Sent on March 30, 2020 to Chief Financial Managers, RRC Contacts, and recharge center contacts on the Internal/External Sales listserv.
Finance leaders, please further distribute this information to the finance and accounting staff within your organizations.
Accounting for Supplies/Equipment Donated to COVID-19 Response
Last weekend, Vice Presidents Cramer and Tolar put a call out asking units across the University to make available supplies that may contribute to patient care and our complete clinical/health care response to COVID-19. Emergency Management (University Health and Safety personnel) will collect the supplies/equipment for further distribution. We thank all those units that donated and continue to donate the greatly needed supplies/equipment. From an accounting and budget perspective, units will need to process a journal entry. The details of the journal entry are dependent on the original source of funds used to purchase the supplies/equipment donated.
Original Source of Funds
It is highly unlikely that the sponsor will allow the donation of the supplies/equipment as an allowable expense on the grant. Check with SPA for guidance related to sponsor allowability.
Estimate costs associated with the donation, create a journal entry to reclassify the expenses, moving them off the sponsored chartstring to a non-sponsored chartstring within the unit to add the CF2 1000018130 (COVID-19). Documentation as to how costs were estimated should be attached as journal entry support.
The particular funding source selected at the chartstring level will vary based on the unit, the activity, and the resources available. The University will evaluate the overall impact of these expenses and any revenue losses by unit before the end of the fiscal year to determine the final resource allocation.
Estimate costs associated with the donation and create a journal entry, adding CF2 1000018130 (COVID-19). Documentation as to how costs were estimated should be attached as journal entry support.
Recharge Center (U Market, Labs) and Clinics
If the supplies are recorded as inventory, estimate costs associated with the donation, create a journal entry to debit the expense account, credit inventory and add CF2 1000018130 (COVID-19). Assign all other chart string values in alignment with normal unit accounting. Documentation as to how costs were estimated should be attached as journal entry support.
If the supplies are not recorded as inventory, estimate costs associated with the donation and create a journal entry to add CF2 1000018130 (COVID-19).
Donations of Capital Equipment
Per the Managing University Capital Equipment policy, departments are required to receive approval before the donation of University capital equipment. Donations of capital equipment require the submission of U Wide Form UM 1393: Capital Equipment Asset Disposal Form to Accounting Services, firstname.lastname@example.org. Per policy, capital equipment must be fully depreciated to be donated. Exceptions to policy should be requested via the Departmental Reason for Request field on UM 1393. Accounting entries will be determined by Accounting Services. Requests to determine if equipment is capital or non capital can also be directed to email@example.com.