive of University strategic objectives, efficient, and transformational, in order to contribute to the overall strengthening and stewardship of University financial resources.

Balancing managerial and transactional controls is essential for the University to experience the most efficient and effective financial management and operations possible (Figure 2). Insufficient managerial controls must not prompt an over-inflation of the University’s transactional controls (discussed in Chapter 5 of this manual), which can lead to an over-large bureaucracy. Conversely, insufficient transactional controls must not unduly consume management attention with lesser or non-material fiscal concerns.

Figure 2: Balancing of Managerial versus Transactional Controls
Balancing of Managerial vs. Transactional Controls
 
1.2 Strategic Relevance

The University’s internal control environment directly supports the University’s strategic goal of institutional efficacy, as shown in Figure 3. In addition, the Division of Finance and Enterprise Services (DFES) has developed a set of supporting business and financial objectives that further define and enhance the University’s internal control environment.

Figure 3: The University and DFES' Strategic Financial Objectives
University and DFES Strategic Financial Objectives
 
1.3 Key Principles of UVM’s Financial Management and Operations

University’s Financial Profile

UVM is a small, comprehensive, public, land-grant research university with its own medical school; its business and financial operating framework is therefore complex. The University’s financial revenues come from net tuition and fees; federal and state appropriations; grants and contracts; private gifts, including capital and endowment; income-expense (auxiliary) activities in the form of sales and services; and other revenues, including net investment income.

Financial Performance & Best Practices

Although not specifically stated in either the University’s mission or vision statements, the University must strive to achieve each strategic and operational goal while remaining economically competitive; it is compelled by economic as well as ethical and legal/regulatory necessity to embrace, and where needed develop, best practices for conducting, managing, accounting for, and reporting on its financial business.
 
These practices shall be derived from a thoughtfully planned and carefully implemented operating strategy that integrates the internal control environment with financial service delivery and advanced information technologies, as illustrated in Figure 4.

Figure 4: Synchronizing Core Financial System Components for Optimal Financial Performance
Synchronizing Core Financial Systems Components
 
Financial practices shall be identified and implemented by the Vice President of Finance under the advisement of the University Business Council to achieve optimum financial performance and to align with or, preferably, lead the development of best practice in higher education pursuant to professional and regulatory expectations for financial accounting and reporting. Specific references shall include standards the University is required to follow such as the Governmental Accounting Standards Board (GASB), and those best practices to which we aspire, such as those promoted by the National Association of College and University Business Officers (NACUBO), Association of College and University Auditors (ACUA), Committee of Sponsoring Organizations of the Treadway Commission (COSO), Sarbanes-Oxley Act (SOX), American Institute of Certified Public Accountants (AICPA), Institute of Internal Auditors (IIA), University Risk Management and Insurance Association (URMIA), and as applicable, the laws, regulations and standards of the State of Vermont.
 
Ethics

The University of Vermont is the flagship university of the State of Vermont and is accountable to its citizenry and government for truthful and transparent disclosure of its financial condition. As a key driver of academic, social, and economic progress within Vermont, UVM is responsible for exemplary leadership in business ethics, including integrity of financial reporting and the progressive management of risk to assure the financial health and wellbeing of the institution.

Code of Business Conduct

The University’s Code of Business Conduct requires all University faculty and staff to assume responsibility for safeguarding and preserving institutional resources so as to advance the institutional mission.

The Code of Business Conduct encourages all members of the University community to report possible fraudulent or dishonest conduct through the Ethics and Compliance Reporting and Help Line.

Oversight

The Audit Committee of the Board of Trustees oversight role is delineated in its charter. The Audit Committee freely engages management to better understand the University’s financial reports, particularly with respect to the process of internal control that guided their compilation. The oversight afforded by the Audit Committee can be seen as an ongoing conversation with management, rather than periodic check-ins. The Committee may also engage external auditors to review the continuous monitoring and improvement of this Manual.

Budget and Financial Reporting

The University maintains a single reporting structure for both budget reporting and financial reporting to ensure continuity and integrity between the financial management and the financial accounting and reporting segments of the University’s internal control environment. The University’s processes for strategic planning and risk management are integrated within the budget process and reflected in resultant budget plans. Transparency between the financial management and the financial accounting and reporting segments of the internal control environment requires this integration, as does the integrity of the University’s financial accounting and reporting.

Financial Operations and Cash

The University’s financial operations are based on an accrual basis of accounting. Much of the financial activity, however, is the receipt and disbursement of cash. This activity must be managed by implementing safeguards to ensure the proper management and reporting of this cash activity. This includes both digitized and paper monies and contractual obligations.

Additionally, the University’s financial operations are highly dependent on supporting documents and information (such as grant expense reports, receipts, contracts, etc.) that inform it about the nature of the cash itself; these documents make the institution more knowledgeable about the risks and consequences of its actions when conducting financial business.

Financial Operations and Customer Service

The University’s financial operations are also a major component of the customer service that the Divisions of Finance and Enrollment Management are responsible for delivering to faculty, staff, students, and other stakeholders. The requirements of optimal customer service and optimal internal control are not mutually exclusive. Efficient and effective service depends on the shortest, straightest paths of processing, as does internal control. This is especially true in today’s digital age when customers are able to access and initiate the transactions that inform and direct the movement of cash. University financial operations shall be guided by this principle to avoid bureaucratic largesse within its internal control environment without breaching the integrity of the financial data.

Financial Operations and Policy

The University’s financial operations shall be informed and guided by policy. Policy shall create the appropriate and judicious ‘space’ needed for people to conduct the financial business of the institution with responsibility and discretion. Policies shall also identify when requisite connections are necessary among persons conducting the University’s financial business and the persons responsible for managing it. Transparency between this financial operations segment and the financial management segment of the internal control environment requires these connections.

Chart of Accounts

The relevance and usefulness of the University’s financial accounting and reporting requires that the organizational structure of the institution be wholly and accurately reflected within its accounting and information systems. This shall be accomplished by the development and use of a chart of accounts. The responsibility of designing and maintaining the taxonomy of financial information through the chart of accounts and associated means of cataloging financial information shall receive the same attention and level of importance as other University-wide management and planning efforts. The capturing, storage, and retrieval of financial information shall efficiently and transparently support the financial operations, management, accounting, and reporting of the institution.

Financial Technology

Because many of the University’s financial transactions are at their core, cash transactions, the University’s financial technology must be viewed not as a system of computers, but as systems of cash movement and safekeeping and a warehouse for a comprehensive set of financial data that allows for the processing, compiling, summarizing and reporting of financial transactions. As such, the design and performance of these systems have direct influence on the financial operations of the University, including internal control and service delivery. Therefore, the planning and application of financial technologies shall occur in concert with the internal control environment and structure, and the financial service delivery model (see Figure 4).

Financial Service Delivery Model

The University of Vermont is a highly decentralized and complex organization, offering a wide variety of programs that experience increasing competitive pressure. This circumstance in turn increases the University’s demand for localized and specialized service delivery, but there are also operational requirements that are common to all areas. The University’s financial service delivery model will recognize and balance these two requirements by prudently discerning between that which is special and local in need and that which is common and central to all. The design of the service delivery model shall complement the tone and design of the internal control environment and structure.

The service delivery model also shall evolve in parallel with the evolution of the information systems supporting it. As the evolution of information technology increasingly allows customers to conduct and control their financial business, the University’s internal control structure and service delivery will evolve to reflect customer ownership of this responsibility.

Continuous Improvement of Financial Performance

As the University of Vermont faces challenges such as rising costs and diminishing resources while responding to higher expectations for service levels and accountability, it is imperative to create a culture of continuous improvement, innovation, and sustained excellence. Through a defined process of continuous improvement the University will identify, prioritize, implement, and institutionalize improved financial policies and procedures epitomizing best practice in higher education that are aligned with the University’s strategic objectives.

1.4 Key Roles and Responsibilities

Each core element of the University of Vermont’s internal control environment and structure has associated key roles and responsibilities, as shown in Figure 5 and discussed in detail below.

Figure 5: Key Roles and Responsibilities within University’s Internal Control Environment and Structure
Key
        Roles and Responsibilities

Audit Committee of the Board of Trustees, in addition to its responsibilities outlined in the Audit Committee Charge and Charter: Chief Internal Auditor:
External Auditor:
Chief Compliance Officer

President, in addition to responsibilities outlined in the University Bylaws and University Manual:

Budget, Finance and Investment Committee of the Board of Trustees:
The Provost and Senior Vice President, in addition to responsibilities outlined in the University Bylaws and University Manual:
Vice President for Finance and Treasurer, in addition to responsibilities outlined in the University Bylaws:
University Budget Director:

Supports long- and short-term planning needs of the University’s chief budget officer (Provost) and chief financial officer (Vice President for Finance.) Vice Presidents and Deans, in addition to responsibilities outlined in the University Manual:
Controller:
University Business Council (click here to visit the UBC web site):
Director of Business Practices and Planning
University Business Managers:
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Chapter 2 - Financial Accounting and Reporting

2.1 Overview

This chapter describes how the University’s financial accounting and reporting processes summarize and reports the results of the fiscal year and communicate the University’s financial position to its external stakeholders through the the Annual Financial Report (Figure 6).

Figure 6: Chapter 2 – Financial Accounting and Reporting
Financial Accounting and Reporting
 
The University of Vermont is required to report the results of its financial operations and financial position on an annual basis. The annual communication of the University’s financial condition in relation to the achievement of its strategic objectives is among the primary means by which the University establishes a basis for trust between itself and its many external stakeholders. The manner in which the University undertakes this fiscal responsibility impacts the integrity and reputation of the institution and the strength of that trust.

2.2 Annual Certification of Financial Reporting

The production of the University’s Annual Report promotes reflection on and resolution of the University’s annual business cycle. It helps the University punctuate its fiscal achievements and positions itself for the next business year. It is both an epilogue of the most recent cycle of management planning and a prologue to the next.

The certification of the annual report is a critical, value-added process that depends on participatory and transparent collaboration among all parties practicing full disclosure of relevant information.

The Board of Trustees’ Audit Committee, the Vice President for Finance, and the Controller have primary roles and responsibilities for assuring the accuracy, integrity, reliability, and completeness of the annual financial report, which is jointly certified by the President and Vice President of Finance. This management oversight of the University’s financial accounting and reporting is demonstrated and documented by the certification and sub-certification of official University reports on an annual and quarterly basis. (See Chapter 3 for procedures regarding sub-certification of financial reports.)

The University follows accounting standards for disclosure in financial reports as defined by Governmental Accounting Standard Board.

Complete and authoritative information on the preparation of the University’s annual audited financial statements is contained in the Audit Committee Charter & Guidelines and University Policy on Annual Financial Report. The following summary is intended to provide an overview of the process, highlighting key principles: 

The Audit Committee has overall responsibility for overseeing the quality and integrity of the University’s financial statements. The principal responsibilities of the Committee include:
The Audit Committee annually selects and retains an independent, external audit firm to conduct the annual financial attestation. The external audit function is to render an opinion based Accounting standards as to whether the financial statements presently fairly in all material aspects the financial position of the University at the fiscal year end. The external auditor provides the Audit Committee with an independent and objective perspective of both the University’s financial accounting and reporting, and its Internal Audit function. University management reviews the findings of the external auditor’s report and responds to the management letter that comments on the institutional financial internal controls, accounting policies and procedures, and resolves any disagreements between management and the external auditor regarding financial reporting;

The Vice President of Finance provides the Committee with the annual financial statement report and a statement certifying that:

2.3 Other Financial Attestation or Compliance Audit Reports

The Audit Committee also oversees the production of other mandatory annual financial attestation or compliance audit reports, including the annual audit reports on federal awards received as required by Office of Management and Budget Circulars (e.g., A-133) and the financial audit report of institutional National Collegiate Athletic Association (NCAA) programs.  (See Chapter 5 for procedures regarding these reports.)

2.4 Internal Audit

The Chief Internal Auditor operates independently of management and thus affords the Audit Committee with an objective internal perspective of the University’s financial accounting and reporting and the underpinning internal control environment and structure. The Committee meets periodically with the Chief Internal Auditor to remain apprised of Internal Audit’s role and planned coverage, and to discuss the integration of enterprise risk management within the University’s financial management processes.

The internal audit function performs a range of audits covering financial, operational, and information technology, including investigative audits stemming from fraud or dishonest conduct. Audit functions include assessments of the reliability of departmental financial information, compliance with University policies and procedures, safeguarding of assets and the effectiveness and efficiency of operations. Please see the Internal Audit Office Charter for authoritative information on internal audit functions and procedures; key internal audit responsibilities include:

2.5 Other Financial Reporting Requirements

In addition to the annual financial reporting requirements, the University is subject to other quarterly and annual reporting requirements. The University is required to file annually Federal Form 990T which reports the Unrelated Business Income Tax (UBIT) for which the University is responsible. This is an income tax imposed on the activities unrelated to the tax exempt mission of the University.
 
The University is also subject to Federal and State of Vermont employment-related taxes and is required to file quarterly and annual reports related to the withholding and payment of federal and state withholding and FICA taxes.
 
Monthly the University reports to the State of Vermont its liability for the remittance of Vermont Sales and Use taxes.

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Chapter 3 - Financial Management

3.1 Overview
 

The purpose of this chapter is to highlight both the centrality of the budget process to the management of the institution and the role that enterprise risk management plays between the setting of strategic objectives and the budgetary allocation of resources necessary to achieving them. From a financial point of view, budget planning is where management’s decision-making processes merge into a single, cohesive plan, where strategic objectives and risks are translated into financial resource allocations: University and unit-level budgets and budget elements (Figure 7). Two of the most important management considerations that must be translated into the University’s budget plans are (1) the means of achieving strategic objectives and (2) the manner in which risks to achieving those objectives are managed.
 

Figure 7: Financial Management Components
Financial Management Components

Opportunities are seldom without risk. Management’s aim is to appropriately balance risk in terms of elements of opportunity and elements of danger and to reflect those decisions within the budget planning process. Ultimately, the University’s strategic planning process identifies risk and the appropriate response (i.e., avoidance, acceptance, reduction, or sharing) and incorporates them into the University’s budget planning process (Figure 8).

Figure 8: University’s Annual Planning Cycle
UVM's Annual Planning Cycle

Financial Management throughout the Business Year
 

The financial management of University resources is accomplished on an annual basis by the President, Provost, Vice President for Finance, Vice Presidents, and Deans through the budget planning process. The monthly and quarterly financial management of resources is accomplished by the Vice President of Finance through the Vice Presidents’ and Deans’ quarterly budget sub-certifications, which include explanations of budget variances exceeding a set limit (see section 3.5 for a more detailed description.) The daily financial management of resources is accomplished by the Vice President for Finance and Treasurer and a senior team that includes the University Budget Director and the Controller, and by academic and administrative unit business managers from throughout the institution.

This chapter covers the following topics:


3.2 University Strategic Planning

Overview
 

Setting strategic objectives is the prerequisite to risk management and budget building. The University’s strategic planning process incorporates and synthesizes information from an enterprise-wide environmental scan of internal and external events affecting the achievement of the University’s objectives, distinguishing risk between dangers and opportunities.
 

Alignment of Strategy and Risk
 

Strategic initiatives are created to achieve strategic objectives. Both the objectives and the initiatives to achieve them, inclusive of the projects created by each initiative, benefit from an environmental scan based on an assessment of risks contained in the University’s risk continuum. Specific risks are identified and described, the probability or "exposure" of them occurring and impact is approximated, a risk response choice is made regarding how to best manage each risk including modification of the strategic initiative, and a budgetary estimate is crafted to ensure that the necessary resources are budgeted to implement the desired risk response intended by management. Management considers the institution’s risk appetite in evaluating strategic alternatives, setting related objectives, and developing mechanisms to manage related risks.

University-wide Strategic Planning
 

Information about the University’s strategic planning process, including roles and responsibilities, is available on the President’s web site.

3.3 University Budget Planning
 

Overview
 

The responsibility for strategic management and setting of overall direction of the University takes place at the highest level of the University and is reflected in the annual budget. The Board of Trustees sets the direction of the University through its adoption of the University strategic plan. The budget identifies resources each year for units to address the priorities established in the strategic plan. The Vice President for Finance, the University Budget Director, and the Associate Director of Financial Analysis & Budgeting, are responsible for preparing, monitoring, and reporting on the budget. The preparation of the budget starts with long-term planning parameters, the current year budget, and estimation of tuition revenue and state appropriation. The Board of Trustees approves the budget for the next fiscal year during its May meeting.
 

Developing the annual budget
 

The Provost and the Vice President for Finance hold annual budget planning meetings with Vice Presidents and Deans to build the University budget. The Office of Financial Analysis and Budgeting (FAB) provides informational and logistical support.
 

To help frame the budget, key units including (Enrollment Management, Student and Campus Life, Development and Alumni Relations, Research and Graduate Education and Finance and Enterprise Services) all identify critical planning, growth, and environmental factors to assist in estimating tuition revenue based on projected enrollment and current trends in admissions, applications, retention, transfers, bed space, etc. The estimation of state appropriations and grant activities all go into projecting overall revenue. In addition, the forecast of expense increases is based on experience and resources. Compensation, which includes salary and benefits, is the single largest area of the budget and is increased within the range of available funds to recognize market conditions together with contract commitments, such as those found in collective bargaining agreements.
 

The Vice President for Finance and the University Budget Director meets with the Budget, Finance and Investment Committee of the Board of Trustees regularly throughout the year regarding the budget. This includes a summary of budget-to-actual results on the current year budget and the preparation of the next fiscal year budget. The Committee meets more frequently than the full board. The Committee reviews the budget parameters for tuition rates and fees as well as all revenue and expenses. Understanding these assumptions provides the BFI Committee background to review a draft annual budget each April and then to review and recommend a budget to be acted on by the full Board at its May meeting. Approval of the budget in May confirms the budget for the succeeding fiscal year that will begin July 1.
    

Within the context of the approved budget, FAB produces individual budget general fund "targets" for each operating unit across the University for the up-coming fiscal year. (See http://www.uvm.edu/~ofabweb/ for more detailed instructions and support information.) The new year budget target sets the total amount of "budget authority" the unit is allowed for the fiscal year. In order to finalize the unit budget for the upcoming year, it is the responsibility of the Dean, Vice President, or unit manager to distribute the overall budgeted amount into salaries, benefits, and other operating expenditures, among all the individual departments. Targets for income/expense activities represent fiscal expectations of those units and are built from defined rate calculations and projected financial activity.
 

The Enterprise Performance Management (EPM) module within PeopleSoft is the method by which detailed new year budget and salary information is submitted by the individual areas. Established access and security roles ensure that only authorized individuals in each area have access to appropriate budget/salary data for their area/unit. EPM functionality allows individuals to be set up as "preparers"; others are "reviewers", which allows for a step-up review process. On an annual basis, FAB reviews the list of authorized users and their roles and requests security changes as needed.
 

The budgets in EPM include general fund revenues, general fund expenditures, and income/expense activities revenue and expenditures. Salaries are for all UVM employees with positions, regardless of funding distribution. Business managers have a variety of analytic reports within EPM that allow them to verify their work (e.g., salary distribution report, salary percentage increase report, etc.) Once work is completed by the preparer, the reviewer is responsible for checking the submission and either submitting it or rejecting it back to the preparer for further work. Once either a preparer or reviewer submits their work, they are locked out of the data and can see, but not change it, unless/until someone in FAB releases the lock. If the submission is rejected, then the unit preparer or reviewer must go back in and correct the submission and re-submit.
 

Once all new year data are submitted and approved for all units, FAB analysts review the budgets in detail by area to ensure the appropriate amount was budgeted for salaries and that the total amount budgeted does not exceed the amount allowed for that area overall (i.e., that it meets the target). Any and all variances from target are recorded on target-to-budget worksheets that are retained by FAB as documentation.
 

After all the unit budgets are reconciled, verified and balanced in EPM, a process is run against the EPM line item budget data to create budget journal entries. The data are reviewed and reconciled to the expected totals. The salary data (annual salary as well as chart string distribution) is taken from EPM and uploaded to the PeopleSoft Human Capital Management (HCM) module. Once confirmed, PeopleSoft "original budget" journal entries are posted to the PeopleSoft Financials system in the Commitment Control ledger (KK) prior to any new fiscal year activity. Reports are run against PeopleSoft Financials to ensure all the entries posted correctly and that the budget is reconciled to the EPM data. With the completion of these steps, salary information is in place to generate appropriate payrolls for the new fiscal year and budgets are in place in the financial system to allow and track fiscal year operations.
 

Monitoring Performance of Actual to Plan
 

During the year, it is the Dean, Vice President, or unit manager’s responsibility to monitor their budget on a monthly basis. PeopleSoft queries & reports can be run at any time to monitor budget and actual activity for any given operating unit, department, program, or activity. On a quarterly basis, the Vice President for Finance reports to the Board of Trustees Budget, Finance and Investment Committee. Effective in FY 2010, Deans and Vice Presidents will be asked to certify the results of actual expenditures compared to budget (see section 3.5.) The Vice President for Finance provides a high level review of the budget-to- actual results, and highlights any major changes in revenue and expenses.
 

3.4 Sub-Certifications of Quarterly Financial Reporting
 

Overview

The Vice President for Finance coordinates quarterly certifications of financial accounting and reporting. These processes of regular and frequent review of unit-level financial activity are the primary means of ensuring transparency and the disclosure of material information by the University’s financial accounting and reporting processes. See Policy on Monthly Budget Sub-Certifications (to be developed.)
 

The University “closes its books” on a monthly basis to allow timely and accurate reports of budgeted-to-actual expenditures. On a quarterly basis, Vice Presidents and Deans (or their designees) certify their unit’s budget-to-actual expenditures report to the Vice President for Finance. On a quarterly basis, the Vice President for Finance certifies a combined budget-to-actual expenditures report for the entire University.
 

Procedures
 

The Vice President for Finance oversees the process of quarterly certifications and provides clear guidance and instructions to Deans and Vice Presidents with respect to the due diligence activities required before their certifications can be signed and submitted. Quarterly certifications must be submitted using the Budget-to-Actual Certification Statement (or appropriate substitute), and will address the following issues:
Exceptions reported as part of the interim certification process are to be communicated and reviewed with respect to the achievement of strategic objectives, exposure to risk, and effect upon the University’s Internal Control Environment and Structure. In addition, individual transactions that have, or may have, a material financial impact will be identified, communicated, and reported by management to the Audit Committee.
 

3.5 Continuous Improvement of Financial Performance
 

Overview
 

The University operates in a constantly changing environment and is a complex system of varied but interrelated processes intended to serve a broad array of clients and stakeholders. As UVM faces challenges such as rising costs and diminishing resources while at the same time responding to higher expectations for service levels and accountability, it is imperative that it continuously search for ways to improve, and at times, transform the institution. Through a defined process of continuous improvement the University will identify, prioritize, implement, and institutionalize improved financial policies and procedures epitomizing best practice in higher education that are aligned with the University’s strategic objectives. This will lead to a culture of continuous improvement, innovation, and sustained excellence.
 

In September 2009, the University Business Council (UBC) assigned a sub-committee to develop a continuous improvement process that will become the basis of a new chapter in the University’s Financial Management-Operations Manual when it is completed and approved by the Vice President of Finance and Treasurer.
 
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Chapter 4 - Financial Service Delivery Model

Chapter content is currently under development by the UBC Service Center Sub-Committee

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Chapter 5 - Financial Operations

Figure 10: Financial Operations Overview
Financial Operations Overview
 
5.1 Overview and Framework of Internal Controls

Internal controls are dependent upon sound policies and the alignment of those policies with the University’s strategic objectives. Where policy identifies what must be done, procedures describe how it is to be done, and internal controls provide reasonable assurance that both will occur during the daily transacting of University business referred to here as the University’s financial operations.

The purpose of this section is to highlight the inseparable relationship between the discipline of internal controls and the outstanding performance of financial operations. The discipline of internal controls does not run contrary to operational efficiency and effectiveness; instead it is an enabler of these qualities. Additionally, the discipline of sound internal controls is not an inhibitor of initiative, but is instead an enabler of action in models of distributed or shared authority, responsibility, and accountability. The University relies upon its internal controls for the reliability of its financial accounting and reporting, and compliance with applicable laws and regulations.

Internal controls must be implemented within the fabric of operational procedures, not as an additional layer(s) or appendages of procedure. This is especially important with respect to the implementation of automated internal controls within the University’s primary financial system, PeopleSoft. The general guideline for internal controls is the same as that for efficient and effective operation: seek the shortest straightest path between two points with a reliable means of reconciling what entered to what exited. 

The University’s financial operations cannot be secured by internal controls alone. Internal controls are but a single component of the overall financial environment at the ground level where the University’s business transactions are processed. To be effective, internal controls must not only be well documented and tested, but aligned with and reinforced by sound policy, procedure, and financial management processes.

The topical areas included in this section are:
Overview

Sarbanes-Oxley Section 404 requires executive management to make an assessment of internal controls over financial reporting. Section 404 further states that, for making such assessment management should use an internal control framework based on which management should issue a report.

It is the responsibility of the Chief Internal Auditor to recommend a formal framework of internal control to the Audit Committee that will be the basis for evaluating internal controls within the University’s financial operations and overall financial environment. The framework shall be one generally accepted by the accounting and/or auditing professions.

Procedures

The University has adopted the Coso Internal Control Model (Figure 11).

Figure 11: Coso Internal Control Model
Coso Internal
        Control Model
 
Internal Controls for Online Business Transactions

Objectives

Internal controls, no matter the exotic technology, have standard objectives. Broadly speaking, the standard control objectives for business transactions, with or without the support of information technologies, are:
Regardless of the state of the technology underpinning the financial operations of the university, the control objectives are the ubiquitous standard against which financial transactions are measured. The introduction of new technology to support the university’s financial operations does not change these objectives. The control objectives should always be met. However, the manner in which they are met may change, i.e. from manual and paper-based, to automated and paper-less, etc.  

The table below illustrates that each of the University’s financial systems are to be appraised with respect to how it meets the standard control objectives for online business transactions. The Director of Business Planning and Processes maintains the inventory of the University’s financial systems to be appraised in this manner and it appears in the Appendix to this Manual.
 
TABLE 1 – Crosswalk of Internal Control Objectives per Financial System
FOCUS IS ON
THE SYSTEM
How have INTERNAL CONTROL OBJECTIVES been addressed?
Validity of Transactions Mutual authentication of identity Authorization Data integrity and confidentiality Non-repudiation Audit-ability
Budget





Banner





PeopleSoft HCM





Etc.





                  
Internal Control User Parameters

Internal controls, especially when automated, require a set of working parameters against which actual or attempted financial transactions may be assessed regarding whether they are, or are not, appropriate. Responsibility for these parameters rests with the owner of each financial operation listed in the sections of this chapter and they are to be maintained in the appendix of this manual. Each owner should address the following questions to document the set of user parameters for each system that must be used to complete the financial operation in each section of this chapter:
  1. Who will use the system?
  2. What will be the rights and responsibilities of the users?
  3. How will the remote and local users access the system?
  4. When can they access the system?
  5. Who will decide and grant user rights?
  6. How is user activity tracked and recorded?   
  7. What disciplinary actions will be taken for errant users?
  8. What are the procedures for responding to security breaches?
The table below illustrates that the University’s inventory of financial systems needs to be managed with respect to both the individual and aggregate user parameters derived by the owners of each section in this chapter. The Director of Business Planning and Processes is responsible for managing the aggregate impact of user parameters in this chapter.

TABLE 2 – Crosswalk of Internal Control User Parameters Per Financial System
FOCUS IS ON
THE USER
How have USER PARAMETERS been established for internal control?
Who will use the system? What are the rights and responsibilities of the users? How will remote and local users access the system? When will
they access the system?
Who will
decide and grant user rights?
How is user activity tracked and recorded? What disciplinary actions may be enforced? What are the procedures for responding to security breaches?
PeopleSoft FSCM







Budget







Banner







PeopleSoft HCM







Etc.







                         
Internal Control Considerations

Standard internal control considerations for business transactions existed before the introduction of online technologies. The need for these standard considerations does not change in the online business environment. What has changed is how they are performed.

Internal controls function in aggregate and are commonly referred to as a series, or process, of "checks-and-balances". Whenever a new technology is added or changed to support a financial operation, the series of checks-and-balances is affected in some way.

Each financial operation listed in the sections of this chapter is to demonstrate that these standard internal control considerations have been assessed and satisfied in accordance with the University’s expected level of operating risk. The internal control considerations for business transactions include:
Essentially, these internal control considerations employ the parameters in Table 2 to achieve management’s control objectives listed in Table 1.

Table 3 illustrates that each of the financial operations in the sections of this chapter need to identify how they have satisfied these internal control considerations to maintain a prudent series of checks-and-balances. Additionally, the aggregate impact of each section’s decisions on the overall series of check-and-balances must be understood and managed.

TABLE 3 – Crosswalk of Internal Control Considerations Per Financial Operation
FOCUS IS ON THE TRANSACTION How have INTERNAL CONTROL CONSIDERATIONS been satisfied for each financial operation?
Authorization of transactions Separation of duties Documentation Access control Independent Verification
Accounting Framework




Fund & Source Accounting




Tax & Treasury Operations




Institutional Investment Portfolio




Prepaid Expense & Deferred Revenue




Etc.





Roles and Responsibilities

Director of Business Planning and Processes – Overall responsibility for this section of the Manual lies with the Director of Business Planning and Processes, as does the overall quality of internal controls available for the University’s online business transactions. The Director’s role is to maintain the inventory of the University’s financial systems to be appraised and to collaborate with the owner of each financial operation listed in the sections of this chapter in order to complete Table 1, Table 2, and Table 3. The Director is also responsible for managing the aggregate impact of each table to the University’s overall financial operations.

Section Owners of this Chapter – The owner of each financial operation listed in the sections of this chapter is responsible for documenting the internal control user parameters with respect to their clients’ execution of online business transactions (i.e. Table 2) and for addressing the standard internal control considerations (i.e. Table 3). The owners collaborate with the Director of Business Planning and Processes to maintain these tables in the Appendix of this Manual.

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5.2 Accounting Framework

Accounting Principles
Chart of Accounts Overview
Chartfields
Creating New Chartfield Values

Accounting Principles

UVM, as a publicly-affiliated University, follows Generally Accepted Accounting Principles (GAAP) for governmental business type activities (BTA) as defined by the Governmental Accounting Standards Board (GASB) of the Financial Accounting Foundation (FAF). 

GAAP for public universities is determined by GASB, the American Institute of Certified Public Accountants (AICPA), the National Association of University Business Officers Accounting Principles Committee (NACUBO APC), and Governmental Finance Officers Association (GFOA). (Source: NACUBO Financial Accounting & Reporting Manual)

Chart of Accounts Overview

The PeopleSoft Chart of Accounts (COA) structure uses “chartfields” (or segments) to record the financial effect  (balance sheet, P&L, etc.) of each transaction. The chart of accounts is intended to consider all financial reporting needs, providing sufficient flexibility to allow for the development of financial statements for management, as well as, external readers. It serves as the basis for recording the day-to-day financial operations of the University. 

The use of chartfields separates the unique aspects of each transaction into relational segments for summarization and reporting. Each chartfield captures a different element of information (Who, What, Why, How, Where?) regarding the transaction. It is the combination of chartfields that brings meaning to the transaction. The use of multiple chartfields allows for flexible data accumulation and reporting of the financial aspects of projects, activities, programs, events, etc. that occur across UVM organizations or funds.
 

Chartfields

Please note that the following examples of chartfield values are intended to illustrate how the chart of accounts is constructed and do not represent a complete list of current values. You can view all current values for a given chartfield by logging in to PeopleSoft Financials, navigating to Set Up Financials/Supply Chain> Common Definitions> Design Chartfields> Chartfields> Reports and clicking on the appropriate chartfield.

UVM Chartfields

Name Account Operating Unit Dept Fund Source Function Project Program Purpose Property
Length 5 2 5 3 6 3 6 4 4 4
XXXXX XX XXXXX XXX XXXXXX XXX XXXXXX XXXX XXXX XXXX

Account

The Account Chartfield is used to categorize the nature of the transaction as a specific type of revenue, expense, asset or liability.

