Issued: April 3, 1989
Latest Revision: July 1, 2001
EXPENDITURE CREDITS AND REIMBURSEMENTS
This policy describes the general guidelines for re-depositing funds received as credits or reimbursements that were originally charged as expenditures in the Integrated System Funds Management module.
2.0 Policy [Top]
Deposits to expenditure codes are unusual occurrences and are permitted only under specific circumstances. Generally, those items that qualify as expenditure credits are incidental, non-recurring and low dollar items that derive from a previous disbursement for University business, where some portion of the payment is returned by the original recipient. Funds that can be classified as gifts, grants or contracts, or which result from the sale of goods or services, are not considered expenditure credits and must never 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 represent situations where recording an expenditure credit or reimbursement in Funds Management is permissible.
:If a vendor returns funds due to an overpayment, or because goods were returned, the check may be deposited as an expenditure credit.
:If 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 contribution may be deposited as an expenditure credit to offset the University's initial expenditure.
NOTE: If the University receives funds to cover the cost of travel undertaken by a University employee in the normal conduct of University business, these funds should be handled as a gift to the University and not as an expenditure credit.
Sundry Reimbursements: If a student, faculty or staff member, reimburses a department for incidental, sundry items such as postage, photocopying or personal telephone calls, the individual's payment may 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 should NEVER be deposited as expenditure reimbursements.
:When an event is funded jointly by the University and another organization, and the University bears the initial expenses, the other organization's contribution may be deposited as an expenditure credit to offset the University's initial expenditure.
Re-deposits: If a UVA check is returned by the original recipient, it should be returned to the Account Payable or Payroll department for voiding. It should NOT be deposited as an expenditure credit.
Note: A special set of Expenditure Types has been established for recording expenditure credits. See "References" 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 the project budget and accounting.
3.0 Definitions [Top]
Expenditure Credit: Generally, those items that qualify as expenditure credits are incidental, non-recurring and low dollar items that derive from a previous disbursement for University business, where some portion of the payment is returned by the original recipient.
4.0 References [Top]
Procedure 5-9, "Processing Expenditure Credits and Reimbursements"
Procedure 9-5, "Processing Gifts in Kind"
> Step-by-step instructions for transferring an expenditure from one PTAEO to another, "Expenditure Batches-Adjusting in GM" [NAV4110U]
> GM 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 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
5.0 Approvals and Revisions [Top]
Previous version in effect from 1/25/00 to 6/30/01 available in policy archive.
Previous version in effect from 4/3/89 to 1/24/00 available in policy archive.