Board of Regents Account Segments
Following is a brief description of the segments comprising the Board of Regents Chart of Accounts.

1. Fund Group
   Fund Group is an accounting entity with a self-balancing set of accounts consisting of assets, liabilities and fund balance.
   The Fund Groups used by departmental units are as follows:
   • Current Operating Fund Group
     • Fund Number 10 - Resident Instruction
     • Fund Number 21 - Georgia Tech Research Institute (GTRI)
     • Fund Number 22 - Continuing Education
     • Fund Number 23 - Center for Rehabilitation Technology (CRT)
     • Fund Number 24 - Advanced Technology Development Center (ATDC)
     • Fund Number 25 - Economic Development Institute (EDI)
     • Fund Number 40 - Restricted Funds - Resident Instruction
     • Fund Number 41 - Restricted Funds – GTRI
     • Fund Number 42 - Restricted Funds - Continuing Education
     • Fund Number 43 - Restricted Funds - CRT
     • Fund Number 44 - Restricted Funds - ATDC
     • Fund Number 45 - Restricted Funds – EDI
     • Fund Number 48 - Restricted Funds – Plant Funds
     • Fund Number 50 - Auxiliary Enterprises
     • Fund Number 95 - Student Activities
   • Loan Funds
     • Fund Number 70 - Loan Funds
   • Endowment Funds
     • Fund Number 75 - Endowment Funds
   • Plant Funds
     • Fund Number 80 - Unexpended Plant Funds
     • Fund Number 82 - Renewals and Replacements
     • Fund Number 85 - Investment in Plant
   • Agency Funds
     • Fund Group 90 - Agency Funds - Private Trust
2. Function
   The Function is a group of related activities having as their purpose the accomplishment of a major service or program for which the institution is responsible. A two-digit, numeric code is used to designate this.
   • Functions and their numbering ranges can be categorized as follows:
     • Instruction 10-19
     • Research 20-29
     • Public Service 30-39
     • Academic Support 40-49
     • Student Services 50-59
     • Institutional Support 60-69
     • Operation and Maintenance of Plant 70-79
     • Scholarships and Fellowships 80-89
3. Source
   The Source is a one-digit, numeric code that indicates the origin of revenue funds. Current codes are as follows:
   • Research Consortium Funds (State)
   • General or State Funds
   • Special Initiative Funding
   • Lottery Funds (State)
   • Departmental Sales and Services
   • Sponsored Operations
4. Cost Center
   The Cost Center is a two-digit, numeric code that describes the organizational unit (usually a department) originating financial transactions.
5. Sub-Cost Center
   The Sub-Cost Center is a three digit, numeric code used to divide specific cost centers into sub-sections. This allows for the identification of individual accounting units within a given cost center.
6. Project
   The Project designator, a five-digit, alphanumeric code, identifies the sponsored project originating financial transactions. The exception, however, is that some non-sponsored Olympic accounts are also established with a project identifier of "Y."
7. Sub-Project
   The Sub-Project is a three digit, alphanumeric code used to show the various sections into which a project has been divided. The sub-project allows a distinction between the main project and a sub/CO-project, while concurrently functioning as an indicator of project duration.
8. Object
   The five digit, numeric Object Code provides a method of classifying expenditures according to what is received in return for the expenditures, e.g., personal services, travel, operating supplies and expense and equipment.
   Refer to Appendix A for a complete listing of object codes. The numbering of object codes proceeds as follows:
   • 50000-59999 Personal Services Expenditures
   • 60000-69999 Travel Expenditures
   • 70000-79999 Operating Supplies and Expense
   • 80000-89999 Equipment

Board of Regents Account Number Structure
Each Account is grouped into eight principal fields that may contain up to five characters as follows:

1. Balance Sheet Account
   • Includes: Fund Group and Object Code
   • Example: 10-00-0-00-000-00000-000-11800
   • Fund 10: Resident Instruction
   • Object Code 11800: Cash in Bank - Demand Deposits
2. Revenue Account
   • Includes: Fund Group, Function, Cost Center, Sub-Cost Center, and Source
   • Example 1: 10-00-0-00-000-00000-000-40310
   • Fund 10: Resident Instruction
   • Source (Account) 40310: State Appropriation - General
   • Example 2: 50-10-0-10-133-000-00000-40910
   • Fund 50: Auxiliary Enterprises
   • Function 10: Student Housing
   • Cost Center 10: Student Housing
   • Sub-Cost Center 133: Harris Dormitory
   • Source (Account) 40910: Dormitory Rents
3. Expenditure Account (Financial Accounts)
   • Includes: Fund Group, Function, Source Code, Cost Center, Sub-Cost Center, Project, Sub-Project and Object Code
   • Example 1: 10-11-1-16-200-00000-000-71410
   • Fund 10: Resident Instruction
   • Function 11: Instruction
   • Source 1: General or State Funds
   • Cost Center 16: Aerospace Engineering
   • Sub-Cost Center 200: Instruction in Aerospace Engineering
   • Object Code 71410: Supplies and Materials
   • Example 2: 10-24-6-16-600-R56780-0A0-71410
   • Fund 10: Resident Instruction
   • Function 24: Sponsored Research
   • Source 6: Sponsored Operating Revenue
   • Cost Center 16: Aerospace Engineering
   • Sub-Cost Center 600: Sponsored Research in Aerospace Engineering
   • Project Number R5678: GTRC Project Number 5678
   • Sub-Project Number 0A0: No additional years of funding
   • Object Code 71410: Supplies and Materials

PeopleSoft Account Number
There are five Chart fields that comprise the number that exists with in the baseline of the PeopleSoft product. They are: Fund, Organization, Program, Subclass, Project and Account.

