Policies and Processes

Accounts

Accounts are created with the "Account Create" module in ACCTS. You can create General Ledger (GL) accounts AKA 0-ledgers as well as Subsidiary Ledger (SL) accounts AKA 2,4,5,6,7,8-ledgers. GL accounts are designed to track the fund balance of assets and liabilities that the University has while SL accounts track individual transactions. All SL accounts must map to a GL account. An SL account cannot map to multiple GL accounts, but multiple SL accounts can map to the same GL account. The map code for an account is very similar to the GL account to which an SL account is mapped. The map code will always be the last 5 digits of the GL account (i.e. GL account 0-27001 = map code 27001).

All awards must have their own GL account and should never share a GL account with another award or a university funded account. New unrestricted accounts for faculty research incentive accounts should also have their own GL account not shared with others unless requested by the Dean's Office.

GL and SL accounts are linked in FAS, but the account details are not automatically shared, thus any updates to names, award ID, dates, etc. must be changed for each account.

The function of an SL account can often be identified by their prefix numbers. However, this should be used only as an initial guide because there are exceptions. Common prefixes are listed below. A full list of account "blocking" can be found in the FAS User's Manual.

• NSF grants: 5-27xxx master account, 5-43xxx associate account
• NASA grants: 5-28xxx master account, 5-64xxx associate account
• DOE grants: 5-29xxx master account, 5-80xxx associate account
• HHS grants: 5-20xxx master account, 5-32xxx associate account
• state/local agency, foundations: 6-34xxx master account, 6-94xxx associate account
• departments: 4-53xxx
• general unrestricted: 2-60xxx and 2-64xxx
• recharges: 2-52xxx
• gifts: 6-31xxx and 6-32xxx master account, 6-91xxx and 6-92xxx associate account
• endowed gifts: 7-43xxx and 7-44xxx

Unrestricted Accounts

Unrestricted accounts are internally funded accounts (as opposed to externally funded sponsored awards or gifts). As such, they do not have spending restrictions aside from University regulations. Business meals, honoraria, program income, and other expenses generally prohibited on sponsored awards can be charged to unrestricted accounts.

Master and Associate Accounts

An associate account is an SL account that is linked to another SL account through its budget and for financial reporting purposes. You must designate the master account when you create the associate account. An associate account inherits the master's map code.

A master account may have multiple associates, but an associate can have only one master account. Associate accounts are usually only made for sponsored award accounts and not internally funded accounts. An award should have only one master account, but may have multiple associate accounts.

Associate accounts are created for a number of special cases. The most common reasons for associate accounts are:

1. When a single award must use two or more indirect cost (IDC) rates. In FAS, an account cannot have more than one indirect cost rate at the same time. An award will have more than one applicable IDC rate if parts of the project will be conducted both on and off-campus or if it contains participant support costs. In this case, the master account is used for the on-campus costs, and an associate account will be created for the off-campus costs, and so on.
2. To segregate costs in a large award that is comprised of several distinct projects. In such a case, an associate account can be created for each separate project under the award.
3. For cost sharing accounting which will be dealt with elsewhere.
4. When a PI and co-PI are in different divisions or departments. In this case, it is best to create an associate account for each additional participating department and assign the exec and dept codes to the accounts accordingly. This will allow administrators across divisions to better track expenses for their departments and also allows for a more accurate recording of IDC allocations by department.

Associate accounts should have the same short name, and award details as the master account. However it is best to make the long name more descriptive of the account's purpose rather than copying the master account. For instance a master account named "modeling deep-sea pyroclastic flows" might have an associate titled "pyroclastic flows (off-campus)" or "pyroclastic flows (cost share)".

Associate accounts are linked to the master in the budgeting process, but other updates to the master will not automatically be updated in the associates. For example, budget begin/end dates, account names, PI, authorized signer, and account administrators must be separately updated for each account. Likewise, account freeze flags can be applied to the associates and not the master account. Also, master and associate accounts must be closed separately each with its own closing memo.

Sometimes it is useful for an associate account to have a different authorized signer and/or account administrator from the master account. One example is when an associate is assigned to a different department or division from the master. In such cases it is important to coordinate the closing process with all of the administrators involved.

Unrestricted accounts are 2 and 4-ledger accounts, but the former are the focus here. At the end of the fiscal year, FAS will do one of the following to all 2-ledger accounts: (1) rollover the balance to the next fiscal year (budget re-appropriation) or (2) reset the balance to $0 (default). Typically, recharge accounts and auxiliary service accounts are reset to $0. However, other accounts like research incentive accounts and accounts for some University programs should have their balances rolled over. Whenever creating a 2-ledger account, inform Vickie Taylor via email and indicate whether or not the balance should be rolled over to ensure the proper year-end handling of the account. It is always a good idea to check the preliminary July ledgers to make sure that your 2-ledgers accounts were handled properly.

Many unrestricted accounts meant for general unspecified expenses are left un-budgeted, but if the account is for a specific program with defined expenses over a period of time, then it may be appropriate to enter a budget. Unrestricted accounts are typically funded with journal vouchers from 2 and 4-ledger accounts. Sponsored awards should not be used as funding sources for unrestricted accounts. Recharges and auxiliary services ought to break even by the end of each year. Other general expense accounts may carry balances forward, but should not be allowed to maintain long term overdrafts.

