Resource Adjustments

1
Resource Adjustments

• Presented by
• Michele Mock

2
Objectives

• Define Resource Adjustment
• Identify criteria for a Resource Adjustment
• Understand guidelines for
• Timeliness
• Documentation
• Justification

3
What is a Resource Adjustment?

• An online process in which costs can be
  transferred from one LBNL project (or account) to
  another

4
Resource Adjustments Policy

• Located on the OCFO website
• Ensures consistency of procedures throughout Lab
  Divisions
• Justification and documentation
• Approval process
• Internal controls
• Fulfills conditions set by Generally Accepted
  Accounting Principles (GAAP) on costing in
  correct period

Resource Adjustments
5
Criteria

• A Resource Adjustment should only be made when it
  meets the following criteria
• Necessary
• Appropriate
• Fully documented and justified

6
What About Labor Adjustments?

• Labor adjustment Resource adjustment
• Same rules apply
• Documentation for labor adjustments include
• Corrected timesheets
  (Employee signed and supervisor
  approved)
• Supporting rationale
• Copy of applicable Labor Resource Adjustment
  Report

7
Documentation forAdministrative Labor Errors

• Examples of admin error or typo
• Project ID
• Date
• Number of days worked
• Acceptable documentation
• Email from employee (suggest cc supervisor)
• Reason for error
• Correction or adjustment

8
More Criteria

• Approval threshold 5K
• Total of all debits or credits of costs
  transferred
• For labor, include all applicable pay periods
• Include preparers name/phone
• Resource Adjustment training
• Prerequisite for Preparers

9
Timeliness

• Resource Adjustments should be completed no later
  than 90 days after original entry

90
10
Documentation

• Record Retention 3 years
• Per Lab archiving policies, National Archives and
  Records Administration, and DOE Contract 31
• Any Resource Adjustment involving more than one
  Division requires notification to all Divisions
  impacted
• For guidance, contact aro_at_lbl.gov

11
More on Documentation

• If the Resource Adjustment meets or exceeds the
  5K threshold, approval must be obtained from
  designated approvers in all Divisions impacted
  prior to entering adjustment as valid in FMS
• Email confirmation to authorized requestor is
  acceptable as appropriate documentation
• All documentation, including approvals, is
  maintained by the originating Division

12
Justification

• A Resource Adjustment is justified and
  appropriate when costs are
• Reasonable (prudent business judgment)
• Allocable to the receiving project
  (project receives benefit)
• Allowable per Contract 31
  (via Federal Acquisition Regulations
  FAR)

13
Inappropriate Justifications

• Transfer costs from an overrun project to a
  different project with adequate funding
• Wrong Project ID
• Move costs, per Budget Office
• To correct an error

14
Much Better!

• Travel costs charged to incorrect Project ID
• Travel costs for Dr. xxxx erroneously charged to
  wrong Project ID. Appropriate benefiting Project
  ID is xxxx.
• Fed Ex charges inadvertently charged to the
  Division dropout account
• Invalid Project ID listed on Fed Ex air bill.
  This adjustment transfers costs to the
  appropriate benefiting project.

15
Questions?
16
END OF DAY TWO

• See you in
• the
• Morning!