1. Fund
   Fund identifies a balancing entity within a set of books in PeopleSoft. Each five-digit fund in PeopleSoft maps to a two-digit GEAC fund. In the new PeopleSoft fund structure, "roll-up" account numbers that end in "000" exist but are not currently used. These fund numbers will be used for reporting purposes after PeopleSoft GL replaces GEAC GL

   Funds

   PeopleSoft Fund Number	Description	Legacy Fund Number
   01000	GEAC Control Account	01
   10000	Cur Unrestricted - E & G	N/A
   10010	Cur Unrestricted - Resident In	10
   11000	Cur Unrestricted - Other Org	N/A
   11021	Cur Unrestricted – GTRI	21
   11022	Cur Unrestricted - Con Ed	22
   11023	Cur Unrestricted – CRT	23
   11024	Cur Unrestricted – ATDC	24
   11025	Cur Unrestricted – EDI	25
   12000	Cur Unrestricted – Auxiliary	N/A
   12050	Cur Unrestricted – Auxiliary	50
   13000	Cur Unrestricted - Student Act	N/A
   13095	Cur Unrestricted - Student Act	95
   20000	Cur Restricted - E & G	N/A
   20010	Cur Restricted - Resident In	10
   20040	Cur Restricted - Resident In	40
   21000	Cur Restricted - Other Org	N/A
   21021	Cur Restricted – GTRI	21
   21022	Cur Restricted - Con Ed	22
   21023	Cur Restricted – CRT	23
   21024	Cur Restricted – ATDC	24
   21025	Cur Restricted – EDI	25
   21041	Cur Restricted – GTRI	41
   21042	Cur Restricted - Con Ed	42
   21043	Cur Restricted – CRT	43
   21044	Cur Restricted – ATDC	44
   21045	Cur Restricted – EDI	45
   21048	Cur Restricted - Unexp Plant	48
   30000	Loan – Federal	N/A
   30070	Loan – Federal	70
   31000	Loan – Institutional	N/A
   31070	Loan – Institutional	70
   40000	Endowments – Endowment	N/A
   40075	Endowments – Endowment	75
   41000	Endowments - Term End	N/A
   41075	Endowments - Term End	75
   42000	Endowments - Quasi End	N/A
   42075	Endowments - Quasi End	75
   50000	Plant – Unexpended	N/A
   50080	Plant – Unexpended	80
   51000	Plant - Renewal & Replacement	N/A
   51082	Plant - Renewal & Replacement	82
   52000	Plant - Investment in Plant	N/A
   52085	Plant - Investment in Plant	85
   60000	Agency - Funds on Deposit	N/A
   60090	Agency - Funds on Deposit	90
   61000	Agency-Designated Scholarships	N/A
   61090	Agency-Designated Scholarships	90
   62000	Agency - Payroll Operations	N/A
   62090	Agency - Payroll Operations	90

2. Organization
   Organization represents the cost and sub-cost fields of the BOR Account number. The Organization Number will be the same as the Accounts Payable number assigned to every organization. Organizations will be allowed to subdivide to meet reporting or hierarchy needs if necessary. However, if the organization is subdivided, budgeting and expending must be done at the sub-level
   All GTRI Organizations have been coded to begin with "0" for ease of identification and transition.

   Some examples of Organization Numbers are listed below:

   Org Code	Organization Name
   221	Con-Ed Distance Learning
   320	Biology
   515	International Affairs
   764	Accounts Payable
   911	Real Estate & Space Planning

3. Program
   The Program Code will replace the Function Code of the BOR Account number. It is used to identify expenses into major categories. The first digit of the Program Code will denote the major GAAP Categories. They are: 1 – Educational and General, 2 – Auxiliary, 3- Hospitals (i.e. Instruction, Research, Public Service, etc.) These codes are standardized and controlled by the Regents Central Office.

   Below are some examples of program codes

   Program Number	Program Description
   11000	Instruction
   12000	Research
   15910	Intramural Athletics
   17700	Suspense Plant
   21000	Housing

4. Subclass
   The Subclass Chart field is a partially enhanced, partially new account component. The legacy Fund Source, which was one character in length, could not adequately account for new or special allocations such as Research Consortium Funding, Special Initiative Funding , or Lottery Proceeds. The Subclass code will now be 5 digits in length to accommodate the needs of the Institution.
   When Subclass codes are assigned to a PeopleSoft Account Number only "State" Subclasscodes should be used with "State" fund numbers and only "Sponsored"Subclass codes should be used with "Sponsored (Restricted)" fund numbers. All Sponsored Subclasses begin with the legacy Fund Source identifier "6" for ease of transition.

   Below are examples of Subclass Codes

   Subclass Code	Sub-Classification Description	State or Sponsored
   11000	General Operations	State
   11680	Undesignated Spons Research	State
   12000	Research Consortium	State
   14000	Lottery Funds	State
   41000	DS & S - General	Departmental Sales and Service
   63000	Sponsored Operation - Local	Sponsored
   63439	Fed Flow - NASA	Sponsored
   64010	Georgia Tech Foundation	Sponsored
   64100	Sponsored Private	Sponsored
   64050	Georgia Tech Research Corp	Sponsored

5. Account
   The account chart field will equate to balance sheet, revenue and expenditure object codes in the BOR account number.

Speedtype
The five Chart fields described make up a very complex baseline number. To simplify the use of the PeopleSoft General Ledger, a shorter number called a SpeedType was developed to "point" to the baseline number. To access or input account information within the PeopleSoft system, the user need only know the SpeedType.

Balance Sheet and Revenue Accounts
The Speed Type number for balance sheet accounts contains the letter Z followed by the existing Old Account Number (example: Speed Type Number Z1011800 = the old Account Number 10-11800).

Expenditure Accounts
Expenditure SpeedTypes vary in length from 7 to 9 digits depending upon the type of account. Expenditure SpeedTypes are comprised of the following digits:

• High level organization identifier (1 – 3 digits).
  Note: All GTRI projects will begin with the Organization Identifier "0" and are followed by the entire Old Account Number.
• High level fund source identifier (1 digit from MSA and BOR Account Numbers)
• Portion of the existing Old Account Number (3 or 5 digits)
  Note: All Con Ed, EDI, ATDC, POD, and Student Activity Expenditure SpeedTypes will use all five digits. Plant Funds (Renewal & Replacement and Unexpended Plant) will use the alpha characters A = Renewal and Replacement and P = Unexpended Plant Funds followed by the last 4 digits of the Old Account Number (example: Speed Type Number 9004A7108 = the Old Account Number AX-87108). All other organizations will use the last 3 digits in their Expenditure Speed Types.

Restricted Fund Accounts
The Restricted Fund Speed Type is the same as the Old Account Number.