For more about unrestricted accounts and year-end processing, see the following sections in the FAS Manual: Ledger 2 Blocking, Ledger 4 Blocking, Year-end Processing.

Cost sharing is when the University takes responsibility to expend its own funds on behalf of a sponsored award. Cost sharing come thre three varieties: involuntary committed (mandatory), voluntary committed, and voluntary uncommitted.

Involuntary committed (mandatory) cost sharing occurs when the sponsored program requires financial support for the project from the awarded institution as a condition of the award. This can be in many forms such as a matching contribution or a percentage of certain costs. The specific formula should be described in the solicitation notice. The proposal budget must clearly show how the University will meet its obligation.

Voluntary committed cost sharing is when the proposing institution volunteers and commits to bear a specific portion of the costs of the project when it is not required. To volunteer matching funds, percentages of costs, or other similar contributions is rare and often discouraged by many funding agencies. If allowed, the volunteered cost sharing should be detailed in the budget or project narrative as appropriate. NSF prohibits the use of voluntary committed cost sharing on its awards.

For the two types of committed cost sharing, the difference is in the motivation while the administrative handling is the same for both. Either form of committed cost sharing requires Division/Department approval.

Voluntary uncommitted cost sharing is when the University volunteers to provide extra resources to the project in ways not detailed in the proposal budget. This could be in cash or in kind, but there is no obligation to track this extra support in the award accounts, with one exception. The exception is when the PI chooses to expend some unspecified amount of effort more than what was detailed in the proposal. This is usually the case when the PI is not requesting salary from the award, and so is providing his/her effort for free. Per University policy, the PI must demonstrate effort on any award even when no salary is taken. In order to demonstrate this, a cost sharing account is created to capture nominal effort such as 0.5 months per academic year (more than 0.5 months requires Division/Department approval). Voluntary uncommitted cost shared effort should not be included in the proposal budget, but should be on a report of current and pending support. There is no requirement to document other extra support from the PI or the University (e.g. un-reimbursed business trips, donating materials to the project) and it requires no approval.

The 0.5 month effort cost sharing situation only comes up when the PI is taking $0 salary from an award during any one project year (summer and academic year included). If a PI with an academic appointment is taking $0 salary in summer salary, but is committing effort and drawing salary from a grant during the academic year, then that would be a salary recovery situation. Salary recovery is essentially the opposite of cost-sharing since the grant is being charged for salary amounts the University would normally pay. Salary recovery situations require neither cost sharing accounts nor any other special accounting. It is, however, good practice to indicate whether the PI's effort is summer or academic year in a proposal's budget justification and it must be detailed in the PI's current/pending report.

Unless explicitly prohibited in the solicitation and/or the award documentation, a PI must receive some direct salary from an NSF award to demonstrate effort, therefore the 0.5 month voluntary cost sharing is not allowed by NSF. However, we will continue the practice with other agencies until further notice.

Cost Sharing Accounts

Cost sharing requires three separate accounts: the award master account, the cost sharing associate account, and the cost sharing funding account. No single account can perform more than one of these functions concurrently.

The cost sharing associate account is the account connected to the award in which the University will demonstrate its financial contribution. The funding account is the University funded account from which the cost sharing expenses will be ultimately paid. A cost sharing account can be linked to only one funding account.

When a cost shared expense is incurred it is initially charged to the cost sharing account, but it will be automatically transferred to the funding account through subaccount 9740. Therefore, no expenses should remain in the cost sharing account. If the cost shared expenses are faculty salaries in the same department, then the department's instruction account would suffice as the funding account. If the cost sharing funding to support the project is coming from more than one source, then a 2-ledger account should be created for the funding account. When created, funds should be transferred to the 2-ledger account from the participating departments in order to cover all of the cost shared expenses. This is preferable to creating multiple cost sharing accounts for the same award

The budget and the balance in a cost sharing account should always equal $0. For example, if you need to cost share $10,000 of faculty salary:

1. Create an associate account to the master account for the award
2. Put "cost share" or "(CS)" in the long account name
3. Enter the cost sharing funding account number (where the money will be ultimately charged) NOT to be confused with the guarantee account and select the correct type of cost sharing (mandatory/voluntary)
4. Unless the award specifically allows indirect costs (IDC) as an element in the cost sharing formula, set the account's IDC rate to 0%
5. Start a $0 budget for the associate account (do not change the master account budget)
6. Enter a debit for $10,000 in subaccount 1000
7. Enter a debit for the appropriate amount of benefits
8. Enter a credit in subaccount 9740 for the total of the amount debited (this is the subaccount for the transfer out to the funding account)
9. Enter the reason for the budget entry and you are done.

Some things to keep in mind...

• a CS account should always be an associate account for an award
• a CS funding account is usually a specially created ledger 2 or ledger 4 account, but is NEVER EVER NEVER another award account
• you should not budget IDC unless the award explicitly allows IDC in the cost sharing formula. Therefore the IDC rate of most cost sharing accounts should be set at 0% during the account creation process.

The University can reimburse faculty, staff, students and visitors/guests for qualified travel expenses incurred while on University business. The University maintains a list of reimbursable expenses. Benefits eligible University employees can be reimbursed via GEMS for expenses while on University business. Travel reimbursements for students should use the Student Reimbursement Request Form. All other travel reiimbursements should use ePayment requests. Spouses or dependent travel companions cannot be reimbursed for their expenses without prior written approval from the Vice-President for Administration and the CFO.

