COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS           INDEX
 
 
 

GENERAL INSTRUCTIONS

COVER SHEET AND CERTIFICATION

Part I  General Information

Part II  Direct Costs

Part III  Indirect Costs

Part IV  Depreciation and Use Allowances

Part V  Other Costs and Credits

Part VI  Deferred Compensation and Insurance Costs

Part VII Central System or Group Expenses

 COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS GENERAL INSTRUCTIONS
 
 
 

1. This Disclosure Statement has been designed to meet the requirements of Public Law 100-679, and persons completing it are to describe the Educational institution and its cost accounting practices.  For complete regulations, instructions and timing requirements concerning submission of the Disclosure Statement, refer to Section 9903.202 of Chapter 99 of Title 48 CFR (48 CFR 9903).

2. Part I of the Statement provides general information concerning each reporting unit (e.g., segments, business units, and central system or group (intermediate administration) offices).  Parts II through VI pertain to the types of costs generally incurred by the segment or business unit directly performing under Federally sponsored agreements (e.g., contracts, grants and cooperative agreements).  Part VII pertains to the types of costs that are generally incurred by a Central or Group office and are allocated to one or more segments performing under Federally sponsored agreements.

3. Each segment or business unit required to disclose its cost accounting practices should complete the Cover Sheet, the Certification, and Parts I through VI.

4. Each central or group office required to disclose its cost accounting practices for measuring, assigning and allocating its costs to segments performing under Federally sponsored agreements should complete the Cover Sheet, the Certification, Part I and Part VII of the Disclosure Statement.  Where a central or group office incurs the types of cost covered by Parts IV, V and VI, and the cost amounts allocated to segments performing under Federally sponsored agreements are material, such office(s) should complete Parts IV, V, or VI for such material elements of cost.  While a central or group office may have more than one reporting unit submitting Disclosure Statements, only one Statement needs to be submitted to cover the central or group office operations.

5. The Statement must be signed by an authorized signatory of the reporting unit.

6. The Disclosure Statement should be answered by marking the appropriate line or inserting the applicable letter code which describes the segment's (reporting unit's) cost accounting practices.

7. A number of questions in this Statement may need narrative answers requiring more space than is provided.  In such instances, the reporting unit should use the attached continuation sheet provided.  The continuation sheet may be reproduced locally as needed.  The number of the question involved should be indicated and the same coding required to answer the questions in the Statement should be used in presenting the answer on the continuation sheet.  Continuation sheets should be inserted at the end of the pertinent Part of the Statement.  On each continuation sheet, the reporting unit should enter the next sequential page number for that Part and, on the last continuation sheet used, the words "End of Part" should be inserted after the last entry.

 COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS GENERAL INSTRUCTIONS
 
 
 

8. Where the cost accounting practice being disclosed is clearly set forth in the institution's existing written accounting policies and procedures, such documents may be cited on a continuation sheet and incorporated by reference to the pertinent Disclosure Statement Part.  In such cases, the reporting unit should provide the date of issuance and effective date for each accounting policy and/or procedures document cited.  Alternatively, copies of the relevant parts of such documents may be attached as appendices to the pertinent Disclosure Statement Part.  Such continuation sheets and appendices should be labeled and cross-referenced with the applicable Disclosure Statement item number.  Any supplementary comments needed to fully describe the cost accounting practice being disclosed should also be provided.

9. Disclosure Statements must be amended when disclosed practices are changed to comply with a new CAS or when practices are changed with or without agreement of the Government (Also see 48 CFR 9903.202-3).

10. Amendments shall be submitted to the same offices to which submission would have to be made were an original Disclosure Statement being filed.

11. Each amendment should be accompanied by an amended cover sheet (indicating revision number and effective date of the change) and a signed certification.  For all resubmissions, on each page, insert "Revision Number _____" and "Effective Date _____" in the Item Description block; and, insert "Revised" under each Item Number amended.  Resubmitted Disclosure Statements must be accompanied by similar notations identifying the items which have been changed.

 
COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS   COVER SHEET AND CERTIFICATION
 
 
 

0.1  Educational Institution

  (a) Name     University of California, Riverside

  (b) Street Address    c/o 300 Lakeside Drive

  (c) City, State and ZIP Code  Oakland, CA  94612-3550

  (d) Division or Campus of  University of California
    (if applicable)
 

0.2  Reporting Unit is:  (Mark one.)

  A. _____ Independently Administered Public Institution
 B. _____ Independently Administered Nonprofit Institution
 C.   xx _ Administered as Part of a Public System
 D. _____ Administered as Part of a Nonprofit System
 E. _____ Other (Specify)  _______________________________
 

0.3  Official to Contact Concerning this Statement:

  (a) Name and Title: Jorge Ohy, Manager, Costing Policy & Analysis

  (b) Phone Number (include area code and extension): (510) 987-9842
 

0.4  Statement Type and Effective Date:

  A. (Mark type of submission.  If a revision, enter number)

 (a)   xx    Original Statement
 (b) _____ Amended Statement; Revision No. ____________

  B. Effective Date of this Statement:  (Specify)    December 31, 1997

 COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS COVER SHEET AND CERTIFICATION
 
 

0.5 Statement Submitted To (Provide office name, location and telephone number, include area code and extension):

  A. Cognizant Federal Agency:  Department of Health and Human Services
                                                   Director, Division of Cost Allocation
                                                   Cohen Building, Room 1067
                                                   300 Independence Ave.,S.W.
                                                   Washington, D.C., 20201
                                                   (202) 401-2806

  B. Cognizant Federal Auditor: Department of Health and Human Services
                                                   Office of the Inspector General
                                                   Office of Audit, Room 171
                                                   50 United Nations Plaza
                                                   San Francisco, CA  94102
                                                   (415) 437-8360
 
        Additional copy furnished to Cognizant Federal F&A Cost Negotiator:

                                                   Department of Health and Human Services
                                                   Division of Cost Allocation
                                                   Office of the Director
                                                   50 United Nations Plaza
                                                   San Francisco, CA 94102
                                                   (415) 437-7820
 

 
 

 COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS COVERSHEET AND CERTIFICATION
 
 
 

CERTIFICATION

 I certify that to the best of my knowledge and belief this Statement, as amended in the case of a Revision, is the complete and accurate disclosure as of the date of certification shown below by the above-named organization of its cost accounting practices, as required by the Disclosure Regulations (48 CFR 9903.202) of the Cost Accounting Standards Board under 41 U.S.C. Sec. 422.

Date Of Certification: ______________

 

    ___________________________________________________
 (Signature)

 C. Michael Webster
 (Print or Type Name)
 
 V.C. Administration
 (Title)
 

THE PENALTY FOR MAKING A FALSE STATEMENT IN THIS DISCLOSURE
IS PRESCRIBED IN 18 U.S.C. Sec. 1001
 

 COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679
EDUCATIONAL INSTITUTIONS COVERSHEET AND CERTIFICATION
 
 
 

CERTIFICATION

 I certify that to the best of my knowledge and belief this Statement, as amended in the case of a Revision, is the complete and accurate disclosure as of the date of certification shown below by the above-named organization of its cost accounting practices, as required by the Disclosure Regulations (48 CFR 9903.202) of the Cost Accounting Standards Board under 41 U.S.C. Sec. 422.

Date Of Certification: ______________

 

    ___________________________________________________
 (Signature)

 Anne Broome
 (Print or Type Name)
 
 Associate Vice President, Business and Finance
 (Title)
 

THE PENALTY FOR MAKING A FALSE STATEMENT IN THIS DISCLOSURE
IS PRESCRIBED IN 18 U.S.C. Sec. 1001
 

 COST ACCOUNTING STANDARDS BOARD PART I - GENERAL INFORMATION
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Part I
 

Item
No. Item Description
 
1.1.0 Description of Your Cost Accounting System for recording expenses charged to Federally sponsored agreements (e.g., contracts, grants and cooperative agreements).  (Mark the appropriate line(s) and if more than one is marked, explain on a continuation sheet.)

 A. _____ Accrual

 B. xx       Modified Accrual Basis *

 C. _____ Cash Basis

 Y. _____ Other *
 

1.2.0 Integration of Cost Accounting with Financial Accounting.  The cost accounting system is:  (Mark one.  If B or C is marked, describe on a continuation sheet the costs which are accumulated on memorandum records.)

 A. _____ Integrated with financial accounting records (Subsidiary cost accounts are all  controlled by general ledger control accounts.)

