Non-Monetary Exchanges: Policy and Procedures

1. Financial Policies Training:Non-Monetary Exchanges (2.1.12) Effective: May 1, 2009

2. 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.

3. Non-Monetary Exchanges (2.1.12) • 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?

4. 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”

5. Non-Monetary Exchanges (2.1.12) • Why is a policy needed? • To ensure appropriate • Approvals • Accounting • Value to UC

6. Non-Monetary Exchanges (2.1.12) • What are the policy requirements? • Business purpose • Equal value • Approval • Exchange valued < $1000 • Dean/org unit head • In writing • Exchange valued ≥ $1000 • Purchasing; in conjunction with General Counsel if needed • No pyramiding to bypass this approval

7. 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

8. 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

9. 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