Requirements for Operating an Educational Business Activity
Operating an Educational Business Activity (EBA) requires an understanding of the guidelines applicable to these types of units.
Moneys generated by an EBA 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, EBA moneys may be expended for goods and services necessary to fulfill the mission and programmatic needs for which the EBA 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 EBA are allowable, allocable and reasonable for all financial activity throughout the EBA’s life.
Reason for Directive
All Educational Business 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.
EBA administrators must ensure that Educational Business 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 EBA 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 EBA
- Auxiliary Loans
- Record keeping and record retention
- Deactivation of an EBA if activity ceased
- Sales Tax and UBIT Consideration
- Modification of an EBA in case of material change
Educational Business Activity
Revenue-generating activity from the provision of goods and/or services. Such activity enhances, promotes or supports the University’s instruction, research, public service and campus support functions and other educational and support functions in order to meet the needs of students, faculty, staff and members of the public participating in University events and programs.
01/31/2021: reviewed content
CFO400: Fiscal Responsibility for UF Leaders
Educational Business Activity/Auxiliary Accounting: (352) 294-7236
University Controller: (352) 392-1321