Post on 01-Jan-2016
description
Effective: May 1, 2009
Financial Policies Training:Non-Monetary Exchanges (2.1.12)
These PowerPoint slides are intended
for training purposes. In the event
of any discrepancy or interpretation
difference between the policy and
the slides, the policy dictates.
Topics:
What are non-monetary exchanges?
Why is a policy needed?
What are the policy requirements?
What types of exchange agreements can UC enter into?
What is needed for accounting purposes?
Non-Monetary Exchanges (2.1.12)
What are non-monetary exchanges?
The exchange of goods, services or use of fixed assets
for other
goods, services or use of fixed assets
Can be similar or dissimilar
Also called “barter transactions”
Non-Monetary Exchanges (2.1.12)
Why is a policy needed?
To ensure appropriate
Approvals
Accounting
Value to UC
Non-Monetary Exchanges (2.1.12)
What are the policy requirements?
Business purpose
Equal value
ApprovalExchange valued < $1000
Dean/org unit head
In writing
Exchange valued ≥ $1000Purchasing; in conjunction with General Counsel if needed
No pyramiding to bypass this approval
Non-Monetary Exchanges (2.1.12)
What types of exchange agreements can UC enter into?
UC can provide services to another entity in exchange for goods, services or use of fixed assets
UC can provide use of fixed assets to another entity in exchange for goods, services or use of fixed assets
Non-Monetary Exchanges (2.1.12)
What is needed for accounting purposes?
Fair market valuation of the goods, services or use of fixed assets
All documentation to Controller’s Office
Non-Monetary Exchanges (2.1.12)
Non-Monetary Exchanges (2.1.12): Resources
Financial Policies web site:www.uc.edu/af/policies
The Policy (2.1.12): www.uc.edu/af/documents/policies/nonmonetary.pdf
Policy questions e-mail: policyquestions@uc.edu