Clearing Activity
This page contains technical details on SSEA Clearing Activities.
Overview
A clearing activity is an activity that uses a recharge methodology to redistribute personnel and related costs to multiple funding sources in circumstances which otherwise would require complex, split-funded payroll transactions. A typical clearing activity involves investigators and technicians whose effort from month to month directly benefits numerous contracts and grants in varying amounts. Clearing activities can be used by departments to expedite and provide an equitable allocation of salaries, benefits, and related costs.
To establish a clearing activity, there must be a regular and continuing need, within a specific department, to fund salaries, benefits, and related costs such as network telecommunication access fees from multiple fund sources in amounts that vary from period to period. The costs and the number of funding sources must be significant.
The activity must also demonstrate that the advantages of establishing a clearing activity significantly outweigh directly charging the cost to the multiple sources. The typical clearing activity avoids the need for complex split-funding of personnel and related costs.
To discuss establishing a clearing activity, please submit a ticket using the UC San Diego Services & Support portal.
Examples of Clearing Activities at UC San Diego
There are a few clearing activities that include but are not limited to Marine Physical Laboratory (MPL) and Center for Atmospheric Science (CASS).
Cost & Fund Treatment
Recharge rates will be based on allowable costs, which for clearing activities are only the personnel and related costs to be cleared. In a typical labor clearing fund, rate methodology will provide separate, unique rates for each person in the group.
Clearing activities will be operated on a no-gain/no-loss basis. Any surplus or deficit occurring in any one year will be corrected by adjustment of rates in the succeeding year to achieve a break-even balance at the succeeding year end.
Governing Policies
Accounting Treatment
The fund range is generally funds from 66130A through 66170Z. The title usually includes the words “labor clearing” or “support group”.
A budget must be established for each labor clearing fund activity in accordance with the Budget Office procedures. An “xxxBDxx” index is required and can be obtained from the Budget Office.