FIN-050: Recording and Depositing Expenditure Credits

Date: 04/13/2018 Status: Pending
Policy Type: University
Oversight Executive: Vice President for Finance
Applies To: Academic Division and the College at Wise.
Table of Contents:

Policy Statement
Procedures

Reason for Policy:

This policy sets forth institutional expectations for the deposit of University funds received as credits or reimbursements that were originally charged as expenditures in the Grants Accounting (GA) module of the Integrated System.

Definition of Terms in Statement:
  • Expenditure Code:

    Either an expenditure type code in the Grants Accounting (GA) module of the Integrated System or an expenditure object code that allows transactions using it in the General Ledger (GL) module of the Integrated System.

  • Expenditure Credit:

    Incidental, non-recurring expenditure transactions that either (a) originate from a previous disbursement for University business, where some portion of the payment is returned by the original recipient, or (b) are a reimbursement to the University for expenditures originally incurred in total by the University, but for which another organization has agreed to share the cost.

  • Vendor:

    Any entity that supplies goods or services.

Policy Statement:

Deposits to expenditure codes are permitted under certain circumstances as outlined in this policy. Generally, such funds derive from a previous disbursement for University business, where some portion of the original payment is returned by the recipient.

Funds classified as gifts, grants, or contracts, or which result from the sale of goods or services, are not expenditure credits and must not be deposited directly to an expenditure code. Expenditure credits MUST be deposited to the same project that was charged for the original purchase/expense. The following describe situations where recording an expenditure credit or reimbursement in the GL module of the Integrated System is permissible:

  1. Vendor Refunds: When a vendor returns funds due to an overpayment or because goods were returned, the check must be deposited as an expenditure credit.

  2. Travel Reimbursement: Travelers may not seek reimbursement for travel expenses directly from the vendor but should obtain prior approval from the appropriate dean/vice president for the trip and coordinate reimbursement with their department administrator. The University may seek reimbursement for travel of its employees from a vendor; for example, arrangements may be made for vendors to reimburse the University for expenses incurred by University employees to inspect or be trained on new equipment; to visit a site where goods or services can best be evaluated; or for some other purpose which is in the best interests of the University. (For additional information, refer to policy FIN-019, Acceptance of Gifts and Special Benefits from Vendors and BEH-002, Conflict of Interest and Conflict of Commitment.) The payment must be deposited as an expenditure credit.

    When a faculty or staff member travels on behalf of another organization and is reimbursed by that organization after the employee has received reimbursement from the University, the other organization's reimbursement must be deposited as an expenditure credit to offset the University's initial expenditure. [NOTE: When the University receives funds to cover the cost of travel undertaken by a University employee in the normal conduct of University business, these funds must be handled as either a gift to the University or sponsored program (for additional information on gift versus sponsored program, refer to policy FIN-001, Determining if an Award is a Gift or a Sponsored Project and not as an expenditure credit.]

  3. Sundry Reimbursements: There may be occasions when an employee inadvertently uses University resources for personal use, such as postage, photocopying, or the Travel & Expense (T&E) card. In these instances, the individual's repayment must be deposited as an expenditure credit to offset the University's initial expenditure. Reimbursements for salaries or wages must be processed through the Payroll department in order to properly adjust tax reporting information and must not be deposited as expenditure reimbursements.

  4. Joint Funding: When an event is jointly funded by the University and another organization, the University bears the initial expense and the other organization’s funding is not a gift to the University, then the other organization's payment must be deposited as an expenditure credit in order to offset the University's initial expenditure and accurately reflect the University’s net share of the total expense.

The following describe situations where recording an expenditure credit or reimbursement in the GL module of the Integrated System is NOT permissible.

When a payment is received that is not considered revenue and does not fit any of the above examples, contact Accounting Services before depositing the payment.

  1. Re-deposits: When a UVA check is returned by the original recipient, it must be returned to the Procurement & Supplier Diversity Services or Payroll departments for voiding. It must NOT be deposited as an expenditure credit.

  2. UVA-affiliated Foundation Payments (other than joint funding situations): Payments received from UVA-affiliated foundations: (1) as gifts must not be processed as expenditure credits. These payments must be processed in accordance with University policy EXT-008 Acceptance, Receipt and Acknowledgment of Gifts; or (2) for goods and services provided by the University must be processed as revenue and NOT as expenditure credits.

When a payment is received that is not considered revenue and does not fit any of the above examples, contact Accounting Services before depositing the payment.

NOTE: A special set of Expenditure Types has been established to record expenditure credits, see "Related Information" below. The credit to the original Project/Task/ Award/Organization (PTAO) combination must use the special Credit expenditure type that matches the category of the original Charge expenditure type in order to maintain the integrity of both the project budget and the accounting data.

Compliance with Policy:
Failure to comply with the requirements of this policy may result in disciplinary action up to and including termination or expulsion in accordance with relevant University policies.

Questions about this policy should be directed to the Contact Office.

Procedures:

Procedures are currently under revision. Any questions should be addressed to the Contact Office.

Related Information:

GA Credit Expenditure Types mapped to GL Object Codes:

Object Code

Expenditure Type

5031 Exp Credit Faculty Salaries
5032 Exp Credit Classified Salaries
5033 Exp Credit Wages
5034 Exp Credit GTA/GRA
5185 Exp Credit Univ Staff Salaries
5302 Exp Credit Fringe Benefits
6001 Exp Credit Health Care Svcs
6101 Exp Credit Contractual Svcs
6401 Exp Credit Travel
6501 Exp Credit Supplies & Materials
7001 Exp Credit Continuous Charges
7501 Exp Credit Equipment
8001 Exp Credit Prop & Improvement
8051 Exp Credit Plant & Improvement
8101 Exp Credit Schol & Fellowship
8204 Exp Credit Other
Major Category: Finance and Business Operations
Next Scheduled Review: 04/13/2021
Approved by, Date: Policy Review Committee, 04/13/2018
Supersedes (previous policy):
V.B.3, Expdenditure Credits and Reimbursements