· To provide a best practice for determining when sponsored projects
should be rebudgeted and how to rebudget them.
· Sponsored Project Manual (Research Services) http://www.upenn.edu/researchservices/spmanual/index.html
REASON FOR PROCEDURE
· To bring grant budgets into conformity with revised planned expenditures.
WHO SHOULD BE KNOW THIS PROCEDURE
· Center and Institute Directors
· Department Chairs
· School of Medicine Administration
· School of Medicine Faculty/Investigators
· Business Administrators
· Office of Research Support Services
· Penn Research Services
· Specific circumstances which may require budget reallocations:
1. When the Principal Investigator (PI) determines that expenditures are
required for items not anticipated in the proposed budget.
2. When the transaction results in a shift between categories that incur
indirect costs, and those that do not. In this case, be sure to rebudget
between the direct and indirect costs, as well as between the direct cost
3. When costs will be incurred in a category that was not in the original
budget. For example, equipment was not included in the budget, but a piece
of specialized equipment, necessary to perform the research, is purchased.
4. When an increase in a subcontract/consortium agreement results in the
total agreement for the project period exceeding the $25K threshold.
· Budget reallocations involve moving funds from one budget category
to another without increasing the total amount of the award. Depending
on the sponsor and type of award, the procedure for reallocating budgets
· Types of Budget Reallocations
1. Federal Grants Awarded under the Federal Demonstration Project
If the budget reallocation constitutes a change in project scope, permission
of the sponsor is required for all FDP agencies. For the NIH, significant
rebudgeting means that a single direct cost category changes more than
25 percent of the total award or $250,000, whichever is less.
2. Federal Grants not Awarded under the Federal Demonstration Project
but Awarded under Expanded Authorities
Most federal agencies have waived cost-related prior approvals and allow
an institution to decide minor budget changes under expanded authorities.
Under expanded authorities, significant rebudgeting means that a single
direct cost category changes more than 25 percent of the total award or
$250,000, whichever is less. These expanded authorities are automatically
in force for grants that support research, but they do not apply to contracts.
3. Awards from Private Foundations
Each foundation will have its own rules for rebudgeting. Some will allow
rebudgeting within categories up to a certain percentage or dollar limit.
Some will allow rebudgeting within categories so long as particular categories
are not increased. Most will require the written permission of the sponsor
outside the stated limits.
Conform to the specific language of the contract.
· Consult with the PI to determine if rebudgeting is needed. Write
a brief summary explaining why this rebudgeting action is needed and how
it will benefit the grant.
· Refer to the terms and conditions of the award, the original
budget and the sponsor's guidelines to determine if the proposed rebudgeting
action is allowable. If under FDP, verify that the rebudgeting does not
exceed 25% of the original budget.
· If the proposed budget reallocation is allowable, determine whether
it is within the institution's authority or if the permission of the sponsor
· If the proposed budget reallocation is within the institution's
authority, initiate a FinMIS budget journal.
· If the proposed budget reallocation requires the permission of
the sponsor, the principal investigator must write a letter to the sponsor
stating clearly what budget reallocation is proposed and how that reallocation
will benefit the project. This letter should be countersigned by Research
Services. Select sponsors require institutional approval.
· When the sponsor's permission is obtained, initiate a FinMIS
· In all cases, retain the original authorization from the sponsor
or the PI's justification for the department grant file. Forward a copy
of the sponsor's authorization of PI's request to Research Services for
inclusion in the grant file. This will avoid many problems when it is
time to close out the grant.
· Print the budget journal worksheet and have PI sign.
· Verify the budget, either online or by printing off a report.
· Entering the journal entry into FinMIS
1. Go to https://titan.isc-seo.upenn.edu:8001/OA_HTML/US/ICXINDEX.htm
2. Click to Enter the Business Enterprise Network
3. Enter your username and password, then [Connect]
4. Choose the GL Budget Entry (Secured) GUI responsibility
5. Double click on Budget Journal
6. Enter Batch Name using the batch naming convention (xxxx.zzz.mm/dd/yy.nn)
7. Balance Type should be "B," display only
8. Budget defaults to "Operating"
9. Fiscal Year defaults to current fiscal year (may need to change fiscal
year; enter budget for grant/contract into first full accounting period
of the award)
10. Period defaults to the current open period (enter budget for grant/contract
into first full accounting period of the award)
11. Select appropriate category (Click on Edit>LOV or LOV Toolbar icon,
or type in 20 Budget New Account, 21 Budget Increase, 22 Budget Reallocation,
or 23 Budget Decrease)
12. Source, display only
13. Posting Status, display only
14. Funds Status, display only
15. Enter a description for the journal entry
16. Enter a control total (if the control total matches the greater of
total debits or total credits entered, the journal will post automatically)
17. Select a line description default (selecting 'Object Code' will populate
the line description field with the Object Code description; selecting
'Description' will populate the line description field with the description
for the JE; selecting 'Both' will populate the line description field
with the object code description AND the description of the JE)
18. Click on [Find Accounts] and enter a fund number. Enter an ORG ONLY
when the fund number begins with zero. Other segments are optional; when
used, enter all digits of the segment(s) (no wildcards).
19. After completing the search parameter(s), click [OK].
20. Click on [Find] in the Find Accounts window.
21. The lines will automatically be populated in your batch with the account
numbers that match the search criteria.
22. Complete the debit/credit amount for each line that you want to budget.
Be sure to tab out of the amount fields to update the journal. You won't
need to delete lines that you don't want to budget.
23. Click on [Recalculate] to make sure that the Total Budget amount displayed
is correct for each occurrence of the account combination in the batch.
24. Click on Action>Save, or the save button on the toolbar.
25. Click on Check Funds
26. Click on Reserve Funds
· Departmental Business Administrators
· Department Chair
· Office of Research Support Services
· Research Services
FORMS AND ATTACHMENTS
· Website for Budget Journal Entry Form: (ORSS)