Examples:

Value Description
Value Description
Assets 10001 General Receipts Revenues 40111 Undgrd In State
11001 Accts Rec - PeopleSoft 40521 Fees - Application
Liabilities 20001 Accts Payable - General Expenses 50100 Fac Sal - Tenure Trac
21101 Deposits - Tuition 59910 Full Benefit rate


60001 Office Supplies


60501 Airfare Domestic

Operating Unit

The operating unit chartfield identifies University units or groups that have a need for full financial reporting, including balance sheets, to support financial management and development/validation of pricing structures. In addition to the University’s Schools and Colleges, this includes auxiliaries and key service centers. Generally, Operating Units represent higher level organizations also captured in the organizational hierarchy established in the Department chartfield.

Examples:
Value Description
01 General University
12 College of Arts & Sciences
15 College of Medicine

Department

The department or organization identified with the transaction represents the UVM academic or operating unit “responsible” for, or affected by, the transaction. Units generally meet the following criteria to be considered a department or organization:
  1. Ongoing business purpose  and objective within the University
  2. Has an established budget
  3. Has fiscal oversight by a responsible person
  4. Has positioned employees
  5. Generally, occupies space
Examples:

Value Description
University

     Provost

          College of Arts & Sciences 52000 A&S Dean’s Office

52010 ALANE US Ethnic Studies

52020 Anthropology

52030 Area & Int’l Studies

52040 Art

52050 Asian Studies

Fund

Used to track spending restrictions and designations and to categorize UVM’s net assets for external reporting.

Examples:
Class Value Description
Unrestricted 100 Unrestricted Gen Fund
200 Unrestricted Plant
Restricted
Expendable
300 Sponsored Grants & Contracts
310 Gifts
320 Endowment Income
Restricted 400 Endowment
Agency 900 Agency Funds

Source

The Source is used to identify UVM’s revenue earned from educational and operating programs, sponsored projects, contributions from donors, endowment income, etc. The chartfield is intended to identify/record the funds generated or expended in connection with each transaction. It serves as the identifier for each “pool” of money, gift, endowment, etc. that requires separate budgeting, financial management and/or reporting.

Examples:
Group Value Description
General Operating 100001 GOF - General Operating
100005 GOF - Cost Sharing
100025 GOF - Faculty Start Up
Sponsor Funds 201001 Federal Agency
201051 Hatch
201101 State of Vermont
Endowments 300103 LA Gomez Jr Endow Fd
300202 Wilcox Memorial Cancer Rsch
300311 M Zadek Endowment Fd
Capital 700001 Pooled Plant Funds

Function

This chartfield is used to designate the purpose of the transaction as it applies to federal and other external reporting requirements for both revenue uses and expense uses. This chartfield is essential for compliance with federal cost principles.

Examples:

Value Description
Revenue 101 Tuition and Fees
103 Auxiliary Enterprises Rev
Expense 201 Instruction
311 Research - Spon
312 Cost Share Research - Spon
461 Auxiliary Enterprise Exp
Balance Sheet 000 Unspecified - Balance Sheet Only

Project

The project segment is used to support identification of transactions associated with a “project” or “grant”.  It provides for additional functionality unique to projects accounting (project life, defined period, defined activities, etc.)  Projects are not limited to activities associated with sponsor awards.  At UVM, the projects chartfield and associated projects accounting functionality will be used to support financial management associated with sponsor grants and contracts, capital projects, other internally funded projects, and faculty discretionary activities. Projects can be broken down into specific phases, segments and activities for lower level tracking and control. Characteristics of a project value typically include the following:
  1. Defined begin and end dates
  2. Designated budget or funding support
  3. Specific group of participants
  4. One time event or initiative
  5. May cross fiscal years
  6. May have distinct reporting requirements
Project values are assigned using the next ID available, as the projects are set up or created within PeopleSoft.

Program

This field is used to record revenue and expense transactions associated with formal or informal programs including public service activities, academic initiatives, cross disciplinary initiatives and centers, athletic areas, etc. Values in this field may include degree and non-degree programs, courses of study, scholarship programs and student service activities. Programs may be groups of activities conducted within or across departments or organizations.

Examples:

Value Description
Institutional Operations 0201 Public Occasions
Academic 0301 Physician Scientist Prgm
0312 John Dewey Honors Prgm
0346 Reading & Language Arts
0362 Cream Herd
Athletics 0702 Athletic Youth Camps
0706 Baseball

Purpose

This Chartfield field provides a tracking mechanism for University-wide purposes and activities occurring within and/or across departments and organizations, programs, and funds. The ability to record costs associated with faculty recruiting is an example of this field’s use. Such costs will continue to be identified by their “natural” account (travel, etc.) by use of the account field, but in addition they can be associated with the purpose of faculty recruiting. The field can be used to track both revenues and expenses to a specific purpose or activity. 

University-wide activities, as well as, recurring activities within departments, will be assigned specific values in the “Purpose” chartfield. In addition, “generic” values will be established to be used by departments to track initiatives, purposes or activities unique to their organizations.

Examples:

Value Description
Seminars 0239 Graduate Humanities Seminar
0240 Seminar A
- 0265* - Seminar Z
Outreach 0305 Across the Fence
Recruiting 0351 Faculty Recruiting
0352 Staff Recruiting
0355 Recruiting – Exec A
- 0359* - Recruiting – Exec E

Property

Used to track maintenance costs, capital additions and deletions associated with University Buildings and Land.

Examples:

Value Description
Buildings 0001 284 East Avenue
0052 Englesby House
0075 Health Sci Rsch Facility
Land 3501 Intramural Field 1
5011 University Terrace

Additional Project-Related Fields

In addition to the project id chartfield, there are three other fields that are used to gather information specific to projects. This data is used by the Projects, Accounts Receivable, Contracts and Billing Modules. Therefore, this information is required within the financial system on transactions that are using a project id. The three fields are as follows.

PC Business Unit – defines the type of project for the Project Costing and Grants modules. UVM currently has two options for PC Business Unit, and all projects at UVM are categorized as either Sponsored Contracts or Non-Sponsored Projects.

Business Unit Description
GCA01 Sponsored Contracts
PC001 Non-Sponsored Projects

Project Type - further defines the type of project. Sponsored Projects (business unit GCA01) can have the following project types:

Project Type Description
AGREL Agriculture Related
BBUMP Budget Bump Projects
CNVTD Converted Project
P INC Program Income Project
SALCP Salary Cap Cost Share
SPCAP SP Capital Projects
SPSTD Sponsored Project - Standard
STDFA Student Financial Aid

Non-Sponsored Projects (business unit PC001) can have the following project types:

Project Type Description
AGNON AG-Nonmatched
BILLN Billing-External
CAPTL Capital Projects
CLNTR FAHC Clinical Trials - Non-Cap
CNTED Continuing Education - Non-Cap
DFMNT Deferred Maintenance - Capital
DFMOM Deferred Maintenance - O & M
ENERG Physical Plant Energy - Capital
ENRGO Physical Plant Energy - O & M
FCLTY Faculty Discretionary - Non-Cap
INTCH Internal Charges - Non-Cap
NOCAP Other Non-Cap
RESLF Residential Life - Capital
RSLFO Residential Life - O & M
START Faculty Start-Up
UVMPR UVM General Financial - Non-Cap

Activities – this field allows for a more granular-level detail about the project. The activities associated with a project are defined as part of the initial project set up process. When selecting the activity value to use related to a transaction, such as a journal entry, the list of available activities will only be values that have been associated with the project during the set up. 

The following are the values that are currently assigned to each the PC001 business unit and the GCA01 business unit. Although there are 16 values currently assigned to the GCA01 business unit at this time, the standard activity is always SPNS. The only time that any of the other activities would be used in conjunction with GCA01 is if UVM receives as sponsored award for a construction project.

Business Unit PC001
Business Unit GCA01
Activity Description Activity Description
AEGN General A & E AEGN General A & E
AGNM AG-Nonmatched BIDD Bidding
BIDD Bidding BLDG Building & Site Construction
BLDG Building & Site Construction CADM Construction Administration
BLLN Billing - External CDOC Construction Documents
CADM Construction Administration CEST Cost Estimating
CDOC Construction Documents CPTL Capital Project Default
CEST Cost Estimating DSDV Design Development
CLIN FAHC Clinical Trials EXST Existing Conditions
CNV4 Capital - For conversion FEAS Feasibility Study
CNVD CNVD Temp to Correct Blankets LEED LEED Consulting
CNVJ RL Capital - For Conversion OWNA Owner's Administrative Costs
CPTL Capital Project Default OWNM Owner Managed Construction
CTED Continuing Education PERM Permit Costs
DFDO Deferred Maintenance - O&M SCDS Schematic Design
DFRD Deferred Maintenance - Capital SPNS Sponsored Project
DSDV Design Development

EXST Existing Conditions
FCLT Faculty Discretionary
FEAS Feasibility Study
INTC Internal Charges
LEED LEED Consulting
NCAP Other Non-Capital
NRGC Physical Plant Energy - Capital
NRGO Physical Plant Energy - O&M
OWNA Owner's Administrative Costs
OWNM Owner Managed Construction
PERM Permit Costs
RLBD Res Life Bidding
RLBL Res Life Blgd & Site Construct
RLCA Res Life Construction Admin
RLCD Res Life Construction Document
RLCE Res Life Cost Estimating
RLDD Res Life Design Development
RLDF Res Life Default
RLEC Res Life existing Conditions
RLFE Res Life Feasibility Study
RLLD Res Life LEED Consulting
RLMO Residential Life O&M
RLOM Res Life Owner Managed Constr
RLOW Res Life Owners Admin Costs
RLPR Res Life Permit Costs
RLSD Res Life Schematic Design
SCDS Schematic Design
STRT Faculty Startup
UVMD UVM General Financial Activity
      
Analysis Type – this field is used to populate various tables within PeopleSoft for accumulation of data related to projects.

Analysis Type Short Description Notes
ACT Actual Cost Expenses from Accounts Payable Module. The AP expenses are retrieved from the AP module on a nightly basis when the transaction is ready to be interfaced into the PROJ_RESOURCE table
BAJ Billing Adjustment Billing Adjustment from Billing Module. These transactions are created when billing adjustments occur in the billing module and are then interfaced into PROJ_RESOURCE
BIL Billable Amount Amount that can be billed. These rows are created by a process called Pricing which is run on eligible transactions when the expenses are interfaced into PROJ_RESOURCE
BLD Billed Amount  Amount that has been billed. For grants that are billed on an as-incurred basis, after the bill has been created, the transaction is marked with a BLD analysis type
BUD Total Cost Budget When a grant budget is set up by GCA using the Grants Budgeting page, a BUD row is created. If the budget is set up with a budget transfer instead, no BUD row is created. Therefore, Budget information should be reviewed in Commitment Control, not in the PROJ_RESOURCE table since the budget information in PROJ_RESOURCE may not be complete. That is ok because the budget information in PROJ_RESOURCE is not used for anything at this time
CAC Cost Sharing Actuals Cost Share Expense from Accounts Payable Module. Any expense that occurs in the AP module for a transaction with a cost-share function will be tagged with this analysis type
CAP Campus Archeological Program Markup based on expenses. Only certain transactions for the Consulting Archeology program are subject to this markup
CBU Cost Sharing Budget When a grant cost-share budget is set up by GCA using the Grants Budgeting page, a BUD row is created. If the budget is set up with a budget transfer instead, no CBU row is created. Therefore, Budget information should be reviewed in Commitment Control, not in the PROJ_RESOURCE table since the budget information in PROJ_RESOURCE may not be complete. That is okay because the budget information in PROJ_RESOURCE is not used for anything at this time 
CCN Cost Share Conversion Only Converted Cost Share expense. These are cost-share expenses that were converted into PeopleSoft from the FRS system
CEX Cost Sharing Travel Expenses Cost Share Expense from Expenses Module. Any expense that occurs in the Expenses module for a transaction with a cost-share function will be tagged with this analysis type
CFA Cost Sharing F&A   F&A that is calculated on Cost Share Transactions. This is just for reporting and analysis purposes; it is not a true expense to the project
CGE Cost Sharing GL Expense Cost-Sharing Expense from a journal entry. The person doing the journal entry should correctly select 'CGE' if the transaction is a cost-sharing transaction
CNV Conversion Only Converted expense. These are expenses that were converted into PeopleSoft from the FRS system
CPY Cost Share Payroll Cost-Share expense on a payroll transaction
CWF Reclass to Interest Project Stands for Common Wealth Fund. Should be used on a journal ONLY after checking with GCA. Contact GCA for more information
EXP Travel Actual Expenses   Expense from an Expense Report. The expenses on expense reports are retrieved from the Expenses module on a nightly basis when the transaction is ready to be interfaced into the PROJ_RESOURCE table
FBD Fixed Cost Billed Amount  Transaction recorded for fixed cost billing
GCP Manual CAP Adjustment Adjustment to a CAP expense done manually with a journal entry. See CAP information above
GFA Manual F&A Adjustment  Manual adjustment to F&A done by GCA department when the system-calculated F&A needs to be adjusted
GLE GL Expense Expense from a journal entry
GLP Project Payroll Payroll expense
GLR GL Revenue  Revenue transaction from the General Ledger or from miscellaneous deposits to revenue accounts
OLT Over Limit An amount that would normally be billable except that the expense takes the award over the limit of what can be billed
SFA Sponsor F&A Sponsor Facilities and Administration Expense. This is the F&A amount that will be charged to the sponsor. The SFA rows are calculated based on the award set up. Awards are set up to use certain F&A rates, which are based on certain types of expenses. The rates and rules for which expenses are subject to F&A can vary by award
TBP Third Party Budget Budget for Third Party-Contact GCA for more information
UAJ Prepaid Utilization Adjustment  Has to do with Grant billing adjustments on prepaid contracts
UTL Prepaid Utilization (Billing) Has to do with Grant billing on prepaid contracts. Essentially, as we incur expenses on pre-paid contracts, we utilize the pre-paid dollars and create UTL rows so that we can recognize the revenue as we incur the expenses
WFA Waived F&A F&A expense that is waived- that is, UVM cannot recover this F&A expense by billing the sponsor, based on the contract. This is just for reporting and analysis purposes; it is not a true expense
    
Creating New Chartfield Values

New Account Values

New chartfield values are created centrally by the Controller's Office, with the exception of project values. You may request a new chartfield value by submitting a footprint. See “New Project Values” below for the responsibility for new projects.
 

The Account chartfield values are used in the PeopleSoft Budgeting Module (EPM), Human Resources System (HCM) and the Financial & Supply Chain Management System (FSCM), and the list of values in each database must be kept in synch. Thus, one of the databases needs to be the master source of the values. FSCM is the system of record and all new values for the Account chartfield are entered in FSCM and messaged via Integration Broker to HCM and EPM. Requests for a new value are submitted via the Footprint system. Depending on the nature of the request (actuals vs. budgetary), a variety of individuals from the following areas will be added to the footprint; BPRT, Financial Reporting & Accounting Services, FAB, GCA, Human Resource Services, and Procurement Services.

New Account Value

The account chartfield is used to categorize the nature of the transactions as a specific type of asset, liability, equity, revenue or expense. This is a list of the ranges that each type of account falls into:

Assets 10000 - 19999
Liabilities 20000 - 29999
Equity 30000 - 39999
Revenue 40000 - 49999
Expense 50000 - 99999
 
There are also accounts that are for budgetary uses only. The University practice is to budget for revenue and expenses, therefore the budgetary accounts relate only to revenue and expenses. Budgetary accounts follow an alpha-numeric nomenclature, for example E6000 – General Operating Expenses.

Update Account Value

There may be various reasons that UVM needs to update information about specific account values or trees related to managing the hierarchy of accounts. Some of the specific reasons for change are:

Inactivate Account Value


When UVM determines that an account value is no longer going to be used, an effective dated row will be added to the account set up screen with an inactive status. Specific consideration needs to be given to the timing of these changes and how transactions are impacted. Typically, an inactive record of will correspond with the end of a fiscal year. Ideally, if this is a budgetary account the change will be known and/or in place prior to the annual budget process. Requests for adding, updating or inactivating an Account value will need to be entered using the Footprint tracking system. This will provide a history of all requests for audit documentation. Depending on the nature of the request (actuals vs. budgetary), a variety of individuals from the following areas will be added to the footprint; BPRT, Financial Reporting & Accounting Services, BRM, GCA, Human Resource Services, and Procurement Services.

New Department/ Operating Unit Values

Departments and Operating Units (OU) are used in the PeopleSoft Budgeting Module (EPM), Human Resources System (HCM) and the Financial & Supply Chain Management System (FSCM), and the list of departments and OU in each database must be synchronized. Thus, one of the databases needs to be the master source of departments. FSCM is the system of record and all new values for the Department and OU chartfields are entered in FSCM. HCM requires more information about departments, and HCM security depends on departments. HCM also has a small number of departments used for non-financial purposes (FAHC and Retirees). Due to those requirements, when a new value is created in FSCM a notification via Footprints is given to HCM and EPM to manually add the new value. All new values for the OU chartfield are entered in FSCM and messaged via Integration Broker to HCM and EPM.

New Department Value

The process through which we determine if a new department should be added typically starts with a meeting with the unit making the request. In addition to the unit, the meeting will also include representatives of the BPRT, Controller's Office, and Human Resource Services, and the appropriate BRM analyst(s).  Using the information that is provided by the requesting unit, we will determine if the request meets the COA definition for a department.  The definition that is used is “The department or organization identified with the transaction represents the UVM academic or operating unit “responsible” for, or effected by the transaction.”  Units generally meet the following criteria to be considered a department or organization:
New academic departments require Board approval.

There are also instances where it is appropriate to create a sub-department. A sub-department is defined as a subunit of a department. It may have positions, people, and budget, but it is not required. These can be used to track activities or functions performed by the department and it does not require Board approval. The nomenclature for sub-departments generally shows the relationship with the department. An example of a department and sub-department is:

CEM Dean’s Office 54000
   CEM Student       Services 54002
   CEM Computer Facility 54004

CEM Student Services and CEM Computer Facility are both sub-departments of CEM Dean’s Office.

Once it has been determined that a new department is needed, a Footprint will be set up by the Controller's Office to track progress of the set up. 

Update/Inactivate Department Value

The process in which we determine the impact of organizational changes related to departments typically starts with a meeting with the unit making the request. In addition to the unit, the meeting will include some combination of Controller's Office representative, BPRT Analyst(s), the Director HRS Operations, and the appropriate FAB analyst(s). Using the information that is provided by the requesting unit, we will determine if there is a need for the existing department structure to be updated or if there is a need for a new department value to be created.
 
When the reporting structure changes for a department(s), we will discuss if the responsibilities and/or the ongoing work of a department will stay the same or is there perhaps a merger of departments that will result in a new department structure. If the department work will stay the same in nature and it is only the reports to area that is changing, we can manage this with a change to the department tree that places the existing department value in the new node of the tree. As long as this move falls within the same Operating Unit, this type of change will not require new chartstrings to continue to function. There will be a few areas to update as follows; all of this activity will be tracked in a Footprint opened by a Controller's Office representative.

New Operating Unit Value

The unit business manager making the request to add an Operating Unit (OU) will initiate the process by requesting a meeting. In addition to the unit business manager, the meeting will also include BPRT analyst(s), member(s) of the Controller’s Office, the appropriate FAB analyst(s), and representatives from other areas as needed. Using the information that is provided by the requesting unit, we will determine if the request meets the UVM Chart of Accounts (COA) definition for an Operating Unit. The definition that is used is “The Operating Unit identifies university units or groups that have a need for full financial reporting, including balance sheets, to support financial management and development/validation of pricing structures”. The group will then determine if the proposed request meets the definition of an OU and therefore should be forwarded to the Vice President for Finance for approval.

Once the request for a new OU has been approved, a Footprint will be set up by the Controller's Office to track progress of the set up.

Updating/Inactivating Operating Unit Value

The unit business manager making the request to update or inactivate an Operating Unit (OU) for reasons such as changes to the hierarchy or a description change will initiate the process by requesting a meeting. In addition to the unit business manager, the meeting will also include BPR analyst(s), member(s) of the Controller’s Office, the appropriate FAB analyst(s), and representatives from other areas as needed.
 
The group will then determine if the proposed request to update/inactivate an OU is sufficient to warrant an update to PeopleSoft and therefore should be forwarded to the Vice President for Finance for approval.

Once the request has been approved, a Footprint will be set up by the Controller's Office to track progress of the set up. New Fund/Function Values

New Fund Value

While the addition of a new fund value is very infrequent, the process in which we determine if a new fund should be added typically starts with a meeting with the central unit making the request. In addition to the unit, the meeting will also include appropriate BPRT analyst(s), the appropriate FAB analyst(s), and the appropriate member(s) of the Controller’s Office. Using the information that is provided by the requesting unit, a determination will be made if the request meets the COA definition of a new fund.

The fund chartfield is used to track spending restrictions and designations and to categorize UVM’s net assets for external reporting. Following is a list of the groupings for the fund values:

Unrestricted Operating 100-129
Unrestricted Designated 130-149
Unrestricted Inc & Exp   150-199
Unrestricted Non-Operating 200-299
Restricted Expendable Oper  300-349
Restricted Expendable Non Oper 350-399
Restricted Non-Expendable 400-499
Capital Assets Net of Debt  500-599
Agency Funds     900-999

Update/Inactivate Fund Value
 
The process in which we determine the impact of financial management or reporting changes related to funds typically starts with a meeting with the central unit making the request. In addition to the unit, the meeting will also include appropriate BPR analyst(s), the appropriate FAB analyst(s), and the appropriate member(s) of the Controller’s Office. Using the information that is provided by the requesting unit, we will determine if there is a need for the existing fund structure to be updated or if there is a need for a new fund value to be created.
 
There will be various procedural and functional items to update with the change of a fund value; all of this activity will be tracked in a Footprint opened by a Controller's Office representative.

New Source Values
 
The source chartfield values are used in the PeopleSoft Budgeting Module (EPM), Human Resources System (HCM) and the Financial & Supply Chain Management System (FSCM), and the list of values in each database must be kept in synch. Thus, one of the databases needs to be the master source of the values. FSCM is the system of record and all new values for the chartfields are entered in FSCM and messaged via Integration Broker to HCM and EPM.
 
New Source Value

The Source chartfield is used to identify UVM’s revenue earned from educational and operating programs, sponsored projects, contributions from donors, endowment income, etc.  The chartfield is intended to identify/record the funds generated or expended in connection with each transaction.  It serves as the identifier for each “pool” of money, gift, endowment, etc. that requires separate budgeting, financial management and/or reporting.

General Institutional Sources 000100-000199
General Operating Sources   100000-101999
Income & Expense Ops 102000-104999
Non-General Fund Sources 105000-105999
Commitment Fund Sources 200000-200099
Sponsor Sources    201000-201199
Loan Fund Sources 202000-202499
Restricted Endow & Similar Funds 300000-399999
Restricted Gifts   400000-409999
Plant Fund Sources     700000-709999
SGG Sources 800000-809999
Agency Sources  900000-999999
                   
Requests for new values are submitted via the Footprint system. Depending on the nature of the request, a variety of individuals from the following areas may be added to the footprint; BPR, FRAS, FAB, GCA, Development.

Update Source Value

There may be various reasons that UVM needs to update information about specific source values or trees related to managing the hierarchy of these chartfields. Some of the specific reasons for change are:
Requests to update values are submitted via the Footprint system. Depending on the nature of the request, a variety of individuals from the following areas may be added to the footprint; BPR, FRAS, FAB, GCA, Development.

Inactivate Source Value

When UVM determines that a source value is no longer going to be used, an effective dated row will be added to the set up screen with an inactive status. Specific consideration needs to be given to the timing of these changes and how transactions are impacted. Typically, an inactive record will correspond with the end of a fiscal year.
  
Requests to update values are submitted via the Footprint system. Depending on the nature of the request, a variety of individuals from the following areas may be added to the footprint; BPR, FRAS, FAB, GCA, Development.

New Function Values

The function chartfield values are used in the PeopleSoft Budgeting Module (EPM), Human Resources System (HCM) and the Financial & Supply Chain Management System (FSCM), and the list of values in each database must be kept in synch. Thus, one of the databases needs to be the master source of the values. FSCM is the system of record and all new values for the chartfields are entered in FSCM and messaged via Integration Broker to HCM and EPM.

New Function Value

Although the addition of a new function value is very infrequent, the process in which we determine if a new function should be added typically starts with a meeting with the central unit making the request. In addition to the unit, the meeting will also include appropriate BPRT analyst(s), the appropriate FAB analyst(s), and the appropriate member(s) of the Controller’s Office. Using the information that is provided by the requesting unit, a determination will be made if the request meets the COA definition of a new function.
 
The function chartfield is used to designate the purpose of the transaction as it applies to federal and other external reporting requirements for both revenue uses and expense uses. This chartfield is essential for compliance with federal cost principles.

Following is a list of the groupings for the function values:

Balance Sheet 000
Operating Revenue 100-129
Non-Operating Revenue  130-149
Instruction Expense  200-299
Research Expense 300-399
Public Service Expense 400-429
Auxiliary Expense 430-439
Academic Support Expense  500-519
Institutional Support Expense 520-549
Operations & Maint Expense 600-609
Student Services Expense     700-709
Financial Aid Expense 900-904
Benefit Expense  905-909
Non IPEDS Expense 990-999 
                        
Update/Inactivate Function Value
 
The process in which we determine the impact of external financial reporting or financial management changes related to function typically starts with a meeting with the central unit making the request. In addition to the unit, the meeting will also include appropriate BPR analyst(s), the appropriate FAB analyst(s), and the appropriate member(s) of the Controller’s Office. Using the information that is provided by the requesting unit, we will determine if there is a need for the existing function structure to be updated or if there is a need for a new function value to be created.
 
There will be various procedural and functional items to update with the change of a function value; all of this activity will be tracked in a Footprint opened by a BPRT member.

New Project Values

Project values are assigned by the system using the next id available when the project is created. The responsibility for creating new projects depends on the type of project.
 
Sponsored Projects (Business Unit GCA01) - are only set up by Grants & Contracts Administration, based on award information from the Office of Sponsored Programs except for project types AGREL and AGNON which are set up by Extension, CALS, and RSENR.

Non-Sponsored Projects (Business Unit PC001) – are set up by different units depending upon the project type.

Renovations and construction Project Types (CAPTL, DFMNT, DFMOM, ENERG, ENRGO, RESLF, RSLFO) are only set up by Physical Plant, Facilities & Design, and Residential Life.
 
Project type BILLN is used to consolidate expenses for AR Misc Billing and is only set up by General Accounting. If you are a PeopleSoft Billing user, and think you need a billing project, contact the General Accounting Manager at 656-1382.
 
All other non-sponsored project types are set up by departmental users with appropriate training. If you think you need a project and do not know how to set one up, you should submit a footprint.
 
New Program/Purpose/Property Values
 
Program, Purpose and Property chartfield values are used in the PeopleSoft Budgeting Module (EPM), Human Resources System (HCM) and the Financial & Supply Chain Management System (FSCM), and the list of values in each database must be synchronized. Thus, one of the databases needs to be the master source of the values. FSCM is the system of record and all new values for the chartfields are entered in FSCM and messaged via Integration Broker to HCM and EPM.
 
The Program chartfield is used to record revenue and expense transactions associated with formal or informal programs including public service activities, academic initiatives, cross-disciplinary initiatives and centers, athletic areas, etc. Values in this field may include degree and non degree programs, courses of study, scholarship programs and student service activities. Programs may be groups of activities conducted within or across departments or organizations.
 
The Purpose chartfield provides a tracking mechanism for University-wide purposes and activities occurring within and/or across departments and organizations, programs, and funds. The ability to record costs associated with faculty recruiting is an example of this field’s use. Such costs will continue to be identified by their “natural” account (travel, etc.) by use of the account field, but in addition they can be associated with the purpose of faculty recruiting. The field can be used to track both revenues and expenses to a specific purpose or activity.
 
The Property chartfield is used to track maintenance costs, capital additions and deletions associated with University Buildings and Land.
 
Requests for new values are submitted via the Footprint system. Depending on the nature of the request, a variety of individuals from the following areas may be added to the footprint; BPR, FRAS, BRM, GCA, Campus Planning, Physical Plant (FAMIS).
 
Update Program/Purpose/Property Value

There may be various reasons that UVM needs to update information about specific program, purpose, or property values or trees related to managing the hierarchy of these chartfields.  Some of the specific reasons for change are:
Requests to update values are submitted via the Footprint system. Depending on the nature of the request, a variety of individuals from the following areas may be added to the footprint; BPR, FRAS, FAB, GCA, Campus Planning, Physical Plant (FAMIS).

Inactivate Program/Purpose, Property Value

When UVM determines that a Program, Purpose, or Property value is no longer going to be used an effective dated row will be added to the set up screen with an inactive status. Specific consideration needs to be given to the timing of these changes and how transactions are impacted. Typically, an inactive record of will correspond with the end of a fiscal year.
  
Requests to inactivate values are submitted via the Footprint system. Depending on the nature of the request, a variety of individuals from the following areas may be added to the footprint; BPR, FRAS, FAB, GCA, Campus Planning, Physical Plant (FAMIS).

Chart of Accounts Mini-Manual

Return to Financial Management-Operations Manual Home Page

5.3 Fund & Source Accounting
 
General Fund

Definitions

General Fund – Fund 100, Sources 000100 – 100330, excluding sources 000110, 000120, 000130, 000191, 000192, 100198, 100199, 700099

A portion of current operations utilizing net tuition, state appropriation, and other unrestricted general income as revenue in support of academic, administrative, and departmental operations. This Fund is unrestricted, meaning there are no restrictions on how this money is used created by an external entity or contract, like a donor’s intent or a bond indenture.

Reserves – Fund 108, Sources 100198, 100199, 700099

General Funds that have been transferred from operating budgets to cover future departmental equipment, operating, or renovation expense. 

Expense Budget - The General Fund expense budget is the amount a unit is authorized to spend in a fiscal year. 

Budgeting Base and Variable Budgets

Base Budget – The portion of the General Fund budget that represents authorization to spend for ongoing long term commitments.

Variable Budget – The portion of the General Fund budget that represents authorization to spend for one time activities; this may recur over more than one fiscal year.

Original Budget – In PeopleSoft, Original budgets are base budgets that are entered either via EPM, Original Budget Journals, or Original Budget Transfer Journals. 

Revised Budget – The original (base) budget plus current year adjustments

General Fund Budgeting

All General Fund expense budgets use the Ops-Child ledger in PeopleSoft Commitment Control. General Fund revenue budgets (only input by FAB) use the Ops-Rev ledger. See Source Book page 36 for a breakdown of General Fund budgeted revenue & expense

July Initial projections & discussion of basic principles
August Finance & Budget Committee meets to discuss principles
September Vice President/Provost request communique distributed - internal process begins
October Board of Trustees meets to discuss budget premises and appropriation request
November Budget directors submit budget presentations
December Budget hearings between budget directors and Vice President/Provost
January Budget hearings continue
February Board of Trustees approves more specific planning parameters
March Vice President/Provost make allocation decisions
April Budget targets, system available to units
May Board of Trustees approves tuition, fees, budget, salary increase %
June Budget/salary detail submitted to Financial Analysis & Budgeting. Salaries, budget monitored; loaded to new year file
July 1 New operating budget and new salaries become effective

Budget Building

The department of Budget and Resource Management prepares budget targets (total general fund spending authority for a unit). After these targets are distributed to the units, detailed General Fund budgets are entered into the PeopleSoft EPM (Enterprise Planning and Management) Module by unit budget managers. Guidelines for fiscal year General Fund budgeting can be found under Budget Building Materials here.

UVM Budgeting Overview Mini-Manual
Employee and Position Budgeting Mini-Manual
Line Item Budgeting Mini-Manual

Formula-Funded Units

Budget targets for the Medical College, Extension and Ag Related Services derive from a formula based on a percent of the state appropriation. The Medical College begins budget building several months earlier than other units. For help with budgeting salaries specific to the College of Medicine, please see this page

Budget Journals/Budget Transfers

Once budgets are loaded into PeopleSoft Finance for the beginning of the fiscal year, if you need to change a budget you must use the budget journal (FAB only) or budget adjustment/transfer pages.
 