Agency Fund Accounts
The Agency Fund Speed Type Number consists of the following:

• 3 Digit Organization Number
• 1 Digit Source of Funds Number (from MSA and BOR Account Numbers)
• 5 Digit Cost and Subcost Number (The Cost and Subcost Number is derived from the BOR Account Number)

Examples of SpeedTypes:

Organization Identifier: 763 (Accounting Services)
Fund Source: 1 (State)
Old Account Number Portion: 123 (The old account number is I-71-123)

Organization Identifier: 0 (GTRI)
Fund Source: N/A
Old Account Number Portion: A-100-4136 (Use entire old account number)

Organization Identifier: 0 (GTRI)
Fund Source: N/A
Old Account Number Portion: A-100-4136 (Use entire old account number)

Organization Identifier: 160 (Aerospace Engineering)
Fund Source: 6 (Sponsored)
Old Account Number Portion: 538 (The old account number is E-16-538)

Campus Units
Campus units will utilize the new financial system structure (i.e., Driver Worktags, Revenue Categories, Ledger Accounts, Balancing Units, reports, etc.) for DSS to more easily identify revenue and carry forward funds.

When requesting a billing, the college, department, or organizational unit must provide the following information on the Non-Student Invoice Request Form at this link: http://www.bursar.gatech.edu/sites/default/files/pdf/Non-Student_Invoice_Request.pdf

1. Name of originating office
2. Name and telephone number of contact person in originating office.
3. Name and address of customer to be billed.
4. Telephone number of customer (if possible).
5. Detailed description of services to be billed including any supporting documentation – See below
6. Dollar amount to be billed.
7. Revenue/expense account to be credited
8. PeopleSoft project #

Supporting Documentation
A purchase order, authorization letter from the company, bill of lading, and any other documentation that supports the validity of the bill meets this requirement.
Please send the Non-Student Invoice Request Form and the supporting documentation to NonStudentInvoicing@gatech.edu. It can also be mailed to the following adresss:

Bursar's Office
Attn:  Non-Student Invoicing
Suite 111 Lyman Hall
Mail Code: 0255

Accumulated Invoices Less than $25.00
Due to the cost of processing billings, charges should be accumulated until they reach a minimum of $25.00 per customer before being submitted for billing: However, these bills should not be accumulated for more than one calendar quarter without submission. Units having special requirements should contact the Bursar's Office at NonStudentInvoicing@gatech.edu for advisement.

Billings Internal to the Institute
Billings between or within departments of the Institute should not be forwarded to the Bursar's Office. Internal billings should be handled with journal entries.

Billing Disputes

If an invoice is disputed by the customer, the Bursar's Office will contact the originating department for verification/direction. Copies of all pertinent information and communications with the customer as needed will be forwarded to the office that originated the billing. The originating office will be requested to provide any information relevant to the dispute within a ten day period. At that point, the originating office should either authorize to reverse the billing entry, confirm that the invoice is correct, or provide details regarding modification of the original bill. The Bursar's Office will contact the customer with the information received from the originating office.

If the Bursar's Office does not receive a response from the originating office within 30 days, the revenue credited to the originating office will be reversed and all documentation will be returned to the issuing department.

Note: Disputed invoices which cannot be resolved through the process defined above will be handled as necessary by the Bursar with the appropriate parties. When necessary, collections and/or legal action may be taken to collect past due invoices.

Forms
http://www.bursar.gatech.edu/sites/default/files/pdf/Non-Student_Invoice_Request.pdf

Prize and award recipients who have been employed in the current calendar year should be submitted on the Awards and Prizes Form that can be obtained from the payroll department. Payroll Prize forms should be forwarded to Accounting Services for approval. The following steps will be taken upon receipt of a request for issuance of an award or prize:

1. The Bursar’s Office will initially verify the purpose of the prize or award. The requesting department must include a description of the reasoning/rationale for the prize on the request form and attach any/all supporting documentation (e.g. attach a notice of annual competition.)
2. The Bursar’s Office will review the request for an authorized sponsored project number to be charged for the prize and award. If this information is not clearly identified on the request, the initiating unit will be contacted in order to determine the project number. If no funding source can be identified, the request will be returned to the initiating department. If a project does not already exist in the accounting records of the Institute, the initiating department must request to establish a new sponsored project. If funding is from either the Georgia Tech Foundation or the Georgia Tech Research Corporation, instructions for establishing projects should be followed as described in the Policy and Procedure Manual. If funding is from external sources, a sponsored project should be initiated and requested through the Office of Sponsored Programs.
3. The Bursar’s Office will verify budget availability prior to the approval of prize and award payments. The initiating department is responsible for all costs incurred if payments are not reimbursed from the designated sponsor. The departments should read the instructions carefully on the award and prize forms when calculating the award amount and estimated total department's expenditures. For more information regarding tax withholdings, refer to Payroll procedure “10.12 Employee Awards and Prizes”.
4. Upon completion of the review of the prize or award request, the approved form will be forwarded to the appropriate office for payment.
   1. Forms for awards and prizes to recipients who have been employed in the current calendar year will be forwarded to the Payroll Department for payment. The Payroll Department will first verify GIT employment for the recipient. Payments will be posted to the accounting records as extra compensation -- account code 511910. The Employer portion of FICA at 7.65% should be included in the budgeted amount for payments to these recipients. Refer to Payroll procedure 10.12 regarding the gross up amount of award if the department is willing to absorb expenses for the employee's income taxes and FICA withholdings. Payment can either be added to the employee's next scheduled payroll or checks will be distributed to initiating departments.
5. Payments made to prize and award recipients who have not been employed in the current calendar year will be processed through the Accounts Payable Department. A check in the award amount will be issued to the recipient using the account code 751120 for such payments. No tax will be withheld, but the recipient may receive a 1099 form if annual payments meet/exceed certain levels established by IRS guidelines. Recipients that have been classified as “non-resident aliens” may be taxed unless a current tax treaty exists between his/her home country and the United States. The department is required to provide the recipient's GTID on the prize form.

Student Award – No Services Required
A student (US Citizen or Resident Alien) who receives a scholarship, fellowship or traineeship award for which he/she is not required to perform services (past, present, or future) may exempt the portion of the award that is used for qualified tuition and related expenses (tuition, fees, books, supplies, and other equipment required for courses). Any portion of the award used for other expenses, such as room and board or travel, is considered part of the student's gross income and must be reported on his/her individual tax return. Because the student has no employment relationship with the Georgia Institute of Technology (the Institute), the Institute is not required to withhold taxes on the taxable portion of the award and has no tax reporting obligation to the Internal Revenue Service (IRS) or the student.

