Charges and Cost Transfer Policy
Policy Statement
It is the policy of Dartmouth College that costs should be charged to the appropriate sponsored award when first incurred. However, there are circumstances where it may be necessary to transfer expenditures to a sponsored award after the initial recording of the charge. It is the policy of Dartmouth College that charges to sponsored awards be reviewed on a regular and timely basis to assure appropriateness of charges and to prepare corrections on a timely basis.
Reason for Policy
To comply with allowability and allocability requirements of the Uniform Guidance and to promulgate best practices for all sponsored awards (federal and non-federal), it is necessary to explain and justify the transfer of transactions to or from federal and non-federal PTA accounts. Timeliness and completeness of transfer explanations are important factors in supporting allowability and allocability in accordance with the principles set forth in the Uniform Guidance. The transfer of transactions from federal and non-federal PTA accounts is closely examined by auditors. Frequent, tardy or unexplained (or inadequately explained) transfers can raise serious questions about the propriety of the transfers, our accounting system and internal controls.
Affected by this Policy
Any Dartmouth College Department who manages Federal and Non-Federal Sponsored Awards.
Who Should Be Aware of this Policy
Office of Sponsored Projects Staff, Dartmouth College Departments who manage Sponsored Awards, Principal Investigators and Other Faculty involved with Sponsored Awards, Divisional Financial Administrators and Central Financial Administrators.
Contacts
Please direct general questions about this policy to your unit's administration. If you have questions about policy issues, please contact the Director of the Office of Sponsored Projects. If you have questions about process issues, please contact your OSP Sponsored Research Manager.
ONBASE
OSP electronically reviews and approves Wage Transfers, Cost Transfers and Simple Re-Class SPUD Journals using OnBase.
You can find OnBase Corrections, Journals and Cost Transfer Request Forms and Wage Transfer Request Forms at the following link: https://www.dartmouth.edu/finance/forms-policies-systems/forms_library/eformlibrary.php
See OnBase instructions on attached powerpoint slides.
Simple Reclassification
Simple reclassifications are timely reallocations of transactions involving PTA accounts.
Preparing Simple Reclassifications
For Non-Payroll transactions that meet the simple reclass criteria and need to be reallocated, Department Grant Managers or Finance Centers complete an OnBase Corrections, Journals and Cost Transfer Request Form and attach the following documents to the form:
- CJE001 SPUD Journal – Used only for simple reclass journals
For Payroll transactions that meet the simple reclass criteria and need to be reallocated, Department Grant Managers or Finance Centers complete an OnBase Wage Transfer Request Form and attach the following documents to the form:
- Supporting documentation of the transaction(s) being moved, this can be a labor report or an IRA OGA Transactions Detail – Expenditures Report.
Once the appropriate form has been completed, the Department Grant Manager or Finance Center submits the OnBase Request Form for approvals.
Simple Reclassification Approvals
- PI's do not need to approve Simple Reclass OnBase Corrections, Journals and Cost Transfer Request Forms.
- PI's do not need to approve Simple Reclass OnBase Wage Transfer Request Forms.
- OSP approves Simple Reclass OnBase Corrections, Journals and Cost Transfer Request Forms.
- OSP approves Simple Reclass OnBase Wage Transfer Request Forms.
- All Service Center SPUD Journals do not need prior approval from OSP, Service Centers upload their own SPUD Journals.
Processing Simple Reclassifications
- After OSP approves the Simple Reclass OnBase Corrections, Journals and Cost Transfer Request Form, OSP uploads the Macro Enabled Excel version of the CJE001 SPUD Journal into OGA (Oracle Grants Accounting).
- After OSP approves the Simple Reclass OnBase Wage Transfer Request Form, OSP submits the OnBase Wage Transfer Request Form to the appropriate Finance Center for processing.
Cost Transfers
Cost Transfers are reallocations of transactions that do not qualify as a simple reclassification, they are transactions that are typically moved over 30 days from the original transaction posting date.
There are two types of transfer forms:
- OnBase Corrections, Journals and Cost Transfer Request Form - The CTX001 SPUD Journal (Non-Payroll) Excel form needs to be attached to this OnBase form.
- OnBase Wage Transfer Request Form (Payroll) that are used to move these types of transactions.
Both transfer forms require adequate justifications which include answering the following questions on the forms:
- Why was this transaction(s) originally posted to the account from which it is now being transferred?
- Why should the transaction be transferred to the proposed account to be charged? How does this transaction benefit the project?
If the original transaction was incurred more than 90 days preceding the transfer request, the justification must also address:
- Why is the transaction(s) being transferred more than 90 days after the original date the transaction was recorded?
- What corrective action has been taken to eliminate future need for cost transfers of this type?
Timely Submissions of Cost Transfers
Each Cost Transfer should be completed within 90 days from when the transaction(s) originally posted (GL Transferred Date) to the account(s) that will be credited in the transfer. Cost Transfers over 90 days will only be approved under extenuating circumstances. Examples of Acceptable Extenuating Circumstances for Cost Transfers over 90 calendar days (note that these exceptions still require submission of the Cost Transfer Form and Wage Transfer Form):
- Late issuance of an account for reasons beyond the control of the requestor.
