OCA/OSP

During fiscal year 2001, effort was directed towards implementing our Disclosure Statement 2 (DS2) and adhering to the institution's Cost Accounting Disclosure Statement (CADS) policies inacross all our academic departments. Accounting and budgeting processes and policies were reviewed for compliance with the DS2 and CADS policies, which can be found at OCA’s homepage. The University’s disclosure statement and cost accounting policies create the framework which when followed produces meaningful financial information and data that These documents, when implemented provide meaningful financial information and data that may be used for comparative purposes with University’s nationwide.

CADS-1 Direct/Indirect

In examining FRS accounts, we found many instances of multiple uses of single department accounts being used for multiple purposes. In several cases, mMatching commitments are being made to for Sponsored Research Programs are being charged to from department instruction accounts and administrative charges are being made to accounts coded to the sponsored program’s function. We also found department administrative expenses charged to FRS accounts which reported sponsored research. These practices muddy our ability to achieve a clear understanding of how UConn supports its research activities.

To properly reflect the expense classifications in the appropriate functionabove, either department account functions were changed altogether or new, separate FRS department accounts were established. The primary (and discrete) functions of instruction, departmental research, and sponsored research, are now better described by our FRS system.

CADS-2 Cost Sharing

In the area of Cost Sharing, FRS Screen 008 was redesigned to capture and report additional co-pi’’s and use of matching accounts. The process flow starts by reviewing cCo-pPi contributors are listed in for funded proposals, updating and entered into screen 008 with level of effort (expressed in percentages)., and certifying tThis effort will be certified through the OSP’s effort reporting surveys.

Matching accounts, also identified in for funded proposalsprojects, will be included on screen 008. Theses accounts should contain only matching expenditures that can be associated with a unique sponsored research program. If equipment is matched, a Separate equipment accounts must be established to record the match, followed by a budget transfer to properly fund the matching account.

Service center accounts have also been used for cost sharing and departmental research expenses. Separate accounts will be established to record matchs contributed by a service center.

CADS-3 Service Centers

Several service centers have fund balances above that the level permitted to meet normal business cycle expenses. This suggests suggests they might be charging excessive rates, but however, our analysis indicates recovered depreciation hasn’t been set aside as prescribed by published guidelines. We will be implementing "best business practices" over the next few months by establishing depreciation reserve accounts for all cost centers.

We will also be reviewing and revising the grant certification sheets completed by the service centers. In these certifications the center director authorizes and makes available the use of the facility. These centers should indicate service center usage at published rates and include any cost sharing provided through use of the service. The rates should be based on measurable units of machine use or other billable and documented service.

We’ve found service center accounts used for cost sharing and departmental research expenses. Our centers need to work with OSP and establishing designated accounts to isolate theses costs types. Charging non-service center costs inside service center accounts makes accounting for these costs nearly impossible.

The grant certification sheets are not being completed correctly. These sheets are essentially awards from our service centers. In the body of the certification, the center director authorizes the use of the facility and makes available facility services. These certifications should indicate center services usage at published rates. We find graduate hours not center services being certified too. The effort system, see CADS-1, is the appropriate method to document graduate effort.

This year the University implemented a consistent budgetary policy as it relatesd to service centers. Briefly, if university resources support center operations on a permanent basis, recoveries of services will default to ledger 1. Centers will work through the Budget Office to determine their annual level of permanent support. Ledger 1 accounts record income for centrally supported programs. When services are self sufficient, income and expense activity can be recorded in a ledger 4 account. The University’s service Service cCenter Ccommittee makes this determination.

You are invited to review our the University’s DS2, CADS policies online at the Office of Cost Analysis’ (OCA) homepage. OCA personnel will come to your department and answer any questions you may have with thisregarding these policies. material.