Income Fund Reimbursable Programs and Accounting
Responsible Office: Associate Vice President for Business Affairs
Policy Type: Business Affairs
Policy Number: 205
Last Date Revised: 4/14/15
There are four general categories of reimbursable programs. They are defined as follows:
1. Activities essential to campus operations having exact income/expenditure relationships, such as Food Service
2. User Fees and Fines - these must be approved by the Board of Trustees as to the establishment of a fine or fee and approved for using the income as a reimbursable account by the Division of the Budget.
Some examples of User Fees and Fines, which are authorized for approval as reimbursable, are:
a. Parking fines
b. Physical Education fees
c. Chargebacks and recharges from central services
3. Grants and Awards
Income Reimbursable will be approved only if the grant activity cannot be appropriately administered by the Research Foundation. Examples of Income Fund Reimbursable Program Grants are: Released Time Funding such as a Ford Foundation grant or grants not acceptable by State Agencies due to contract clauses.
4. Academic programs including non-credit continuing education courses that are self-supporting, third party agreements, agreements with other governmental agencies for providing courses for employees and academic programs of an experimental nature formulated after completion of the appropriation process. In the latter category, several requirements must be met before approval will be given for credit bearing academic programs.
- These programs are for a maximum of two years, after which they must be funded through the operating budget. This time restriction may be extended an additional two academic terms for experimental or innovation credit-bearing activity to evaluate the desirability and effectiveness of the program.
- They are demonstrably self-supporting.
- The program is consistent with the approved campus master plan.
- The program is not currently offered in the regular academic program.
- The program is not an activity previously rejected in the budget process.
- The campus as a whole is meeting its enrollment goals.
Academic programs must be submitted by the Chief Academic Officer to the Office of Vice Chancellor for Academic Programs, Policy and Planning. That office will approve or disapprove on academic grounds and, if approved, it will be reviewed for fiscal implication.
Programs in categories 1-3 which do not have major academic implication, will be forwarded from the campus administration directly to the Vice Chancellor for Finance and Business.
All requests for Income Reimbursable Accounts should be submitted to the Associate Vice President for Business Affairs after receiving the endorsement of the requesting department Vice-President. The request should include a detailed description of the program, a projection of the income stating the basis for the projection (rate schedule, etc.) and the method and time of collection, and a budget, detailing expenses by category as Salaries and Wages Regular, Salaries and Wages Temporary, and Supplies and Expense and Equipment. Fringe benefits will be charged for all payroll items except student help, graduate assistants, and honoraria. An Administrative Overhead charge of 13% of revenue will be charged on all Income Reimbursable Accounts except those where funds come through the Research Foundation or from sources which prohibit payment of an Administrative Overhead charge. If the budget and corresponding income is expected to increase significantly in succeeding years, it should be so stated.
- When requesting a fee for an area or item, which is subject to cost inflation, establish a maximum above what is currently required to meet the cost. The campus then has authority to raise the rate up to the maximum.
- All requests for changes to established fees should be submitted to the Senior Vice Provost after receiving the endorsement of the requesting departments' Vice President. An addendum to the original rate request should be filed to document the need for the new rate. Fees, which only need local approval, must be authorized by the Senior Vice Provost serving as the President's designee.
When the Reimbursable account is approved, it will be assigned an account number. This number should appear on all requisitions, timesheets, appointment forms, etc. All procedures for purchasing, personnel appointments, travel, etc. are the same as regular State procedures. The length of personnel commitment, of course, will depend on the length of the program. No permanent commitment can be made if a program will phase out in two years.
The major exception to State procedure is that funds will not lapse at the end of the fiscal year. Any surplus of revenue over expenditures may be carried forward into the next fiscal year.
Revenue collection procedure will be worked out individually for each program with the Business Office. If the revenue is in the form of tuition, it will be collected by Student Accounts, and courses for which revenue is to be deposited in a Reimbursable account must be so designated. Contracts for service must go through the State University Counsel's Office and billing will be done in the Business Office. Collection of small amounts such as parking fines may be performed by the office involved and forwarded to Student Accounts for deposit.
Finally, any campus activity that has financial implications (revenue and expenditures) and utilizes University facilities and/or manpower, must be handled through an Income Reimbursable, Research Foundation, or Binghamton University Foundation Agency account. Under no circumstances are individual bank accounts to be established for these purposes.
Questions concerning the establishment of any Reimbursable account should be directed to the Business Office at 777-6100.