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Allocated expenses meaning9/17/2023 ![]() ![]() This allocation is being processed in accordance with policy.The originator of the journal attests to the following when creating the allocation journal: For allocation journals, written approval must be on file from individuals with signature authority over the PTAs being charged, while online approval is required for the PTA or Project-Fund-Object being credited. The department originating the journal/feeder must maintain documentation of written approval. Approval can be evidenced in writing in a memo, on a request form (e.g., SU-13 or similar form) or via electronic means. Approval for other allocations and feeders can be a "blanket" approval for regular ongoing costs allocated in a consistent manner. Certain feeder transactions, such as utility charges, are approved implicitly as part of the annual budget process. Approvalsīefore an allocation journal or feeder is submitted to the financial system, the department processing the journal/feeder must have received approval from an authorized individual for each PTA charged. Feeder systems track the charges and maintain documentation in their own systems. The originator of the journal must include comments about the distribution basis in the online documentation and retain documentation of the allocation methodology and calculation results in accordance with the government and University's record retention requirements. Online expense allocation documentation must clearly show the nature of the cost being allocated. For more information, see Research Administration Policy and Compliance. Departments shall not use any type of pooled allocation method to charge expenses to federal sponsored agreements except from a service center with approved rates, or as described in the Research Policy Handbook. Administrative expenses may not be distributed or rotated among sponsored agreements. Feeder systems typically charge other departments based on usage or services provided at specified rates. ![]() The allocation methodology must produce a result that is allowable, allocable, reasonable and consistent. It must produce an allocation to each activity/account in reasonable proportion to the benefits received. The basis of allocation/distribution (e.g., effort, square footage, headcount) must logically relate to the type of costs being allocated. ![]() Sponsored project PTAs may not be used as expenditure allocation PTAs. If salary and material expenses must be combined, a service center must be used. Salary and material costs cannot be combined in the same expenditure allocation PTA. Expenditure Allocation PTA DefinitionĪn expenditure allocation PTA, as described in Guide Memo 3.1.3: Expenditure Accounts (PTAs) is a special PTA in which charges for materials, supplies, services, or salaries are accumulated, and then allocated each month to PTAs receiving the benefit of the good or service. Often allocations are repetitive or are required on a regular basis. Allocations are also used to distribute charges from independent systems (known as "feeders") into the financial system. They may also be used to distribute costs between benefiting PTAs when a purchase was originally charged to one PTA and one or more other PTAs also benefited from the purchase. ![]() Allocations are often used to distribute costs from expenditure allocation PTAs (formerly knows as "clearing accounts") or service centers. They are used to distribute expenses to PTAs receiving the benefit of the good or service. Allocations are used in situations where it is difficult to determine in advance how much to charge each PTA for a shared supply or service. Expense Allocation PoliciesĪn expense allocation is a method that enables apportionment of a particular expense or expenses to Projects-Tasks-Awards (PTAs) that specifically benefit from those charges. This policy applies to all Stanford employees responsible for accounting transactions. This Guide Memo sets out policies and procedures for expense allocations and salary distribution offsets, which are a form of cost transfer. ![]()
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