UCB Accounting System Review Prepared by: T. Dobson 6/28/01

UCB Accounting System Accounting Standards –UCB Accounting meets U.S. Federal Policies for Accounting standards for contracts. –For Contracts and Grants, UCB is audited every three years by the U.S. Department of Health and Human Services (DHHS) to approve general overhead rates and benefits rates for use on contracts and grants.

UCB Accounting System Purchasing Controls For internal purchasing, UC requires the signature of the Principal Investigator or his designee on the request form. The purchase must then also be approved by the SSL Executive Officer. Payment to the vendor is not approved until the purchase has been accepted by the cognizant engineer and a packing slip has been signed by authorized personnel.

Payroll Controls Time cards are submitted monthly for effort by all personnel and must be signed by the supervisor. Twice yearly, UC issues a payroll report for Principal Investigators (PIs) which lists all employees paid by account and percentage of time. To ensure accuracy on all awards, PI’s must review and sign these reports. UCB Accounting System

Ledger Reports UCB issues financial ledgers monthly which record all activities on each individual account. These reports are reconciled monthly by both SSL accounting and project personnel for accuracy and appropriateness of charges. Categories of expenses shown on the ledgers are: Payroll & Benefits Supplies and Expenses Equipment Travel Subcontracts Overhead Charges

UCB Accounting System Types of S&E Expenses Telephone Charges –Backup of actual phone bills per telephone line given Postage & Express Mail Fees GAEL Insurance Fees (costed per month based on payroll – covers general insurance fees for UC vehicle usage). Photocopying (internal and external as needed) Expendable supplies for the award such as gas, gloves, tools or others non-equipment or non-fabrication items. SSL Recharges (see next page)

UCB Accounting System SSL Recharges –Campus has approved SSL recharge rates for services charged for the direct benefit to contracts or grants such as accounting review, payroll preparation, travel planning and machine shop support. The rates are charged hourly based on work performed. The recharged services are operated under University oversight on a non-profit basis. Rates are approved by the University, and are the same for all University projects regardless of funding source. These costs are calculated monthly and appear on the ledger for each fund.

UCB Accounting System SSL Recharge Rate Schedule University Fiscal Year 7/1/00 – 6/30/01* Cost CenterHourly Rate Accounting$43.00 Payroll$48.00 Travel$32.00 Purchasing$34.00 Machine Shop$55.00 * Rates for next year not yet approved.

UCB Accounting System Machine Shop Charges –The SSL Machine Shop charges competitive hourly rates and has excellent experience with spaceflight hardware. Cognizant Engineers provide drawings and each job is given a separate ID number which is tracked by the project. Final costs can be easily reviewed for each fabricated piece and reports are given monthly to the PI for total machine shop charges.

UCB Accounting System Equipment –Equipment is charged separately for each individual purchase order and is costed separately by: General Equipment (such as computers) Fabrication Components (any purchase that is a part of the fabricated item such as connectors, boards, or microchips Items of equipment costing more than $1,500 receive a property number and are entered into a property management system

UCB Accounting System Subcontracts –Each subcontract is negotiated by the UC Berkeley Sponsored Project Office. Once in place, the subawardee is reviewed by both the PI and Cog E for performance. Subcontractors can bill monthly and their bill is reviewed and authorized before it is paid by the PI or his designee.