Budget adjustment/transfers have a “budget type” of either original or adjustment. If you want to transfer base budget, you use original. If you want to just transfer budget for the current year, you use adjustment. All budget transfers should be made at the time of the commitment. Click here for a step by step guide for doing budget transfers.

To find your budget transfer journals after they have been posted click here.

You should only do budget transfers between General Fund budgets. Transfers between different funds should be accomplished with an actuals journal, not a budget transfer.

Re-appropriations

Reappropriation gives units additional variable budget dollars based on their unspent budget from the previous year and General Fund net assets at the previous year-end. The determination of which units get reappropriated budget dollars and how much they get is determined by the central administration each year. The department of Budget and Resource Management creates and posts these budget entries.

Reserves
 
To add to an equipment reserve (source 100199) you need to process an actuals journal using the transfer accounts 49900 and 81900. You do not process budget transfers to fund reserves.

Revenues
 
All unrestricted revenues not associated with income/expense activities. The vast majority of this revenue is tuition and fees and the state general appropriation.

Expenditures

Any business expense appropriate to the unit and in compliance with UVM policy may be charged to general funds.

Net Assets

General Fund net assets are held centrally.

Reappropriation

Funds flow into Fund 108
Use of Resources within Fund 108
Accounting Entries for Reappropriation
When the Provost approves a spending plan within Fund 108, an actuals journal will be processed to debit account 49900, function 994 in fund 108 and credit account 49900, function 994 in fund 100.  FAB will then increase the budget in the fund 100 chartstring

Income & Expense Activities (Auxiliaries & Recharge Centers)


Definitions

Income/Expense Activity – Fund 150 - An income/expense activity is an activity that is designed to generate sufficient revenue from the sale of specific goods and/or services to recover expenses associated with providing those goods or services. These activities are sometimes called “auxiliary enterprises,” or “recharge centers”

Detailed parameters for I/E Activities:

See the Income Expense Manual for complete instructions pertaining to all aspects of income/expense Activities. (Financial Analysis and Budgeting is in the process of updating this manual for the new accounting system.)

Budgets and Rate Setting

The Income Expense Manual discusses budgeting and rate setting. Specific guidelines for particular fiscal year budgeting can be found here.

Grants & Contracts

Definitions

Sponsored Project – fund 300, 305, 330 - A grant, contract, or cooperative agreement awarded to UVM. Sponsored projects are usually awarded based on a proposal with a specific budget and have a specific timeframe during which the expenditures must be made and the work accomplished. Click here for a discussion of the difference between a gift and a sponsored grant.
  
Detailed parameters for grants and contracts:

See Grants & Contracts Section

Gifts

Overview

The University is a 501(c)(3) charitable organization and may accept tax deductible gifts to support its mission. This section provides guidance on gift and fund raising process governing all areas of the University.

Definitions

Gifts – Restricted: Fund 310, Unrestricted: Fund 100 - A gift is any voluntary contribution of an asset (cash, stocks, property, etc.) to the University from donors where no goods or services were provided in exchange for the contribution. Certain nominal goods or services as defined by IRS regulations (key chains, stickers, etc.) may be provided to donors without impacting the charitable deductibility or accounting classification of the gift. Gifts can be either restricted (donor designates the purpose for which expenses can be incurred) or unrestricted (no donor designation).

Donor - Any individual, corporation, foundation or other organization providing gifts to the University.

Benefit - Benefits are goods or services directly linked to a contribution and accepted by the donor. Benefits (season tickets, sweaters/apparel, etc.) limit the charitable deductibility of the gift and benefits have different accounting treatments.

Fund Raising Event - A fund raising event is any good or service and not directly tied to a gift and where the proceeds of the event is specifically marketed for restricted purposes (e.g., a golf event to benefit a scholarship endowment). 

Tax Receipt - The University is required to provide an official receipt to donors for all gifts, disclosing any benefits, as governed by IRS regulations.

Solicitation - A solicitation is any request of a donor to consider a gift to the University, usually conducted via phone calls, mailings, or in person Proposal – Solicitations for large dollar gifts are considered proposals and must be pre-approved before any agent of the University conducts the ask (see Gift Proposal Clearance Policy).

Pledge - A pledge is a voluntary commitment by a donor to make gifts on a scheduled basis (monthly, quarterly, annually, etc.).

Policies and Procedures

Gift Policy 
Gift Proposal Clearance Policy
 
Procedures and guidelines are established to coordinate the University’s diverse fund raising needs and to provide a framework for complying with donor restrictions on gifts. The following procedures are available by clicking here.

Roles and Responsibilities


The Board of Trustees is responsible for officially accepting gifts.

The Office of Development and Alumni Relations is responsible for coordinating solicitations and proposals, for processing gifts and pledges, for providing tax receipts to donors, for establishing new gift funds and endowments, and for providing departments with donor restrictions on gifts. Departments seeking to solicit donors must coordinate their efforts through Development and Alumni Relations.

Department business managers are responsible for monitoring gift funds and spending from gift funds in compliance with donor restrictions.    

Budgeting

Gift chartstrings are set up with associated revenue so that the budget balance available includes new gifts during the year. At the beginning of each fiscal year, budgets are set up by DAR in an amount equal to the prior year’s ending net assets.
 
Net Assets

Gift chartstrings close out to themselves and so create unique net assets for every chartstring.

Expenditures

Restricted gift funds must be spent according to the donor’s stipulations.  If you need to know what the donor’s wishes are for a particular chartstring contact Development & Alumni Relations.

Endowments

Definitions

True Endowment – Fund 400 - A gift that is invested in perpetuity. Only the return on the investment can be spent.
 
Quasi Endowment – Fund 210 (unrestricted) & 350 (restricted) - Funds that are treated like an endowment, i.e. principal is invested and only return on the investments can be spent. The source of these funds can be general funds (unrestricted) or restricted gifts and bequests that were not designated for an endowment by the donor but the administration decided to treat them like an endowment.

Term Endowment – Fund 352 (restricted) - Gifts that are treated like an endowment for a specified time.  At the end of that time, if the fund reaches its goal, it becomes a true endowment. If it doesn’t, it reverts to spendable restricted gifts (fund 310).

Unrestricted Endowment Income – Fund 100 - Income from an endowment that is not restricted by the donor and can be spent on any institutional need

Restricted Endowment Income – Fund 320 - Income from an endowment that can only be spent for purposes stipulated by the donor

Budgeting

Endowment expenses are budgeted based on 4.5% of a 13 quarter rolling average market value. This spending policy is set by the Board of Trustees. The budgets are calculated and input by Financial Reporting and Accounting Services. Budgets are updated each month if new gifts are received.

Reserve

The 'reserve amount' of an endowment is defined as the net assets (account 30000) as of July 1 of the current year. Although the endowment spending budget is calculated on a 13-quarter consolidated market value average, a reserve amount must be maintained so that budget managers will have funds if the budget is unusually low due to a market downturn. A reserve is required for all endowment funds except for three instances - where the terms of the fund requires the reinvestment of all income distributed, scholarship endowments, and funds with spending budgets less than $1,000.

The endowment's reserve amount is expected to be between 25% - 60% of the current year's original budget. In the case where reserve amounts are under 25%, funds are required to be set aside and not spent out of the current year budget. Should the instance exist where the reserve amount is over 60%, budget managers are encouraged to budget the excess for expenditure or reinvestment. The procedures for these budget changes are explained below. If an endowment fund 320 chartstring is overdrawn at year-end, that is there exists deficit "net assets", the responsible General Fund budget will be required to cover endowment expenditures to bring the amount back into a positive position.

The Financial Analysis and Budgeting Office (FAB) will approve revisions to an endowment budget upon receiving a written request to increase a budget for expenditure of a portion of the reserve, to budget an "Addition for Reserve", or to budget an "Amount for Reinvestment". An approval by the Dean of the College/School will be required.

Budget Revisions

Increase a Budget for Expenditure: It will be necessary to request a revision to the budget when additional expenditure (using reserves) is planned. The Budget Office will confirm that the new plan for spending allows for the necessary reserve level to be maintained. No endowment budget will be permitted to be overspent.

Amount of Budget Added for Reserve: A revision to the original current year budget will be necessary when the calculation of reserve divided by original budget at the start of the new fiscal year is less than the minimum 25% requirement. This amount will reduce the budget available for expenditure.
 
Budget Transfers
 
No budget transfers to/from other chartstrings are allowed.

Net Assets

Each endowment chartstring closes out to itself and so retains its own net assets.
 
Expenditures

Expenditures on restricted endowments (fund 320) must comply with the donor’s wishes. Contact Endowment Accounting in the Financial Reporting and Accounting Services Department for clarification on the appropriate expenses.

Loan Funds

Definitions

Federal Student Loans – fund 340 - Perkins Loans, Health Professions, Primary Care Loans and Nursing Loans are revolving loan funds funded by the Federal government. They are awarded to qualified students by the Financial Aid Process and must be paid back with interest over a period of years after graduation. 

Institutional Student Loans – fund 342, restricted & fund 110, unrestricted - Institutional loans are revolving loan funds funded by gifts, endowment income, or general fund money. They are awarded to qualified students by the Financial Aid process and must be paid back with interest over a period of years after graduation. 
 
Staff & Faculty emergency loans – fund 342 - Small short term interest free loans are available to faculty and staff suffering temporary financial hardship. They are funded by gifts and must be paid back.  Click here for information about staff loans. 

Expenditures

The only expenditure allowed on loan funds is bad debt expense. All other administrative costs are absorbed by the general fund and government awards.

Plant Funds

Definitions

Unrestricted – Fund 200 - Unrestricted plant funds are used for construction, renovation and maintenance projects and also for reserves set aside to fund future renovations. Projects use source 700001 and reserves use source 700099. 

Restricted – Fund 370 - Restricted plant funds are used for bond and commercial paper transactions and for gifts that are restricted by the donor for capital projects.

Budgeting

Projects: Construction, renovation & maintenance projects are budgeted in both ops child and pc child by A&E, Physical Plant or the Medical College when projects are set up.  See non-sponsored projects 3.5.9 (link)

Reserves for future projects: Reserves are budgeted equal to their net assets when they are used to transfer funds to projects. Request budgets by e-mail to General Accounting.

Bonds and commercial paper: Debt vehicles currently use zero budgets to allow transaction processing. (Funds transferred to support these payments are budgeted in other I/E or General Fund chartstrings.) The department of Tax & Treasury Services is responsible for all bond and commercial paper chartstrings.
 
Capital gifts: Gifts are budgeted when received and annually thereafter based on the beginning net assets for the year. See gifts. When the project is set up the gift’s net assets are transferred from fund 370 to the project in fund 200.

Net Assets

All plant fund chartstrings have their own net assets (also called fund balances) in their unique chartstrings. This is the cumulative net effect of all transfers in and out, revenue and expenses. At the end of a project a transfer is done to bring net assets to zero and the project is then closed.
 
Agency Funds

Definitions

Agency funds – fund 900 - Agency funds are funds held by UVM in its role as fiscal agent for an external organization such as a sorority, fraternity or scholarly journal. They are not UVM’s money and UVM has little or no say in how they are spent.

Budgeting

Agency funds are set up with “associated revenue” so that as deposits are made, the budget balance available is increased. They should be budgeted by FRAS at the beginning of each year in an amount equal to the beginning net assets.

Net Assets

Agency funds close out to their unique chartstrings and so carry their own fund balances.

Sources of Revenue

Deposits from the affiliated organization

Expenditures

Any legal expense authorized by the external organization’s representative is allowed.

Student Government Funds

Definitions

Student Fees – fund 130 - Allocation of activity fee revenue to student clubs.

Student Fund Raising – fund 131 - Student club funds that they have raised themselves

Budgeting

Club budgets are determined by the SGA Senate and budgets are inputed by Student Affairs. Click here for more information on Student Government clubs and budgeting.

Non-Sponsored Projects

Definitions

Non-sponsored projects - Projects are used to accumulate expenses over multiple fiscal years or multiple funds/chartstrings. Non-sponsored projects are all projects that do not involve grants and contracts. Non-sponsored projects must use PC Bus Unit of “PC001” and one of the following funds: 100, 150, 200, 305, 310 or 900.

Project Types - Project types are used to categorize a project and to determine which project activities you can select when making entries.
   
AG-Nonmatched (AGNON) - The AG-Nonmatched Project Type is for use by Extension Services, CALS, and RSENR for their specific project needs.

Billing – External (BILLN) - The Billing-External Project Type is for projects that have been set up to collect costs incurred by UVM departments in service to a customer outside of the university. An example of an external customer may be a conference group who is using UVM facilities for a conference.

Capital Projects (CAPTL) - In general, any project that extends the useful life of an asset or increases the quantity or quality of services provided by that asset is considered a Capital Project and one of the capital project types should be specified. Costs that merely maintain the current level of service such as routine maintenance & repair are Non-Capital Projects and one of the non-capital project types should be selected. In practice, UVM has a threshold of $25,000 below which all projects are considered Non-capital. If a project is budgeted for $25,000 or more, you must decide whether the project should use a Capital or Non-capital project type.

FAHC Clinical Trials - Non-Cap (CLNTR) - PeopleSoft has been configured with the FAHC Clinical Trials Project Type to create individual projects for each clinical trial that the College of Medicine incurs reimbursable expenses for.

Continuing Education - Non-Cap (CNTED) - Continuing Education staff have identified the desire to compare and analyze financial information for their offerings grouped by Operating Unit and Academic session. There will be five sessions per year: Spring, Summer, Fall, Winter, and an Annual session. This information will be organized by Project to capture financial activity in one group which will help analyze and compare data within CE as well as to compare Continuing Education offerings with other colleges. One project will be created for each Academic Operating Unit per academic session, for example, Summer 2006-Arts and Sciences. To provide the desired level of detail, transactions will be linked to the appropriate session/operating unit by indicating the corresponding Project ID as part of the chartstring used for each purchase for CE courses, workshops, programs, or events offered. The additional chartfields available will allow CE to capture the other details desired for analysis, for example Function will identify if the transaction is supporting CE classroom, online, travel, or other instruction, Program will be used to indicate things such as Lane Series or America Reads, and Purpose will be used to capture details like the project being a statewide offering.

Deferred Maintenance - Capital (DFMNT) - Administrative and Facilities Services completes deferred maintenance projects which are capital improvements.

Deferred Maintenance – O & M (DFMOM) - Administrative and Facilities Services completes deferred maintenance projects for ongoing operations and maintenance (O&M.)

Physical Plant Energy –Capital (ENERG) - Physical Plant completes numerous projects each year to improve energy efficiency on campus. These projects may qualify as a capital improvement.

Physical Plant Energy – O & M (ENRGO) - Physical Plant completes numerous projects each year to improve energy efficiency on campus. These projects may be for ongoing operations and maintenance (O&M).

Faculty Discretionary -Non-Cap (FCLTY) - PeopleSoft has been configured with the Faculty Discretionary Project Type to create projects in academic or research units with faculty members who have been allocated or who have acquired additional funding to be spent at their discretion. Projects may be set up in PeopleSoft Project Costing to accumulate costs related to faculty’s discretionary expenses. Each faculty member responsible for discretionary funding will have a Project created in their name by the Business Manager for the affiliated unit’s Dean’s Office.

Internal Charges - Non-Cap (INTCH) - A Project Type for Internal Charges was created to allow departments to collect costs using one Project ID and then charge a different internal department for the sum total of all the costs incurred during a period of time. This is helpful in specific situations where completing many one-line Internal Charge Journal Entries would become confusing and inefficient.

Other Non-Capital (NOCAP) - The Other Non-Capital Project type was created for use by any non-capital, non-construction, and non-renovation project that does not fit any of the other project types.

Residential Life – Capital (RESLF) - Residential Life manages and delivers projects each year that are completed as capital improvements to their buildings.

Residential Life – O & M (RSLFO) - Residential Life manages and delivers many projects each year that are for ongoing operations and maintenance (O&M) of their buildings.

Faculty Start-Up (START) - PeopleSoft has been configured with the Faculty Start-Up Project Type to create projects in academic or research units with faculty members who have been allocated start-up funding to be spent at their discretion. Projects may be set up in PeopleSoft Project Costing to accumulate costs related to the faculty’s start-up expenses. Each faculty member responsible for start-up will have a Project created in their name by the Business Manager for the affiliated unit’s Dean’s Office.

UVM General Financial - Non-Cap (UVMPR) - The UVM General Financial Non-Capital Project type was created for use by any non-capital, non-construction and non-renovation project that does not fit any of the other project types

Budgeting

Non-sponsored projects are budgeted in project costing by the person setting up the project. The project budget carries over from year to year. There must also be an OPS_CH budget in the same chartstring without the project id. The OPS_CH ledger must be re-budgeted every year.

Funding Non-Sponsored Projects
 

To be developed

Procedures

Non-Sponored Projects Mini-Manual

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5.4 Accounting Entries

Definitions

Actuals Journals – Entries to create/update revenue, expense, assets or liability amounts on the actuals ledger which is also called the general ledger (GL). Actuals journals are typically used to:

Budget Journals – Entries to create/update budget amounts on the Commitment Control (KK) ledger.
 

Subsystem Journals – These are actuals journals created by PeopleSoft modules other than the GL to update the GL.  Examples include journals created by Accounts Receivable, Accounts Payable, Travel & Expense, and Asset Management.
 

Actuals Journals
 

Creating accounting entries directly in PeopleSoft

1 Log in to PeopleSoft Financials
2 Navigate to General Ledger> Journals> Journal Entry> Create/Update Journal Entries
3 Select the "Add a New Value" tab - Business Unit will default to UVM01
4 Fill in Journal ID - Journal Date will be the current date - click "Add"
5 At the "Header" tab - enter an explanation of what your entries are for (will accomplish) in the "Long Description" field
6 Enter your unit source in the "Source" field
7 Select "IC" in the "Journal Class" field if you work for an income/expense activity and are preparing a journal to charge for services, otherwise select "Other" or leave blank
8 Click on the "Lines" tab
9 Enter chartfield values, amount (credit or debit), and reference or line description
10 Click on the "+" sign next to "Lines to Add" to add your next journal line. To delete a line, check the box next to the line you want to delete and click on the "-" sign.
11 When done editing lines select "Edit Journal" in the process box and click "process". After editing, the journal status and budget status boxes should be V  V (valid, valid). If either is an "E" you must go back and correct the chartstring errors and then re-edit the journal.
12 When editing is complete, select "Submit Journal" from the process box and click "process". The workflow status should now change from "None" to "Pending".

Journal Entry Mini-Manual
 

2. Creating journal entries using Excel:
 

The Journal Upload is a PeopleSoft delivered Excel spreadsheet with built in macros used to load a journal entry into PeopleSoft Financials where it then can be edited, submitted, and posted just like it would be when entered on-line in PeopleSoft.
 

Uses:

1 Download the Zip file for Spreadsheet Journal Upload Process.
2 Save the zip file to your desktop
3 Extract the files to your desktop
4 Open the file UVM_JOURNAL_ENTRY.xls  in Excel 2007
5 Click the options button on the window security alert – then click enable this content.
6 Click the setup button and setup this page as follows:
  • Business Unit must be UVM01
  • Date: leave blank
  • Ledger Group must be ACTUALS
  • Source: This is the journal source that you use on the header page when doing a journal online
  • UserID: Set to your UVM UserID in both UserID fields
  • Leave the other fields as are
7 To create a journal click "New" on the Spreadsheet Upload Home Page
8 To prepare the header:
  • Enter a name for the journal sheet, click ok. This is not the journal ID – it is only so you can identify this spreadsheet.
  • Click on the plus sign in row 5 for the header – a box will appear for the journal header information. Some of the information will default from the setup you did originally.
  • Unit: This should be UVM01
  • Journal ID: You need to enter a Journal ID (may be alpha or numeric). It can only be 10 characters long.  Start the journal id with your journal source, followed by something meaningful to you, for example, BIOJUL09 for a Biology July 09 journal entry
  • Ledger Group: Enter ACTUALS
  • Ledger: Leave Blank
  • Journal Class: If the journal is for internal billing/internal charges, enter IC (case sensitive) in the Journal Class field.
  • Description: Enter a description in the description field. This must be something that indicates what this journal is for. (30 Characters)
  • Set the Reversal Radio button to None.
  • Leave the currency information as it defaults in.
  • Do not check Adjustment Type or Adjusting Entry.
  • Click "ok"
9 To create the journal lines:
  • Click on the + (plus sign) on row 9 in the lines area. The first plus sign on the far left adds one row at a time, the second bold plus sign allows you to add multiple lines and tell it how many lines you need. You can delete a line by using the – (minus) sign. You must be on the line that you wish to delete.
  • You need to fill in the Unit which will always be UVM01 (case sensitive) and the Ledger which will always be ACTUALS (case sensitive).
  • Fill in the remaining chart fields, amount, and description as required and make sure the transaction(s) are in balance. Note: The description entered here will appear on the budget transaction detail report.
10 Click on the Blue cylinder icon on line 2 to upload the journal.  Enter your UserID and password.
11 After creating your spreadsheet, you will need to edit the journal online, and submit it for approval in the PeopleSoft system. As long as the journal has not been posted it can be edited in the spreadsheet and then uploaded again and again. This will update the existing journal in the system and it will need to be edited and submitted again.
 
Journal Entry Mini-Manual

 

Looking up actuals journals

There are three ways to look up actuals journals in PeopleSoft:
 

1. Using the Journal Create/Update page:

1 Log in to PeopleSoft and go to General Ledger> Journal> Journal Entry> Create/Update Journal Entries
2 Select the "Find an Existing Value" tab
3 Business unit should be UVM01
4 Type in your UserID and click search. Your most recent journals will be at the top of the list. You can also type in a journal ID to get a specific journal, or a journal date or source to find other journals.
5 Click on any field in the search results for the journal you want to look at.
6 Your journal will open and then you can use the navigational buttons at the bottom of the page to move between your journals or return to the Search Results table.
 
Journal Entry Mini-Manual

 

2. Using the Journal Inquiry page:

1 Log in to PeopleSoft and go to General Ledger> Review Financial Information> Journals
2 Select "Find an Existing Value" tab
3 Click search
4 Be sure the Business Unit is UVM01, and the ledger is ACTUALS
5 Be sure the Business Unit is UVM01, and the ledger is ACTUALS
6 Type in the year and periods you want to see data for
7 Type in other fields depending on what search criteria you want to use
8 Click search and a list of journals will appear. Click on the journal ID to see the journal

Journal Entry Mini-Manual

 

3. Using the Query Viewer page

1 Log in to PeopleSoft and go to Reporting Tools> Query> Query Viewer
2 Enter Query name UV_GL_JRNL_INQUIRY or UV_GL_JRNL_INQUIRY_CF_DESCRS  The only difference between the results of these queries is that the 2nd one includes the chartfield descriptions as well as their values
3 Click on the HTML link to send the output to your browser, or click on the Excel link to open the results in Excel
4 Enter a from and to date range and any other criteria you would like to use. A % sign can be used as a wild card so if you want all revenue accounts you could enter 4% in the account field. You can leave a field blank if you want all values for that field
5 Click on the view results button. If you used the HTML link above you will see results in your browser, but you must click on the view all link to see all the results. If you used the Excel link above, a box will open to allow you to choose to open or save the Excel file

Journal Entry Mini-Manual
 

There are a number of other queries that might be useful as well, such as:
Return to Financial Management-Operations Manual Home Page
 

5.5 Budget and Financial Reports and Certification

Overview
 

In PeopleSoft, there are a number of reports and queries that are available for the end user to use. With so many possibilities, it can be difficult to know which report is the right one to use to get the information that you need. In this section, the recommended approach to leveraging the available reports and queries is described.
 

Background Information In PeopleSoft - Transactions occur in the various modules, and this transactional data is accumulated in two sets of ledgers in the system. The UVM Budget Reports attempt to make this distinction transparent to the user.
 

The General Ledger - The General Ledger, also known as the Actuals ledger, is where financial transactions ultimately post. This is the ledger that is used for our external financial reporting. The various modules in PeopleSoft generate accounting entries and send this data to the General Ledger via journal entries which are posted. When these journals are posted, the general ledger is updated. Journals are posted nightly.

Commitment Control Ledgers - Transactions post to the Commitment Control ledgers as soon as a valid budget check is achieved. Only revenue and expense transactions post to commitment control. These ledgers are used for internal management purposes and allow us to see where we stand from a budget to actual perspective as soon as transactions are budget checked. There are many groups of ledgers in commitment control because UVM needs to be able to accumulate budget-to-actual data in various ways for internal management purposes.


Since transactions are budget checked before they are posted, transactions and their effect will be seen in the commitment control ledgers before they are posted to the general ledger. This means that there can be differences between the data in the commitment control ledgers and the general ledger due to timing. As will be described below, the Closeout report will highlight the explanation for such discrepancies.


Job aids for all of the following reports, queries and inquiry pages can be found on the
Learning Services website.
 

Budget vs. Spending Reports
 

In order to view your budget versus spending, two reports are recommended. These reports can be run by anyone who manages budget dollars. These are the primary reporting tools that should be used when discussing budget situations with FAB, unit leaders or others. These reports will tie to the Quarterly Budget reports. The best time to run these reports is after the accounting period has closed so that you can review activity for the last period. The reports can however be run during the month to get a status as of the very point in time that the report is run.

When monitoring your non-project spending, the UVM Operating Budget Report should be used. When monitoring your project spending (sponsored or non-sponsored), the UVM Projects Budget Report should be used. These reports were created at UVM to be easy-to-use and to display the information that those who manage budget dollars need to see. Note that for data in FY10 and beyond, when the report is run for a closed accounting period, the budget, encumbrance, pre-encumbrance, revenue and expense amounts are as they were at the time when the period was closed. That is, when you run one of these reports for a closed accounting period (that falls in FY10 or beyond) the data will be the same if you run it again in the future; the data will not change.
 

These reports include the following information:

Analysis Tools
 

Closeout Report
 

Prior to month end or the closeout of a project, and in fact, at any point where there are questions about activity on a chart string or project, the UVM Closeout report should be used. This report was also developed at UVM to meet our specific needs.
 

This report is a tool that brings together information about a project or chart string. The first sections of the report have summary information. The next sections list transactions that have not been completed yet as well as any budget checking errors or other issues associated with the selected chart string. The report can be used at any point during a project or during the fiscal year in order to get a picture of current activity and issues with the project or chart string. For example, if you saw that the numbers on the Budget Overview page or in the Monthly Budget Report for your project or chart string that didn’t look correct, this report would be the first place to look for an explanation.
 

Queries

UVM has developed many queries to show the details behind all sorts of transactions. Click here for a list of available reports, queries, and what they are used for.
 

Commitment Control Reports and Inquiry Pages
 

Under the Commitment Control menu in PeopleSoft, there are two reports and one inquiry page that are very useful. The Budget Transaction Detail report is a very popular report that can be run at any point in time and it lists all revenue and expense budget, encumbrance and pre-encumbrance transactions for the selected project and/or chart string. The key thing to remember about these reports is that the data is always as of the point in time that the report was run. So if you run it today and then talk to someone who ran it on a different day, your numbers might be different. That is why the UVM budget reports are the recommended reports to use when trying to talk to others about your budget situation. These commitment control reports are better used for analysis purposes.
 

The difference between the Budget Transaction Detail Report and the transaction detail produced in the UVM Budget reports is that this report can be run at any point in time to list transactions, while the list of transactions from the UVM budget reports can only be run for closed accounting periods and can only be run for one accounting period at a time. The list of transactions from the UVM budget report only includes transaction detail on revenue and expense actual transactions; budget and encumbrance transaction details are not included. In order to get a list of all transactions for a project, it is probably best to run the Budget Transaction Detail report. The advantage of the transaction detail listed in the UVM Budget reports is that the list of transactions for the period will tie to the total revenue and expenses posted to the General Ledger for the selected accounting period. Since the transactions listed in the Budget Transaction detail report are listed by when they were budget checked, not by the accounting period that the transaction will actually be accounted for in, the dates that transactions posted in Commitment Control cannot be used to tie out data to the general ledger.
 

The Budget Status report also provides a nice summary of budget to actual and can be summarized to any level/set of chartfields. The Budget Overview page is a quick online tool that can be used to quickly see an account balance and to drill into the details that make up the balances online without having to run a report.
 

Both the Budget Transaction Detail report and the Budget Status report produce data in both Excel and in a PDF file.
 

The Budget Overview page displays the same information as the Budget Status report, but it is shown online, instead of in a report. This allows you to drill down into the details behind the totals. This is a good tool to use for quick day-to-day monitoring of a project or a chartstring.
 

General Ledger Trial Balance Report
 

The Trial Balance report should be used by those who need to report on balance sheet accounts (assets and liabilities). It can also be used to view data for expense, revenue and net asset accounts. This report only includes data from the General Ledger; no budget or encumbrance data is included. This is a good report to use to see the balances by detailed account or to summarize data across accounts or chartstrings.
 

The trial balance shows summarized balances (debits and credits) from the General Ledger for a fiscal year, for the selected accounting period range, based on the parameters selected. This report displays the same data that you see on the Ledger Overview page, except that here the accounting periods are summarized to show only one line per chartfield combination. You can run the report based on various chartfield parameters, and the report will summarize across the parameters you select.
 

If you run the report for all accounts, then assets, liabilities, equity, expenses and revenue will be added together as follows: Assets [minus] Liabilities [plus] Equity (a.k.a. “Net Assets” or Account 30000) [minus] Expenses [plus] Revenue [equals] the Result. If the result is positive, it will appear in the debit column, and if the amount is negative, it will appear in the credit column. The net of the debit and credit column appears in the Net column. If the net is a credit, there is a surplus. If it is a debit, there is a deficit.
 

Reports and Queries to Reconcile and Review Payroll Information
 

The PeopleSoft HR system creates accounting entries based on each employee’s salary or wage rage, FTE, benefits and so on. These expenses are distributed to various chartstrings based on the type of employee and where their payroll expenses should be charged to.  When reconciling payroll expenses to the Financials system, it is important to keep in mind that any retroactive changes to the chartstrings that an employee is distributed will always post in the currently open accounting period.  For example, if an employee was charged to one sponsored project for nine months, and then in the tenth month the business manager realized that the employee should have been charged to a different project and subsequently requested a retroactive distribution change, we would see a large credit to payroll expense post to the original project in the tenth month in the Financials system with an offsetting large debit to expense on the new project posting in the 10th month on the new project. However, in the HR system, when running a report like the labor distribution report, after the retroactive distribution change was processed, we would not see any expenses on the original project and we would see expenses on the new project in those periods. This is because this report reflects the effect of all retroactive distribution changes because that is what is desired when a retroactive distribution change is requested.
 

The Labor Distribution Report can be run to list payroll and fringe expenses by person for a fiscal year and range of accounting periods. Again, this report reflects the effect of retroactive salary distribution changes, so the period expenses in this report will not tie to the general ledger expenses in the Financials system if retroactive distribution changes have been processed for a chart string.
 

There are two queries that are helpful to use in the HR system when reviewing financial data. The first is the UV_PAY_ERN_DIST query and it contains the same data as the Labor Distribution report, except in a much more detailed format. While the report is summarized by accounting period and chart string, the query lists every transaction that makes up the total amount. The second query is the UV_FY_ENCUMBRANCE query. This query displays the amount encumbered by person by chart string for the fiscal year. It is also important to note that PeopleSoft calculates the remaining encumbrances based on the number of work days that remain in the fiscal year instead of based on the number of pay periods. This can mean that the sum of the total payroll expenses to date plus the remaining encumbrance does not equal zero. The amounts can be off by approximately $100 per person depending on how far into the fiscal year we are. At the end of the year, the discrepancy is cleared up because all payroll encumbrances are zeroed out.
 

In the Financials System, in addition to the sections of the UVM budget reports that list payroll expenses and encumbrances by person for the selected fiscal year and accounting period range, there is a query called UV_GL_HR_ACCTG_LINE which lists by person the expenses by journal date. This is a good analysis tool to use to see exactly when payroll expenses for a particular person posted to the Financials system.
 

