If only a portion is transferred, a clear explanation needs to be given as to the basis for the division of the cost.ĭ. Transfers must be in the same amount as the original charge unless a portion of the expense is to be transferred. Each transfer must be in proportion to the benefits received from the goods and services.Ĭ. The quantity and goods or services must be specified.ī. The transfer must relate to a specific item of cost incurred by the unit preparing the adjustment. To record a change in use of goods or services, for example a case of beakers originally ordered for and charged to a teaching program, but subsequently required by and transferred to, a research project.Ī. To distribute / allocate certain high numerical, but small individual charges, such as copy machine costs, mailing charges, telephone charges, office supplies, or fax charges billed to a central department, but may be proportionally applied to other activities, projects or funds under the jurisdiction of the department.Ĭ. PO, Payroll transaction, Recharge journal, etc.) contained an incorrect chart string or amount.ī. To correct an erroneous recording when the original source document or subsequent interim transaction (e.g. Once an entry has been recorded in the general ledger, cost transfers may be made only in the following situations:Ī.
Preparation of Cost Transfers / Expenditure Adjustments See Appendix 1 below for sample delegation form D. The signed original Delegation of Authority is maintained in the Department. A Delegation of Authority to electronically approve cost transfers to someone other than a Principal Investigator, Dean, Director, or Department Chair, must be in writing. The Dean, Director or Chair of the department who delegates responsibilities and decision making authority for cost transfers must ensure that the employees to whom they delegate are qualified and are properly fulfilling their responsibilities.įor federal contracts and grants, cost transfers must be approved (in BFS the approval step is the "Review" online process for the zero adjustment or financial journal) by an employee within the academic/research unit who has been delegated such authority. The Dean, Director or Chair of the department by assigning a role within the financial system is delegating the authority to approve these cost transfers and expenditure and revenue adjustments.
#Line spress accounting full#
Exceptions require full documentation of reason for delay.Īudit-derived disallowed costs (including the transfer and portion of the disallowance extrapolated to the campus) will be borne by the unit(s) that caused them.
Consistency: The application of costs must be given consistent treatment within established University policies and procedures including Generally Accepted Accounting Principles and Cost Accounting Standards as issued by the Federal Cost Accounting Standards Board.Reasonableness: A cost may be considered reasonable if the nature of the goods or service acquired, the amount paid reflect the action that a prudent person would have taken at the time the decision to incur the cost was made.Example: If you are charging Project A for 50% of an item purchased, Project A must receive half the benefit or use of the item. Goods or services shared by more than one project are allocable in proportions that can be approximated through actual use.
Allocability: The goods or services must benefit the award charged.Allowability: It must be allowable under the terms and conditions of the award, including the authorized budget and applicable regulations.Deans, Directors and Chairs, and those to whom authority to approve adjustments is delegated, are responsible and accountable for compliance with University and Federal regulations.įor awards subject to Federal requirements, Principal Investigators and those to whom authority to approve cost transfers is delegated, are responsible and accountable for compliance with the following federal criteria that govern cost transfers: The responsibility for compliance with University and Federal regulations and guidelines and for maintaining supporting documentation for transfers/adjustments is in the originating department/unit.
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