G&C Cost Transfer Category Review
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Transcript G&C Cost Transfer Category Review
ORS Brown Bag
Sessions
Journal Entry – G&C Cost Transfers
What is a Cost Transfer?
is defined as the moving of an expense to a sponsored
project when the expense was initially charged to another
project or non-sponsored account (Financial Policy #2113)
Payroll not included in definition of cost transfers (in most cases)
Cost Transfer Principles
Need occur in a timely manner
Need to be allowable under Sponsor & University Policy
Need to include adequate description of purpose for entry
along with appropriate DOCUMENTATION
C/T may not be used as a means of managing cash flow
Cost Transfers & Timeliness
Penn Policy (Financial Policy #1402) requires a review of all
transactions on a monthly basis.
Cost Transfers are expected to be completed within 90 days
of the month end in which the original transaction
occurred (DHHS require 90 days from original trans date)
PI responsible for approving all transfers & ensuring timeliness.
Any cost transfer (debit or credit) processed after the 90
period referenced above – requires ORS approval.
Documentation of Cost Transfers
All Cost Transfers must be supported by appropriate
documentation:
Full explanation of circumstances under which the error occurred
Explanation of direct benefit to the new funding source
Original source documentation for transaction (invoice, c-368, etc.)
Documentation of PI approval
Corrective action plan (as necessary)
Journal descriptions stating “to move to correct fund” or “to
correct error” are inappropriate
Cost Transfers - Historically
Cost Transfers have always been an area of review and focus by
central admin
However, proper tools were not always available for proper recording and
tracking of transfers.
In the past, cost transfers were typically processed via J/E
General 02 Adjust Previous Transaction or 07 Grant and Contract
Adjustment, however there was no validation with respect to
timeliness of cost transfer
Annually UPENN would be have an A133 audit conducted and
cost transfers would be part of the audit process.
Cost Transfers have been identified as “findings” within prior
University A133 audit(s).
Details of findings include: lack of documentation, violation of timeliness
per University policy
New Responsibility in BEN
On July, 1, 2010 an additional BEN Financial Journal Entry
Responsibility titled Journal Entry – G&C Cost Transfers
was introduced to improve monitoring, tracking and
compliance with the University's Cost Transfer Policy #2113.
As of July 1, 2010, Journal Entry – General category 02-
Correct Previous Transaction & category 07 – G&C
adjustment were no longer to be used for sponsored
project (5-fund) cost transfers.
New Responsibility – New Categories
Authorized users are to prepare cost transfers for sponsored
project account (5 fund activity) using Journal Entry – G&C Cost
Transfers under the following categories:
15 G&C UN90 – select this when entering C/T within 90 days of the
month end of original transaction date and original transaction
occurred within BEN system
16 G&C OV90 - select this when entering C/T that exceeds 90 days
of the month end of original transaction date and original
transaction occurred within BEN system
17 UPHS Gds/Svs – select this when processing a UPHS goods and
services transfer to a 5-fund and original transaction occurred
within UPHS system
18 UPHS Payroll - select this when processing a payroll transfer to 5fund and original transaction occurred within UPHS system
Category 16 G&C OV90
When using Category 16, the information below must be
submitted to your ORS Desk Accountant via email:
Type in Subject line:
Category 16 Cost Transfer : Fund #, PI, Award/Grant Ref #
Include/attach following supporting documentation:
Journal Batch Name of Cost Transfer
Full explanation of the circumstances under which the error
occurred
Reason for the delay in correcting the error
Explanation of direct benefit to the new funding source
Original/source documentation for the transaction (invoice,c368,etc)
Documentation of PI approval
Category 16 G&C OV90 cont’d
Upon receipt of the email, ORS will review the supporting
documentation and respond within 5-7 business days
If all documentation submitted is completed and adequate
ORS will post the appropriate journals(s)
For any journal entry which requires additional information or is deemed
inappropriate, ORS will send an email requesting an adjustment or the
deletion of the journal entry.
Cost transfer journal entries not approved by ORS should be deleted promptly by
the originating Department.
Access
Access to Journal Entry – G&C Cost Transfers is granted by
completing the following:
BEN Balances – Manual Journal Entry instructor led training
BEN Balances: Journal Entry – Grant and Contract Cost
Transfers on-line training curriculum (2 Parts)
G&C Cost Transfers Knowledge Building
G&C Cost Transfers Application Training
BEN Financials eForms
Training Requirements
Access
Requirements
BEN Balances –
Manual Journal
Entry
Instructor Led
Training
New User
Existing Journal Entry General User
BEN Balances:
BEN Balances: Journal
Journal Entry – Grant
Entry – Grant and
and Contract Cost
Contract Cost Transfers
Transfers
Knowledge
Building
Application
Training
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Resources / Help
Office of Research Services
http://www.upenn.edu/researchservices/
Office of Research Support Services
http://www.med.upenn.edu/orss/
Ben Knows
http://www.finance.upenn.edu/benknows/
Financial Policies
http://www.finance.upenn.edu/vpfinance/fpm/