Cost Transfers - Research

Cost Transfers
Maaza Woldemusie – General Accounting
Becky Henricksen - EFM
Eugene Harrison – Payroll
Maurice Taylor – EFM
2
Please Turn Off all Cellular
Phones and Noise Making
Devices
2
On-Line Non Payroll Expenditure
Adjustment Request Form
3
Web Application
Maaza Woldemusie, Manager
General Accounting
Table of Contents
4

Preparers’/Reviewers’ Responsibilities
Preparers’ Responsibilities
Reviewers’ Responsibilities
Procedures and Guidelines
Helpful Hints
System User Access Requirements
User Training Requirements
Reference: Financial Policies & Procedures
Non-Payroll Expenditure Adjustment Request Form
Descriptions
Logon ID and Password
Menu and Description
Steps to Complete Document
(EMPHASIS – Transactions Over 120 days)

Table of Contents cont’d
5

Saving/Retrieving Documents

Sample of Error Messages and Edits

Preparer
Reviewer
Selection—Transaction or Balance
Document
Full Accounting Unit
Value (amount)
Period (date)
Help
Help!!
Preparers’ Responsibilities
6

The Preparer

Must 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.
Preparers’ Responsibilities cont’d
7

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.

Reviewers’ Responsibilities
8

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.
Additional Responsibilities for
Preparers and Reviewers
9

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

Purchasing/Accounts Payable System (PAC)
Recharge Units
Corporate Financial System
Billing and Accounts Receivable System
Financial Aid System (thru BAR) (future)
Procedures and Guidelines for
Preparing and Reviewing Non-PEAR
10

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.
Procedures and Guidelines for Preparing
and Reviewing Non-PEAR cont’d
11

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

FAU
Document Date
Type Entry
Transaction No.
Description
Reference No.
Amount
Procedures and Guidelines for Preparing
and Reviewing Non-PEAR cont’d
12

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.
Procedures and Guidelines for Preparing
and Reviewing Non-PEAR cont’d
13

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.)
Helpful Hints in Preparing NonPEAR
14

Type Entries Valid for Non-PEAR

33
34
35
41
44
50
53
54

Cash Deposit-Main Cashier Murphy
Cash Deposit-Main Cashier Other Stations
Income Wire Transfers, ACHs
Accounts Payable – Invoice Accrual
Accounts Payable – Invoice Cancellation
University Invoice – BAR
Financial Journal Entry
Non-Payroll Expenditure Adjustment
Request
On-Line Recharge Billing
Helpful Hints in Preparing
Non-PEAR cont’d
15

Exception to the above:
53
Financial Journal Entry

70
Payroll Transactions
Overhead Assessment
Helpful Hints in Preparing
Non-PEAR cont’d
16

Type Entries to Avoid

11
12
13
14
15
EN
ML
M9
Annual Operating Budget Appropriation
Reappropriation of Prior Year Balances
Budget Adjustment Journal
On-Line Budget Transfer
Intercampus Budget Transfer
Encumbrance Set-Up, Increase, Decrease, Release
Memo Lien Set-Up, Increase, Decrease, Release
Memo Lien Set-Up (Payroll), Increase, Release
Identify the Nature of the Activity
17
33 Cash Deposit-Main Cashier
Murphy
34 Cash Deposit-Main Cashier
Other Stations
35 Income Wire Transfers, ACHs
41 Accounts Payable – Invoice
Accrual
44 Accounts Payable – Invoice
Cancellation
50 University Invoice – BAR
53 Financial Journal Entry
54 Non-Payroll Expenditure
Adjustment Request
Annual Operating Budget
Appropriation
12 Reappropriation of Prior Year
Balances
13 Budget Adjustment Journal
14 On-Line Budget Transfer
15 Intercampus Budget Transfer
EN Encumbrance Set-Up,
Increase,
Decrease, Release
ML Memo Lien Set-Up,
Increase,Decrease, Release
M9 Memo Lien Set-Up (Payroll),
Increase, Release
11
Helpful Hints in Preparing
Non-PEAR cont’d
18

Sub Codes to Avoid
00
01
02
06
09
9H
Academic Salary
Staff Salary
Casual Salary
Benefits
Recharge
Indirect Cost (Overhead)
Helpful Hints in Preparing
Non-PEAR cont’d
19

Object Codes to Avoid - All Fund Source

1XXX
8XXX
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 categorieswww.accounting.ucla.edu, Object Codes for Expenditures:

All Salary Object Codes
Benefits
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…
Helpful Hints in Preparing
Non-PEAR cont’d
20

Other Exceptions to Note

Equipment 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.
Systems User Access
21

OASIS Logon ID Required

Request 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 Workstation
MAC OS Version 10.3 or higher
JAVA Plug-ins. Instruction how to download
http://fsw.ais.ucla.edu/setup
User Training Requirements
22

