Journal Entries on Sponsored Projects

Why do we process journal entries? 

  • Minimize regulatory, financial, and reputational risk to the University
  • Ensure the accuracy and integrity of the University's charges for salaries, goods, services, and other expenses on sponsored projects transfers to/from a sponsored project when the expense was originally charged to a different account number

 

Cost Transfers

A cost transfer is an after-the-fact reallocation of expenses. It is important to address the issues as soon as possible.

Examples of typical cost transfers:

  • Corrections of a clerical error
  • EAF not processed timely (SPA only)
  • Charge not corrected timely in ActivePay system
  • Reallocation of expenses where multiple projects benefited
  • Transfer of pre-award costs from operating or discretionary project funds

College administrators prepare cost transfers affecting all Other Direct costs categories.

 

Cost transfers must be made promptly within 90 days of the end of the accounting month that the original transaction posted in Oracle.

For example an expense that hit in error on Oct. 12th would be identified in November (after the October statements are published and reviewed) and we would have until the end of January month end close to correct the error and remain within the 90 day window. 

 

Federal Projects:

  1. Upload information in the Oracle system
  2. Compile necessary back-up (grant statement, account analysis, receipts, etc.)
  3. Prepare Cost Transfer Coversheet
  4. Obtain Principal Investigator approval
  5. Send a copy of the journal entry and back-up to your SPA Rep for review/approval
  6. SPA will send to postmyje@rit.edu for posting

 

State and Private Projects:

  1. Upload information in the Oracle system
  2. Compile necessary back-up (grant statement, account analysis, receipts, etc.)
  3. Prepare Cost Transfer Coversheet
  4. Obtain Principal Investigator approval
  5. Send required information to postmyje@rit.edu for posting
  6. Department is required to maintain back-up based on the project's record retention policy

 

Use of the Cost Transfer Coversheet (CTCS)

The CTCS form provides overview information of the cost transfer, and is used as a guide to ensure appropriate documentation and approvals have been obtained. The most important section is the explanation as to "Why" the transfer is required. The justification should be clear and transparent to anyone that may review this transfer in the future in case of questions, audit, etc. 

If a cost transfer falls outside the 90-day window, the additional fields (5.a. 1/2/3) are required. This information should be provided by the PI in their approval request for the cost transfer. 

Justification Examples

 

Additional Questions?

Journal Entry Resource Documents 

For entries on Sponsored Projects contact your SPA Rep. 

For entries on operating or non-SPA accounts, contact RIT Accounting