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RFS is raising awareness of cost transfers that include both Journal Entries (JE) and Payroll Expense Transfers (PET). Below are a few common points that cause cost transfers to be returned to departments.Ìý

Explanation for Cost Transfer of Payroll Expense TransferÌý

All cost transfers to awards must provide the specific reason the expense was not originally charged to the award and an explanation how the expense benefits the award to which it is being transferred. An explanation merely stating that the transfer was made ‘to correct error’ or ‘to transfer to correct project’ is not sufficient.  RFS must be able to match the expense(s) referenced in the explanation to the expenses and actions being taken in the transfer being requested.Ìý

Cost Transfers After 90 DaysÌý

Late cost transfers call into question the university’s oversight of awards, therefore, cost transfers departmentally approved more than 90 days ( or PETs after 180 days) after the end of the month of the original journal entry date must have a PI statement signed by the PI and attached to the JE or PET that addresses the following:Ìý

1. Why the expense was not charged to the award to begin withÌý

2. What the expense was and specifically how it benefits the awardÌý

3. Why it took more than 90 days for the mistake to be identifiedÌý

4. How this will be prevented in the futureÌý

RFS must be able to match the expense(s) referenced on the PI statement to the expenses in the transfer being requested. Cost transfers that are moving expenses onto an award will not be approved if they were departmentally approved after one year of the original journal entry date or the date the SpeedType was created, whichever is later. Exceptions will be made at the RFS Leadership's discretion; explanations, statements, and justifications should be provided accordingly.Ìý

AttachmentsÌý

An m-Fin financial detail clearly identifying the expense being moved onto or off of the award is required. It is the responsibility of the journal submitter to attach all required documentation. Journals without the required supporting documentation will be returned to the department to provide the missing documentation. RFS journal approvers will not upload missing documentation on behalf of the journal submitter. Additional documentation may be necessary depending on the nature of the cost transfer:Ìý

• Travel: Travel Authorization required if moving travel onto a sponsored projectÌý

• Tuition: Approved PET number, m-Fin Payroll Transaction Report, and supporting documentation showing the tuition matches the percentage of salary being movedÌý

• Internal Sales: An Invoice or Receipt may be used in lieu of an m-Fin Financial DetailÌý

Please refer to the Cost Transfer policy for more information or reach out to Jesse Hinton, RFS Compliance and Financial Reporting Manager with any questions. Jesse.hinton@colorado.eduÌý