Correcting Overexpended Awards, Projects, and Tasks

Purpose

This document describes the procedure to follow to make the corrections for awards, projects, or tasks that are overspent.

Direct Cost Over Budget Report and Discoverer Queries

Direct Cost Over Budget Report

It is recommended that the RF Direct Cost Over Budget Report be run weekly and appropriate action taken to resolve overexpenditures. For a description of the report and instructions and parameters for running the refer to the document "RF Direct Cost Over Budget Report".

Discoverer Queries

The following queries can be run in the Discoverer Grants Management business area to review overexpenditues:

650REPORTING.GB_Award Level Overexpenditures - This query finds awards that are not closed and are overexpended.
650REPORTING.GB_Project Level Overexpenditures per Award - This query finds awards that are not closed and at the project level per award that are
overexpended.
650REPORTING.GB_Task Level Overexpenditures per Award - This query finds awards that are not closed and at the task level per award that are
overexpended.
650REPORTING.GB_Resource Group Overspend by 10 Percent - This query finds awards that are not closed, the resource group budgetary control is
equal to Absolute or Advisory, and overexpended in the expenditure category by 10% or greater - vs - budget amount. Only displays the expenditure
categories that are overexpended.

What To Do If Direct Costs Are Over Budget

Determine the reason for the overexpenditure and determine if any of the following actions are necessary:

Rebudgeting of funds
Increasing the budget
Moving the charge to another Award, Project, Task.
Note: Transactions entered through pre-approved batches in the Grants module and those coming from Labor Distribution will be applied to the Award after nightly costing processes are run. Transactions that failed in the Accounts Payable or Purchasing module must be re-approved before being applied to the Award.

Moving Charges

The following table identifies how to move charges to another project, task, award, expenditure type, and/or organization (PTAEO).

If the Overexpenditure is a Result of a . . .	Then
Purchase Order	Change the distribution line.
Invoice Payment	Reverse the original transaction and change the distribution line.
Payroll Charge	Process a labor distribution adjustment which will reverse the charge on the original PTAEO and charge the new PTAEO. Refer to the work instruction Define Distribution Adjustments in the Labor Distribution course "Distribution Adjustments."

System Processes

Required to Clear Overexpenditures Once the overexpenditures have been reviewed and the appropriate actions have been taken to correct the overexpenditures, certain system processes must be run. The following table identifies the processes that need to run:

If the Overexpenditure was for . . .

Required Process

Schedule

Salary and Wage ACTUALS that have an item date on or prior to the current date

Costing and Funds Checking by Date

Monday - Costing by date using the Friday date of that week.

Tuesday - costing by date using the Friday date of that week

Wednesday - Costing by date using the Friday date of that week

Thursday - Costing by date using the Friday date of that week. This will post the payroll to the grants on payroll weeks.

Friday - Costing by date using the Friday date of that week.

Exception: When month-end falls on a Thursday, the payroll will need to be posted to grants on Friday night, so that it does not get reflected on the grants for the wrong month.

Misc. Transactions or Usages

Costing and Funds Checking on Misc. Transactions and Usages

Runs nightly.

Change History

January 19, 2001 - New document.
March 22, 2001 - Revised "Payroll Charge" funds check failure. Added links to work instructions. Added report running information.
February 26, 2003 - Revised to add section "System Processes Required to Clear Funds Check Failures."
January 16, 2004 - Revised to reflect changes resulting from the new payroll encumbrance process.
February 13, 2004 - Revised to reference RF Direct Cost Over Budget Report document for instructions and parameters for running the report.

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