- Failure of another department to take action, e.g. on a properly submitted payroll distribution change request.
- Journals to align the allocation of prepaid tuition remission with effort.
Please Note: Acceptable extenuating circumstances do not include Absences of the PI or Administrator, Lack of Staff, Inexperienced Staff, or Lateness of Reconciliations.
Cost Transfer Calculator (Excel)
Preparing Cost Transfers
For Non-Payroll transactions that need to be reallocated, Department Grant Managers or Finance Centers complete an OnBase Corrections, Journals and Cost Transfer Request Form and attach the following documents to the form:
- CTX001 SPUD Journal – Used only for Cost Transfer SPUD Journals
- Supporting documentation of the transaction(s) being moved, this can be invoice copies or an IRA OGA Transactions Detail – Expenditures Report.
For Payroll transactions that need to be reallocated, Department Grant Managers or Finance Centers complete an OnBase Wage Transfer Request Form and attach the following documents to the form:
- Supporting documentation of the transaction(s) being moved, this can be a labor report or an IRA OGA Transactions Detail – Expenditures Report.
Once the appropriate form has been completed, the Department Grant Manager or Finance Center submits the OnBase Request Form for approvals.
Cost Transfer Approvals
- PI's approve Cost Transfers
- If there are multiple grants which involve multiple PI's, each PI will need to approve the Cost Transfer.
- If the PI is unavailable to approve, the Department Chair or Department Administrator can approve in their absence.
- OSP approve Cost Transfers
Wage Transfer Approvals
- PI's approve Wage Transfers
- If there are multiple grants which involve multiple PI's, each PI will need to approve the Wage Transfer.
- If the PI is unavailable to approve, the Department Chair or Department Administrator can approve in their absence.
- OSP approve Wage Transfers
Processing Cost Transfers
- After OSP approves the OnBase Corrections, Journals and Cost Transfer Request Form, OSP uploads the Macro Enabled Excel version of the CTX001 SPUD Journal into OGA (Oracle Grants Accounting).
- After OSP approves the OnBase Wage Transfer Request Form, OSP submits the OnBase Wage Transfer Request Form to the appropriate Finance Center for processing.
Please refer to this matrix in determining if a transfer is a simple reclass or a
cost transfer: Sponsored Project Reallocations
CJE001 SPUD Journal - Used for simple reclass non-payroll reallocations
CTX001 SPUD Journal - Used for non-payroll reallocations that do not qualify as a simple reclass
Correcting Capital Equipment Allocations
To request a correction or reallocation of Capital Equipment (dollar value of $5,000 or more) expenses (see Natural Class list below) use the Correction and Journal e-Form and add Susan Mockus as the approver. There is no need to complete the WebADI or SPUD Journal. As before, if the e-Form involves a sponsored project account (PTA account), the form should be routed through OSP for their review.
If an e-form reaches the Finance Center or OSP without Susan's approval, Susan will be added as the approver and the form will then be routed to Susan for her review, action, and approval.
Any transactions on these natural classes or equivalent expenditure types should follow this process.
Assets over 25k (Capitalized)
1700-Oracle Fixed Assets Clearing
7561-CAP EQUIP OVR 25K Athletic
7562-CAP EQUIP OVR 25K Audio Visual
7563-CAP EQUIP OVR 25K Communication
7564-CAP EQUIP OVR 25K Comp or Netwrk
7565-CAP EQUIP OVR 25K Fabricated
7567-CAP EQUIP OVR 25K Mechanical
7568-CAP EQUIP OVR 25K Office
7569-CAP EQUIP OVR 25K Spec or Technical
7571-CAP EQUIP OVR 25K Scientific
7581-CAP OTHR OVR 25K Furniture Fixtures
7582-CAP OTHR OVR 25K Vehicles
7583-CAP OTHR OVR 25K Computer Software
7584-CAP OTHR OVR 25K Bldng ImprovRenvtn
7585-CAP OTHR OVR 25K New Construction
7586-CAP OTHR OVR 25K Misc Item7587-CAP OTHR OVR 25K To Endowment7599-CAP ITEMS OVR 25000 OFFSET NonGrant
7598-CAP ITEMS OVR 25000 OFFSET Grant
Assets Under 25k (Expensed)
7111-EQUIP 5000 to 24999 Athletic
7112-EQUIP 5000 to 24999 Audio Visual
7113-EQUIP 5000 to 24999 Communication
7114-EQUIP 5000 to 24999 Comp Hardware
7115-EQUIP 5000 to 24999 Fabricated
7116-EQUIP 5000 to 24999 Laboratory
7117-EQUIP 5000 to 24999 Mechanical
7118-EQUIP 5000 to 24999 Medical
7119-EQUIP 5000 to 24999 Office
7121-EQUIP 5000 to 24999 Specialized
7122-EQUIP 5000 to 24999 Teaching
7123-EQUIP 5000 to 24999 Technical
7124-EQUIP 5000 to 24999 Machines and Tools
7131-FURN FIX 5000 to 24999 Furn Fixture
7151-FURNISHINGS 5000 to 24999 Carpet
7152-FURNISHINGS 5000 to 24999 Drapes
7153-FURNISHINGS 5000 to 24999 Mattresses
7171-VEHICLES 5000 to 24999 Vehicles