EPM Reports
 

The UVM Budgeting system, EPM, has a few reports that are used during the budget building season. Throughout the year though, most users do not need to run reports in EPM.
 

Other Reports
 

There are other reports that users have access to in EPM, Financials and HCM. Job aids for those reports are available on the Learning Services website. For specific situations, these reports can be useful. However, for the vast majority of those using PeopleSoft to manage budget and financial information, the reports and queries mentioned in this section will meet your day-to-day, month-to-month and annual financial reporting needs.
 

UVM Monthly Steps for Business Managers
 

On a monthly basis, business managers should ensure that all transactions that should be completed are completed. They should review the transactions that occurred for the month and make sure that these are all appropriate, expected and charged to the correct chart string. All expense reports and travel authorizations should be approved and all PurCard reallocations should be completed. All budget checking errors should be resolved. All deposits should be made to the cashier’s office. The Closeout report and budget transaction detail report are good reports to use during the month to monitor the state of the budget and surrounding activities. The UVM Budget Reports should then be used after month end. The work done before month-end will ensure that the Budget Reports are up-to-date and include all transactions for the month and that all of the transactions are correct. If the business manager supports PIs or faculty, the relevant information should be provided to these people so that they are aware of their budget situation and so that they can ensure that the charges to their projects or departments are correct.

Return to Financial Management-Operations Manual Home Page
 
5.6 Managing Expenditures - Commitment Control

Overview

PeopleSoft Commitment Control provides the following business processes:

Commitment control enables UVM to track or control commitments, obligations, or expenditures. All transactions initiated from the PeopleSoft application (Payroll, accounts payable and purchasing, travel advances and authorizations, AR deposits, and journal entries) are presented to the budget processor, a process that performs both budget journal posting and transaction budget- checking.

  
Budget checking equation:

    Budget (+ recognized Revenue)
    - Expense
    - Encumbrance
    - Pre-Encumbrance
    = Available Funds

When transactions do not pass the budget-checking process they are identified by the system as exceptions. Common exceptions are:
UVM Budgeting Overview Mini-Manual

You can correct errors for transactions by taking one or more of the following actions:
UVM Budgeting Overview Mini-Manual

(Only a user with proper authorities can perform this type of correction.)

Commitment Control security can protect specific KK functions performed by users for specific chartfield combinations:

The system deducts each type of financial obligation from the budget and tracks it according to obligation type; budget managers can determine how many dollars are committed in pre-encumbrances, encumbrances, and expenditures.


The budgets overview inquiry is designed to provide both detail and summary information across chart strings. Click here for detailed instructions on how to run this inquiry.

Alternatively, the budget status report is available in both .pdf and .csv file formats. Click here for details on how to run the report.

Ledger Groups

Commitment control uses the ledger group types Commitment Control Expense and Commitment Control Revenue. The Commitment Control Expense ledger group type typically contains a budget, pre-encumbrance, encumbrance, and expense ledger. The Commitment Control Revenue ledger group type typically contains a budget, recognized revenue, and collected revenue ledger.
 
Ledger Group Description
DETAIL_KK This is the ledger group where all current fiscal year expense transactions (including encumbrances, pre-encumbrances and expenses) will post in Commitment Control. [Transactions will post in this ledger at the detail account level instead of the E-level.) 
AG_RELATED The ledger where all expenses for ag-related projects will post in commitment control. [Transactions are primarily recorded at the C-level, but some of the new Extension projects that start in October 2007 will have transactions recorded at the F-level. This ledger group may store information in all fields.]
BUMP_REV This is where revenue NOT associated with a project, that DOES increase spending authority of an expense chartstring, will post in commitment control. [Transactions are recorded at the B-account level. This ledger group stores only the Account, Operating Unit, Department, Fund, Source and Program fields; you must leave all other fields blank when running reports on this ledger group.]
OPREV This is where revenue not associated with a project will post in commitment control. Transactions are recorded at the E-level in (at the detail account level in FY07). Note: this ledger group does not store the Function, PC Business Unit, Project, Activity or Property fields.
OPS_CH This is where the detail of expense transactions not associated with a project will post in commitment control. Transactions are recorded at the E-level. [This ledger group does not store the PC Business Unit, Project or Activity fields.]

Control Levels

Control options defined

If a transaction creates a budget exception: A warning or error is generated.

Tracking with Budget: If there is a corresponding budget row (even a zero budget row), a warning for exceptions is generated.

Tracking without Budget: Whether or not a budget row exists - No budget checking is done; no warnings or errors are issued.

Position Management
 

Overview
 

The compensation package for faculty, staff, and administration makes up 67% of the general fund budget and 61% of the University of Vermont’s total operating budget. The University maintains a position management process that enables management of the number, type, and allocation of faculty, staff, and administrative positions. The position (as opposed to individual employees who fill positions) forms the basis for authorizing, tracking and updating budget allocations to units across the campus. (Position management is not used by formula funded units as those budgets are defined on a revenue rather than expense basis.)
The overall goals of position management are:

The general operating principles include:


Position Budgets
 

Positions will be managed in terms of “position budgets” related to the home department in each budgetary unit. The primary components of the position budget for each reporting unit will include:
 

Position – A defined body of work that has been authorized to be performed in support of UVM’s mission. It is identified by position number in the Human Resources (HR) System and includes attributes related to the position (e.g. position title, term, pay grade)
 

Job Function Code - Natural groupings of positions based on contract type and similarity of work.  Job Function Codes include:

Funding Commitments
- Includes the source(s) of funding (general fund, income/expense, endowment, formula funds, grants/contracts, gift, plant fund), identified as either short-term (year-by-year decision) or long-term (5 or more years) that support the position. If the position and associated FTE are partially or wholly funded by a unit other than the home department of the position, this information is included for both reporting areas.

Position Roster Report - A report of a unit’s position budgets, including all positions identified by job function code and funding commitments (including funding source, FTE, long-term or short-term and responsible department for the funding). It displays current incumbent information as well as the funding commitment(s) that support the position.
 

Technology
 

Position management is maintained within the Position Allowance Model (PAM), as a part of PeopleSoft Enterprise Performance Management (EPM).
 

KA 12 - the system tool that transfers position information from the HR System into PAM. PAM provides an ongoing reporting and management tool for maintaining position budgets. It also forms the basis to create new fiscal year (NY) budgets using established position budgets.

The position roster report draws on position funding commitment and position FTE data stored in PAM, and incumbent information from the Human Resources System.
 

Position Management Cycle
 

Financial Analysis & Budgeting (FAB) reviews positions and associated budgets during NY budget building and as changes occur throughout the fiscal year. As a part of NY budget reconciliation, FAB assesses how the sum of general fund long-term funding commitments as identified in PAM compares to the base budgets for salaries and wages in order to assure that there is sufficient budget capacity to support the positions that are active in the new budget year. Discrepancies, if any, are reconciled with the affected unit before the budget can be approved.
 

Changes in positions and associated budgets occur throughout the fiscal year for a variety of reasons, such as a reclassification, off-cycle increase, or a new hire. The changes are defined and tracked by the unit responsible for the position. Position changes that occur after NY budget building are communicated to FAB via a Position Change Order (PCO). The PCO Matrix outlines the situations to which a PCO is required. Review and approval of positions and associated budgets by FAB must occur in the following cases:
 
  Position Management - New Year
        Budget Building
 
Setting employee assignment salaries and associated position budgets are two key activities for main campus budget-builders (College of Medicine is formula funded and therefore does not set position budgets within PAM).
 

The assignment salary budgeting activity is employee-focused and includes new fiscal year assignment salaries, FTE’s, and distributions. This information will be used to update the Human Resources System (HCM-Job Data).
 

The Position Allowance Model is position-focused and includes new fiscal year position budget information, position FTE, term, and the funding commitment(s) that support the position.
   

Position funding commitments may differ from how the salary is distributed within a fiscal year. The position funding commitment is the unit’s long-term budget plan for that position. An employee’s salary distribution identifies the source(s) from which the salary is paid within the fiscal year. Click here for more information on working with PAM.
 

Key to Position Roster Report

To run the position roster report, log into PeopleSoft-EPM. Launch the report from the UVM Reports menu (UVM Reports>Non Budget Building Roster Rpt). It can be downloaded to either a .pdf file or a .csv spreadsheet file. Click here for more information.
 

Department – The home department to which a position is assigned to.
 

Job Function Code - Natural groupings of positions based on contract type and similarity of work.
 

Position Tree # - A five-digit number beginning with “NP” (NP_xxxxx) that identifies a grouping of pooled positions.  The position tree number is followed by a pooled description. The description begins with the home department of the pooled positions, followed by the word “Pool” and a subsequent identifying phrase (ex. 30000_Pool-Provost).
 

Position # - Identifies a University position within the HR System.

Position Title - Refers to the job code assigned to the position within the HR System.

Union Code – For staff positions, the union code is position-driven based on work type (NU-Non Union, TM-Teamsters, UE-United Electrical). For faculty positions, the union code is employee-driven based on union standing (NU, U1-UA Full-Time, U2-UA Part-Time, U3-UA PT in Full-Time Union).
 

Incumbent – The name of the current employee filling the position. It will also indicate if the position is unfilled.
 

Pay Grade – Reflects the salary grade associated with position title of the incumbent.
 

Employee Term (Emp Trm) – Indicates the number of months the individual is normally employed during the year.
 

Assignment FTE (Emp FTE) – The FTE (full-time equivalency) for a particular employee assignment. Must be between 0.00 and 1.00.
 

Position Term – The number of months during the normal work year that the position budget is based on. It may differ from the employee term as it represents the unit’s long-term budget plan for the position.
 

Position FTE – The FTE (full-time equivalency) that the position budget is based on during the normal work year. It may differ from the employee assignment FTE as it represents the unit’s long-term budget plan for the position.
 

Fund Type - Identifies the source(s) of funding for the position.  Examples are fund 100 for General Funds, fund 150 for Income/Expense, and fund 300 for Grants/Contracts.
 

Funding Long-Term (L/T) - The portion of the position FTE (0.00 to 1.00) identified as having a long-term funding commitment. This is often referred to as the “base budget” commitment when used in conjunction with general funds. A long-term commitment is a five year or greater plan.
 

Funding Short-Term (S/T) – The portion of the position FTE (0.00 to 1.00) identified as having a short-term funding commitment. A short-term commitment is a year-to-year or term-of-contract plan.
 

Department (Dept) – Used to identify the department responsible for the funding of the position when a department other than the position’s home department manages the dollars.
 

Program (Prog) – Used infrequently to indicate a few special areas of funding support. Valid values all begin with “B”:

VALUE DESCRIPTION
B104 BO - Admin Svcs Program
B106 BO - AG Experiment Station
B107 BO - Extension
B108 BO - McStennis
B109 BO - AG Related Services
B115 BO - Academic Commitments
B350 BO - Integrated Biology
 
Position Long-Term (LT) Salary – The dollar amount of long-term funding support to the position’s budget.
 

Employee Salary – The salary or annualized hourly rate applicable to the incumbent’s assignment salary during the normal work year. If an individual occupies more than one position then each position will have an assignment salary.
 

Position Salary – The total of all funding commitments (long-term and short-term) that make up the position budget.

Employee and Position Budgeting Mini-Manual

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5.7 Grants & Contracts
 

This section is currently under development.

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5.8 Non-Grant Billing and Accounts Receivable

Overview
 

Billing and updating accounts receivable (AR) for services to individuals including students, faculty, staff, and others is accomplished through the Banner Student Information System by Student Financial Services. For details of this process, see Section 5.9 - Student Financial Services.

Billing for sponsored projects is accomplished in PeopleSoft Billing/AR by Grants and Contracts Administration. See
Section 5.7 for sponsored project billing.

Billing and updating AR for non-sponsored organizations is accomplished in the PeopleSoft Billing/AR module by the General Accounting Office in the Financial Reporting and Accounting Services Department. Charges to both Banner and PeopleSoft non-sponsored customers can also be entered by authorized UVM departments.

The PeopleSoft External Billing system allows users to send bills to entities outside UVM. University departments must be established as a Business Unit within PeopleSoft to bill customers. Billers must have the appropriate security to access the billing module and the accounts receivable module.

General Accounting runs the bills monthly and prints and mails the invoice to the customers. The invoices have payment coupons included in the mailing. Customers remit payment with the coupon to the lock box address.


PS Billing/Invoicing Access in PeopleSoft
 

Access to the PeopleSoft Billing and Receivables module is through a footprint request from the requestor's supervisor. Indicate whether standard billing, recurring billing, or both is needed. Work with General Accounting to get customers, distribution codes, charge codes, etc. set up. General Accounting can also provide any training.
 

Charges
 

Direct Departmental Input
 

Charges/credits can be posted to a customer’s account by the business units. They must then review the bills, make corrections if necessary, and mark the bills as ready for invoicing. The actual printing of invoices is done centrally by General Accounting.
 

Billing Project

For customers that are billed by many departments like Sodexo, sometimes a project with the activity (BLLN) is set up in PeopleSoft to collect all the charges for the month. General Accounting then creates the bill in PeopleSoft based on the project report. Only General Accounting can set up projects with the project activity of BLLN.
 

Special Billing Situations
 

There are a few special agreements where all charges are put on chart strings with a specific source, General Accounting uses a transaction report to create the billing in PeopleSoft. An example is the FAHC commitment invoice which is prepared based upon the activity on the commitment source chart strings. A report of the detailed transactions is sent with the invoice.
 

Invoices and Statements
 

Once the business unit has put the bills in ready status, General Accounting completes the monthly billing process that creates and prints individual invoices for each customer for each charge. This usually occurs around the middle of the month. Invoices are mailed either to the customer, or to the billing department if additional back-up is to be mailed with the invoice to the customer. Statements are also generated and mailed to remind customers of their past due balances.

 

Payments
 

Lock Box
 

The PeopleSoft invoices are printed on special stock with a stub at the bottom that is to be returned by the customer with their payment. The coupon identifies the address to mail the payment to the PS AR lock box. The bank prepares a data file of payments and sends it to the Cashier’s Office daily. PeopleSoft assigns a deposit ID number to each item in the file. Once the deposits are identified the Cashier's Office creates the AR direct deposit journal in PeopleSoft. Daily Lock Box information will balance to the Cashier’s batches or show any discrepancy. The discrepancy will be manually resolved by Grant and Contract Administrative Services, General Accounting, or the Cashier’s Office.
 

Any additional information received with a payment, e.g., check stubs, payment coupons, letters, notes, etc., is copied to a CD and sent to PS AR Billing/Central Billing Department. There will be 3-4 CDs each month depending on volume. The bank will match the payment by invoice ID or Customer number. Any unmatched payments, which are identified by processing the PS payment predictor, are then manually matched by Central Billing.
 

Direct
 

The Cashier’s Office may receive AR customer payments from departments for those customers who don’t use the PS AR Lockbox address. The receiving departments use a non-sponsored customer transmittal form which identifies the customer ID and invoice ID where the payment should be applied, rather than the departmental chartstring. These payments match when Payment Predictor is run.
 

The University’s main depository account might also receive ACH customer payments which will then be applied by Central Billing upon notification from the Treasury Department.
 

Collections
 

The billing departments are responsible for monitoring their customer accounts, contacting customers and collecting delinquent invoices. General Accounting/Central Billing reviews the AR aging report monthly and contacts billing departments about balances that are more than 120+ days old. If there is no arranged payment plan, General Accounting reverses the original entry, debiting the department’s revenue. There is no central allowance for bad debts for non-sponsored organizations billings.
 

Refunds

General Accounting will process refunds at the request of the customer or billing department if there is a credit balance on the customer’s account which cannot be applied to the customer’s existing or an immediate future expense. This process is accomplished through a link between the AR and Accounts Payable modules.

Definitions
 
Central Billing - Two departments which run the AR Invoicing Process for UVM PeopleSoft (PS) billing. General Accounting for Non-sponsored Billing and Grants and Contracts Administration for Sponsored Billing.

Sponsored Billing - PeopleSoft Billing for grant and contract customers
 
Non-sponsored Organizations Billing - PeopleSoft Billing non-individuals, non-sponsored customers
 

PeopleSoft Definitions for the Billing and Accounts Receivable Modules
 
Accounts Receivable Business Unit - The UVM Business Unit in the receivables module is AR001 and is used for both sponsored and non-sponsored billing. 


Bill Type - Each business unit has an invoice prefix called a Bill Type, e.g., the bookstore would have a business unit of BI008 with a bill type (an invoice prefix) of BKS-xxxxxxx (x’s being the number portion of the invoice #).
 
Billing Cycle  - For Non-Sponsored PS Invoicing, the billing cycle is once each month at mid-month. Sponsored billing occurs as needed, sometimes daily.

Billing Module - This module is used to prepare invoices, print the invoices and statements and create transactions to update the GL.

Billing Module Business Unit - A Business Unit in the Billing Module is a group of compatible billing entities. For example, all the departments that bill in the Rubenstein School of Environment and Natural Resources can be under one Business Unit, but Administration & Facilities Services has several Business Units (telecommunications, custodian, bookstore, etc.)  Each business unit starts with BIxxx (where ‘x’ is a unique number). 

Customers - Business organizations and entities which are external to the university for which UVM departments provide sales or services. The PeopleSoft customer may have multiple addresses for the same customer number. 


Charge Codes - These codes simplify the process of generating bills by automatically generating the description of the service or product which is being billed. Charge codes are set up in PeopleSoft Billing for the most frequent charges for which departments bill their customers and each is unique to the department requesting the code. Departments may have multiple codes. The charge code screen also allows the biller to change the amount of the charge at the time the description is generated.

Distribution Codes - These codes are set up in PeopleSoft to generate accounting entries by defining an established combination of chart field values when the code is entered into the bill. UVM has established Revenue Distribution Codes for all billing departments. Billing Departments can have multiple revenue chart strings/distribution codes.

Customer Type - In PeopleSoft, there is a customer type indicating whether the customer is for non-sponsored or sponsored billing. The customer type of sponsored or non-sponsored must not be used interchangeably. 

Payment Predictor – An automated process which matches newly received payments with open items for a customer, based on a pre-defined set of rules in the AR module.
 
Recurring Billing - Recurring Billing is a type of PS Standard Billing and can be selected on the standard billing Header tab. It will create a template for repeat billing of the same dollar value billing item and customer on an established schedule thereby generating an invoice when needed.
 
Standard Billing - Standard Billing, as a PeopleSoft (PS) process, refers to the established screens needed by the biller to issue items to bill. The tab layouts are all the same for each billing department, creating the same billing format for all departments. This format is used for generation of all types of invoices at UVM.  Standard Billing, as a PS Menu selection, lists all bills created, at all billing statuses by business unit.

External Billing Mini-Manual

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5.9 Student Financial Services

Overview

Student Financial Services performs several core functions of the University including billing the students for their tuitionand other related expenses, creating and disbursing their financial aid funds including University scholarships, and coordinating the repayment of institutional and Federal Perkins and Health Profession Loans after the student has left the University.

There are many types of financial aid. Financial aid may take the form of grants (Federal, State and University), scholarships (outside agencies or University), and/or Federal Work Study or loans (Federal, University or Personal).  Each of these types of aid has its own applicable rules and regulations. Most of these regulations do not affect the University population as a whole, but there are several that do. 

Student Status and Compliance Issues

The most important thing that the academic units can do to assist the University in compliance is to keep the student system updated with the accurate student status. Each academic unit must be aware of how vital it is that it keeps the University up to date on each student’s status. If it comes to the attention of a University official that a student is no longer actively enrolled here, the official needs to ensure that  updated information is in the student system, (e.g., dropping a student from a class roster).

The University is required to provide enrollment information at least every 60 days to the National Student Clearinghouse. For students enrolled at UVM, we must provide student name, address, date of birth, and enrollment status (full-time, part-time, graduated). The accuracy of this information affects a student who is repaying their student loans from either UVM or other schools.

Another requirement for federal financial aid participation is that UVM return any federal financial aid funds for students who do not complete the semester. We are also required to perform the calculation of unearned Title IV funds within 30 days of the date that a University official becomes aware that the student has withdrawn from school. The University has 15 days from the calculation date to return the funds to the Department of Education. Thus, if a Dean’s office knows on October 1 that the student has withdrawn but does not notify the Registrar’s Office until October 20, Student Financial Services has only 10 days remaining to make the appropriate calculation and otherwise to remain in compliance with the regulation.

Institutional Scholarships

If a department wishes to assist a student with an educational expense by means of departmental or grant funds, it must review the policy on awarding scholarships and prizes and complete the form whose link can be found within the policy. Please note that these scholarships must be taken into account as a resource of the student and may affect an already existing financial aid award. If you have questions, please contact Student Financial Services at 656-5700.

Federal Work Study

The Federal Work Study Program is a need-based financial aid award partially funded by the federal government and matched with a percentage contributed by the University. These students work in many campus departments at no direct cost to the department. If a work-study student works more hours than their financial aid award, the department is responsible for payment to the student for the overage. It is thus important for departmental personnel who supervise work study students to monitor these students’ hours. Click here for important information and reports that can be run to find remaining eligibility. For more information please contact the Federal work-study coordinator at 656-3450.

Tuition Remission

One benefit of being a UVM employee (click here for eligibility criteria) is that the employee, their dependent children and spouses (spouses may not receive credits, only audit classes) can attend the University, tuition-free. To obtain this benefit for a dependent child or spouse, the employee must annually complete a tuition remission form and submit it to the Benefits Office. An employee does not have to complete this form if they are the student because it is an automated process. The required form can be found here; please note, however, that another form must be completed if the dependent or spouse is also enrolling for the summer session. Once the Benefits Office approves the tuition remission request, it is sent to Student Financial Services for processing. The tuition remission benefit will be posted to the student account as a credit in the amount of the tuition once benefits Office has received and processed the appropriate forms.

Banner Billing/AR
 
Charges
 
Charges/credits can be posted to the person’s account in the following ways:
 
1. Tuition and Fees

 
The Banner student information system is an integrated system that automatically posts charges/credits to a student’s account for tuition and fees nightly, as a student changes their course registration. Course specific fees must be approved through the Budget Office before they can be assigned to a course. Click
here for the request form. The completed form is sent to the Budget office.
 
2. Room, Board, & other file uploads
 
Charges/credits can be posted to a person’s account with a file transfer. If files are in the proper format, they can be converted to batch post charges to a person’s account. This is done by departments with large volumes of charges like Residential Life (for room and meal charges) and Transportation and Parking (for parking fines). Any department wishing to look into this option should contact the Student Financial Services Technology Specialist at 656-1485 to discuss options.
 
3. Manual Charges
 
Charges/credits can be posted to a person’s account individually by either members of Student Financial Services or by staff in outlying departments. Not all charges can be billed to students’ accounts. Some charges must be paid for by students at point of sale by use of cash, CatCard, credit card, or with a check When a department is looking to post new charges to a person’s account, it would need to contact the Student Financial Services, Associate Director for Customer Service at 656-5700 to discuss whether this is an appropriate type of charge to be posting to a person’s account.
 
Access
 
The Banner student system is set up with security built in. When a person is granted update access to the student system, they are given certain privileges that will allow them to only post charges/credits of a certain type to an account. Click
here for the application to request banner access. The completed application is submitted to the Registrar's Office.
 
Once access has been granted, Student Financial services provides individual training on how to use the Banner Student Information System. Send an e-mail to
sfs@uvm.edu to request your training.
 
Statements
 
Once charges and credits have posted to a person’s account, a statement is generated around the middle of each month. (Click
here to view the actual billing dates.)  If the statement is for a student who is currently enrolled, it will be sent to our electronic billing and payment system, QuikPAY, who posts the bill to their electronic site and sends out an e-mail, notifying the student and anyone whom they have authorized to view their account, that a new statement has been posted and they should log into the billing system to view their statement. As long there is activity or a balance due on the account, they will get a monthly e-mail notice of the new statement. Once a bill is considered past due, a hold is placed on the account which would prevent the student from any further registration, obtaining their grade report or from getting an official transcript. Students get e-mail notifications prior to placements of holds on their accounts along with instructions on how to settle their bills.
 
Payments
 
Payments to a person’s account can happen in several ways:
Collection
 
When a person who is not currently enrolled for classes has a balance, a statement will be printed and mailed for payment. We will mail only two paper statements before sending their account (if the balance due is $200 or greater) to a third party servicer for collection on our behalf. If payment has not been received within 60 days, notice of the delinquency will be posted to the student’s credit history. After 90 days, the University contracts with an outside professional collection agency to collect the balance. If after one year, the payment has still not been received, we will write-off the balance due as uncollectible. Charges for tuition and fees go to the reserve for doubtful accounts while departmental charges such as parking and library fines and athletic department fees are charged back as a bad debt to departments, thereby reducing the revenue of the department.
 
If the balance due is less than $200, we automatically write off the balance due as uncollectible and charge back as a bad debt to departments (if the balance is for a specific transaction) or to the reserve for doubtful accounts (if the balance is for tuition and fees), or to a combination of the two depending on what makes up the outstanding balance due, and perform no further collection activity. If payment is received after a debt has been charged back to the department or to the reserve, an adjusting entry is done to reflect the recovery of that bad debt.
 
Accounts Receivable
 
PeopleSoft accounts 11030, AR and 11031, AR allowance, are reserved for Banner AR updates which occur nightly.  The reconciliation of Banner AR & PeopleSoft AR is done by Student Financial Services.
 
Reports
 
The Banner student information system is currently unable to generate reports for units other than the offices of Student Financial Services, the Registrar or Admissions. Please contact one of these offices if you have any questions.
 
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5.10 Prepaid Expenses and Deferred Revenue

Definitions
 
Prepaid Expenses or Deferred Charges - Costs which are incurred in the current year for future year’s activities are recorded as an asset (prepaid expense) and amortized over the periods to which the charges relate. Examples are rent paid in advance, subscriptions for the new year, or payments in the current year for software licenses for the next year.
 
Costs incurred in the current year for goods for ongoing activities that are not specifically related to the next fiscal year, such as departmental supplies that might be used in both years, should be expensed in the current year (no prepaid is necessary).
 
Deferred Revenue - Payments received for services rendered in a future fiscal year are recorded as liability (deferred revenue) in the current fiscal year. The liability is eliminated and the revenue recognized in the year the service is provided. Examples are tuition for summer session courses taught in July & August, fees received in May or June, advance sale of athletic tickets for future year’s season, and fixed price grants when the money is received up front and revenue is recognized as expenses are incurred.

Summer Session Revenue - Since summer session courses are taught from May through August, but most of the tuition is received in May, the portion of tuition and fees revenue applicable to courses taught in July and August must be reclassified from revenue to deferred revenue in the current year. CE prepares a schedule of when courses are held and the tuition per course and classifies them as old or new year depending on when the majority of the class is held. Financial Reporting and Accounting Services then records the reclassification of tuition and fees revenue to deferred revenue. In the new year, the deferred revenue is reversed and revenue for July and August courses is recognized. 
 
Expense Faculty - Since faculty are paid when the course is taught, this expense need not be reclassified to prepaid.
 
Scholarships/Waivers - Summer session scholarship and employee tuition benefit expenses are often recorded in the current fiscal year. A Banner report is run at 6/30 to identify these expenses. They are then reclassified by Financial Reporting and Accounting Services to prepaid expense based on the ratio of summer session tuition revenue to summer session deferred revenue. In the new year, the reclassification entry is reversed and the expense recognized. Summer athletic scholarships are split and recorded in Banner in the proper year to begin with, so no reclassification is necessary.
 
Purchases for the New Year

Requisitions
 
Requisitions for goods that relate to a new year activity should use a prepaid category on the requisition. This will charge a prepaid account (13xxx) in the general ledger. The function code must be 000, or the requisition will fail budget checking.
 
If the invoice is paid in the old fiscal year, the requester must then prepare a journal in the new fiscal year to move the payment from the prepaid account and function 000 to an appropriate expense account and function.
 
If the invoice was not paid in the old fiscal, the purchase order will be edited to reflect the correct category, expense account, and function in the new fiscal year. The requester should enter this chartstring information into a comment field when the requisition is initiated. The invoice will be paid in the new fiscal year using the correct expense account and function.
 
Some examples of requisitions on prepaid categories are new year rent, insurance, and software licenses. Routine purchases like supplies made in the current year that may also be used in later years should not use a prepaid category unless the amounts to be used in the future year are specifically designated for a new year program.
 
PurCard

Purchases made on the PurCard for future year activity should be put on the prepaid account (13xxx) and function 000 when the journal is reallocated to the old fiscal year. The cardholder or proxy must then prepare a journal in the new year to move the payment from the prepaid account and function 000 to an appropriate expense account and function. 
 
Some examples of old year PurCard transactions that need to be allocated to prepaid accounts are registration fees and airfare for a conferences held in the new year. These should be allocated to account 13102, PurCard Travel.
 
Deposits to Others

Occasionally UVM may be required to put a deposit down on a purchase to show good faith.

Non-Refundable

If these deposits are non-refundable they should be handled just like other future year expenses, i.e., on prepaid accounts 13xxx. 

Refundable

If deposits are refundable (such as damage deposits on leased space), they should be charged to receivable account 11470. When the money is returned to UVM, it is deposited to account 11470. If some of the deposit was retained to cover damages, a journal must be prepared to debit damage expense and credit 11470, so that the amount in 11470 zeros out.

Prepaid Transactions Mini-Manual

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5.11 Procurement and Accounts Payable

5.11.1 Contract Approval and Signatory Authority
5.11.2 Purchasing Authority, Delegations & Dollar Amounts
5.11.3 Procurement or Lease of Services and Goods
5.11.4 Contracting for External Consultants & Other Professional Services
5.11.5 Employee vs. Independent Contractor
5.11.6 Vendor Selection, Bidding & Cost Analysis
5.11.7 Vendor Set-up, Creation and Master File
5.11.8 Goods & Services Exempt from Purchase Orders
5.11.9 Permitted Exceptions to Quotation and RFP Process
5.11.10 Terms & Conditions for All Purchases
5.11.11 Purchase of Restricted Items
5.11.12 Radioactive Materials
5.11.13 Hazardous Materials
5.11.14 Accounts Payable Procedures
5.11.15 Payments to Non-resident Aliens
5.11.16 Subject Payments
5.11.17 PurCard
5.11.18 Receipt of Goods & Services
5.11.19 Catering
5.11.20 Relocation Expenses
5.11.21 Awards & Prizes
5.11.22 Staff Emergency Loans

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Overview

The objective of the University purchasing process, exercised through the policies and procedures of Procurement Services, is to identify, select and acquire needed goods and services as economically as possible within specified standards of quality and service. This is done in a manner that provides for accountability of University expenditures. All University personnel are required to abide by University Procurement Services policies and procedures when requisitioning goods and services unless otherwise exempted under those policies and procedures.
 

5.11.1 Contract Approval and Signatory Authority
 

Overview
 

The Contract Approval and Signatory Authority policy is intended to ensure that any commitment of University resources and all related agreements obligating the University are properly reviewed and approved. This Policy describes necessary steps in the contract review process and identifies the individuals who are authorized to commit institutional resources on behalf of the University through agreements executed in its name.   Individuals have the authority to enter into negotiations, approve and/or sign contracts on behalf of the University only pursuant to (1) a resolution of the Board; (2) a valid delegation of authority from the President or the University Board of Trustees (“Board of Trustees”); or (3) a purchase made in accordance with the University Procurement or Lease of Services and Goods and Contract Approval and Signatory Authority policies.
 

Unauthorized commitments or agreements
 

The University does not recognize an agreement as binding unless the UVM individual who enters into the commitment has contracting authority. Individuals who enter into agreements without such authority may be personally liable for the commitments set forth in such agreements, whether oral or written. Employees who enter into unauthorized agreements may also be subject to disciplinary action, up to and including termination.
 

