Salary Cost Transfers

Salary Cost Transfers

Authorized individuals can initiate a payroll expenditure adjustment/transfer of expense for contracts and grants using UCPath Salary Cost Transfer (SCT). This custom process to move salary and/or benefits costs from one fund to another is managed by UCPath.

In addition to specifying the salary and benefits details, and funding sources involved in a transfer, successful submittal of SCT requires completion of the following Questionnaire:

  • Explain how the error occurred and why the transfer is being requested. If partial transfer, explain the basis for proration and/or split.
  • Who approved the transfer of funds?

The following justification methods may be used:

    • Response to the UCPath questions on the direct retro page and inclusion of the PI’s approval specific to the cost transfer transaction
    • Other departmental late payroll cost transfer justification form with PI approval specific to the cost transfer transaction
    • Any communication and/or emails related to the departmental late payroll cost transfer uploaded along with the PI's approval specific to the cost transfer transaction.
  • How does the transfer benefit or impact the new funding source being charged?

High Risk Salary Cost Transfers

A salary cost transfer is considered high risk and subject to additional, conditional workflow routing if it meets one or both of the following conditions:

  • Violates the 120 Day Rule - increases the expense on a federal or federal flow-through fund where the original Pay End date on a payroll transaction is prior to [SysDate - 120]
  • Violates the 90 Day Rule - increases the expense on a federal or federal flow-through fund where the fund or Grant End date is prior to [SysDate - 90]

Note: SysDate is the date and time the salary cost transfer is processed.

Approval of requests for late payroll cost transfers will be rare and only granted in unusual and unique circumstances that result from actions outside the control of the originating department. If granted, this approval does not relieve the originating department from the financial responsibility for the untimely recognition of these expenses. If disallowed by the federal agency, the originating department will be held responsible for any costs and penalties resulting from the disallowance.

In general, the following situations will be considered for an exception:

  • Transfers resulting from late notification of award by the sponsor when a fund advance would not have been possible
  • Transfers resulting from an unanticipated change to the fund number on a multiple year award
  • Corrections to chartfields other than a fund (i.e., Account, Dept ID, Program, ChartField1, or ChartField2).

Exceptions should not generally be due to the following situations:

  • Failure of staff to prepare transfers in a timely manner
  • Failure of Principal Investigators to inform department administration of needed transfers

Responsibilities

The Principal Investigator (PI) and originating department are responsible for actively managing the award, identifying transactions that require correction, executing required cost corrections in a timely manner, and providing the late payroll cost transfer justification when necessary. Partial transfers require a statement explaining the allocation methodology. The award PI of the fund receiving the debit must approve the exception request. The salary cost transfer approval cannot be delegated and must be specific to the transaction being transferred. The originating department is the department of record for the documentation, request, and decision. Departments must correct any inappropriately recorded charges on federal funds, regardless of timeliness.

Contracts and Grants Accounting is responsible for reviewing high risk direct retro transactions in UCPath, ensuring appropriate justification and approval is provided, and approving the transaction in the system.

As part of normal departmental responsibilities, the originating department reviews and reconciles the approved payroll cost transfer transaction via the ledger once the monthly ledger is final.

The originating department will be held responsible for any disallowance, fine, or penalty resulting from negative audit findings related to any payroll transfers processed as a result of an exception request.

Questions about this process can be addressed to the CGA Help Desk at CGAhelp@berkeley.edu or 510-643-4246.