Project Budget Journals vs' Budget Transfers

1
ProjectBudget Journals vs. Budget Transfers
2
Budget Journals vs Transfers

• The following information pertains to budget
  journals and transfers as related to projects.
  For information related to Fiscal Year accounts
  please contact Budget and Financial Reporting,
  713-500-4916.

3
Budget Journals

• Budget Journals should be used when affecting
  both revenue and expense.

• Note
• Excluding gifts endowments, PAF is responsible
  for budgeting revenue. Please contact PAF prior
  to budgeting funds in sponsored projects.

Rev. Acct. Code
Exp. Acct. Code
4
Budget Journal
Available Budget Amt. Collected Budgeted amt.
Amt. Budgeted into Exp.
Amt. Collected
Budgeted but not collected, reduces the available
budget
5
Budget Journal

• Things to consider when re-budgeting between
  program projects.
• How much Direct cost is needed?
• Do the projects earn IDC at the same rate? (On or
  Off Campus rates, see calculations below)
• Are the funds restricted by the agency for a
  specific use?

• Example 1
• ON Campus Project A _at_ 48.5 IDC
• OFF Campus Project B _at_ 25.5 IDC
• Move 8,000 in Direct Costs from Project A to
  Project B
• CALCULATION OF COSTS
• 8,000 x 25.5 2,040.00
• Total Amt. to move from A 8,000 DC 2,040.00
  IDC 10,040
• (This is how the funds should be budgeted in B)
• Fund movement to B 10,040/1.485 6760.95 DC
  3,279.05 IDC

• Example 2
• OFF Campus Project B _at_ 25.5 IDC
• ON Campus Project A _at_ 48.5 IDC
• Move 8,000 in Direct Costs from Project B to
  Project A
• CALCULATION OF COSTS
• 8,000 x 48.5 3,880.00
• Total Amt. to move from B 8,000 DC 3,880.00
  IDC 11,880
• (This is how the funds should be budgeted in A)
• Fund movement to A 11,880/1.255 9,466.14 DC
  2,413.86 IDC

6
Budget Transfer

• Budget transfers are used to reallocate funds
  between expense pools.

Budget Header should have initials extension
followed by a detailed description of the
transfer. Explicit detail improves review pace.
Note Budget Period should be blank for
project budget transactions. For use with fiscal
accounts.
Should Balance
7
Budget Transfers

• Where to find budget transfer guidelines on
  grants tab.

Attributes Screen
Budget Mod Guide
Click here
8
Budget Transfers

• Meaning of Bud Mod Guides Attributes
• Follow NIHGPS, OMB Circulars A-21, A-110,
  A-133 follow the federal re-budgeting
  guidelines.
• No Agency Limits so Follow UTHSC-H Rules no
  restrictions to budget modifications.
• See Comments for Guidelines Look at
  Miscellaneous Note tab for further information.
• Follow NRSA guidelines in NIHGPS (training
  grants) Follow NIH Training Grant guideline
• Allowability of transfers is dictated by the
  awarding agency. Grant award documents and grant
  guidelines should be referenced prior to budget
  changes.

9
Budget Transfers

• The following items are exempt from IDC on
  Federal awards, and require IDC consideration
  prior to transferring between budget pools.
• 61009- Equipment
• 61014- Subcontracts greater than 25,000 per
  institution
• 69312- Tuition Fees
• 61012- Patient Care
• 67462- Rental Space

10
Budget Transfers

• How to deal with IDC exempt transfers.

• How to move funds from an IDC exempt line. (ex.
  Move 1000 from 61009 to 61006)
• Formula 1,0001.485 673.40 (total amount to
  move divided by 1.current IDC rate)
• Reduce 61009 (Equip.) by 673.40 61015 (IDC)
  by 326.60 Increase 61006 (MO) by 1000.
• How to move funds into an IDC exempt line. (ex.
  Move 1000 into Equip)
• Same formula as shown above.
• Reduce 61006 by 673.40 IDC by 326.60.
  Increase 61009 (Equip.) by 1000.

11
Budget Transfer

• IDC is earned on the 1st 25,000 of subcontracts
  per institution. Prior to moving funds in/out of
  61014 a consideration should be made for IDC.

• Example 2
• You want to re-budget 6,000 from Subs (61014) to
  MO (61006. 1,000 was budgeted to earn IDC
• Formula (5,0001.4853,367)10004367
• 4,367 can be budgeted to MO, but since 5,000
  was not budgeted to earn IDC 1,633 will go to
  IDC (61015).

• Example 1
• You want to move 1,000 from Subs (61014) to MO
  (61006).
• Formula 1,0001.485673.40
• 673.40 can be moved to MO, but since the 1000
  was not budgeted to earn IDC 326.60 will need to
  go to IDC (61015).

12
Budget Transfer

• Things to consider when training grants are
  involved.
• Trainee stipends cannot be re-budgeted.
• Funds budgeted to Tuition and Fees cannot be
  re-budgeted out of MO.
• Trainee related expenses and trainee travel can
  be re-budgeted.