Financial Reporting and Closeout – Payroll Expense Transfers and Accruals

This article outlines the purpose and process for preparing and reversing a payroll accrual entry, which may be required in the Final Reporting,Invoicing and Closeout of Federal Awards. See the article Final Reporting and Closeout of Federal Awards – Non-Payroll Accruals for instructions on preparing and reversing non-payroll accrual entries.

Contracts and Grants Accounting (CGA) is using the PeopleSoft Research Administration System (RAS) processing end date to control spending and enable compliance with Uniform Guidance requirements. Departments should strive to ensure that all payroll is properly allocated to the correct award and that all Payroll Expense Transfers (PETs) are processed prior to the end of the trail out period. However, there may be situations in which this is not possible. In these situations, a payroll accrual entry, and reversal, is required in addition to the payroll expense transfer.

Process

Payroll expense transfers submitted after the trail out period are processed on an exceptional basis. Follow this procedure to ensure timely consideration and proper recording of these exceptional transfers.

  1. Prepare the Payroll Expense Transfer Uploader (PETU). Be sure to complete the PETU properly per its instructions and include all required supporting documentation. Obtain all approvals and submit to [email protected].
    1. The PETU contains instructions for Late Cost Transfer Policy Exception Requests, which are required for transfers which will post to the ledger more than 120 days after the original charge.
  2. Log into PeopleSoft and prepare the Final Reporting Certification (see How to Complete the Final Reporting Certification Form in PeopleSoft RAS for detailed steps).
    1. In Section A. Financial Information, check GL Requires Payroll Transfer(s).
    2. In the More Information section, provide the ServiceNow ticket # you receive upon submission of the PETU.
    3. Complete and submit the Final Reporting Certification.
  3. CGA Compliance will create and post the payroll accrual.
    1. CGA may request additional clarification or information to verify the allowability and reasonableness of the expenses, prior to processing the PETU.
  4. CGA will reverse the accrual journal in the month when the actual payroll journal posts.

Resources

References

Policies