MEMORANDUM

TO: College and Division Business Officers

FROM: Paul Dworkis, Chief Financial Officer and Associate Vice President, Administration and Finance

DATE: September 22, 2016

RE: Creation or Modification of State Accounts

With thanks to many colleagues for their participation, input and support for the important work being done on budgeting and fringe benefits accounting and reporting, great progress has been made.  Your continued support is very much appreciated and essential to the continuing work on these initiatives.

As a means of providing further support with regard to fringe benefits, we have formalized general guidance, consistent with past practice, to help campus users with the establishment or modification of state accounts, particularly as it relates to the determination of whether an account is deemed to be fringe reimbursable.  Please see the attached guidelines that will be available on the Budget and Fiscal Analysis (BFA) website, at:

http://otcads.umd.edu/bfa/accountcodemaint.htm

For the creation of new State Operating accounts, we are now asking users to complete a new checklist which should be attached to the account creation request in KFS.  The checklist will be one input to aid BFA in its determination of whether an account should be designated as fringe reimbursable.

Please note that BFA’s determination of fringe reimbursable for any state-supported account is dependent upon the account’s individual circumstances and its underlying activity. The fringe reimbursable status of an account, once determined, is subject to periodic review for appropriateness.

Please feel free to contact Theresa Beck (tbeck@umd.edu or X5-5636) if you have any questions about the guidance.

Attachments:

· Requests to Establish or Modify a State-Supported Account

· Checklist-State Operating Accounts