 B. _____ Not integrated with financial accounting records (Cost data are accumulated on  memorandum records.)

 C. xx       Combination of A and B

 COST ACCOUNTING STANDARDS BOARD PART II DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Item
No. Item Description

1.3.0 Unallowable Costs.  Costs that are not reimbursable as allowable costs under the terms and conditions of Federally sponsored agreements are:  (Mark one)

 A. _____ Specifically identified and recorded separately in the formal financial accounting  records. *

 B. _____ Identified in separately maintained accounting records or workpapers. *

 C. _____ Identifiable through use of less formal accounting techniques that permit audit  verification.*

 D. xx       Combination of A, B or C *

 E. _____ Determinable by other means. *
 
 
 

 * Describe on a Continuation Sheet
 

 COST ACCOUNTING STANDARDS BOARD PART I GENERAL INFORMATION
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Item
No. Item Description

1.3.1 Treatment of Unallowable Costs.  (Explain on a continuation sheet how unallowable costs and directly associated costs are treated in each allocation base and indirect expense pool, e.g., when allocating costs to a major function or activity; when determining indirect cost rates; or, when a central office or group office allocates costs to a segment.)
 

1.4.0 Cost Accounting Period:  7/1 to 6/30
 Specify the twelve month period used for the accumulation and reporting of costs under Federally sponsored agreements, e.g., 7/1 to 6/30.  (If the cost accounting period is other than the Institution's fiscal year used for financial accounting and reporting purposes, explain circumstances on a continuation sheet.)
 

1.5.0 State Laws or Regulations.  Identify on a continuation sheet any State laws or regulations which influence the institution's cost accounting practices, e.g., State administered pension plans, and any applicable statutory limitations or special agreements on allowance of costs.
 

 COST ACCOUNTING STANDARDS BOARD PART I GENERAL INFORMATION
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

1.1.0 Description of Your Cost Accounting System

 The University of California’s cost accounting system incorporates data accumulated and recorded in the financial accounting system. The financial statements of the University of California are prepared on the accrual basis with the following modifications:  Depreciation is recorded only on Endowment and Similar Funds investments in real estate.  Certain accruals are omitted such as interest receivable on notes receivable in loan funds and accrued interest payable on plant fund borrowings; the inclusion of such amounts would not have a significant effect on the University’s financial statements.  Certain leave and post retirement benefits costs are charged on a cash basis (See items 5.1.0 and 6.2.1 below).

 The financial records of the University are maintained in accordance with the standards prescribed by the Governmental Accounting Standards Board (GASB) and the National Association of College and University Business Officers.  These standards require that financial transactions be recorded within separate funds and that similar funds be categorized into fund groups for purposes of accounting and financial reporting.  The fund groups are Current Funds, Endowment and Similar Funds, Plant Funds, Loan Funds, and University of California Retirement System Funds.

 COST ACCOUNTING STANDARDS BOARD PART I GENERAL INFORMATION
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

1.2.0 Integration of Cost Accounting with Financial Accounting

 The financial accounting system is primarily designed to meet fund accounting rather than cost accounting requirements.  The financial accounting system accumulates expenditures according to funding source, program purpose and expense categories.  The University receives funds from a variety of sources including State and Federal appropriations; government and private contracts and grants; student fees; gifts; and income from University enterprises such as student housing.  The funds are used for a wide range of programs including instruction, research, public service, academic support, institutional support, operation and maintenance of plant, student services, student financial aid, and auxiliary enterprises.  Salaries, fringe benefits, materials and supplies, and various other categories of expense may be incurred by each program.

 The cost accounting system uses data accumulated and recorded by the financial accounting system, but regroups the data as necessary to meet OMB Circular A-21 and CAS requirements.  For example, University Development fundraising expenses are recorded by the financial accounting system as institutional support (generally an indirect function), but must be reclassified as direct cost in the Other Institutional Activities base to meet A-21 purposes.  A clear audit trail is provided for all reclassifications such that the institution’s cost accounting for a given fiscal year reconciles with its audited financial statements.  With respect to directly charged costs of performing sponsored projects, the cost accounting system can be considered integrated with the financial accounting system.  Depreciation and Use Allowance costs are not recorded in the financial accounting system; these costs are accumulated by the cost accounting system in memorandum records.  Departmental Administration costs are recorded in the financial accounting system, but not separately identified from Instruction and Departmental Research costs.  The University’s cost accounting system creates memorandum records separating Departmental Administration costs from Instruction and Departmental Research costs.

 COST ACCOUNTING STANDARDS BOARD PART I GENERAL INFORMATION
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

1.3.0 Unallowable Costs

 Expressly unallowable costs as defined by OMB Circular A-21, Section J, are identified and accumulated in the formal accounting records of the University using designated organization, fund, or account codes, or a combination thereof.

 OMB Circular A-21, Section J, identifies specific activities that are unallowable and which must be excluded during the preparation of the University’s indirect cost proposal.  Many of these activities are necessary for the operation of an educational institution and are supported by the University’s operations and recognized in the accounting records.  These types of unallowable activities, such as fundraising in the Chancellor’s office, are excluded in their entirety by classifying them with the other unallowable expenses in Other Institutional Activities.  These adjustments are made as part of the indirect cost rate determination study.  Appropriate accounting records and supporting documents are maintained for audit and review purposes.

 Salaries and fringe benefits attributable to the administrative work of faculty and other professional personnel are identified in separate cost accounting system work papers and excluded from the development of Departmental Administration cost pools as required by Subparagraph F.6.a.(2)(a) of OMB Circular A-21. The cost accounting system also identifies aggregated administrative costs in excess of the reimbursement limitation described in Paragraph G.7.a. of OMB Circular A-21.

 Reviews of compliance with existing policy and procedures are conducted in the course of required OMB Circular A-133 audits, and as needed in the judgment of the campus. If additional unallowable costs are identified in the course of a compliance review, appropriate adjustments are made in the cost accounting system records.
 

1.3.1  Treatment of Unallowable Costs

 Consistent with Federal regulations, it is the University’s policy not to charge unallowable costs directly or indirectly to Federal awards.

 The costs of unallowable activities, whether direct or indirect, are excluded from all indirect cost pools and treated as part of Other Institutional Activities for determining indirect cost rates and allocating costs to a major function or activity.

 COST ACCOUNTING STANDARDS BOARD PART I GENERAL INFORMATION
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet

Item
No. Item Description

1.3.1  Treatment of Unallowable Costs (continued)

 Unallowable expenses of allowable indirect activities are not allocated to any direct or indirect cost pools.

 Unallowable central office costs are not allocated to any direct or indirect cost pools.

 The limitation on administrative cost reimbursement described in A-21, G.7.a. does not affect the allocation of administrative costs in the University’s cost accounting system; however, it does affect the indirect cost reimbursement rates applied to Federal awards.
 
 
 

1.5.0 State Laws or Regulations

 State regulations place restrictions on the use of State funds, and also establish financial reporting requirements for various other funds.  However, the University is not aware of any State laws, regulations or special agreements limiting the allowance of costs or materially influencing its cost accounting practices.
 

End of Part I
 

 COST ACCOUNTING STANDARDS BOARD  PART II - DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

 Instructions for Part II
 

 Institutions should disclose what costs are, or will be, charged directly to Federally sponsored agreements or similar cost objectives as Direct Costs.  It is expected that the disclosed cost accounting practices (as defined at 48 CFR 9903.302-1) for classifying costs either as direct costs or indirect costs will be consistently applied to all costs incurred by the reporting unit.

Item
No. Item Description

2.1.0 Criteria for Determining How Costs are Charged to Federally Sponsored Agreements or Similar Cost Objectives.  (For all major categories of cost under each major function or activity such, as instruction, organized research, other sponsored activities and other institutional activities, describe on a continuation sheet, your criteria for determining when costs incurred for the same purpose, in like circumstances, are treated either as direct costs only or as indirect costs only with respect to final cost objectives.  Particular emphasis should be placed on items of cost that may be treated as either direct or indirect costs (e.g., Supplies, Materials, Salaries and Wages, Fringe Benefits, etc.) depending upon the purpose of the activity involved.  Separate explanations on the criteria governing each direct cost category identified in this Part II are required.  Also, list and explain if there are any deviations from the specified criteria).
 

2.2.0 Description of Direct Materials.  All materials and supplies directly identified with Federally sponsored agreements or similar cost objectives.  (Describe on a continuation sheet the principal classes of materials which are charged as direct materials and supplies.)
 

2.3.0 Method of Charging Direct Materials and Supplies.  (Mark the appropriate line(s) and if more than one is marked, explain on a continuation sheet.)
 

