cost transfers - university of california, los angeles · xerox, copying charges. (backup documents...

Cost Transfers

Maaza Woldemusie – General AccountingBecky Henricksen - EFMEugene Harrison – PayrollMaurice Taylor – EFM

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Please Turn Off all Cellular Phones and Noise Making

Devices

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On-Line Non Payroll Expenditure Adjustment Request Form

Web Application

Maaza Woldemusie, ManagerGeneral Accounting

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Table of Contents

Preparers’/Reviewers’ ResponsibilitiesPreparers’ ResponsibilitiesReviewers’ ResponsibilitiesProcedures and GuidelinesHelpful HintsSystem User Access RequirementsUser Training Requirements Reference: Financial Policies & Procedures

Non-Payroll Expenditure Adjustment Request Form Descriptions

Logon ID and PasswordMenu and DescriptionSteps to Complete Document

(EMPHASIS – Transactions Over 120 days)

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Table of Contents cont’d

Saving/Retrieving DocumentsPreparerReviewer

Sample of Error Messages and EditsSelection—Transaction or BalanceDocumentFull Accounting UnitValue (amount)Period (date)

Help

Help!!

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Preparers’ Responsibilities

The PreparerMust understand the purpose of the transaction in order to:

Record a complete and proper explanation on the expense transfer. NOTE: This is a permanent document in the Financial System.Ensure the proper Full Accounting Units are entered.Enter appropriate and accurate data into all fields of the document.Be cognizant of basic policy, regulatory and other requirements.

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Preparers’ Responsibilities cont’d

The Preparer (cont’d)Resolve all questions that come to mind during the completion of the transactions or are automatically raised via on-line edits and related error messages.Immediately forward the completed transaction to the prescribed Reviewers by completing the transaction and PAN e-mail notification routine.

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Reviewers’ Responsibilities

All Reviewers must:Complete their review of transactions received via e-mail notification within two (2) business days of receipt.Inspect the document on the web to ensure that the Preparer properly fulfilled her/his responsibility.Review each transaction for compliance with policy, regulatory and other requirements.

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Both “Preparers” and “Reviewers” should have the understanding of the following Systems that Feed to the General Ledger:

Purchasing/Accounts Payable System (PAC)Recharge UnitsCorporate Financial SystemBilling and Accounts Receivable SystemFinancial Aid System (thru BAR) (future)

Additional Responsibilities for Preparers and Reviewers

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Procedures and Guidelines for Preparing and Reviewing Non-PEAR

Purpose and Use:The purpose of Non-Payroll Expenditure Adjustment Request (Non-PEAR) form is to provide an instrument for departments to adjust charges on the general ledger that can be fully explained, justified and approved.Non-PEAR is used:

To correct non-payroll transactions that are made in error.To redistribute high/volume/low cost items, such as telephone, fax, Xerox, copying charges. (Backup documents for this type of transfers are maintained by the department.)To transfer non-payroll expenses recorded in one account/cc/fund (FAU) and the fund source is changed to a different FAU because of management decision, etc.

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Procedures and Guidelines for Preparing and Reviewing Non-PEAR cont’d

From the Detail General Ledger, the following information of the transaction to be adjusted should be copied:

FAUDocument DateType EntryTransaction No.DescriptionReference No.Amount

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Total amount “debited” of each document should equal to amount “credited”.Adequate and appropriate explanation why the expense transfer is necessary is required. To use up the leftover balance in the fund, just because the PI told me so, to support other units, etc. are not acceptable.Reason for delayed transfers over 120 days of the original transaction on the Detail General Ledger should be provided with appropriate Academic Official being included in the ASAP Notification as a “Reviewer”. “Shortage of Staff” is not an adequate reason for the delay.

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High volume/low cost transfers should be prepared for each month, i.e. charges of several months cannot be lumped together.At least one reviewer is required to be set up for one FAU. (Note: Those who are currently required to sign transfers, including PIs, Deans should have “reviewer” function for Contract and Grant Funds.)

