PURPOSE

The purpose of this statement is to provide guidelines related to the transferring or adjusting a contract or grant when it is determined that an expense has either been omitted or erroneously charged.

GUIDELINES AND GENERAL POLICIES

Adjustments or corrections in the accounting system must be made or approved by the Office of Contracts and Grants or General Accounting.

1. 1. Timeliness - Journal entries and other correcting entries must be made timely in order to avoid a possible audit disallowance.

2. Adequately Explained - All entries and request must be explained. Explanations do not need to be overly complex. Pertinent correspondence detailing the need for a correction or adjustment must be attached to the journal entry for documentation.

PROCEDURE

1. Principal Investigators and the responsible accountant each receive a copy of the Monthly FBMO92 report detailing the budget, expenditures and receipts for the account.

2. PI/PD must review the account to identify any problems.

1. 3. The principal investigator should notify the responsible accountant of the error. If the error is the result of cost being submitted on the wrong account, the Principal Investigator will submit a letter to the Office of Contracts and Grants requesting that the cost be transferred.

1. 4. The accountant will research all potential errors and prepare the necessary corrections.

1. 5. The accountant has the responsibility for auditing all salary cost prior to the submission of the final report and notifying payroll of any adjustments needed.

6. Payroll will prepare and submit the necessary adjustments.