A departmental event is a departmentally-sponsored function for which a fee is charged to participants.
The Financial Management of Departmental Events Policy provides guidelines for the financial management of departmental events fees to support:
A departmental event billing rate is the cost per participant to attend the event. Costs included in the rate calculation must be:
New rates and changes to existing rates must be reviewed and approved by:
Rates for recurring department events must be reviewed prior to the next event and adjusted as necessary.
Financial Management recommends departments submit the full questionnaire with backup documentation at least 4-6 weeks prior to when they would like to advertise their event rates. For more complex events that require contracts, it is recommended that departments reach out in advance to consult what the timeframe may be,
Department Event Base Rate = Budgeted Costs/Budgeted Number of Participants
Budgeted costs are based on prior event costs or an estimate of the upcoming event costs. New event rates must be based on a reasonable estimate of the costs to host the event.
Budgeted number of participants is the total number of individuals expected to attend the event. This budgeted number must be based on the total number of participants regardless of whether the participant is charged. This is necessary to avoid having some participants pay higher rates to compensate for reduced rates charged to other participants.
Once the department event base rate is calculated, variable billing rates may be established, based on the participant types.
Internal Rate = (Cost - Subsidies)
External Rate = (Cost + GUSF + Markup)
Expense Type | Purpose | Description | Allowable-State | Allowable-RF | Allowable-UBF |
---|---|---|---|---|---|
Salary and Wages | Administrative Staff | Actual anticipated percentage of effort by the staff and work should be directly related to the rate being charged (current salary and fringe) | Yes | Yes | |
Salary and Wages | Administrative Staff | Actual anticipated percentage of effort by the staff and work should be directly related to the rate being charged (current salary and fringe) | Yes | Yes | Yes |
Salary and Wages | Faculty | Cost of instruction for academic staff and technicians who perform duties in conjunction with a credit-bearing or required course leading to a degree (tuition and State support are provided for this purpose) | No | No | No |
Food and Beverage | Food and Beverage specific to the event | The food and beverage is related to the specific departmental event. | Yes | Yes | Yes |
Food and Beverage | Alcoholic Beverages | Alcoholic beverages related to event rate | No | No | Yes |
Travel | Travel specific to the event | The travel is related to the specific departmental event. Refer to the Travel Policy for more information. | Yes | Yes | Yes |
Printing and Postage | Printing and postage | The printing and postage charges are reasonable and a necessary component of the event rate | Yes | Yes | Yes |
Materials, Supplies, Equipment | Materials and supplies specific to the event | Can result in a tangible product retained by the participant or where a special service is provided | Yes | Yes | Yes |
Materials, Supplies, Equipment | Supplementary text, software and resource materials | These are not available through the university bookstore but are required for departmental event | Yes | Yes | Yes |
Materials, Supplies, Equipment | Scientific chemicals and laboratory waste | Required part of event and necessary component of rate as proper disposal is also required | Yes | Yes | Yes |
Materials, Supplies, Equipment | Equipment expense is less than $5,000 | Cost of $1-$999 – expense total cost in the year purchased Cost of $1,0000 – $ 4,999 expense cost over a three-year period | Yes | Yes | Yes |
Materials, Supplies, Equipment | Classroom equipment | Typical classroom furniture, used for multiple instructional purposes and part of a regular instructional budget | No | No | No |
Other Expenses | Gifts, Prizes and Awards | Recognizing community members, employees, and students for their merits and contributions in meaningful ways through the use of gifts, prizes, and awards. Such items may not be lavish or extravagant, and must comply with funding source restrictions outlined in the Gifts, Prizes and Awards Funding Chart (Chart). | Yes | Yes | Yes |
Other Expenses | General University Service Fee (GUSF) | The administrative costs associated with revenue collected as part of the event rate | Yes | Yes | Yes |
Other Expenses | Donations and contributions | This can include cash, property and services, made by the university to other entities | No | No | Yes |
Other Expenses | Volunteer personnel | Volunteer costs are less than the calculated rate of hiring facilities or outside agencies to service the event | Yes | Yes | Yes |