2.3.1 Direct Purchases for Projects are Charged to Projects at:
 A. _____ Actual Invoiced Costs
 B. xx       Actual Invoiced Costs Net of Discounts Taken
 C. _____ Other(s) *
 Z. _____ Not Applicable

 COST ACCOUNTING STANDARDS BOARD PART II - DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus
 

Item
No. Item Description

2.3.2 Inventory Requisitions from Central or Common, Institution-owned Inventory.  (Identify the inventory valuation method used to charge projects):

 A. _____ First In, First Out
 B. _____ Last In, First Out
 C. xx       Average Costs *
 D. _____ Predetermined Costs *
 Y. _____ Other(s) *
 Z. _____ Not Applicable
 
 

  * Describe on a Continuation Sheet

 COST ACCOUNTING STANDARDS BOARD  PART II - DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus
 

Item
No. Item Description

2.4.0 Description of Direct Personal Services.  All personal services directly identified with Federally sponsored agreements or similar cost objectives.  (Describe on a continuation sheet the personal services compensation costs, including applicable fringe benefits costs, if any, within each major institutional function or activity that are charged as direct personal services.)

2.5.0 Method of Charging Direct Salaries and Wages.  (Mark the appropriate line(s) for each Direct Personal Services Category to identify the method(s) used to charge direct salary and wage costs to Federally sponsored agreements or similar cost objectives.  If more than one line is marked in a column, fully describe on a continuation sheet, the applicable methods used.)

                                                Direct Personal Services Category
                                                                                     Faculty   Staff   Students    Other
                                                                                       (1)          (2)         (3)         (4)

 A. Payroll Distribution Method                                                      xx        xx          xx
  Individual time card/actual hours and rates)

 B. Plan - Confirmation (Budgeted                                  xx             xx        xx          xx
  planned or assigned work activity,
  updated to reflect significant changes)

 C. After-the-fact Activity                                               xx             xx       xx           xx
  Records (Percentage Distribution
  of employee activity)

 D. Multiple Confirmation Records
  (Employee Reports prepared
  each academic term, to
  account for employee's
  activities, direct and indirect
  charges are certified separately.)

 Y. Other(s) *
 

 

 COST ACCOUNTING STANDARDS BOARD PART II -  DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus
 

Item
No. Item Description

2.5.1 Salary and Wage Cost Distribution Systems.  Within each major function or activity, are the methods marked in Item 2.5.0 used by all employees compensated by the reporting unit?  (If "NO", describe on a continuation sheet, the types of employees not included and describe the methods used to identify and distribute their salary and wage costs to direct and indirect cost objectives.)

 _____ Yes
 xx  No
 
 
 
 
 

 * Describe on a Continuation Sheet

 COST ACCOUNTING STANDARDS BOARD PART II - DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus
 

Item
No. Item Description

2.5.2 Salary and Wage Cost Accumulation System.  (Within each major function or activity, describe, on a continuation sheet, the specific accounting records or memorandum records used to accumulate and record the share of the total salary and wage costs attributable to each employee's direct (Federally sponsored projects, non-sponsored projects or similar cost objectives) and indirect activities.  Indicate how the salary and wage cost distributions are reconciled with the payroll data recorded in the institution's financial accounting records.)
 

2.6.0 Description of Direct Fringe Benefits Costs.  All fringe benefits that are attributable to direct salaries and wages and are charged directly to Federally sponsored agreements or similar cost objectives.  (Describe on a continuation sheet all of the different types of fringe benefits which are classified and charged as direct costs, e.g., actual or accrued costs of vacation, holidays, sick leave, sabbatical leave, premium pay, social security, pension plans, post-retirement benefits other than pensions, health insurance, training, tuition, tuition remission, etc.)
 

2.6.1 Method of Charging Direct Fringe Benefits.  (Describe on a continuation sheet, how each type of fringe benefit cost identified in item 2.6.0. is measured, assigned and allocated (for definitions, See 9903.302-1); first, to the major functions (e.g. instruction, research); and, then to individual projects or direct cost objectives within each function.)
 

2.7.0 Description of Other Direct Costs.  All other items of cost directly identified with Federally sponsored agreements or similar cost objectives.  (List on a continuation sheet the principal classes of other costs which are charged directly, e.g., travel, consultants, services, subgrants, subcontracts, malpractice insurance, etc.)

 COST ACCOUNTING STANDARDS BOARD PART II - DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus
 

Item
No. Item Description

2.8.0 Cost Transfers.  When Federally sponsored agreements or similar cost objectives are credited for cost transfers to other projects, grants or contracts, is the credit amount for direct personal services, materials, other direct charges and applicable indirect costs always based on the same amount(s) or rate(s) (e.g., direct labor rate, indirect costs) originally used to charge or allocate costs to the project (Consider transactions where the original charge and the credit occur in different cost accounting periods).  (Mark one, if "No", explain on a continuation sheet how the credit differs from original charge.)

           Yes
 xx      No
 

2.9.0 Interorganizational Transfers.  This item is directed only to those materials, supplies, and services which are, or will be transferred to you from other segments of the educational institution.  (Mark the appropriate line(s) in each column to indicate the basis used by you as transferee to charge the cost or price of interorganizational transfers or materials, supplies, and services to Federally sponsored agreements or similar cost objectives.  If more than one line is marked in a column, explain on a continuation sheet.)

                                                                           Materials Supplies Services
                                                                              (1)              (2)          (3)

A. At full cost excluding indirect                           xx              xx            xx
  costs attributable to group
  central office expenses.

 B. At full cost including indirect
   costs attributable to group or
  central office expenses.

 C. At established catalog or market
  price or prices based on adequate
  competition.

 Y. Other(s) *

 Z. Interorganizational transfers are
  not applicable

 COST ACCOUNTING STANDARDS BOARD PART II DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet

Item
No. Item Description

2.1.0 Criteria for Determining How Costs are Charged to Federally Sponsored Agreements or Similar Cost Objectives

 For all categories of cost charged to Federally sponsored agreements, including materials and supplies, salaries and wages, fringe benefits, travel, consultants, services, subgrants and subcontracts, and miscellaneous expenses, the University’s policy is to comply with Office of Management and Budget guidance in treating costs as either direct or indirect, according to the purpose and circumstances under which the cost was incurred.

 Direct costs are those costs that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional direct activity; or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Identification with the major activity rather than the nature of the goods and services involved is the determining factor in distinguishing direct from indirect costs.  For instance, salaries and wages may be treated as direct costs or indirect costs depending on whether the employee is performing a direct institutional activity (such as research) or an indirect institutional activity (such as general university administration).

 Academic departments and other organizational units often incur costs for both direct and indirect objectives.  In such departments, when administrative and clerical salaries or other costs are charged directly to sponsored projects, care is exercised to assure that costs incurred for the same purpose in like circumstances are consistently treated as direct costs for all activities of the unit.  This is accomplished through a direct charge equivalent or other mechanism that assigns the costs directly to the appropriate activities, as recommended by the Office of Management and Budget in its memorandum entitled “Direct Charging of Administrative and Clerical Salaries” dated July 13, 1994, attached as Exhibit A, and by the National Institutes of Health in a notice in the NIH Guide dated September 23, 1994, attached as Exhibit B.

 Costs that are normally considered indirect may be treated as direct costs if the purposes and circumstances for which the costs are incurred are different, and they meet all of the following conditions:

(1) The cost is required to be incurred by the project scope;
(2) The cost can be specifically identified to the project; and
(3) The cost is explicitly budgeted in the award.

 COST ACCOUNTING STANDARDS BOARD           PART II DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet

Item
No. Item Description

2.1.0 Criteria for Determining How Costs are Charged to Federally Sponsored Agreements or Similar Cost Objectives  (continued)

When an agency permits rebudgeting for these items, if need arises after award, and the cost meets the first two criteria, the third criteria is not required.
 
 The major functions specific to the reporting unit are identified as direct cost bases in its indirect cost proposals. Separate rates, including on- and off-campus rates when appropriate, are negotiated with the University’s cognizant Federal agency for all major functions that include Federal awards.

 Indirect costs are those costs that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other direct institutional activity, subject to the limitations and exclusions mandated by OMB Circular A-21.

 COST ACCOUNTING STANDARDS BOARD           PART II DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet

Item
No. Item Description

2.2.0 Description of Direct Materials

 Direct materials and supplies are those materials and supplies that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity; or that can be directly assigned to such activities relatively easily with a high degree of accuracy.  Categories of such materials and supplies include, but are not limited to, freight costs, laboratory and other supplies and equipment (non-inventorial), printing supplies, publication costs/page charges, and reference books and periodicals.

