Policies & Procedures


 

Section: C&G
Part: PRO
Statement No.: 4.4.1
Date: 12/20/10
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Direct Costs - Transfers and Adjustments

 

It is the responsibility of the work unit to perform pre-audit reviews of all expenditures to prevent the need for reclassifications after-the-fact.  Contract and grant accounts must be reconciled on a monthly basis to ensure only allowable costs are charged to the account.  If the monthly reconciliation process reveals that an unallowable charge needs to be removed from an account or a charge needs to be applied to the correct expenditure account, the reclassification is initiated by the departmental bookkeeper in the work unit, approved by the Principal investigator and routed to Contracts and Grants Accounting for review and approval.  Contracts and Grants Accounting may consult with the Director of Sponsored Programs on the allowability of reclassifications.

 

The form 60JV is used to record the cost transfer with the following fields:

  • Debit – Account/Object Code/Ref. No.
  • Description of Transaction
  • Credit – Account/Object Code/Ref. No. 

Required documentation for the reclassification:

  • A copy of the original source documentation (i.e. PD 109, timesheet, travel authorization/reimbursement, PO/Invoice/DPV).
  • A description of the original charge and justification for the reclassification.
  • The justification must provide enough information so internal or external parties understand the reason for the reclassification.
     

The departmental bookkeeper signs as preparer and the principal investigator signs as approver.

 

Reclassifications within the salary and fringe benefit object codes carry implications for time and effort reporting.  Time and effort records capture after the fact certification of actual effort as reflected in the payroll records of UNC-GA.  If reclassifications involve salary and fringe benefit expenditures, any approved adjustment must be reflected in the Time and Effort report records. 

 

Reclassifications for employees currently subject to T/E reporting:

Once the approved reclassification of salary and fringe benefits have been processed and posted to the accounting system, the Departmental Bookkeeper will request the time and effort report for the reporting period in question.  The subject employee will recertify the report to show the actual distribution of effort as reflected in the payroll records after the reclassification.

 

Reclassifications for employees not currently subject to T/E reporting:

Once the approved reclassification of salary and fringe benefits have been processed and posted to the accounting system, the Departmental Bookkeeper will prepare the T/E set up/change form for the PI’s approval.  The set-up form is routed to Contracts and Grants Accounting for review and approval.  Contracts and Grants Accounting may consult with the Director of Sponsored Programs on the allowability of the requested action.  Contract and Granta Accounting will produce effort reports for the period in question showing the distribution of actual effort as reflected in the payroll records after the reclassification.

 

Reclassifcations must be submitted with complete documentation and approved within 90 days of the original charge.   Submission of reclassifications later than 90 days requires the approval of the Division Vice President, the Director of Sponsored Programs, and the Associate Vice President for Finance and Services Officer.