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Helpful Hints in Preparing Non-PEAR

Type Entries Valid for Non-PEAR33 Cash Deposit-Main Cashier Murphy34 Cash Deposit-Main Cashier Other Stations35 Income Wire Transfers, ACHs41 Accounts Payable – Invoice Accrual44 Accounts Payable – Invoice Cancellation50 University Invoice – BAR53 Financial Journal Entry54 Non-Payroll Expenditure Adjustment

Request59 On-Line Recharge Billing

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Helpful Hints in Preparing Non-PEAR cont’d

Exception to the above:53 Financial Journal Entry

Payroll Transactions

70 Overhead Assessment

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Type Entries to Avoid11 Annual Operating Budget Appropriation12 Reappropriation of Prior Year Balances13 Budget Adjustment Journal14 On-Line Budget Transfer15 Intercampus Budget TransferEN Encumbrance Set-Up, Increase, Decrease, ReleaseML Memo Lien Set-Up, Increase, Decrease, ReleaseM9 Memo Lien Set-Up (Payroll), Increase, Release

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Identify the Nature of the Activity

33 Cash Deposit-Main Cashier Murphy

34 Cash Deposit-Main Cashier Other Stations

35 Income Wire Transfers, ACHs41 Accounts Payable – Invoice

Accrual44 Accounts Payable – Invoice

Cancellation50 University Invoice – BAR53 Financial Journal Entry54 Non-Payroll Expenditure

Adjustment Request

11 Annual Operating Budget Appropriation

12 Reappropriation of Prior Year Balances

13 Budget Adjustment Journal14 On-Line Budget Transfer15 Intercampus Budget TransferEN Encumbrance Set-Up,

Increase, Decrease, Release

ML Memo Lien Set-Up, Increase,Decrease, Release

M9 Memo Lien Set-Up (Payroll), Increase, Release

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Sub Codes to Avoid00 Academic Salary01 Staff Salary02 Casual Salary06 Benefits09 Recharge9H Indirect Cost (Overhead)

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Object Codes to Avoid - All Fund Source1XXX All Salary Object Codes8XXX Benefits

Object Code to Avoid – Contracts & Grants Funds

Caution should be exercised and proper documentation is required when transferring expenses to Contracts and Grants funds. A list is provided for the following two categories-www.accounting.ucla.edu, Object Codes for Expenditures:

Unallowable (Fatal) – transaction will not be processed using these object codes. Warning – Warning message will be provided, however, transaction can be processed if appropriate.

NOTE: Edits are implemented in various applications such as BruinBuy, Interdepartmental Recharges, etc…

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Other Exceptions to NoteEquipment transfers should be by line item indicating the P.O. no. in the Reference Column. No lump sum transfer can be accepted.Expense transfers for Financial Aid (Accounts 77XXXX, 78XXXX and 79XXXX) should be processed through Financial Aids and/or Graduate Division using Form 10 or equivalent.

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Systems User Access

OASIS Logon ID RequiredRequest through CAO/DSA on-line at

https://i4w.ais.ucla.edu/ils/login.aspx?izAppId=edu.ucla. ais.sar, under On-Line SAR Form

Windows Based WorkstationMAC OS Version 10.3 or higher JAVA Plug-ins. Instruction how to download http://fsw.ais.ucla.edu/setup

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User Training Requirements

University Accounting Training Register through Staff Development

(extension 40850)On-line Non-Payroll Expenditure Adjustment Request Training

Register through General Accounting.

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Reference: Financial Policies and Procedures, con’td

UC--Accounting ManualOfficial Documentation Required Chapter A-000-7

UC--Business and Finance BulletinUniversity Direct Costing Procedures BFB A-47Academic Support Unit Costing & Billing BFB A-56Costing and Working Capital BFB A-59

UCLA Administrative Policies & Procedures Manual Policy 910 - Management of Sponsored ProjectPolicy 913 - Disposition of Unexpended Balances in Contracts and Grants

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Reference: Financial Policies and Procedures cont’d

Office of Management and Budget Circulars: No. A-21—Cost Principles for Educational InstitutionsNo. A-110—Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit OrganizationsNo. A-133—Audit of States, Local Governments, and Non-Profit Organizations

UC Contracts and Grants Manual

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Reference: Financial Policies and Procedures

UCLA Administrative Policies and Procedures Manualhttp://www.adminpolicies.ucla.edu/

UCLA Financial Policy http://www.accounting.ucla.edu/contents.htm

UC, Accounting Manual http://www.ucop.edu/ucophome/policies/acctman/

UC, Business and Finance Bulletin http://www.ucop.edu/ucophome/policies/bfb/

On-Line Non Payroll Expenditure Adjustment Request

http://www.accounting.ucla.edu“FS Applications” Option

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Click here to accessFinancial Journal Application

Please add this page to your“Favorite”

General Accounting Web Page www.accounting.ucla.edu

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FS Applications Logon Page

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FS Applications Logon Page

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Consolidated Menu for FS ApplicationsFS Applications MENU

