Systemwide accounting procedures
Accounting Integrated Statewide Record System procedures
Grant Indirect
Grant Indirect and Administrative cost reimbursement
- Request the funds from the granting agency (Federal, State, Private, etc), and receipt the revenue to the grant cost centers using the corresponding revenue code (9401, 9402, 9403, etc.)
- Move the earned indirect/administrative costs from the grant account to the receiving account.
Note:
Process depends on one of the following scenarios
State Treasury account to State Treasury account:
Two options:
If there are sufficient expenses in MAPS object code 2N00 so that the reimbursement will not cause expenses in object code 2N00 to go negative in the account being reimbursed, process a JC - Expenditure Correction transaction using the AC0230UG screen as follows:
JC Expenditure Correction (AC0230UG) DR 7504 Allocated Indirect Costs Grant Fund CC CR 7504 Allocated Indirect Costs CC Receiving Reimbursement If there are not sufficient expenses in MAPS object code 2N00 so that the reimbursement will cause expenses in object code 2N00 to go negative in the account being reimbursed, process an "N" flag $0.00 CP transaction using the AR0009UG screen as follows:
CP Cash Receipt Transaction (AR0009UG) DR 7504 Allocated Indirect Costs Grant Fund CC CR 7504 Allocated Indirect Costs CC Receiving Reimbursement
State Treasury account to Local account:
Process a Payment Voucher (PV) from the State Treasury grant account cost center that is paying the Indirect/Administrative costs. Pay from object code 7504 - Allocated Indirect Costs to your local account EFT vendor number.
| PV - Payment Voucher |
|---|
| DR | 7504 | Allocated Indirect Costs | Grant fund CC | ||
| CR | 7504 | Allocated Indirect Costs | CC receiving reimbursement |
Process a General Receipt by Cost Center to the local account cost center receiving the Indirect/Administrative cost reimbursement. Receipt to object code 7504 - Allocated Indirect Costs.
| General Receipt |
|---|
| DR | 7504 | Allocated indirect costs | CC receiving reimbursement | ||
| CR | 7504 | Allocated Indirect Costs | Grant fund CC |
Local account to State Treasury account:
If the payment is from your sweep bank account:
Process an Expense Voucher (AC0212UG screen) in the Local grant account cost center that is paying the Indirect/Administrative costs. Debit object code 7504 - Allocated Indirect Costs
Process an "N" flag General Receipt by Cost Center to the State Treasury account cost center receiving the Indirect/Administrative cost reimbursement. Receipt to object code 7504 - Allocated Indirect Costs.| Expense Voucher (AC0212UG) |
|---|
| DR | 7504 | Allocated Indirect Costs | Grant Fund CC | ||
| CR | 7504 | Allocated Indirect Costs | CC Receiving Reimbursement |
If the payment is from a bank account other than your sweep bank account:
Process a Payment Voucher (PV) from the local grant account cost center that is paying the Indirect/Administrative costs. Pay from object code 7504 - Allocated Indirect Costs to your college.
| Payment Voucher (PV) |
|---|
| DR | 7504 | Allocated Indirect Costs | your college | ||
| CR | 7504 | Allocated Indirect Costs | CC Receiving Reimbursement |
Receipt the check by processing an "N" flag General Receipt by Cost Center to the State Treasury account cost center receiving the Indirect/Administrative cost reimbursement. Receipt to object code 7504 - Allocated Indirect Costs.
An option on the payment in this scenario would be to do a telephone transfer from the paying local bank account to your sweep bank account and then process an expense voucher in the local grant account paying the Indirect/Administrative costs, debiting 7504, instead of processing the payment voucher.
If you have questions or comments please email us (accounting@so.mnscu.edu) or refer to the staff directory link at the top of this page for additional contact information.
