TO: Deans, Directors, and Departmental Executive Officers
FROM: Terry Johnson, Associate Vice-President & Controller
RE: Charging and Documenting Flood Related Costs
DATE: June 19, 2008
The University has expended significant efforts to protect its employees, buildings, equipment, books, and other assets from flood-related loss or damage. We recognize that these efforts have taken place across various departments on campus. FEMA and the University’s flood-damage insurance carrier have very specific requirements for documenting flood-related costs. Costs must be identifiable to a University department and to a University building. As a result, we are asking departments to set up new WhoKeys utilizing the following centrally defined grant-program numbers which correspond to the disaster relief phases prescribed by the University’s insurance carrier and FEMA. A description of each phase is also included at the end of this memo.
Grant Program (Description)
50600001 (Flood Ph I – Preventative/Protective Measures)
50600002 (Flood Ph II – Clean-up/Debris Removal -- use limited primarily to Facilities Management)
50600003 (Flood Ph III – Repair/Replacement-Buildings, Contents & Equipment)
Clean-up/Debris Removal and Repair/Replacement-Buildings Services will be coordinated by Risk Management. Campus should not hire services to perform these tasks without contacting Risk Management. Such services may be denied from reimbursement by insurance or FEMA if the right process is not followed.
Each new WhoKey will be established in Fund 275 using your department’s unique org and department codes. If desired, you can also attribute costs to a sub-department. Grant-Program will be one or more of the codes listed above. Function code is 00. Accounting Services staff is available to set up Fund 275 WhoKeys for your unit. Please email all requests to your primary Org contact in Accounting Services (http://www.uiowa.edu/~fusas/contact.html#staff) and copy Steve Romont (steven-romont@uiowa.edu) and Amy Welter (amy-welter@uiowa.edu). As transactions are charged to one of these flood-related WhoKeys (accounts), it is important to assign the cost to the appropriate Institutional Account in order for costs to be properly categorized (e.g.: supplies, non-capitalized equipment, capitalized equipment, etc.). Costs charged elsewhere must be CV’d to one of these flood-related WhoKeys.
Expenditures charged to a flood account will be required to be accompanied by The UI Flood 2008 Justification Form (http://www.uiowa.edu/~purchase/purchase/P_Forms/
UI_Flood_2008_Justification_Form.xls). This form details the nature of the flood-related costs, the room number and building location of the purchased items. The form must be attached to the transaction – requisition, e-Voucher or procurement card. A justification form must also be completed for all costs which are CV’d to a flood-related WhoKey. In this case, the justification form should be emailed to flood2008@uiowa.edu. Purchasing or Risk Management will perform an initial review of the justification to determine if it qualifies for insurance reimbursement. If not, the requisition or e-voucher claim will be denied and the department will have to record the transaction on a departmental MFK. If it is approved by Purchasing then the expense will be charged to the flood-related Account. Final settlement will be made with FEMA and the University’s flood insurance carrier in the future. At that point, the University will know how much of the flood expense will be funded from either insurance proceeds or FEMA. Options for expenses not covered include University or departmental funds as well as direct requests for support from the State.
Within the University’s accounting system, building codes are recorded in the Cost Center element of the MFK. You may find a list of buildings and related cost center codes that were affected by the flood in a document called Flood Related Costs - Allowable Building Codes in the following website: http://www.uiowa.edu/~fusrm/. If costs were incurred in protecting buildings that are not shown on this list please contact Donna Pearcy, Director of Risk Management, to see if these costs can be included in the flood damage insurance claim.
If you have questions related to charging of flood-related costs, please send an email to the following address: flood2008@uiowa.edu. Risk Management, Purchasing & Controllers Office will work together to respond to questions as promptly as possible.
Please pass on this memo to others in your unit as appropriate. Thank you in advance for your cooperation and patience.
Description of Disaster Relief Phases:
Phase I – Preventative/Protective (Grant-Program 50600001). This includes resources expended for the purpose of protecting & safeguarding University assets (buildings, equipment, inventory, etc.). These measures are taken before, during, and after a disaster to save lives, protect health & safety and prevent damage to property. Such activities may include, but is not limited to, the following: sandbagging, provision of food, water, ice & other essential needs, provision of shelters, emergency care, packing boxes and supplies or cost to relocate employees and departments, temporary storage of furniture, equipment purchases and supplies.
Phase II – Clean-up/Debris Removal. (Grant-Program 50600002). This includes resources expended for the purpose of clean-up activities, including debris removal. Costs expended for efforts in Phase II will primarily be made by central Finance & Operations staff. Departments should not engage in any clean-up/debris removal activities as the University has hired two external firms, BMS and Cotton, to perform this work in collaboration with Risk Management & Facilities Management. For additional details, please read the document posted on the Risk Management website www.uiowa.edu/~fusrm.
Phase III – Repair/Replacement (Grant-Program 50600003). This includes resources expended for the purpose of repairing/replacing damaged buildings, equipment or supplies. Finance & Operations staff will be responsible for managing the repair and replacement of University facilities. Departmental staff may be responsible for ordering equipment and supplies damaged by the flood.
Within the University’s accounting system, building codes are recorded in the Cost Center element of the MFK. You may find a list of buildings and related cost center codes that were affected by the flood in a document called Flood Related Costs - Allowable Building Codes in the following website: http://www.uiowa.edu/~fusrm/. If costs were incurred in protecting buildings that are not shown on this list please contact Donna Pearcy, Director of Risk Management, to see if these costs can be included in the flood damage insurance claim.
If you have questions related to charging of flood-related costs, please send an email to the following address: flood2008@uiowa.edu. Risk Management, Purchasing & Controllers Office will work together to respond to questions as promptly as possible.
Please pass on this memo to others in your unit as appropriate. Thank you in advance for your cooperation and patience.
Description of Disaster Relief Phases:
Phase I – Preventative/Protective (Grant-Program 50600001). This includes resources expended for the purpose of protecting & safeguarding University assets (buildings, equipment, inventory, etc.). These measures are taken before, during, and after a disaster to save lives, protect health & safety and prevent damage to property. Such activities may include, but is not limited to, the following: sandbagging, provision of food, water, ice & other essential needs, provision of shelters, emergency care, packing boxes and supplies or cost to relocate employees and departments, temporary storage of furniture, equipment purchases and supplies.
Phase II – Clean-up/Debris Removal. (Grant-Program 50600002). This includes resources expended for the purpose of clean-up activities, including debris removal. Costs expended for efforts in Phase II will primarily be made by central Finance & Operations staff. Departments should not engage in any clean-up/debris removal activities as the University has hired two external firms, BMS and Cotton, to perform this work in collaboration with Risk Management & Facilities Management. For additional details, please read the document posted on the Risk Management website www.uiowa.edu/~fusrm.
Phase III – Repair/Replacement (Grant-Program 50600003). This includes resources expended for the purpose of repairing/replacing damaged buildings, equipment or supplies. Finance & Operations staff will be responsible for managing the repair and replacement of University facilities. Departmental staff may be responsible for ordering equipment and supplies damaged by the flood.
