University of California Davis Self-Supporting Recharge Operations - Annual Compliance
The office of Budget & Institutional Analysis (BIA) along with Costing Policy & Analysis (CPA) must annually review the overall performance of all recharge activities. The purpose of the review is to identify activities that demonstrate signs of non-compliance and whose risk profile may have changed. BIA will focus on activities that have significant year-end surplus or deficit balances. In addition, recharge activities with no income or expense activity during the past fiscal year will be reviewed and closed as needed.
Campus will identify activities that are not in compliance with the requirement that self-supporting, rate-based recharge activities must operate on a break-even basis. Units must make every effort to ensure that a recharge activity does not generate a year-end deficit or surplus in excess of 15% of annual expenditures. Please review the Compliance Metric Calculation Example (updated Nov'24) for how to use the Department PL Report. The % metric is what will be reviewed by BIA and Costing Policy & Analysis to support annual compliance activities.
All activities under fund 12100 must include the appropriate project code segment and not the default. To quickly review self-supporting (Fund 12100) activities, departments can utilize the UCD Transaction Listing report to create a detailed list of transactions that post to Fund 12100, under the default Project "0000000000". Transactions included under fund 12100 that are missing the Project segment should be monitored at least quarterly and corrected by fiscal close.
As outlined in the Guidelines for Deficit Management and Monitoring in Campus Units, following the end of the fiscal year data from the GL is utilized to generate the Recharge Activity Compliance Report that will be posted to a restricted access BOX folder (BIA Document Sharing > Campuswide Materials > 2024-25 > Recharge Activity Compliance). Please reach out to your Dean/VC office to obtain a copy of the report if you do not have access to the folder.
As part of the workflow process, departments will work with their Dean/VC office to validate the parameters of each Project listed on the Recharge Activity Compliance Report. Additional information on this step is outlined in the Recharge Compliance Workflow Instructions (PDF). Templates for recharge operations requiring action plans can be found in the appendix of the Deficit Guidelines linked above.