[pps-news] New Cost Transfer Business Rules

[Roberta Nardico]

October 26, 2009

 

TO:  PPS Users

 

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Dear Campus Community,

 

In response to several factors, but most importantly to repeat University of California (UC) A-133 federal compliance audit findings on untimely cost transfers, UCR must inhibit delinquent cost transfers involving contract and grant funds.

 

By way of background, please note that UC Business & Finance Policy A-47 was recently revised to reiterate the importance of accurately coding the Full Accounting Unit (FAU) on all transactions and promptly processing corrections when required.  The system enhancements outlined in this memo are part of continuing campus efforts to adhere to UC policies and reduce the need for cost transfers as well as ensure errors are detected quickly to facilitate prompt adjustments.

 

Given the aforementioned audit findings, policy amendments, and federal compliance mandates, the Financial Systems Steering Committee (FSSC) has requested that Computing & Communications (C&C) modify both the Federal (Non-Payroll) Cost Transfer (FCT) and Non-Payroll (Non-Federal) Cost Transfer (NCT) applications.  These modifications will prevent the transfer of transactions 120 days and older involving contract and grant funds.  The FCT and NCT applications will also inhibit transfers of previously transferred costs.  The Payroll Personnel System (PPS) will similarly inhibit cost transfer by preventing the transfer of payroll transaction 120 days and older to contract and grant funds.  

 

These system enhancements will be placed into production on December 1, 2009.  Therefore, it is vitally important that departments continue to initially code transactions to the correct FAU, reconcile and certify departmental ledgers per campus guidelines and timelines, and review financial activity recorded under contract and grant funds promptly.  Departments and organizational units should ensure all required cost transfers are completed within the 120 day eligibility period and utilize the campus pre-awards process when applicable to eliminate the need for cost transfers.  

 

Please note that requests for exceptions must fully document the circumstances causing the delay as well as the cause of the error.  Exceptions must be approved by the Principal Investigator, Department Chair/Head, Organizational CFAO, the campus Controller and the Vice Chancellor of Finance & Business Operations.  Requests for exceptions will be granted infrequently given the aforementioned University policy and compliance requirements.  

 

Thank you for your attention to this pressing issue.  The changes to campus systems outlined above represent UCR's commitment to comply with federal regulations and University policy.  Please address questions or comments to Steve Wilson, Director of Accounting Services (steve.wilson at ucr.edu).  

 

Bobbi McCracken

Associate Vice Chancellor-Financial Services & Controller

 

 

 

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Additional notes relating to campus systems involving transfers of expenditures more than 120 days old involving contract and grant funds.

 

1.                  The FCT and NCT application will prohibit a cost to be moved to ANY contract and grant fund if the original transaction was posted more than 120 days ago. Departments will be allowed to transfer costs off (from) a contract and grant fund to an unrestricted fund sources.  The PPS cost transfer application will function in a similar fashion.  The impacted funds fall under the following UCRFS fund tree nodes in the Golden Trees:

 

.                     120-2080-3060-State Agencies

.                     120-210-3101-Local Government

.                     120-2110-3110-Federal Appropriations

.                     120-2110-3120-Federal Grants

.                     120-2110-3130/3140-Federal Contracts 

.                     120-2130-3170-Private Grants

.                     120-2130-3180-Private Contracts

 

2.                  Additionally, previously transferred costs may not be transferred a second time to any fund.  However, please note that partial transfers are allowed; it is permissible to transfer $75 from a transaction of $100 and then perform a subsequent transaction (later) against the remaining $25 (provided all transfers are within 120 days of the original posting date).  

 

 

 

 

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