Clarification of Non-Salary Cost Transfer Monitoring

OVERVIEW

All non-salary cost transfers to or from federally sponsored projects should be completed using the ZF418 tool in SAP.  The error code documents the type of error made and should be appropriate.  So, please use caution when selecting the most appropriate code.  RCC monitors and reports non-salary cost transfers for volume, financial risk, timeliness and cause.

WHAT’S NEW?

For the purposes of federal reporting, Duke University has determined that transfers made from one G/L account to another G/L account within the same fund code (WBSE) are not considered cost transfers and are not included in RCC monitoring.  While transfers made between a parent code and a sub-code are cost transfers according to GAP 200.150, they are not included in RCC monitoring.  Since a sub-code and a parent code are part of the same overall award, a transfer between these codes does not disadvantage the Federal government.  These transfers will periodically be reviewed and analyzed for internal business purposes.  Please keep in mind that you should continue to use the ZF418 to move non-salary charges involving a Federal fund code.

An exception to the cost transfer definition is allocating charges from an allocated or non-restricted cost object to a Federal sponsored project.  These actions are considered original or initially recorded charges and should be completed as SA’s.  The following are not cost transfers (unless they are untimely):

  • Break-out/distribution of purchase or framework orders, service center bills that cannot be allocated at the time of purchase and allocation of long distance phone bills.
  • Expenses charged through a purchase or framework order, procurement card, service center, copying charges, etc.

*If the above exceptions are untimely, they should be completed/processed as a ZJ using the ZF 418.

RCC utilizes the ZF 420 and ZF 421 reports in SAP to complete its monthly non-salary cost transfer monitoring activities.  These reports are useful and informative tools that departments can run to track non-salary cost transfers.  Below are links to the step-by-step instructions for using these reports.

IMPORTANT LINKS

GAP:  200.150, Cost Transfers on Federally Funded Projects
Policy:  Non-Payroll Cost Transfers on Sponsored Projects

RESOURCES