 Academic departments and other organizational units often incur materials and supplies costs for both direct and indirect objectives. In such departments, when materials and supplies are charged directly to sponsored projects, care is exercised to assure that costs incurred for the same purpose in like circumstances are consistently treated as direct costs for all activities of the unit.  This is accomplished through a direct charge equivalent or other mechanism that assigns the costs directly to the appropriate activities, as recommended by the Office of Management and Budget in its memorandum entitled “Direct Charging of Administrative and Clerical Salaries” dated July 13, 1994, attached as Exhibit A, and by the National Institutes of Health in a notice in the NIH Guide dated September 23, 1994, attached as Exhibit B.
 

2.3.2 Inventory Requisitions from Central or Common, Institution-owned Inventory

 Inventory requisitions from central inventory are charged to projects based on an average cost per unit which is adjusted whenever new purchases are added to the inventory.  The cost of the new goods (net of discounts taken) is added to the value of the existing inventory and a new average unit cost is determined.  When goods are taken out of inventory, the value of the inventory is reduced based on the average unit cost in effect.

 Requisitions from central inventory are also assessed a surcharge for storage, service and handling in addition to the inventory valuation described above.  The surcharge rate is calculated by dividing the anticipated operating costs of the central inventory unit by the anticipated inventory sales based on the average cost valuation described above. The surcharge rate is recalculated annually, and any surplus or deficit resulting from the application of the prior year’s rate is reflected as a carryforward adjustment to the new rate.

 COST ACCOUNTING STANDARDS BOARD PART II - DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet

Item
No. Item Description

2.4.0 Description of Direct Personal Services

 Direct personal services costs consist of individual faculty, staff and student salaries and wages and associated fringe benefits in proportion to their effort on each direct activity.  Also included as direct personal service costs are overtime, premium pay, shift differential, and remote location allowance paid to non-exempt employees.
 
2.5.0 Method of Charging Direct Salaries and Wages

 Salaries and wages can be charged either (a) by exception or (b) by positive time reporting, depending on job classification.

 (a) By exception:  Salaries and wages for staff with monthly pay are based on the Personnel Action Form (PAF). Payment is made based on the most recent effective PAF data entered into the Payroll Personnel System.

 (b) Positive time reporting: Salaries and wages for temporary and casual staff, students, and others (academics other than faculty) are based on time reports, noting hours worked for each pay period.

 Employees charged in part or in whole to federal or federal flow-through funds must complete after-the-fact activity records (Personnel Activity Report), and make adjustments if significant differences are indicated, as required by A-21, J.8.c.(2)(b).
 

2.5.1 Salary and Wage Cost Distribution Systems

 Employees whose salaries and wages are not directly charged to any Federal funds are not required to complete after-the-fact activity records.  As a rule, the salary and wages of an employee who is not working on sponsored agreements or similar cost objectives are entirely assignable to a single indirect or direct cost objective.  The personal services expenses attributable to such an employee are included in the appropriate indirect cost accumulation pool or direct allocation base along with the other costs of the pool or base, identified through the financial accounting system by function, organization, fund, and account code.  The main exception to the above rule occurs in academic departments and other organizational units when a direct charge equivalent or similar mechanism is used, whereby an equitable portion of the salaries and wages that would otherwise be classified as departmental administration is treated as a direct cost to assure consistent costing treatment for all activities of the unit.
 

2.5.2 Salary and Wage Cost Accumulation System

 Salary and wages (including premium pay) paid by the University to its employees are processed through the University’s payroll system. The following on line systems and forms are used to record salaries and wages in each fund: payroll/personnel systems updates, payroll expense transfers, payroll time reporting, payroll expense reporting, and Personnel Activity Reports (PARs). A specific fund source(s), program purpose(s) and amount(s) of pay must be identified for each individual payment of salaries and wages before processing.  The information accumulated in the payroll system is posted to the general ledger of the University’s financial accounting system.  Payroll costs posted to sponsored projects are recovered through the sponsors as direct costs. The amounts posted to individual federally sponsored projects may be adjusted later based on the information provided in the after-the-fact activity report.

 COST ACCOUNTING STANDARDS BOARD PART II - DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
Item
No. Item Description

2.6.0 Description of Direct Fringe Benefits Costs

 Fringe benefits that are charged to federally sponsored agreements of similar cost objectives are as follows:

         1. Compensated Personal Absences - This includes holidays, sick leave, vacation, sabbatical leave and other paid leaves permitted under UCR policy (e.g., jury duty).
         2. FICA - This is the employer’s portion of the old age, survivor and disability insurance and hospital insurance taxes.
         3. Worker’s Compensation Insurance - The plan covers employee medical expenses and loss of income resulting from work related illness or injury.
         4. Medical Insurance - The UCR paid portion of medical insurance provided to employees includes, health, dental and optical insurance.
         5. Tuition Remission - Graduate student researchers and teaching assistants employed at 25% time or more are eligible to have their partial fees paid. Graduate student researchers employed at 45% time or more are eligible to have their partial fees and non-resident tuition paid.
        6. Life Insurance - Employees are provided life insurance coverage based on an annualized salary until an employee reaches a prescribed age.  Additional life insurance and accidental death and dismemberment insurance is also available at a cost to the employee.
         7. Retirement Programs - Employees that meet specific criteria are eligible to receive contributions to their retirement accounts which include the UCRS retirement program, PERS retirement program and the Teachers Insurance Annuity Association- College Retirement Equities Fund.
         8.   Annuitant Health and Dental Insurance - Provided to retired employees.
         9.   Incentive Award Program -  Awards given to employees for  exceptional performance.
         10. Employee Support Program - Health and welfare programs provided to employees that includes, wellness, accident prevention and safety, and substance and abuse programs.

        The University does not separately classify fringe benefits as direct or indirect costs; rather, the costing treatment of a given employee’s fringe benefits is consistent with, and in proportion to, the costing treatment of that employee’s salary and wages.  Direct fringe benefits costs are those that are attributable to an employee’s direct personal services costs.

 COST ACCOUNTING STANDARDS BOARD           PART II DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet

Item
No. Item Description

2.6.1    Method of Charging Direct Fringe Benefits

 For holidays, sick leave, vacation, other paid leaves permitted under University policy, see section 5.1.0.

 Social security, health insurance, dental insurance, optical insurance, worker’s compensation insurance, unemployment insurance, non-industrial disability insurance, life insurance and tuition/fee remission are measured based on actual cost, assigned to the university fiscal year in which they are accrued, and allocated to direct and/or indirect objectives on a prorated basis consistent with the allocation of the benefiting employee’s salary and wages.

 The retirement plan, incentive award program and employee support program, are measured based on average cost, assigned to salaries of eligible employees in the university fiscal year in which they are accrued, and allocated to direct and/or indirect objectives on a prorated basis consistent with the allocation of the employee’s salary and wages.

 Annuitant health and dental benefits are measured based on average costs, assigned to salaries of current employees, and allocated to direct and/or indirect objectives on a prorated basis consistent with the allocation of the employee’s salary and wages.

 COST ACCOUNTING STANDARDS BOARD PART II DIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet

Item
No. Item Description

2.7.0 Description of Other Direct Costs

 Subcontracts are identifiable specifically with a particular sponsored project or other activity and are for that reason treated as direct costs.

 Advertising for recruitment of personnel, animal care, consultant services, inventorial equipment, laboratory and other testing services, printing and reprographics, professional services, rental of space, repairs/maintenance of equipment, scholarships/student aid, shop services, communication costs (telephone, FAX, cellular service, pagers and mail), travel (domestic and foreign), and vehicle rental costs are treated as direct costs when they can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity; or can be directly assigned to such activities relatively easily with a high degree of accuracy.  Academic departments and other organizational units often incur expenses in these categories for both direct and indirect objectives.  In such departments, when the above mentioned direct costs are charged directly to sponsored projects, care is exercised to assure that costs incurred for the same purpose in like circumstances are consistently treated as direct costs for all activities of the unit.  This is accomplished through a direct charge equivalent or other mechanism that assigns the costs directly to the appropriate activities, as recommended by the Office of Management and Budget in its memorandum entitled “Direct Charging of Administrative and Clerical Salaries” dated July 13, 1994, attached as Exhibit A, and by the National Institutes of Health in a notice in the NIH Guide dated September 23, 1994, attached as Exhibit B.

2.8.0 Cost Transfers

 When Federally sponsored agreements or similar cost objectives are credited for cost transfers to other projects, grants or contracts, the credit amount for direct charges is always based on the same amount or rate originally used to charge or allocate costs to the project.  The credit amount for indirect costs is based on the indirect cost rate in effect at the time of the transfer, which in some instances may differ from the indirect cost rate at the time of the original charge.  The differences, if any, do not result in a material impact on Federal awards.