University Accounting Training
Register through Staff Development
(extension 40850)
On-line Non-Payroll Expenditure
Adjustment Request Training
Register
through General Accounting.
Reference: Financial Policies
and Procedures, con’td
23

UC--Accounting Manual

Chapter A-000-7
UC--Business and Finance Bulletin

Official Documentation Required
University Direct Costing Procedures
Academic Support Unit Costing & Billing
Costing and Working Capital
BFB A-47
BFB A-56
BFB A-59
UCLA Administrative Policies & Procedures Manual

Policy 910 - Management of Sponsored Project
Policy 913 - Disposition of Unexpended Balances in Contracts and
Grants
Reference: Financial Policies
and Procedures cont’d
24

Office of Management and Budget Circulars:

No. A-21—Cost Principles for Educational
Institutions
No. A-110—Uniform Administrative
Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals, and
Other Non-Profit Organizations
No. A-133—Audit of States, Local
Governments, and Non-Profit Organizations
UC Contracts and Grants Manual
Reference: Financial Policies
and Procedures
25

UCLA Administrative Policies and Procedures Manual
http://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
General Accounting Web Page
www.accounting.ucla.edu
27
Please add this page to your
“Favorite”
Click here to access
Financial Journal Application
FS Applications Logon Page
28
FS Applications Logon Page
29
FS Consolidated Menu for FS Applications
Applications MENU
30
Non-Payroll Expenditure Adjustment
Request Menu
31
For administration use only
Menu Description
32
9
9
9
9
9
9
9
9
9
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.
Basic Steps to Follow to Process
Non-PEAR Form
33

Logon to the system
Click 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 balance
Post transfer information
Validate for required fields, amounts, FAU and date
Save for later review and submission OR
Submit and defer to commit for later OR
Commit submitted document for posting to the General Ledger.

(Saved & Submitted documents can be deleted by the preparer.)
Basic Steps to Follow to Review
On-Line Non-PEAR Form
34

Logon to the system
Click on Review Non-PEAR from the MENU
Click on Review to open document
Perform 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
Expense Transfer of
Over 120 days
36

Cost Transfer Policies
Federal—OMB
Circulars, A-21 and A-
110
University—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.
Expense Transfer of Transactions
Over 120 days cont’d
37

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 reoccurrence?
Report Parameters for Fund Balances—
Fund 31251
38
EXAMPLE
Fund Summary – 31251
September 2009
39
Expenditure-Sub/Object Summary – Fund
31251
September 2009
40
Select Transactions from the Detail General Ledger
41
Selection Screen – Fund 31251
42
Fund No. 31251 – September 2009 Expense
Transfers in February 2010
43
Fund No. 31251 – September 2009 Expense
Transfer in February 2010 cont’d
44
Fund No. 31251 – September 2009 Expense
Transfer in February 2010
45
Completed Non-PEAR – Fund 31521
46
Completed Non-PEAR – Fund 31521 cont’d
47
Completed Non-PEAR – Fund 31521 cont’d
48
A Completed Non-PEAR with Over 120 days
Approval Request
49
Provide
exhaustive
explanation
This Document is Forwarded to Central Office for Approval.
Sample of “Redo” Process
50
Redo with
comment
Sample of “Redo” Process
51
Document drops from the
Approval List when Sent to
Preparer to Correct
E-mail Sent to Preparer to make Corrections
52
Saved File
53
Sample of “Reject” Process
54
Email Message On Rejected Document
55
Non-PEAR Approval cont’d
56
Non-PEAR Approval cont’d
57
Non-PEAR Approval cont’d
58
Non-PEAR Approval cont’d
59
60
Sample from Production
Reviewer Status on Approved Non-PEAR
61
When documents are approved, this is what appears on the “Reviewer” status.
Selection Edit Messages
62

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”.
Sample of Error Messages and Edits cont’d
63
Trans. ID and TE represent telephone
expenses for July 2003 for the whole campus.
Sample of Error Messages and Edits cont’d
64
Sample of Error Messages and Edits cont’d
65
Cute Icons
Sample of Error Messages and Edits cont’d
66
Sample of Error Messages and Edits cont’d
67
Scroll Down
Sample of Error Messages and Edits cont’d
68
Sample of Error Messages and Edits cont’d
69
Sample of Error Messages and Edits cont’d
70
Red Icon means
1. The FAU has zero balance
2. There is no reviewer for the FAU
3. The prepare does not have
access for this FAU
To transfer travel expenses of FY 0203
Selection – By FAU Balance
New Enhancements
71

Explanations will be required for each the following
questions.

