Self-Supporting Recharge Operations - Annual Compliance

University of California Davis Self-Supporting Recharge Operations - Annual Compliance

The office of Budget & Institutional Analysis (BIA) along with Costing Policy & Analysis (CPA) must annually review the overall performance of all recharge activities. The purpose of the review is to identify activities that demonstrate signs of non-compliance and whose risk profile may have changed. BIA will focus on activities that have significant year-end surplus or deficit balances.  In addition, recharge activities with no income or expense activity during the past fiscal year will be reviewed and closed as needed. 

Campus will identify activities that are not in compliance with the requirement that self-supporting, rate-based recharge activities must operate on a break-even basis. 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 annual expenditures.   The ratio is developed by dividing the accumulated net income or loss by the total expenditures .  The accumulated balance percentage is what will be reviewed by BIA for compliance reporting.  Departments can review their activities utilizing the Department P&L report. 

Department P&L Report Compliance Calculation Example (.xlxs) as of 3/25/24

Compliance reports will utilize the Chart of Account (CoA) Project segment to capture all core revenue and uses.  Therefore, all self-supporting, rate-based recharge activities must reference the unique Chart of Account (CoA) Project segment on all financial transactions.  To quickly review self-supporting (Fund 12100) activities that have posted without a Project segment, an Aggie Dash report has been created. Departments can utilize the UCD Transaction Listing report to create a detailed list of transactions that post to Fund 12100, under the default Project "0000000000", that require corrections.  Transactions that are missing the Project segment should be monitored at least quarterly and corrected by fiscal close.  

**Financial Activity with No Assigned Project Code Segment (as of 4/9/24)**

As outlined in the Guidelines for Deficit Management and Monitoring in Campus Units, following the end of any given fiscal year, data from the GL is utilized to generate the Recharge Operation Compliance Report for each Unit.  The results are posted to the Unit's individual BOX folder (BIA Document Sharing > Unit Folders).  Please contact your Dean/Vice Chancellor Office for a copy of the file if you are not authorized user as access is limited.

As part of the workflow process, departments will work with their Dean/VC office to validate the parameters of each Project listed on the Recharge Operation Compliance Report. Additional information on this step is outlined in the Recharge Compliance Workflow Instructions (PDF).  Templates for recharge operations requiring action plans can be found in the appendix of the deficit guidelines linked above.