End of Part II
 

COST ACCOUNTING STANDARDS BOARD     PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679    NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS    University of California, Riverside Campus
 
 

 Instructions for Part III

 Institutions should disclose how the segment's total indirect costs are identified and accumulated in specific indirect cost categories and allocated to applicable indirect cost pools and service centers within each major function or activity, how service center costs are accumulated and "billed" to users, and the specific indirect cost pools and allocation bases used to calculate the indirect cost rates that are used to allocate accumulated indirect costs to Federally sponsored agreements or similar final cost objectives.  A continuation sheet should be used wherever additional space is required or when a response requires further explanation to ensure clarity and understanding.

 The following Allocation Base Codes are provided for use in connection with Items 3.1.0 and 3.3.0.

 A. Direct Charge or Allocation
 B. Total Expenditures
 C. Modified Total Cost Basis
 D. Modified Total Direct Cost Basis
 E. Salaries and Wages
 F. Salaries, Wages and Fringe Benefits
 G. Number of Employees (head count)
 H. Number of Employees (full-time equivalent basis)
 I. Number of Students (head count)
 J. Number of Students (full-time equivalent basis)
 K. Student Hours--classroom and work performed
 L. Square Footage
 M. Usage
 N. Unit of Product
 O. Total Production
 P. More than one base (Separate Cost Groupings) *
 Y. Other(s) *
 Z. Category or Pool not applicable

 COST ACCOUNTING STANDARDS BOARD     PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679   NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS    University of California, Riverside Campus

Item
No. Item Description

3.1.0 Indirect Cost Categories - Accumulation and Allocation.  This item is directed at the identification, accumulation and allocation of all indirect costs of the institution.  (Under the column heading, "Accumulation Method," insert "Yes" or "No" to indicate if the cost elements included in each indirect cost category are identified, recorded and accumulated in the institution's formal accounting system.  If "No," describe on a continuation sheet, how the cost elements included in the indirect cost category are identified and accumulated.  Under the column heading "Allocation Base," enter one of the allocation base codes A through P, Y, or Z, to indicate the basis used for allocating the accumulated costs of each indirect cost category to other applicable indirect cost categories, indirect cost pools, other institutional activities, specialized service facilities and other service centers.  Under the column heading "Allocation Sequence," insert 1, 2, or 3 next to each of the first three indirect cost categories to indicate the sequence of the allocation process.  If cross-allocation techniques are used, insert "CA."  If an indirect cost category listed in this section is not used, insert "NA.")
 

                                                                           Accumulation     Allocation      Allocation
 Indirect Cost Category                                       Method              Base Code      Sequence

 a) Depreciation/Use Allowances/Interest                                                               1
     Building                                                         in part*                       L
     Equipment                                                      in part*                       L
     Capital Improvements to Land*                     in part*                      H+J
     Interest *                                                        in part*                        L

 b) Operation and Maintenance                           yes                               L               2

 c) General Administration and General             yes                               C                3
  Expense

 d) Departmental Administration                         in part*                     C & D

 e) Sponsored Projects Administration                 yes                           Y1

 f) Library                                                             yes                           Y2

 g) Student Administration and Services               yes                              K

 h) Other *                                                             NA

 COST ACCOUNTING STANDARDS BOARD     PART III -INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679    NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS    University of California, Riverside  Campus

Item
No. Item Description

3.2.0 Service Centers.  Service Centers are departments or functional units which perform specific technical or administrative services primarily for the benefit of other units within a reporting unit.  Service Centers include "recharge centers" and the "specialized service facilities" defined in Section J of Circular A-21.  (The codes identified below should be inserted on the appropriate line for each service center listed.  The column numbers correspond to the paragraphs listed below that provide the codes.  Explain on a Continuation Sheet if any of the services are charged to users on a basis other than usage of the services.  Enter "Z" in Column 1, if not applicable.)
                                                                                        (1) (2) (3) (4) (5) (6)
 a) Scientific Computer Operations                                  C   A   C   B   A   B
 b) Business Data Processing                                           C   A   C   B   A   B
 c) Animal Care Facilities                                                C   A   C   B   A   B
 d) Other Service Centers with Annual
 Operating Budgets exceeding $1,000,000
 or that generate significant charges to
 Federally sponsored agreements either as
 a direct or indirect cost.  (Specify below;
 use a Continuation Sheet, if necessary)

   Telecommunications                                                      C   A   C   B   A   B
   Fleet Services                                                                C   A   C   B   A   B
   Mail Services                                                                 C   A   C   B   A   B
   Storehouse                                                                      C   A   C   B   A   B
   Printing & Reprographics                                               C   A   C   B   A   B
   Physical Plant                                                                 C   A   C   B   A   B

 1) Category Code:  Use code "A" if the service center costs are billed only as direct costs of final cost objectives; code "B" if billed only to indirect cost categories or indirect cost pools; code "C" if billed to both direct and indirect cost objectives.
 2) Burden Code:  Code "A" - center receives an allocation of all applicable indirect costs; Code "B" - partial allocation of indirect costs; Code "C" - no allocation of indirect costs.
 3) Billing Rate Code:  Code "A" - billing rates are based on historical costs; Code "B" - rates are based on projected costs; Code "C" - rates are based on a combination of historical and projected costs; Code "D" - billings are based on the actual costs of the billing period; Code "Y" - other (explain on a Continuation Sheet).
 4) User Charges Code:  Code "A" - all users are charged at the same billing rates; Code "B" - some users are charged at different rates than other users (explain on a Continuation Sheet).
 5) Actual Costs vs. Revenues Code:  Code "A" - billings (revenues) are compared to actual costs (expenditures) at least annually; Code "B" - billings are compared to actual costs less frequently than annually.
 6) Variance Code:  Code "A" - Annual variances between billed and actual costs are prorated to users (as credits or charges); Code "B" - variances are carried forward as adjustments to billing rate of future periods; Code "C" -annual variances are charged or credited to indirect costs; Code "Y" - other (explain on a Continuation Sheet).

COST ACCOUNTING STANDARDS BOARD    PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679    NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS             University of California, Riverside  Campus

Item
No. Item Description

3.3.0 Indirect Cost Pools and Allocation Bases

 (Identify all of the indirect cost pools established for the accumulation of indirect costs, excluding service centers, and the allocation bases used to distribute accumulated indirect costs to Federally sponsored agreements or similar cost objectives within each major function or activity.  For all applicable indirect cost pools, enter the applicable Allocation Base Code A through P, Y, or Z, to indicate the basis used for allocating accumulated pool costs to Federally sponsored agreements or similar cost objectives.)

                                                                                                  Allocation
 Indirect Cost Pools                                                                  Base Code

 A. Instruction
  facility & admin pools except SPA                      On-Campus       D
  admin pools except SPA                                      Off-Campus      D
  sponsored project admin (SPA)                           Other *             Y1

 B. Organized Research
 facility & admin pools except SPA                      On-Campus         D
  admin pools except SPA                                     Off-Campus         D
  sponsored project admin (SPA)                          Other *                Y1

 C. Other Sponsored Activities
  facility & admin pools except SPA                      On-Campus         D
  admin pools except SPA                                      Off-Campus         D
  sponsored project admin (SPA)                           Other *                 Y1
 

3.4.0 Composition of Indirect Cost Pools.  (For each pool identified under Items 3.1.0 and 3.2.0, describe on a continuation sheet the major organizational components, subgroupings of expenses, and elements of cost included.)

 COST ACCOUNTING STANDARDS BOARD    PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679    NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS              University of California, Riverside  Campus

Item
No. Item Description
 

3.5.0 Composition of Allocation Bases.  (For each allocation base code used in Items 3.1.0 and 3.3.0, describe on a continuation sheet the makeup of the base.  For example, if a modified total direct cost base is used, specify which of the elements of direct cost identified in Part II, Direct Costs, that are included, e.g., materials, salaries and wages, fringe benefits, travel costs, and excluded, e.g., subcontract costs over first $25,000.  Where applicable, explain if service centers are included or excluded.  Specify the benefiting functions and activities included.  If any cost objectives are excluded from the allocation base, such cost objectives and the alternate allocation method used should be identified.  If an indirect cost allocation is based on Cost Analysis Studies, identify the study, and fully describe the study methods and techniques applied, the composition of the specific allocation base used, and the frequency of each recurring study.
 