Student Award – Stipulations on Expenses
A student who receives a scholarship, fellowship or traineeship award in which the terms of the award state that a certain amount cannot be used for tuition, fees, books, supplies or required equipment for his/her courses (i.e. a certain amount must be used for room, board or anything other than tuition, books supplies or equipment) is responsible for reporting that amount as gross income on his/her individual tax return. Again, because the student has no employment relationship with the Institute, the Institute is not required to withhold taxes on the taxable portion of the award and has no tax reporting obligation to the IRS or the student.

Tax Rules
The tax rules applicable to scholarship, fellowship and traineeship awards made to nonresident alien students differ from those applicable to students who are US citizens or resident aliens. The total amount of a scholarship/fellowship/traineeship award made to a nonresident alien student that does not represent compensation for services is reportable by the Institute to both the IRS and the student on IRS Form 1042S. The portion of the award that is used for qualified tuition and related expenses are exempt from US tax. The remaining portion of the award is subject to tax and is considered part of the student's gross income and must be reported on his/her individual tax return. The Institute will withhold tax at the rate of 14% on this taxable portion unless the award is exempt under a tax treaty between the US and the student's home country. The student must supply the Institute with IRS Form 8233 in order to claim the benefit of a tax treaty.

Institute Responsibility
The Institute is responsible for withholding payroll taxes on the portion of a scholarship/fellowship/traineeship award made to a student (U. S. Citizen, Resident Alien, or Nonresident Alien who is not claiming an exemption under the provisions of a tax treaty) which represents payment for services required to be performed in order to receive the award. The Institute will provide the student with a Form W-2 at year end which will report to him/her income earned and taxes withheld. The student is responsible for determining his/her tax liability and filing his/her individual income tax return with the IRS.

Student Responsibility
The portion of a scholarship/fellowship/traineeship award that constitutes qualified tuition and related expenses is not subject to tax. Ultimately, it is the student's responsibility to determine his/her tax liability and file a tax return with the Internal Revenue Service each year.

Applicable Forms
Forms to be used in preparing the Annual (Proposed) Operating Budget are specified each year in the guidelines and instructions provided to campus units. See the Budget Office web site for current forms.

Steps in Budget Amendment Process

1. Log into the IBS System
   • Enter your Operator ID (GT ID number).
   • Enter your password.
   • Click “enter.”
2. Check Totals
   • Go to Totals Page
   • Verify approved budget for all funding sources.
3. Check Amendment
   • Go to Review and Submit Page
   • Check Salary Planning and Distribution for any changes automatically generated by IBS.
   • These changes are driven by and reflect the SPD system the day the amendment was run. Delete/correct accordingly.
   • If increasing or decreasing budget, make adjustments to your personal services and/or non-personal services to reflect the change. After each entry is made make sure you click “Save.”
   • Complete “Amendment Notes” and “Comments” fields (see “Use of Comments Fields” section below)
   • If there is no change to the “bottom-line” budget and funds are being transferred between personal services and non-personal services, there must be a zero balance.
4. Check Request Prior to Budget Submission
   • Go to “Review and Submit” page.
   • Verify funding source totals for any increases or decreases.
   • Verify total.
   • Make sure funding is not transferred from one source to another. For example, do not move funds from General Operations to Departmental Sales and Services (DSS).
5. Budget Submission
   • Click “Submit” button.
   • Your department is locked out to allow the Budget Analyst to process your changes.
   • An e-mail is generated and sent to the Budget Office to process your request.
   • Your budget amendment is updated. An e-mail notification is sent to you that your budget amendment is ready to print.
6. Printing Reports
   1. Go to “Reports” page.
   2. All reports are available in MS Excel.
   3. Note that Bud802 and Bud805 are generated after the BA is submitted.
   4. Print report for use by your unit’s financial administrators in review of authorized monthly budget activity.

Use of Comment Fields in the Amendment Process
Department Level Comments – provide a description of your budget changes.

• This page differs from the detail level comments on the Personal Services and Non-Personal Services pages in that here you must include any high-level description to document why you made budget adjustments. The description should be similar to the information previously provided on the cover sheets.

Detail Level Comments (on Personal Services and Non-Personal Services pages)

• Your department is either receiving or giving out a mixture of funding (example: both Tech Fee and Research Consortium funding).
  • Enter totals by funding source in comment.
• Funding to or from more than one other department/project.
  • Enter each of the other departments’ org numbers and amount in comment. Don’t just enter a lump sum total by department.

Actions that result in a NET change to your department’s budget require comments

• SPD adjustments or transfers from one account to another within a department do not require comments. Within comments, always include the project number org # or the name of the department that is either providing additional budget to your department or receiving funds from your department. Your analyst can help you with the transition to paperless documentation within amendments.

Any BA submitted with a net change in a department’s budget but without any documentation in the comment fields will need to be corrected before it will be processed

• Your analyst will contact you to request that you submit the missing information and resubmit the amendment.

Budget Amendment Close-Out Process

• Budget Office balances the changes to the Original Budget.
• The files are processed and submitted to update the PeopleSoft General Ledger.
• The Budget Office notifies the unit budget contacts that IBS is available for your use and the next budget amendment due date.

Please contact your Budget Analyst if you have any questions about these policies and procedures.

State of Georgia Funding
Each year a "Five-year Capital Outlay Budget Request" is prepared by the units of the University System of Georgia and submitted to the Board of Regents. The Board of Regents examines all requests and prepares a consolidated priority list. Only a portion of the list is funded by the legislature's allocation. The unfunded projects normally remain on the priority list the following year. Funds for the approved projects are transferred to GSFIC for disbursement and project administration. These projects are defined as new buildings, building additions, and building renovations estimated to cost $1,000,000 or more.

Board of Regents Funding
The Board of Regents receives a special allotment from the State of Georgia called Major Repair and Rehabilitation (MRR) funds. Each unit of the University System submits to the Board of Regents a prioritized list of repair/renovation projects estimated to cost less than $1,000,000 each. At Georgia Tech this list is prepared by the Space Administration Committee. The Board of Regents reviews each submission and decides which projects will be funded from the MRR allocation. The Board of Regents assigns a project number and authorizes GSFIC to make disbursements from the MRR allocation if the source is bond proceeds. Occasionally projects in excess of $1,000,000 will be funded from MRR funds. When this happens they are usually funded in phases.