Whether or not an expense can be considered for reimbursement depends on who initially pays for it. Only those expenses that the traveler actually pays for can be eligible for reimbursement. Expenses that others pay for on the traveler's behalf cannot be treated like a travel reimbursement. For example, if a prospective faculty member visits campus for an interview and the department offers to reimburse travel expenses, then meals, transportation, and lodging paid for by the traveler would qualify as travel expenses. However, if the department chose to pay for the traveler's meals and transportation directly, such expenses could not be treated as reimbursable travel expenses because they were never paid for by the traveler. Instead the department would need to treat them as business expenses (e.g. meals = subaccount 3xxx instead of 7xxx or local taxis = subaccout 44xx instead of 7xxx).

When faculty, staff, or students travel 50 miles or less from Campus (not the traveler’s home) the traveler may be reimbursed for local transportation costs, but not for meals or lodging according to the IRS provisions on local travel. 

Note: There are few exceptions, see your financial administrator for details.

There are a few things to keep in mind when using federal funds for travel expenses:

• To comply with the Fly America Act, a US airline or flight code-shared with a US airline must be used, with the following exceptions: a European Union airline may be used when traveling to a European Union member state; an Australian, Japanese, or Swiss airline may be used when traveling to those respective countries when the GSA does not have a published rate for your specific city pair destination (see GSA city pair rates). The receipts and ticket stubs must be able to demonstrate the airline and any code-sharing.
  Foreign airlines may be permitted under other limited circumstances depending upon agency rules. If one intends to use a foreign airline, the Financial Administrator should be consulted in advance to determine how the expense should be handled.
  If the airfare does not comply with the Fly America Act, then it must charged to an internally funded account or paid for by the traveler.
• While travel meals are allowed on federal grants/contracts, alcohol is always prohibited.

Receipts and Per Diem

Receipts for expenses over $75 must be retained. All lodging receipts, regardless of amount, must be retained. All receipts must indicate both what was purchased and proof of purchase. Travel itineraries and reservation confirmations are not sufficient substitutes. When completing the reimbursement request, the traveler must itemize all reimbursable expenses including those for which receipts are not required or missing.
Note: Even meals and taxi trips should have detailed receipts. When expecting reimbursement, retain both the itemized meals receipt and the payment receipt. Likewise with taxis, ask the driver to fill out the receipt and sign it or request one from the cab company afterwards.

If required receipts are lost or missing, the traveler should first request replacement copies from the service provider. If the receipt proves to be unobtainable, the traveler should consult his/her Financial Administrator about appropriate substitute documentation (e.g. credit card statements, etc.). When submitting a duplicate copy of a receipt or alternate documentation, write the following statement on the receipt and sign it: “This expense was incurred in connection with University business. I have not and will not be reimbursed from any other source.”

The reimbursement must be based in US dollars. Any receipts in foreign currencies must be converted using the prevailing rate at the time of the transaction or on the last day of travel. GEMS has a built-in currency conversion tool, but other thrid-party conversion tools are allowable, such as oanda.com, if needed. The currency conversion method should be included with the receipts. If necessary, ultimate payment can be issued in various currencies through a wire transfer (not through GEMS).

Per diem for meals/incidentals is an option for travel reimbursements to University employees (students and visitors may not use per diem). Receipts and itemization are not required when using per diem. The meals/incidentals rate covers expenses such as: fees and tips given to porters, baggage carriers, hotel staff, etc. The traveler cannot seek additional reimbursement for such charges if taking per diem. Per diem for lodging is not permitted. While lodging reimbursements must be based on actual reciepts on federal awards, they may also need to be capped at the maximum per diem rate for the locale (calculated as the rate times the number travel days, excluding the final day of travel and any days on which lodging was not paid for) if the award documents reference the GSA spending limits.

When requesting per diem, it applies to the entire trip. One cannot choose per diem for some days and actual expenses for others. The meals/incidentals or M&IE rate is capped at no more than 75% on the first and last days of travel, and must also be reduced on any days when meals are provided for without additional out-of-pocket cost (e.g. conference meals included in registration or meals included in the hotel room rate). The meal deductions for international trips are 15% for breakfast, 25% for lunch, and 40% for dinner (rounded to the nearest dollar). The deductions are different for domestic trips because incidentals are fixed at $5 for all rates as opposed to 20% for international trips (consult the GSA website for details). Current federal per diem rates can be found at the following links – Domestic per diem rates / Foreign per diem rates.

Transportation Options

Travelers are free to choose their primary mode of transportation whether it is by air, train, bus, rental car, or personal car. Whatever method is chosen, the traveler cannot be reimbursed for more than the standard available coach airfare for the equivalent journey (see your Financial Administrator for exceptions if necessary).

The value of redeemed frequent flyer miles used towards airline tickets is not reimbursable.

Airline baggage fees are reimbursable, but other purely voluntary fees like early boarding, economy plus upgrades, etc. are not.

Insurance on domestic (US or Canada) car rentals is not reimbursable and should not be purchased additionally since faculty, staff, and students are covered by the University's blanket auto insurance coverage while traveling on University business. This applies to domestic car rentals, but not to personal vehicles or foreign rentals. Purchasing insurance is suggested and reimbursable when renting a car abroad. Travelers may need to show proof of insurance to waive additional insurance fees on domestic car rentals. It is best to obtain proof of insurance in advance. Instructions for doing so can be found at http://rmia.uchicago.edu/page/certificate-requests.

