Effective August 18, a revised Earnings Operations policy has been issued. Changes were made to clarify earnings operations requirements and advance compliance with current Office of Management and Budget Uniform Guidance, the authoritative set of rules and requirements for federal awards management. Key changes are listed below.
- Defines the different types of earnings operations, including adding definitions for “Clinical Operations,” “Health System,” and “Other External Earnings Operations.”
- Clarifies oversight responsibilities for earnings operations, including requiring the Enterprise of Research, Innovation and Knowledge to approve any earnings operation that plans to charge federal, state, and local grants.
- Updates requirements, including self-supporting operations, proper accounting, tax compliance, and public fee posting.
- Strengthens financial management requirements for deficits, subsidization, worktags, capital assets, and reserves.
- Prohibits pre-billing internal parties and grants.
Be sure to read the policy in its entirety to familiarize yourself with the changes. Contact the Controller's Office with any questions.