Cost Share Transaction and Reconciliation Cycle

Appropriated Budget Transfers (see Creating and Submitting a Budget Transfer Job Aid) are submitted at the Fund, Department, Cost Center, and Budget Rollup Account (see Chart of Accounts Overview); you do not need to include the project number when researching the deficit balance or submitting the Budget Transfer.  The best practice for balancing Budget Transfers with expenditures is to list the project number in the Journal Header Description of the Budget Transfer form, so it can be used for reconciliation against expenditures.

For these examples, the following data points will be used:

• • Appropriated Fund – 1001
  • Cost Share Fund – 1009
  • Department – 78912
  • Non-Project Cost Center – 5579832
  • Project Cost Center – 1001004
  • OFC Award – 1111111
  • Cost Share Project – 6000000524

Appropriated Salary:

1.  When a new award is set up, sponsored and cost share projects will be set up.

2.  As soon as the working dates are identified, submit EAF/GFDF(s) to change the funding source of the cost shared portion of salary from the appropriated account to the cost share project. This will avoid unnecessary cost transfers (see University Policy # 5090, Sponsored Programs Cost Transfer).

• • Working Dates: 8/15/2019 – 12/10/2019
  • 90% Regular Contract: 1001.78912.5579832.410500.0000000000.0000.0000000000.0000000000
  • 10% Cost Share: 1009.78912.1001004.410500.0000000000.0000.6000000524.0000000000
  • Comments: Cost share for award 1111111, 10% AY salary for Fall 19 semester

3.  Verify that salary split is processing as expected for first pay period and all following.

4.  You must clear deficits in cost share projects at least every six months. During the last two weeks of the 6-month period, identify the total expenditures in the salary and fringe budget categories.

5.  Submit a Budget Transfer (see Creating and Submitting a Budget Transfer Job Aid) from 1001.78912.5579832.410000 (annual appropriations budget) to 1009.78912.1001004.410000 (cost share budget) for salary and 1001.78912.5579832.420000 to 1009.78912.1001004.420000 for fringe to clear deficit balances. The best practice for balancing Budget Transfers with expenditures is to list the project number in the Journal Header Description of the Budget Transfer form, so it can be used for reconciliation against expenditures.

Appropriated P-card:

1.  When a new award is set up, sponsored and cost share projects will be set up.

2.  When supplies are to be purchased as cost share, the P-card transaction should be coded to the cost share project (1009.78912.1001004.574100.0000000000.0000.6000000524.00000000000).

3.  When P-card charges are posted for the month, verify that transactions posted to the correct cost share projects.

4.  You must clear deficits in cost share projects at least every six months. During the last two weeks of the 6-month period, check the total expenditures posted to 1009.79812.1001004 to verify what budget needs to be transferred to cover the deficit balance.

5.  Submit a Budget Transfer (see Creating and Submitting a Budget Transfer Job Aid) from 1001.78912.5579832.500000 to 1009.78912.1001004.500000. The best practice for balancing Budget Transfers with expenditures is to list the project number in the Journal Header Description of the Budget Transfer form, so it can be used for reconciliation against expenditures.

Appropriated Expense Report, Invoice Payment, or Requisition:

1.  When a new award is set up, sponsored and cost share projects will be set up.

2.  Select the POET template when initiating a standard requisition (see Step # 11), invoice payment (see Step # 9), or expense report (see Step # 14 and 16).  Even though the University has reports designed to identify project-related costs without POET, if you do not choose the POET template, there is a possibility these costs will not be timely added to the project and invoiced.  In cases where final invoices must be submitted, this raises the possibility of the expenses not being reimbursed by sponsors and being charged to your surplus/deficit accounts on file.

3.  Do not enter the segment string; instead enter the individual POET values:

• • Use the correct Account Code.
  • 6000000524 as Project Number.
  • 78912 as the Expenditure Org.
  • 100001 as the Task for non-taggable expenditures (or 100002 for taggable expenditures).

4.  Click Save.

5.  The segment string will automatically update to 1009.78912.1001004.515000.0000000000.0000.6000000524.0000000000

6.  Review the project when the invoice is processed to ensure that transactions posted to the cost share projects.

7.  You must clear deficits in cost share projects at least every six months. During the last two weeks of the 6-month period, identify the total expenditures posted to 1009.79812.1001004 to verify what budget needs to be transferred to cover the deficit balance.

