Background

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

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 may be other limitations to reallocation of budget line items.

Expense Approvals on Restricted Funds

Expenses  that are charged to restricted  funds are  routed electronically to the appropriate Business Center  for review and approval prior to going to Business Affairs Payables for  check generation.  Any expense $300,000 and over will route electronically to Business Affairs for final review and approval before check generation. 

Fixed Asset Approvals

Prior to purchasing a fixed asset (item over $5,000 which must be recorded in the university's inventory), unit personnel are required to get purchase approval by preparing a departmental requisition, obtaining necessary approvals, and sending the document to the appropriate Business Center.  Once the expenditure is approved by the Business Center (up to $24,999) or PaCS ($25,000 or over), a purchase order can be issued for the asset. (Purchase Orders on restricted funds are routed through an OPAA approval queue.) 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.

Additional Information

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