Printed on: 05/20/2018. Please go to http://policy.umn.edu for the most current version of the Policy or related document.

FREQUENTLY ASKED QUESTIONS

Selling Goods and Services to University Departments FAQ

  1. If I am not an ISO, can I do a journal voucher in the AP system to charge another department for Goods or services that our department sold to them?

    Yes. Units with expected annual internal sales less than $25,000 can do a journal voucher in the AP system using the NonISO revenue account 500103.

  2. Why do I need to keep my external and internal sales transactions separate?

    Combining of costs of internal sales activity with external sales activity could lead to misinterpretation of fund balances by auditors resulting in the recharge center having to refund profits from external sales to the sponsor.

  3. What is Uniform Guidance?

    OMB Uniform Guidance provides principles for associating costs to Federal grants / contracts as either a direct or indirect charge.

  4. What do I need to know about the Uniform Guidance?

    You do not need an in-depth knowledge of the Uniform Guidance to operate your business. The policy has incorporated the Uniform Guidance.

  5. Do I need to keep the rate review documentation?

    Yes, the documentation should be kept on file in the department.

  6. If I adjust the rate greater than 15%, do I need approval from the Internal Sales Office?

    While it is not required, it is best practice to discuss the situation with the Internal Sales Office.

  7. When is the best time to conduct a rate review?

    The best time to conduct a rate review is during fiscal year end. This allows recharge centers to use the most current financial data available for the review (the fiscal year that is ending).

  8. Must units include surpluses/deficits less than 15% in the next year rates?

    While it is good practice, there may be instances in which the recharge center chooses to forgo including a surplus/deficit less than 15% in the next year rates.

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