· Principal Investigators and Business Administrators should review
accounts for overdrafts on a monthly basis. Refer to Monthly Reconciliation
of Accounts SOP.
· The Principal Investigator and Business Administrator should
resolve the correct account combination for any cost transfers. Care should
be taken when determining an account to which costs will be transferred.
Research programs must directly benefit from the cost being transferred,
· Any costs being transferred to sponsored project accounts must
be allowable, allocable, and reasonable.
· The transfer of an overdraft or any direct cost items incurred
in the conduct of one sponsored project may not be transferred to another
sponsored project account merely for the sake of resolving a deficit or
an allowability issue.
· Once the Principal Investigator has approved the charge, the
appropriate cost transfer can be completed. Transfers must be supported
by documentation which contains a full explanation of how the error occurred
and show how the charge benefits the project or is related to the project
to which the transfer is being made.
· When cost sharing an overdraft at the time of the close of the
award, have your research accountant enter the transaction and write it
off to the appropriate designated fund identified and supplied by your
department/center/institute. Refer to Cost Sharing SOP.
· If the account is frozen, contact ORSS (firstname.lastname@example.org)
with a detailed worksheet of costs to be transferred to have the account
unfrozen. Refer to Unfreeze SOP.
· The Business Administrator should contact Research Services to
check the final resolution of the account, and to have the fund disabled.
· Each month, Business Administrators need to identify funds that
are in deficit. Refer to Reports SOP for appropriate reports.
· Determine if overrun costs are appropriate for the fund.
o If so, Business Administrator with the Principal Investigator and
appropriate departmental administrative personnel should identify the
account that will cost share the charges. Prepare and enter manual journal
entry for cost sharing after approval of written documentation by the
o If not, Business Administrator should identify the appropriate fund
for the cost transfers with Principal Investigator. The charges must
be allowable, allocable, and reasonable to the project to which the
expenses are being transferred.
· Entering the journal entry into FinMIS for cost transfers
G/L Journal Entry - General Responsibility
1. Select: \ Navigate Journals Enter
2. Batch Zone
->Follow the batch naming convention in the FinMIS Reference Manual.
Be sure to begin with the ORG, use three capital initials and include
the year. For example: 4000.ABC.12/12/00.01
3. Journal Entry Zone: Enter the Name (same as in Batch Zone)
4. Select Category "07" Grant and Contract Adjustments
5. Description of the entry is cost sharing for EBs, for e.g.
6. Press Tab through the Journal Entry Zone until you reach the Context
7. Context field: Use Quick Pick and select Cost Sharing.
8. Type of Adjustment field: Use Quick Pick and select Correction of
9. Reason field: explain whether voluntary or mandatory cost sharing.
10. Additional Comments: Complete only if necessary to adequately explain
11. In the Journal Entry Lines Zone: Complete the Accounting Flexfield
12. Enter the appropriate debits and credits
13. When you have completed all necessary fields, press [Ctrl S]. Check
and Reserve the funds.
· If the project is ongoing, Business Administrators should
not approve any additional transactions while account is in deficit.
To avoid any further deficit, the Business Administrator should freeze
the account until the next budget increment is received.
· Once overdraft is resolved and if the budget period ended and
the final report submitted, Business Administrators should monitor the
account to ensure it was disabled (check one time weekly).
If a non-competing segment is anticipated, consider completing an Account
Continuation Request Form authorizing expenditures up to 25% of the next
budget segment. Forms are available at http://www.upenn.edu/researchservices/rs/forms.html
· Departmental Business Administrators
· Department Chairs
· Office of Research Support Services
· Penn Research Services
· Office of the Comptroller
FORMS AND ATTACHMENTS
Manual journal entry template http://www.med.upenn.edu/research/penn/formag.htm
· Agency policy should be reviewed before any cost transfers are
completed to ensure that all transfers are proper and allowable to the
· The FinMIS 115 (Grant Fund Summary Report) shows the actual unallowable
or overdraft amounts relative to the actual awarded amount (rather than
the FinMIS budget amount).
· Run a 103 (Summary Grant & Contract Report) to verify appropriate
cost sharing entries have been completed. An undefined (0000) CREF will
be used for cost sharing and you will have a negative BBA in a fund that
no longer exists.
· All transfers should be made promptly. Any delay over 90 days
must include an adequate explanation of why there was a delay in correcting
· Failure to resolve overdrafts will result in the transfer of
the charges by Research Services to the unrestricted operating budget
of the responsible ORG.
Financial Policy Manual http://www.finance.upenn.edu/fpm
Guidelines for Cost Transfers http://www.upenn.edu/researchservices/spmanual/cost.html
OMB Circular A21
Refer to Cost Transfers SOP
Refer to Wayward Transactions SOP
Refer to Reports SOP
Refer to Cost Sharing SOP
Refer to Monthly Reconciliation of Accounts SOP