1 Colo. Code Regs. § 101-1-6-4

Current through Register Vol. 48, No. 1, January 10, 2025

Rule 1 CCR 101-1-6-4 - REFUNDS, REIMBURSEMENTS, AND RETROACTIVE REFINANCING

1.AUTHORITY

§24-30-202 (19), C.R.S. (State Controller Authority)

2.DEFINITIONS

2.1. Non-augmenting Revenue Account - An account used to record a refund or reimbursement from a prior fiscal year. Such Non-augmenting Revenue Accounts do not serve as funding sources for appropriated expenditures.

2.2. Refund - An amount or credit received because of an overpayment or the return of an item purchased.

2.3. Reimbursement - Repayment received for amounts remitted on behalf of another Party.

2.4. Retroactive Refinancing - Identification of a funding source not previously available to fund prior year expenditures funded by a different source in the prior year. Retroactive refinancing includes funds authorized by, but not limited to, subsequent statutory, federal, or legal action.

3.RULE

3.1. State Agencies and Institutions of Higher Education will normally use either an account receivable or a revenue account to record Refunds and Reimbursements. How-ever, incidental and non-recurring Refunds or Reimbursements may be credited against the original account coding if the recovery occurs in the same fiscal year as the original expenditure and is for activities that involve a routine State Agency or Institution of Higher Education function. If Refunds or Reimbursements- are received in a subsequent fiscal year, such as an audit recovery or accounts payable reversion, they should be credited to a Non-augmenting Revenue Account. Retroactive Refinancing activity shall be recorded as directed by the State Controller.

3.2. The Budgetary and Legal exceptions to the Rule are not compliant with GAAP for financial reporting purposes. Adjustments to convert Budget and Legal Exceptions activity shall be recorded in order to conform to GAAP in compliance with this Rule.

4.BUDGETARY AND LEGAL EXCEPTIONS TO RULE

4.1. Capital Construction Funds - Refunds or Reimbursements received for expenditures of Capital Construction Fund appropriations during the life of the project shall be treated as if they were received in the same fiscal year as the original expenditure. If the recovery is made after the term of the appropriation has expired, the recovery shall be credited to a Non-augmenting Revenue Account.

4.2. Federal Funds - Refunds or Reimbursements received for expenditures of federal funds, prior to the expiration of the award, shall be treated as if they were received in the same state fiscal year as the original expenditure. If the recovery is made after the award has expired, the recovery shall be refunded to the federal government, unless otherwise directed by the federal government.

4.3. Contracts and Grants - Refunds or Reimbursements received for expenditures made from Contracts and Grants shall be handled as set forth in the terms of the Contract or the conditions of the Grant.

1 CCR 101-1-6-4

41 CR 19, October 10, 2018, effective 11/1/2018

45 CR 11, June 10, 2022, effective 7/1/2022

46 CR 11, June 10, 2023, effective 7/1/2023

47 CR 08, April 25, 2024, effective 7/1/2024