605 Building Use Credits
Fiscal Operations Manual
Section 600: Plant Funds & Fixed Assets
- To ensure that funds are set aside from Facilities and Administration (F&A)/Indirect Cost recoveries on sponsored grants and contracts, and appropriately distributed for use.
- To identify the requirement to reserve these funds and how they are to be expended is found in OMB Circular A-21; section J.14h quoted below. (These funds are held in a special Reserve fund awaiting distribution.)
"Institutions shall expend currently, or reserve for expenditure within the next five years, a portion of F&A cost payments made for depreciation or use allowance under sponsored research agreements, consistent with Section F.2, to acquire or improve research facilities ...These funds may only be used for:
- liquidation of a principal of debts incurred to acquire assets that are used directly for organized research activities, or
- payments to acquire, repair, renovate, or improve buildings directly used for organized research."
Oregon State University’s process for distribution of building use credits (BUC) is:
- Total funds available are determined by the Budget Office based on prior year actual recovery.
- Any recurring institutional commitments for allowable projects are identified and removed from further calculations.
- Beginning in FY02, a portion of the BUC Reserve is allocated for further distribution by the Research Office. This amount is removed from further calculations. The Vice President for Research will distribute these funds in accordance with OMB Circular A-21 provisions. The Research Office will notify awarded units of projects funded. Copies of the notification letter will be forwarded to the Director of Facilities and the Associate Director of Business Affairs. Transfer of funds from the BUC Reserve is coordinated by Facilities Services with OUS Controller’s Division.
- The remaining funds are available to be distributed on a pro-rated basis according to their locus of generation into the F&A recovery pool.
- The Budget Office will notify units (colleges) of the approximate funds available.
- Units will send in a project request list to the Research Office.
- The Research Council will review the project list to determine qualification within the OMB Circular A-21 guidelines.
- The Research Office notifies units of the qualified projects and amounts. Copies of the notification letter are forwarded to the Facilities Controller and Business Affairs. The Facilities Controller completes a request to establish an 802xxx Plant Fund and ZARWxx index for each unit (college) receiving BUC funds for the fiscal year and forwards them to the OUS Chancellor’s Office. Allocations for each fiscal year must be kept separate. The OSU Business Affairs transfers the funds from the BUC Reserve Fund to the individual unit (college) BUC funds for that fiscal year. The amount of the transfer is indicated on the Plant Fund set up sheet.
- At least annually, Finance & Administration will complete a review of the use of 802xxx building use credit funds and the current balance.
- All remaining dollars in the 802xxx funds at the completion of the designated project(s), or after 5 years, whichever comes earlier, will be returned to the central BUC reserve fund for future redistribution. OUS Controller’s Division completes this action after a request by OSU Business Affairs and Facilities Services.