JV Cost Transfer

JV COST TRANSFERS – PREPARER DOCUMENTATION

For every cost transfer JV, the creator must include the original accounting document number.This is the document number which includes the cost being transferred.The purchase order represents the agreement to accept a cost, but not the actual cost and is not a substitute for the original document number.Invoice numbers, journal voucher numbers, and credit card charge numbers are all original accounting documents.

For every cost transfer JV, the creator should state the reason for the transfer; if it’s the correction of an error, the JV should include an explanation of why the costs transferred were not charged to the correct cost object originally, how the error was made, and for any cost center, wbs element, or restricted gift, confirmation that the cost being transferred benefits the project or activity to which it is being moved.

For late cost transfers (more than 90 days after the original charge), there must be a more detailed explanation of what the error was, how it occurred, and how it was discovered.

• The JV creator should explain in detail why the costs being transferred are more appropriate on the cost object to which they are being moved, than the one they were charged to originally.

• Since more than 90 days have elapsed since the original
  charge, the explanation text must include the reason why the transfer request was not made timely.
• Of course, if a transfer is being made to remove a charge from a cost center, wbs element, or restricted gift to discretionary funds because it is not appropriate, it will be approved.For transfers to cost centers, wbs elements, or restricted gifts, if the reason for the lateness of the transfer is not compelling, or the transfer is excessively late, the transfer request may not be granted.

• If the transfer will alleviate an overrun, unquestionable documentation is necessary to satisfy federal auditors.

For transfers of travel transactions, the DLC should include information on how the travel benefits the research project to which it is being transferred.(Note: if the salary and/or tuition of the individual charged to the grant or contact is not charged to the project, a detailed explanation is particularly important.)

For cost allocations, the JV long text should include the basis for allocation.

For credit cards, the clock starts from the day the credit card charge is first posted to the general ledger, not when it is moved from the default cost object (if swept).

For payroll charges, note that the clock starts when it is first posted to the General Ledger, even if it is initially posted to suspense.

When purchasing an item, and when transferring a cost, DLC staff should make sure that the item, if purchased at the end of the project, will benefit that project.Items purchased at the end of a project (for example, in the last 90 days) will receive extra scrutiny under audit.Transfers of costs via JV and purchases of items in the last 90 days of a project will be subject to review.

When purchasing research supplies from an office supply vendor, the requisitioner needs to be sure the purchase directly benefits the project.As these costs are characterized as “office supplies” when acquired from a vendor like Office Depot, they are frequently questioned by external auditors, and may also receive extra scrutiny when CAO reviews the transaction.