UConnect as a Vendor and Clients:
Architectural & Engineering Services (A&ES)
Other University Areas
(also see UConnect Procedure Matrix)

UConnect performs services for other University areas. Work done for UCONN 2000 ledger 7 accounts needs to be recorded in FRS per the guidelines established in Finance. When the guidelines are followed, we know that the State bond funds, UConn 2000, are being handled appropriately.

Three accounts may exist for performing the UConnect work related to Facilities Architectural Services. A method for linking the accounts should exist.

1. A Facilities Architectural Services Plant account will include all charges related to the project, both UConnect related charges and charges from other vendors.

• Expenditures in this account will be completely capitalized.
• Assumption: Equipment charges in the Facilities account are not related to the UConnect purchase order, therefore equipment charges in the Facilities Plant account will be captured for capitalization.
• UConnect purchase orders will be charged in the Facilities account to subcode 8510.

2. ‘UConnect as a Vendor’ accounts

• The UConnect series of Current Unrestricted accounts maps to general ledgers 017200, 017202, 017204, 017206 and in is the account range 432000-432100.
• Expenditures in this range of accounts will not be capitalized.
• Subcodes 8nnn cannot be charged to these accounts. Capital outlay subcodes 8nnn are reserved for Plant accounts only and are used in determining capitalization.
• Subcodes 9nnn cannot be charged to these accounts. UConnect should not be purchasing equipment for the Plant projects. Equipment purchased by UConnect should be charged to a UConnect operating account and use of the equipment would be charged to the ‘UConnect as a Vendor’ account, as appropriate.

3. A Task Labor as a ‘subcontractor for UConnect’ account may not exist for each ‘UConnect as a Vendor’ account. When this type of Task Labor account is necessary, the following applies.

• A Task Labor Plant account in the range 420500-420599 and mapped 1:1 is used.
• The subsidiary ledger account will be identified as NCP (non-capitalized) and will not be capitalized.
• Subcodes 8nnn may be charged to these accounts. Capital outlay subcodes 8nnn are reserved for Plant accounts only; capitalization will not be effected based on the identifier NCP, explained above.
• Subcodes 9nnn cannot be charged to these accounts for the same reasons that apply to UConnect, as explained above.

According to the guidelines, UConnect needs 2 types of accounts:

• 1 for work performed by UConnect for A&E, where A&ES is billed and cuts a check to UConnect
• 1 for work performed by UConnect for other University areas, where a University department is billed and payment is received using a transfer voucher
  
• A unique General Ledger (GL) is assigned for each of the 2 types of accounts.

For FY05, GL 017204 tracks work performed for A&ES.  Only revenue from checks should be seen in subsidiary ledger (SL) accounts mapping to GL 017204.  (To check the GL, enter the ledger 4 account number in FRS screen 6 or 19. The GL is identified in the top part of the screen.)

For FY05, GL 017205 tracks work performed for other departments, Interdepartmental Projects.  Only Transfer Voucher revenue should be seen in subsidiary ledger (SL) accounts mapping to GL 017205.

UConnect Billing Procedures

UConnect Projects Funded from Non-Ledger 7 Funds - Interdepartmental Projects (1 & 2 –presumably)

1. UConnect sends the estimate to the department.
2. The department signs off on the estimate and provides an account where funding is available.
3. UConnect uses an FRS account within their Interdepartmental Projects General Ledger (017206 for FY06).
4. Based on the estimate given to the department, UConnect increases the budget in their subsidiary ledger 4 account (432206 for FY06).
5. When the project is completed, UConnect processes a Transfer Voucher (TV) crediting their account 432206-0690 and charging the department account.  Only subcode 0690 should be used in this account to record the revenue.

UConnect Projects Funded from Ledger 7 Funds – A&ES Telecom Projects

1. UConnect establishes an FRS account within their Telecom Projects General Ledger (017204 was used for FY05).
2. UConnect uses the Purchase Order (PO) received from A&ES as the UConnect project estimate.  If the estimate changes, UConnect must inform A&ES and the PO must be updated.
3. Based on the PO, UConnect establishes a budget in the subsidiary ledger 4 account.
4. Funds are encumbered in the UConnect account based on the PO.
5. When the project is completed, a bill is sent from the Accounting Office – Accounts Receivable area (Darlene) to A&ES.
6. The check is sent from A&ES to the Accounting Office – Accounts Receivable area, where the revenue is posted to the UConnect FRS account using subcode 0696. Only subcode 0696 should be used to record the revenue in this type of ledger 4 account.

Note:  To avoid duplicates in the Inventory system, subcodes beginning with 8 and 9 are prohibited from these accounts.

Updated: 7/28/08