Labor Account Distribution Change & Wage Transfer Form

• Labor Account Distribution Change & Wage Transfer Form

The form is for payroll transactions that move funds from one account into another account. They differ from cost transfers in that cost transfers are moving non-payroll expenses. Labor Account Distribution Change & Wage Transfer Form must be processed within 90 days of incurring the expense. The transfer of charges from other projects or programs to sponsored research PTAEO Accounts is closely examined by auditors. Frequent, tardy or unexplained (or inadequately explained) transfers can raise serious questions about the propriety of the transfers, our accounting system and internal controls. The Labor Account Distribution Change & Wage Transfer Form and system of approval signatures was developed to avoid audit questions regarding transfers.

Situations that Prompt a Labor Account Distribution Change & Wage Transfer Form

The most common situations include:

• Clerical error
• Cost over-runs
• Effort of personnel is different than what the Payroll Authorization is set up as
• General problems with the original setup of the budget

Limiting the Need for Labor Account Distribution Change & Wage Transfer Form

Avoidance of cost overruns or significant unexpended fund balances requiring Labor Account Distribution Change & Wage Transfer Form, begins when the proposal budget is first developed. Inaccurate budget projections in the award can haunt the award throughout it's life. Each month the Principal Investigator and the Department Grant Administrator should compare budget projections with actual expenses to-date, and adjust future spending accordingly.

How to Initiate a Labor Account Distribution Change & Wage Transfer Form

All requests for a transfer of payroll transactions should be on a Labor Account Distribution Change & Wage Transfer Form. The general guidelines for initiating a Labor Account Distribution Change & Wage Transfer Form are as follows:

Initiate the Labor Account Distribution Change & Wage Transfer Form as soon after the original transaction was made.

• Transfers must be made within 90 days of the original charge and should contain a full justification of the transfer

Fringe benefits do not have to be listed unless different than the amount that will automatically be calculated by payroll.

The Labor Account Distribution Change & Wage Transfer Form must include a complete detailed explanation of the following:

• Why was this transaction(s) originally posted to the account from which it is now being transferred?
• Why should the transaction be transferred to the proposed account to be charged?
• How does this transaction benefit the project?

If the transfer request is over 90 days from the date of the original transaction, please answer the following questions:

• Why is the transactions(s) being transferred more than 90 days after the original date the transaction was recorded?
• What corrective action has been taken to eliminate future need for labor account distribution change and wage transfers of this type?

The form must be signed and approved by:

• If just the LADC Section of the form is filled out, it needs to be signed by a designated individual within the department and department's fiscal office, the form is then submitted to the Payroll Department for processing (Payroll Department does not send OSP a copy even if a PTAEO Account is involved).
• If the Wage Transfer Section of the form is filled out and involves a sponsored research PTAEO Account, the Principal Investigator for each sponsored research PTAEO Account listed needs to sign the form, the form is then signed by the department's Fiscal Office, the form is then sent to OSP for their signature, OSP then sends the form to the Payroll Department for processing.
• If the Wage Transfer section does not involve a PTAEO Account, the form does not need to be sent to OSP for their signature, instead the Fiscal Office can send the form directly to the Payroll Department after they sign.
• Please note the department's Fiscal Office always needs to sign the form regardless of which section is filled out on the form.

Important Notes

Explanations such as "to correct a clerical error" or "to transfer to correct project" are not adequate. Transfers of payroll expenses from one budget period to the next solely to cover cost overruns are not acceptable. Generally, the older the charge the more involved the explanation of the transfer should be.

Department administration should regularly monitor payroll deadlines (BlitzMail Bulletins).