Establishing Nonsponsored Accounts for Uncollectible Costs on Sponsored Projects

Uncollectible costs are to be moved, or "written off" to a nonsponsored program. The program used depends on whether SFR or the unit conducting the sponsored activity is processing the transaction, and the function code of the sponsored account from which the costs are being moved.

Costs moved by SFR or by another central unit that has authority to move costs on behalf of units should use the appropriate default program set up by the Controller's Organization. Costs moved by the units themselves should NOT use the default program. Rather, units should identify or establish a nonsponsored program with the appropriate nonsponsored function code for their own use.

Programs Set Up by Central Units

Default non-sponsored programs will be set up with the appropriate fund and function code. One new nonsponsored fund has been established in the chart of accounts:

Fund 1025

Uncollectible Costs from Sponsored Projects

These new funds will participate in the Temporary Investment Pool (TIP) allocation process. Since the funds are unrestricted, accounts will be pooled within each fund, by area or area class, depending on the decision made by each respective collegiate dean for all current fund accounts within their RRC. Accounts in these funds will be designated "Category 1" for TIP purposes. Category 1 balances receive earnings allocations on the pooled balance, and deficits are assessed charges based on the pooled deficit balance.

Within each fund, three new "default orgs" will be established for all departments or CUFS areas that historically have conducted, or may reasonably be expected to conduct sponsored activity. The default orgs will be set up according to the following table: