Please review these important guidelines regarding:
- Year-End Purchases
- Overnight Travel Policy Updates
- New Unallowable Cost Policy
With the end of 2013 fast approaching, the following is a reminder of how operating expenses will be recorded for the year for Centers, Departments, Core Labs and Bridge accounts. Since The Research Institute follows the accrual method of accounting, operating expenses are recorded based on when they are incurred rather than when they are paid. As such, the following guidelines are used:
Supplies, equipment and other tangible goods must be received by the Research Institute on or before December 31, 2013, to be considered a 2013 expense. Completing a purchase order by December 31 is not enough; the goods must be in our possession to be considered an expense. If you are completing a requisition the items will be delivered to The Research Institute dock and the Receiving Department will log the items into Navision. The date that the receipt is logged is the date that it will be expensed.
Services must be completed on or before December 31, 2013, to be considered a 2013 expense.
Travel or other expense reimbursements will be considered a 2013 operating expense only if the expense was incurred on or before December 31, 2013 (please note that some exceptions are made for travel-related expenses due to pre-registration requirements, advance airfare purchases, etc.). All 2013 travel must be reconciled by January 8, 2014.
Please consider this information when planning any remaining purchases for the year. If you are not sure if the product can arrive by 12/31, contact your buyer prior to entering the requisition. Please consider external factors such as holiday shipping and weather when ordering
Overnight Travel Policy Updates
A few minor updates have been made to the Overnight Travel Policy (Policy Research-Administration-005). The changes have not resulted in new procedures/policies but are rather putting current procedures/policies in writing. Updates regard deadlines for submission of travel-related paperwork; hotel rates (which may be paid at lesser than the conference rate if required by the sponsor); traveler’s or car rental insurance (which will not be paid by The Research Institute); and “Fly America Act” verbiage. View the policy.
New Unallowable Cost Policy
This new policy defines what types of expenses are typically allowable on externally funded grants, how to handle unallowable costs, and what constitutes a direct cost. The policy also outlines common expenses and whether they are typically allowable or unallowable on externally funded grants. If you purchase items, review expenditures or have approval authority for expenditures we encourage you to familiarize yourself with the policy.
Allison Zang, CPA, MBA
Director of Accounting
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