ctcLink Accounting Manual | 40.20.30 Inter-Agency Services Provided and Used (Revolving Funds & System IT Charges)

40.20.30 Inter-Agency Services Provided and Used (Revolving Funds & System IT Charges)

The term “Revolving Funds” is used to refer to selected central services charges funded by state appropriations. The legislative budget authorizes selected agencies to provide internal services within the state but the appropriations are provided to the agencies receiving the services.

Since it is not known how much each college might use central services throughout the year, the State Board pays for the services throughout the year using the appropriations provided.  At the end of the year, State Board distributes the charges to the college based a pre-determined formula.

The following central service agencies and services require the use of unique expenditure accounts paid by the State Board (and distributed to the colleges at year-end):

Agency Services

Office of the Secretary of State

Archives, records storage, and microfilm services

Office of the State Auditor

Auditing services

Office of the Attorney General

Legal services

Department of Enterprise Services

Office space, janitorial services, utilities, buildings and grounds maintenance, campus delivery and mail service, parking, motor pool, procurement, mainframe print services, web services, secure file services, risk management, printing, small agency budgeting/accounting/human resources/payroll services, and personnel services for general government classified employees

Office of Administrative Hearings

Administrative hearings examiner services

Office of Financial Management

Statewide financial and payroll systems, personnel services for state agency classified employees, higher education classified employees, and Statewide Accounting, Budgeting, and Forecasting

Office of Minority and Women's Business Enterprises (OMWBE)

Certification of minority business enterprises, socially and economically disadvantaged business enterprises, and women's business enterprises statewide

Consolidated Technology Services

Computer and telecommunication services

A similar process is used for System IT costs.  The State Board pays for the cost of some ctcLink support staff with state appropriations throughout the year. The charges are then distributed to the colleges at the year-end with special instructions provided by the State Board.

40.20.30.1 Recording Revolving Funds & System IT Charges

At fiscal year end the State Board will reverse the revolving funds & system IT charges in its accounting records.  SBCTC operating budget staff will prepare an allocation schedule showing the distribution and accounts to be used to record the charges in the college accounting records. . Only one journal is required with two elements:

Step 1

Since these are expenditures already paid for by the State Board, ctcLink colleges should record the expenditure as directed in the Allocation Memo using the following procedures.

  • Create a Journal Entry using a Journal Source RVL – Revolving & System IT Alloc
  • Debit expenditures as noted on the Allocation Memos sent out by Operating Budget staff and credit internal cash (1000199). Colleges may record the expenditure in any department less than 98000.
  • The use of Journal Source RVL will exclude these expenditures from the State Reimbursement Request report.

Step 2

In the same journal colleges should also record a debit to cash internal cash (1000199) and a credit to State Allocation Revenue (4100010) in 841-285-98499 for the total amount of System IT and Revolving Funds distribution based on the allocation schedule.

Do not request these funds from the Treasurer!

40.20.20 Inter-Agency Services Provided and Used << 40.20.30>> 40.20.40 Intercollege Reimbursements