It is recommended that University travelers use one of the the contracted rental car agencies, Enterprise for local (Chicago metro/NW Indiana) rentals and National for other US locations. The traveler should reference the corporate contract numbers when scheduling a rental. If a car accident occurs while driving on University business, the traveler should report the accident to the Risk Management Department as soon as possible (no more than 24 hours later) at 773-702-1951. For more detailed instructions to follow after an accident, see the Risk Management website about claim reporting.

If using a private car, the traveler can be reimbursed for mileage (not fuel costs) at the prevailing federal rate during the time of travel. A map of the route to the destination (e.g. mapquest, google maps, AAA) should be provided and attached to the reimbursement request to establish the mileage of the trip. Road tolls and reasonable parking fees may also be reimbursed.

Local transportation at the destination by public transit, taxi, ferries, etc. is also reimbursable. However, trips on recreational and touring vehicles cannot be reimbursed.

Insurance

University employees traveling on University business are covered by the University's Business Travel Accident Insurance which covers death or a serious injuries in an accident while traveling on University business away from University premises. Any additional personal accident insurance coverage is not reimbursable.

Some insurance products are reimburseable only for foreign trips. Trip insurance (protection against additional costs that are caused by cancellations or delays/interruptions to travel) is reimbursable for foreign trips only. Collision damage waivers can be reimbursed only for car rentals in foreign countries because the University's insurance coverage in this area does not apply overseas.

Insurance protection for the loss of or damage to personal property is not offered by the University and is not reimbursable.

The GEMS program is the University's general expense management system used to reimburse benefits eligible University employees for their business expenses. This web-based expense management system works hand-in-hand with the University's optional GEMS credit card.

Reimbursements processed through this system are distributed via the payroll system. Therefore, any money owed to users will appear in their next paycheck according to the bi-weekly schedule. Employees on bi-weekly pay schedule will not see a separate check. Monthly employees will receive a separate pay advice for one or both of the bi-weekly pay periods.
Note: GEMS reimbursements will not normally be treated as taxable income. However, because of IRA regulations, the University can report GEMS card purchases as personal income if they are not attached to a GEMS report and submitted within 120 days. There are some exceptions, but GEMS card transactions are best reconciled within 30 days.

The recipient of the reimbursement (or his/her delegate) must prepare the expense report in GEMS, attach the appropriate documentation, and forward it to the financial administrator. If a delegate handles the preparation, the recipient will still need to approve the expense report prior its submission to the financial administrator.

Benefits ineligible employees, fellows, students, and visitors in the Physical Sciences Division should not use GEMS. Instead, ePayment requests should be used for travel and non-travel reimbursements.

Currencies

All reimbursements are paid in US dollars $USD by default. Any foreign currency amounts must be converted into $USD on the reimbursement forms. When converting currencies, a copy of the conversion method used should be attached to the reimbursement. Oanda.com is a popular and easy to use choice for currency conversions. The currency conversion should be based on the exchange rate at the time of the transaction or the end of the travel period (not the time of reimbursement).

Access

You need a CNET ID and password in order to access GEMS.

GEMS Card

A GEMS credit card can be issued to authorized faculty and staff to facilitate easier payment of frequent and/or time sensitive expenses. These cards can be designated for travel or procurement uses (or both) for University business. The GEMS card should not be used for personal expenses. Those who wish to apply for a card should consult with Michael Grosse or Henry Way before completing the application materials.

All GEMS card expenses incurred should be reconciled (submitted for approval and paid from the proper accounts) within 30-days after the purchase. The card holder will receive 30-day, 60-day, and 90-day notifications. Should GEMS card expenses remain unreconciled after the 90-day notice, the outstanding card balance can be deducted from the card holder's paycheck.

Non-Travel Reimbursements

Non-travel reimbursements for University business related purchases can be charged to internally funded accounts as well as grants and contracts. These expenses can be originally paid out-of-pocket by the employee or with a GEMS card (if available). Original receipts are required for any expenses over $75, but retention of all receipts is encouraged. However, each expense must be itemized regardless of whether a receipt is required for it (see Supporting Documentation Policy). When submitting a duplicate copy of a receipt or alternate documentation, write this statement on the receipt and sign it: “This expense was incurred in connection with University business. I have not and will not be reimbursed from any other source.” All reimbursements for students and sourced from federal funds should be accompanied with a Student Certification for Business Related Reimbursement form

Note: Benefits eligble employees should use GEMS for reimbursements of out-of-pocket expenses, all others should use ePayment requests.

Purchases

Whenever possible, procurement of goods and services should be made through the BuySite purchasing system. However, there are occasions when that is not a viable option (e.g. the vendor for a on-time purchase is not in our purchasing system, materials for University business are needed immediately or on a time-sensitive basis). There are also some goods and services which are often not paid for via purchase orders such as:

• Advertising
• Article Reprints/Copyright fees
• Books, Guides, Instructional Manuals
• Business Luncheon & Dinner Meeting Expenses
• Computer Software & Computer Online Services
• Conference Registration Fees
• Corporate Payments: Employment & Real Estate Taxes, Insurance Premiums,
• Employee Professional Development
• Freight Charges, excluding Federal Express
• Gifts
• Legal Fees, Benefit payments
• License Fees Membership Fees & Dues
• Membership Fees and Dues
• Parking Fines related to University owned vehicles only
• Penalties and Fines, other
• Photocopy expenses
• Postage
• Real Estate Acquisitions
• Reimbursements to Individuals for miscellaneous business related expenses
• Subscriptions to Newspapers and Magazines
• Unexpended Funds returned to sponsoring agency
• University Sponsored Event expenses.