8.  Submit a Budget Transfer (see Creating and Submitting a Budget Transfer Job Aid) from 1001.78912.5579832.500000 to 1009.78912.1001004.500000. The best practice for balancing Budget Transfers with expenditures is to list the project number in the Journal Header Description of the Budget Transfer form, so it can be used for reconciliation against expenditures.

For these examples, the following data points will be used:

• • Local Fund – 3010
  • Cost Share Fund – 3019
  • Department – 78912
  • Non-Project Cost Center – 5579832
  • Project Cost Center – 1001004
  • OFC Award – 1111111
  • Cost Share Project – 6000000525

Local Salary:

1.  When a new award is set up, sponsored and cost share projects will be set up.

2.  As soon as the working dates are identified, submit EAF/GFDF(s) to change the funding source of the cost shared portion of salary to the applicable cost share projects. This will avoid unnecessary cost transfers (see University Policy # 5090, Sponsored Programs Cost Transfer).

• • Working Dates: 8/15/2019 – 12/10/2019
  • 90% Regular Contract: 3010.78912.5579832.410500.0000000000.0000.0000000000.0000000000
  • 10% Cost Share: 3019.78912.1001004.410500.0000000000.0000.6000000525.0000000000
  • Comments: Cost share for award 1111111, 10% AY salary for Fall 19 semester

3.  Verify that salary split is processing as expected for first pay period and all following.

4.  You must clear deficits in cost share projects at least every six months. During the last two weeks of the 6-month period, identify the total expenditures in the salary and fringe budget categories.

5.  Submit a Surplus Transfer (using the Journal Entry Request Form and referencing Account Code 998980 for all Local Surplus Transfers) from 3010.78912.5579832.998980 to 3019.78912.1001004.998980.0000000000.0000.6000000525.0000000000 to cover the total deficit amount.

Local P-card:

1.  When a new award is set up, sponsored and cost share projects will be set up.

2.  When supplies are to be purchased as cost share, the P-card transaction should be coded to the cost share project, which is 78912.1001004.574100.0000000000.0000.6000000525.00000000000 for this example.

3.  When P-card charges are posted for the month, verify the transactions posted to the correct cost share projects.

4.  You must clear deficits in cost share projects at least every six months. During the last two weeks of the 6-month period, identify the total expenditures posted to 3019.79812.1001004.0000000000.0000.6000000525.0000000000 to verify what funds need to be transferred to cover the deficit balance.

5.  Submit a Surplus Transfer (using the Journal Entry Request Form and referencing Account Code 998980 for all Local Surplus Transfers) from 3010.78912.5579832 to 3019.78912.1001004.0000000000.0000.6000000525.0000000000.

Local Expense Report, Invoice Payment, or Requisition:

1.  When a new award is set up, sponsored and cost share projects will be set up.

2. Select the POET template when initiating a standard requisition (see Step # 11), invoice payment (see Step # 9), or expense report (see Step # 14 and 16).  Even though the University has reports designed to identify project-related costs without POET, if you do not choose the POET template, there is a possibility these costs will not be timely added to the project and invoiced.  In cases where final invoices must be submitted, this raises the possibility of the expenses not being reimbursed by sponsors and being charged to your surplus/deficit accounts on file.

3.  Do not enter the charge account; instead enter the POET values.

• • Use the correct Account Code.
  • 6000000525 as Project Number.
  • 78912 as the Expenditure Org.
  • 100001 as the Task for non-taggable expenditures (or 100002 for taggable expenditures).

4.  The account will automatically update to 3019.78912.1001004.515000.0000000000.0000.6000000525.00000000000.

5.  Review the project when the invoice is processed to ensure that transactions posted to the correct cost share projects.

6.  You must clear deficits in cost share projects at least every six months. During the last two weeks of the 6-month period, identify the total expenditures posted to 3019.79812.1001004.0000000000.0000.6000000525.0000000000 to verify what funds need to be transferred to cover the deficit balance.

7.  Submit a Surplus Transfer (using the Journal Entry Request Form and referencing Account Code 998980 for all Local Surplus Transfers) from 3010.78912.5579832 to 3019.78912.1001004.0000000000.0000.6000000525.0000000000.

It is an extremely rare situation for one sponsored project to provide cost share for another sponsored project.  For federal awards, this would always be unallowable without the Contracting/Grants Officer’s prior written approval.  If this situation arises, please discuss next steps with your assigned SPA.