As previously announced during French Toast Fridays, the cost transfer process for sponsored projects will be updated July 2021. As part of this new process, the Cost Transfer Policy will be updated and units will now be required to apply Custom Workday Worktags to cost transfer transactions including payroll redistributions, accounting adjustments and accounting journals. The Custom Workday Worktag will help units determine which type of backup documentation is required (if any) and will help ORSPA determine if the transaction qualifies for expedited review. To learn more about this exciting transition and how it will impact you, please read below:
BACKGROUND
As per RSP 506-02: Cost Transfers to Sponsored Projects, cost transfers that reallocate expenses onto a sponsored account require written justification in the form of a cost transfer questionnaire. However, depending on the type of cost reallocation, the cost transfer questionnaire might be unnecessary and can add undue administrative burden on the unit as well as ORSPA.
To reduce administrative burden, streamline the cost transfer process and mitigate risk, the new cost transfer model will rely upon strong internal controls and shared responsibilities. Under the new process, cost transfer transactions are categorized by risk then review/approval requirements are guided by the assigned category.
NEW COST TRANSFER PROCESS
Under the new cost transfer process, units will be required to apply a Custom Workday Worktag to their cost transfer transaction. Depending on the type of cost transfer transaction, less backup documentation may be required, and the transaction might be eligible for expedited ORSPA review. More specifically, cost transfers will be managed as follows:
Non-Payroll Cost Transfer: Units will apply a Worktag to non-payroll cost transfers based on the type of error being corrected. The Worktag will drive 1) the required documentation and 2) the level of review by AMT. For example, cost transfers under Category 1 will not require a Cost Transfer Form, review will be automated by a Workday Dashboard but approval will continue to be provided by an AMT GCO (see Cost Transfer Worktags page for Worktag Categories and Review Requirements).
Payroll Redistributions: Units will apply a Worktag to payroll redistributions based on the type of error being corrected. The Worktag will drive 1) the required documentation and 2) the level of review by FOT. For example, payroll redistributions under Category 1 will use boiler plate responses for the payroll redistribution questionnaire, review will be automated by a python script but approval will continue to be provided by an FOT GCO (see Cost Transfer Worktags page for Worktag Categories and Review Requirements).
COST TRANSFER POLICY UPDATES
As part of the Cost Transfer process update, ORSPA has also made changes to the existing RSP 506-02: Cost Transfers to Sponsored Projects. Policy updates for cost transfers are as follows:
- The 90-day timeline for transfers of pay has been revised to allow payroll redistributions up to 90 days from the end of the semester in which the pay occurred.
- The 90-day timeline does not apply to transfers from expense holding accounts (such as for grant P-Cards)
- Transfers related to transposition errors will only require a simplified explanation/justification.
ANTICIPATED IMPLEMENTATION TIMELINE
A soft launch of the new Cost Transfer process is planned for July 12, 2021.
- July 2, 2021: Cost Transfer training available in Career EDGE. This training will be expected from Grant Managers approving cost transfer transactions in Workday and PeopleSoft.
- July 12, 2021: Cost Transfer transactions initiated on or after July 12, 2021 are expected to include the appropriate Custom Cost Transfer Worktag. During the soft launch, failure to include the Custom Cost Transfer Worktag will not result in a returned transaction. However, transactions without a Custom Worktag will be subject to a full review.
- October 1, 2021: Cost Transfer transactions initiated on or after October 1, 2021 are required to include the appropriate Custom Cost Transfer Worktags. Failure to include the Custom Cost Transfer Worktags will result in a returned transaction.
- December 31, 2021: Deadline for grant managers to complete the Cost Transfer training in Career EDGE.
TRAINING RESOURCES FOR THE RA COMMUNITY
If you have questions about the new Cost Transfer Process, we highly encourage everyone to participate in French Toast Fridays. We will cover the new Cost Transfer process during the French Toast Fridays scheduled for:
- Friday, July 16th, 2021 – 8am
- Friday, August 20th, 2021 – 8am
Additional resources include:
- “ROps: Review and Approval of Cost Transfers on Sponsored Projects” training in Career EDGE.
- Cost Transfer Sitelet
- Cost Transfer Worktags Page
- Microsoft Teams Cost Transfer Process Channel.
Optional Trainings:
By Research Operations