Other Expenses | Student or Participant Admission cost | The admission costs for trips are required for the departmental event | Yes | Yes | Yes |
Other Expenses | Professional Services | Speakers, lecturers, or presenters that are a required component of the rate | Yes | Yes | Yes |
Other Expenses | Bad Debt | Any losses from previous year or deficit in related event account | No | No | No |
Other Expenses | Advertising, promotional material, start-up | Any costs for advertising, sending out promotional material, or expenses related to the start-up of the departmental event | No | No | Yes |
Other Expenses | Fundraising | Any fundraising costs associated with the event rate | No | No | Yes |
Task | Title or Department Responsible |
---|---|
Provide Financial Management with all necessary information to calculate event rates by filling out the Departmental Event Approval Request | Department Contact |
Review departmental event rates and cost components for each event for reasonableness post-event and at least annually | Department Contact |
Forward documentation supporting the calculations for new departmental event rates and adjustments to existing rates to Financial Management for review and approval | Department Contact |
Provide guidance in the calculation of event rates. | Financial Management |
Provide guidance in the calculation of project break-even (pro forma) | Financial Management |
Review and recommend approval of new rates and changes to existing rates for departmental events. | Financial Management |
Review and approve departmental events billing rates.. | Unit Business Officer, Controller |
Departmental event rates must be developed so that revenues offset costs for each event. With proper approval, the event operations may be subsidized, if the event is meeting research or educational mission to serve the University. When rates are lower than cost, the resulting deficit cannot be carried forward as an adjustment to future billing rates.
Internal Participants
Participants whose payment source is university funds (State, Research Foundation, UB Foundation) cannot be charged more than cost.
Subsidized Participants
With proper approval, the department may choose to allow attendance at no charge or at a lower rate than other participants, however, the department event rate must be calculated for all internal participants based on total expenses and total participants. Variable rates must be based on clear and identifiable criteria.
Margins for External Customers
Departments are permitted to charge external participants a rate higher than the rate charged to internal participants. Departments are required to track revenues and costs associated with external participants separately to avoid the perception of overcharging.
Rates charged to external customers may include:
External rates cannot be significantly different than the prevailing rate for identical events provided by other organizations in the area.
Revenue from external users may have Unrelated Business Income Tax (UBIT) implications.
During the rate development process, Financial Management will provide an annualized break-even pro-forma and will assist with reviewing the break-even analysis annually.
Because external rates cannot be significantly different than the prevailing rate for identical events provided by other organizations in the area, departments will need to submit market comparisons if charging above or below break-even.
Task | Title or Department Responsible |
---|---|
Review and approve justification for subsidies | Unit Business Officer |
All newly established departmental event fees must be deposited in a separate account. An Income Fund Reimbursable (IFR) account should be established to record event activity. A Research Foundation (RF) income account, and/or a University at Buffalo Foundation (UBF) account may be established to record event activity with prior approval from Financial Management and the University Controller.
At a minimum, events must have at least one account for tracking revenue and expenditures. If a department event has funding from multiple funding sources (i.e., registration revenue and expenses in state IFR; donation funding in UBF), all accounts related to the event entity must be documented in approval forms.
Task | Title or Department Responsible |
---|---|
Request a separate account(s) in the university's accounting systems to record departmental event revenues, expenditures, and equipment replacement reserves. | Departments |
Provide guidance on establishing and reviewing accounts. | Unit Business Officers |
A university member may not sign or otherwise execute a procurement contract that binds the university unless they have been delegated signature authority in accordance with the Approval Authority Policy. Refer to the Department Event Procedures for guidance.
Departments should work with Purchasing and Contract Services to negotiate contracts with vendors. Requests can be made via the ShopBlue Event Request form.
