UHCC Policy 8.200 Attachment B

The Business Office will be responsible for reconciling all rebates/commissions owed to the University by a Contractor within seven (7) days from the receipt of payment. The Vice Chancellor for Administrative Services shall be responsible for ensuring the Business Office adheres to these procedures. Reconciliation by the Business Office shall include comparing calculations for reported gross sales provided by the Contractor against the percentage of gross sales or flat fees owed to the campus are correctly stated. The Business Office shall also reconcile allowable deductions and/or general excise taxes have been properly accounted for and correctly stated, as well as match the amount remitted by check to the University to ensure accuracy.

For the purposes of ensuring all deductions and calculation reported to the campus are properly accounted for in the rebate/commission check received from the Contractor, the Business Office shall request supporting documents from the Contractor as necessary.

Any discrepancies found in the calculations of determining amounts owed to the University shall be communicated to the Contractor in writing, and in a timely manner, to allow the Contractor the ability to reconcile all discrepancies in the next month’s rebate/commission payment to the University. The Business Office shall keep records of all correspondence for reconciliation with the Contractor for audit purposes.

The Business Office shall monitor all rebate/commission checks to ensure all previous month’s payments are correctly reconciled. Should a calculation discrepancy be found in the final payment from a Contractor at the end of the term of contract, the University shall request the Contractor correct any discrepancy/error through the reissuance of a final corrected rebate/commission check within 10 working days following notification from the University of the discrepancy/error.

Checklist of Accounting Procedures for the Handling of Commission Payments from Foodservice & Vending Contractors

• Document if the remittance of rebates/commissions owed to the University, as well as, all monthly sales reports from the Contractor, are received in accordance with terms of payment by contract (example: “The CONTRACTOR shall forward all payments payable to “University of Hawai‘i”, no later than the 20th of the next calendar month following the end of the month, to each campus.”).
• Verify amounts owed to the University are correct by using the monthly summary sales report to determine reported gross sales, allowable deductions and general excise taxes are properly accounted for in determining the net gross sales and percentage of net gross sales owed to the University as rebate/commission.
• Verify the percentage amount of net gross sales owed to the University as rebate/commission matches the amount remitted by check from the Contractor.
• Note any discrepancies found in the above steps in a written correspondence to the Contractor for reconciliation in the next month’s remittance of rebates/commissions owed to the campus.
• Review previous month’s rebates/commissions owed to the campus to ensure all discrepancies/errors have been accounted for before processing the current month’s rebate/commission check for deposit.