Corrections vs Transfers

Budget transfers and Transaction corrections are not the same thing and are not processed the same way.

Budget Transfers aka Budget Corrections (really? Yep!)

Intra-Account transferring of an existing budget involves moving available funds around from inside of an account, between different costing categories (subaccounts) --such as moving some portion of salary and fringe into domestic travel to cover project-related travel costs. This is accomplished via the FRMS transfer function.
(See FRMS Budget Transfer Instructions)

• With sponsored awards (26 accounts), there are typically rules regarding which type of funds can or can't be adjusted, how much can be moved around within the account or within specific spending categories. Some accounts don't have any limitations, others do. 
  (See *Define CA3 or ask your Post-Award Specialist about specific award transfer rules)
   
  1. FACT: There is a contract behind every sponsored research account number that contains lots o' terms and conditions that must be adhered to throughout the duration of the project.
      
  2. Sponsored awards with contracts also have outlined and approved budgets included in the contract terms and conditions.
      
  3. Some sponsors are cool with moving the funds into the different pots inside the account in order to accomplish the research mission outlined in the award. Some aren't cool with it ---and this will be included in the contract language.
      
  4. Because a specific budget and budget justification are included in the contract, that means any changes made to the budget (assuming sponsor is cool with changes) represent a budget CORRECTION.
      
  5. Experienced Post-Award Specialists in OSP/Office of Accounting tend to have a good handle on compliance within award management and understand that budget transfers in sponsored awards actually represent CORRECTIONS. This is why sometimes budget transfers get additional scrutiny.

Transaction Corrections

When you need to move or correct a transaction that has already occured, such as a purchase that was charged to the wrong account, that represents a transaction correction - and there's a distinct process for that within *Define.
 (See *Define VT6)

Typical Corrections:

• Moving a transaction from one account (budget group) to another
  • It's tempting to call this a transaction transfer, but it is definitely a correction
     
• Splitting a transaction between one or more budget groups (after-the-fact)
   
• Cancelling, rescinding or replacing a transaction
   
• Processing budget transfers to cover deficits
   

Processing frequent corrections as a routine way of managing funds raises red flags and should be avoided. 

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