Entity Coding
What is an entity code?
- An entity code is a Banner attribute value used to identify/distinguish equipment purchased on institutional funds (i.e. ICR, Gift, etc.) directly used in 3E self-supporting activities. The entity code should be blank if the equipment is not used in a self-supporting activity.
Why do entity codes matter?
- Depreciation expense is a major expense for many self-supporting activities. If an asset is used in a self-supporting fund and is not properly entity coded, then the depreciation expense cannot be included in the rates billed to customers. Therefore, the service center may lose out on the opportunity to recover expenses that may assist with future equipment replacement.
- Equipment purchased with self-supporting funds is automatically assigned an entity code by UPAR. However, if the equipment is purchased with non-self-supporting funds (i.e. ICR, Gift, etc.) an entity code is not assigned.
- If the service center directly uses the equipment in the service and wants to recover the depreciation in its rates, it must contact UPAR and ask them to assign entity code, after confirming with System Government Costing that the asset was not included in the most recent F&A rate study. If the service center does not plan on including the asset depreciation in their rate calculations, an entity code should not be assigned to the asset.
- When the F&A rate study is performed, entity codes are used to determine what equipment should be included. If the equipment was included in the most recent F&A rate study, then the service cannot include that depreciation expense throughout the effective period of the current F&A rates.
How do I review my department's entity codes?
- Report templates and job aids are available on the OBFS site for System Government Costing, located here. You will find them by expanding the Business Objects Webi report templates and Rate calculation Excel templates and guidelines?headers. Use the Webi or EDDIE report titled Equipment Depreciation to generate a list of all equipment used in the Org code.
- Review the non-3E tab of the equipment list to verify that all equipment used in any 3E self-supporting activities has an entity code in the Entities Attribute Value column. The service center manager can assist to verify how the equipment is used.
- If any equipment needs the entity code to be added, removed, or changed, please complete the Entity Code Change Request form and email it to UPAR. The form can be downloaded from the Equipment Management Website Forms page located here. To confirm what entity code is associated with the self-supporting fund, you can check the Predecessor Fund field of FZMFUND form in Banner.
***Before including depreciation for equipment without entity codes, you must contact System Government Costing to verify if the equipment was included in the current F&A rate study
Contact
If you have questions about entity codes or calculating compliant rates feel free to consult System Government Costing's Who to Ask?
