This guide outlines the purpose and process for preparing and reversing a non-payroll accrual entry, which may be required in the Final Reporting, Final Invoicing and Closeout of Federal Awards. These procedures apply to Federal and Federal Flow-Through award except for clinical trials. For clinical trials and private awards, see Final Reporting, Final Invoicing and Closeout – Clinical Trials and Private Awards
Contracts and Grants Accounting (CGA) is using the PeopleSoft Research Administration System (RAS) processing end date field to control spending and enable compliance with Uniform Guidance requirements. For expenses which have not yet posted to the General Ledger, the Research Services Analysts (RSA) or other department delegate can process an accrual entry and request approval by the Department Approver and CGA Analyst. If approved, the accrual will be posted to accurately report expenses to the sponsor.
Accrual and its Use in Financial Reporting
For sponsored awards at UCSF, an expense accrual is used to record a cost estimate for a product or service that was delivered during the award period but has not yet been recorded in the General Ledger. Creating an accrual ensures all direct expenses are recorded in the General Ledger at award close.
Examples of expenses to accrue:
- Subaward invoices for services delivered within the award period but for which the invoice will not be received prior to the processing end date
- Recharges for services delivered within the award period but for which the charge will not be recorded prior to the processing end date
- Travel which occurred within the award period but for which the charge will not be recorded prior to the processing end date
- Vendor services which were provided within the award period but for which the invoice will not be received prior to the processing end date
- Allowable post-award publication costs (see Uniform Guidance Key Concepts – Publication Costs)
- Biweekly payroll accrual reversal (NOT the payroll accrual) that will not be recorded prior to the award processing end date
Award accruals are NOT used for:
- Estimated unallowable expenses (e.g., goods/services occurring AFTER the award expiration date)
- Cost transfers
- Payroll Expense Transfers (PETs)
- See the job aid Financial Reporting and Closeout Process – Payroll Expense Transfers and Accruals for the proper procedure for recording payroll accruals.
Step-by-step Instructions on Preparing and Reversing a Non-Payroll Accrual Entry
Please download the Financial Reporting and Closeout Process – Non-Payroll Accruals Job Aid for step-by-step instructions on preparing and reversing a non-payroll accrual entry.