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Payroll Reallocations as They Pertain to Sponsored Program Projects February 22, 2010

Payroll Reallocations as They Pertain to Sponsored Program Projects February 22, 2010. Sponsored Programs Accounting (906)487-2244 Website: http://www.mtu.edu/research/administration/accounting /. Goals/Objectives. Review of the reallocation form. Reduce the need for reallocations.

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Payroll Reallocations as They Pertain to Sponsored Program Projects February 22, 2010

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  1. Payroll Reallocations as They Pertain to Sponsored Program ProjectsFebruary 22, 2010 Sponsored Programs Accounting (906)487-2244 Website: http://www.mtu.edu/research/administration/accounting/

  2. Goals/Objectives • Review of the reallocation form. • Reduce the need for reallocations. • Explain the relationship between reallocations and effort certifications. • When is a reallocation necessary and clarify the requirement for reallocations past 90 days. • Miscellaneous topics. • Questions

  3. Reduce the need for reallocations • Determine the distribution of payroll up front. • Time overrides • Account distribution Form • Request an advance of funds from the Sponsored Programs Office. http://www.mtu.edu/research/administration/sponsored-programs/pdf/advance2.pdf

  4. The relationship between reallocations and effort certifications. • What are effort certifications and why are they necessary? • If an effort certification is incorrect a payroll reallocation may be necessary. • A reallocation done after a effort certification has been signed becomes a “re-certification of effort”.

  5. Clarify the requirement for reallocations past 90 days. • Expenditures reallocations to sponsored projects after 90 days of the original charge is generally unallowable. • OMB Circular A-133, Federal guidelines for auditors specifically directs auditors to target: “projects that are complete or in the later stages of completion. Frequent, untimely, and poorly documented reallocations can be an indicator of poor internal control”.

  6. When is a payroll reallocation necessary? To correct data entry errors found after reviewing monthly account summaries.

  7. Reallocations necessary and exceptions to 90 day requirement: • Official paperwork for an award is delayed (could request an advance) Charging another sponsored project while waiting for another to be awarded. • A semester effort certification is received and there is a problem with the % effort. • It is determined that an unallowable expense is charged to the project. • When reallocating to another index under the same award.

  8. Miscellaneous Topics: • Justification should always include: • Why the expense was not originally charged to the correct project. • How the expenditure relates/benefits the project being charged. • Otherto the sponsors and auditors: Reallocations charging one sponsor project to clear a deficit in another. Reallocations at the end of the project to spend the remaining balance.

  9. QUESTIONS?

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