Research Journal Entries Guide for Processing Adjusting Entries

Research Journal Entries Guide for Processing Adjusting Entries 1 Research Funds  There are two funds used for research: 30000 and 31000 Fund ID ...
Author: Oswin Mathews
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Research Journal Entries Guide for Processing Adjusting Entries

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Research Funds

 There are two funds used for research: 30000 and 31000 Fund ID

Fund Description

30000

Research Externally Sponsored

31000

Research Internally Sponsored

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Research Projects

 All research projects begin with a “3”. Projects are set up in ranges, and each research grant/contract has a unique project number Project ID

Description

341296

SSHRCC 410-05-0174

378711

BIOL GIBCO BRL

378307

SPECIAL RESH OVHD

394657

CIHR MOP 68877

398086

CIHR FELLOW

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Research Fund ChartField String

Fund (1)

Department (1)

Account (1)

Program (2)

Class (3)

Project (4)

31000

11540

640001

11601

1319

378711

Research Internally Sponsored

Biology

Travel

Conference 01

Calgary

Biology GIBCO BRL

(1) Required (2) Optional (required for CFI research projects) (3) Optional (4) Required (for Research and Capital funds)

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Journal Entries - General Principles

 Expenses may be recoded to a research project from a different research project, or from outside of the research fund  Expenses must be eligible as per the rules of the research project receiving the expenses AND must fall within the allowable project dates  For agency specific guidelines regarding expense eligibility, please refer to our website

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Journal Entries - General Principles

 Revenues should never be recoded between projects unless approved by Research Accounting  Journal entries should be based on current fiscal year transactions

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Recoding Expenses

Example 1: When recoding expenses from one project to another within the research fund, the account should be reflective of the actual expenses originally incurred. For example, to recode lab supplies initially charged to project 383859 totaling $100.00 to project 341598: Debit: Credit:

30000-11420-602007-xxxxx-xxxx-341598 31000-11420-602007-xxxxx-xxxx-383859

$100.00 ($100.00)

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Recoding Expenses

Example 2: When recording expenses from a non-research fund to the research fund, the account should be reflective of the actual expenses originally incurred. For example, to recode travel expenses initially charged to an operating fund to project 379444: Debit: Credit:

31000-13306-640001-xxxxx-xxxx-379444 $200.00 10000-13306-640001-xxxxx-xxxx-xxxxxx ($200.00)

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Account 480001

 Account 480001 (Revenue University Funds) may be used to transfer revenue to an internally sponsored research project  Account 480001 must be used on both sides of the journal entry as it must net to $0 across all funds  Account 480001 should not be used for cost recovery transactions

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Account 480001

Example 3: When transferring revenue from a non-research fund to an internally sponsored research project, account 480001 (Revenue University Funds) should be used on both sides of the entry. For example, to move $500.00 of revenue from an operating fund to project 378646: Debit: Credit:

10000-13416-480001-12013-xxxx-xxxxxx 31000-13416-480001-xxxxx-xxxx-378646

$500.00 ($500.00)

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Account 699005

 Account 699005 (Grants, Contributions) may be used to record internal grants  Account 699005 should not be used for externally sponsored research projects

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Internal Cost Recoveries

 Cost recovery accounts beginning with 699xxx are no longer active (exception is account 699005-Grants, Contributions)  Internal Cost Recovery (ICR) accounts have been created within the existing expense budget nodes and begin with “ICR”  ICR accounts should only be used to record internal cost recoveries

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Internal Cost Recoveries

Example 4: In order to recover printing charges from project 399999, expense account 606001 (Printing/Photocopying) is used to charge the expense, while account 606002 (ICR-Printing Services) is used to record the recovery. Debit: 30000-11170-606001-xxxxx-xxxx-399999 $1,000 Printing/Photocopying Credit: 10000-11170-606002-xxxxx-xxxx-xxxxxx ($1000) ICR-Printing Services Note: Please refer to the following link for a list of ICR accounts: http://www.queensu.ca/financialservices/support/additionalresources/recordinginternalcostrecoverymay12013.html

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External Cost Recoveries

 When recording external cost recoveries, funds should be deposited using the appropriate expense account  For example, if an external organization provides funding to cover specific travel expenses related to research project 399999, the funding should be deposited to the following chartfield values:

30000-42001-640001-xxxxx-xxxx-399999

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Recoding Salaries and Benefits

 Benefit Allocation Process: Human Resources charges fringe benefits to the different types of benefit accounts (EI, Dental Insurance, etc.). For reporting purposes, Financial Services groups benefit expenses under the appropriate benefit account listed below:

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Recoding Salaries and Benefits

Project

Account

Descr

Amount

Dept

Fund

341598

505101

Master's Students-Cdn

393.12

11420

30000

341598

550005

Worker Comp

1.42

11420

30000

341598

550005

Worker Comp

-1.42

11420

30000

341598

550008

Health Tax

7.66

11420

30000

341598

550008

Health Tax

-7.66

11420

30000

341598

550011

CPP Pay

16.46

11420

30000

341598

550011

CPP Pay

-16.46

11420

30000

341598

550012

EI Pay

10.08

11420

30000

341598

550012

EI Pay

-10.08

11420

30000

341598

550031

Master's Stu. Cdn - Benefits

35.62

11420

30000

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Recoding Salaries and Benefits

 When recoding salary and benefits, the original benefit accounts (EI, CPP, etc.) must be used in the journal: Credit: Credit: Credit: Credit: Credit:

30000-11420-505101-xxxxx-xxxx-341598 30000-11420-550005-xxxxx-xxxx-341598 30000-11420-550008-xxxxx-xxxx-341598 30000-11420-550011-xxxxx-xxxx-341598 30000-11420-550012-xxxxx-xxxx-341598

($393.12) ($1.42) ($7.66) ($16.46) ($10.08)

Master’s Student-Cdn Worker Comp Health Tax CPP Pay EI Pay

Debit: Debit: Debit: Debit: Debit:

31000-11420-505101-xxxxx-xxxx-383859 31000-11420-550005-xxxxx-xxxx-383859 31000-11420-550008-xxxxx-xxxx-383859 31000-11420-550011-xxxxx-xxxx-383859 31000-11420-550012-xxxxx-xxxx-383859

$393.12 $1.42 $7.66 $16.46 $10.08

Master’s Student-Cdn Worker Comp Health Tax CPP Pay EI Pay 17

Accounting for Overhead (Indirect Costs)

 Research projects which are subject to overhead will be charged a monthly overhead rate based on expense transactions incurred in a given month  When completing a journal entry to close a research project which is subject to overhead, the overhead rate must be factored into the amount that is being recoded, in order to bring the project to a $0 balance

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Accounting for Overhead (Indirect Costs)

Example 5: Project 364444 is subject to an overhead rate of 30% on total direct costs (all expenses). The project is currently in a deficit of $100.00.

Step 1: Calculate $100.00/1.30 = $76.92 Step 2: Recode supplies from project 364444 to alternate project 341598 using calculated amount: Debit: 30000-11420-600009-xxxxx-xxxx-341598 $76.92 Credit: 30000-11420-600009-xxxxx-xxxx-364444 ($76.92) Step 3: When overhead is run later that month, the 30% overhead rate will be applied to the ($76.92) credit amount: ($76.92) x 30% = ($23.08) The ($23.08) credit will be applied to project 364444, bringing it to a $0 balance.

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Contact Information

Financial Services Website http://www.queensu.ca/financialservices/index.html Research Accounting http://www.queensu.ca/financialservices/researchresources/cont acts.html Email: [email protected]

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