Tools & Approaches to Cost Transfers Grants Management User Network September 23, 2010

1. Tools & Approaches to Cost TransfersGrants Management User NetworkSeptember 23, 2010

2. Overview • Cost Transfer Reports • Justification • Approach to Cost Transfers • Sponsor Review & Audits

3. 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

4. Cost Transfer Reports Uses • Monitor compliance • Identify areas that require improvement • Review a business process • Establish or change procedures to reduce the need for cost transfers

5. 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

6. 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

7. COST TRANSFER CHECK LIST JE’S FOR PREVIOUS FISCAL YEAR TRANSACTIONS (SPONSORED) ON EVERY JE FORM… □Indicate the date of the original charge. (e.g. 03/16/2009) □Reference the number of the original accounting document and the 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. □ 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 PREVIOUS FISCAL YEAR ACCOUNTING EXAMPLE: 1026-10000-20000-721101: -$29.90 3000-10000-UMSPR-0000001-1-GLE-720105-YR00002009: $29.90 CA’S WILL BE CHECKING FOR □ EXPENSE ALLOWABILITY □ EXPENSE REASONABLENESS □ EXPENSE ALLOCABILITY □ GRANT END DATES □ DEFICITS □ CHECKLIST CRITERIA MET □ COMPLETE DOCUMENTATION

8. Sponsor Reviews & Audits • Review in greater detail • Expect a reasonable justification • Question “template” type justifications • Question timeliness of cost transfers

9. Contact Info Sue Paulson Sponsored Financial Reporting 612-624-5007 spaul@umn.edu