Related Documents/Policies
 

Interim Revised Contract Approval and Signatory Authority Requirements 5.23.2008
Prior Version - Contract Approval and Signatory Chart (For contracts not identified on interim chart)
Memo and FAQ on Interim Procurement Approval Processes – June 2, 2008
Contract Approval and Signatory Authority Policy

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5.11.2 Purchasing Authority, Delegations & Dollar Amounts

Overview 


This policy identifies who within the University is authorized to commit institutional resources on behalf of the University through agreements executed in its name. It also contains protocols for the delegation of signatory authority.
 

The Vice President for Finance has delegated to the Director of Procurement Services, through the Controller’s Office, the authority to approve purchases and to enter into contracts, leases, or purchase agreements for amounts not to exceed $50,000 in aggregate. A purchase order for goods or services whose value exceeds $50,000 but is less than $250,000 in aggregate must also be approved by the University Controller. A purchase order for goods or services other than consulting or professional services whose value exceeds $250,000 in aggregate must also be approved by the Vice President for Finance. A purchase order for goods or services other than consulting or professional services whose value exceeds $500,000 must also be approved by the President.  A purchase order for goods or services other than consulting or professional services whose value is equal to or greater than $1 million in aggregate must also be approved by the Board of Trustees.  

A purchase order for consulting or professional services whose value is $250,000 or greater in aggregate requires approval by the Vice President for Finance or the President and the Board of Trustees.

Departments that seek to enter into agreements whose term is more than one (1) year may submit a request containing a written justification to the Director of Procurement Services for approval. Agreements whose term exceeds three (3) years must be approved by the Vice President for Finance.

Please see the matrix of Purchase Order and Contract Approval Requirements for Procurement or Lease of Goods and Services for a summary of the purchase approvals, methods of purchase, and contract review and approval for purchases based on their term and aggregate amount.
 

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5.11.3 Procurement or Lease of Services and Goods
 

Overview
 

The University of Vermont has implemented procedures to ensure any purchase, regardless of funding source, is completed in compliance with University policies and legal requirements.

Exemption for Certain Services Contracts
 
Because of the unique nature of the service needs of certain University operations and programs, certain services contracts are exempt from the requirements of this Policy. Offices responsible for such contracts must nonetheless create, maintain and comply with written internal procedures describing how contracts and expenditures will be handled. These procedures must be approved in advance by the President or his/her designee in consultation with the Vice President for Finance.
 
Contracts subject to this exemption are:
Purchase orders that result from these contracts still require approvals for dollar thresholds as outlined in the matrix of Purchase Order and Contract Approval Requirements for Procurement or Lease of Goods and Services.
Related Documents/Policies
 

Purchase Order and Contract Approval Requirements for Procurement or Lease of Goods and Services
Purchasing Card Program (PurCard)
Independent Contractor Policy

Guides
 

Creating a Requisition

Forms


Quotation Evaluation Form – this form is required by departments to record and compare quotations received from vendors for purchases whose value exceeds $25,000 but is less than $50,000.
Single/Sole Source Justification Form - This form is required for all purchases whose value exceeds $50,000. The requesting department must detail the reason(s) why an exception to the RFP process is being requested.
Independent Contractor vs. Employee Determination Form – must be completed for all individuals, to determine vendor classification. See Section 4.19.3.1.4.
W9 Vendor Form – must be completed by vendors receiving payment from Procurement Services.

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5.11.4 Contracting for External Consultants & Other Professional Services
 

Overview

Professional Services require completion of a requisition and creation of a purchase order. If over stated thresholds, Board of Trustee approval may be required.

A purchase order for consulting or professional services whose value is $250,000 or greater in aggregate requires approval by the Vice President for Finance or the President and the Board of Trustees.

Related Documents/Policies

Procurement or Lease of Services and Goods

Step-by-Step Guides
 

Creating a Requisition

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5.11.5 Employee vs. Independent Contractors
 

Overview
 

Under federal tax law requirements, the University must properly determine whether a personal service provider should be classified as an employee or as an independent contractor before any services are performed or purchase requisitions are initiated. The characterization of an individual as either an independent contractor or as an employee has important tax and fiscal consequences to both the University and the individual. The Internal Revenue Service (IRS) and other government agencies assess employers with significant penalties for misclassifying employees as independent contractors.

Related Documents/Policies
 

Employee vs. Independent Contractor Policy
Payments to Nonresident Aliens Policy
 

Classification Criteria
 

In order to compensate an individual as an independent contractor the authorized hiring official must first review the Employee vs. Independent Contractor Classification Criteria in consultation with the Controller's Official. If review of the classification criteria in their entirety does not present a strong case for compensating the individual as an independent contractor, payment of the individual must be pursued through HR/Payroll. The Employee vs. Independent Contractor Status Determination Form is found here.

Note: If the Form as completed, at any point, indicates that the individual should be compensated as an employee, a purchase requisition may not be initiated; rather, any such payment for services rendered must be initiated through HR/Payroll. If the Form as completed indicates that the individual should be classified as an Independent Contractor, the information provided will be made available to internal and external auditors, IRS examiners and others as required.

 
Procedure Steps
 
1 In a web browser, navigate to UVM Policies web site
2 Select Employee vs. Independent Contractor
3 Select Employee vs. Independent Contractor Status Determination Form
4 Enter the following information in Section 1:
     Name of payee
     Social Security Number
     Requisition Number
     Citizenship information
     Department
     Preparer information
5 Enter information in Section 2 regarding any UVM employment of the payee
6 Enter information in Section 3 part A or part B or part C describing service performed
7 If result determines that individual should be paid as an independent contractor, route for signature by Dean / Director / Chair / delegate
8 Route form to Procurement Services, to accompany requisition.  See Requisition procedure for additional information
9 If result determines that individual should be as an employee, contact Human Resources for payment options
 
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5.11.6 Vendor Selection, Bidding & Cost Analysis
 

Overview
 

A planned purchase of $50,000 or greater will be subject to a formal Request for Proposal (RFP) process. Procurement Services will work with the requesting department to develop specifications and criteria used in the RFP. The RFP will be issued to a minimum of three potential vendors who have been identified as having the ability to provide the good and/or service at a quality level acceptable to the University. Within the RFP document, vendors are informed of the criteria used when the University makes its selection.
 

The selection of the vendor is not determined solely on the basis of lowest net price. All proposals are reviewed relative to considerations such as, but not limited to, the following:

Procurement Services will work with the requesting department to make the vendor selection. If the contract is to be used campus-wide (office supplies or scientific supplies, for example) Procurement Services may appoint a committee to review vendor proposals and to assist in vendor selection. Once a vendor has been selected and notified by Procurement Services of its award, the department must submit a Requisition for Purchase after which Procurement Services will issue a Purchase Order.


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5.11.7 Vendor Set-up, Creation, and Master File

Overview
 

When a requisition or check request is received with a new vendor to be paid, several steps are necessary. A vendor information/W-9 form is sent to the vendor. The form includes, among other information, the TIN (Taxpayer Identification Number), vendor contact information, type of business entity and ownership, and the payment terms. The new vendor will be set up in PeopleSoft and placed on hold. This will allow for the creation of the purchase order and voucher, but stop issuing of payment until the W-9 form is on file.
       

In PeopleSoft, the procurement specialist enters the following data:

Procurement Services will not release payment to a new vendor until the completed form has been received. If the new vendor has not returned the vendor information form and Procurement Services has invoices awaiting payment, the procurement specialist will send a reminder (letter or call) to the vendor that the form needs to be completed before the University can send payment for any outstanding invoices.
 

Once the vendor has been processed correctly, any hold is removed and invoices are entered into PeopleSoft upon receipt. Once the budget checking is passed, the encumbrance is relieved and an expense is charged to the chart string. A check will issue when the payment terms are met (generally payment is due 30 days from invoice date.) Checks are printed in Procurement Services twice a week.
 

Forms
 

W9 Vendor Form

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5.11.8 Goods & Services Exempt from Purchase Orders
 

Overview

The University processes Check Request Forms for expenses such as non-employee travel, subject payments, Self-insured claim payments, nonresident alien payments, and utilities. The forms are available on the web in an excel format and are completed by the department. The form has formulas in the total columns that calculate the amounts automatically. There is no dollar limit, however there are additional approvals needed based on the total amount. Amounts over $25,000 need a Dean, Director or Chair approval, amounts between $25,000 and $50,000 require Procurement approval, amounts over $50,000 and less than $250,000 require Controller’s approval and any amount over $250,000 requires the VP of Finance to approve. The general guideline is that if a vendor sends an invoice to the University, a requisition and purchase order are used to pay the vendor. If there is no vendor invoice, a Check Request Form is used.

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5.11.9 Permitted Exceptions to Quotation and RFP Process

Overview

The Procurement Services Director is responsible for securing contracts for frequently purchased goods and services. Pursuant to Procurement policies, a department may be authorized to make a purchase under this type of contract without utilizing a competitive bid process. When it is deemed in the best interests of the University and approved by Procurement Services, departments may be permitted to purchase from any of the following contracts without utilizing a competitive process. These contracts include: University Contracts, State of Vermont Contracts, GSA Contracts, Consortium Contracts, and Educational and Institutional Cooperative Services, Inc. Any such request must be accompanied by a completed Single/Sole Source Justification Form and forwarded to Procurement Services for prior approval.
 

Purchases up to $25,000
 

Formal price solicitations are not required for items in this cost range. However, Procurement does recommend informal price-checking, which may generate substantial savings. Procurement is available to solicit pricing for departments upon request and may initiate price quotations for any purchase if it is determined by Procurement to be in the best interests of the University.
 

Purchases between $25,000 and $50,000
 

Requisitions in this cost range must be submitted to the Procurement Department with a Quotation Evaluation Form.  A minimum of three quotes should be obtained, although there are exceptions to this general rule (e.g., a sole source item). Examples of sole source items include specific software programs, certain maintenance programs, repair parts and accessories only sold by the manufacturer or its authorized representative. 

The 
Single/Sole Source Justification Form must be completed for all purchases greater than $25,000 when a waiver from the formal solicitation of bids or proposals is requested. The bidding process may not be possible due to a sole source situation or other special circumstances. The requesting department must detail the reason(s) why an exception to the RPF process is being requested.
 

Purchases greater than $50,000
 

All purchases in excess of $50,000 require the formal solicitation of bids or proposals by Procurement Services unless a sole source situation or other special circumstances exist.

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5.11.10 Terms & Conditions for All Purchases

The following terms and conditions apply to all purchase orders generated by the University, unless superseded by a separately authorized contract.
 

1. GENERAL: This purchase order, including any continuation pages attached hereto, shall constitute buyer’s offer to seller, and become a binding contract on the terms and conditions set forth herein including those on the reverse side hereof, upon seller’s written acceptance thereof or commencement of performance. No revisions of this order or any of the terms and conditions thereof shall be valid unless in writing and signed by an authorized representative of buyer and no conditions stated by seller in accepting or acknowledging this order shall be binding upon buyer if in conflict with inconsistent with or in addition to the terms and conditions contained herein unless expressly accepted in writing by an authorized representative of the buyer.
 

2. QUANTITY: The quantity of materials or services ordered or released hereunder must not be exceeded and buyer shall not be liable for and may reject any material delivered in excess of that so ordered or released.
 

3. PRICE: This purchase order must not be filled at higher prices than last quoted or charged without notice. If no price is stated on this order, seller agrees to invoice at the lowest prevailing market price. In the event seller during the performance of its obligations under this order reduces its price of materials supplied or services furnished of the same quantity, grade and qualify, seller agrees to give buyer the benefit of such reduction in price.
4. DELIVERY: Delivery must be made within the time stated on this order, failing which buyer reserves the right to purchase elsewhere, and buyer may reject materials and services not delivered or furnished on dates specified on this order. If no date is specified buyer may exercise said rights if delivery is not made within a reasonable time.
 

5. CONFORMING GOODS: Acceptance of all or any part of the goods shall not be deemed to be a waiver of buyer’s right either to cancel or to return all or any portion of the goods because of failure to conform to order, or by reason of defects, latent or patent, or other breach of warranty, or to make any claim for damages. Such rights shall be in addition to any other remedies provided by law.
 

6. LICENSE PROGRAM: All vendors using UVM trademarks must be licensed in accordance with applicable UVM protocols.
 

7. OTHER CHARGES: No charge will be allowed for packing, crating, drayage, or storage unless stated herein.
 

8. INSPECTION AND REJECTION: Materials and services purchased under this order are subject to buyer’s inspection and approval within a reasonable time after delivery. Buyer reserves the right to return at seller’s expense materials shipped or reject services furnished in excess of the requirements of this order, or defective materials or inadequate services not meeting the buyer’s specifications and standards, whether paid for or not.
 

9. INDEMNIFICATION: If seller’s work under the order involves operations by the seller outside of seller’s premises seller shall take all necessary precautions to prevent the occurrence of injury to persons or damage to property during the progress of all work it undertakes under this purchase order, including the provision of goods, equipment, services or facilities, and shall indemnify and hold harmless, UVM, its Trustees, officials, employees and/or agents from and against any and all loss and expenses (including attorney's fees) which may result in any way from any act of omission or commission on the part of seller, its agents, employees or subcontractors, except to the extent that any such damage is due directly to the sole negligence of the buyer. The seller will further indemnify and save harmless buyer, its officers, employees, agents and representatives from and against any and all demands of every nature and kind arising out of injury to or death of any subcontractor, employee, agent, representative or invitee of the seller or any subcontractor of the seller while in, on or near the premises of the buyer caused from any act or omission on the part of the seller, its agents, employees, or subcontractors, except to the extent that any loss or damage is due directly to the sole negligence of the buyer. The buyer, after such demands, may withhold from Seller any amounts at the time payable to the seller under this purchase order such sum or sums and for such period or periods that the buyer may deem necessary to protect the buyer against all possible loss or expense, including attorney’s fees, from or in connection with any such demand. If seller is furnishing any materials or products which become a part of any material of buyer, then seller will further indemnify and save harmless buyer, its employees, agents and representatives from and against any and all demands of every nature and kind arising out of injury to or death of or property damage to any third person if said injury, death and/or property damage is in any way caused from any act or omission on the part of the seller, its agents, employees, or subcontractors except to the extent that any loss or damage is due directly to the sole negligence of the buyer. This indemnification includes but is in no way limited to any defect in materials, products and services in either manufacture or design. Buyer shall not be responsible hereunder for the acts or omissions of any parties other than its officers, employees or agents.
 

10. PROPERTY OF BUYER: Its agreed by the seller that all original art work including, but not limited to, drawings, models engravings, plates, dyes, progressive color proofs, electro-types, positives, negatives and all other materials of a similar nature furnished and used by seller in connection with the fulfillment of this order or any property created for use on this order shall become and remain the exclusive property of the buyer unless otherwise specified on this order. Such original art work shall be held and stored, and be maintained in good condition by the seller, without charge and shall be delivered to the buyer upon request without charge. All drawings information or data furnished by buyer, as buyer’s exclusive property, shall be used by seller only for buyer’s work, and shall be returned promptly at buyer’s request.
 

11. TERMINATION: If seller ceases to conduct its operations in the normal course of business, (including liability to meet its obligations as they mature) or if any proceedings under bankruptcy or insolvency laws is brought by or used against seller, or a receiver for seller is applied for, or an assessment for the benefit of creditors is made by seller, buyer may terminate this order without liability except for deliveries previously made or for goods covered by this order then completed and subsequently delivered in accordance with the terms hereof. If the goods covered by this order are standard stock merchandise, buyer may terminate all or any part of the unshipped portion of this order at any time by written notice to seller, and in such event buyer shall have no further obligation for cancellation charges or otherwise except to make payment subject to other applicable terms hereof, for the goods actually shipped and in transit prior to such termination.
 

12. ENTIRE AGREEMENT: This contract contains the entire agreement of the parties. Reference to seller’s bids or proposals, if noted on this order, shall not affect the terms and conditions hereof, unless specifically provided to the contrary herein. This order may not be modified or terminated orally, and no claimed modification, termination or waiver shall be binding on buyer unless in writing signed by a duly authorized representative of buyer. No modification or waiver shall be deemed affected by seller’s acknowledgement or confirmation containing other or different terms. In the event the buyer and seller enter into a separate written agreement, the parties shall be bound, to the maximum extent possible, to the provisions of such agreement as well as the provisions of this Purchase Order Terms and Conditions document. In the event of conflict in any terms of the agreement and the terms in this document, the terms in this document will prevail. Any provisions in the agreement stating that the agreement constitutes the entire agreement between the parties or that its terms will prevail in the event of conflict, will be deemed void and without effect.
 

13. NON DISCRIMINATION: During the performance of this contract (or purchase order), the contractor/vendor agrees to comply with all Federal, state and local laws respecting non-discrimination in employment and non-segregation of facilities including, but not limited to, requirements set out at 41 CFR 60-1.4, 60-250.4 and 60-741.4, which equal opportunity clauses are hereby incorporated by reference. Notification is hereby given that compliance with these clauses may require the contractor/vendor to annually file certain reports (e.g. EEO-1 Report) with the Federal government and may require the contractor/vendor to develop written Affirmative Action Programs for Women and Minorities, covered Veterans and/or Handicapped.
 

14. UNIVERSITY OF VERMONT INSURANCE REQUIREMENTS FOR OUTSIDE VENDORS: The following minimum insurance standards shall apply to all non-University vendors performing, selling, or distributing products and services at the University of Vermont (UVM). If a product or service, in the opinion of the Department of Risk Management, represents an unusual or exceptional risk, the Department of Risk Management may establish additional insurance requirements for that product or service.
 

Commercial General Liability Insurance: Including Bodily Injury and Property Damage Liability, Independent Contractors Liability, Contractual Liability, Product Liability and Completed Operations Liability in an amount not less than $1,000,000 combined single limit, per occurrence, and $1,000,000 annual aggregate.
 

Workers Compensation and Employers Liability Insurance: For any vendors with employees, standard workers compensation as required by Vermont State statute and employer's liability insurance in an amount not less than $100,000 per accident, $500,000 annual aggregate.
 

Automobile Liability: For vendors who will drive on UVM’s premises, Automobile Liability in an amount not less than $1,000,000 per occurrence for bodily injury and property damage, including owned, hired, and non-owned vehicle coverage.
 

Professional Liability: in an amount not less than $1,000,000 each claim, when applicable.

Crime Insurance:  with a third party client’s property endorsement for vendor whose employees work on UVM’s property.

 
Liquor Liability: For vendors catering and serving alcohol at UVM events, Liquor Liability in an amount not less than $1,000,000 per occurrence for bodily injury or property damage.
 

Vendors shall name the University of Vermont as additional insured on its liability policies and shall provide a 30-day notice of cancellation or nonrenewal of coverage to the University. The University does not need to be named additional insured on the vendor’s workers compensation policy.
 

A copy of the Certificate of Insurance verifying the above coverages should be submitted to UVM Procurement Services 20 days prior to vendor selling or distributing products and services at UVM. Any liability coverages on a “claims made” basis should be designated as such on the certificate.
 

Questions concerning this policy may be directed to the UVM Department of Risk Management at 656-3242.
 

15. LICENSURE AND PERMITS: Contractor represents and warrants that it has and will maintain any licensure or certification necessary to do business in the State of Vermont and permits or other governmental authorizations necessary to perform its obligations under this agreement. It further agrees that it will defend and indemnify UVM, its trustees, officers, employees and agents for and in connection with any claims or demands, including governmental enforcement proceedings, arising out of any failure to obtain or maintain required licensure, certification and/or permits. Such defense and indemnification will include without limitation reasonable attorney's fees UVM incurs in relation to defense of such claims or demands. Notwithstanding any other limitation of liability provision herein, contractor will also make UVM whole for any financial losses it may incur as a result of any delay in or failure to complete contracted services caused by such lack of licensure or certification.
 

16. SUSPENSION & DEBARMENT: In accepting this Purchase Order or Contract, recipient certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in this transaction by any Federal department or agency. Any change in the debarred or suspended status of the recipient during the life of this Purchase Order or Contract must be reported immediately and in writing to UVM.

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5.11.11 Sale and Purchase of Restricted Items

Overview

Restricted items (such as animal orders, hazardous materials, and radioactive materials) require special ordering and handling procedures, to ensure compliance with specific agency regulations. It is the obligation of the buyer or seller to ensure full compliance with applicable laws and regulations.  These responsibilities may include the following:
 

Animal Purchases

Overview
 

By federal law, the Institutional Animal Care and Use Committee (IACUC) of the University of Vermont is required to review and approve all proposed research activity involving the use of animals. Prior to submitting a protocol, the investigator must consult with the University Veterinarian and obtain signature on protocol assurance. All personnel associated with the protocol must complete on-line animal care training.
 

Procedure Steps
 
 
1 Animal Care sends Procurement Services updated list of IACUC information
2 Animal Care Management has approved five commercial vendors for animals. These are:
     Charles River Laboratories
     Harlan Laboratories
     Jackson Laboratories
     National Institutes of Health/National Cancer Institute
     Taconic Laboratories
3 Requisition completed by department. Must include type of animal, IACUC number, effective dates of IACUC, and PI name. See Requisition procedure for additional detail
4 Procurement Services confirms IACUC effective dates, creates PO, sends to department
5 Researcher completes Animal Order Request. Routes to Animal Care Facility with PO number
6 Animal Care Facility places order with vendor
7 Animals are shipped to Animal Care Facility

Forms

Animal Use protocol forms are available on the Institutional Animal Care and Use Committee (IACUC) website.

Contacts

OACM Personnel
Name Title Phone e-mail
Dr. Ruth Blauwiekel University Veterinarian (o)  802-656-0459
(f) 802-656-8315
Drruth@uvm.edu
John Lovelette
Business Manager (o) 802-656-2206 john.lovelette@uvm.edu
Keirsten Rapoza Administrative Assistant (o) 802-656-0459 keirsten.rapoza@uvm.edu
ARC Personnel - 
Priority One Services, Inc. is the subcontractor which manages the
biomedical research animal facilities at the University of Vermont

Facility Manager (o) 802-656-1006 facmgr@med.uvm.edu

Veterinary Technicians (o) 802-656-8708 vettech@med.uvm.edu

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5.11.12 Radioactive Materials
 

Overview
 

All orders of radioactive materials (RAM) must first be approved and ordered by the Radiation Safety Office. The Radiation Safety Office (RSO) oversees the use of ionizing radiation on campus and ensures compliance with state and federal regulations, to protect UVM employees, students, the public, and the environment. The RSO also provides safety related services for UVM.
 

Procedure Steps

1 All radioactive materials must be sent to the Radiation Safety Office (RSO)
2 Faculty who need to procure radiation sources for research and/or teaching purposes must be formally approved by the Radiation Safety Committee (RSC)
3 All persons who handle radiation for research or teaching purposes must meet the requirements set by the Radiation Safety Committee. The requirements also apply to temporary employees such as work-study students and visiting scientists
4 Fill out a request form to order radioactive materials.  Radioactive Material Order Form
5 All radioactive materials must be purchased on a PURCARD. See PurCard procedure for additional details
6 Mail or fax or hand carry this request form to the RSO
7 The RSO will check each order against the Investigator's authorization
8 The RSO will order the material with the radiochemical company
9 Orders must be received by the RSO by 3:00 pm for them to be ordered the same day

Please see the Radiation Safety Office for additional forms and applications.

Contacts

The Radiation Safety Office is open Monday thru Friday, 8:00 am - 12:00pm, and 1:00 pm - 4:30 pm and is located in room 004 Rowell Building.

Telephone: (802) 656-2570   

FAX: (802) 656-8876
Email: radsafe@uvm.edu  

For radiation accidents (large spills, personnel contamination, suspected over-exposure) during working hours call the RSO. After working hours or on weekends or holidays for non-emergencies please call UVM Police Service at 656-3473. For radiation emergencies after working hours call 911.
 

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5.11.13 Hazardous Materials
 

Overview
 

UVM ChemSource is UVM's chemical distribution program. The Environmental Safety Facility (ESF) on Spear Street enables us to store chemicals in a space designed for that purpose. The ChemSource program makes new and a limited supply of recycled chemicals available to campus users quickly and easily.
 

Procedure Steps

1 Government regulations require that all employees be trained in the hazards of the materials with which they work. Safety training on issues specific to each laboratory's protocols is provided by the laboratory supervisor and other workers in the laboratory. To support this training for laboratory workers, the Environmental Safety staff currently provides three kinds of laboratory safety training
2 ChemSource is UVM's chemical distribution program. The ChemSource program makes new and a limited supply of recycled chemicals available to campus users and passes on bulk pricing for single containers
3 To order chemicals from the distribution program, use the on line ordering form. Indicate chemical needed, quantity, delivery, ship to information and a chart string to charge.
Enter UVM NetID and password.  Chartstrings previously used with ChemSource will be stored, so that chartstring information will be entered once
4 ChemSource holds the University's state and federal licenses for the purchase of ethanol on campus. Thus, all non-denatured ethanol used on campus must be purchased through the ChemSource program.  Chemicals Currently Available through ChemSource
5 A Material Safety Data Sheets (MSDS) for hazardous materials with proprietary (i.e. trade secret) ingredients is only available from the manufacturer.  Hard copy of the MSDS sheets must be kept for these hazardous chemicals in your laboratory. If the material is non-hazardous or lists ‘irritant’ as the only hazard you are not required to keep a copy of the MSDS.
UVM has a site license for access to the Canadian Centre for Occupational Health and Safety. This database includes over 100,000 MSDS's, updated quarterly
6 The Chemical Use Planning Form is designed to help laboratory supervisors and safety officers outline the precautions necessary for the use of specific chemicals or groups of chemicals with similar hazards. These forms are also used to register the use of specific chemicals with Environmental Safety for Institutional Research Committee purposes
7 The UVM Hazardous Chemicals of Concern list  groups the most common laboratory chemicals into hazard and compatibility groups and provides information about special attention specific chemicals need for safe management
8 A requisition can be placed to order chemicals valued at $5,000 or greater from an external vendor. A blanket purchase order can be completed for orders to a vendor spanning a fiscal year. See Requisition procedure for additional information
9 To order chemicals valued at less than $5,000 from an external vendor, a purchasing card can be used. See PurCard Ordering procedure for additional information

Contacts

Name Email Address Phone Focus Areas
Ralph Stuart, CIH rstuart@uvm.edu 656-5403 General laboratory safety and compliance;
Indoor Air Quality;
Environmental Management Systems
Francis Churchill francis.churchill@uvm.edu 656-5405 Hazardous waste management;
Environmental regulation compliance
Jeff LaBossiere jlabossi@uvm.edu 656-3418 Biosafety and Biowaste Management;
Primary responsibility for biological safety on campus
Barbara Benton St. Gelais, MA, LCMHC bstgelai@uvm.edu 656-5402 Indoor Air Quality;
Primary responsibility for chemical safety in laboratories in Given, HSRF, Colchester Research Facility, Stafford, Marsh Life and Rowell
Lee Diamond ldiamond@uvm.edu 656-5404 Primary responsibility for laboratories in Delehanty, Dewey, Carrigan, Proctor Maple, Terrill, Votey, Williams, Entomology, Large Animal, Dairy Farm and Perkins
Jeff Rogers jrogers2@uvm.edu 656-0767 Laboratory Safety Coordinator responsible for supporting lab workers in Cook, Terrill, Hills, and Rubenstein School of Environment and Natural Resources
Brian Medor bmedor@uvm.edu 656-5408 Hazardous Waste collection and disposal
Brian Hodge blhodge@uvm.edu 656-5408 Hazardous Waste collection and disposal

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5.11.14 Accounts Payable Procedures
 

Overview
 

The accounts payable module provides an additional mechanism for payment of expenses not requiring a requisition or purchase order. This process is handled through a Check Request Form. The check request form is in an Excel spreadsheet format. It can be downloaded from the Procurement Services web page. The form can be completed in Excel, printed and routed for approval signature. Appropriate documentation must be attached and the completed form is routed to Procurement Services for processing.

Procedure Steps

1 In web browser, navigate to Procurement Services home page
2 Under To Do List, select Check Request Form. Open in Excel
3 Enter the following data:
     US Citizen or Permanent Resident Alien
     Social Security Number
     Payee Name
     Address
     City
     State, Zip
     Date
     Payment Purpose
     Dollar Amount
     Chart String
     Enclosure information
     Contact Information
4 Attach appropriate documentation
5 Route for authorized signature
6 Route to Procurement Services
7 Procurement Services:
     Sends vendor information form to new vendor
     Creates vendor
     Enters check request
     Runs budget check process
8 If check request fails budget check, department is contacted
If check request passes budget checking, check is issued

Forms

Check Request Form  

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5.11.15 Nonresident Aliens - Payments To

Overview

The Internal Revenue Service and other government agencies assess institutions with significant penalties for failure to classify, pay and withhold taxes on non-resident aliens properly. The University must follow applicable regulations pertaining to payments to non-resident aliens and demonstrate compliance with the regulations through utilization of a defined and documented procedure in order to reduce the significant financial and political risk associated with non-compliance.
 

Procedure Steps
 

Is nonresident alien an employee, student or independent contractor? See Payments to Nonresident Aliens for more information.

1. Employee

1 Office of International Education administers Form I-9 and International Information Form (IIF)
2 Employee completes International Information Form (formerly the Alien Information Collection Form) to determine US income tax residency status (Nonresident Alien vs. Resident Alien)
3 If Nonresident Alien, complete W4 in accordance with restricted withholding requirements
4 To determine if eleigible for treaty benefits, contact Tax Administrator for possible preparation of Form 8233 - Exemption from Withholding and accompanying certificate
6 Payroll enters information to pay employee

2. Student

1 International students must attend mandatory international student orientation, or meet with the Office of International Education to complte Form I9 and the International Information Form (IIF)
2 Complete the International Information Form (formerly the Alien Information Collection Form)
3 Tax Administrator determines if eligible for exemption from income tax withholding under US income tax treaty; if so, Form 8233 - Exemption from Withholding is generated for student-employee's signature
4 Student payments through Banner, via Student Financial Services

3. Independent Contractor

1 Complete a Check Request Form- answering residency question. See Check Request Form procedure for more information
2 Contact Tax & Treasury Services in advance of individual performing services if interested in determining eligibility for exemption from withholding under a US income tax treaty; if elligible, IRS Form 8233 - Exemption from Withholding and accompanying certificate will be genrated for the infividual's signature
3 Attach support for payment elligibility under US Immigration rules (copy of passport, US visa page, I-94 card, and Business or Tourist Visitor Attestation Form, and/or J-1 permission letter depending upon applicable visa status
4 Attach completed/signed/dated IRS Form W-8BEN
5 Prcurement Services creates vendor, produces check
 
Employees
All Employee Classifications, Including Student Employees
Independent Contractors and Honoraria Recipients Students                                                   
F, J, M, or Q visa holders receiving scholarship or fellowship grants (no services required)
With Treaty Exemption Without Treaty Exemption With Treaty Exemption Without Treaty Exemption With Treaty
Exemption
Without Treaty Exemption
International Information Form

Meeting with Tax Administrator
 
Form 8233 (and any attachments)
 
Form W-4 (using special instructions)
International Information Form

Meeting with Tax Administrator

Form W-4 (using special instructions)
International Information Form

Form W-8BEN

Form 8233
International Information Form

Form W-8BEN
International Information Form

Form W-8BEN
International Information Form

Step-by-Step Guides


Payments made to Nonresident Aliens Policy and Procedures Manual

Forms


Employee vs. Independent Contractor
I-9 Employment Information Eligibility Verification
W-4 Personal Allowances Worksheet
W-7 Application for IRS Individual taxpayer Identification Number
W-8BEN Certificate of Foreign Status
8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual
 
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5.11.16 Subject Payments

Overview  

Subject payments are payments made directly to individuals participating in a University research study. These payments are not paid via petty cash. These payments are 1099 Misc reportable to the IRS. For multiple subjects, use the Multiple Check Request Form spreadsheet. Check Request Form must include: name, social security number, and home address of recipient. Due to HIPAA consideration, Procurement Services does not require the name of the study in which the subject participated.
 
