OSU GCG 203: Expenditure Approvals

Background

There are four Cost Accounting Standards that govern expenditures for educational institutions, see GCG 105: Cost Accounting Standard Guidelines. Some entities have provided a waiver of prior approval requirements; see GCG 103: Expanded Authority.

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Policy

Revisions are permitted only if necessary for the completion of the project within its original scope and budget.  Per agency guidelines and award agreements, there maybe other limitations to reallocation of budget line items.

Invoice Approvals on Grant and Contract and Gift Funds
Invoices that are charged to grants, contracts and gifts may be routed electronically to the Office of Post Award Administration for review and approval prior to going to Business Affairs Payables for final approval, processing, and check generation. When an invoice is being paid from more than one index and one of the indexes is a grant, contract or gift, use that index on sequence #1. This will facilitate correct approval routing.

Fixed Asset Approvals
Prior to purchasing a fixed asset (item over $5,000 which must be recorded in the university's inventory), department personnel are required to get purchase approval by preparing a departmental requisition, obtaining necessary approvals, and sending the document to the Purchasing department.  Once the expenditure is approved by Purchasing, a purchase order can be issued for the asset. Payment for the item can be made against the purchase order by processing an invoice for the fixed asset in Banner FIS.

Fixed Asset invoices are also routed to the Office of Post Award Administration and Property Administration for approval prior to final processing by Business Affairs Payables. When a capital asset is paid for in Banner FIS using commodity level accounting and account code 40XXX it is required that inventory information be entered into the text screen.

Remember that these documents are seen electronically only. Approvers rely heavily on the information provided in the description and text fields.

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Additional Information

See FIS 1108: Approval Routing for additional information on Approvals.

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