For these kinds of purchases a personal reimbursement request should be filed through GEMS.

Non-travel related personal reimbursements paid out-of-pocket or with a GEMS card should be limited to $500 or less per reimbursement. GEMS card holders who are authorized to conduct procurement activities should keep any single purchase below $5,000.
Note: There is a $10,000 credit limit on the GEMS card during any given billing period.

Any goods or services for which the University pays a reimbursement becomes the sole property of the University.

Business Meals

Receipts for business meals are always required regardless of the amount. When paying with a credit card, the employee should retain an itemized bill as well as the signature receipt. When there 10 or fewer people attending the meal, the names of each attendee must be supplied.

Non-travel related business meals are allowed on internally funded accounts, but they are generally prohibited on federal grants and contracts unless explicitly allowed in the award documents. Alcohol is always prohibited on federal grants and contracts, but may be charged to internally funded accounts. Award documentation for non-federal awards should be consulted for any applicable restrictions.

Some departments and programs may have their own preferences and/or procedures for business meals.

• KICP host worksheet

Contracts

Employees cannot be reimbursed for entering into contracts that result in recurring charges, minimum frequency of use requirements, and term agreements (e.g. repair contracts, equipment leases, food service contracts, cleaning services, etc.). Any such contracts and agreements must be authorized by Central Procurement Services, see “Transactions.”

BuySite

Most purchases should be processed through the University’s Buysite purchasing system. The University maintains a list of preferred contract vendors for a variety of goods and services as well a full list of vendors in the Buysite system. Some purchases may also be paid with ePayments or GEMS cards. See the list of preferred purchasing methods for guidance on which method to choose. General information about porucasing policies and procedures can be found on the Financial Services website at finserv.uchicago.edu/purchasing/po/index.shtml.

Cost Limits

There is no theoretical price limit on BuySite orders, but addtional steps and documentation are required for high value purchases.

Purchases totaling $10,000 or less, including delivery, do not need price quotes.

Purchases $10,001 and above require competing quotes and documentation. In addition, the initiator must type the winning quote number in the “Quote #” box in the BuySite requisition. BuySite will reject requisitions over $10,000 where that box is blank.

Purchases between $10,001 and $250,000 should have a minimum of 2 (preferably 3) price quotes. Quotations need to be detailed in the Source and Price Reasonableness form, which must be attached to the BuySite order. Written price quotes are preferred. They should also be attached to the purchase requisition. It is the order initiator’s responsibilty to solicit the quotes. If competing quotes are not available or if the lowest quote is not the preferred purchase, the situation should be explained on the form.

Purchases over $250,000 be submitted to Procurement Services to solicit the quotes via a ServiceNow request.

Some preferred supplier contracts have special order handling procedures that may be exceptions to the rules above. If in doubt, check the terms of the preferred supplier contracts.

Source and Price Reasonableness Form

The Source and Price Reasonableness form is an internal document that must accompany all purchase orders between $10,000 and $250,000 (guidance in assessing price reasonableness). This form should not be sent to the vendors or anyone outside of the University. Any quotes and pricing information received from the vendor should not be shared with anyone outside of the University.

Purchase Orders that Do Not Go Through BuySite or Will Require Special Handling

• Orders to vendors who require payment in a foreign currency. BuySite cannot currently handle these.
• Orders to vendors who require advance payment or scheduled payments before completion of delivery.
• Orders that require Purchasing Department contract negotiation, such as purchased vehicles. Such orders are not especially common and usually you will have been in negotiation with Purchasing before you are ready to place the requisition.

Adding a Vendor to the System

Sometimes a desired vendor may not be available in Buysite. If this issue is encountered, the requestor should try to find another vendor in the system that sells a comparable product. If there are no other available vendors, then the requestor should contact his/her Financial Administrator to request the addition of a new vendor and provide the following information: company name, full address, telephone and fax numbers, and a contact person. This information is required when submitting vendor request to Shared Services.

Special Events

A special event is defined as a University-hosted venue involving services at any dollar amount to be provided by a supplier whether performed on the campus or at an off-campus location. When arranging contracted lodging, space rental, and/or catering for a special event, consult the guide found at https://finserv.uchicago.edu/purchasing/ppf/procedures/153502_planning.shtml.

Paying from an Invoice

A purchase not handled by requisition and purchase order can be paid with an ePayment request along with the appropriate invoice. However, in some cases it may be more appropriate to issue an after-the-fact purchase order through BuySite.

Unlike ordinary supplies, equipment does not incur indirect costs on sponsored awards and needs to be physically tagged as University or government property so that it can be inventoried each year in the University's asset management system. The University cannot purchase equipment for the personal use of an employee or any other person, even if reimbursement is offered.

Before purchasing any equipment, the purchaser must perform a screening to determine that suitable equipment is not already owned by the University and available for the desired use. This step is necessary to avoid wasteful duplication and is required when purchasing equipment with federal funding.

Equipment falls under two broad categories: purchased and constructed.

Purchased Equipment

Purchased equipment is any purchased item with a useful life of one year or more and a per unit cost of $5,000 or more. Software costing more than $100,000 is also treated similarly to equipment. For example, a $6,000 server will qualify as equipment whereas a single order for ten $1,000 individual computers would not.