No member of the university may sign or otherwise execute a procurement contract binding the university unless they are a delegated signature authority.
Task | Title or Department Responsible |
---|---|
Work with Purchasing and Contract Services to set up contracts | Department Contact |
Prepare and sign agreements | Assigned Procurement Representative from ShopBlue
|
Registration must be collected using approved departmental event rates. The department must reconcile accounts receivable against event accounts. Revenue collection must be processed through a university approved method. Departments may elect not to accept internal methods of payment for the event.
Billing
Billing must be based upon participation, using approved billing rates, and processed on a timely basis.
Revenue Collection
Depending on the event funding source and the customer’s funding source, there are different processes for invoicing and collecting payments.
Customer Funding Source | Invoice Template | Customer Payment Method |
---|---|---|
State | Interdepartmental Invoice (IDI) | Signed IDI - Recharge Codes on both sides |
RF | Interdepartmental Invoice (IDI) | Signed IDI – RF Expense Code on RF side, Source Code 3311 on State IFR side |
UBF | Interdepartmental Invoice (IDI) | Signed IDI |
External | Invoice | ACH, Wire Transfer, UB Marketplace, Campus Cash |
Customer Funding Source | Invoice Template | Customer Payment Method |
---|---|---|
State | Invoice | ShopBlue (RF as Vendor) |
RF | Interdepartmental Invoice (IDI) | Signed IDI - Recharge Codes on both sides |
UBF | Interdepartmental Invoice (IDI) | Signed IDI |
External | Invoice | ACH, Wire Transfer, RF Marketplace |
Customer Funding Source | Invoice Template | Customer Payment Method |
---|---|---|
State | Invoice | ShopBlue (UBF as vendor) |
RF | Invoice | ShopBlue (UBF as vendor) |
UBF | Interdepartmental Invoice (IDI) | Signed IDI |
External | Invoice | ACH, Wire Transfer, UBF Marketplace |
Accounts Receivable Tracking
If departments are using multiple payment platforms to collect department event fees, keep records of all participants and their payment method. Use Excel if another platform is not available.
Task | Title or Department Responsible |
---|---|
Prepare and issue invoices for participants | Departments |
Provide guidance on procedures for billing and collection revenue. | Unit Business Officers |
Departments collecting revenue must ensure that the appropriate segregation of duties is maintained to safeguard funds and the university’s reputation, as required in the Safeguarding Cash and Cash Equivalents Policy. For instance, a person who receives payments should not be the person who deposits payments or reconciles the account.
When staffing resources make segregation of duties difficult, compensating controls must be implemented to provide the appropriate checks and balances to detect errors, deter fraud, and prevent the concealment of irregularities.
Financial Management can assist departments with templates that outline these procedures.
Task | Title or Department Responsible |
---|---|
Develop standard operating procedures for the department, including segregation of duties and compensating controls, as needed. | Department |
Provide guidance on establishing standard operating procedures, segregation of duties, and compensating controls. | Unit Business Officers |
The department must maintain rate development documentation. Documentation includes the actual costs of providing the event, number of participants, billings, collections, and the annual surplus or deficit.
These records are subject to external audit (e.g., federal, state, RF, other sponsors) and internal review.
Departments should work within their departments to store documentation.
Task | Title or Department Responsible |
---|---|
Maintain records to document the actual costs of hosting the event, participating, revenues, billings, collections, and the annual surplus or deficit. | Department |
Ashley Butcher
Cost Accounting and Financial Reporting
Financial Management
Phone: 716-645-1521
Email: ambutche@buffalo.edu
Carrie Hutchins
IFR, Revenue Accounting and Treasury Management
Financial Management
Phone: 716-645-2640
Email: chutchin@buffalo.edu
Sean Wong
Cost Accounting and Financial Reporting
Financial Management
Phone: 716-645-2658
Email: seanyunc@buffalo.edu