Financial Management of Departmental Events Policy

The University at Buffalo (UB, university) establishes and maintains departmental event rates in accordance with the State University of New York (SUNY) Fees, Rentals, and Other Charges Policy. A departmental event is a department sponsored function (e.g., conference, banquet, retreat, outing, fair) for which a fee is charged to participants.

These general principles govern the development of new rates or changes to existing rates:

• Rates are set based on the full cost of the event for which the fee is charged, including allowable costs
• Rates must recover costs when no other dedicated funds are available for that purpose
• A consultation process with participants is encouraged, when appropriate; the consultation process may use a committee with representation from the impacted group

A departmental event billing rate is the cost per participant to attend the event. Costs included in the rate calculation must be:

• Allowable
• Directly attributable to the event
• A necessary and appropriate component of the rate
• Documented
• Reviewed post-event

New rates and changes to existing rates must be reviewed and approved by:

• Financial Management
• Department chair or head
• Unit Business Officer (UBO)
• University Controller

Rates for recurring department events must be reviewed prior to the next event and adjusted as necessary.

Departmental event rates must be developed so that revenues offset costs for each event.

With proper approval, event operations may be subsidized, if the event is meeting research or educational mission to serve the university. When rates are lower than cost, the resulting deficit cannot be carried forward as an adjustment to future billing rates.

Internal Participants

Participants whose payment source is university funds (State, Research Foundation, UB Foundation) cannot be charged more than cost.  

Subsidized Participants

With proper approval, the department may choose to allow attendance at no charge or at a lower rate than other participants, however, the department event rate must be calculated for all internal participants based on total expenses and total participants. Variable rates must be based on clear and identifiable criteria.

Margins for External Participants

Departments are permitted to charge external participants a rate higher than the rate charged to internal participants. Departments are required to track revenues and costs associated with external participants separately to avoid the perception of overcharging.

Rates charged to external customers may include:

• Full direct costs of the event operation including direct costs not charged to internal users
• General University Service Fee (GUSF)
• Sales tax, where applicable

External rates cannot be significantly different than the prevailing rate for identical events provided by other organizations in the area.

Revenue from external users may have Unrelated Business Income Tax (UBIT) implications.

All newly established departmental event fees must be deposited in a separate account. An Income Fund Reimbursable (IFR) account should be established to record event activity. A Research Foundation (RF) income account, and/or a University at Buffalo Foundation (UBF) account may be established to record event activity with prior approval from Financial Management and the university Controller.

A university member may not sign or otherwise execute a procurement contract that binds the university unless they have been delegated signature authority in accordance with the Approval Authority Policy. Refer to the Financial Management of Departmental Events Procedures to request a contract. 

Registration must be collected using approved departmental event rates.

The department must reconcile accounts receivable against event accounts.

Revenue collection must be processed through a university approved method. Departments may elect not to accept internal methods of payment for the event.

The waiver and refund policy must be documented in the Departmental Event Fee Approval, as applicable.

Departments collecting revenue must ensure that the appropriate segregation of duties is maintained to safeguard funds and the university’s reputation, as required in the Safeguarding Cash and Cash Equivalents Policy.

When staffing resources make segregation of duties difficult, compensating controls must be implemented to provide the appropriate checks and balances to detect errors, deter fraud, and prevent concealment of irregularities. 

The department must maintain rate development documentation. Documentation includes the actual costs of providing the event, number of participants, billings, collections, and the annual surplus or deficit.

These records are subject to external audit (e.g., federal, state, RF, other sponsors) and internal review. 

In the event that a fee is imposed upon students without following the guidelines in this policy, funds collected will be refunded to the payee in full upon request made to the campus or by directive from SUNY System Administration. Requests for refunds must be made within three years of collecting the fee.

The SUNY Board of Trustees established levels of authority and requirements for university charges, as described in the SUNY Fees, Rentals and Other Charges Policy. This policy provides a framework for consistent financial guidelines for departmental events that charge a fee.

This policy applies to all departmental event rates administered through State, Research Foundation (RF), and UBF accounts.

