Section 5 - Revenue, Income, and Receivables
Section 5.1 - Revenue, Income Function and Receivable Operations
Date: 5/2/05 — Approved: Finance Board
The revenue, income, receivable functions, and their associated operations consist of those business processes concerned with the recording and control of amounts due to and received by the AS, as well as the collection of deferred amounts due to the AS from various sources such as sales of goods and services.
REVENUE AND INCOME FUNCTION
Revenue and income are generic terms representing the money received by the AS in order that it may buy the goods and services necessary to carry out its missions. The income and revenue function is composed of those business processes utilized to control these amounts to insure that the money due to the AS is received, recorded, and properly applied.
Although there is a technical difference between the terms income and revenue, they are often used interchangeably as general terms of reference in many of the policies and procedures to indicate the inflow of funds to the AS
Current fund revenues are divided into four general categories:
AS Income Student Fee Revenue
Revenue from general activity fees is received locally by the University and forwarded to AS on a monthly basis. Revenue from student union fees are received by the University and transmitted to the chancellor’s office. Money is held at the Chancellor’s office and requested annually by the University and forwarded to AS on an annual basis.
Operating Revenue
Revenue from user fees derived from the operations of the following two unrestricted funds:
General Activities
Accounts for activities provided by the student government and its boards and committees, student organizations and the Daily Aztec.
Student Union Fund
Accounts for the facilities, programs, and services provided by the AS including Cultural Arts and Special Events, Aztec Center, Cox Arena, Aztec Recreation Center, Mission Bay Aquatic Center, and Children’s Center, etc.
Contracts and Grants
Revenue from federal and state awards derived from the operations of child care services to students of the University.
Interest Income
Revenue from investments consisting of certificate of deposits and both short and long term investments.
RECEIVABLE FUNCTION
The receivable function is divided into two general areas, each containing several sub-functions.
Accounts Receivable
This area is concerned with the business processes of recording, controlling, and collecting amounts due from the sale of goods and services:
- General accounts receivable - These are accounts of a "commercial" nature for amounts due from the general public campus community and AS department staff.
- Daily Aztec receivable-- These are amounts due from customers who place advertisement ads in the Daily Aztec college newspaper.
- Children’s Center receivable - These are accounts of customers who utilize the AS child care program.
- Aztec Recreational Center receivable — These are accounts due from customers who utilize the recreational center and services.
Other Receivables
This area is concerned with miscellaneous cash advances made to staff members.
- Petty cash funds-— See Section 10.6 — Petty Cash Funds.
- Change Funds-— See Section 10.7 — Change Funds.
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