Procedure Steps

1 In web browser, navigate to Procurement Services home page
2 Under To Do List, select Check Request Form. Open in Excel
3 Enter the following data:
     US Citizen or Permanent Resident Alien
     Social Security Number
     Payee Name
     Address
     City
     State, Zip
     Date
     Payment Purpose
     Dollar Amount
     Chart String
     Enclosure information
     Contact Information
4 Attach appropriate documentation
5 Route for authorized signature
6 Route to Procurement Services
7 Procurement Services:
     Sends vendor information form to new vendor
     Creates vendor
     Enters check request
     Runs budget check process
8 If check request fails budget check, department is contacted
If check request passes budget checking, check is issued

Forms
 
Check Request Form

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5.11.17 PurCard
 

Obtaining a Card
Making Purchases
PurCard Reallocation Process Mini-Manual
 

Obtaining a Card

Overview
 

To obtain a purchasing card, download the application form from UVM’s Purchasing Card web site. The application is in an Excel spreadsheet format. The form can be completed by the cardholder and approved by the supervisor and dean/director/chair. The card is in the University’s name and the person applying, not the department’s. Information required on the application includes: cardholder name, address, e-mail, supervisor’s email, and chart string to be charged. Once the application is completed and approved, it is forwarded to a PurCard specialist in Procurement Services.
 

The cardholder must complete a mandatory training program. A knowledge assessment will be completed by each prospective cardholder, and submitted to Procurement Services. When the training is complete, the card will be ordered by the PurCard specialist. An acceptance agreement will be routed to the new cardholder. The acceptance agreement is signed by the cardholder, verifying that they have taken the training, understand their responsibilities, and repercussions for failing to follow the program guidelines. The acceptance agreement is then returned to Procurement Services. Upon receipt of the signed form, the PurCard specialist will mail the new purchasing card to the cardholder.
 

Procedure Steps

1 In web browser, navigate to the Purchasing card web site
2 Select Forms & Downloads. Click card Application Form. Application will open in Excel
3 To complete the application, enter the following data:
     Cardholder name
     Cardholder title
     UVM employee ID number
     Department name
     Budget name
     Business address
     Cardholder e-mail
     Department contact information
     Supervisor to receive email
     Name of individual who will reallocate
     Spending limits, if lower than defaults
     Chart string
     Cardholder signature
4 Route for Supervisor signature
5 Route for Dean/Director/Chair signature
6 Route to Procurement Services
     Procurement Services verifies employment
     Procurement Services sends application to bank
     Procurement Services sends training information to new cardholder
     After completion of training, new cardholder signs acceptance agreement   before receiving card

Forms
 

Application Form
Supervisor Responsibility Form
Cardholder Agreement to Accept the UVM Purchasing Card
 
Making Purchases
 

Overview
 

The PurCard can be used at any vendor that accepts MasterCard, within the limitations of MCC codes and dollar limits. Any changes of these codes can only be authorized by the program administrator. The purchasing card has MCC codes (Merchant Category Codes) turned on or off for the card, by Mellon Bank. (For example, the MCC code for ATM’s is turned off and thus the charges will be denied.)
 

Procedure Steps

1 Purchasing Card has $4,999.99 single transaction limit and $25,000 cycle limit
2 Purchasing Card is limited to MCC codes open for all cards (no ATMs for example)
3 Cardholder makes purchase, in person, on line, or over phone, giving the following information:
     Cardholder name
     Address
     UVM’s tax exempt status and tax exempt number
     Card number
     Card expiration date
4 Obtain an invoice or priced packing list. Note a specific chart strings to be charged
5 Cardholder receives e-mail notification after transaction is processed by bank and Procurement Services
6 Cardholder collects invoices/receipts for the cycle
7 Cardholder/proxy receives a statement from bank at end of cycle. Cardholder/proxy matches invoices to statement

Reallocating Expenses

Overview


After the end of each cycle, journals are created in PeopleSoft using the default purchasing card chartstring. Using journals allows for budget checking and chart field combination editing, to most accurately charge actual expenses against the appropriate budgets. Once the journals are created, proxies (those authorized to reallocate transactions for PurCard holders) and PurCard holders without proxies will log into PeopleSoft, identify their journals, and reallocate the transactions to the appropriate chart strings. Reallocation must take place for several reasons: to charge the correct account or move an expense from a department budget to a project. When reallocation is complete, budget checking is run, and when valid, will establish the expenses against the budget.
 

Reallocation must be completed in Peoplesoft by monthend and hardcopies of approved journals and receipts must be received in Procurement by the 20th of the following month or the employee’s card will risk being suspended. 

Step-by-Step Guides

PurCard Reallocation Process Mini-Manual
PurCard Audit Schedule

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5.11.18 Receipt of Goods & Services

Overview

The University does not have a central receiving facility therefore each department is responsible for the receipt of goods and services and must properly account for them as follows:


Procedure Steps

1 Procurement Services receives invoice greater than $25,000
2 Procurement Services scans invoice
3 Procurement Services initiates Invoice Authorization Form, noting date, PO number, vendor name, and invoice number
4 Procurement Services attaches invoice and Invoice Authorization Form to an e-mail to requester
5 Requester approves Invoice Authorization Form and returns to Procurement Services (or notifies Procurement Services if there is a problem with invoice payment)
6 Procurement Services pays invoice

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5.11.19 Catering
 

Overview
 

The UVM Catering Process allows those planning events to utilize one of many caterers who can provide catering for UVM events at select locations.
 

Guidelines
 

Catering Process Waiver Request Policies and Guidelines
Conference & Event Services Catering Process
Sodexo Ordering on-line  

Forms
 

UVM Catering Process Waiver Request Form

Contacts
 

Conference & Event Services (CAES) department at UVM is managing and overseeing the UVM Catering Process any questions should be directed via phone to 656-5665 or via e-mail to conferences@uvm.edu.

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5.11.20 Relocation Policy
 

Overview
 

At the discretion of the hiring unit, relocation expenses for new faculty and staff may be provided if funds are available in the department or college budget. The total amount provided for relocation will be determined by the employing unit, subject to Internal Revenue Service (IRS) regulations.

See the Relocation Policy for more information.
 

Procedure Steps
 

1. Direct Payment to Moving Company:
1 Contact Procurement Services to initiate estimates with commercial moving companies with whom the University has pricing agreements
2 Provide the following:
     New hire's name
     Current residential address
     e-mail address
     Phone number
     Ship-to address
     Timeframe for move
     Maximum relocation amount, if applicable
3 In PeopleSoft, enter requisition. See Requisition procedure for more information

2. Relocation Advance:
1 Department prepares Relocation Advance Request Form, with the following information:
     Employee name
     Employee ID
     Title
     e-mail address
     Department
     Hire Date
     Moving from location
     Moving to location
     Dollar amount
2 Route for administrator signature. See Check Request Form procedure for additional information
3 Within ten days of completion of move, new employee completes Relocation Advance Substantiation Form. Complete the following:
     Name
     Employee ID
     Hire date
     Moving from location
     Moving to location
     Amount of advance
     Date of advance
     Qualified moving expenses
     Non-qualified moving expenses
4 Employee signs certification on form. Routes for approval
5 Administrator reviews and approves form. Routes to Procurement Services
6 Procurement Services provides information to Payroll for tax issues
7 Procurement Services files with Relocation Advance voucher

3. Relocation Expense Reimbursement:
1 Employee completes Relocation Expense Reimbursement Form, including the following information:
     Name
     Employee ID
     Title
     email address
     Department
     Hire date
     Moving from location
     Moving to location
     Qualified moving expenses
     Non-qualified moving expenses
2 Employee attaches original receipts, certifies and signs form. Routes for administrator signature
3 Administrator reviews receipts and form, and signs form
4 Administrator completes Check Request Form, attaches form and receipts. See Check Request Form procedure for additional information
5 Procurement Services provides information to Payroll for tax issues
 
Forms
 
Relocation Advance Request Form
Relocation Advance Substantiation Form
Relocation Expense Reimbursement Form
Check Request Form  

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5.11.21 Awards & Prizes
 

Overview

Prizes and awards that are presented to University employees are generally reportable as additional compensation subject to federal, state and FICA/Medicare withholding, in the absence of an applicable exception. Prizes and awards that are presented to non-employees must be reported by the University as other income if the value exceeds the calendar year reporting limit. Winnings associated with games of chance are reportable to the IRS above a certain threshold, and may be subject to income tax withholding. It is the responsibility of the respective Vice President, Dean, Director or Chair to comply with the University’s tax reporting obligations for awards, prizes and winnings; assistance with tax issues may be obtained from the Office of the Controller.

See the Awards, Prizes and Winnings Policy and the Awarding Scholarships and Prizes Policy for more information.
 

Click here for a summary of the Awards, Prizes and Winnings Procedures.
 

Procedure Steps
 

1. Awards and Prizes to Employees - Cash awards paid through payroll

Gift certificates and other cash equivalents – must be included in the employee's income. 


Notify Payroll with the following information:

Non-cash prizes & awards – must be included in the employee's income.


Notify Payroll with the following information:
2. Awards and Prizes to Non-employees

For cash awards, submit Check Request Form to Procurement Services. See Check Request Form for additional procedures.

For non-cash awards, submit the following to Procurement Services:
Procurement Services issues 1099 Miscellaneous. All award and prize amounts are reportable.

3. Awards to Students


All awards to students must be run through the Student Information System. Awards may affect students’ financial aid packages.


Contact Student Financial Services for further information.


Forms

 
Additional Pay Form - Human Resources
Check Request Form
IRS Form W-9 Request for Taxpayer Identification Number and Certification (For U.S. persons)
IRS Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding (For Nonresident Aliens)

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5.11.22 Staff Emergency Loans
 
Overview

The Staff Emergency Loan Fund is available to staff members on an emergency basis. Other funding sources, such as credit unions and credit cards, should be exhausted prior to applying for a Staff Emergency Loan.

Contacts

Staff Council Office
313 Waterman Building
656-4493

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5.12 Travel

5.12.1 Employee Travel

Overview
 
Travel is often necessary for the conduct of University business and therefore the University expects to incur reasonable, necessary, actual, and prudent business travel expenses. The University seeks to ensure appropriate reimbursement to employees for their business travel expenses as well as compliance with all applicable laws and regulations for domestic or foreign travel. Travel expenses paid by UVM must be properly authorized, documented with a clear business purpose, and comply with the guidelines of the University Travel Policy

The University Travel Policy applies to anyone who travels on behalf of the University, regardless of funding source or destination. If travel is being charged to a sponsored project and the terms are more restrictive than those of UVM, the terms of the grant or contract apply. If the terms imposed by grants, or contracts are less restrictive than those of UVM, the UVM policy applies. Similarly, departments may elect to impose, through appropriately disseminated written guidelines, stricter controls over travel expenditures than those required by this policy.

Definitions
 
Accountable Plan - To have an Accountable Plan, the IRS requires that the employer's (UVM’s) reimbursement or allowance arrangement must include all of the following rules:
  1. Your expenses must have a business connection — that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer
  2. You must adequately account to your employer for these expenses within a reasonable period of time. The IRS defines this as within 60 days
  3. You must return any excess reimbursement or allowance within a reasonable period of time

Substantiated - Expenses documented with original, itemized receipts, dates of travel, business purpose, etc.


Travel Status - You are traveling away from home if your duties require you to be away from the general area of your home for a period substantially longer than an ordinary day's work, and you need to get sleep or rest to meet the demands of your work while away.

Unsubstantiated - Expenses which are not documented with original, itemized receipts, dates of travel, business purpose, etc.

UVM Business- Acting while on assignment by or at the direction of UVM for furthering its business interest as detailed in the Travel Policy, Section II: Eligible Travelers.

General Policy Provisions

See Section I, 1-7 of the University Travel Policy.
 
Travel Authorization

A Travel Authorization (TA) is needed to encumber your budget and to request a travel Cash Advance. This process will encumber the budget of the chart string listed in the travel authorization. The traveler may delegate another employee to complete the travel authorization.

The Travel Authorization is approved via workflow in PeopleSoft. Approval is based upon the authorized approver for the department listed in the Travel Authorization chartstring. Approvers must ensure that the Travel Authorization is completed correctly and approved before approving any Cash Advance that may be necessary for that same trip.  The approver may reassign the Travel Authorization to another approver. 

Travel Cash Advances

Travel Cash Advances always require approved Travel Authorizations. The detail from the Travel Authorization must be listed on the Cash Advance. The traveler may delegate to another employee responsibility for completing the Cash Advance request. The Cash Adavance is approved via workflow in PeopleSoft. First approval of the Cash Advance is based on the department in the default chart string in the employee’s travel profile. Approvers must ensure that the Cash Advance is complete and correct and that a Travel Authorization has already been approved and listed on the Cash Advance. The second approval is from the prepaid auditor in General Accounting. The prepaid auditor will not approve a Cash Advance for payment until five (5) business days before the trip begins. The traveler is responsible for viewing the status of their Cash Advance prior to picking up the funds from the Cashier’s Office to be sure the final approval is in place.

Traveler obtaining a cash advance must sign the Cash Advance form with the following attestation: 

“I understand that my signature on this form gives UVM authorization to process a payroll deduction for the Cash Advance balance if it is still outstanding more than 30 days after the completion of this trip.  I also acknowledge that a delinquent Cash Advance could result in the termination of my Cash Advance privileges.

Travel Planning & Booking
 
Travelers are responsible for making their own travel arrangements. 

A University Purchasing Card (PurCard) should be used whenever possible for all travel expenses where credit cards are accepted.  http://purcard.uvm.edu 

Trips which Include Annual Leave/Personal Travel

See Section III, 6 of the University Travel Policy
 
Foreign Travel
 
Foreign travel is allowable if the country being visited is not listed on the State Department’s Current Travel Warnings.

Foreign Travelers may wish to use the services of the Travel Clinic for immunization and other related information. UVM does not pay for these services.  

UVM does not pay for any personal items involved with foreign travel, for example, passports, vaccinations, international driving license, etc. 

UVM international travelers must contact UVM’s Risk Management department for further information.  

Conference & Registration Fees

Please use the University PurCard or submit a Check Request Form to Procurement Services for pre-payment if a PurCard is not accepted or available.

Travel Reimbursement

Reimbursement for travel expenses incurred on UVM business must be completed by the traveler through the PS Travel & Expense Module in accordance with the University Travel Policy and must comply with the IRS’s Accountable Plan Rules. The traveler may delegate responsibility to another employee to complete the Expense Report (ER) form. If a Travel Authorization was completed and a Cash Advance was issued, these must be included on the Expense Report. Excess cash must be returned to the Cashier's Office.

All personal expenses such as laundry, dry cleaning, pressing, valet services, hotel spa or fitness center, paid television, personal travel insurance, child care, guest travel, and personal telephone calls are not reimbursable.

The Expense Report is approved via workflow in PeopleSoft. Approval is based upon the authorized approver for the department listed in the Expense Report chartstring. The person approving the traveler’s forms is responsible for reviewing the adequacy and accuracy of receipts and other required supporting documentation, and the reasonableness and appropriateness of all expenditures. After approving the ER in PeopleSoft, the printed copy of the expense report, signed and with the necessary substantiating receipts and documentation attached, must be mailed to General Accounting.


Relocation expenses may not be reimbursed using the travel expense report, click here for details.

Eligible Travelers

Section II, 1-4 of the University Travel Policy  

Transportation Expenses

See Section III, 1-6 of the University Travel Policy 

Lodging Expenses

See Section IV of the University Travel Policy

Meals Expenses

See Section V of the University Travel Policy

Other Non-Personal Expenses

See Section VI of the University Travel Policy

See the Travel and Expense Mini-Manual for procedure details.

Related Policies

Automobile Rental Policy
Business Meal and Amenities Policy
Driver Safety and Vehicle Use
Employee vs. Independent Contractor Determination
Policy on Awarding Scholarships and Prizes
Payments to Nonresident Aliens
Relocation Expenses
Travel Accident Insurance Policy
Travel Safety Guidelines

5.12.2  Business Meals

Overview

Any University of Vermont business meal or amenity expenditure or reimbursement request must have a business purpose. The person responsible for the budget being charged is accountable for determining the business purpose. When restricted funds are charged (e.g., sponsored project funds; restricted gifts) the person responsible for the budget (the principal investigator in the case of sponsored project funds) is responsible for compliance with all applicable regulations or other donor restrictions.
 

Procedure Steps
 

Employees are reimbursed for business meal and amenity expenditures by completing an Expense form in PeopleSoft.
 

Requisition for purchase is completed in PeopleSoft for activities held at restaurants, hotels, etc.
 

Events catered by University Dining Services should use Sodexo’s on-line catering web site. For Sodexo walk-in dining, use the Dining Services Chart String Form.

To satisfy Internal Revenue Service requirements governing business meals, the following information must be provided with the PeopleSoft expense form, Requisition, or Dining Services web site, or Dining Services Chartstring Form:
 
1 If alcohol is to be consumed, obtain pre-approval memo from Provost
2 At restaurant in VT, remind server of tax exemption
3 At restaurant, use PurCard to pay for meal
4 Obtain detailed meal receipt
5 In PeopleSoft, reallocate business meal to account 60553 Business Meals. See PurCard Reallocation procedure for additional details
6 If alcohol was purchased at the meal, reallocate to discretionary gift chart string and to account 60556 Refreshment – Hospitality
7 Budget check PurCard journal
8 Attach receipt to PurCard journal report
9 On PurCard journal report, document names of attendees, business purpose, and location of meal
10 If alcohol was purchased at the meal, attached Provost pre-approval memo to journal report
11 Route for supervisor signature
12 Route to Procurement Services for audit

5.12.3 Automobile Rental

Overview

Employees and students may need to rent vehicles in order to carry out University business. For a rental to be authorized, it must have a clear University business purpose and comply with the procedures below.
 
Procedure Steps

1 Contact contracted vehicle rental vendor (currently Thrifty, 656-8650) to determine rates
2 To reserve vehicle, use PurCard, PO or personal credit card
3 Do not purchase Loss Damage Waiver (LDW), which is currently included in rates. Do not purchase liability insurance coverage (covered by UVM)
4 Vehicle will be brought to campus for pick up at a central location, if requested
5 Return vehicle in good operating condition, with full tank of gas
6 Obtain receipt upon vehicle return

PurCard Payment

1 In PeopleSoft, reallocate vehicle rental transaction in PurCard journal to 60504 Rental Car Domestic or 60524 Rental Car Foreign. See PurCard procedures for additional detail
2 Attach receipt to PurCard journal report
3 Budget check PurCard journal
4 On PurCard journal report, document the name of traveler, destination and business purpose of trip
5 Route for supervisor for review and signature
6 Route to Procurement Services for audit

Personal Credit Card Payment

1 Employee enters an expense form in PeopleSoft. Employee prints expense form and attaches receipt. See travel and expense reimbursement procedure for additional detail
2 Employee routes form to supervisor for approval
3 Supervisor reviews expense report and receipts
4 Supervisor runs budget check in PeopleSoft and approves form in PeopleSoft
5 Supervisor routes form to Procurement Services for filing
6 Reimbursement check is issued to employee

Blanket PO Payment

1 Department enters requisition in PeopleSoft. See Requisition procedure for additional details
2 Requisition must pass budget checking
3 Procurement Services creates purchase order
4 PO must pass budget checking
5 Vendor will send invoice to Procurement Services
6 Procurement Services will enter invoice into PeopleSoft, matching against PO
7 Invoice must pass budget checking
8 Check will be issued to vendor
 
5.12.4 Non-Employee Travel
 
Overview

Non-employee travel payments are made via a Check Request Form. Since the non-employee is submitting only actual receipts and mileage for reimbursement, no true invoice is generated by the non-employee vendor. Non-employees must submit original receipts. Mileage reimbursements require actual, reasonable mileage between residence or accommodations and the University.
 
Procedure Steps

1 In web browser, navigate to Procurement Services home page
2 Under To Do List, select Check Request Form. Open in Excel
3 Enter the following data: 
     US Citizen or Permanent Resident Alien
     Social Security Number
     Payee Name
     Address
     City
     State, Zip
     Date
     Payment Purpose
     Dollar Amount
     Chart String
     Enclosure information
     Contact Information
4 Attach appropriate documentation
5 Route for authorized signature
6 Route to Procurement Services
7 Procurement Services:
     Sends vendor information form to new vendor
     Creates vendor
     Enters check request
     Runs budget check process
8 If check request fails budget check, department is contacted
If check request passes budget checking, check is issued

Forms
 
Check Request Form

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5.13 Asset Control

This section is under development


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5.14 Tax and Treasury Operations

5.14.1  - Cash Management

Overview

The University’s operating cash levels follow the cyclical pattern of higher education with cash levels being at their highest at the beginning of the academic semester (September and January), and lowest in December and July. The University’s goal is to optimize Cash Management through (1) accelerating the collection of revenues, (2) receiving a rate of return on such funds, so that collected funds may contribute to the operations of the University, and (3) controlling disbursements.

Definitions

Cash flow projection – financial forecasting tool to ensure that sufficient funds are available to meet organizational needs at a minimum cost

Cash receipts - currency, coins, checks and credit card slips

Collateralized – secured by investments pledged for the payment of an obligation

Liquidity - ability of current assets to meet current liabilities when due. The degree of liquidity of an asset is the period of time anticipated to elapse until the asset is realized or is otherwise converted into cash.

Lockbox – post office box used to facilitate collection of student/customer remittances to reduce manual processing, and processing float time.  The University's local depository bank collects mail from the box and deposits the funds in the appropriate account daily, furnishing a file listing of payments received by account for uploading to receivable system.

Overnight repurchase agreement - sale of securities coupled with an agreement to repurchase the securities at a higher price the next day.  A collateralized repurchase (“repo”) agreement is similar to a secured loan.
 
Zero balance accounts - concentration accounts that are "zeroed out" at the end of each banking day to the main depository account.

Cash Balances and Objectives

The Board of Trustees has adopted a Cash Management Policy governing the investment of UVM pooled cash. "Pooled cash" includes all funds of the university other than the funds that are held in the endowment and certain plant, restricted and loan reserves, for which separate investment guidelines have been established. Cash balances are to be invested consistently with criteria adopted by the Board Budget, Finance and Investment Committee as related to the Long-Term Investment Pool, including the Endowment Fund. The Treasurer has the authority to open accounts with banks, investment firms, or commercial paper institutions in order to implement the investment policy.

The University has several operating cash accounts including a depository account, accounts receivable lockbox account, payroll account and a number of disbursement accounts. With the exception of the main depository account, the accounts are zero balance accounts, thereby eliminating the need to maintain excess amounts in disbursement accounts, relieving the University the burden of estimating when checks will be presented for payment, and permitting the pooling of resources for investment purposes.

The Board of Trustees has delegated the management and oversight of the University’s operating cash to the Vice President for Finance and Treasurer. Funds on account with the depository bank are invested in a collateralized overnight repurchase agreement.

Cash Handling Policy

Ideally, receivables are collected efficiently from point of receipt to the place where funds can be invested or spent. The University has taken a number of steps to expedite the collection of revenues, including the establishment of lockboxes for student tuition receivables as well as general account receivables. Student Financial Services has enabled students (and parents) to pay their tuition bill online via credit card or ACH debit. Further, the Cashier’s Office has adopted remote check capture technology to expedite the credit of collected funds in the University’s depository account.

The University’s Securing and Depositing of Cash Receipts Policy addresses the expectation for depositing departmental deposits in a timely and secure manner. To assist in the secure, physical movement of cash receipts on campus, the University has contracted with Garda for cash logistics services. 

The procedural section of the policy provides instruction for completing a Cash Transmittal Form, in order to record cash receipts to the general ledger in a timely manner through the Cashier’s Office.

Payment Card Acceptance Policy

The University’s acceptance of credit cards to pay for gifts, goods and services has increased in recent years, as has interest in accepting payments over the Internet (eCommerce).

While the costs for accepting credit card payments can be significant (1.5-3.0% of every transaction, depending on the card type) business reasons may justify such acceptance (e.g., control of receivables, competitive position and efficient processing). To the extent that it makes sense in terms of business judgment to do so, the University supports this activity. To ensure that credit card activities are consistent, efficient and secure, the University has issued an Accepting Payment Cards and eCommerce Payments Policy for all types of credit card activity transacted in-person, over the phone, via fax, mail or the Internet.

Cash Inflows

Tuition revenue is one of the University’s largest sources of cash inflows, followed by grant revenue. Departmental deposits of cash receipts are booked to general ledger through the Cashier’s Office, 220 Waterman, via Cash Transmittal Form initiated by the responsible department.  Exceptions to this are billed student and other customer receivables paid by check received through the lockbox - these are processed by the depository bank and updated to general ledger through a daily file upload to the subsidiary receivable system (Banner Student Information System, or PeopleSoft AR Billing, as applicable.) Further, online payments of tuition (via credit card or electronic check) processed by a third-party, are electronically transferred to the University’s depository account, and updated to general ledger through a daily feed to Banner Student Information System.

The University's credit card accepting (or Merchant) departments’ payment card transactions are to be settled on daily basis, and recorded to general ledger through the Cashier’s Office via Cash Transmittal Form initiated by the responsible department. 

Similarly, Electronic Fund Transfers received by the University are to be settled on daily basis, and recorded to general ledger through the Cashier’s Office via Cash Transmittal Form initiated by the department responsible for the revenue. Any unrecorded EFTs appearing as reconciling items on the monthly bank statement reconciliation will be brought to the attention of the responsible individual. Any EFT that is not recorded as a deposit with the Cashier’s Office in a timely manner is subject to forfeiture after two monthly notifications.

Deposits
  1. The full amount of cash received must be promptly deposited. Cash received must not be used for making change, petty cash purposes, etc.
  2. All departments and activities of the University must deposit cash receipts with the Cashier's Office at least once a week. Departments and activities which receive more than $100.00 a day in currency, coins, checks or credit cards must deposit those funds at least twice a week. Any accumulation of $100.00 or more for any period must be deposited by the end of the business day on Tuesday or Friday for that period.
  3. All departments and activities of the University must record all cash (currency, coin, checks and credit cards) at the time the funds are received. Auxiliary enterprises (e.g., bookstore, dormitories) and other departments which receive cash as part of their normal day-to-day operations must establish an auditable record such as a cash register tape, pre-numbered receipts, or ticket reconciliation. Educational, administrative, and other departments which do not receive cash daily may satisfy this requirement through utilization of the cash transmittal sheet which is in the "forms" section of this document.
  4. After deposits are received by the Cashier's Office, they are verified and entered into the PeopleSoft cashiering module. A record of the deposit can be viewed by the originating department through access to PeopleSoft Finance. The information in PeopleSoft is the department's office receipt and can be viewed at any time for audit purposes.

Endorsement


All checks for deposit by the University that are made payable to other than the University of Vermont should be appropriately endorsed prior to deposit. The endorsement should identify the project and the department and include the words "University of Vermont--For Deposit Only." All checks made payable to the University of Vermont should be endorsed on the back "University of Vermont--For Deposit Only."
 
Transportation of Cash
  1. During normal University business hours of the Cashier's Office, the following procedures are presented in a descending order of preference. Only if the prior procedure cannot be implemented should you go on to the next procedure.
  2. Contact the Cashier’s Office (6-3462) in advance to arrange to have the cash courier service under contract pick up the deposit on a regular basis or for one-time needs.
  3. Bring the money to the Cashier's Office in Waterman Building. Have at least one other person with you when transporting the cash.
  4. If a staff member escort is not available and your department has a safe, secure the money in your safe. NOTE: "Safe" does not include locked desks, file cabinets or other types of containers.
  5. After Normal Business Hours for the Cashier's Office For off-business-hour cash handling activities, the following procedures are in a descending order of preference.
  6. Secure the cash in your safe and arrange to have the cash delivered to the Cashier's Office on the next business day.
  7. Call Police Services (656-3473) in advance and arrange to have a Police Officer deliver the money to the night depository in the Waterman Building and sign the Police Officer's transport log,
  8. Have the campus Police Officer escort you or a designated member of your staff to the night depository in the Waterman Building.

If your department does not have a safe, you must deliver the cash to Police Services. The cash will be secured in the Police Services office safe. Always attempt to have an escort when transporting the cash. As a last resort, make the delivery alone. (Call Police Services before you leave and let them know you are coming.)
 
Transmittal Sheet for Cash Deposits

A Transmittal Sheet for Cash Deposits must accompany each deposit. The Transmittal Sheet for Cash Deposits is available in fill-able form on the Controller’s Office webpage. Please include the following information on the transmittal sheet:

Cash Outflows


One of the University’s largest cash outflows on an annual basis is the disbursement of the University’s periodic payroll, which is on a semi-monthly for faculty and most staff employees and on biweekly basis for hourly employees. For optimum cash management, disbursements to vendors are to be scheduled to ensure that obligations are paid on time, but not ahead of payment deadlines.

Cash Flow Forecasting

Treasury staff members within the Controller’s Office prepare monthly cash flow projections based on projected cash flow data provided by operating units. For instance, on the revenue side, Student Financial Services provides monthly projections of tuition and student loan payment cash inflows; Grant and Contract Administrative Services provides monthly projections of grant cash inflows. On the expenditure side, Capital Planning provides projections of capital project cash outflows.

Cash flow forecast reports are used by the VPFA and Treasurer to make liquidity and investment decisions, and to minimize the cost of short-term borrowing.

5.14.2 Petty Cash
 
Overview
 
A Petty Cash Fund is a cash fund kept secured for immediate use when normal UVM processes for procurement (such as a purchase order or the Purchasing Card) are not readily available. Petty Cash Funds are maintained by a designated custodian. The fund is requested by the employee to be named custodian, using the Request for Petty Cash Form, signed by the appropriate Chairperson, Dean or Director and submitted to General Accounting. 

There are four types of Petty Cash Funds:
  1. Standard Long Term Petty Cash Funds – Long-term based upon an ongoing and revolving use of the funds for which replenishments are done on a frequent and regular basis. An example would be a departmental Petty Cash fund.  
  2. Change Funds – May be short-term or long term in nature and are used exclusively for making change in a cash register or for a specific event. Some examples would be a change fund in the cash register at Fleming Museum, a change fund for vending machines at the library, or a change cash box for a sporting event sale of tickets. These funds should not be mixed with other types of petty cash funds.
  3. Subject Cost Petty Cash Funds – Short-term in nature, with an end date by which they will be closed out, used for subject payments to volunteers in a research study. There are strict IRS reporting laws associated with these accounts.  An example would be a specific study within the Psychology department. These funds should not be mixed with other types of petty cash funds or be used for anything other than subject payments to individuals. Any fund of this nature which is funded by a grant or contract must receive approval from Grant & Contract Accounting.
  4. Event or Project Petty Cash Funds – Short-term funds provided for a specific event or project. They have a definite end date by which they are to be closed out. An example might be Orientation, Graduation, or a student life event.
 
Procedure Steps
 
To open a new Petty Cash Fund or to re-open an account under a new custodian’s name:
1 Open UVM Petty Cash Request Form
2 Enter the following:
     Chart string
     Custodian name
     Address
     Dollar amount
     Purpose
     Route for signatures
3 Submit to General Accounting
4 General Accounting creates new petty cash account
5 General Accounting notifies custodian

To replenish an existing petty cash fund:
1 Open Replenishment of Petty Cash Form by cash or check
2 Enter the following:
     Custodian name
     Department
     Chart string
     Receipt information
3 Reconcile cash on hand to cash expensed
4 Attach receipts to form
5 Route for approval signature
6 For cash replenishment: route to General Accounting
7 For check replenishment: attach form and receipts to a Check Request form. See Check Request procedure for additional information
8 Route to Procurement Services
9 Procurement Services produces check

To close out an existing petty cash fund:
1 Open Petty Cash Close Out Form
2 Enter the following:
     Custodian name
     Department
     Chart string
3 Complete receipt information
4 Attach receipts
5 Reconcile cash on hand to cash expensed
6 Route for approval signature
7 Route form and remaining cash to the Cashier’s Office
8 Cashier routes form to General Accounting

Forms
 
Petty Cash Request Form
Replenishment of Fund in Cash
Replenishment of Fund in Check
Petty Cash Close out Form
 
Contacts

Questions related to the interpretation of this procedure should be directed to:
 
General Accounting Office
333 Waterman Building
802-656-1967 (fax)
Email: general.accounting@uvm.edu  

5.14.3 Debt Management

Overview

Debt is an integral component of liabilities on the balance sheet that should be managed on a long-term portfolio-basis consistent with the institution’s policy objectives. The University engages the assistance of a consultant debt advisor to assist in debt portfolio planning.