3.6.0 Allocation of Indirect Costs to Programs That Pay Less Than Full Indirect Costs.  Are appropriate direct costs of all programs and activities included in the indirect cost allocation bases, regardless of whether allocable indirect costs are fully reimbursed by the sponsoring organizations?

 A. xx    Yes

 B. ____No *
 

 COST ACCOUNTING STANDARDS BOARD           PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

3.1.0 Indirect Cost Categories - Accumulation and Allocation

 Note: except for (a) below, indirect cost expenses are recorded and accumulated as current funds expenses in the University’s financial accounting system. But because the financial accounting system was not created for OMB Circular A-21 and Cost Accounting Standards purposes, some regrouping of the recorded costs is necessary.  For example, University development fundraising activity is recorded by the financial accounting system as Institutional Support (the equivalent of general administrative and general expense), but must be reclassified as Other Institutional Activity to meet Circular A-21 purposes.  Such reclassifications are generally based on attributes found in the financial accounting system data (e.g., financial accounts linked to the Development Office in the foregoing example are reclassified from Institutional Support to Other Institutional Activity).  The reclassified costs are reconcilable to the University’s audited financial statements.

 (a) Depreciation/Use Allowance/Interest:

 Buildings:  A subsystem of the University’s financial accounting system records the capitalized value of buildings, and the Federal contribution to each, by building.  The cost accounting system uses this information to calculate depreciation/use allowance costs in accordance with Section J.12. of OMB Circular A-21.

 Equipment:  The University’s financial accounting system records the category, funding source, and capitalized value of items of equipment.  The cost accounting system uses this information to calculate depreciation/use allowance costs in accordance with Section J.12. of OMB Circular A-21.

 Capital Improvements to Land: The University’s financial accounting system records the capitalized value of improvements to land and other general improvements.  The cost accounting system uses this information to calculate depreciation/use allowance costs in accordance with Section J.12. of OMB Circular A-21.

 Interest: Interest expense on University debt, including State of California capital leases, is included in the University’s financial accounting system.  The University’s prorated share of the State of California General Obligation interest cost is shown on State and University memorandum records.

 (b) Operation and Maintenance:  Costs are identified, recorded and accumulated in the  financial accounting system (but see Note above).

 COST ACCOUNTING STANDARDS BOARD PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

3.1.0 Indirect Cost Categories - Accumulation and Allocation (continued)

 (c) General Administration and General Expense: Costs are identified, recorded and  accumulated in the financial accounting system (but see Note above).

 (d) Departmental Administration:

 The administrative allowance described in Paragraph F.6.a.(2)(a) of OMB Circular A-21 is not recorded in the financial accounting system, but is calculated in the cost accounting system.

 Administrative expenses of deans’ offices are identified in the financial accounting system by department, organization and fund.
 
 Allowable administrative expenses within academic departments and research units are recorded, but not always separately identified, in the financial accounting system.  When these costs are not separately identified, they are accumulated in the cost accounting system using data from the financial accounting system, through a calculation which separates allowable administrative expenses from direct instruction and departmental research expenses.

 (e) Sponsored Project Administration: Costs are identified, recorded and accumulated in the financial accounting system (but see Note above).

 (f) Library: Costs are identified, recorded and accumulated in the financial accounting system (but see Note above).

 (g) Student Administration and Services: Costs are identified, recorded and accumulated in the financial accounting system (but see Note above).

 COST ACCOUNTING STANDARDS BOARD PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

3.2.0 Service Centers

 Explanation for User Charges Code “B” in Column (4): If the operating costs of a service center include costs that are potentially unallowable charges to Federally sponsored agreements, the service center may develop one set of rates for charging Federally supported activities that excludes recovery of such costs, and a second set of rates for charging non-Federally supported activities that includes recovery of such costs.  Alternatively, a single rate may be used, with unallowables refunded at the end of each year.  In addition, service centers may add an overhead burden to the billing rates for non-University customers.

3.3.0 Indirect Cost Pools and Allocation Bases

 For a description of Allocation Base Codes D and Y1, see item 3.5.0 below.

 COST ACCOUNTING STANDARDS BOARD PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

3.4.0. Composition of Indirect Cost Pools

 (a) Depreciation/Use Allowance/Interest:  The expenses under this heading are the portion of the costs of the institution’s buildings, capital improvements to land and buildings, equipment and interest on purchases of capital assets which are computed in accordance with OMB Circular A-21 Sections J.12. and J.22.e.
 
 Buildings:  The University’s financial accounting system records the capitalized value of buildings, and the Federal contribution to each, by building number.  Use allowance expenses are calculated in accordance with Section J.12. of OMB Circular A-21.

 Equipment:  The University’s equipment management system records the category, funding source and capitalized value of items of equipment.  Equipment not purchased with Federal funds is depreciated on a straight-line basis according to useful life tables developed by the University.

 Capital Improvements to Land:  A use allowance of 2% of the non-Federal cost of capital improvements is taken.

 Interest:  Only interest allowable under the provisions of OMB Circular A-21 Section J.22.e. is included in indirect cost.  Interest expense on University debt, including State of California capital leases, is included in the University’s financial accounting system.  The University’s prorated share of the State of California General Obligation interest cost is shown on State and University memorandum records.

 (b)  Operation and Maintenance:  The expenses under this heading are indirect costs (see Part II for the distinction between direct and indirect costs) that have been incurred for the administration, maintenance, preservation, and protection of the institution’s physical plant.  They include expenses normally incurred for such items as janitorial and utility services; repairs and ordinary or normal alterations of buildings, furniture and equipment; care of grounds; maintenance and operation of buildings and other plant facilities; security; earthquake and disaster preparedness; environmental safety; hazardous waste disposal; property, liability and all other insurance relating to property; space and capital leasing, facility planning and management; and, central receiving.  The operation and maintenance expense category includes its allocable share of depreciation and use allowances and interest costs. Operation and maintenance expenses are recorded in the financial accounting system by function, account, department, and object code.

 COST ACCOUNTING STANDARDS BOARD           PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

3.4.0. Composition of Indirect Cost Pools (continued)

 (c)  General Administration and General Expense:  The expenses under this heading are indirect costs (see Part II for the distinction between direct and indirect costs) that have been incurred for the general executive and administrative offices of the institution and other expenses of a general character, plus their allocable share of depreciation and use allowances, interest, and operation and maintenance expenses.  General administration and general expense are recorded in the financial accounting system by function, account and department.

 (d) Departmental Administration:  The expenses under this heading are indirect costs (see Part II for the distinction between direct and indirect costs) that have been incurred for administrative and supporting services that benefit common or joint departmental activities or objectives in academic deans’ offices, academic departments and divisions, organized research units, institutes, study centers, and research centers, subject to the limitations and exclusions in OMB Circular A-21, F.6.a. and F.6.b., including the special rules regarding treatment of salary and fringe benefits attributable to administrative work of faculty and other professionals.  Departmental Administration includes an allocable share of depreciation and use allowances, interest, operation and maintenance, and general administration and general expense.  Administrative expenses of deans’ offices are identified in the financial accounting system by organization, account and fund; such expenses are allocated to the academic departments or research units overseen by the dean on the basis of modified total cost.  Administrative expenses within academic departments and research units, when not separately identified in the financial accounting system, are accumulated through the direct charge equivalent (DCE) calculation with a clear audit trail which separates allowable administrative expenses from direct instruction and departmental research expenses.

 (e)  Sponsored Project Administration:  The expenses under this heading are limited to those indirect costs (see Part II for the distinction between direct and indirect costs) incurred by a separate organization(s) established primarily to administer sponsored projects, including such functions as grant and contract administration (Federal and non-Federal), special security, purchasing, personnel administration, and editing and publishing of research and other reports.  They include salaries, benefits and expenses of the head of such organization, assistants and immediate staff, together with the salaries, benefits and expenses of personnel engaged in supporting activities of such organization, plus an allocable share of depreciation and use allowances, interest, operation and maintenance, and general administration and general expense.
 

 COST ACCOUNTING STANDARDS BOARD           PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

3.4.0. Composition of Indirect Cost Pools (continued)

 (f) Library:  The expenses under this heading are indirect costs (see Part II for the distinction between direct and indirect costs) that have been incurred for the operation of the library, including the cost of books and library materials purchased for the library, less applicable credits, plus an allocable share of depreciation and use allowances, interest, operation and maintenance, and general administration and general expense.  Library expenses are identified in the financial accounting system by function and department.

