Constituent Reporting Unit

Prerequisites

Prior to reading the Constituent Reporting Unit standard, it is beneficial to review the below sections to gain foundational information:

1. Policy FIN-ACC-650 Financial Compliance: Authority and Accountability
2. Policy FIN-ACC-1 Role of Fiscal Officer, Account Manager and Account Supervisor
3. Policy FIN-ACC-470 Internal Controls

Preface

This standard defines a Constituent Reporting Unit (CRU) for Indiana University. Information presented below will provide a general understanding of a CRU, required financial reporting requirements and best practices for CRU organizations.

Introduction

What is a Constituent Reporting Unit?

A Constituent Reporting Unit (CRU) is a defined segment (organization or grouping of organizations) within Indiana University that have revenues, expenses, or net assets over a predetermined threshold as defined in the Office of the University Controller’s (UCO) closing procedures. These units are held to a defined set of financial compliance standards and submission requirements by UCO. Thresholds and compliance requirements are reviewed annually and defined within the year-end closing procedures. A list of CRUs can be found here. These standards are meant to comply with external financial reporting requirements as well as ensure transparent and accurate internal reporting.

Required Tasks for Constituent Reporting Units

CRUs are required to meet the following interim and annual reporting requirements and to submit detailed financial documentation to UCO:

• Perform closing activities according to UCO closing procedures and submit requested documentation for review by the required UCO deadline.
• Record all financial transactions timely and in accordance with the IU accounting standards, including the IU Accrual Accounting standard.
• Reconcile all accounts and object codes on a recurring basis, as referenced and defined in Policy FIN-ACC-1 Role of Fiscal Officer, Account Manager and Account Supervisor and the IU account reconciliation standard.
• Confirm compliance with all items on the IU Sub-Certification checklist and ensure signature and submission by the required UCO deadline.

CRUs are also required to meet the following requirements on an ongoing basis:

• Ensure internal controls are documented and reviewed in accordance with Policy FIN-ACC-470 Internal Controls
• Adherence to IU policy and accounting standards as it relates to financial compliance activities including payroll, capital assets, tax, gifts, etc.
• Inform UCO in advance of any activity that would have a potential material financial impact including, but not limited to:
• Material nonroutine transactions, as defined in the UCO closing procedures
• Significant contractual arrangements or agreements
• Significant changes to subsidiary financial systems
• Significant reorganizations
• Substantial chart of account changes
• Major external agreements, engagements, or activities

Requirements and Best Practices

Requirements

1. CRUs must meet the requirements of this standard.
2. CRUs should review new or updated IU Financial Policies, Accounting Standards and UCO closing procedures, as released, or updated.
   
   

Best Practices

1. Ensure that internal controls are designed and operating to enforce this standard throughout the CRU organization.
2. Communicate changes in accounting practices and requirements to all fiscal staff and organizational leaders.