Definitions

Annual Debt Service – refers to the principal and interest due on long-term debt in a fiscal year

Bonds - certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date

Commercial Paper – an alternative to bank line of credit for stronger rated borrowers, commercial paper is short-term promissory notes issued on the open market as an obligation of the borrower, with maturities less than 270 days, with registration and disclosure requirements significantly less onerous than traditional bonds

Debt burden ratio - measures the ability to repay debt service associated with all outstanding debt in relation to total operating expenses (annual debt service / total operating expenses).

Derivative Products – generally referred to transactions which are an exchange of specified cash flows for a period of time. The most common types of derivatives are floating-rate-to-fixed-rate or fixed-rate-to-floating-rate swaps.

General Obligation Bonds - a bond issued by a state or city and backed by general tax revenue and the issuer's credit.

Line of Credit – a credit arrangement in which a financial institution agrees to lend money to a customer up to a specified limit, providing flexibility in that it ensures the ability to meet short-term cash needs as they arise.

Viability Ratio – measures the availability of net expendable assets to cover long-term debt (unrestricted net assets + temporarily restricted net assets – plant equity / aggregate debt).

Debt Policy

In accordance with the University’s Debt Management Policy, which the Board of Trustees approves, the Office of the Vice President for Finance and Treasurer manages all funding sources, including debt, for capital projects authorized by the Board. The structure of any individual transaction (e.g., maturity, interest rate mode, use of derivative products, other financing structures) is based upon overall University needs to ensure that (i) long-term costs to the University and its operating units are minimized consistent within the context of other strategic objectives and (ii) overall risk does not exceed acceptable levels as defined in the Policy.

The objectives of the University’s Debt Policy are to: (i) maintain the University’s access to capital. Management will utilize and issue debt in order to provide timely access to capital to fund project priorities that have been approved by the Board; (ii) manage the University’s credit to meet its long-term strategic objectives while maintaining creditworthiness consistent with the most favorable relative cost of capital and borrowing terms. Maintaining the highest acceptable credit rating will permit the University to continue to issue debt and finance capital projects at favorable interest rates while meeting its strategic objectives; (iii) limit risk of the University’s debt portfolio. Debt will be managed on a portfolio, rather than a transactional or project-specific, basis. Management’s continuing objective of incurring the lowest achievable long-term risk-adjusted cost of capital will be balanced with the goal of appropriately limiting exposure to market shifts within acceptable budgetary parameters. Various types of debt structures and financial instruments will be considered, monitored, and managed within the framework established in this policy and according to internal management procedures; and (iv) permit the optimization of the investment of the University’s working capital and cash balances. Management will explore various options and alternatives to internal cash holdings regarding the optimal funding mechanism for short-term equipment needs, bridge financing and cash requirements. Management recognizes that working capital requirements, debt management, and the investment of cash should be viewed comprehensively in order to optimize overall funding and investment return strategies.

In addition to establishing a framework relating to the administration of debt, the Policy provides for periodic updates pertaining to UVM’s debt capacity and financial management to both internal and external parties. The Policy establishes limits to measure the total amount of outstanding debt compared to University balance-sheet resources and the annual operating budget. These debt ratios can be derived from the financial statements and are subject to review periodically. The Policy identifies two ratios (the debt burden ratio, and the viability ratio) that (i) are based on current GAAP requirements, and (ii) are consistent with ratios utilized in the higher education industry to permit benchmarking.

The debt burden ratio measures the University’s ability to repay debt service associated with all outstanding debt and the impact on the overall budget and includes all activities of the University. The defined upper limit of 6% for this ratio is intended to maintain the University’s long-term operating flexibility to fund existing requirements and new initiatives, although the University may target a desired ratio below this limit.

The viability ratio indicates one of the most basic determinants of financial health by measuring the availability of liquid and expendable net assets compared to aggregate debt. The ratio measures the medium-term to long-term health of the University’s balance sheet and debt capacity and is a critical component of universities with the highest credit quality. Many factors influence the viability ratio, affecting both the assets (e.g., investment performance, philanthropy) and liabilities (e.g., timing of bond issues), and therefore the ratio is best examined in the context of changing market conditions so that it accurately reflects relative financial strength. For example, a viability ratio that is acceptable and entirely appropriate in one market condition may be relatively stronger or weaker in other market environments. The University’s current debt policy establishes a debt policy limit (floor) for this ratio of .08x to ensure that sufficient balance sheet strength is maintained at all times

Commercial Paper


The University initiated a $100 million commercial paper program in 1994 to serve as bridge financing for capital projects. In May 2009, the commercial paper program was reduced to $50 million by board resolution of the Board of Trustees. The commercial paper program was developed to serve as interim financing for capital projects approved by the Board of Trustees to be financed by the University. The University provides self-liquidity for its commercial paper program, and no more than $10 million of commercial paper may be scheduled to mature on a single day.

The Office of Treasury management is responsible providing required documentation to bond counsel in support of additional draws of commercial paper, and for making required interest payments to the issuing and paying agent.

Bonds

The University has a number of outstanding tax-exempt bond issues, issued at a fixed rate of interest, to finance various long-term capital projects.

The Office of Treasury Management is responsible for initiating the semi-annual debt service payments to the corporate trustee, and for ongoing bond compliance, including filing the annual disclosure statement. The University’s bond issues are rated by Moody’s and Standard and Poor's.

5.14.4 Unrelated Business Income (UBI)

Overview

UVM is exempt from federal income taxation as a 501(c)(3) tax-exempt organization; however, the university is required to pay federal income tax on net income from activities that are unrelated to the three key components of the tax-exempt mission of the university: teaching, research, and public service. Unrelated Business Income Tax (UBIT) is the federal income tax imposed on the Unrelated Business Income (UBI) generated by tax-exempt organizations.

Unrelated Business Income consists of income the University generates from activities that are not related to its tax-exempt activities. Income is considered to be “unrelated” if all of the conditions listed below are met:
  1. The activity is conducted as a trade or business;
  2. The activity is regularly carried out, and;
  3. The activity is not substantially related to the exempt mission of the university.


1. The income being generated is from a trade or business:


The term "trade or business" generally includes any activity carried on for the production of income from selling goods or performing services. An activity does not lose its identity as a trade or business merely because it is carried on within a larger group of similar activities that may or may not be related to the exempt purposes of the organization.
 
For example, soliciting, selling, and publishing commercial advertising in an exempt organization's periodical, that contains editorial matter related to the organization's exempt purpose, is still a trade or business activity.

2. The activity is conducted on a regular basis:

Business activities of an exempt organization ordinarily are considered regularly carried on if they show a frequency and continuity and are pursued in a manner similar to comparable commercial activities of nonexempt organizations. Generally, income production or fundraising activities lasting only a short period of time conducted on an annual basis are not considered regularly carried on.

For example, a tax-exempt organization’s operation of a sandwich stand for two weeks at a state fair would not be the regular conduct of a trade or business. The stand would not compete with similar facilities that a nonexempt organization would ordinarily operate year-round. However, operating a commercial parking lot every Saturday, year-round, would be the regular conduct of a trade or business.

3. The activity is not substantially related to the exempt mission of the university:

UVM's primary mission is to provide instruction, research and public service. A business activity is not substantially related to an organization's exempt purpose if it does not contribute importantly to accomplishing that purpose. Whether an activity contributes depends in each case on the facts involved.

It is how the income is generated that is important - how the income is generated should not be confused with how the income is used. If income from an activity is used for mission-specific purposes, this does not change an "unrelated" activity to a related activity.


In determining whether activities contribute importantly to the accomplishment of an exempt purpose, the size and extent of the activities involved must be considered in relation to the nature and extent of the exempt function that they are intended to serve. For example, to the extent that an activity is conducted on a scale larger than is reasonably necessary to perform an exempt purpose, it does not contribute importantly to the accomplishment of the exempt purpose. The part of the activity that is more than is needed to accomplish the exempt purpose is an unrelated trade or business.

Exceptions

Income generated from the following activities is not subject to UBIT, even if all three unrelated business income tests described above have been met:


If activity is for "routine testing" with no value, exception does not apply.


The rules concerning UBIT are very complex and there are exceptions to the general rules described in this policy. Determining whether income is subject to UBIT can be subjective and depends on the facts and circumstances of each case.

Roles and Responsibilities

Each UVM department is responsible for notifying in writing the Assistant Controller for Tax and Treasury Services of any revenues being generated that may be subject to UBIT for an analysis and interpretation.

Departments with reportable UBI are required to forward a summary of unrelated revenues and expenses by August 15th, following the close of fiscal year-end to the Assistant Controller for Tax and Treasury Services.
 
UVM is required to file IRS Form 990-T to report unrelated business income. The Assistant Controller for Tax and Treasury Services coordinates the compilation of reportable UBI, and prepares Form 990-T on behalf of the University. Typically a request for an extension to file is applied for and received since all endowment partnership Schedules K-1 are not received in time for the filing deadline.

Estimated tax payments are made to the IRS on a quarterly basis by the Assistant Controller for Tax and Treasury Services. Once Form 990-T is prepared and filed, the calculated UBIT expense is allocated to the respective departments via Journal Entry via Account 61017.

IRS rules require that Forms 990-T filed after August 17, 2006 be available for public inspection and copying for three years after the due date of the return. Requests to inspect the Form 990-T filed by UVM should be directed to the Assistant Controller for Tax and Treasury Services.  The IRS is also required to make 990-T returns publicly available.

5.14.5 Tax Collection & Sales Reporting

Vermont Sales and Use Tax and Local Options Tax Reporting
Vermont Meals and Room Tax Reporting
City of Burlington Gross Receipts Tax Reporting

Vermont Sales and Use Tax, and Local Option Tax, Reporting

Overview

University of Vermont’s Sales and Use taxable sales are reported to the Vermont Department of Taxes on a monthly basis, along with payment of calculated sales and use tax. Several Vermont towns (including Burlington) have adopted a 1% Local Option Tax. Click here for a summary of Local Option Taxes.

Refer to the Vermont Department of Taxes’ Guide to Vermont Business Taxes for the definition of taxable sales, exempt sales, etc.

Many University departments, including the Bookstore, engage in activities whereby the selling of tangible items results in taxable sales.

Cycle Timeline

Vermont Sales and Use Tax Report is reported to the Vermont Department of Taxes on a monthly basis.

Roles and Responsibilities
 
Departments that conduct taxable sales are required to complete, sign/date and forward a monthly sales tax report within 5 business days following each month-end. VT sales and use tax collected on taxable sales are to be deposited to the respective departmental chart-string, specifying tax liability account 20201; local option tax collected on taxable sales are to be credited to the respective departmental chart-string, specifying the applicable local option tax liability account, as follows:

Tax and Treasury Services coordinates the monthly filing of Vermont Sales and Use Tax Report, inclusive of Local Option Tax(es). The administrative duties include contacting reporting departments as needed, preparing the payment request, and filing monthly report(s) with the Vermont Department of Taxes.


Contacts

Tax and Treasury Services, Business Accounting Specialist
656-0679 Phone
656-1967 Fax

Vermont Meals and Rooms Tax Reporting

Overview

University of Vermont’s Meals and Rooms taxable sales are reported to the Vermont Department of Taxes on a monthly basis, along with payment of calculated Meals and Rooms tax. 

Refer to the Vermont Department of Taxes’ Guide to Vermont Business Taxes for the definition of taxable sales, exempt sales, etc.  Meals served on the University campus are generally exempt from Vermont Meals and Rooms Tax.

Conference and Event Services (CAES) is the University’s auxiliary unit that is responsible for booking lodging on campus to the general public in connection with events

Roles and Responsibilities

Department(s) that conduct taxable sales are required to complete, sign/date and forward a monthly sales tax report within five (5) business days following month-end. Vermont meals and rooms tax collected on taxable sales are to be deposited to the respective departmental chart-string, specifying tax liability account 20241.

The Controller's Office's Tax and Treasury Services unit coordinates the monthly filing of Vermont Meals and Rooms Tax Report. The administrative duties include contacting reporting departments as needed, preparing the payment request, and filing monthly report(s) with the Vermont Department of Taxes.

Contacts

Tax and Treasury Services, Business Accounting Specialist
656-0679 Phone
656-1967 Fax

City of Burlington Gross Receipts Tax Reporting

Overview

University of Vermont’s Gross Receipts taxable sales are reported to the City of Burlington on a monthly basis, along with payment of calculated 2% tax, pursuant City Ordinance Section 21-31,  “Restaurant, Hotels, Amusements and Admissions Taxes.”

Please refer to the City of Burlington Ordinance for the definition of taxable sales, exempt sales, etc.  Sales of prepared and packaged meals and beverages served by the University are generally subject to City of Burlington Gross Receipts Tax.  

Prepared and packaged meals and beverages are generally served on campus by a third-party food service operator; however, the University has received a waiver to operate a coffee shop at the Bookstore and at the Fleming Museum.

Roles and Responsibilities
 
Department(s) that conduct taxable sales are required to complete, sign/date and forward a monthly Gross Receipts tax report within five (5) business days following each month-end. Burlington gross receipts tax collected on taxable sales are to be deposited to the respective departmental chart-string, specifying tax liability account 20231.

The Controller's Office's Tax and Treasury Services unit coordinates the monthly filing of City of Burlington Gross Receipts Tax Report. The administrative duties include contacting reporting departments as needed, preparing the payment request, and filing monthly report(s) with the City of Burlington.

Contacts

Tax and Treasury Services, Business Accounting Specialist
656-0679 Phone
656-1967 Fax

Return to Financial Management-Operations Manual Home Page

5.15 Institutional Investment Portfolio

Investment and Objectives

The Board of Trustees' Investment Committee has established a formal policy referred to as the Statement of Investment Objectives and Policies for investment of the endowment and other long-term funds that include parameters established for the purpose of controlling risk as well as targeting performance.

Investment Management Responsibility and Structure

Investment responsibility resides with the Vice President for Finance and Treasurer, through the Controller. Investments may be made internally using allowable instruments and institutions or investment managers may be engaged to invest University assets consistent with the Statement of Investment Objectives and Policies. Subject to the Statement of Investment Objectives and Policies, and a written agreement between the University and its investment manager, the investment manager is provided discretion to select individual securities and make adjustments to the structure of the portfolio.

Administration and Reporting
   
The University Treasurer reports to the Budget, Finance and Investment Committee (BFI), through the Investment Subcommittee, the following: (1) balances in each asset group; (2) investments in each asset group by manager and investment type or fund; and (3) performance for each manager or for each individual investment type within each asset group. The Investment Subcommittee establishes a target asset allocation, and allowable ranges, on an annual basis, for approval and adoption by the Budget, Finance and Investment Committee.

Investment Advisor

The University has engaged the services of an investment advisor. The role of the investment advisor is to work with the members of the BFI Investment Subcommittee by providing them with information to help them make decisions in their fiduciary capacity, including evaluating, selecting and terminating Investment managers. On a monthly basis, the investment advisor provides a Flash Report detailing the market value, performance and asset allocation of assets under management, as well as a comparison to benchmarks for each segment. Following each quarter-end, the investment advisor generates a report detailing the quarterly performance results of the long-term pool.

Endowment Assets

The Endowment in aggregate (which comprises the Consolidated Endowment, the Wilbur Trust Fund, and other separately invested assets) and long-term capital and operating reserves are invested in a balanced portfolio consisting of: traditional stocks (domestic and international) and bonds; marketable alternatives (hedge funds); non-marketable alternatives (venture capital and private equity); and a diversified portfolio of inflation-hedges (real estate and commodities). The primary objective for the investments in the long-term pool is to provide a satisfactory return on investment for the support of University operations based upon the Prudent Person Principle. The University’s specific investment objective is to maintain an average annual real total return (net of investment management fees) of at least 5% over the long-term (rolling 5 year periods).

Endowment Accounting

Financial Reporting and Accounting Services is responsible for accounting for the consolidated endowment, and reconciling to statements issued by the investment managers. 

Return to Financial Management-Operations Manual Home Page

5.16 Gifts and Fundraising

Overview

The University is a 501(c)(3) charitable organization and may accept gifts to support its mission. This section provides guidance on gift and fund raising process governing all areas of the University.

Definitions

Benefit – Benefits are goods or services directly linked to a contribution and accepted by the donor. Benefits (season tickets, sweaters/apparel, etc.) limit the charitable deductibility of the gift and benefits have different accounting treatments.

Donor – Any individual, corporation, foundation or other organization providing gifts to the University.

Fund Raising Event – A fund raising event is any good or service not directly tied to a gift and where the proceeds of the event is specifically marketed for restricted purposes (e.g., a golf event to benefit a scholarship endowment). A fund raising event is not the same as an income/expense activity (where the department is specifically organized to provide a service to the campus and/or community) and not the same as educational sales (where the department's educational mission includes revenue-generating activities, such as the Theatre Department performing plays and musicals).

Gift – A gift is any voluntary contribution of an asset (cash, stocks, property, etc.) to the University from donors where no goods or services were provided in exchange for the contribution. Certain nominal goods or services as defined by IRS regulations (key chains, stickers, etc.) may be provided to donors without impacting the charitable deductibility or accounting classification of the gift.

Pledge – A pledge is a voluntary commitment by a donor to make gifts on a scheduled basis (monthly, quarterly, annually, etc.).

Proposal – Solicitations for large dollar gifts are considered proposals and must be pre-approved before any agent of the University conducts the request (see Gift Policy).

Solicitation – A solicitation is any request of a donor to consider a gift to the University, usually conducted via phone calls, mailings, or in person.

Tax Receipt – The University is required to provide an official receipt to donors for all gifts, disclosing any benefits, as governed by IRS regulations.

Related Policies

Gifts Policy

Roles & Responsibilities

The Board of Trustees is responsible for officially accepting gifts.

The Office of Development and Alumni Relations is responsible for coordinating solicitations and proposals, for processing gifts and pledges, for providing tax receipts to donors, for establishing new gift funds and endowments, and for providing departments with donor restrictions on gifts.

Departments seeking to solicit donors must coordinate their efforts through Development and Alumni Relations. Department business managers are responsible for monitoring gift funds and spending from gift funds in compliance with donor restrictions.    

Dean/VP Financial Managers are responsible for overseeing all gift funds in their operating units, ensuring year-end balances are not in deficit, and ensuring budget transfers are correct.

Procedures and Guidelines

Soliciting Gifts

To solicit a wide group of donors for outright gifts, contact Alumni and Parent Programs. This office coordinates appeals to ensure gifts received go to the proper gift fund and to ensure that donors are not being inundated with requests for gifts.

To solicit donors for large individual contributions ($10,000+), contact Campaign Programs. This office manages relationships with major donors. Solicitations over $250,000 must be approved by the President or Provost.


To conduct other types of fund raising, including membership drives, raffles, bake sales, events, auctions, sales with gifts attached, sponsorships, or any other form of fund raising, contact Alumni and Parent Programs. Please note that these efforts must be carefully coordinated and executed to ensure compliance with all applicable tax laws.


To seek funding for anything that might be considered a "grant", then contact the Office of Sponsored Programs. See section below on Grants vs. Gifts vs. Fund Raising.

Depositing Gifts and Submitting Pledges

The Gift Records Department (and not the Cashier's Office) processes all gifts and pledges for the University to ensure that the gift or pledge can be officially accepted under University policy and to provide an official legal tax receipt to the donor.

To deposit gifts, send the cash, checks or credit card payments noting the name of the gift fund (chartstring) and/or restrictions to Gift Records, Grasse Mount Building. Deposits of $10,000 or more must include a gift agreement, letter from the donor, solicitation from UVM unit or confirmation letter from UVM unit to the donor (the check alone is not sufficient; back up is required).

Once deposited by Gift Records, gift revenue will be recorded in PeopleSoft and expense budgets are increased based on the amount of new revenue. Also, Development makes available a report to departments noting the names, addresses and amounts of donors' gifts deposited.

A pledge is a voluntary commitment by a donor to make gifts on a scheduled basis (monthly, quarterly, annually, etc.). To submit a pledge, please forward to Gift Records a gift agreement, letter from the donor or confirmation letter from UVM unit to the donor outlining the amount of the pledge, the name of the gift fund and the schedule of payments. Pledges of $10,000 or more require a donor signature.

Setting Up A New Gift Fund

New Gift Funds are established by departments to track gifts based on donor restrictions. Named Gift Funds are established by donors based on their particular restrictions. New gift funds are subject to review by and, approval of, several offices at the University, including your Dean/VP Office. Please submit the New Gift Fund form to the Dean/VP Financial Manager, who will review and forward to Gift Records.

Grants vs. Gifts vs. Fund Raising

The words "gift" and "grant" and “fund raising” are used interchangeably by donors, grantors and faculty/staff; however, the nature of the transaction drives the accounting procedures (and not the characterization). These procedures reflect IRS regulations, GASB standards, UVM policies and other related internal and external requirements. The information below covers the vast majority of distinguishing characteristics among gift, grant and fund raising transactions.

Grants — If any of the following conditions are part of the transaction, then it is a grant to be processed via the Office of Sponsored Programs:

Gifts
— The following conditions are acceptable as part of a gift transaction to be processed via Development and Alumni Relations and do not jeopardize the tax-deductibility of the transaction:


Gifts with Membership Programs
— The following conditions do impact the tax-deductibility of a gift and, depending upon the value, could negate the gift entirely:


Fund Raising
— Other forms of fund raising may be conducted, but must be marketing as benefiting a particular gift fund at UVM to be deposited into a restricted fund; otherwise, the revenue is general fund revenue. Fund-raising events are administered through Development and Alumni Relations (along with Financial Analysis and Budgeting.) Examples of fund-raisers are:


If a question still remains about the nature of the transaction then the Vice President of Finance with input from the Office of Sponsored Programs, Development and Alumni Relations and the Controller’s Office will render a decision on a case-by-case basis.


Submitting a Donor Address/Bio Change

Gift Records tracks home addresses, business addresses, seasonal residence addresses, email addresses, phone numbers, job titles and other biographical data. Send to Gift Records any changes or new information for donors.

Membership Programs

In some cases, membership programs can be helpful to attract and retain donors. Members are offered benefits based on the level of gift. Before starting any membership program, please carefully review the real costs of benefits given and the soft costs of time to administer a membership program to see if such a program is worth the investment. If you choose to start a program, the following information is needed:

Important considerations: First, be careful with the benefits you choose to give away. Will these benefits really increase membership? Are you giving too much away? Second, there are tax implications. Some benefits reduce the donor's tax deduction, so consult
IRS publication 526 for more information. Third, use of the UVM name and other indicia of association with UVM are subject to licensing requirements.

Soliciting Members: Work with Alumni and Parent Programs to determine the best solicitation strategies.

Tracking Members: When pledges/gifts are received, you will have access to reports of new activity, which show you who is eligible for benefits. You can track these levels within your department or you can have access to DAR's database and track members in "Gift Clubs". Here, you would look up a donor and assign the membership level to the donor. This also allows you to assign "honorary" memberships.

Membership Reports: You can view (and save/export) membership listings. See "Gift Club - Listings." If you need additional reports, you can request those as needed via "Custom Reports."

Frequently Asked Questions

Who can contribute to a gift fund?
What can be given?
What is a gift fund?
What kinds of expenses are allowed?
What happens if a donor's gift is more restrictive than a gift fund?
Can we change a donor’s restriction or change an existing gift fund?
What are the different types of gift funds?
How do we get a gift fund?
Can a donor get anything in return for a gift?
Can an employee give to his/her own department or fund?
Can an employee provide a free service in exchange for a gift?
What’s the difference between a “reimbursement” and a “gift”?
What’s the difference between a “sponsorship” and an “advertisement”?
How are memorial gifts handled?

Who can contribute to a gift fund?

Any person, corporation, foundation or other non-governmental entity may make a charitable-deductible contribution to a gift fund. In doing so, they agree to the terms and conditions governing allowable expenses, investment policy and other terms. Departmental funds may not be used to contribute to gift funds (i.e., general fund dollars cannot be transferred to a restricted fund). Federal and state funds may be added to gift funds in very rare cases (usually a one-time, small transaction). Contact the Office of Development and Alumni Relations for more information.

Back to Gift and Fundraising FAQs

What can be given?

Donors may contribute by cash, checks, credit card or marketable securities (stocks, bonds). Most forms of personal property or other tangible assets are allowed, however, these transactions should be reviewed with Development and Alumni Relations before accepting the gift to ensure compliance with IRS regulations, GASB standards and other policies. Many other forms of revenue can be deposited to a gift fund, but not all. For example, an event may be held where proceeds benefit a gift fund. Each situation is different and departments might need additional authorizations to accept income. Contact Alumni and Parent Programs to initiate these types of fund raisers.

Back to Gift and Fundraising FAQs

What is a gift fund?

A gift fund (sometimes called gift account) is a restricted fund, including endowed funds, to which donors make gifts. Most of the revenues qualify as charitable deductions for donor tax purposes. A gift fund is a restricted fund because donors contribute to the fund with the expectation that the gift will be spent in a particular way (governed by the restrictions on the fund). Donors may contribute to the University without any restriction on the use of the gift; these gifts benefit The UVM Fund (sometimes referred as president's unrestricted fund or annual giving fund).

Back to Gift and Fundraising FAQs

What kinds of expenses are allowed?

Each fund has its own set of restrictions or allowable expenses, which can make knowing the allowable expenses difficult. Here’s why:

No special phrase exists to differentiate a "discretionary" type gift fund—the type of flexible fund most departments want—from a gift fund with many restrictions. Some phrases used to mean discretionary are “annual fund” or "unrestricted fund" or "gift account". "Discretionary" here means there are no restrictions, aside from the college/school, department, or program in control of the fund. To verify if a gift fund is truly discretionary, consult the governing fund language document.


A gift fund might be named after a donor or an emeriti faculty member or a department, etc. Because of this, the name of a gift fund does not necessarily relate to its purpose. For example, “The Chris Jones Endowed Chair Fund” might be an endowed chair gift fund which allows for research expenses only and not salary or fringe.

All restrictions are outlined in the terms and conditions governing the fund, including allowable expenses, and are recorded either in the Treasurer's Office or in the Gift Records Office of Development and Alumni Relations. The document is sometimes called "fund language" or "memorandum of understanding". For a copy of the terms and conditions governing a fund, contact the unit business manager or Gift Records.

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What happens if a donor's gift is more restrictive than a gift fund?

Sometimes a donor is more restrictive with his/her gift than the gift fund. For example:  UVM might have a HOCKEY TEAM FUND, with no other restrictions. UVM might also have a HOCKEY TEAM EQUIPMENT FUND, which allows equipment expenses only. A donor might be more restrictive than either of those funds, by writing "Here's my gift of $xxx for the Hockey Team to buy hockey sticks only". For auditing reasons, this gift must be tracked separately and here is how it is done.
In Peoplesoft, “Source” is used to identify the donors and restrictions on gifts. A "Discretionary" type gift fund has a Source code of 400001. This has to be used in conjunction with other chartfields to know the restrictions, i.e., the other chartfields are the only controlling factors over the gift fund. A “Designated” type gift fund has a Source code of 499999 and is used when a donor makes a gift under $10,000 with specific restrictions that do not fit into other existing gift funds. The reference field in Peoplesoft will contain the specific instructions of the donor. Two options are available at this point to the department: (1) spend the gift by charging expenses to this chartstring or (2) request a new gift fund be established and the gift will be transferred to this new fund. All other Source codes 4xxxxx have unique sets of restrictions and budget managers should consult the governing terms and conditions of those funds.

Back to Gift and Fundraising FAQs

Can we change a donor’s restriction or change an existing gift fund?

This can be extremely difficult. Under Vermont law, any change of any kind to any gift fund must be authorized in writing by all donors whose gifts are unspent. If a donor is deceased or cannot be contacted, then only courts can authorize changes on behalf of that donor.

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What are the different types of gift funds?

A restricted fund is fully expendable for the stated purpose. For an endowed fund, only the budgeted amount is expendable for the stated purpose.

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How do we get a gift fund?

Gift funds are subject to review by and, approval of, various University Offices which may include the Office of Financial Analysis and Budgeting, the Treasurer's Office and, in many cases, the Provost's Office. To start the process, go to "Set Up a New Gift Fund."

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Can a donor get anything in return for a gift?

Yes, however, certain rights, privileges, services, goods or other conditions given to or expected by the donor in return for a gift may alter the charitable nature of the gift based on IRS regulations and other policies.  In addition, the way in which the gift was solicited may dictate the type of fund, according to GASB accounting standards and other policies. Therefore, planning and coordinating solicitations with Development and Alumni Relations is very important to document gift conditions and expectations and to ensure proper accounting and receipting.

Examples of rights, privileges, services, goods or other conditions given to or expected by the donor in return include:

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Can an employee give to his/her own department or fund?

Employees can make gifts to University funds, including those funds that support their department or program area. Under IRS regulations, the gifts must be irrevocable and employees cannot use these gifts for their personal benefit, nor the personal benefit of a specific individual (e.g., an employee cannot make a scholarship gift and select the recipient). As with any gift from any donor, the gift must support University-allowable expenses and must follow University policies and procedures. In cases where the employee is the primary donor to a fund supporting his/her department, program, research, etc., the University may place control of the fund at the level of the employee's Chair/Director or Dean/VP as an additional layer of oversight. Specifically in Peoplesoft, this means the department chartfield will be that of the Chair/Director or Dean/VP and not the department of the employee. Gifts to endowments have special considerations and are handled on a case by case basis.

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Can an employee provide a free service in exchange for a gift? 

An employee might provide a service (e.g., give a lecture or provide consulting) to a non-UVM organization or company. The employee agrees to do the service free of charge and then the company can choose whether or not it wants to make a gift to UVM; most companies, however, consider this “fee for service” and not a gift. In these cases, the check cannot be accepted because (a) if the employee was acting on behalf of UVM, then the check is service revenue, not a gift and must be deposited as sales/service revenue or (b) if the person was not acting on behalf of UVM, then the check is actually income to the person, reportable on his/her income taxes. For more information, contact Gift Records.

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What’s the difference between a “reimbursement” and a “gift”?

An outside group might be willing to cover UVM’s costs for refreshments at a UVM meeting or cover UVM’s costs for a mailing. Even though the group is only paying for UVM’s actual expenses, this is revenue (not a reimbursement, not a credit deposit against an expense) and would be processed as a gift in most cases.

If a donor wants to cover the costs charged by a vendor (caterer, speaker, etc.), the donor should make a gift to UVM. The gift amount is completely chosen by the donor, so it can be more than, less than or equal to the amount of the vendor's costs. The vendor invoices UVM and the University will pay the vendor directly (the donor should not pay the vendor on behalf of the University). UVM will provide an official tax acknowledgement to the donor as the gift is fully tax-deductible under IRS Publication 526.
 
If a vendor (caterer, speaker, etc.) wants to support a University event, the vendor has two options. Outright Gift or Gift-In-Kind. Each way has tax implications for the vendor to consider. To make an outright gift, a vendor provides a service to UVM, invoices UVM and is paid by UVM; then the vendor can choose to make a gift to UVM by writing a check to UVM. This gift amount is completely chosen by the vendor, so it can be more than, less than or equal to the amount of the invoice. This outright gift is fully tax deductible under IRS regulations (see IRS Publication 526). To make a gift-in-kind, a vendor provides goods or services free of charge (meaning, the vendor does not bill the University with an invoice). The vendor provides the University a letter outlining the value of the goods and services donated and the University will provide an acknowledgement to the vendor for the gift-in-kind. Note, while donation of goods are generally tax-deductible, donation of services are generally not tax-deductible. Please see IRS Publication 526 and consult a tax advisor to determine how much of the gift-in-kind, if any, is tax-deductible.

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What’s the difference between a “sponsorship” and an “advertisement”?

The terms sponsorship and advertisement are sometimes used interchangeably. For tax purposes, an advertisement contains a call to action and is not treated as gift revenue, where a sponsorship simply displays basic company information and is treated as a gift. Examples: if a sign displays a company logo with phone number, then it is a sponsorship, but if the same sign also says “call us for free quotes”, then it is an advertisement (not a gift).