This policy does not apply to:

• Non-credit Bearing Professional Development Programs
  • A Non-Credit Bearing Professional Development Program Fee is required; for guidance refer to the Non-Credit Bearing Professional Development Program Fee
• Alumni engagement events may be exempt from this policy if they meet certain criteria. There are three classifications of alumni activities:
  • School and unit-based activities:  these are events housed in the individual school operating budgets managed solely under the discretion of the school. These events are not exempt from this policy. Schools and units may obtain policy exemption for events in which alumni are the primary audience by completing the Office of Alumni Engagement (OAE) OAE Exemption Request form (placeholder).
  • School-focused activities: the OAE in University Advancement manages and oversees a number of school-focused events and activities which are exempt from this policy. While funding and management of the event may be solely or partially managed by OAE, policy exemption occurs with OAE approval.
  • Alumni Association activities: the UB Alumni Association (UBAA) may also manage and oversee events. These events are exempt from this policy if they are managed directly by the UBAA and Alumni Association officers.

Deficit

Amount determined when costs exceed revenues for a given fiscal year. 

Departmental Event

Event hosted by a UB department, either on or off campus, where revenue is collected. Events include, but are not limited to a conference, banquet, retreat, outing, or fair.

External Participant

Organization or individual whose ultimate source of funds is outside the university. External participants include faculty, staff, and students acting in a personal capacity. Affiliated hospitals and other individuals are also considered external participants unless the university has subcontracted with them as part of a grant or contract, in which case they are an internal participant.

Fee

Referring to the event, program, service or product as a whole. There can be multiple rates for each fee.

Fiscal Year

Twelve-month period used for accounting purposes; the university’s fiscal year is July 1 to June 30.

General University Service Fee (GUSF)

Fee charged against external revenue. The service fee is a flat rate charged across all entities on funds generated through the use of university faculty or staff time or use of university facilities.

Internal Participant

An academic, research, administrative, or auxiliary unit whose originating source of funds is within or flows through the university including State, Research Foundation and UB Foundation funds.

Non-Credit Bearing Professional Development Program

UB instructional activity with established methods of assessment and articulated student learning outcomes. For guidance, refer to the Non-Credit Bearing Professional Development Program Fee.

Rate

The individual prices paid or charged (internal; internal +GUSF; external) for all the different pricing options under a fee. There can be multiple rates associated with one fee.

Subsidized User

User who is charged a lower rate or not charged at all.

Subsidy

Additional funding provided by a department or the university that assists in covering the costs.

Surplus

The amount determined when revenues exceed costs for a given fiscal year.

Unallowable Costs

Costs that cannot be included in calculating the cost of a service or activity.

Unrelated Business Income Tax (UBIT)

Taxes that result from income produced by the sale of goods or services to external users not substantially related to the university’s tax-exempt purpose.

• Complete the Departmental Event Fee Approval to begin the process of developing the rates.
• Provide Financial Management with documentation supporting new rate calculations and adjustments to existing rates using the appropriate fee forms.
• Assist Financial Management with break-even (pro-forma) analysis.
• Establish a separate account in the university's accounting systems to record the actual revenues, billings, collections, and surplus or deficit.
• Document the account and source of funding for subsidies.
• Monitor collections on accounts receivable.
• Review actual costs post event and billing rates annually; adjust when necessary.
• Maintain records to document the actual costs of the program, number of participants, revenues, billings, collections, and the annual surplus or deficit.

• Calculate departmental event rates with the assistance of the department.
• ·Calculate projected break-even (pro-forma) and perform annual reviews of break-even with assistance from departments.
• Review and recommend approval of new rates and changes to existing rates.
• Forward a copy of all approved fee rates to the Controller for final approval.
• Perform periodic reviews of departmental event rates to determine consistency with this policy and SUNY guidelines.

• Review and approve all rates, as appropriate.
  • Review and approve event rates, including justification for subsidies.
  • Provide guidance on establishing and reviewing:
    • Departmental fee accounts
    • Procedures for billing and collecting revenue
    • Standard operating procedures, segregation of duties, and compensating controls

• Review and approve all rates, as appropriate.