Reimbursements for Personal Services and Other Expenses

On occasion, a reimbursement is provided to a University department. This procedure addresses that situation as well as reimbursements for all other expenses.  Recording a reimbursement depends upon whether the reimbursement is received from an internal or an external source to the University (e.g. the Foundation, which is considered an external source) and whether the reimbursement applies to a University Supported Ledger 2 account or a non-Ledger 2 account.  

Note: Personal services are defined as salaries, fringe benefits and workers compensation.  The Payroll Authorization is the official and only method for identifying the account where an individual’s salary and fringe benefits are charged. 

Internal: University Department to University Department
To reimburse personal services (services rendered) received from another University account, use a transfer voucher and:

• For a University Support Ledger 2 account: Record the total cost of salary, fringes, workers compensation in subcode 2990 REIMB FOR SVC RENDERED for both the debit and the credit accounts
• For a non-Ledger 2 account : If the account performing the service is a Ledger 3 Auxiliary Enterprise account, record the total cost of salary, fringes, workers compensation in the revenue subcode 0790 REV FR SERV TO DEPTS for the department performing the service then charge the department incurring the expense using subcode 2990 REIMB FOR SVC RENDERED
• For accounts that are NOT Ledger 2 or 3: If the account performing the service is not a Ledger 2 or 3 account, record the total cost of salary, fringes, workers compensation in subcode 0690 REV FR SERV TO DEPTS then charge the department incurring the expense using subcode 2990 REIMB FOR SVC RENDERED

External: Inter-Agency Transfers - University Department to/from a State Agency
To receive reimbursement from another State agency for an expense paid by the University where the reimbursement is described in a contract (e.g., Memorandum of Understanding (MOU)): For all FRS accounts, the reimbursement should be posted to offset the actual expenditures for salary and fringe benefits

To provide a reimbursement from the University for an expense paid by another State agency where the reimbursement is described in a contract (e.g., Memorandum of Understanding (MOU)): Code the check request to a salary and fringe benefit subcodes, as applicable. The MOU should identify whether fringe benefits apply or not. (If the individual from the other State agency is paid from the State General Fund, fringe benefits do not apply and should not be reimbursed.)

External: University Department from an External Source
To receive reimbursement from a source external to the University:

• For a University Supported Ledger 2 account: The reimbursement should be posted as revenue to a Ledger 1 account (101886-0351 for Foundation checks; 101885-0695 for reimbursement checks received from any other external source)
  • A corresponding budget increase will be made to the departmental account
  • If account 101885 is used, the department will need to email the Budget Office with the amount of the deposit and the account that should receive the reimbursement
  • The reimbursement will appear as a budget increase
• To reimburse a non-Ledger 2 account:  The reimbursement check should be posted as revenue using a subcode that is NOT 0690 or 0790

Updated: 7/21/08