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How are memorial gifts handled?
 
When a faculty member, student, alum or other UVM constituent passes away, the University will accept memorial gifts. At the time of passing, no one can predict the extent to which memorial gifts will be made, therefore identifying the gifts’ purpose or naming opportunity upfront is a challenge. Development provides departments with the ability to collect memorial gifts over a period of a few weeks or months, by directing donors to a memorial fund (e.g., “Gifts may be directed to the ___ Memorial Fund which will honor the life and works of ____.”). Then, DAR will work with the department to identify appropriate ways to use the memorial gifts, which may include a memorial bench, a one-time scholarship award, a named current operating fund, a named endowment fund, etc. The University’s Gift Policy establishes the minimum levels for naming scholarships, lectures, rooms or other forms of recognition from gifts.  Once the decision is made about the gifts’ purpose, departments should notify donors of that purpose.

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Links

Development & Alumni Relations
Gift Policy

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5.17 Cost Accounting

This section is currently under development


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5.18 Insurance Coverage and Claims

This section is currently under development


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Chapter 6 - Financial Information and Technology
 
Information technology systems and services are critical to the overall success of modern human resource and financial management. This section describes the information technology environment at the University of Vermont as that environment impacts financial management operations.

Working Environment

The UVM information technology (IT) working environment is fairly complex, as is typical of the IT environments at major research universities. As is also typical at research universities, the IT support environment is fairly decentralized, with much of the client support funded and provided at the departmental level. College/school and administrative departments with major independent IT service organizations include the College of Medicine, School of Business Administration, School of Engineering and Mathematical Sciences, and Development and Alumni Relations, but many departments or schools have one- or two-person IT support staffs to provide local support for faculty and staff desktop computers. Approximately 60% of UVM’s IT staff on campus are outside the central IT organization. This section will describe the organization of and services provided by UVM’s central IT organization.

The central IT organization is called “Enterprise Technology Services”, or ETS, reflective of its primary role to provide the enterprise-wide IT services which are of greatest interest in financial management operations. Many on campus still refer to ETS as “CIT”, for “Computing and Information Technology”, the name of the central IT organization before the restructuring and separation from Library Services in 2005.

ETS is comprised of:

In most cases, you’ll deal directly with the individual or group providing specific services (e.g., applications developers or Depot sales staff), with internal coordination managed within ETS, but it may be helpful to know the underlying organizational division that’s based on technical skills.


Enterprise Services


The services provided by ETS include the following (partial list):
It is important to note that the Depot and Telecommunications & Network Services are income/expense units, which means that they are self-funding, not-for-profit units that charge for services in order to maintain their operations. The other units are funded by general fund budgets.

Enterprise Business Systems

UVM operates numerous major enterprise business information systems that must function in an integrated manner to serve clients. ETS works in support of various client offices to maintain and manage the applications systems and to integrate processing and information flow among systems. The following is a list of most of the major systems, the client office that primarily uses the systems, and their purposes.
 
System Client Office Function
PeopleSoft HR Human Resource Services HR employee records. Installed modules include: human resources and payroll processing; benefits; time and labor.
PeopleSoft Financials Controller Financial accounting system. Installed modules include: accounts payable; accounts receivable; general ledger; asset management; grants, contracts, projects, treasury, procurement, travel and expenses.
PeopleSoft EPM Financial Analysis and Budgeting Annual Budget preparation and ongoing position management.
Sungard Banner VP Enrollment Management Student records; Admissions; transcripts; financial aid
Sungard Luminis Registrar University web portal
DARS Registrar Degree Auditing and Reporting System, for degree completion planning and advising
Blackboard Center for Teaching and Learning  Campus learning management system
FAMIS Administrative and Facilities Services (AFS) Facilities management; work order processing and billing
KRONOS AFS Timecard recording and management system
Resource-25 Facilities Room and event scheduling system, including event support services ordering, and campus event calendar
Hyperion HSF Financial Analysis and Budgeting Strategic financial planning

Most information systems have a “data steward” who is administratively responsible for the data associated with that system. For example, requests for information regarding students must be made through the Registrar’s office, which is the official custodian for student information: student information cannot be provided by ETS directly.

Note that not all PeopleSoft modules have been implemented within the various applications frameworks, and some functions are implemented outside PeopleSoft.  Most notably, HR Recruiting functions are managed through an outsourced service provider, PeopleAdmin (noted below).

ETS provides some core services to the campus directly in support of enterprise business operations:
Service Product Vendor Purpose
Oracle Database Oracle ETS maintains a site license for Oracle database.  Individual offices need not purchase separate licenses.
Microsoft Windows and Office Microsoft  ETS maintains site licenses (called the “Microsoft Campus Agreement” or “MCA”) for faculty/staff use of Microsoft Windows, Office for Windows, and Office for Mac.
E-mail  Sendmail (open source) Campus e-mail service
Listserv   List service management for e-mail service
Calendar Oracle Campus calendar service for individuals and groups
LDAP  OpenLDAP Electronic identity management, used by most enterprise applications systems for Single-Sign-On identity management and by e-mail clients for e-mail address lookup
Shibboleth Internet-2 Federated identity management system used for authentication with on- and off-campus networked services (governmental, commercial, and academic)
Sharepoint Microsoft Web collaboration space with shared documents, Wiki, discussion board, etc.
RHEL Red Hat ETS underwrites a site license for Red Hat Enterprise Linux.  Individual offices need not purchase separate Linux licenses.

Other major campus systems of note that are not managed by ETS include:
System Client Office Purpose
Endeavor Voyager B/H Library  Library catalog system
Web System University Communications Manage UVM’s web site with standard templates, news content management
InfoEd Office of Sponsored Programs Pre-award grant and contract setup and processing
StudyManager  General Clinical Research Center  Clinical research manager
Blackboard College of Medicine Supports the College of Medicine CoMET instructional system (independent of the campus Blackboard system)
Sungard BSR Advance Development and Alumni Relations Alumni records, solicitations, prospect development
CatCard Facilities Campus charge card and ID card service based on the Diebold card system ( http://www.uvm.edu/~catcard/ )
Comprehensive Rate Information System Cost Accounting Used for effort reporting for grants and contracts management
Fundriver Development and Alumni Relations  Used for endowment accounting
CBORD  Residential Life Housing management system
WinPRISM  Bookstore Bookstore management system from Nebraska Book Company

In many of these cases, ETS hosts the server equipment and/or provides operating system support for these applications.

Externally-provided administrative applications not provided or supported directly by ETS include:
System Client Office Purpose
PeopleAdmin Human Resources HR Recruiting management
Off Campus Partners Student Affairs Off-campus housing locator service for students
Horizon Wimba Continuing Education Web conferencing system, in this case used for distance learning support

Use of University IT Resources and Basic IT Security

All UVM faculty, staff, and students are assigned a network account (“netid”) when they join the University. Accounts are generated automatically through information in systems maintained by the Human Resources Services office and the Admissions and Registrar’s Offices.

Use of the electronic resources made available through that netid is governed by University policy documented in the Computer and Network Use policy, frequently called the “Acceptable Use Policy” or “AUP”.

Netids and their associated passwords provide access to a number of University-maintained information sources such as personal payroll information, course registration and grade information. They also provide faculty and staff with access to systems to do their work – enter grades, manage financial transactions, etc. – and so provide authorized access to sensitive University information.

The netid/password pair should never be shared with other individuals because misuse might put both personal information and enterprise information at risk. 

The netid/password pair also provides individuals with access to a number of enterprise IT services and resources, some of which are described below.

Enterprise Personal Productivity Services

The ETS Web site is the best starting point to explore the range of general IT services and resources available to members of the UVM community:

Network accounts are automatically assigned an associated e-mail account, generally of the format firstname.lastname@uvm.edu through which members of the community will be expected to conduct University business. For example, students are expected to check their UVM email accounts to be informed about business matters associated with their courses, accounts, financial aid, etc. Email may be accessed through a web interface at http://webmail.uvm.edu or by installing an e-mail “client” program such as Thunderbird on your personal workstation (Windows or Mac).

Similarly, personal web sites are established for all network accounts. Sites are of the form http://www.uvm.edu/~netid. Instructions for creating personal web sites are available here.

Calendar accounts are not automatically assigned and must be requested by business managers when new faculty or staff join the University. Calendar accounts can be requested by contacting ETS’s Account Services, account.services@uvm.edu.

Collaboration Sharepoint sites can be created here.

The University offers many e-mail lists (“listserv lists”) that support University work (committees, discussion groups, etc.) and public service. Join existing lists or set up new lists to facilitate your work here.

The University web portal provides a convenient single-sign-on interface for many of the web-based services for campus, most notably email, calendar, Banner, and PeopleSoft.

Active Directory

ETS operates for faculty/staff use a network file storage system based on Microsoft’s Active Directory standard. That storage system is routinely backed-up by ETS operations staff for business continuity and disaster recovery. Administrative staff, in particular, are encouraged to use that system for primary file storage, with local desktop or laptop disk used for “caching” in the event that the network is inaccessible or the laptop is used off campus. Learn more about off campus access by clicking here.

Individuals’ personal network file storage directories are frequently called “the H drive” at UVM, since the campus standard is to map each individual’s personal (secured) network file directory to the Windows/DOS drive letter “H:”, for “home”.

That network system also provides access to “shared” drives that are used by campus offices or collaboration groups for shared document editing and for document archiving.  Departmental shared drives are frequently called “the S drive” at UVM, since the campus standard is to map each individual department’s shared network directory to the Window/DOS drive labeled “S:”, for “shared”.

Each individual with network file storage has at least an H: and S: network directory mapped, by netid, to her/his personal network directory (H:) and departmental directory (S:).

The setup of personal workstations to use network file storage as primary storage is generally done by ETS or local technical support staff but instructions to establish the connection to the S: and H: drives are available for individuals to set up on their own by clicking here.

“zoo” Files

Students have access to personal file storage in a manner similar to the faculty/staff file service. Student services are provided by a cluster of computers that serve files through the network address “zoo.uvm.edu”, which provides file access in a variety of ways students might want to use them. The “zoo” reference is a historic reference to the individual computer systems on UVM’s network that provide various services and that are individually named after animals (just as Stanford’s network hosts were named after California mountain peaks and parks).

Personal Computer Purchases

Personal computers for University use should be purchased through the Microcomputer Depot, located in the Davis Center. The Depot sells and services Dell Windows PCs and Apple Macintoshes, both desktop and laptop models, at prices generally less than commercial sources. Purchases can be made through University accounts, for convenience. The Depot also stocks a variety of keyboards, mice, cables, cases, etc. UVM is a signatory of the American College and University President's Climate Commitment (ACUPCC) and as such is committed to the purchase of Energy Star qualified computers and equipment. The Depot adheres to that commitment in the systems it markets.

The Depot also performs maintenance and repair service, including warranty repair for Dell and Apple computer products.

Most importantly, the Depot installs standard “images” for the computers it sells. Those images, developed jointly by the Client Services, Systems Architecture and Administration, and Depot groups include anti-virus/anti-spam software and configuration settings, disk encryption, and other applications that are commonly used at UVM (e-mail, etc.). Any computer that will be connected to UVM’s network that is not purchased from the Depot should be validated by qualified technical staff to confirm that the correct security software and settings have been applied manually.

Personal Computer Standards

UVM does not have a “standard” for personal computers, and both Windows and Macintosh computers are in use on campus. Because much of the support for office computers is provided by local (departmental or college staff), those staff should be consulted about their ability to support the system of choice before making purchases.

In considering the purchase of a new personal computer, faculty and staff are encouraged to consider laptop computers, potentially in conjunction with docking station and external displays, keyboards, and mice. Such systems generally use less power than desktop computers (as much as 100 watts less) and also have the advantage of providing for work-at-home opportunities, including in the event of catastrophic situations such as a flu pandemic.

Software Standards

UVM’s desktop and applications software standards are not mandatory, but a number of applications have been identified by the campus IT Standards Committee as preferred:

Campus IT support staff, both within ETS and local staff, can provide better support for standard applications identified above than for other comparable applications. Many of the Microsoft tools are available for faculty/staff use via the Microsoft Campus Agreement managed by ETS.

Notably, UVM did not endorse the use of Windows Vista as a campus standard because of incompatibilities with some local departmental applications. Windows Vista is, however, widely used on campus in non-specialized applications (standard office environments). Systems purchased through the Depot for University use have these standard applications installed and configured for UVM. For new purchases, Windows 7 would be the preferred operating system for Windows-compatible systems.
 
ETS maintains a library of standard applications software that is available through the “UVM Software Download Link” [netid/password required].

The University subscribes to Microsoft Campus Agreement for use of Microsoft’s Windows and Office suites on University-owned computers. Agreement terms and conditions are described here. Installation packages are available here (on-campus access) at [netid/password required].

Other commonly-used software, such as a variety of Adobe products, is available through the Depot and the Bookstore. In some cases, those organizations have negotiated volume discounts for UVM. Check there before ordering software products on-line or from other vendors.

Shadow Systems

“Shadow systems” are applications that are maintained locally by individual departments that duplicate some or all of the functionality of centrally-provided enterprise systems. A common example would be a departmental administrative assistant who maintains departmental accounting records in a desktop copy of Quicken. A download of data into Excel used to perform analysis would not be considered a “shadow system”. Keeping backup of transactions entered into the software likewise would not be considered a “shadow system”.

In some situations, shadow systems are required in order for departments to maintain their records, and that was particularly true when the campus first implemented PeopleSoft. As UVM’s PeopleSoft implementation has matured, shadow systems have come increasingly to represent duplicated effort with decreasing value. Business managers are encouraged to reexamine periodically the continued need for any shadow systems used in their units.

Network Access

UVM operates a secured campus network that attempts to restrict access to the internal UVM network to members of the UVM community and authorized affiliates. Connections to the campus are protected by an external “firewall” – a device that screens and logs external connection requests. Critical enterprise services are protected by additional internal firewalls. 

Philosophically, the intention is to validate by netid the identity of any individual connecting to UVM’s internal network of file services. External services such as unsecured web access are provided publicly, without requiring authentication.

For example, though the system hasn’t been deployed across the full campus yet, we have been implementing a network registration system (“NetReg”) that registers cabled computers on the network by their unique addresses (“MAC address). NetReg requires a netid/password to register computers on the campus network.

Similarly, we use Cisco’s Virtual Private Network (VPN) client to allow clients to access the internal UVM network from external locations. Once you’ve established an Internet connection at a remote location (home, hotel, airport, coffee shop), run the VPN client and provide your UVM netid/password to establish a secure “tunnel” into UVM’s network. At that point, your computer behaves as if it were directly connected to UVM’s network, and you can access the network file servers to connect to personal network directories and shared departmental directories.  The Cisco VPN client is available for both Windows and Macintosh OS X operating systems from the ETS software library site.

Wireless (“Wi-Fi”) Services

Click here for details on UVMs wireless service.

While wireless service is widely available across campus, UVM does not have universal wireless service. Wireless access points are funded at the discretion of the individual schools, colleges, and departments or, in public student areas, via the Student Technology Fee. UVM-provided access points (“AP”s) provide authenticated access for members of the UVM community (the “UVM” wireless service) and for guests of members of the UVM community (the “UVM Guest” wireless service). Temporary netid/passwords can be obtained by members of the UVM community at public-service kiosks (e.g., in the Davis Center) or through the web.

While individual departments occasionally install personal (home) wireless routers for use within their departments, those systems frequently cause problems for clients of both the campus wired system and wireless system because of interference with radio signals and network routing. Business officers should discourage acquisition and installation of such devices and should promote the removal of systems that have been installed. Network support staff disable personal routers when they are identified because of the network problems they cause for others.

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Access & Security

Account Access Authorizations

For the key administrative systems, information access is granted to individuals based upon the roles that individual supports within the system. Individuals have access to their own information through self-service systems (e.g., you can review and modify your personal information in the HR system through PeopleSoft self-service screens); however, they do not have access to private information of others except as appropriate for their managerial and administrative roles. For example, a staff member in the Registrar’s office would not have access to Controller’s Office personnel information in the Human Resources system, and vice versa. However, a manager in the Registrar’s Office might have access to information for the staff in that Office who report to her/him. At the time an individual assumes a role that involves managing the information associated with others, her/his authorizations are established. 

For the key systems, the individuals who authorize access and the individuals who physically grant access are listed below:
System Authorize Access Grant Access
Banner Student Recs Associate Registrar Banner Info Sec Team
Banner Financial Aid Student Financial Services Technology Unit Banner Info Sec Team
Banner Admissions Director of Admissions Banner Info Sec Team
PeopleSoft HR Assoc Director, HR PS Info Security Team
PeopleSoft Finance Controller PS Info Security Team
PeopleSoft EPM Assoc Director BRM PS Info Security Team
FAMIS Facilities IT Support Team Facilities IT Support Team

If you believe you should be authorized to read or edit data that you are not able to access, please contact the appropriate individual to establish the correct authorizations for your role. 

Account Responsibility   

As noted in the Computer and Network Use Policy, the security of your account is your responsibility. If your account security is compromised, more than your email is at risk.

Again, the NetID/password combination used to access e-mail is also used to access key enterprise information systems such as PeopleSoft and Banner Student. The security of the University’s information resources relies upon the security of those NetID/password keys kept by individual staff members who have roles that give them access to the information. 

Accordingly, the University has established requirements for highly secured passwords (not in dictionaries; minimum length; minimum complexity in terms of character types) so that passwords cannot be easily “cracked” either by individuals guessing or by automated programs.  Passwords should be changed every six months and changes are required annually.

Do not post your password at your work area or in an easily-accessible location. 

It is also critical that staff not share passwords so as to share accounts – use shared file storage (the “S:” drive) and/or SharePoint for such collaboration. Technology support staff will not ask you for your password, and you should never provide it to anyone. ETS staff cannot “look up” your password to remind you what it is – it is stored in encrypted form. You have the ability to reset your password should you forget it, but no one can look it up for you.

External Data Security

Private, enterprise information may also be exposed outside the core network and enterprise applications systems:

We are required by law to provide notice to those affected and, in some instances, to government authorities, when there has been a security breach might compromise personal information.


The information privacy guidance of the HITECH Act of the ARRA includes similar requirements for personally-identifiable healthcare information (PHI).

In the event that a UVM-owned personal computer – laptop or desktop – is stolen or lost, treat the situation as if there were a data privacy breach until the vulnerability can be assessed. Notify ETS immediately at 6-2123 or 866-236-5752.

UVM is implementing disk drive encryption for University-owned laptop computers to mitigate the risk of data loss associated with loss or theft of laptops. Nevertheless, treat any such loss as if a data breach had occurred and follow the procedure prescribed by law.

Do not store private information (grades, any information with SSN, etc.) on USB drives unless those drives are encrypted.

Should you need to transfer files among systems, to your system at home or while traveling, either use the VPN system or, if you must use FTP (file transfer protocol), use the secured version, SFTP.  That system encrypts information in transit so that it cannot be monitored by other parties on the network.

Training and Support for Human Resource and Financial Management Software

There are several methods of delivery for training on the Budgeting, HR and Financial management systems. Listed below are some of the most common means.  Learning Services, in conjunction with the BPR team and a variety of other individuals, is continually working on developing effective training.

1. Training Sessions

Learning Services offers a variety of scheduled PS training classes throughout the year. Additionally, there are more in-depth classes coordinated through Learning Services and taught by individuals from areas such as BRPT, Procurement Services, Controller’s Office, and FAB. 

Functions and Topics that are regularly covered are as follows:

Details can also be found on the
PeopleSoft Training website

2. Open Labs

Learning Services provides weekly PeopleSoft open labs for hands-on individual learning. This gives users the opportunity to get help on more specific questions. Sessions are open for questions from any area. Click here for a current schedule.

3. Step-by-Step Guides

Within the Learning Services website there are links to many job aids. The job aids are arranged in functional and topical categories on the Learning Services website. These are designed for the user to be able to complete the activity on their own without attending training or to remind the user of steps necessary to complete a task. As UVM continues to enhance functionality and training, new or updated job aids will be published. These can be found under PeopleSoft Training Topics.

4. Departmental Training

Learning Services provides PeopleSoft training to departments as needed and requested. These training sessions can be on-site in the requesting department and are designed to meet the specific needs of the department. To request this training use this form.

5. EPM Annual Budget Training

Each fiscal year, as University financial managers prepare for the annual budgeting cycle, Financial Analysis & Budgeting (FAB) provides training. This training is targeted specifically to users responsible for the annual budget submissions. Updates on policies and program updates are provided as well as a refresher on how to use the software. Details may be found on the FAB website.

Help Desk Tickets or Footprints

To request support for a system issue, the method of reporting the issue is to log a "Footprint" (named after the software system that tracks tickets). There are different queues in which a Footprint can be logged, depending on the type of issue. Make sure to select the correct area in order for your issue to be addressed as quickly as possible. Click here to get to the main login for the Footprints system. Note the categories at the top of the page. Clicking on these links will bring your issue automatically to the correct queue.

Problem Resolution

If you encounter an issue, first try to seek help from others in your department or if you are in an academic unit, your Dean's office. If this does not work, log a Footprint. The Footprint will be routed to the appropriate team to resolve your issue. If you do not hear back within the time-frame specified in your Footprint, call the responsible office.

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Reporting
 
Standard Reports

There are numerous reports and queries that exist in PeopleSoft and other systems. Information about these reports, when they should be used and by whom can be found in other sections of this manual.

Requesting New Reports

When a unit or individual finds that there may be a need for a new report or a modification to an existing report in PeopleSoft, a Help Desk ticket (Footprint) should be logged outlining the request and the reason for the request. This request will be analyzed by the Business Process Re-Engineering Team (BPRT) to determine if the requested report already exists, if the report would be useful to others, if there are any security requirements that need to be taken into account with the report and so on. The BPRT will consult with the relevant units and with the University Business Council as they deem necessary. If it is decided that the request will be completed, the BPRT will write a functional specification. The technical work will be prioritized with other work based on the analysis that was completed. The spec will then be turned over to ETS Enterprise Application Services who will write the report. The BPRT will then coordinate with the functional unit for report testing. When the report is ready to be rolled out, the BPRT will coordinate with Learning Services and the UBC Communications committee, as appropriate, to update documentation, to ensure that training materials exist and to ensure that the necessary communication regarding the changes occur.

To request new reports for other systems, the request should be made to the functional owners of that software.

Reporting Strategy
 
UVM’s reporting strategy strives to provide a methodology that will ensure the following:

Another premise of the Reporting Strategy is that UVM seeks to limit the development of specific reports for specific units. For example, if one unit wants to summarize by chartfield A, while another unit wants to summarize by chartfield B, instead of creating two reports, we would either centrally develop a report that can be made to summarize in different ways, or we would encourage the use of Excel when data needs to be presented or summarized in a specific way.

   
UVM will provide a standard set of reports, with Excel based output whenever possible. When Excel cannot be used to manipulate the data into the format desired, or when new reporting requirements are found, the Report Request Process should be followed.

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Updates and Maintenance

When PeopleSoft was first implemented, various parts of the delivered software were configured and rolled out based on business needs assessments and resource constraints. In addition to the capabilities that were delivered with PeopleSoft when it was purchased, new functionality can be introduced through patches, upgrades, and customizations. As business needs changes and as resources become available, more functionality can be implemented.

The introduction of new functionality will go through a review and acceptance process. This process will include:

Depending on the scope of the changes, a presentation of these findings will be made to the University Business Council (UBC) along with recommendations on how to proceed. Upon acceptance by the UBC, the Business Process Re-engineering Team (BPRT) will then create a project plan for the rollout of the new functionality. This will include time for configuration, testing, and training. The work will be prioritized with existing items in the queue that need to be completed by UVM’s technical and business teams.


Keeping up to Date

Several methods exist for keeping up to date with developments related to financial information. Listed below are some of the most common means.

New Functionality/Major Changes

The University Business Council maintains a web site covering approved proposals, current projects, and future issues. In addition, the web site provides a way for for campus business users to submit ideas or areas of concern that the UBC should address.

Updates on New Reports and Queries

When new reports or queries are developed, they are typically announced via the Catskill listserv described in section 5.6.2 below. Details can also be found on the PeopleSoft Training web site. As new reports and queries are developed, job aids describing how to run the reports are added to the PeopleSoft Training Topics section. In addition, details on all publicly available reports and queries, new and old, can be found by going to the “Reports & Queries” topic on the Training Topics page.

Listserv Lists

Two listservs are of particular interest to those responsible for financial and HR management. The first of these is called “Catskill”. This listserv is for UVM business managers throughout the university. Any university office that wishes to broadcast financial information to campus may do so through the list. Typical communications might cover information such as changing postal rates, telecommunications broadcasts, PeopleSoft updates and notifications of month-end closings. If you have a financial role, you will find it helpful to be subscribed to this list. Click here to subscribe to Catskill. You will receive a confirming email message when your subscription has been processed.

The second listserv of potential interest is called “Bullseye”. This list is for those UVM business managers who are responsible for building budgets. Information about the availability of the EPM budget-building system as well as other details on budget development is sent via this list. This is also the list used to announce BFAN (Business, Finance and Administration Network) meetings. Click here to subscribe to Bullseye. You will receive a confirming e-mail message when your subscription has been processed.

System Maintenance Procedures

Generally speaking, software needs to be updated as new functionality is introduced to meet new or existing business needs, to meet regulatory requirements, or as software defects are found. This is true of both commercial “off the shelf” software as well as software created at UVM. Changes to the software can be scheduled or unscheduled. Software companies often release updates on a published schedule, and the University can decide when to apply the bundles. When there is a software defect, the software may need to be fixed immediately. The following sections describe how UVM maintains our software.

Bundles; bundles installation & testing processes; testing

Software companies issue "bundles" of bug fixes and/or software enhancements. These are released more frequently than new releases or major upgrades. PeopleSoft bundles can also be grouped into "Maintenance Packs." Installation of bundles and Maintenance Packs require considerable time on the part of both functional office and technical staff and so require coordination with the regular annual work cycles in the business offices. At UVM, for PeopleSoft, we aim to apply bundles to the system every six months for Finance and once a year for Human Resources. For the Financials system, we aim to apply these in early June and early November. For the HCM system, we aim to apply them in mid-March. EPM bundles are applied as needed, depending on the budget cycle.

The Business Process Re-Engineering Team coordinates the applications of the bundles. Central functional units, the tech team and the Business Process Re-Engineering team create a project plan which includes time for applying the software changes, testing the software, scheduling and coordinating downtime of the production system, and creating training documentation and communication for any changes that will impact users.
 
New Releases

Software companies release new versions of their software periodically, although not necessarily on a regular basis. The differences between the new version and the old version can be small or large. A new release can introduce useful new functionality. Sometimes upgrading to a new release is necessary in order to be eligible for product support. At UVM, when a new release comes out, the functional "owners" of the software, along with the Business Process Re-Engineering team, DFES Leadership, the ETS PeopleSoft developers team, University Business Council and others as appropriate will work together to determine if and when UVM should upgrade to the new release. If it is decided that we should upgrade, the same groups will work together to create a project plan, determine how the project will be managed, how the resources will be obtained, and what the deadlines will be. In general, UVM seeks to stay on the current version of our software.

Problem Resolution Process with Vendors (nomenclature & process)
   
When "bugs" with our software are found, when the software does not work as designed, or when the software’s design does not meet UVM’s business needs, depending on our maintenance contract with the software vendor, we can log a service request so that the company can analyze the issue and determine if a patch to the software needs to be delivered. Such patches are released either on an ad-hoc basis or they are bundled with other patches, depending on the severity of the issue. The software company may also deem our request as an enhancement request, which they will take under consideration for future releases.

The functional "owners" of the software, along with their technical resources, will determine when a service request needs to be logged with a vendor. Generally speaking, the technical resource will work with the vendor as the vendor tries to replicate the issue. If the vendor issues a patch, after coordinating with the functional resources, the tech team will apply the patch. If the patch can wait and is part of a bundle, it will be applied as part of the bundle application.

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Governance

Business Process Re-Engineering Team

The UVM Business Process Re-Engineering Team (BPRT) is responsible for ensuring the effective implementation of business processes and associated information systems across the University. Specific tasks include identifying, evaluating, and guiding the implementation of process and workflow reengineering opportunities created by the University’s major information systems – most notably, PeopleSoft, Banner, Kronos, and FAMIS. The BPRT completes its work either through UBC committees (see below) or by working with individual offices on projects that meet its mission.

University Business Council

The University Business Council (UBC) advises the Vice President for Finance on planning, policies, and procedures for administrative operations of the University. Most importantly, in the information technology area, the UBC advises on administrative systems priorities and business procedure redesign, working closely with BPRT and ETS.

Budget, Finance, and Administrative Network

The Budget, Finance, and Administrative Network, universally known as “BFAN”, is the group to which information about budgeting and accounting issues and changes are communicated. BFAN membership is primarily departmental business managers who are responsible for daily business operations of the University. Membership is established by the Financial Analysis and Budgeting office.

Faculty Senate

UVM’s Faculty Senate is the forum for academic governance. Two Senate Committees deal with issues that relate to information technology: Financial and Physical Planning, which is concerned with financial planning and operations and with the physical infrastructure of the University, including information systems; and Education and Research Technologies, which is concerned with planning for, promotion of, and use of information technology for instructional and scholarly work. Broad IT planning and policy issues are generally vetted with either or both of those subcommittees. Membership is determined by the Faculty Senate.

Deans’ and Provost's Council

The academic deans confer routinely on issues related to academic planning and priorities, budgeting, etc., and that group is known as the Deans’ Council. The Provost and her/his staff meet regularly and more formally with that group as the Provost’s Council. Either or both groups are involved in policy, planning, and budgeting decisions that would impact financial systems and information systems and are routinely consulted on such issues.

VPEM Leadership Team

The Vice President for Enrollment Management (VPEM) meets routinely with her/his directors and with related information technology leadership to review projects and priorities and to establish the priorities for student systems development. Membership is determined by the VPEM.

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Infrastructure Notes

This is a brief description of the underlying technology infrastructure used in support of the University’s enterprise information services.

Platforms

The server systems generally use a multi-tier architecture with fiber-channel networked disk systems, back-end Oracle database, and front-end application server. Most enterprise equipment is purchased from IBM. PeopleSoft servers generally operate on IBM’s Power architecture running the AIX operating system. Most other servers operate on IBM physical servers based on Intel processors and run Red Hat Enterprise Linux (RHEL). 

Key components in that environment are duplicated between primary off-campus and secondary on-campus data centers, with data replicated between the two sites over the Burlington Optical Fiber Ring network that the University operates.

The University has made extensive use of the VMWare’s virtual machine capabilities to reduce the number of physical server devices, decrease energy consumption, and improve disaster-recovery response times. When at all possible, servers have been implemented as virtual servers that can be migrated quickly between servers at our off-campus location and on-campus servers.

The e-mail system uses the Sendmail system on a multi-server Linux platform with a load-balancing front end (F5).

Similarly, the web server is a multi-server RHEL system running Apache and PHP for services with a load-balancing front end.

Data centers

The University operates two data centers:

Network Ring


The University has a 20-year lease on optical fibers in a 26-mile network “ring” around Burlington in Chittenden County. ETS uses that ring to provide network connectivity between the off and on-campus data centers but also serves a number of other off-site locations such as ECHO, Colchester Research Facility, USDA Forestry, and others. The ring also provides fiber-channel connectivity for the redundant disk storage system.

Business Continuity/Disaster Recovery

The core enterprise servers and storage systems are replicated between the off and on-campus data centers. By using virtual-machine technologies, services can be migrated quickly from a failed or failing physical server.  

In the event of a complete failure at one site, approximately 80% of UVM’s systems would be instantiated at the other site within two hours.

Backup/Recovery

UVM uses a hierarchical backup system that stages backup of live data first to backup disk storage and then to tape. The result is that it is possible to recover deleted files and e-mail mail messages as a service to clients.

Enterprise storage (including e-mail and personal network file directories) are also backed up to storage tapes as a precaution against total data loss in a major disaster. 

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