To: Research Administrators and Department Business Managers
From: Manali Bettendorf, University Controller; David Paul, Assistant Vice Chancellor for Research
Cost sharing involves the commitment of University funds or resources and can constitute mandatory, voluntary, matching, contributed effort and in-kind methods. Cost share expenditures are usually funded by non-sponsored project funds, such as departmental F&A or institutional trust funds. In this memo, we introduce the need for funding cost share transactions on sponsored projects and a plan to manage this requirement.
Cash Balancing Chartfield Strings and Cost Share Transactions on Sponsored Projects
ConnectCarolina is currently configured to self-balance all transactions. When an expense posts to a chartfield string, cash is reduced by the amount of the expense recorded in that transaction.
|Sponsored project chartfield criteria||Cost share chartfield criteria|
Since the Project ID is a cash balancing chartfield sting, expenses using a sponsored project chartfield self-balance appropriately. However, expenses posting to sponsored projects on cost share chartfields (non-252xx Fund) create a cash deficit when cash is reduced in the cost share chartfield by the self-balance process. Therefore, a journal entry is required to fund cash for cost share transactions on sponsored projects and allow for proper reconciliation of the project in the financial system.
Example of Cash Balancing on Cost Share Transactions
- Debit for Expense: Fund (non-252xx) / Source (non-49xxx) / PS Project ID: $1,000
- System Credit for Cash: Fund (non-252xx) / Source (non-49xxx) / PS Project ID: -$1,000
Example of Journal Lines to Fund Cash on Cost Share Transactions
- Debit Line: Fund (non-252xx) / Source (non-49xxx) / Dept / Account 482110: $1,000
- Credit Line: Fund (non-252xx) / Source (non-49xxx) / PS Project ID / Dept / Account 482110: -$1,000
Plan for Funding Cost Share Transactions on Sponsored Projects
The University Controller’s Office and Office of Sponsored Research (OSR) partnered to review cost share chartfields on sponsored projects and implemented a plan to fund cash deficits for cost share recorded on both closed and active projects.
- Closed Projects: Beginning in late February 2021, balancing journals were entered on closed projects to fund cash for cost share expenses recorded on those projects.
- Active Projects: Beginning in March 2021, balancing journals for cost share expenditures posted within the month will be processed as part of month-end procedures by the Controller’s office.
For questions pertaining to the financial management of sponsored projects, please contact your OSR Sponsored Project Accountant assigned to the project or OSRBilling@unc.edu. To learn which Sponsored Project Accountant is assigned to a project, please use the PS Project ID search within the RAMSeS Contact Project-Related Support tool or review the RAMSeS Billing Tab for that project.
For questions on the monthly balancing journals processed by the University Controller’s office, please contact Accounting Services at firstname.lastname@example.org for further assistance.