Constructed Equipment

Constructed equipment includes all costs incurred to construct or assemble scientific and technical equipment used to accomplish a special purpose in the performance of a research project. Billed labor expenses for construction from University recharge (e.g. UChicago Central Shop or Electronics Development Group) or an outside vendor are allowable as constructed equipment expenses, however salary charges for other University employees may not be directly applied to constructed equipment costs. The total cost of constructed equipment must meet or exceed $5,000 although individual orders and components used to build the equipment do not.

Constructed equipment uses the subaccount series 62xx, but expenses should not be charged to the generic subaccount 6200. Instead, one user defined subaccount should be used for each piece of equipment being constructed. This is necessary to enable us to track the total accumulated cost of the equipment. For example, if a PI is building a lunar rover and its delivery vehicle on the same award, then he/she should use two different subaccounts in order to track the costs of the rover and delivery vehicle separately (e.g. rover = 6201, delivery vehicle = 6202).

When a new award is received that contains constructed equipment, the finanical administrator should complete a Constructed Equipment Form as soon as possible to ensure proper accounting.

Subaccount 6250 is reserved for transportation/delivery costs related to moving the equipment from the construction facility to the experiment site.

For more about equipment accounting, see Debt & Capital Asset Accounting.

Contract Deliverables

Equipment purchased or constructed by the University under a contractual agreement with another agency or institution is not considered University property, but rather the property of the entity to which the equipment will be delivered. Such equipment costs must be recorded in subaccount 68xx.

For more detailed information about equipment and asset tracking see the University's Property Management Manual.

Transfers are done for a variety of reasons to move expenses of funds between different University accounts. They come in two varies, general cost transfers and payroll transfers. These are executed with forms or different modules in the ACCTS application.

• General cost transfers can be divided into two different types, journal vouchers and expense transfers. Journal vouchers can be thought of as moving funds between accounts whereas expense transfers move specific transactions between accounts; this is an important distinction. When conducting a journal voucher, a credit is logged on one more accounts and is offset by a debit entry on one or more accounts--essentially transferring funds from one account to another. When conducting an expense transfer, the credit account is freed from a specific expense and the debit account is charged for the transferred expense. Journal vouchers are generally used only with unrestricted accounts and not with sponsored awards though there are some exceptions like recharge billing.
• Payroll transfers are similar to expense transfers in that they move specifc payroll entries from one account to another.

Expense transfers and payroll transfers to or from sponsored awards should be initiated within 90-days of the time the expense originally posted to FAS. If done after 90-days, the transfer is considered late and needs to be accompanied by a late cost transfer form. This form must explain the tardiness of the transfer (not just the need to initiate it) and carry the requisite signatures. Moving costs between subaccounts or associate accounts for the same award can be done at any time.

• Unlike other transfers, payroll transfers do not appear on the monthly ledgers with an identifiable transactions number. Instead, evidence of payroll transfers only appears on the payroll registers.

• Cost transfers are conducted through the "Cost Transfer" module in ACCTS. This system only handles non-payroll related direct costs. Take the following steps to create a transfer...

• Go to accts.uchicago.edu and select the "Cost Transfer" module.
• Enter your CNET id and password.
• At the initial screen you can check the status or retreive the details of your submitted transfers, edit saved transfers, withdraw submitted transfers, or create new transfers.
• Select the type of transfer desired: Journal Voucher (JE), Expense Transfer (EE), or Interdepartmental Transfer (DD) for direct data entry. Alternatively, you can upload a spreadsheet (using the JE template or EE template available in ACCTS) to process a JE or EE using the "cost transfer" dropdown menu at the top.
• If using the direct data entry method, enter the 10-digit debit and credit accounts, PO#, post date, control #, description, amount, batch reference number, and batch date for each line item expense that will be transferred. All of this should be entered according to how the the original expense is logged in FAS. The shaded fields are optional, but should be used when the data exists. When complete, click on the "add" button. Repeat as necessary. The import button at the bottom can be used to import a spreadsheet at this time rather than manually enter the data, but do check to ensure that the import operation is executed accurately.
• When all line items have been added, select an appropriate explanation from the dropdown list. If "other," type in a brief but detailed reason. (e.g. "to correct an error" is too vague of a reason)
• Files can be attached to provide additional explanation or justifying documentation (e.g. late cost transfer forms).
• When everything is complete, click the "submit" button.
• Print or save the generated transfer form for your records.

• Although multiple different pairs of credit/debit accounts can be on the same transfer, it is best to limit the accounts used to a single related action rather than using a single transfer for multiple unrelated situations.

  NEVER transfer payroll expenses or automatic charges such as benefits, tuition support, and indirect costs with this system. Another system handles payroll transfers and indirect costs are automatically adjusted. Any manual adjustments to indirect costs, or other automatic charges, should be done by Financial Services.

  For DD transfers check with the relevant University office to make sure they accept payment in that form.

  If Financial Services rejects the transfer, you do not need to start from scratch. Log-in and locate the transfer that was rejected. Then select it and click on "edit." Transfers with a status of "processed" or "batched" cannot be edited or withdrawn. If you submit a transfer that you later realize is incorrect, immediately log-in to withdraw the transfer before it is approved and batched for processing.

  When transfering amounts to or from accounts that you do not manage, always contact the administrators of those accounts to let them to confirm their approval and send a copy of thre transfer form for their records.

