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Current Funds - Guidelines & Procedures

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Expense and Revenue Correction (formerly Expense Transfer)

Purpose:   This form is used to correct a previous transaction.

Use to:   move specific expense or revenue transactions from one fund/org/account/activity code to another, to add an activity code to a previously completed transaction.

Do not use to:   bill another Rice department for services rendered; use the Interdepartmental Transfer Form ( Excel ) to move a lump sum from one fund to another. Use the Budget Transfer Memorandum ( Excel ) to correct or change the coding on a purchase order that has not been paid (contact Payment Solutions ).

Coding restrictions:  Do not use any payroll codes (6xxxx). Changes to payroll coding should be accomplished on the time allocation form. Do not use transfer codes (8xxxx).

Supporting information required:   Attach documentation of the original coding to speed processing.

Where to obtain forms:   from the Controller's Office.

Processing information:   Once all signatures have been obtained, send to the Controller's Office at MS70. Electronic processing is available for transactions longer than 50 lines.

Copies:   If you need a copy, please make a photocopy before mailing the form. Since the carbonless three part forms have been discontinued, the Controller's Office no longer returns copies of EX's to departments.

Whom to contact for more information on completing this form:   Current Fund Accounting in the Controller's Office (Crystal Davis at x2478 or crystald@rice.edu,) or Research Accounting in the Controller's Office.

Detailed Instructions for Completing the Form:  

Date:   Date of transactions. This can be very important for determining the posting period. For example, an EX is received on June 4 before May business has been closed. If the form is dated May 31 it will be processed in May business, but if the form is dated June 4 it will be processed in June business.

Document total:   Add the debit column total and the credit column total, both as positive numbers. Don't forget the pennies! This total is used by the Banner system to check the accuracy of keypunching.

Coding:   The fund, org and account must be completed. The program and location columns should be completed if and only if the fund listed is used for research cost sharing. The use of an activity code is optional.

Debit/Credit:   Complete the amount of the transaction.You may move partial charges.For expenses (7xxxx), use the debit column for the fund to which you are moving the expense (correct code) and the credit column for the fund used on the original transaction (incorrect code). For revenues (5xxxx), use the debit column for the fund used on the original transaction (incorrect code) and the credit column for the fund to which you are moving the revenue (correct code).

Description:   This is the description that will be entered into Banner. The field is 35 characters.

Reason:   This area should be used to explain why this transfer is necessary. It is not an optional field. The explanation will not be input into Banner. Important: list the PO number, asset number, or document number of the original transaction if this transfer involves equipment.

Approval:   Please write either the name or org code of the department being charged and the department being credited. The document should be signed by someone in each department with signature authority for the funds used, the Principal Investigator or designee if using an R fund.

Instructions and Policy for Research Grants/Contracts:  

The Principal Investigator (PI) is responsible for the management of the sponsored programs that are awarded to him/her. These include federal, state, and private grants and other sponsored agreements.

In addition to technical compliance, the responsibility for budgetary compliance rests with the PI. This includes not only staying within the total program budget and time period, but also staying within specific budget guidelines as required by the award.The PI is expected to approve charges to these programs or to designate this responsibility to another person who has first hand knowledge of the charges. In addition, the PI is responsible for reviewing the monthly expenditure reports and the time allocation reports on a timely basis.

Occasionally, costs transfers and adjustments may be necessary to correct bookkeeping or clerical errors to correct payroll records. It is the responsibility of the PI to initiate the necessary corrections or adjustments. Requests to correct bookkeeping or clerical errors or payroll entries must be made as soon as possible after the error is identified.

To request an expense transfer involving a sponsored program FOAPAL (fund-org-account-program-activity-location), a completed Expense and Revenue Correction form must be forwarded to Research Accounting. The form must be supported by documentation that contains a full explanation of how the error occurred and a certification of the correctness of the new charge. This new charge must be allowable and must benefit the research of the FOAPAL to which it is being transferred. Please note that transfer from one FOAPAL to another to cover underspending or overspending are not valid reasons to request an expense transfer. Under no circumstances will such transfers be approved. Timely review of the expenditure reports should decrease significantly, if not eliminate, the need for any expense transfers.

Expense transfers that are received more than 90 days after the date of the entry of the original transaction will be reviewed on a case-by-case basis, and if the transfer is denied, notification will be made in writing.

Payroll transfers or adjustments for the current or succeeding month should not be made on the Expense and Revenue Correction form. These transactions should be reported on Time Allocation Reports before they are signed and turned in to the Payroll Department. All other payroll transfer or adjustment requests for prior month transactions, with the exception of Graduate Student requests, should be prepared in memorandum form and submitted to Payroll with a copy to Research Accounting. Graduate Student Payroll transfers require a revised Graduate Student Payroll Authorization.