 (g) Student Administration and Services:  The expenses under this heading are indirect costs (see Part II for the distinction between direct and indirect costs) that have been incurred for the administration of student affairs and for services to students, including expenses of such activities as deans of students, admissions, registrar, counseling and placement services, student advisers, student health and infirmary services, catalogs, and commencements and convocations, plus an allocable share of depreciation and use allowance, interest, operation and maintenance, general administration and expense, and department administration.  Student administration and services are identified in the financial accounting system by function, department and account.
 

3.5.0 Composition of Allocation Bases

 C - Modified Total Cost Basis. All salaries and wages, fringe benefits, materials and supplies, services, travel, and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract are included.  Equipment, capital expenditures, charges for tuition remission, rental costs, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000 are excluded.  Other items are excluded where necessary to avoid a serious inequity in the distribution of indirect costs.  Service centers are included.
 
 D - Modified Total Direct Cost Basis.  All direct salaries and wages, fringe benefits, materials and supplies, services, travel, and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract are included.  Direct equipment, capital expenditures, tuition remission, rental costs, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000 are excluded. Other direct costs are excluded where necessary to avoid a serious inequity in the distribution of indirect costs. Service centers are included.

 COST ACCOUNTING STANDARDS BOARD           PART III INDIRECT COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside Campus

Continuation Sheet
 

Item
No. Item Description

3.5.0 Composition of Allocation Bases (continued)

 H+J - Employees plus Students, full-time equivalent basis.  The amount allocated to the employee category is further allocated to the major functions of the University in proportion to the salaries and wages of all employees applicable to those functions.  The amount allocated to the student category is assigned to the instruction function of the University.

 K - Student Hours.  Classroom and work performed.  All student classroom hours are classified as instruction hours.  Work hours are classified as instruction, research, other sponsored projects, or other institutional activities based on the work performed.  The ratio of hours classified to each of the direct functions is used to allocate the student administration and services cost pool with costs analogous to employee fringe benefits.  Other student administration and services costs deemed to benefit only instruction, e.g. convocation costs, are pooled separately and allocated only to the instruction function.

 L - Square Footage.  All usable square footage of benefiting direct and indirect activities is included. Common areas such as hallways, stairwells and restrooms are excluded.  The square footage of a given room is assigned to direct and indirect cost objectives based on a survey of the space usage of the room during the fiscal year or, in the absence of survey data, based on salaries and wages.

 Y1 - Sponsored Project Administration costs are allocated to benefiting direct cost functions based on the modified total direct cost of sponsored agreements in each direct cost function.

 Y2 - Library costs are allocated to the direct cost functions of instruction, research, other sponsored projects and other institutional activities based on the number of employees and students, and on the salaries and wages of employees.
 

End of Part III

 COST ACCOUNTING STANDARDS BOARD    PART IV DEPRECIATION AND USE ALLOWANCES
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679    NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS     University of California, Riverside  Campus

Part IV

Item
No. Item Description

4.1.0 Depreciation Charged to Federally Sponsored Agreements or Similar Cost Objectives.  (For each asset category listed below, enter a code from A through C in Column (1) describing the method of depreciation; a code from A through D in Column (2) describing the basis for determining useful life; a code from A through C in Column (3) describing how depreciation methods or use allowances are applied to property units; and Code A or B in Column (4) indicating whether or not the estimated residual value is deducted from the total cost of depreciable assets.  Enter Code Y in each column of an asset category where another or more than one method applies.  Enter Code Z in Column (1) only, if an asset category is not applicable.)
                                                               Depreciation     Useful     Property     Residual
 Asset Category                                      Method              Life        Unit            Value
                                                               (1)                     (2)          (3)              (4)
 (a) Land Improvements                          C                        D            A                B
 (b) Buildings                                         C                          D           A                 B
 (c) Building Improvements                     C                          D           A                 B
 (d) Leasehold Improvements                 C                          D             A                 B
 (e) Equipment (Moveable)                     A                          C           A                A
 (f) Furniture and Fixtures                     B & A                    C           A                   A
 (g) Automobiles and Trucks                     A                       C           A                    A
 (h) Tools                                             B & A                     C           A                     A
 (i) Enter Y on this line                             Z
 if other asset categories
 are used and enumerate
 on a continuation sheet
 each such asset category
 and the applicable codes.
 Otherwise enter Code Z.

Column (1)-Depreciation Method Code        Column (2)-Useful Life Code
A. Straight Line                                        A. Replacement Experience
B. Expensed at Acquisition                       B. Term of Lease
C. Use Allowance                                     C. Estimated service life
Y. Other or more than one method *          D. As prescribed for use allowance by Office of
                                                                        Management and Budget Circular No. A-21
                                                                 Y. Other or more than one method *

Column (3)-Property Unit Code Column (4)-Residual Value Code
A. Individual units are accounted for separately A. Residual value is deducted
B. Applied to groups of assets with similar service lives B. Residual value is not deducted
C. Applied to groups of assets with varying service lives Y. Other or more than one method *
Y. Other or more than one method *

* Describe on a Continuation Sheet

 COST ACCOUNTING STANDARDS BOARD    PART IV DEPRECIATION AND USE ALLOWANCES
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679    NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS     University of California, Riverside  Campus

Item
No. Item Description

4.1.1 Asset Valuations and Useful Lives.  Are the asset valuations and useful lives used in your indirect cost proposal consistent with those used in the institution's financial statements?  (Mark one.)
 A. xx   Yes*
 B.        No

4.2.0 Fully Depreciated Assets.  Is a usage charge for fully depreciated assets charged to Federally sponsored agreements or similar cost objectives?  (Mark one.  If yes, describe the basis for the charge on a continuation sheet.)
 A. _____Yes
 B. xx      No

4.3.0 Treatment of Gains and Losses on Disposition of Depreciable Property.  Gains and losses are:  (Mark the appropriate line(s) and if more than one is marked, explain on a continuation sheet.)

 A. xx      Excluded from determination of sponsored agreements costs
 B. _____ Credited or charged currently to the same pools to which the depreciation of the assets was originally charged
 C. _____ Taken into consideration in the depreciation cost basis of the new items, where trade-in is involved
 D. _____ Not accounted for separately, but reflected in the depreciation reserve account
 Y. _____ Other(s) *
 Z. _____ Not applicable

4.4.0 Criteria for Capitalization.  (Enter (a) the minimum dollar amount of expenditures which are capitalized for acquisition, addition, alteration, donation and improvement of capital assets, and (b) the minimum number of expected life years of assets which are capitalized.  If more than one dollar amount or number applies, show the information for the majority of your capitalized assets, and enumerate on a continuation sheet the dollar amounts and/or number of years for each category or subcategory of assets involved which differs from those for the majority of assets.)

 A. Minimum Dollar Amount $500 for moveable equipment
 B. Minimum Life Years  2

4.5.0 Group or Mass Purchase.  Are group or mass purchases (initial complement) of similar items, which individually are less than the capitalization amount indicated above, capitalized?  (Mark one.)
 A.   Yes
 B. xx         No

* Describe on a Continuation Sheet

COST ACCOUNTING STANDARDS BOARD    PART IV DEPRECIATION AND USE ALLOWANCES
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679    NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS     University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

4.1.1 Asset valuations are consistent with those used in the institution’s financial statements; however, the University does not report depreciation on its financial statements nor is it required to under GASB rules.

4.3.0 Since the University does not report depreciation on its financial statements, gains and losses on disposition of depreciable property are not recognized in the financial accounting system.  The actual gains and losses experienced by the University do not impact sponsored agreements costs.

4.4.0 Moveable equipment is capitalized if the per-item cost (or fair market value if donated) is $500 or more, and its useful life is two years or more.  There is no minimum dollar threshold for capitalization of other assets; however, other assets must have a useful life of two years or more to be capitalized.

 
End of Part IV

 COST ACCOUNTING STANDARDS BOARD    PART V OTHER COSTS AND CREDITS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679    NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS      University of California, Riverside  Campus

Part V
 

Item
No.  Item Description

5.1.0 Method of Charging Leave Costs.  Do you charge vacation, sick, holiday and sabbatical leave costs to sponsored agreements on the cash basis of accounting (i.e., when the leave is taken or paid), or on the accrual basis of accounting (when the leave is earned)?  (Mark applicable line(s))

 A. x     Cash *

 B. x     Accrual *
 

5.2.0 Applicable Credits.  This item is directed at the treatment of "applicable credits" as defined in Section C of Circular A-21 and other incidental receipts (e.g., purchase discounts, insurance refunds, library fees and fines, parking fees, etc.).  (Indicate how the principal types of credits and incidental receipts the institution receives are usually handled.)
 

