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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