Georgia Tech Foundation Funding
GTF funds special projects as determined by the President of Georgia Tech and the Board of Trustees of GTF. These projects may be coordinated by GTF or the funds may be transferred to Georgia Tech and handled by Georgia Tech personnel.

Campus Funds
These are discretionary funds held by Georgia Tech consisting mainly of endowment funds and Auxiliary reserve funds. The use of discretionary endowment funds must have the President's approval or his designee prior to establishing a project budget. The Auxiliary Reserve funds are used to renovate existing Auxiliary Enterprise facilities, construct new Auxiliary Enterprise facilities, and purchase equipment needed by Auxiliary Enterprise units.

Unexpended Plant Funds
This fund group is used to account for the construction or acquisition of physical properties, renovation of existing properties, and purchase of inventories and non-inventoried equipment.

Expenditures in this fund group are categorized as follows:

• Land
• Buildings - New
• Buildings - Additions (Cost a minimum of $5,000 and a useful life of more than three years)
• Buildings - Renovations (Cost a minimum of $5,000 and a useful life of more than three years)
• Improvements Other Than Buildings - landscaping, parking lots, fences, etc.
• Equipment/Inventories - items costing $1,000 or more; (items made of glass or other fragile materials are supplies)
• Equipment items costing $5,000 or more are capitalized and depreciated
• Equipment/Non-inventoried - items costing less than $1,000 are considered supplies

Applicable Forms
Capital Budgets Form
The Capital Budgets Form is used to establish plant fund projects and is provided to the units by the Budget Office. The project account numbers for new projects will be assigned by the Budget Office after the project has been approved. If discretionary endowment funds are shown as the source, the President or his designee must approve the project. All plant fund projects must have the Board of Regents' approval.

All elective fees and special charges must conform to this Georgia Tech policy. Departments may not assess and collect course-related or any other fees not previously approved under this policy.

Procedures for obtaining FFP Residual Balances

1. Request documentation of FFP residual balance amount from Grants and Contracts.
   Note: Units only receive the direct portion of the residual balance.
2. Obtain approval of funds transfer from Budget Office. This may be done via email. Please contact the Director of Budget Planning and Administration, copy to the Associate VP of Financial Services. Include Grants and Contracts documentation as an attachment.
3. Once approved, the Unit may include the new funding in the next monthly budget amendment.
4. The Budget Office will establish a unique project number for these funds and post the appropriate budget amount.
   Note: The revenue generated by this transaction is unique. The BOR classifies these funds as either Indirect Cost Recoveries or Other Miscellaneous Income, depending on details of the transactions. Expenditures must be charged to the same fund as the revenue. Budget amendments to these projects are not allowed.

Original Budget Allocation
Each academic unit’s Original Budget for the next fiscal year contains an F&A base. This base is 30% of the Office of Grants and Contracts' revenue estimate for the current fiscal year as of March 30. The Institute Budget Planning and Administration Office provides estimates to the units of their allocations during the budget development process to permit them to plan their expenditures and budget accordingly.

Mid-Year Budget Allocation
Mid-year permanent budget allocations may be approved by executive staff based on changes to F&A recoveries during the fiscal year. If approved, the allocations will be based on the most current Office of Grants and Contracts' revenue estimates for current fiscal year.

Reconciliation
After the close of the fiscal year, the allocations will be re-computed based on actual earnings for the previous year. These funds will be distributed as permanent additional or reduced budget adjustments in the first budget amendment of the new fiscal year. This will make the units whole for recoveries from the prior fiscal year.

Allocation Schedule
The process for determining resource allocations for the following fiscal year generally follows the following schedule:

• July through January
  • Institute Planning Activities
    The Office of the President, which includes the Provost, Executive Vice President for Research, and the Executive Vice President for Administration and Finance, review the Institute’s strategic plan and the related action plans and also review performance metrics of the Institute’s academic and administrative units. The President establishes unit operating and capital budget request guidelines, Institute operating budget request priorities, capital plan guidelines, operating budget allocation policy and guidelines, and capital plan priorities.
  • Unit Strategic Planning Activities
    Each Georgia Tech unit reviews its strategic plan, including strategies, objectives, and action plans accompanied by resource requirements. Also, each unit reviews its performance metrics from the previous fiscal year and projections for the current year, to be used in developing budget requests for the following year.
  • Preliminary Central Budget Analysis
    Offices of the Institute Planning and Resource Management (IPRM) team perform preliminary planning activities, including revenue estimates, preparation of fee and tuition recommendations, and determination of mandatory cost increases anticipated for the following fiscal year. The IPRM office coordinating this effort is the Office of Institute Budget Planning and Administration (IBPA, or “Budget Office”).
  • Tuition and Fee Recommendations
    The following four efforts proceed during the November through January time period related to tuition and fee review and approval:
    • IPRM staff prepare recommended graduate and undergraduate tuition recommendations on the basis of comparisons of Georgia Tech with its peer institutions. The primary office conducting this work is the Office of Institutional Research and Planning (IRP).
    • The Mandatory Student Fee Advisory Committee receives recommended fee changes from the following units partially funded through such these fees paid by all students: transportation, student activities, technology, student health, and athletics. The Committee recommends the fee levels to the President, who in turn recommends mandatory fees to the Board of Regents. See the separate policy describing this fee process, which is coordinated by the Budget Office.
    • Units that administer fees may recommend changes to these fees for the following year to the Budget Office for review. Except for the mandatory fees noted above, the President approves new fees or changes to existing fee levels. See the separate policy on non-mandatory fees.
    • Academic units may seek approval of tuition differentials for professional masters programs. These are submitted to the Budget Office for initial review and must be recommended by the President to the Board of Regents, which approves all tuition differentials. See the separate policy on tuition differentials.
• January through March
  • Central Budget Analysis Activities
    Preliminary allocation figures and detailed budget instructions, including salary administration guidelines, are distributed to units. Revenue and institutional expense estimates are updated on the basis of preliminary information from the Board of Regents and the status of the state appropriations act. The General Assembly is scheduled to complete the appropriations act by the end of March each year.
  • Budget Request Activities
    College deans and other division heads prepare budget requests for the following fiscal year based on guidelines issued by the Budget Office. Requests must be linked to the Institute and unit strategic plans and must reference performance metrics to justify the requests. The requests could involve reallocation of existing resources or budget reduction plans, depending on the Institute’s expected budget status and the guidelines provided by the President. The Office of the President reviews the Institute budget situation with input from IPRM and holds budget meetings with the major division heads. The Office of the President establishes priorities for the Institute budget following consideration of unit requests and projections of resources available.
  • Preliminary Resource Allocation Decisions
    The Office of the President determines preliminary allocations and/or budget reductions based on expected resource level information available at the end of March. These decisions are made on the basis of a review of the Georgia Tech Strategic Plan and previous and projected performance data such as student enrollment.
• April and May
  • Resource Allocation Activities
  • The Board of Regents is scheduled to approve the following at its April meeting:
    • Tuition rates
    • Mandatory fee rates (fees paid by all students such as student activities, student health, transportation, and athletics)
    • Budget allocations to Georgia Tech on the basis of the approved appropriations act.
    Budget letters with allocations and guidelines are issued to the campus units by IBPA per instructions from the Office of the President. These include pay raise guidelines based on the Legislature’s and the Board of Regents’ guidelines.
  • Detailed Budget Preparation
    Campus units prepare detailed “Original Budgets” within the resource allocation and pay raise guidelines. The tool used for this preparation is the Internet Budgeting Solution (IBS).
• May and June
  • Final Budget Activities
    The individual unit budgets are reviewed and incorporated into the Institute's budget. This final Original Budget is sent to the Board of Regents.
  • Establishing and Executing Approved Original Budget
    The Budget Office works with campus units to establish final budgets for implementation in the new fiscal year.