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For administration

use only

Non-Payroll Expenditure Adjustment Request Menu

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Menu Description

New by Transaction ID – to retrieve detail transaction(s) by TE, trans. no., FAU, etc.. for transfer.New by FAU Balance—to retrieve balance by FAU from Balance File for transfer (Being phased out).New by Transaction ID (Credit) – to retrieve detail credit transaction (s) by TE, trans. no., FAU, etc.. for transfer. Saved Non-PEAR- Non-PEARs that are prepared and saved by the preparer for future submission. (This can be updated or deleted by the preparer.)Non-PEAR Status – Non-PEAR that is submitted but not yet committed, committed or processed to the General Ledger by the preparer.Non-PEAR Approval – For General Accounting and EFM to approve documents with 120 days and over transactions.Audit Reports – processed Non-PEARs to be retrieved by campus personnel for reference.Review Non-PEAR – Completed Non-PEAR listing for Reviewer.Logout – Sign off from the Non-PEAR Processing System.

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Basic Steps to Follow to Process Non-PEAR Form

Logon to the systemClick on one of the following from the MENU

“New by Transaction ID” for specific transaction “New by FAU Balance” for balance by FAU (being phase out) or“New by Transaction ID (Credit) for specific credit transaction

Select the transaction or balancePost transfer informationValidate for required fields, amounts, FAU and dateSave for later review and submission ORSubmit and defer to commit for later ORCommit submitted document for posting to the General Ledger.

(Saved & Submitted documents can be deleted by the preparer.)

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Basic Steps to Follow to Review On-Line Non-PEAR Form

Logon to the systemClick on Review Non-PEAR from the MENUClick on Review to open documentPerform review procedure

NOTE: Reviewers must be aware that the University Financial Policy requires documents to be reviewed within two (2) business days.

Expense (Cost) Transfers for Transactions 120 Days and Over

Contracts & Grants Funds

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Expense Transfer of Over 120 days

Cost Transfer PoliciesFederal—OMB Circulars, A-21 and A-110University—BUS A-47 V-A and B

When a debit transaction that is over 120 days old is posted to a C & G fund, it requires EFM and/or General Accounting Review and Approval to process the document.

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Expense Transfer of TransactionsOver 120 days cont’d

Thorough Explanation is required to the following questions:

Why the transfer is being made?Why it was originally charged as it was?How it was determined that this expense belongs to the FAU now being charged?Reason for delayed action if adjustment is made after 120 days of original charge?What steps have been taken to prevent re-occurrence?

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Report Parameters for Fund Balances—Fund 31251

EXAMPLE

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Fund Summary – 31251September 2009

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Expenditure-Sub/Object Summary – Fund 31251

September 2009

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Select Transactions from the Detail General Ledger

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Selection Screen – Fund 31251

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Fund No. 31251 – September 2009 Expense Transfers in February 2010

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Fund No. 31251 – September 2009 Expense Transfer in February 2010 cont’d

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Fund No. 31251 – September 2009 Expense Transfer in February 2010

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Completed Non-PEAR – Fund 31521

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Completed Non-PEAR – Fund 31521 cont’d

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Completed Non-PEAR – Fund 31521 cont’d

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This Document is Forwarded to Central Office for Approval.

A Completed Non-PEAR with Over 120 days Approval Request

Provide exhaustive explanation

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Redo with comment

Sample of “Redo” Process

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Document drops from the Approval List when Sent to Preparer to Correct

Sample of “Redo” Process

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E-mail Sent to Preparer to make Corrections

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Saved File

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Sample of “Reject” Process

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Email Message On Rejected Document

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Non-PEAR Approval cont’d

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Sample from Production

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When documents are approved, this is what appears on the “Reviewer” status.

Reviewer Status on Approved Non-PEAR

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Selection Edit Messages

The search found no matching records. Please check your selection criteria.The search returned too many records. Narrow your selection.There is no “reviewer’ setup for the FAU.Access not granted to this FAU. Please contact your DSA.The FAU balance is zero.C & G Funds can only be transferred by Trans ID. From the Menu, choose “New by Trans ID”.

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Trans. ID and TE represent telephone expenses for July 2003 for the whole campus.

Sample of Error Messages and Edits cont’d

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Cute Icons


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Scroll Down


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To transfer travel expenses of FY 0203Selection – By FAU Balance

Red Icon means1. The FAU has zero balance2. There is no reviewer for the FAU3. The prepare does not have

access for this FAU


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New Enhancements

Explanations will be required for each the following questions.

