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Self-Supporting Funds

Self-supporting activities are products or services provided for a fee by campus departments.

Self-supporting activities must function like a non-profit business and collect revenues sufficient to cover all costs. Services offered must be necessary to advance the educational, research, or public service functions of the university. Self-supporting activities are classified as one of the following:

  • Auxiliary Enterprise
  • Service Enterprise
  • Sales and Services of Educational Activity
  • Teaching Hospital
  • Other Activities

Note: Non-University Differential (NUD) is required to be included in the rate for all non-university clients. Campus Assessments are charged to all recharge and income generating activities (exceptions apply).

Funds in Self-Supporting funds are in funds "6XXXX". These funds are in the Sub Fund Group Types and Sub Fund Groups (with definitions) listed below.


Restrictions

All self-supporting activities including new rates must be reviewed annually to ensure compliance with campus Surplus/Deficit Policy. All rates must be approved by your dean or vice-chancellor's office. Additional reviews may be necessary depending on the rate and impact to campus. Please review the Office with Final Approval document and visit the Budget and Institutional Analysis rate website.

Unallowable Costs:

  • Administrative costs not related to the recharge activity are unallowable. Also, incidental administrative costs related to the activity are unallowable. Incidental administrative effort is when an individual contributes less than 5% of his/her annual effort in support of an activity.
  • In general, advertising and public relations costs are unallowable.
  • Bad debts, fines and penalties are unallowable. Exceptional charges that did not occur through the normal course of business are also unallowable.
  • Costs of entertainment (amusement, diversion and social activities) and any costs directly associated with entertainment (tickets to shows or sporting events, meals, lodging, transportation, etc.) are unallowable.
  • Costs already paid by the federal government are unallowable. This includes depreciation for equipment purchased with federal funds or space constructed with federal funds.
  • In general, acquisition costs associated with the purchase of equipment, land, or buildings are unallowable.
  • Depreciation, capitalized renovations, or leasehold improvements are unallowable when the underlying asset is already included in an F&A cost pool.
  • Costs associated with the operation and maintenance of space that is eligible for state operations, maintenance and plant (OMP) support, including building depreciation and utilities, are unallowable.
  • A reserve for improvements (RFI) (also known as a contingency or expansion reserve) is an unallowable cost for federal customers. RFI costs are not allowable for federal clients. The Office of Costing Policy and Analysis must rebate the RFI portion of any rate paid by federal customers. To control the volume of RFI rebates, a unit must not include a RFI in a recharge activity if the unit anticipates more than 15% of the recharge revenue to be generated by federal clients.

Sub Fund Group Types

  • A - Auxiliary
  • Provides non-instructional support to students, faculty and staff.

    Examples: Residence Hall and Bookstore

    Sub-Fund Group

    Description

    SSAUX

    SALES AND SERVICE OF AUX ENTERPRISES

    SSTHAX

    SALES & SV TEACH HOSP AUX ENT

  • 6 - Service Enterprises
  • Provides service to campus departments and operating costs are primarily supported by recharges.

    ExamplesStorehouse and Fleet Services

    Sub-Fund Group

    Description

    SERENT

    SERVICE ENTERPRISES

    SERMAT

    SERV ENTR MATERIAL FOR RESALE

  • Y - Sales and Service Educational Activities
  • Income producing activities operated by academic departments in connection with the training of students or support of research activities. 

    Examples: Crocker Nuclear Laboratory Services, Dental Clinics

    Sub-Fund Group

    Description

    SSEDAC

    SALES AND SERVICE OF ED ACTIVITY

    SSEDPI

    SALES AND SERVICE ED ACT FED PROG INC

    SSEDSM

    SALES & SERVICE EDUC ACTIV-SCHOOL OF MED

    SSEDVM

    SALES & SERVICE-ED ACT VMTH

    SSSOM1

    SALES & SERVICE EDUC ACT SOM UNIV EVENTS

  • 4 - Sales and Service of Teaching Hospital
  • Revenue producing activities operated by teaching hospitals that support the clinical teaching and research programs.

    Example: UC Davis Medical Center

    Sub-Fund Group

    Description

    SSTHOS

    SALES AND SERVICE OF TEACHING HOSPITAL

  • M - Self Supporting Activities (Other Sources)
  • Other sources include income sources which do not fall naturally into any of the other classifications. Primarily sales and services from non-academic departments. These other revenues are not necessarily rate based but should be self-supporting and not carry any deficits.

    Examples: SISS Visa Service Fee (OSSSO), Patent Income (OTHER), Research Conferences (OTHUNV)

    Sub-Fund Group

    Description

    OSSSO

    OTHER SERVICES - OTHER RATE BASED ACTIV

    OTHER

    OTHER SOURCES - NON RATE BASED

    OTHUNV

    OTHER SOURCE - UNIV RELATED EVENTS

    The sub fund groups below are not rate based or the typical self-supporting activity but are in this sub fund group because they bring other revenue into the university.

    Sub-Fund Group

    Description

    DEFERD

    DEFERRED MAINTENANCE

    DOECOM

    OTHER-DOE COMP

    FEDOFF

    FE OH OFF THE TOP

    PLTSER

    PLANT SERVICE

    STIP

    STIP

    WSOSAG

    WORK STUDY OUTSIDE AGENCY

    For questions on other non-rated based sources, contact General Accounting.


Frequently Asked Questions

  • How often should I review my rates?
  • You should review your rates annually to ensure you are within the 15% guideline. 

    Per the Detailed Guidelines for Recharge Activities and Rates, recharge activities must operate on a break-even basis. Therefore, units must make every effort to ensure that a recharge activity does not generate a year-end deficit or surplus in excess of 15% of prior-year expenditures. If the activity is subject to seasonal fluctuations, then a calendar year or other twelve-month period may be used to evaluate the surplus or deficit.

  • What is the 15% guideline and how do you calculate it?
  • Per the Detailed Guidelines for Recharge Activities and Rates, recharge activities must operate on a break-even basis. Therefore, units must make every effort to ensure that a recharge activity does not generate a year-end deficit or surplus in excess of 15% of prior-year expenditures. If the activity is subject to seasonal fluctuations, then a calendar year or other twelve-month period may be used to evaluate the surplus or deficit.
  • What if my activity exceeds the 15% guideline?
  • Per the Detailed Guidelines for Recharge Activities and Rates, units must recover any surpluses or deficits that are in excess of 15% of the activity’s annual expenditures within three years.  If the plan to recover the surplus or deficit requires a rate change, then refer to the approval process in section III (Recharge Activity Approval Process) of the Detailed Guidelines for Recharge Activities and Rates.
  • Why am I charged the campus assessment?
  • Per the Assessment Resources, the assessment provides a mechanism for self-supporting activities, as part of the campus community, to participate in addressing the reduction in the campus budget. The assessment is 3% of revenues generated. This assessment is required for all accounts that generate revenue (recharge and income).
  • What assessments are required to be charged to an external customer?
  • At minimum you must charge the NUD to all external customers. Review the Detailed Guidelines for Recharge Activities and Rates and the Assessment Resources for more information.