Expense transfers of equipment will not be approved unless an equipment procurement brief showing the original transaction is attached and approval is obtained from the Office of Sponsored Research on the Expense and Revenue Correction form.

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Interdepartmental transfer (IDT)

Purpose:   This form is used for internal sales from one Rice department to another Rice department.

Use to:   Charge another department for services performed by your department.

Do not use to:   correct transactions that have already occurred, move fund balance between funds, change payroll charges.

Coding restrictions:   One side of the transaction must be coded to an internal revenue code (57400, 58100). Do not use payroll codes of 6xxxx. Account 57180 which is terminated, do not use it. Use 58100 instead.

Supporting information required:   retained by billing department.

Where to obtain forms:   from the Controller's Office.

Processing information:   Once all signatures have been obtained, send to the Controller's Office at MS70. Electronic processing is available for transactions longer than 50 lines.

Copies:   If you need a copy, please make a photocopy before mailing the form. Since the carbonless three part forms have been discontinued, the Controller's Office no longer returns copies of IDT's to departments.

Whom to contact for more information on completing this form:   Current Fund Accounting in the Controller's Office: Crystal Davis at x2478 or crystald@rice.edu,

Detailed Instructions for Completing the Form:  

Date:   Date of transaction. This can be very important for determining the posting period. For example, an IDT is received on June 4 before May business has been closed. If the IDT is dated May 31 it will be processed in May business, but if the IDT is dated June 4 it will be process in June business.

Document total:   Add the debit column and the credit column, both as positive numbers. Don't forget the pennies! This total is used by the Banner system to check the accuracy of keypunching.

Coding:   The fund, org and account must be completed. The program and location columns should be completed if and only if the fund listed is used for research cost sharing. The use of an activity code is optional.

Debit/Credit:   Complete the amount of the transaction. Debit the fund charged and credit the billing fund.

Description:   This is the description that will be entered into Banner. The field is 35 characters.

Explanation:   This area may be used to explain why this transfer is necessary. It is an optional field. The explanation will not be input into Banner.

Approval:   Please write either the name or org code of the department being charged and the department being credited. The document should be signed by someone in each department with signature authority for the funds used.

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University‐Funded Research Awards

Rice‐funded awards that are made to faculty or staff through a competitive process (such as the Faculty Initiative Fund, the Enhancing Rice Through Information Technology program, the Shell Center and similar seed funding programs managed by different units at Rice) will be established in Banner as University (U) funds. Note that if the awards are funded as part of an externally sponsored grant (i.e. foundation, another university, federal agency, industry), the award will be recorded as an R fund.

Each Rice‐funded award will have a unique U fund number and be established in Banner in the home org of the recipient. The Controller’s Office establishes the U funds and the U fund number is included in the award notice to the recipient of the award. If there are questions about U fund, please contact Crystal Davis (x2478 or crystal@rice.edu)

Characteristics of U Funds 

1) Each established U fund has the following characteristics:

a. U funds will not allow spending to exceed available funds/budgets. Recipients of U funds will be notified about insufficient funds/budgets and be requested to provide another source of funding for the amount in excess of available funds.

b. U funds are either funded in advance or funded in arrears.

i. U funds that are funded in advance by the sponsor have funds transferred in at the start.

ii. U funds that are funded in arrears receive a budget entry and then funds are transferred, based on direction of the sponsor, into the U fund to cover allowable expenses. Sponsors should in these cases clearly define the rules and communicate these through an agreement with award recipients. Any charges that were not part of the approved budget are not automatically approved, and if not approved, they are the responsibility of the investigator.

c. U funds provide inception‐to‐date activity within the fund, which avoids the need to scroll between Banner windows for each fiscal year.

d. U funds support runs from program start date through the program end date set by the sponsor. The project end date can only be a changed by approval of the award sponsor in response to a written request explaining the circumstances that require extension. Expenses expected after the end date must be encumbered before the end date so that there is no new activity after the end date.

2) If it is necessary to make funds available to a collaborator who is a Rice employee, the preferred approach is to transfer expenses from the collaborator to the U fund so that all activity is contained in a single U fund. Another option, if the sponsor agrees, is to request another U fund for that purpose. If the collaborator is not employed at Rice, the collaborator should be a subaward and payment should be charged to the U fund for subaward costs.

3) At the closing date of the award, unspent funds will revert back to the sponsoring fund and org unless an exception is requested and granted by the sponsor.

 

Review and Approval (R&A) Forms 

Institutionally funded research requires assurance that compliance issues are identified. Award recipients must complete the Review and Approval form (R&A) and submit the form to the Office of Sponsored Research. The form can be found at: http://osr.rice.edu/Forms.

Click to download a pdf version of this procedure.
 

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