Policy to Establish a Backup Department ID for all Sponsored Projects
Establish a backup PeopleSoft Financials Department ID where
unallowable costs or over-expenditures on sponsored projects will be
In an effort to improve the institution’s
fiscal compliance and management of grant extramural funding, this policy is
enacted to provide a backup PeopleSoft Financials Department ID to be used for
Post Award Accounting and Fiscal Compliance (PAASFC) 90 day expenditure review
and closeout purposes. This Department
ID would be used to remove expenditures that are determined to be unallowable
and/or exceed the budget limits of the sponsored award. This policy provides authority to PAASFC to
use the backup account in the process of managing, closing and deactivating sponsored
projects. Further it provides retroactive
authority to use the Department ID for extramural accounts activated prior to
this policy’s formation. A backup Department
ID is required as
a part of the award activation process.
PAASFC will work with the University
Budget Office and the Comptroller’s Office to establish a PeopleSoft Financials
Department ID for each department with sponsored projects. These Department ID’s will be set up in a
newly created designated fund (2700 fund) and will serve as a suspense account
during the fiscal year. At fiscal year
end, the balance in this fund will need to be zero. The Budget Office will work with the PAASFC
and the Provost Office to review the year end balances and move any balance in
this fund to the appropriate Department ID.
active period of a project this PeopleSoft Financials department ID will be
used in the event that projects incur any of the following: an unallowable
expense per the sponsor’s regulations, a project is over expended, or to remove
costs incurred prior to or after the approved period of performance.
The 90 day close-out process will
be the focal point in which PAASFC will notify the Principal Investigator (PI)
/ Project Manager that expenditure(s) need to be moved either by a cost
transfer, or for payroll, an funding change needs to be processed to move
employees to other funding sources. The
PI/Project Manager will be provided with the deadline of moving the
expenditure(s) no later than 30 days prior to the award end date. In the event that a project is over expended
or incurs an unallowable cost, prior to the 90 day close out process, PAASFC
will notify the PI/Project Manager that the expenditure(s) need to be moved off
the project within 30 days. If the
PI/Project Manager does not comply within the stated timeframe then PAASFC will
transfer the expenditure(s) to the listed backup PeopleSoft Financials
Department ID. In both cases cited
above, PAASFC will then notify the PI/Project Manager, Department Chair and
Dean via email that the transfer and/or funding change has occurred and provide
the financial/hr system document ID information.
This process will aid PAASFC with
fiscal compliance monitoring, project closeout and deactivation of projects
that have passed their End Dates. It is
important that expired sponsored projects are closed and deactivated timely. This will assist in providing more accurate information
in the financial system.
This policy and the business process will be implemented
July 1st, 2014.
Backup Department ID FAQ's
- Can I use the Backup Department ID for Pre-award costs while waiting for the new award to be activated?
- No, you will need to request an At-Risk account through OGCS for all pre-award spending.
- Can I use the backup Department ID as a guarantee account for At-Risks Activations?
Can I transfer costs that were moved to the Department ID by PAASFC to another award?
- No, you cannot use FUND 2700.
If PAASFC moves salaries onto the backup department ID, will PAASFC also be processing the Funding Form (formerly ePAR) to move the salaries off the backup department ID?
- Depends, however NO is generally the case. Please contract your Post Award Administrator to assist you.
When should I transfer the expenditures off the Backup Department ID?
- No, it is up to the department to move the salaries via Funding Form (formerly ePAR) to the proper funding source.
- In keeping with OMB Uniform Guidance, all cost transfers on grants need to be done within 90 days of when the cost incurred. Quarterly review and transfers are strongly recommended. However all backup department id’s MUST to be cleared out by fiscal year end.