Year-End Transfers for Auxiliary & Service Enterprises (AES)
Summarizes requirements for year-end transfers from AES Operating Funds to Asset Acquisition Funds (AAF) or Reserve Funds, based on Campus Policies 300-66/66B, UC Accounting Manuals, and UC BFB A-59.
1. Funding Rules
Capital Equipment (≥ $5,000)
- Tangible property > 1-year useful life and ≥ $5,000 (including tax/shipping)
- Must be purchased from the AAF
- Includes large instruments, vehicles, specialized machinery, software ≥ $5,000, completed fabrications
- Useful life per AMS
Operating Equipment (< $5,000)
- Tangible property under $5,000
- Charged to AES Operating Fund
- May use a COSSA-approved Activity Code for tracking
- Annual transfers required to cover Activity Code expenses
Software
- Capitalized software (≥ $5,000 and < $5M): charge to AAF using account 803141 + project code/PO tracking; depreciated over 36 months or COSSA-approved period
- Not capitalized (charge to Operations): internal development, modifications, training, non-capital components
Fabricated Equipment
- Entirely managed in AAF
- Requires Fabrication Number; all costs captured in AAF
- Request property tag upon completion
- If fabrication is not successful: notify Equipment Management, request expenditure transfer back to Operations, close fabrication
2. Annual Year-End Transfers
Depreciation Transfers
- Required annually from Operations to AAF
- Covers depreciation for all AES capital equipment and capitalized software
- Based on AMS useful life
- Use May 31 AMS inventory for June 30 transfers
Transfers for Facility Improvements (Optional)
- For major repairs, renovations, or upgrades
- Requires COSSA approval
- Funds transferred to AES Reserve Fund
3. Documentation Requirements
Departments should maintain:
- Depreciation schedules, AMS reports, and backup for transfer calculations
- Proof equipment/software was purchased from AAF
- Project Codes or PO documentation for software
- COSSA approval for Activity Code use
- Records of fabrication costs, tags, or closure actions
Forms
- Svc & Aux (Transfer to Asset Acq for Capital Equipment)
- Svc & Aux (Transfer to Asset Acq for Software)
4. Why Are Transfers Required?
- Recover capital costs over time
- Maintain accurate equipment valuation
- Support long-term financial sustainability of self-supporting units
- Align with UC capital financing standards
- Plan for future capital needs
Quick Reference Checklist
Before May 31
☐ Update AMS equipment list
☐ Confirm all capital/software charged to AAF
☐ Verify fabrication status
June
☐ Calculate annual depreciation
☐ Complete transfer forms
☐ Process transfers by June 30
If using Activity Codes for operating equipment
☐ Confirm COSSA approval
☐ Review actual expenses
☐ Process transfer from Operations
Fabrications
☐ Ensure all costs captured in AAF
☐ Request property tag or close unsuccessful fabrications