RCM ACCOUNTING
RCM Accounting Under BANNER Finance – Summary
Expense
There are four expense allocations associated with RCM: General Assessment, Academic Affairs Assessment, Financial Aid, and Facilities. Each of these expense allocations are recorded by fund and org with a unique Account (level 4). Unique Accounts are needed because various reports in the Banner system are run off of different attributes, and these attributes are attached to the accounts.
General Assessment – budget and actual activity recorded in account 760100.
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Academic Affairs Assessment– budget and actual activity recorded in account 760110.
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Facilities Allocation – budget and actual activity recorded in account 760105.
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Assessment Offsets (General Admin, Student Affairs – Service, CIS – Service, Academic Affairs, VPR&PS – Service and Facilities) – budget and actual activity recorded in account 760115.
At the start of the year the budgeted expense for each RCM assessment is fully encumbered. A monthly adjustment is done (by VPFA office via JVs) to allocate 1/12 of the assessment. For the General Assessment, Academic Affairs Assessment, and Facilities charge, the budgeted amount will equal the cost distributed. The VPFA office will perform all budget entries and expense entries.
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Financial Aid – budget and actual activity for undergraduate financial aid is recorded in account 722110. Graduate financial aid expenditures are charged directly to school/college financial aid accounts with the exception of intercollege program financial aid which is recorded in account 722105. Specifically, each school/college have the following accounts:
721115 - in state graduate assistantships
721120 - out of state differential - graduate assistantships
721130 - out of state differential - project assistantships
720028 - graduate scholarships
At the start of the year the budgeted expense for each RCM assessment is fully encumbered. Undergraduate financial aid allocations are made each semester with one additional at year end. Graduate financial aid expenditures are posted to the above accounts as they are processed by Business Services.
Revenue
Three revenues are allocated under RCM: Tuition, State Appropriation, and Indirect Cost Revenue (ICR). The VPFA Office budgets the anticipated revenue within each RC unit. Under RCM, UNH continues to record these revenues centrally in the same historical accounts which allows the data needed for USNH reports and historical review (i.e. in-state vs. out-of-state) to be captured. The revenues are allocated periodically by the VPFA office using the following framework, using a unique account that has been set up for each RC unit. This allocation within the unique account nets to zero among UNH and the central accounts have a balance of zero.
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Tuition - Different accounts, are used for each type of tuition
Undergraduate 513030
Graduate 513020
Summer Session 513010
Tuition is recorded in central University accounts. The VPFA office distributes tuition periodically via the JV process, to RC units from a central fund org account during the year. Tuition will be allocated in Sept (Summer session), Nov, Mar, and June but additional adjustments could be made, as information becomes available to update the tuition projections.
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State Appropriations (non capital) – Three accounts are used:
1) State Appropriations – Faculty Salaries allocation – 520100
2) State Appropriations – PAU allocation - 520130
3) University fund allocations – 520110 for hold harmless allocations and 520120 for Central Budget Committee (CBC) allocations. Some university fund allocations may flow through transfer codes (8I1054 for hold harmless and 8I1060 for CBC allocations – if a transfer out in the case of a negative hold harmless, the 8I prefix is substituted with 8O). All state appropriations actuals are recorded in 12 installments through out the year. For those RC units with a negative university fund adjustment, the budget is recorded as a transfer out rather than revenue.
4) Non-permanent University Fund allocations made by the Central Budget Committee - 8I1057 account code will be used and will be recorded in 12 installments through out the year.
5) All budgets and actuals will be set up by the VPFA office.
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Investment income – some units may receive an allocation from Investment Income as part of their University Fund allocation. This will be budgeted and realized in account 551005.
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Indirect Cost Revenue – account 533105. The original automated recording of IDC revenue occurs in central University accounts. The budgeted ICR revenue will be allocated monthly by VPFA office via JVS to the RC units. As it becomes apparent that actual revenues will vary from budgeted amounts, budgets will be adjusted and units will be notified.
Transfers - (see attached summary)
Cooperative Extension (Funds 1UX026 and 1UX028)
State Appropriation revenue is recorded in the same historical accounts. The general assessment and facilities assessment and indirect cost recovery revenue will be recorded within 1UX026.
Non General Fund RC Units, including CIS and Student Affairs Auxiliaries
For auxiliary units such as Athletics, Whittemore Center , Hospitality Services, Housing, CIS and Student Affairs which do not currently receive State Appropriations, fund org combination has been established for each unit. This fund org receives the hold harmless revenue adjustment (State appropriations) in account 520110, and is also used to budget the expense transfer of the hold harmless revenue to the auxiliary accounts – account 8O1054. The auxiliary accounts budget a transfer in for the University Fund using revenue code 8I1054.
In the case where the transfer into an auxiliary is negative, the same accounts should be used but the general fund should reflect a transfer in and the auxiliary should reflect a transfer out using the appropriate account codes.
The full general assessment & facilities charges are reflected in the appropriate account codes:
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General Assessment – budget and actual activity recorded in account 760100.
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Academic Affairs Assessment– budget and actual activity recorded in account 760110.
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Facilities Allocation – budget and actual activity recorded in account 760105.
