Requirements for Operating a Fee-for-Service Educational Activity
Directive Statement
Operating a Fee-for-Service Educational Activity (FSEA) requires an understanding of the guidelines applicable to these types of units.
Moneys generated by an FSEA unit of the University are not appropriated but should follow the expenditure guidelines for appropriations set forth by the State Department of Financial Services, Division of Accounting and Auditing, as outlined in Disbursements – Expenditures. Although these guidelines should be followed, FSEA moneys may be expended for goods and services necessary to fulfill the mission and programmatic needs for which the FSEA was established.
The Fiscal accountability rests with the Department head/Chair assigned to a unit, even if day-to-day responsibility is delegated. Delegation of responsibility does not reduce the accountability of the leader. Fiscal accountability includes the maintenance of all necessary documentation to ensure costs of the FSEA are allowable, allocable and reasonable for all financial activity throughout the FSEA’s life.
Reason for Directive
All Fee-for-Service Educational Activities, no matter the size, are subject to the cost principles set forth in the U.S. Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and other rules and regulations.
Who must comply?
All UF departments.
Operating Requirements
FSEA administrators must ensure that Fee-for-Service Educational Activities are conducted with good business practices in compliance with the laws, rules, regulations and policies of the State of Florida and the University. It is crucial that all staff that has fiscal responsibility for FSEA activities are familiar with these requirements:
- Roles and responsibilities of the department and core offices
- Timely Billing to Internal and External Customers
- Management of outstanding billings and write-off procedures
- Proper recognition of unit’s expense and revenues
- Working capital management
- Rate review and certification
- Transfers outside of the FSEA
- Auxiliary Loans
- Record keeping and record retention
- Deactivation of an FSEA if activity ceased
- Sales Tax and UBIT Consideration
- Modification of an FSEA in case of material change
Last Reviewed
Last reviewed on 03/20/2024
Resources
Training
PST130: Reconciliation
CFO400: Fiscal Responsibility for UF Leaders
Contacts
Auxiliary Accounting: (352) 294-7236
University Controller: (352) 392-1321