Transcript American Recovery and Reinvestment Act ('ARRA') Prepared

Tools & Approaches to Cost Transfers
Grants Management User Network
September 23, 2010
Overview
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Cost Transfer Reports
Justification
Approach to Cost Transfers
Sponsor Review & Audits
Cost Transfer Reports
• Salary Cost Transfer and Non Salary
Cost Transfer Reports (UMReports)
– Sponsored & Non Sponsored
– PeopleSoft expenses (not legacy)
– Six month consecutive time period
– One or more: By RRC, ZDeptID, Fund,
Program, Project, FinEmplID, CF1, CF2,
Account, PI/CPI/COI
Cost Transfer Reports Uses
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Monitor compliance
Identify areas that require improvement
Review a business process
Establish or change procedures to
reduce the need for cost transfers
Justification
• Justification should ensure allowability
and allocability
• Show benefit to the Project
• HSAs outside effort period should
describe the work that was done
• Be succinct and direct
Approach to Cost Transfers &
Clusters
• Will happen, work to control
• Identified during monthly review
• Single Journal Entry or Spreadsheet
upload
• Service level agreements
• Dual reporting
– Cluster & Department
COST TRANSFER CHECK LIST
JE’S FOR PREVIOUS FISCAL YEAR TRANSACTIONS (SPONSORED)
ON EVERY JE FORM…
PREVIOUS FISCAL YEAR ACCOUNTING EXAMPLE:
□ Indicate the date of the original charge. (e.g. 03/16/2009)
1026-10000-20000-721101: -$29.90
□ Reference the number of the original accounting document and the
3000-10000-UMSPR-0000001-1-GLE-720105YR00002009: $29.90
account.
(e.g. VID 00420992)
□ Justify why the cost is being transferred. If the cost is being moved onto a
sponsored account, this explanation is particularly important for accountability to
sponsors. It cannot merely state that the transfer was made "to correct error" or
"to transfer to correct project." The form must state how and why the error
occurred. This information is needed to adequately support the validity of this
cost on the project and may be reviewed by auditors.
□ Description of the cost being transferred.
□ Note steps taken to avoid errors in the future, if not simply a keystroke
error.
The originally charged document should contain the required justification per the
standards outlined in this job aid. If this transfer alters this justification in any way,
the change should be reflected in the transfer justification.
CA’S WILL BE CHECKING FOR
□ EXPENSE ALLOWABILITY
□ EXPENSE REASONABLENESS
□ EXPENSE ALLOCABILITY
□ GRANT END DATES
□ DEFICITS
□ Additional justification (reason for delay) required for transfers processed
outside of allowable transfer window listed in Administrative Policy: Processing
Internal Accounting Transactions (under development).
□ PI SIGNATURE ON JE FORM OR EMAIL OF APPROVAL
□ DEPT HEAD SIGNATURE ON JE FORM OR EMAIL OF APPROVAL
□ CHECKLIST CRITERIA MET
□ COMPLETE DOCUMENTATION
Sponsor Reviews & Audits
• Review in greater detail
– Expect a reasonable justification
• Question “template” type justifications
• Question timeliness of cost transfers
Contact Info
Sue Paulson
Sponsored Financial Reporting
612-624-5007
[email protected]