How To
Review Monthly Expenditure Reports
Categories:
Introduction
This table lists the Process, guidance, tools and reports you can use for your monthly review of expenditure reports.
| Process | Current Guidance | Tools & Reports to Assist this Process |
| Does the budget match the award, or other budget information? |
Verify the expenditure report matches the sponsor & Stanford's Notice of Award Open tasks opened if cost sharing is required |
Sponsored: To verify budget accuracy, use the sponsor's Notice of Award. Capital Projects: Contact Capital Accounting if you have questions about the budgets. Review Cardinal Curriculum Managing Sponsored Projects
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| If the PI wants to rebudget- is it allowed by the sponsor? | A change in scope always requires approval |
Refer to Sponsor Notice of Award terms and conditions. In the eCertification System, this can be found on the Account Detail page by click on the "i" icon. Resource: Award Acceptance: Review Award Terms and Conditions |
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Are there any unusually large or small expenditures in relation to the budget, prior months' trends, or other expectations?
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If so, correct “genuine ”errors, such as:
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Review the Commitment Management System (CMS). The following policies, reports, and job aids are available for your reference and use: Administrative Guide Memo 3.1.3 : Expenditure Accounts (PTAs) Overview of iJournal Module of Oracle Financials Cost Transfer Policy for Sponsored Projects Overview: About the Labor Distribution Module of Oracle Financials Reports available in BI: Burn Rate Analysis Report Reports Available re: Suspense Account in BI: |
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Are all expenses:
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Review for compliance with policies. |
Discussion on Allowable and Unallowable Expenditures Reports available in BI: Details also available in eCertification System by drilling down on the Account Detail page. |
| Are salaries appropriate and charged to the appropriate PTA and Expenditure Type, or if not, have corrections been initiated? |
Salaries may be held in an Org suspense account and must be cleared. If you have questions about whether or not you have salaries in a suspense account, contact your department administrator. Corrections to salary errors are done with a LD Adjustment; expenditure type corrections must be processed through the Payroll Department. If a wrong PTA was used, correct through an iJournal. To ensure these errors don’t repeat, make the change in the Labor Distribution schedule. |
Check the "Quick Steps: Calculate Vacation Accrual" Reports available in BI: Finance & Labor Management Dashboard re: labor distribution and earnings by PTA View 100% Salary Distribution in the eCertification System. |
| Does effort for "Key Personnel" appear to match the award, or if not, are sponsor notifications required? | Note: A change in scope or a reduction in PI effort of 25% or more requires sponsor approval. Propose salary as anticipated by the project scope. |
Review the effort committed in the awarded budget & Sponsor's Notice of Awards. In the eCertification System, this can be found on the Account Detail page by click on the "i" icon. See DoResearch Topic: Faculty Effort |
| Does the NIH salary cap apply to any of these charges, and if so, was it properly treated? |
The difference must be identified on the PeopleSoft Job Earnings Distribution Panels using the special Expenditure Type, “RBE UNALW SLRY OVER CAP 51190" (RBE =Regular Benefits Eligible) Adjustments can be made via labor distribution. |
See DoResearch Topic: Salary Caps |
| If vacation or disability sick leave has been taken, has it been properly accounted? | Time-keeping at Stanford is maintained in Axess Time and Leave. For proper accrual and credit of vacation and sick leave, it is essential all employees input all leave into this system. Verify leave by reviewing your Expenditure Detail Report. |
Run a Leave Accrual Detail report (PS_TL006) in PeopleSoft. |
| Have the correct fringe benefit rates been applied? |
Don’t calculate the rate; just verify the correct rate was used (e.g.: faculty salary, student, etc.).
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See DoResearch Topic: Rates |
| Has equipment been pre-approved (if necessary) and recorded in Sunflower? |
Check your agreement to ensure the equipment is pre-approved (if not, contact the sponsor through OSR/ERA/RMG to obtain approval). Ensure your Department Property Administrator (DPA) has tagged and entered the property into Sunflower. |
Refer to Sponsor notice of award documents. In the eCertification System, this can be found on the Account Detail page by click on the information icon. |
| Has title been reflected with the proper Expenditure Type and if sales tax is applicable, is it properly charged? | Generally, sales tax must be applied to purchases with title vested to Stanford, but is not applied to purchases where title of equipment or material vests in the federal sponsors. Review transactions to verify sales tax has been applied correctly. | Expenditure Type Table for Property and Equipment |
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Are you fabricating equipment? Have fabrication projects been coordinated through the Property Management Office (PMO) and properly documented? |
Verify all fabrications have either been created or converted with the appropriate PTA (and that the task is noted “fabrication”). Ensure a fabrication request form is on file. | View the Fabrication Procedures - outlined in the Property Management Manual |
| Are travel expenses allowable, allocable, reasonable and consistent? |
Review these expenditures for reasonableness, appropriateness and compliance with policy (e.g. pre-approved where necessary, lowest available fares, correct per diems or receipts for reasonable and actual expenses).
