In limited situations, a third party may make a payment to reimburse UCSF for an employee's time. Often referred to as recoveries, examples of these payments include reimbursements for:
- Employee attendance at a union meeting
- Employee attendance at an event during work hours
- Employee assistance related to an event
Because another entity is paying for this portion of an employee's salary, payments need to be tracked and recorded separately as a reduction in expense to avoid overstating total expenses. Account 57842 (Recovery - employee salaries) has been created to standardize the recording of these payments.
A cash receipt journal (Source Code 320) should be used to record the payment as follows:
- Source Code: 320
- Debit Account: 10110 (or other approved account)
- Credit Account: 57842 + the remainder of your chartstring
Consult Cash Receipt (320) and Credit Card (323) Journals for additional guidance on journal entry requirements.
Any payments accepted must comply with University Policy PPSM-82: Conflict of Interest (see also May 11, 2017 guidance on Acceptance of Personal Gift and Gratuities by Employees Under California’s Political Reform Act).
These transactions are separate from honorarium payments which are covered under Campus Administrative Policy 300-29: Honoraria and may be considered compensation to the employee.
If you have any questions, please contact General Accounting at [email protected].