Auxiliary Standard Operating Procedures


SUBJECT:

Reporting Requirements for Non-Reporting Auxiliary Units

SOURCE:

Auxiliary Accounting, Financial Management Services

DATE ISSUED:

March 2006

DATE OF LAST REVISION:

June 2016

ASOP NO:

7.0

RATIONALE:

To outline the reporting requirements for non-reporting auxiliary units.

ASOP:

The reporting requirements for non-reporting auxiliary and service units are determined by the amount of annual revenue the unit earned in the previous fiscal year. The specific requirements are listed below; however, each campus reserves the right to require more frequent and/or more extensive requirements.

 

For auxiliary and service units that earned between $250,000 and $749,999, the following tasks are required:

  • Timely recording of financial transactions on an accrual basis.
  • Timely recording of Auxiliary Vouchers at minimum on a quarterly basis (see ASOP 3.0).
  • Timely billing of both internal and external customers. Customers should be invoiced immediately after the good or service has been provided and no later than the end of the quarter in which the good or service was provided.  If a job takes place over a period of time, progress billings should be done based on the percent of project completion.
  • Completing a variance analysis on an annual basis (see ASOP 17.0).
  • Submitting detail backup for all balance sheet object code balances on an annual basis (see ASOP 16.0 and ASOP 44.0).
  • Performing an annual physical inventory. (This is specific to those units with goods for resale.)
  • Reconciling accounts on a monthly basis, as referenced in Policy I-1, Role of Fiscal Officer, Account Manager and Account Supervisor.
For auxiliary and service units that earned less than $250,000 the unit is only required to submit Auxiliary Vouchers (AVs) at fiscal year-end (see ASOP 3.0). 

DEFINITIONS:

Auxiliary Activity: An auxiliary activity is one that furnishes goods or services to any non-Indiana University department and charges a fee directly related to, although not necessarily equal to, the cost of the goods or services. This includes sales to students, faculty and staff for non-IU business, or the general public. An auxiliary activity is an entity that is regularly carried on and is managed with the intent to be self-supporting.

Activities that involve Instruction, Research, Public Service, or Student Services are typically not considered auxiliary activity.

 

Balance Sheet - A financial report that presents data related to the assets, liabilities, and fund balance for an account or organization.

 

Income Statement - A financial report that presents data related to the income and expenses of an account or organization.

 

Non-reporting organization - Generally an Auxiliary or Service Center organization that earns less than $750,000 in revenue per fiscal year.

 

Service Center Activity:  A service center activity is one that furnishes goods or services to another Indiana University department and charges a fee directly related to, and equal to, the cost of the goods or services. Service center rates cannot exceed the rate charged to an external customer. Fundamentally, a service center unit is managed as a self-supporting activity that is to operate at breakeven.

A service center unit is also commonly referred to as a recharge center.

Service center (internal) activity should be separated, at the account level, from external activity.

CROSS

REFERENCE:

 

ASOP 2.0 - Definition of Reporting Auxiliary and Service Centers

Auxiliary Quarterly Variance Analysis Instructions

ASOP 44.0 - Balance Sheet Backup

Campus Administrator

RESPONSIBLE

ORGANIZATION:

 

Auxiliary Accounting, Financial Management Services