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.
General Accounting Web Page
Click here to access
73 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!!!
Any Questions?
75
Congratulations!!!
You completed the Tutorial for
Cost Transfer
On-Line Non-PEAR Application
To Begin to Process:
http://www.accounting.ucla.edu
Click on “FS Applications”
ENJOY
On-Line Non Payroll Expenditure
Adjustment Request
Feedback and Questions:
Maaza Woldemusie
at
[email protected]
78
N-PEAR Cost Transfers
79

Becky Henricksen, Supervisor
EFM
N-PEAR Cost Transfers
80

Non-payroll Cost Transfer System

URL: Training

http://www.accounting.ucla.edu/training
URL: System access

http://www.accounting.ucla.edu/non-pear
Sample: Selection Screen Saved Non‐PEAR
82
N-PEAR Cost Transfers
83

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
N-PEAR Cost Transfers
84

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
N-PEAR Cost Transfers
86

The 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 addressed
Reasons for delay is well documented
PI 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

N-PEAR Cost Transfers
87

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.
Unacceptable Transfer
Justifications
89

Cost Transfers used as cost management
strategy – to use up remaining balance for a
fund that is ending
Cost Transfers from one sponsored project to
another sponsored project to avoid or eliminate
overdrafts
Shortage of Staff – Turnover, out on maternity
leave
Cost Transfer to bring down the balance of the
fund
Cost Transfer to help other department “survive”
Cost Transfer done per instruction of main
department to use up balance of account
Cost Transfer Justifications
90

Red Flags – requires further explanation or
documentation

Transfers in excess of 120 days from doc date
or 90 days after fund end date
Previously transferred expense being
transferred again to another sponsored fund.
Transfers without full justification or
explanation
High volume of cost transfers
Transfers between “closely related” projects
Acceptable Transfer
Justifications
91

Late Award Set Up – should consider use of eRAS
Correct 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
award
PI determines that fund charged was not the fund that
benefited from cost; a change in the decision as to the use
of goods or services
Expenses approved through a revised budget or sponsor
approved
No Cost time extension approval delay by sponsor
To redistribute payroll costs based on the after the fact
verification of effort reported through ERS
N-PEAR Cost Transfers
92

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
Enhancements to N-PEAR Cost
Transfer System
93

Improve notification/verbiage to explain why
further approval is necessary
List the six policy questions on screen
Store/save rejected data in case of
resubmission
Develop management reports to review cost
transfers
Ability to upload Justifications and Approvals
Payroll Cost Transfers
94

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

Better control mechanism
All transfers are processed
Implementation for the new Payroll Expense
Cost Transfer system is scheduled for
release March 2010

Schedule training
Payroll Cost Transfer System
Web Expense Transfers
95
Eugene Harrison
Manager, Training and Development
Corporate Financial Services, Payroll
UCLA
PAYROLL SERVICES
UCLA
Overview
PAYROLL SERVICES
96

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 PPS
Scheduling 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
Login Screen
PAYROLL SERVICES
97
UCLA
Main Menu
PAYROLL SERVICES
98
UCLA
Create Expense Transfer
PAYROLL SERVICES
99
UCLA
Select A Pay Cycle
PAYROLL SERVICES
100
Enter ETMO and
ET Page Line
101
From PPP5302
UCLA
PAYROLL SERVICES
UCLA
Loading Expense
PAYROLL SERVICES
102
111111111
4
BRUIN, JOE
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. Funds
allocated in sub 07. Waited for PPP5302 to be run. Preparer
informed of allocation in sub 07 and has corrected EDB.
UCLA
PAN Notice
PAYROLL SERVICES
103
111111111
4
BRUIN, JOE
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. Funds
allocated in sub 07. Waited for PPP5302 to be run. Preparer
informed of allocation in sub 07 and has corrected EDB.
UCLA
Search Feature
PAYROLL SERVICES
104
UCLA
Search Choices
PAYROLL SERVICES
105
UCLA
Sample Search Result
PAYROLL SERVICES
106
111111111
BRUIN, JOE
111111
111111
-19900-
Payroll Cost Transfers
107

Maurice Taylor, Assistant Director
EFM
View Transfer
108
BRUIN, JOE
111111112
NHILE, INDE
111111
111111
19900
Review Procedure
109

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.
Sample Edit Messages
110

* 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.
Payroll Cost Transfers
111

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
Payroll Cost Transfers
112

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
Payroll Cost Transfers
113
Loading Expense
114
Payroll Cost Transfer
115
116
Payroll Cost Transfers
117

The system allow two options for the
EFM reviewer:
Approve
and Reject
Decision to approve is based on
whether:
All six policy questions have been addressed
Reason for delay is well documented
PI approval was obtained
If additional documentation needed contact
EFM representative

Payroll Cost Transfers
118

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.
Payroll Cost Transfers
119
Payroll Cost Transfers
120

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.
Select A Pay Cycle
121
Enhancements to Payroll
Cost Transfers
123

Indicate whether transactions under
review are >120 days or >90 day from
expiration
Automatic carry-over expired
transactions to next pay-compute cycle
Sort pending approval file by Sponsor
type
Develop management reports to review
cost transfers
Cost Transfers
124
Questions?

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Cost Transfers - Research

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