Building Rental and Lease Agreements for WBS elements beginning with “3”
In order to follow University policy and OMB Circular A-21, WBS elements beginning with “3” will no longer
be directly charged for building rent or lease agreements from Real Property. All rent or lease payments will be
directly charged to a cost center provided by the department to Real Property.
Once the charge has posted, each department will be responsible for submitting a timely journal voucher to
allocate charges to “3” WBS elements. The cost transfer policy should be followed when creating the journal
voucher. Documentation should include a copy of the original rent or lease agreement, a copy of the journal
voucher where the cost center was charged, and a breakdown of the allocation of expenses. Each expense must
be allocated between accounts by a verifiable and reasonable method. The square footage occupied by each
project is the most general allocation method to be used. Specifically, a total square footage of the space should
be provided, with a breakdown of usage by each project, including number of employees, % effort, etc. Once
this documentation has been approved with the journal voucher and no changes occur, it should be attached to
each subsequent journal voucher. If changes in allocation are made, the documentation will need to be updated.
Please see an example below for guidance.
Project N, R and M Billing
for Oct - Dec 2006
N: 3 employees; R: .45 employees; M: 6.55 employees=10 total occupants
Common Area Percentages
R 45%* of 120
M 55%* of 120
M ONLY offices
M 50%* of 180
N 50%* of 181