Transfers of costs are used to correct after-the-fact expense transactions on the general ledger. Expenses can be reallocated between spend categories within a Grant Worktag or between multiple Driver Worktags (Project, Program, Gift, and Grant), as long as this complies with the agreement’s terms and conditions. The Sponsored Projects Accounting (SPA) office is responsible for approving such transfers if they involve at least one sponsored Grant Worktag.
Note: Transfers of costs are subject to agency audit. Any submissions without proper justification will not be approved, and SPA will transfer the costs to the dean’s clearing Driver Worktag.
Cost transfers (also known as Expense Transfers) must be completed within 90 days (or less, depending on the agreement) of discovery of the error but no later than 15 days after budget termination. In addition, the expenses must be allowable, allocable and reasonable on the receiving Grant Worktag. Failure to comply or provide proper justification may delay the timeliness of invoices and expenditures reports, impeding reimbursement and jeopardizing future sponsored project funding.
You cannot transfer an overdraft amount into a Grant Worktag unless the exact amount corresponds to a transaction in the general ledger and benefits the receiving Grant Worktag.
You cannot transfer expenses just to use up an unexpended balance in the Grant Worktag.
Should the Grant Worktag be expired upon the cost transfer submission, provide a comment and attach any supporting documentation of the No Cost Extension or Date Extension approval on the Workday Payroll Accounting Adjustment or Accounting Journal submission.
Accounting Journal for Cost Transfers (formerly known as Non-Payroll Expense Transfers)
Accounting Journals for Cost Transfers (formerly known as Non-Payroll Expense Transfers/NPET) are used to reallocate non-salary/wage costs.
To submit such a transfer to/from a Grant Worktag, complete the Workday Accounting Journal (click link for QRG).
These transfers must be submitted two business days prior to the Office of Comptroller’s Kuali General Journal Voucher deadline. If the request is not finalized before the due date, the transfer will be posted in the subsequent month and may require additional justification documentation.
Payroll Accounting Adjustments (formerly known as Payroll Expense Transfers)
Payroll Accounting Adjustment (PAA) formerly known as Payroll Expense Transfers (PET) are used to reallocate costs related to salary and wages. These transfers must be submitted electronically through the Payroll Accounting Adjustment task in Workday.
SPA will review PAAs not related CTO, Work-Study, and Cost Share Grant Worktags. If the Grant Worktag has a status of Closed, Closeout in Progress, Final Reconciliation, Freeze, or Void, the PAA will route to SPA for review and approval including those derived from Effort Certification.
Note: PAA submissions must be submitted shortly after initiation. Delay will increase audit risk and the likelihood of disapproval from SPA.
- If the Grant Worktag expired within the bi-weekly pay period, any payroll expenses incurred after the award line/Grant Worktag end date must be transferred into either a continuation Grant Worktag or a non-sponsored Driver Worktag (Program, Project, or Gift).
- For overtime pay, you must attach documentation of the sponsor’s approval.
- For overload pay, you must obtain approval from the Office of Financial Analysis.
- Meal and rest period sanctions are not allowed on grants.
- To check the PAA’s status, go to Process History tab on the submitted PAA in Workday.
Other Internal Transfers
Spend Category Corrections (formerly known as Object Code Corrections)
The Accounting Journal (click link for QRG) task in Workday will be used to process spend category corrections. This is used to reallocate charges from the incorrect spend category. Refer to the sponsor-awarded agreement to determine expense allowability.
These corrections must be submitted two business days prior to the Office of Comptroller’s Kuali General Journal Voucher deadline.
Internal Journal Vouchers
In Kuali, Internal Journal Vouchers include internal requisitions and internal billing. The department providing the service invoices the requester once service is completed. The requester then pays for the service via internal requisition journal voucher. Internal billing journal vouchers are used to disperse costs to the appropriate Driver Worktag (Program, Project, Gift, or Grant). These costs may include healthcare, catering, rental/lease, computer usage and licensing/agreement renewal costs. Now internal requisitions and internal billing will be submitted through Accounting Journal entries or Internal Service Delivery (ISD) in Workday.
SPA Internal Journal Vouchers
If your department identifies an overdraft or unallowable expense, you may submit a spend category correction or accounting journal for cost transfer (formerly known as NPET). Department is responsible for reconciling their awards. If SPA identifies any overdraft or unallowable expense during our monthly assessment, we will notify the award/Grant Worktag’s Grant Manager. If no action is taken, SPA will transfer the amount into your dean’s revenue center Driver Worktag and it will be your responsibility to clear these items with your dean. Thus, it is vital that you review your awards/Grant Worktags every month.