  Funding Unrestricted Accounts

  Unrestricted accounts are typically funded through JE transfers. When doing so, use subacount 9415 for both the debit and credit accounts. Also be sure to indicate the purpuse of the transfer (e.g. "annual department support for research incentive account"). Transfers to multiple different accounts can be executed with a single transfer if they are for the same purpose.

  Lump Sum Transfers

  It is possible to transfer an undifferentiated sum of expenses between accounts. Such transfers are called a lump-sum transfers. A special subset of subaccounts are used for them in the 9600-9700 range. The 96XX series is used for the debit account and the 97XX series is used for the credit account whereas a normal expense transfer usually has identical subaccounts for the credit/debit accounts (unless the expense was initially posted to an incorrect subaccount). Lump-sum tansfers should be used very sparingly. A lump sum expense transfer and a journal voucher function very much the same except that the former are restricted to a special subset of credit/debit subaccounts.

Payroll Transfers

Payroll expense transfers are conducted through the "Payroll Expense Transfer System (PETS)" module in ACCTS. A payroll transfer cannot move the salary of more than one employee, but it can move several pay periods for the same employee. PETS can only move payroll incurred during the current or previous fiscal year. If the expense is older than that, then a paper form UPP 103 will need to be used (see instructions).

A payroll transfer must be submitted no later than the day before the the closing date of a given paydate if it is to be processed for that paydate (see payroll dates). Otherwise it will be processed by the next paydate. Thus payroll transfers for monthly employees may take up to 6 weeks to fully process and appear on ledgers. Once a payroll record is in the process of being transfered, it cannot be transfered again until the initial transfer is complete. For example, if the transfer of an October monthly salary was submitted one day late for the November closing, it will not be completed and appear on the ledger until the end of December. If that transfer subsequently needed to be corrected (e.g. wrong account or subaccount) a corrective transfer can not be submitted until after the end of December and could not be fully processed any earlier than the end of January.

Take the following steps to create a transfer using PETS...

• Go to accts.uchicago.edu and select the "PETS" module
• Enter your CNET id and password
• At the initial screen you can check the status or retreive the details of your submitted transfers, edit saved transfers, withdraw submitted transfers, or create new transfers.
• Click on the "new" button at the bottom.
• To search for a payroll record to transfer, you will need either the account number where the expense currently resides and/or the payroll number of the employee. Additional optional search parameters can be used for more precision.

• **For employees with 12-month appointments, it is best to use select a specific detail record to transfer. However, 9/12 appointees cannot be handled this way in PETS. Instead you should transfer "current activity" when dealing with 9/12 appointees. Transferring "current activity" will move a portion or all charges from the employee's payroll effort that was originally incurred during a given pay period. Thus, effort transferred from previous pay periods through transfers will be ignored. If the employee has effort under two or more job codes on the same account during the same pay period (not common) then the "current activity" transfer will not distinguish between them and a paper form would be more appropriate. If you need to move a transferred salary a second time, then a paper form should be used if it is for a 9/12 appointee.

  If a full effort period must be moved, it is important to confirm how many accounts the employee's salary is distributed across. This can be more complicated if the employee's salary is divided between different divisions since cross-divisional account access is limited. One way to check that the total salary amount has been located is to check the employee's personnel record and determine his/her total monthly/bi-weekly salary.

  If Financial Services rejects the transfer, you do not need to start from scratch. Log-in and scroll down to the transfer that was rejected. Then select it and click on "edit." Transfers with a status of "processed" or "batched" cannot be edited or withdrawn. If you submit a transfer that you later realize is incorrect, immediately log-in to withdraw the transfer before it is approved and batched for processing.

  When transferring amounts to or from accounts that you do not manage, always contact the administrators of those accounts to let them know what is about to happen.

• When the employee and account have been selected, you will se the "Payroll Expense Distribution Detail" screen.
• Ensure that the correct pay period and subaccount are selected (below the employee name at the top).
• In the "payroll activity" frame, click on the payroll record (or current activity line) that that you wish to transfer.**
• Enter the amount to transfer and the destination account in the "transfer detail" frame and click the "add" button.
• Repeat steps 6-8 as needed and click the "continue" button at the bottom.
• At the "payroll expense transfer" screen, you can either continue to add additional entries (going back to step 4), edit a transfer entry, or submit the transfer request.
• You cannot submit until an explanation is entered. Choose an appropriate one from the drop down list. You can also attach a file for additional explanation or justification (e.g. a late cost transfer form).
• When everything is complete, click the "submit" button.
• Print or save the generated transfer form for your records.

Closing Restricted Accounts

When an award is within 45 days of ending, a notice is sent to the financial administrator for that account to prepare the closing memo. To prepare an account for closing, do the following actions for the master and all associate accounts the month before or immediately after the award ends...

1. Review the payroll: make any needed transfers and ensure that the allocations for each employee is updated in Workday so that they are paid from other accounts going forward. Be aware of payroll action cut-off dates early in the month. If workers are being laid off as a result of the award ending, plan well in advance to ensure that sufficient funds will be available to cover their accrual payouts for unused vacation and personal days. [before end date]
2. Cancel or redirect any future University telephone/networking services or other recurring service charges. [before end date]
3. Initiate any needed cost transfers to correct any current or projected overdrafts. [before end date]
4. Make sure any trailing charges clear the account such as: outstanding purchase order and vendor invoices, reimbursements, transfers... [after end date]
5. When all trailing transactions have cleared set the freeze tag on the master and all associates through the ACCTS account create module. [after end date]
6. Prepare separate closing memos for the master and each associate account and submit them to the Sponsored Award Accounting manager within 90 days of the end of the award.

