Project Pre-billing Alternative

Option Available to U-M Departments in lieu of ITS Comm Pre-billing Units for Project Costs

Description

University of Michigan units have the option of transferring funds from operations to the U-M Departmental Equipment Fund to set aside dollars for equipment purchases or renovation project costs that may occur in subsequent fiscal years. The Departmental Equipment Fund can carry these funds forward indefinitely, i.e., until the reserved funds have been spent.

Characteristics/Restrictions

  • Once dollars have been transferred to the Departmental Equipment Fund, they cannot be transferred back to an operating fund. The operating funds include, general, gift, designated and auxiliary.
  • The funds can remain in Departmental Equipment until needed. There are no time restrictions.
  • You may set aside departmental equipment funds for numerous departments, if necessary.
  • Funds can be transferred between departments, but only if they remain in the Departmental Equipment Fund.
  • There are no dollar amount restrictions on purchases.
  • Allowable Expenditures include, but are not limited to, billings to U-M Departments for ITS Comm Service Requests (expense account 611450), most equipment, computers & software, major repairs to equipment, replacement equipment, etc.
  • Funds cannot be used for salaries or operating expenses such as office supplies.

Procedures

  • Request a new short code/Departmental Equipment Fund chartcom from Financial Operations prior to processing or requesting the funds transfer.
  • The chartcom should be set up using class 71000 (Operations and Maintenance).
  • Transfers can be made using the appropriate transfer accounts, as listed below:
    • General fund (10000) use account 624590 to debit the fund providing support and account 420800 to credit the Departmental Equipment fund
    • Gifts and other (30000) — Debit 624590, Credit 421400
    • Designated (40000) — Debit 624590, Credit 421500
    • Auxiliary (50000–55084) — Debit 624590, Credit 421100
    • Auxiliary-Hospital (56000) — Debit 624590, Credit 421000
    • Departmental Equipment (82000) — Debit 420100, Credit 420100