Rules and Guidelines
Division Deficits
If, during the fiscal year, a division becomes aware of a deficit situation, the Budget Office should be notified by the division head or chief division budget director as soon as possible. The Assistant Vice President, Institute Budget Planning and Administration will inform the administration of the situation. In some cases, operating deficits may be allowed by the administration due to special circumstances. After the fiscal year closes, the Budget Office will conduct an analysis of budget to actual total expenses. If any division has an unapproved net operating deficit, the division’s current fiscal year budget will be reduced on a one-time basis by the year-end deficit amount in the first budget amendment or an approved re-payment plan will be established.

Division Carry Forwards
If a surplus or excess budget is anticipated for year end, and the college or other division would like those funds returned in the next fiscal year, an online request form must be completed (http://status.budgets.gatech.edu/CarryForward/Index) on or before April 15th (or the next business day if the 15th falls on a weekend). In the request, the division should explain:

• the explanation of the source of funding
• the projected amount to be carried forward
• an explanation of why the funds will be available, and
• the purpose for which those funds will be used in the next fiscal year.

These will be reviewed by the Assistant Vice President, Institute Budget Planning and Administration, and where appropriate, by executive staff with a final decision to be communicated to the division by May 15th. Requests submitted by individual departments, programs, centers, or schools will not be accepted except for tuition differential or studies abroad 60/40 split of summer semester revenues.

If, prior to June 1st, the division’s estimate of the year-end surplus changes, the Carry Forward Request Editing form (http://status.budgets.gatech.edu/CarryForward/Index) must be used to update the request and notify the Budget Office.  No revisions to carry forward requests will be accepted after May 31st.

The division should keep in mind that expenses funded from carry forward funds are subject to audit. Documentation should be kept to verify that purchases were in accordance with the purpose originally stated.

Approval is subject to the Institute’s generation of an overall surplus of at least the approved amount. These are one-time funds that will not be built into the unit’s permanent base budget. If the unit’s net year-end balance for General Operations is less than the amount requested, only the year-end balance may be budgeted in the upcoming fiscal year. If the net year-end balance exceeds the amount requested, the maximum amount approved per the request may be budgeted in the upcoming fiscal year. The Budget Office will verify final carry-forward amounts with the units in the first budget amendment of the new fiscal year.

Workday is used to report surplus items to the Logistics (Surplus) Procurement & Business Services. A disposal is considered to be the removal of equipment from the custody and accountability of Georgia Tech.

If a Cost Center “disposes” of equipment by providing it for the use of another university or State Agency, this activity is considered to be a transfer, rather than a disposal, of the equipment. Please refer to "equipment transfer within georgia tech" for information regarding the transfer of equipment.

Instructions for completion of the Fabricated Form:

1. Enter the scientific name of the equipment, if applicable. Enter the common name of the equipment. Enter which name should be placed in the description field of the inventory records. This is the name, which will appear on equipment reports to the department.
2. Check if the title to the equipment belongs to the state or another agency.
3. Enter the name and telephone number of the equipment custodian for the Cost Center.
4. Enter the various cost components of the equipment. This includes materials purchased, external labor cost, transportation and any other costs involved. Enter the total cost.
5. Check whether the above costs are for a new item of equipment or is added value (upgrade) to an existing item of equipment.
6. Enter Georgia Tech CAE Tag number of existing equipment if item is an upgrade.
7. If federal funds were involved in the construction of the equipment, the amount must be identified along with the sponsoring agency.
8. Enter the name of the building, the room number and the department, which has physical custody of the equipment.
9. The form must be signed and dated by the Cost Center Head or his/her designee. Also, enter the phone number of the Cost Center Head or designee.
10. Forward completed form with supporting documentation and completed Cost Transfer Form to Property Control via ServiceNow. A Cost Transfer Form must be completed in order to correct the Spend Categories.

Threshold Requirements
In accordance with state & Board of Regents guidelines, the current threshold for which an inventory of an asset is maintained is $3000 with a life expectancy of one or more years. Items which do not meet the current threshold may be maintained on the inventory to meet contractual requirements, or to effect proper management of small and/or unique groups of movable personal property. The following items, are required to be inventory controlled without regard to the $3000 minimum cost:

1. Books and periodicals (Total dollar value shall be capitalized each year)
2. Firearms
3. Vehicles

Property Control Department responsibilities:

1. To be accountable for all equipment under its control as mandated by state and federal regulations. Property Coordinators must complete the “Asset Management for Property Coordinators” training. Click here to learn more.
2. To provide internal control of capital assets, including proof of existence, ownership, location and proper valuation.
3. To provide uniform procedures for furnishing information needed for effective analysis and control of capital expenditures.
4. To provide a database of inventory information to meet equipment management/reporting needs of the Institute.

