9.42 Establishment of Revolving Accounts
Revolving accounts are necessary for the operation of the University and
include all accounts not considered to be part of the general educational
fund of the University. Included are organized educational activities, current
restricted funds, auxiliary enterprises, stores departments, service departments,
student loan funds, endowment funds, plant funds, and agency funds.
To establish a revolving account, a "Request for New Account"
form should be requested from the University Business Office and directed
to the Controller. The Controller will recommend to the Director of Business
Services whether an account may be established as requested and will discuss
with the individual making the request the day-to-day operation of the account.
The "Request for New Account," when completed, will list the source
of funds, the life of the account, a budget for the first year, the staff
member responsible, ledger sheet distribution names, a proposed account
title, the account to receive any plus or minus cash balance as of its closing
date, and a justification for establishing the account.
The Controller will notify the accountholder of the number assigned and
the Business Office employee responsible for monitoring the account.
All revolving accounts are required to be self-supporting. Revolving accounts
will not be permitted to have a deficit fund balance. ("Fund balance"
is defined as the sum of cash balance, merchandise inventory, and accounts
receivable less accounts payable.)
The pricing structure used in assessing charges to departments, students,
or the general public must be stated. Selling prices must be calculated
to include all costs, both direct and indirect. In the case of service department
accounts, funded depreciation should be included for equipment replacement.
Accounts will not be established when the intent is to pay all or part of
costs from the general educational fund and to deposit revenues in a revolving
account.
If it appears that a project involves a one-time activity of short duration
and low dollar volume, it is likely that the request will be denied and
the transactions handled through an existing account.
Purchases made from revolving accounts will not be permitted if they are
unrelated to the reason for establishment of the account, if they are considered
illegal, or if they involve items on the Chief Purchasing Agent's list of
products which may not be purchased.
The "Request for New Account" form must be submitted for organized
educational activities, certain auxiliary enterprises, stores departments,
service departments, and agency funds. The form need not be completed for
current restricted funds or capital projects, as University officials have
pre-authorized the establishment of accounts by signing the project justifications.
Vice President for Administrative Services | 