To complete the closing memo (sponsored awards only)...

1. Follow the instructions on the form which are fairly self explanatory.
2. If there are any trailing transactions, attach copies of the supporting documentation (purchase orders, transfers, GEMS reports...).
3. Attach the AMO90 ledger for the month the award ended.

Things to remember...

• Any expenses incurred after the award end date must be removed prior to closing the account, but are not considered trailing charges. The transfers needed to correct them are not trailing credits.
• Legitimate award related expenses incurred before the award end date, but not charged to the account until after the end date are allowable and do not need to be transfered off of the account, but must be recorded as trailing charges on the closing memo. Likewise, credits for expenses incurred before the award end date are trailing credits.
• If reporting trailing transactions on the closing memo, DO NOT set the freeze flag on the entire account.
• A single account or master/associate grouping cannot be closed if there is a cumulative negative balance. So, if a master account has a negative balance and its associate has a positive balance, they can be closed if the cumulative balance between them is equal to or greater than $0.
• While we try to spend all of the awarded funds, any excess fund should be returned to the funding agency. DO NOT transfer expenses from other accounts just to use up the money.
• The closing memo is for SL accounts only. The GL account will be closed automatically when the master SL account (an its associates) is closed.

Closing Unrestricted Accounts

Closing memos are only required for sponsored awards. Unrestricted accounts can be closed by notifying the responsible Financial Services contact in the upper right corner of the ledger below the AA#1 name/address). Before closing, ensure that the account has a $0 balance. Setting the account freeze flag can be helpful when an unrestricted account is no longer being used.

Q. Can purchases made on a personal credit card be reimbursed if they do not exceed $500?
A. Yes. GEMS can be used to reimburse out-of-pocket expenses as well as processing GEMS card transactions. Non-travel reimbursements should be limited to $500 or less.

Q. When should reimbursement requests be given to the financial administrator vs. given to the departmental administrator?

A. The financial administrator is the approver for transactions on your accounts. The University's account controls generally prohibit the requestor and approver being the same person. Thus, the financial administrator should not fill out reimbursement forms and purchase orders that he/she will approve. Departmental administrative support (if it is available) should provide assistance with completing the forms prior to submission for approval. In cases when administrative support does not exist, personnel within the LBC can provide such support for reimbursement requests.

Q. Will GEMS reimbursements for faculty and staff be deposited directly to their bank accounts or merged in with payroll?
A. All GEMS reimbursements are paid through the payroll system. If you are currently collecting a pay check through direct deposit, then your GEMS reimbursements will be included with your regular pay deposit. If you normally collect your pay in the form of a check, then your GEMS reimbursements will also be distributed in that form. Bi-weekly and monthly employees will receive reimbursement payments based on the University's bi-weekly payment cycle.

Q. Can GEMS settings be changed so that I get email only when there are new reports that must be concurred, and not every time some other action is taken (e.g. reports approved or paid)?
A. Yes, the number of e-mails can be reduced. The e-mail settings can be changed at the "system settings" page and also on the "expense preferences" page both of which are found using the "profile" tab at the top of the screen.

Q. Can PIs select their own GEMS delegates?
A. Faculty already have delegates assigned to them. However, additional delegates can be assigned using the GEMS interface. Contact Shared Services for support.

Q. How are GEMS card expenses paid?
The University automatically pays MasterCard for all University GEMS card expenses from a single University account. Each expense is automatically transferred to the Divisional account associated with that card by default. Default accounts are specified in advance for each card by Faculty Service Representatives or, in Economics, the departmental administrator.
GEMS card users and University account administrators allocate GEMS card expenses from default accounts to the appropriate University account(s). This step is key: after you use your GEMS card, you must account for your expenses in the GEMS system, even though the University has paid MasterCard and the Division has paid the University. This is true even if your GEMS card expenses are appropriately allocated to your GEMS card default account. This final step is NOT automatic. Using a GEMS card obligates you to account for your expenses in the GEMS system.
GEMS card users pay no bill. GEMS card activity has no effect on your personal credit. You will get a monthly statement by mail, but this is just for your records and should not be paid.

Q. Can a PI see and concur purchases made on the GEMS card that will be issued to postdocs under his/her supervision?
A. There is no way to do this automatically, but the PI may request that all transactions are forwarded by the financial administrator.

Q. Do purchases made with a GEMS card require scanning receipts and uploading them into the GEMS system?
A. Yes, all required receipts should accompany a GEMS report electronically.

Q. Are receipts required for per diem travel expenses?
A. No, if per diem is used as the basis for reimbursement, then receipts are not needed. You can use per diem for meals/incidentals only or lodging AND meals/incidentals. Receipts for lodging are always required regardless of dollar amount unless the per diem rate is used. If per diem is used, it must be used for the entire trip and not only for select days or locations. Recepts are still required for transportation related expenses (e.g. airfare, car rentals).

Q. Are itemized receipts required for meal reimbursements?
A. Yes, business meals should have an itemized meal receipt (not just the signature receipt). As a rule, all receipts must both clearly identify what was purchased AND indicate proof of payment.