Effective April 18, 2022, establishment of a new 3E self-supporting fund will require the individual responsible for financial management (Financial Manager) and the individual responsible for calculating the applicable service rates (Rate Calculation Contact) to receive service activity training and certification prior to the establishment of the new 3E self-supporting fund.
Here is Why
One of the reasons for this new requirement is that service center costs are receiving more scrutiny and are being included in federal audit plans. Our universities must comply with federal costing principles as well as state and university guidelines for service centers. Service center managers must familiarize themselves with policies, procedures, and regulations they are required to follow when operating service centers. System Government Costing establishes and administers training for service center personnel to assist units with maintaining compliance.
The Service Activity Basics (SAB) Certificate Course and Service Activity Advanced (SAA) courses together provide a solid foundation for rate calculations and managing a 3E fund. Proper training will contribute to our service centers maintaining compliance with the various rules and regulations for 3E funds. Financial Managers and Rate Calculation Contacts with existing 3E funds are strongly encouraged to complete both the SAB and SAA courses if they have not done so already.
Service Activity Basics Certificate Course
The Financial Manager and the Rate Calculation Contact must complete and pass the web-based training program, Service Activity Basics Certificate Course prior to the establishment of a new 3E self-supporting fund. This self- paced course is an active program designed to provide information and training related to performing service and storeroom rate calculations, including specific rate requirements, rate components, and considerations related to compiling service rates. It only takes 3-4 hours to complete the entire program.
Service Activity Advanced Certificate Track
The Rate Calculation Contact will also be required to complete the Service Activity Advanced Certificate Track within 6 months of the establishment of the new 3E self-supporting fund. SAA is multi-session, cohort-based, instructor-led training that builds on the prerequisite SAB course. Participants will walk through rate calculation steps, including retrieving data, populating the rate calculation templates, and hands-on experience with allocations. The course includes advanced topics such as the adjusted fund balance, over/under recovery calculation, external rates, and subsidies. SAA cohorts will be offered on a regular basis to allow personnel to comply with this requirement.
What You Need to Do
University Accounting and Financial Reporting (UAFR) has added a section to the SSF Attestation Statement tab of the Banner Fund, Program, Index Code Request Form (which is located at https://www.obfs.uillinois.edu/forms/accounting-financial-reporting/) that will require the Financial Manager and Rate Calculation Contact to attest that they have both completed the SAB.
UAFR will confirm with System Government Costing that the appropriate individuals have completed the SAB course prior to establishing the fund. This new section also requires attestation from the Rate Calculation Contact that they agree to complete the SAA within 6 months of the 3E fund being established.
Contact
Please contact System Government Costing with any questions.