 A. _____ The credits/receipts are offset against the specific direct or indirect costs to which they relate.

 B. _____ The credits/receipts are handled as a general adjustment to the indirect pool.

 C. _____ The credits/receipts are treated as income and are not offset against costs.

 D. xx       Combination of methods *

 Y. _____ Other *
 
 

 COST ACCOUNTING STANDARDS BOARD    PART V OTHER COSTS AND CREDITS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679    NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS     University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

5.1.0 Method of Charging Leave Costs

 Vacation leave costs are charged on the accrual basis of accounting.  All other leave costs, including sick, holiday, sabbatical and jury duty are charged on the cash basis of accounting.  However, sabbatical leave costs are not charged to sponsored agreements.

5.2.0 Applicable Credits

 All discounts, rebates or allowances are offset against the specific direct or indirect costs to which they relate.  In some circumstances certain types of income are appropriately treated as an applicable credit for indirect cost computations.  In such circumstances a general adjustment is made to the appropriate cost pool.
 
 

End of Part V

 COST ACCOUNTING STANDARDS BOARD  PART VI DEFERRED COMPENSATION AND INSURANCE COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679   NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

 Instructions for Part VI

 This part covers the measurement and assignment of costs for employee pensions, post retirements benefits other than pensions (including post retirement health benefits) and insurance.  Some organizations may incur all of these costs at the main campus level or for public institutions at the governmental unit level, while others may incur them at subordinate organization levels.  Still others may incur a portion of these costs at the main campus level and the balance at subordinate organization levels.

 Where the segment (reporting unit) does not directly incur such costs, the segment should, on a continuation sheet, identify the organizational entity that incurs and records such costs.  When the costs allocated to Federally sponsored agreements are material, the reporting unit should require that entity to complete the applicable portions of this Part VI.  (See item 4, page (i), General Instructions)

Item
No. Item Description

6.1.0 Pension Plans.

6.1.1 Defined-Contribution Pension Plans.  Identify the types and number of pension plans whose costs are charged to Federally sponsored agreements.  (Mark applicable line(s) and enter number of plans.)

 Type of Plan                                                                 Number of Plans

A.     Institution employees                                                     0
  participate in State/Local
  Government Retirement Plan(s)

B.  x     Institution uses TIAA/CREF plan                              2
  or other defined contribution
  plan that is managed by an
  organization not affiliated
  with the institution

C. x     Institution has its own
  Defined-Contribution Plan(s)                                                2
 

6.1.2 Defined-Benefit Pension Plan.  (For each defined-benefit plan (other than plans that are part of a State or Local government pension plan) describe on a continuation sheet the actuarial cost method, the asset valuation method, the criteria for changing actuarial assumptions and computations, the amortization periods for prior service costs, the amortization periods for actuarial gains and losses, and the funding policy.)

 COST ACCOUNTING STANDARDS BOARD  PART VI DEFERRED COMPENSATION AND INSURANCE COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679   NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Item
No. Item Description

6.2.0 Post Retirement Benefits Other Than Pensions (including post retirement health care benefits) (PRBs).  (Identify on a continuation sheet all PRB plans whose costs are charged to Federally sponsored agreements.  For each plan listed, state the plan name and indicate the approximate number and type of employees covered by each plan.)

 Z. [ ] Not applicable
 

6.2.1 Determination of Annual PRB Costs.  (On a continuation sheet, indicate whether PRB costs charged to Federally sponsored agreements are determined on the cash or accrual basis of accounting.  If costs are accrued, describe the accounting practices used, including actuarial cost method, the asset valuation method, the criteria for changing actuarial assumptions and computations, the amortization periods for prior service costs, the amortization periods for actuarial gains and losses, and the funding policy.)
 

6.3.0 Self-Insurance Programs (Employee Group Insurance).  Costs of the self-insurance programs are charged to Federally sponsored agreements or similar cost objectives:  (Mark one.)

 A. ____ When accrued (book accrual only)
 B. ____ When contributions are made to a nonforfeitable fund
 C. ____ When contributions are made to a forfeitable fund
 D. ____ When the benefits are paid to employee
 E. xx   When amounts are paid to an employee welfare plan
 Y. ____ Other or more than one method *
 Z. ____ Not Applicable
 

6.4.0 Self-Insurance Programs  (Worker's Compensation, Liability and Casualty Insurance.)
 

6.4.1 Worker's Compensation and Liability.  Costs of such self-insurance programs are charged to Federally sponsored agreements or similar cost objectives:  (Mark one.)

 A. ____ When claims are paid or losses are incurred (no provision for reserves)
 B. ____ When provisions for reserves are recorded based on the present value of the liability
 C. ____ When provisions for reserves are recorded based on the full or undiscounted value, as contrasted with present value, of the liability
 D.  xx    When funds are set aside or contributions are made to a fund
 Y. ____ Other or more than one method *
 Z. ____ Not Applicable

 COST ACCOUNTING STANDARDS BOARD PART VI DEFERRED COMPENSATION AND INSURANCE COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679   NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Item
No.  Item Description

6.4.2 Casualty Insurance.  Costs of such self-insurance programs are charged to Federally sponsored agreements or similar cost objectives:  (Mark one.)

 A. ____ When losses are incurred (no provision for reserves)

 B. ____ When provisions for reserves are recorded based on replacement costs

 C. ____ When provisions for reserves are recorded based on reproduction costs new less observed depreciation (market value) excluding the value of land and other indestructibles.

 D. ____ Losses are charged to fund balance with no charge to contracts and grants (no provision for reserves)

 Y. ____ Other or more than one method *

 Z.  xx      Not Applicable
 

 COST ACCOUNTING STANDARDS BOARD  PART VI DEFERRED COMPENSATION AND INSURANCE COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

6.1.1    Defined Contribution Plans

         The University offers eligible employees a tax-deferred retirement plan described under section 401(a) of the Internal Revenue Code.  The 401 (a) plan features separate accounts for non-elective pretax contributions and elective after-tax contributions.  The University also offers eligible employees a tax-deferred retirement plan described under section 403(b) of the Internal Revenue Code.  Contributions to the 403 (b) program are made on a pretax basis and participation in the plan is voluntary.
 

6.1.2 Defined-Benefit Pension Plan

 Actuarial cost method(s):  Actuarial cost is determined using different actuarial methodologies to satisfy different reporting and disclosure standards. They are:

      (1) For funding: Normal cost and Actuarial Accrued Liability-Entry Age Normal

      (2) For determining GASB 5-Pension Benefit Obligation:  Projected Unit Credit

      (3) For determining the FASB 35-ABO:  Unit Credit

 Asset valuation method:  Actuarial value of assets is determined using the adjusted market value method -- the expected market value plus investment gains/losses amortized over a five-year period. On July 1, 1994, the University set the actuarial value of assets equal to the market value of assets.

 Criteria for changing actuarial assumptions and computations:  Past experience trends and future expectations are considered and are periodically reviewed by The Regents and the trustees of the UC Retirement Plan.  Currently the following assumptions are used:

Economic assumptions: investment return; annual rates of increase in salaries (inflation component plus merit and promotion component); consumer price index.

Demographic assumptions: mortality (1983 Group Mortality Table set back two years); termination rates, based on plan experience; disability rates, based on plan experience; disabled mortality, 1987 Group Long Term Disability Table; retirement; form of benefit payment; percentage married; spouse ages, wives 3 years younger than husbands; number of dependents of married members; refund probability; future service for part-time employees; entry age; administrative expenses.

 COST ACCOUNTING STANDARDS BOARD  PART VI DEFERRED COMPENSATION AND INSURANCE COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

6.1.2 Defined-Benefit Pension Plan (continued)
 
 Amortization periods for prior service costs:  Currently there are no prior service costs to be amortized.

 Amortization periods for actuarial gains and losses:  Currently there is no amortization of actuarial gains and losses.

Funding Policy: The Regents' funding policy provides for actuarially determined periodic contributions at rates that provide for sufficient assets to be available when benefits are due, measured in line with the tax-deductible contribution limits set forth in IRC Sec. 412. The contribution rate is determined using the entry age normal actuarial funding method. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation.
 

 COST ACCOUNTING STANDARDS BOARD  PART VI DEFERRED COMPENSATION AND INSURANCE COSTS
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679 NAME OF REPORTING UNIT
EDUCATIONAL INSTITUTIONS University of California, Riverside  Campus

Continuation Sheet
 

Item
No. Item Description

6.2.0 Post Retirement Benefits Other Than Pensions

 Medical and dental insurance benefits are provided as post retirement benefits other than pension at the University of California.  As of October 1997, these benefi