Update: Cost Transfers Involving Sponsored Projects – Workday Enhancements

November 3, 2021

Workday enhancements have been made based on the guidance issued in February 12, 2020 edition of Business Update. Policy 1305 Cost Transfers Involving Sponsored Projects defines a cost transfer as:

A Cost Transfer is the reassignment of an expense to or from a sponsored project after the initial charging of the expense in the University’s accounting system. Cost Transfers include reassignments of salary, wages, and other direct costs. Cost Transfers do not include reclassification transactions within the same sponsored award. In addition, because salary allocations are initially made based on estimated effort over an extended period, Cost Transfers do not include changes to these allocations when actual effort is determined to be different prior to, or due to, effort certification by the PI. Reassignment of salary charges made in error, however, are considered to be Cost Transfers.

PAAs resulting from pre-certification review activities to reallocate estimated effort, are not considered to be a Cost Transfer (as defined in the revised Cost Transfer policy). Workday now allows these PAAs to be removed from the Cost Transfer population. Departments preparing the applicable PAAs should select the Change Reason, “Grant Adjustment - Reallocate Effort (Pre-Certification).”  This new Change Reason will not require the completion of the PAA justification form and will not be subject to the 90-day provision inclusive of extenuating circumstances. With exception of Previously Certified Effort (PCE) Cost Transfers, these PAAs will no longer route to SPFA for posting, but will post once approved by the department or business support unit. Note: This change reason must not be selected for Previously Certified Effort (PCE) Cost Transfers. If the change reason is selected and the PAA is a true (PCE) Cost Transfer, the Effort Certification Manager (ECM) will not approve the transfer.

This update pertains only to the Workday system changes. SPFA will be communicating more on the Policy revisions and frequently asked questions in a future OSP Brown Bag Presentation. Contact your SPFA Accountant for further guidance as it relates to Policy requirements or osp.businessanalytics@yale.edu with any system related questions.