Why the transfer is being made?Why it was originally charged as it was?How it was determined that this expense belongs to the FAU now being charged?Reason for delayed action if adjustment is made after 120 days of original charge?What steps have been taken to prevent re-occurrence?

Transaction Transfers will be done only once.

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New Enhancements cont’d

Document Notifications:Processed and Posted to the ledger will be routed through PAN real time.Approved by EFM will be routed through PAN real time when approved (Prepares will be included in the distribution).For Rejected Documents will also be routed through PAN with explanation.

Preparers will have the capability to e-mail (cc) documents any time during the preparation.Various reports to assist EFM to monitor cost transfers activities effectively.

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General Accounting Web PageClick here to access

Frequently Asked Questions!

Please add this page to your“Favorite”

Always remember that Non-PEAR is Redundant.

Get it done right the first time!!!

Got it!!!

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Any Questions?

You completed the Tutorial forCost TransferOn-Line Non-PEAR Application

To Begin to Process:http://www.accounting.ucla.edu

Click on “FS Applications”

ENJOY

Congratulations!!!

On-Line Non Payroll Expenditure Adjustment Request

Feedback and Questions:

Maaza Woldemusieat

[email protected]

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N-PEAR Cost Transfers

Becky Henricksen, SupervisorEFM

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Non-payroll Cost Transfer System

URL: Traininghttp://www.accounting.ucla.edu/training

URL: System accesshttp://www.accounting.ucla.edu/non-pear

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Sample: Selection Screen Saved Non‐PEAR

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Department’s Responsibility & Submission

Monthly G/L review Critical

Cost transfers prepared within 120 days are automatically processed and will appear in the G/L the next day

If your transaction is over 120 days and/or >90 days after award expiration date, the cost transfer is routed to EFM for further review and approval

If the transaction is moving an expense from a sponsored award to an unrestricted fund it will automatically be processed

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EFM Review Process:

For cost transfers routed to EFM, departments will receive a message that the transfer requires additional review and approval

The preparer has the option whether to change the FAU to an unrestricted fund source, cancel, or proceed for further review

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N-PEAR Cost TransfersThe system allows for three options if you decide to move it forward for review: Approve, Reject or Re-do

Decision to approve by EFM is based on whether:all six policy questions have been addressedReasons for delay is well documentedPI approval was obtained

EFM is committed to review all cost transfers within 3 business days of receipt

Note: if further explanation is necessary send email along with documentation to EFM.Approval notification is received via email

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Reject/Re-do transaction:

Preparer receives an email message when a transaction is rejected

Re-do is a form of rejection, but allows the preparer to view the original transaction as it was submitted, update the cost transfer, and resubmit.

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Unacceptable Transfer Justifications

Cost Transfers used as cost management strategy – to use up remaining balance for a fund that is endingCost Transfers from one sponsored project to another sponsored project to avoid or eliminate overdraftsShortage of Staff – Turnover, out on maternity leaveCost Transfer to bring down the balance of the fundCost Transfer to help other department “survive”Cost Transfer done per instruction of main department to use up balance of account

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Cost Transfer Justifications

Red Flags – requires further explanation or documentation

Transfers in excess of 120 days from doc date or 90 days after fund end datePreviously transferred expense being transferred again to another sponsored fund.Transfers without full justification or explanationHigh volume of cost transfersTransfers between “closely related” projects

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Acceptable Transfer Justifications

Late Award Set Up – should consider use of eRASCorrect bookkeeping or clerical errors (transposition of numbers)Reallocate a portion of cost to other appropriate fund sources.Cost Transfers to the applicable grant year of the same awardPI determines that fund charged was not the fund that benefited from cost; a change in the decision as to the use of goods or servicesExpenses approved through a revised budget or sponsor approvedNo Cost time extension approval delay by sponsorTo redistribute payroll costs based on the after the fact verification of effort reported through ERS

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Audit Finding

During the 2007, A-133 audit, UCLA was sited on its cost transfer practices for lack of support, which lead UCLA to modify the process and pre-review transfers > 120 days

UCLA’s cost transfer practices were reviewed by UCLA Audit & Advisory Services in 2009, in response to UCOP concerns

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Enhancements to N-PEAR Cost Transfer System

Improve notification/verbiage to explain why further approval is necessaryList the six policy questions on screen Store/save rejected data in case of resubmissionDevelop management reports to review cost transfersAbility to upload Justifications and Approvals

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Payroll Cost Transfers

After implementation of the Non-payroll cost transfer system in July 2008, we promised that Payroll would soon follow

Better control mechanismAll transfers are processed

Implementation for the new Payroll Expense Cost Transfer system is scheduled for release March 2010

Schedule training

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Payroll Cost Transfer SystemWeb Expense Transfers

Eugene HarrisonManager, Training and DevelopmentCorporate Financial Services, Payroll

UCLA

PAYROLL SERVICES

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Overview

The Web Expense Transfer allows departments to process single line transfers.It replaces the need to process the “Brown UPAY” because the transaction is not limited to the 18 months permitted on the EDTS screen.Transfers of expenses older than 18 months must be entered manually but more recent expenses will be populated from PPSScheduling the compute into which the transfer will be processed follows the same PPS schedule column called “Last day to submit UPAY 646 Form to Payroll.”

