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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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