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Expense Guidance For Business Meals Administrative Guide Memo 5.4.2 "Business and Travel Expenses"
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| Does the project have a subaward? If so, has the PI reviewed the Subaward’s invoices? |
Ensure expenditure types are correct as this affects the IDC calculation (remember, indirect costs are only charged to the first $25,000 of a subaward). Are all expenses:
Has the PI reviewed and certified approval of the invoice? Subaward invoices require the following statement to accompany the PI’s signature: “In signing below I approve payment of this invoice and attest that the charges appear reasonable, and progress to date on this project is satisfactory and in keeping with the statement of work.” |
See DoResearch Topic: Subawards RPH Chapter 16: Subawards
Purchase Order The Cardinal Curriculum - Subawards If you manage a subaward you must take DOR-1122, Subawards. |
| Are tuition charges made to the correct PTA and Expenditure Type? |
During the first months of the quarter tuition appears as 51960 "Beginning Term Tuition Allowance Prepaid". At the end of the term they are transferred centrally to 51975 "Tuition Allowance." |
Administrative Guide Memo 10.2.1 "Graduate Student Assistantships" Salary and Tuition Allowance Tables
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| Are the F&A rates or the Infrastructure Charge rates correct, and have they been applied to the correct base? | Don’t calculate the rate; just verify the correct rate was used (e.g.: infrastructure, or for sponsored if the work is being performed off campus, was the off campus rate used, etc.) |
Administrative Guide Memo 3.3.1 "Infrastructure Charges" See DoResearch Topic: Rates
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| Have appropriate credits posted, e.g., prior transfers, sales of surplus property, program income? | Review for reasonableness and appropriateness. |
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| Have the correct PTAs and Expenditure Types been used, or if not, have corrections been initiated? | If expenses are charged to an incorrect PTA or the wrong Expenditure Type was used, correct them via iJournals. |
See DoResearch Topic: Cost Transfers Create Salary Distribution Adjustment in LD
labor adjustment detail in BI: |
| If cost sharing was committed on a sponsored project, has cost sharing been incurred and charged to the appropriate cost sharing PTA? | Cost sharing requires a new task and award. Contact OSR for a cost sharing task if you don’t see one on your report. |
See DoResearch Topic: Cost Sharing Reports available in BI: |
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If charges on this PTA have been allocated, is the allocation basis documented? If costs are charged via allocation journal, has proper authorization been obtained? |
Regardless of funding source all expenses must be allocated based on a reasonable allocation method. Sponsored Projects must clearly document allocability. | |
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If this award is nearing the “end date”, review:
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Financial closeout should be completed if possible. Remember – even if we can’t perform a financial closeout on a project, we can still submit technical and patent information to the sponsor. |
See DoResearch Topic: Closeout Procedures |
| Do you expect this PTA will go into overdraft, and if so, are there actions to take? |
1. Take care to note if PTA appears to be heading for overdraft – especially if there are missing items and there is little or no funding left. 2. If you know the PTA is in overdraft before the end date, transfer charges as appropriate to a benefiting PTA. 3. After the end date an overdraft must be transferred to a “cost sharing task”. 4. If total overdraft is less than $500, transfer lump sum (net of indirect costs) Expenditure type 56135 to an appropriate unrestricted PTA. |
Administrative Guide Memo 3.1.3 : Expenditure Accounts (PTAs) RPH 3.2: Management of Project Expenditures - Overdrafts section Reports available in BI: |
| Has appropriate documentation been retained (on-line and centrally-filed, or in department files and does it match to the charges? | Confirm that documentation exists and supports charges on expenditure report (including receipts for Purchasing cards.) |
The eCertification System contains much of the supporting documentation. You can also upload supporting documentation in the Comments and History tab on the Account Detail Page. Reports available in BI: |
Created: 11.28.2020
Updated: 07.08.2024