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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 )

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Ors brown bag sessions
ORS Brown Bag Sessions

Journal Entry – G&C Cost Transfers


What is a cost transfer
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
    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
    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 - 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
    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
    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 5-fund and original transaction occurred within UPHS system


    Category 16 g c ov90
    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,c-368,etc)

        • Documentation of PI approval


    Category 16 g c ov90 cont d
    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

    • 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



  • Resources help
    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/


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