Financial Compliance
Overview

Every employee who conducts transactions that affect UC funds must comply with applicable policies, laws, regulations, and special restrictions.  To ensure such compliance, each administrative official must be aware of and comply with the following principles and responsibilities.

Principles
  1. Individuals conducting business transactions shall personally face punitive action resulting from blatant violations of policies, laws, regulations, or restrictions affecting the conduct of those transactions.
  2. Anyone who is aware of fraudulent or illegal business transactions conducted in the name of UC shall report them immediately.
  3. Each unit is responsible for the restitution of any disallowance due to noncompliance with policies, laws, regulations, or special restrictions. In certain circumstances, such restitution may be wholly or partially mitigated by higher authorities within the organization.
  4. Employees conducting UC business transactions are responsible for keeping up to date with changing policy, legal and regulatory requirements.
  5. Policy, legal and regulatory requirements, as well as any donor-imposed restrictions, shall be maintained on record with UC and be readily accessible.
Responsibilities

Financial reporting in compliance with regulatory requirements includes the following.

  1. In accordance with Generally Accepted Accounting Principles (GAAP); the basic requirements of these standards as applied at UC ANR are:
  • Sources and uses of funds must be aggregated by the type of activity they support, and in accordance with any restriction imposed on their use.
  • Revenue is reported when earned, and expenditures are reported when goods or services are received.
    • In general, revenue is earned when UC provides goods or services. For example, on a cost-reimbursed research grant, revenue is earned as the costs are incurred for the conduct of the research.
    • Expenses are incurred as UC uses goods or services. For example, when laboratory supplies are received, UC incurs the expense.  Holding an invoice does not prevent the expense from being incurred.
  • Accounting principles must be applied consistently, both within fiscal years and between fiscal years. Central administrative support units review financial information to ensure consistent, UC-wide application of these accounting principles.
  • Transactions are classified and recorded consistently.
  • Revenue and expense must be recorded in the proper accounting period.
  1. Reporting to sponsoring entities in accordance with their specific requirements; federal agencies and entities that serve as conduits for federal funds require adherence to either Office of Management and Budget (OMB) Circulars (see https://nifa.usda.gov/program/capacity-grants and https://nifa.usda.gov/sites/default/files/resource/NIFA_policy_gde_Oct_2014.pdf) and/or Federal Acquisition Regulations (FAR). The primary circular is “OMB Uniform Guidance: Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,” commonly referred to as the Omni Circular.
  2. Making all financial reporting systems open to regular internal and external audits; external auditors must be cleared and coordinated by the UC ANR Financial Services Director.

For more information contact the Financial Services Director.