Late Salary Cost Transfer Documentation Reminders

A salary cost transfer that results in the transfer of payroll expenses more than 120 days from the posting of the original transaction is considered late. When unavoidable circumstances necessitate a transfer after 120 days, a full explanation is required for audit purposes, including a well-documented account of the events that led up to the late adjustment. In addition to completing the Direct Retro transaction in UCPath, departments are required to submit a Late Cost Transfer (LCT) Policy Exception Request Form with all supporting documentation to [email protected].

All late salary cost transfers are automatically routed in UCPath to the Contracts & Grants Accounting (CGA) Compliance Unit for exceptional approval. UCPath determines that exceptional approval is required in cases when the Direct Retro submission date is greater than 120 days from the pay end date of the transaction and the salary cost transfer is increasing expenses on a federal or federal flow-through project. Salary Cost Transfer Initiators receive pop-up messages (see Figures 1 and 2) indicating when this threshold is met and must take additional steps to prepare and submit the LCT request.

UCPath Direct Retro Message: Justification questions are mandatory for high risk salary cost transfers.

Figure 1. Salary Cost Transfer Initiators are alerted when submitting Direct Retro to complete Questionnaire for high risk salary cost transfers.

UCPath Direct Retro Message: Warning -- This is a high risk Salary Cost Transfer.

Figure 2. Salary Cost Transfer Initiators are alerted to submission of high risk salary cost transfer upon submitting Direct Retro.

 

Initiators can confirm when UCPath requires exceptional approval by reviewing the number of approval steps upon submitting a transaction; exceptional approval is required when two approval steps are displayed (see Figure 3).

UCPath Direct Retro approval workflow for high risk transaction

Figure 3. Exceptional approval is required when two approval steps are displayed in the Approval Workflow details section after submitting Direct Retro.

 

To ensure that your transfer is approved by CGA in a timely manner, follow all guidance for appropriate cost transfers, and take these five steps to complete the Payroll LCT submission process:

  1. Complete the Late Cost Transfer Policy Exception Request Form
    • You must obtain the approval of the appropriate department financial administrator
  2. Complete all late payroll transfers using the UCPath Direct Retro process
  3. Salary Cost Transfer Initiators must complete the Questionnaire section in UCPath to include the following:
    • An explanation of how the error occurred
    • The benefit to the receiving grant
    • A justification of the need to transfer the expenses after the 120-day period
  4. Obtain approval from the Principal Investigator
  5. Submit the Late Cost Transfer Policy Exception Request Form and supporting documents via email to: [email protected]
    • Include the UCPath Direct Retro number
    • Highlight the lines that are late in the Direct Retro transaction
    • Include all other pertinent information to explain the late cost transfer

Download the Late Cost Transfer Policy Exception Request Form and review additional process and guidance information on the Controller’s Office website. If you have questions about the cost transfer process, including the processing of late cost transfers, contact the CGA Compliance team at [email protected]