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