This dashboard shows budget information on where a Cost/Expense Transfer was moved to (the Award where the expense was moved onto).
Potential High Risk Activities
The expense is being added, at a later date than originally posted, to another sponsored Award. The following issues can arise:
- There can be a question of if the expense actually belongs to the Award onto which it has been moved. If the expense was originally posted to another Award, it needs to be proven why it belongs to the Award it is being moved onto.
- Transfers can be viewed as being done for budgetary convenience where expenses are moved off an over-spent Award or moved onto an under-spent Award.
- A high volume of Transfers (on a single Award, within a single unit, or individual PI) is an indicator of lack of Internal Controls within a department or unit.
- All Transfers must be documented in MyFD and such documentation is publically available and open to review. Such documentation can indicate a lack of internal controls or exposure of inappropriate financial management practices.
- A delay in transfer (more than 120 days from original posting to move) is in violation of GIM 15 and is an indication of lack of internal controls and a long period where the expense was paid by another award.
High Risk Indicators:
- A high volume of Transfers by a single unit, PI, or Budget.
- A high volume of Transfers onto an Award in the last 30 days before the Total or Budget Period End Date. This can be an indication that the Award was underspent and expenses are being moved onto the Award for Budgetary Convenience.
- A large number of days between expenses’ original posting and posting of Transfer. Transactions with a number of days greater than 120 is in violation of GIM 15 and should be reviewed.
- A large Dollar value of an individual transaction can be an issue are large transactions have bigger impacts on budgets and billing to erroneous sponsored awards. An incorrect large transaction posted to an incorrect budget for more than 30 days is an indication of a lack of internal controls.
The following transactions are filtered out (not included) in the Dashboard:
- Transfers onto Non-Sponsored Award budgets;
- An absolute value less than $100;
- Transfers between a Parent and Sub-Budget; and
- Transfers between Sub-Budgets with the same Parent.
A Cost/Expense Transfer cannot be removed from the financial system (it can be reversed but not removed) nor can the information provided in MyFD be edited or removed. Given that:
- If a Transfer was done in error or the expense moved to an incorrect budget then the expense should be moved to the correct budget.
- All expenses moved onto an Award should have documentation that clearly shows the benefit of the expense on the Award. This is particularly true if the expense was done more than 120 days from original posting, was done near the end date of the receiving Award, the receiving Award had a surplus balance prior to the moving of the expense and/or a number of other expenses were moved onto the same Award at the same time.
- If a Transfer has weak or incomplete supporting information, then additional explanation can be added to the file to support the Transfer in the event of a review.
- A trend high volume of transactions within a unit, or by an individual PI, or on a single award should be reviewed to determine the cause.