Unit Head Responsibilities
Colleges and Cost Centers are accountable for all equipment under their control. They have an important role in the maintenance of an accurate, up-to-date inventory system. The custodianship of property purchased by or assigned to a Cost Center is the responsibility of the Cost Center unit head. The responsibility includes ensuring that the physical security is maintained over all property; tagging items valued at $3000 or more; preparing property reports as required; and documenting and reporting all acquisitions, disposals and changes in the status of unit equipment. Fulfillment of these responsibilities on behalf of the Cost Center unit head may be delegated, but the ultimate responsibility remains with the Cost Center unit head. Adherence to the following guidelines helps to ensure that Cost Center inventory records are as accurate and complete as possible.

1. Correct coding of purchase requisitions and purchase orders. Correct coding by Cost Centers during purchase requisition avoids unnecessary and time consuming corrections after receipt of the equipment.
2. Proper coding of capital asset expenditures. Equipment purchases must be coded with a SC714400, SC743XXX, SC744XXX, SC841XXX, SC843XXX expenditure account code. Use of an account code other than these increases the possibility that the asset will be omitted from the inventory records.

Benefits of Inventory Systems
The perpetual inventory system provides the Institute with the following key benefits:

1. Equipment control and accountability through a comprehensive campus-wide inventory system.
2. Improved equipment utilization through control and identification of capital assets.
3. Database to meet Institute, state and federal grant, and audit requirements.
4. Database to meet requirements of proper risk management and provide basis for identifying equipment for the State's self-insurance program.
5. Basis for management to project and budget future capital replacement requirements.

Procedures
The vast majority of capital asset acquisitions are generated by purchase requisition. Colleges and Cost Centers authorize equipment purchases by initiating purchase requisitions through Workday.

When the equipment is received, the Unit's Property Coordinator enters into the web page the pertinent physical asset information including the “Tag Number” in to Workday.

The asset accounting records are selected from the General Ledger based on the spend category. Property Control makes any corrections to an asset record to accurately reflect the description, cost and other pertinent accounting information. Assets, including Federal Surplust items, are recorded at actual cost.

A report of untagged items is extracted by Property Control. If a matching record is not found, Property Control will notify the Unit via e-mail. The Unit will have 5-days to enter the asset information into the Workday. The cycle is repeated again to match newly entered information.

Property Control is responsible for record retention and ensuring that all taggable assets are identified through internal controls.

1. Contact Gift Accounting in the Georgia Tech Office of Development to notify them of the proposed gift. They will guide you through the process to receive the gift. Be aware that they will want to know the nature of the gift, the appraised value of the gift, and any written conditions or provisions, which the donor is attaching to the gift.
2. The Office of Development will notify the Property Control Department when Georgia Tech officially accepts the gift.
3. Once officially accepted, Property Control will register the asset in Workday and enter the required information into the Asset Management System. Once completed, the Property Coodinator for the receiving Cost Center should tag the equipment.  for the receiving unit should tag the equipment item and enter the required information into the Asset Management System.

Individuals who receive college/Cost Center approval to temporarily remove equipment from the campus must complete an Equipment Loan Agreement Form.

Instructions for completion of the form:

1. Print name of person using the equipment.
2. Enter the location (address) where the equipment will be used.
3. Enter the reason for using the equipment off-campus.
4. Enter Georgia Tech tag number.
5. Enter a short description of the asset, including serial number, model and replacement cost.
6. Sign Form and enter telephone number.
7. Enter Employee ID Number.
8. Print Cost Center name and have Dean/Director/Cost Center Head sign and date form. The form should be retained in the unit for audit and insurance recovery purposes. Unit staff should contact Georgia Tech Insurance & Claims Mgt. (4-3483) to obtain information on how to insure the property off-campus.
9. The Cost Center Head or his/her designee (Property Coordinator) must update Workday to indicate that the equipment item(s) with a Georgia Tech asset tag is now off-campus.
10. When the equipment is returned to campus, the Cost Center Head or his/her designee (Property Coordinator) must update Workday to indicate that the equipment item(s) with a Georgia Tech asset tag is no longer off-campus.

If a Cost Center has an equipment theft, the property coordinator should contact the campus police at ext. 4-2500 to obtain a report of the incident prepared by an officer. Upon receipt of the GTPD incident report, the Cost Center Property Coordinator should notify Property Control via ServiceNow in order to retire the stolen equipment in Workday. No further action is required by the department.

The Incident Report filed with the police department must contain the following information:

1. GA Tech asset tag number of the equipment.
2. Serial number and model number of the equipment.
3. Contact person and telephone number.
4. Location (building name and room number of equipment).

A Trade-In Authorization Request, must be completed and forwarded to Purchasing via ServiceNow prior to submitting a requisition when a piece of equipment is to be traded in. Purchasing will forward a copy of the completed form to Property Control for approval. Once approved, the Cost Center will attache the form to the Workday Requisition. No further action is required by the requesting department except to coordinate the transfer of the old item and the receipt of the new item.
Instructions for completion of the form:

1. Enter the name of the Cost Center initiating the trade-in.
2. Enter the Georgia Tech asset tag number of the equipment.
3. Enter a short description of the equipment, the serial number and the model number.
4. Enter the condition of the equipment.
5. Enter the acquisition date and original cost of the equipment, if known.
6. Enter the amount the vendor is deducting from the cost of the new equipment for the equipment traded in.
7. Enter a short description of the equipment being purchased, and the price of the new equipment.
8. Enter the Document Number and Account Number used for the purchase of the new equipment.
9. The form must be signed and dated by the Cost Center Head or his/her designee.
10. Send the completed form to Purchasing via ServiceNow.

If a Cost Center has an item to transfer to another state agency, the property coordinator should follow the procedure listed below to complete the transfer.

1. Submit a written request to  Property Control and Logistics (Surplus) via ServiceNow.
2. The request should describe the equipment, list the tag number and model number and the location (building and room number) of the equipment.
3. The request should state name of state agency to receive the equipment.
4. The request must be approved by the Cost Center Head or his/her designee.

When a request is received that includes all the information noted above, the Manager of the Property Control will coordinate with others at the Institute and the state Department of Administrative Services (DOAS) to facilitate the transfer. Note that approval/contact is required with others at the Institute, DOAS, and the receiving state agency to complete this process. Some time will be required to get all the approvals needed. Once the proper form/authorizations are received from all parties, the transferring Cost Center will receive written authorization from Property Control to complete the transfer.

