The Health System (HS) Interfund is used to record financial activity that occurs between the University and its related entities – specifically, the University of Pennsylvania Health System (UPHS). Generally, these activities include internal revenue, budgetary transfers, and capital support.
UPHS financial statements are consolidated monthly into the University’s statements. These transactions must be recorded in the general ledger of both the University and UPHS in the formats required by each accounting system. Inter-equity activity is reconciled each month and eliminated after the entries are consolidated.
These journals are recorded to an intra-company receivable/liability account, using a 15xx Object Code. Find a full list of Object Codes on the DOF website.
The preparer of the journal may list each transaction to the interfund account individually or may summarize transactions to the interfund as long as the individual transactions making up the summarized entry to the interfund are charged to the same UPHS Lawson-UPHS Chart of Accounts number.
UPHS operating transfers are transactions that represent the transfer of non-specific/general resources between the University and UPHS. For example:
Use Object Code 4823 Inter-Entity Equity Transfer – Operating and offset with the appropriate 15xx entry.
UPHS non-operating transfers are transfers of resources between UPHS and the University that occur as a result of capital transactions and/or endowment activity. For example:
Use Object Code 4824 Inter-Entity Equity Transfer – Non-Operating and offset with the appropriate 15xx entry.
NOTE: Do not use Object Codes 4820 Resource Transfers In and 4825 Resource Transfers Out as these are used for resource transfers within the University.
Expense Credits are used with UPHS when funds have already been spent and in order to share this activity with UPHS Center 21 or CPUP, the University department will debit or credit the original expense/revenue used and debit or credit the interfund to share with the Health System.
The Children’s Hospital (CHOP) Health Affiliates are currently six practices within CHOP (listed below) that are organized exclusively for charitable, educational, and scientific purposes. These practices are contracted with the University to provide medical services, engage in medical research, provide teaching services to medical students, and provide administrative services in hospital medical care. The faculty and staff that are contracted for these services include doctors, hospital staff, and work-study students. These employees are hired using the University Provost’s Office requirements (it is required that these practices have an accredited University’s backing when hiring staff). Activity booked to these practices usually include payroll expenses and general expenses charged by University departments. Use of the 125X object code series is required for these practices.
|4203||Children’s Anesthesiology Assoc.|
|4392||Children’s Health Care Assoc./CHCA|
|4432||CHOP – Psychiatry (AP Dept.)|
|4465||Radiology Associates of CHOP, Inc.|
|4505||Children’s Surgical Associates (CHOP)|
The Comptroller’s Office has prepared a series of journal entry examples to help you better understand how to process and record your transactions using the Health System Interfund.