University of California Davis Self-Supporting Recharge Operations - Monitoring
Self-supporting recharge operations must operate on a break even basis. Therefore, units must make every effort to ensure that an activity does not generate a year-end deficit or surplus in excess of 15% of prior year expenditures. If the activity is subject to seasonal fluctuations, then a calendar year or other 12-month period may be used to evaluate the surplus or deficit. In all instances, deficit or surplus balances should be resolved within a 3-year period at most.
Account managers are responsible for monitoring self-supporting recharge activities and ensuring that only expenses necessary to provide the good or service are posted to the general ledger. Helpful information on reporting is noted in the section below. See the Self-Supporting Recharge Operations - Annual Compliance page for specific information on annual compliance requirements.
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Considerations when reviewing financials
Revenue from internal and external customers post to the general ledger (GL) only. It is the departments responsibility to monitor recharge operations at the GL level, whether or not transacting within the Project Portfolio Management (PPM) module. Departments can utilize the budgeting within the PPM module, however, it should not be considered a replacement to monitoring the GL.
If the activity has more revenue or more expenses than expected, find out why.
Possible issues with more revenue than expected:
- rate had depreciation or reserve for improvement, but it was not set up by General Accounting;
- all expenses associated with the activity are not being posted to the account;
- actual costs is lower than estimated cost used in the rate calculation;
- there is a cost savings or efficiency due to larger than expected volume.
Possible issues with more expenses than expected:
- actual cost is higher than estimated cost used in the rate calculation;
- expenses not associated with the approved rate are posting to the account;
- billing is not current.
It is important to note that balance sheet Natural Account totals should not always be included in the review.
Include Balance Sheet when:
- Reconciling your ledgers
- Reallocating the unexpended balance from the prior year
Exclude Balance Sheet when:
- Budgeting for the year or revising the budget
- Monitoring your revenue and expenses
Finally, it is important to keep in mind that assessments are posted monthly and excess funds related to the departmental portion of NUD and markup remain within the Project until the department requests it be moved at fiscal year-end.
Useful Financial Reports
The financial reports below are useful tools to help monitor self-supporting recharge operations and activities. Please use the links below to Knowledge Base Articles (KBA) that provide additional guidance on running each report:
- Department P&L
Currently in Aggie Enterprise, the Department P&L Report is the best option to view self-supporting operations to monitor their financial position and perform financial analysis. It is a summary of operations at a point in time with beginning balance (including accounts receivable balance), total revenue (including external income and recharges), total expenditures, and total ending balance similar to the FIS-193. The user can customize CoA segments in the report for their needs. More instruction on running the report can be found in the KBA Run The Department P&L Report.
The Department PL report should be used for compliance checks using the COA Segments as follows:
FUND - 12100 (Sales and Services Rate Based)
PROJECT - Unique assigned project for Activity
FINANCIAL Department - Top level financial department.
- Transaction Listing
- The UCD Transaction Listing Report is regularly utilized by UC Davis Finance staff to monitor the accuracy and completeness of the university’s general ledger postings, review financial transactions, and perform financial analysis. It provides details of journal entries by period, journal source, journal category and COA attributes. It also provides commitments, obligations, and actual balances. More instruction on running the report can be found in the KBA Run the UCD Transaction Listing Report.
- Account Monitor/Inquire on Detail Balance
- UC Davis employees will use these steps to view General Ledger balances and drill through to journal entry and sub-ledger details. This guide also includes tips for customizing searches and creating saved searches. Instructions are found in the following KBA: https://kb.ucdavis.edu/?id=09756
- GLIDE
- This information is summarized when it's sent to Aggie Enterprise General Ledger (GL) for those operations that are utilizing boundary systems such as Stratacore for billing. Look for "GLIDE" in the Reference column of the GL transaction details to indicate when this system was used. Instruction on running the report can be found in the KBA Understanding the GLIDE Report.
- Review/Inquire Journal
- UC Davis employees will use these steps to inquire and view General Ledger journal entry status and details. This guide also includes tips for customizing searches and creating saved searches. Please click here to access instructions for this report.
- Department Billing Report
- The Department Billing Report shows the list of complete and incomplete invoices and includes transaction numbers, transaction dates, financial departments, and customer names. You use the report primarily to track and review incomplete invoices. Please click here to access instructions for this report.
- Customer Billing History
- The Customer Billing History Report provides an overview of a financial department's transactions and billing activities. Reviewing the report can help identify invoices that were billed, which have been paid, and any adjustments made to the invoices. Please click here to access instructions for this report.
- Receivables Aging Report
- The Receivables Aging Report is designed to provide information about unpaid invoices. The report shows the list of customers and their unpaid invoices in 30-day (non-CGA) or 60-day (CGA) segments. Reviewing the report can help identify customers who might be of financial risk and allow your department to adjust revenue forecasts accordingly. Please click here to access instructions for this report.
- UCD Equipment Inventory Listing Report
- The Equipment Inventory Listing is regularly utilized by both UC Davis Central Office and campus departments to monitor the accuracy and completeness of the university’s moveable equipment inventory and ensure the University meets physical inventory and sponsor requirements. Please click here to access instructions for this report.
Inventory
Units maintaining supply inventories in excess of $50,000 as part of a recharge activity must maintain perpetual inventory records. For detailed information, see PPM 350-60, Management of Major Supply Inventories and PPM 330-11, Departmental Financial Administrative Controls and Separation of Duties.