UCLA

PAYROLL SERVICES

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Login ScreenUCLA

PAYROLL SERVICES

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Main MenuUCLA

PAYROLL SERVICES

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Create Expense Transfer UCLA

PAYROLL SERVICES

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Select A Pay CycleUCLA

PAYROLL SERVICES

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Enter ETMO and ET Page Line

From PPP5302

UCLA

PAYROLL SERVICES

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Loading Expense

111111111 BRUIN, JOE

4 111111 1A 11111 2

4 111111 1A 11111 7 -833.33

Employee was paid from wrong sub. Preparer was not informed of need to pay from sub 07. Transfer approved by PI. Fundsallocated in sub 07. Waited for PPP5302 to be run. Preparer informed of allocation in sub 07 and has corrected EDB.

UCLA

PAYROLL SERVICES

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PAN NoticeUCLA

PAYROLL SERVICES

111111111 BRUIN, JOE

4 111111 1A 11111 2

4 111111 1A 11111 7

Employee was paid from wrong sub. Preparer was not informed of need to pay from sub 07. Transfer approved by PI. Fundsallocated in sub 07. Waited for PPP5302 to be run. Preparer informed of allocation in sub 07 and has corrected EDB.

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Search FeatureUCLA

PAYROLL SERVICES

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Search ChoicesUCLA

PAYROLL SERVICES

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Sample Search Result

111111111

111111

111111 -19900-

UCLA

PAYROLL SERVICES

BRUIN, JOE

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Maurice Taylor, Assistant DirectorEFM

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View Transfer

BRUIN, JOE

111111112 NHILE, INDE

111111111111 19900

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Review Procedure

Expense transfers that meet the criteria listed will be placed in a Transaction Holding File (THF).

The criteria are:a. Does the transfer fall into the 120 day Rule?b. Is this a Contract and Grant fund?c. Is it a Contract and Grant fund and is its end date over 90 days before the scheduled pay cycle end date?

The transfers that go into the THF will be reviewed and approved by EFM.If the transfers are not approved in time to be processed in the compute selected, the transaction will have to be reentered by the department.

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Sample Edit Messages

* Invalid transfer-to Fund: Fund ended over 90 days from pay cycle date * Invalid transfer-to Fund: Loc/Fund not found. * Invalid transfer-to FAU account * This transfer involves a contract/grant fund that is over 120 days old.* Transfer-to gross plus previously transferred gross exceeds original.* Pending approval.

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Department’s Responsibility & Submission

Monthly G/L review Critical:

Cost transfers within 120 days will be processed without EFM review

Cost Transfers > 120 days and/or 90 days past the fund expiration date will be routed to EFM for further review and approval

If the transaction is moving an expense from a sponsored award to an unrestricted fund it will automatically be processed

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EFM Review Process

For payroll cost transfers routed to EFM, departments will receive a message that additional review and approval is required

The preparer will have the option whether to, change the FAU to an unrestricted fund source, cancel, or move it forward

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Loading Expense

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Payroll Cost Transfer

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The system allow two options for the EFM reviewer:

Approve and RejectDecision to approve is based on whether:

All six policy questions have been addressedReason for delay is well documentedPI approval was obtainedIf additional documentation needed contact EFM representative

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Rejected transaction notifications shall be received when the transfer has been rejected via email.

Rejected transfers will include a message explaining why the transaction was rejected.

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Selecting a pay-compute:

Unlike Non-payroll submission, payroll processing is subject to deadlines.

Submission of transfers >120 days must be submitted by the cut-off, otherwise the transaction expires.

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Select A Pay Cycle

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Enhancements to Payroll Cost Transfers

Indicate whether transactions under review are >120 days or >90 day from expirationAutomatic carry-over expired transactions to next pay-compute cycleSort pending approval file by Sponsor typeDevelop management reports to review cost transfers

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Cost Transfers

Questions?