Project Budget Journals vs Budget Transfers Budget Journals

  • Slides: 14
Download presentation
Project Budget Journals vs. Budget Transfers

Project Budget Journals vs. Budget Transfers

Budget Journals vs Transfers l The following information pertains to budget journals and transfers

Budget Journals vs Transfers l The following information pertains to budget journals and transfers as related to projects. For information related to Fiscal Year accounts please contact Budget and Financial Reporting, 713 -500 -4916.

Budget Journals l Budget Journals should be used when affecting both revenue and expense.

Budget Journals l Budget Journals should be used when affecting both revenue and expense. Rev. Acct. Code Exp. Acct. Code Note: Excluding gifts & endowments, PAF is responsible for budgeting revenue. Please contact PAF prior to budgeting funds in sponsored projects.

Budget Journal Available Budget: Amt. Collected – Budgeted amt. Amt. Budgeted into Exp. Amt.

Budget Journal Available Budget: Amt. Collected – Budgeted amt. Amt. Budgeted into Exp. Amt. Collected Budgeted but not collected, reduces the available budget

Budget Journal l Things to consider when re-budgeting between program projects. l l l

Budget Journal l Things to consider when re-budgeting between program projects. l l l How much Direct cost is needed? Do the projects earn IDC at the same rate? (On or Off Campus rates, see calculations below) Are the funds restricted by the agency for a specific use? Example 1: ON Campus Project A @ 48. 5% IDC OFF Campus Project B @ 25. 5% IDC l Example 2 OFF Campus Project B @ 25. 5% IDC ON Campus Project A @ 48. 5% IDC Move $8, 000 in Direct Costs from Project A to Project B CALCULATION OF COSTS: $8, 000 x 25. 5% = $2, 040. 00 Total Amt. to move from A: $8, 000 DC + 2, 040. 00 IDC = $10, 040 Move $8, 000 in Direct Costs from Project B to Project A CALCULATION OF COSTS: $8, 000 x 48. 5% = $3, 880. 00 Total Amt. to move from B: $8, 000 DC + 3, 880. 00 IDC = $11, 880 (This is how the funds should be budgeted in B) (This is how the funds should be budgeted in A) Fund movement to B: $10, 040/1. 485 = $6760. 95 DC $3, 279. 05 IDC Fund movement to A: $11, 880/1. 255= $9, 466. 14 DC $2, 413. 86 IDC

Budget Transfer l Budget transfers are used to reallocate funds between expense pools. Budget

Budget Transfer l Budget transfers are used to reallocate funds between expense pools. Budget Header should have initials & extension followed by a detailed description of the transfer. Explicit detail improves review pace. Note: Budget Period should be blank for project budget transactions. For use with fiscal accounts. Should Balance

Budget Transfers l Where to find budget transfer guidelines on grants tab. Attributes Screen

Budget Transfers l Where to find budget transfer guidelines on grants tab. Attributes Screen Click here Budget Mod Guide

Budget Transfers l Meaning of “Bud Mod Guides” Attributes l l l Follow NIHGPS,

Budget Transfers l Meaning of “Bud Mod Guides” Attributes l l l Follow NIHGPS, OMB Circulars A-21, A-110, & A 133: follow the federal re-budgeting guidelines. No Agency Limits so Follow UTHSC-H Rules: no restrictions to budget modifications. See Comments for Guidelines: Look at Miscellaneous Note tab for further information. Follow NRSA guidelines in NIHGPS (training grants): Follow NIH Training Grant guideline Allowability of transfers is dictated by the awarding agency. Grant award documents and grant guidelines should be referenced prior to budget changes.

Budget Transfers l The following items are exempt from IDC on Federal awards, and

Budget Transfers l The following items are exempt from IDC on Federal awards, and require IDC consideration prior to transferring between budget pools. l l l 61009 - Equipment 61014 - Subcontracts greater than $25, 000 per institution 69312 - Tuition & Fees 61012 - Patient Care 67462 - Rental Space

Budget Transfers l How to deal with IDC exempt transfers. l How to move

Budget Transfers l How to deal with IDC exempt transfers. l How to move funds from an IDC exempt line. (ex. Move $1000 from 61009. ) Formula: 1, 000÷ 1. 485= $673. 40 (total amount Formula: to move divided by 1. current IDC rate) Reduce 61009 (Equip. ) by $1000 Increase Reduce 61009 (Equip. ) by 61006 (M&O) by $673. 40 & 61015 (IDC) by 61006 (M&O) by $326. 60. l How to move funds into an IDC exempt line. (ex. Move $1000 into Equip) Same formula as shown above. Reduce 61006 by $673. 40 & IDC by $326. 60. Reduce 61006 by & IDC by Increase 61009 (Equip. ) by $1000. Increase 61009 (Equip. ) by

Budget Transfer IDC is earned on the 1 st $25, 000 of subcontracts per

Budget Transfer IDC is earned on the 1 st $25, 000 of subcontracts per institution. Prior to moving funds in/out of 61014 a consideration should be made for IDC. l 61014 Contracted Re-budget Sub-recipient Budget Amount BCM (Ex 1) $26, 000. 00 $ 25, 000. 00 $1, 000. 00 BCM (Ex 2) $30, 000. 00 $ 24, 000. 00 $6, 000. 00 Example 2 You want to move $1, 000 from Subs (61014) to M&O (61006). Formula: $1, 000÷ 1. 485=$673. 40 Formula: You want to re-budget $6, 000 from Subs (61014) to M&O (61006. *$1, 000 was budgeted to earn IDC* Formula: ($5, 000÷ 1. 485=$3, 367)+$1000=4367 $673. 40 can be moved to M&O, but since the $1000 was not budgeted to earn IDC $326. 60 will need to go to IDC (61015). $4, 367 can be budgeted to M&O, but since $5, 000 was not budgeted to earn IDC $1, 633 will go to IDC (61015). Example 1

Budget Transfer l Things to consider when training grants are involved. l Trainee stipends

Budget Transfer l Things to consider when training grants are involved. l Trainee stipends cannot be re-budgeted. l Funds budgeted to Tuition and Fees cannot be re-budgeted out of M&O. l Trainee related expenses and trainee travel can be re-budgeted.

PAF review of Budget Journals and Budget Transfers l l Post Award Finance (PAF)

PAF review of Budget Journals and Budget Transfers l l Post Award Finance (PAF) reviews your submitted Budget Journals and Budget Transfers every day, so please go back into FMS to confirm that your Budget Journal or Budget Transfer has been approved in FMS. If not approved by PAF, please correct and call or email that PAF staff member to re-review your Budget Transfer and Budget Journal after you have corrected or if you have questions.

Questions about Budget Journals and Transfers • Please include your name and UT extension

Questions about Budget Journals and Transfers • Please include your name and UT extension on every Budget Journal and Budget Transfer so that PAF can contact you if there any questions.