Approval
As with the use of any Georgia Institute of Technology (GIT) funds, faculty and staff are to use prudence and good business judgment with the use of Georgia Tech Foundation (GTF) funds. Unit management is responsible for assuring the funds are used properly and has the responsibility and accountability for the use of funds consistent with all gift requirements, GIT and GTF policies and procedures, and applicable state and federal laws.

Approval of financial documents (purchase orders, travel requests, and direct pay vouchers, etc.) is necessary to indicate that an expenditure of GTF funds is consistent with any applicable restrictions imposed on the specific funds being used and with the purpose and mission of the Institute, and that adequate funds are available in the designated account(s). The approver must be an authorized individual who is knowledgeable of account restrictions, GTF and GIT Gift Accounting procedures.

Expenditures Processed through GIT
Business transactions financed by GTF funds are to be processed through GIT in accordance with general business practices and processes. GIT purchasing and expenditure policies and procedures are generally to be used for these purposes. Certain expenditures supporting Institute activities that are not permitted with the use of State funds (as identified in the Allowable Cost Matrix), may be paid directly by GTF. 

Exceptions to this policy may be requested by the unit’s school chair, dean or vice provost, with the pre-approval of the provost, executive vice president for administration and finance or the president (or their authorized delegates) necessary in some instances, as outlined on the GTF Reimbursement/Payment Request Form embedded within the electronic process (see links below). Documentation for these expenses are to be submitted directly to the Foundation for processing via the approved system.

Expenditures Processed through GTF
Requests for direct expenditures to be made by the Foundation are to be submitted via the GTF Reimbursement/Payment Request Form and process and should be supported with appropriate documentation, including itemized receipts and invoices that include sales tax, if relevant.

Approval will include a certification by the approver that the expenditure is consistent with any applicable restrictions imposed on the funds and within the purpose and mission of the Institute. The approval will also certify that the payment request complies with all GIT and GTF policies and procedures and any required reports of the use of funds have been or will be provided in a timely manner.

Invoices and requests for reimbursement should be submitted on a timely basis and in accordance with GIT expenditure policies.

The Office of Grants and Contracts Accounting is charged with the establishment of sponsored projects in the Chart of Accounts and the accounting records of the Georgia Institute of Technology upon receipt of properly completed GTF Gift Request Form from the Foundation.

Upon receipt of a gift or budgetary allocation, the Georgia Tech Foundation will establish a GTF account number for the funds. GTF will transmit the account number, dollar amount, restricted use of the funds, and any effective or expiration dates for the funds to the Office of Grants and Contracts Accounting, or to GTRI Accounting for awards to GTRI units, using the Gift Transmittal Form. All funds reported on this form will be budgeted in the "Other Memo" category. If specific budget details are required, the budget information should be entered on the second page of the Form (back of the Form) using the spaces provided The authorization should be approved by authorized personnel at the Georgia Tech Foundation.

When gifts and/or awards are received initially by the operating units, a Gift Transmittal Form should be prepared by the unit and forwarded directly to the Foundation with all supporting documentation. Requests received by the Office of Grants and Contracts Accounting without a properly completed Gift Transmittal Form will be forwarded to the Georgia Tech Foundation for action.

Unit Notification
The unit responsible for management of the account will be notified by G&C or GTRI Accounting of the GTF Foundation account number, the GIT sponsored project account number and center numbers, which have been assigned to the project. This notification will also identify the available funding (budget), and any restrictions associated with the use of funds that are reported by the Foundation.

Budgetary Changes
Changes in a sponsored account budget will follow the same procedures as those for changes to other sponsored project budgets. GTF will notify G&C or GTRI Accounting of any additions or reductions in funding. Upon completion of processing the required changes, the managing department will be notified of the revised budget.

Sub-Projects
Sub-Projects that are required by the managing units should be established using Grants and Contracts: Establishing Sub-Projects.

Account Establishment
Upon receipt of a gift or budgetary allocation, the Georgia Tech Foundation will establish a GTF account number for the funds. GTF will transmit the account number, initial dollar amount, restricted use of the funds, and any effective or expiration dates for the funds to the Unit and to the Controller’s Office or to GTRI Accounting for awards to GTRI units using the GTF Gift Request Form. All funds reported on this form will be budgeted in the "Other Memo" category. If specific budget details are required, the budget information should be entered on the second page of the Form using the spaces provided.

The Controller's Office and GTRI Accounting are charged with the responsibility of establishing sponsored projects in the GIT Chart of Accounts, the Grants and Contracts accounting system and GTRI accounting subsystems, and the preparation and maintenance of accounting records and financial reports for these accounts. Upon receipt of account information from GTF, the Controller's Office determines the type of account to establish and assigns a sponsored account number and general ledger account center number within the numbers assigned for the unit requesting the account. The account number is then submitted electronically for review and update to the Chart of Accounts. The budget for the project will be established in the "Other Memo" category unless specific information is provided on the second page of the Form in detail.

Unit Notification
The unit responsible for the account and GTF are notified by the Controller's Office or GTRI Accounting of the sponsored account and center numbers, which have been assigned to the project, the available funding (budget), and of any restrictions associated with the use of funds.

Budgetary Changes
Changes in an account budget will follow the same procedures as those for changes to other sponsored project budgets. GTF will notify the Controller's Office or GTRI Accounting of any additions or reductions in funding.

Sub-Projects
Sub-Projects that are required by the managing units should be established using the procedure in: "Establishing Sponsored Sub-Project Numbers".

2.0 Procedures 

2.1 Signature approval
As with the use of any GIT funds, faculty and staff are to use prudence and good business judgment when expending Research Corporation funds. Unit management is responsible for assuring the funds are used properly and has the responsibility and accountability for the use of funds consistent with all GIT and Research Corporation policies and procedures and applicable state and federal laws. Signature approval of the Expenditure Request Form submitted to the Research Corporations is necessary to indicate that the expenditure is consistent with any applicable restrictions imposed on the specific fund being used, in accordance with the purpose and mission of the Institute, and that adequate funds are available in the designated unit allocation or grant account to fund the expenditure. The approver must be the Dean, Vice President, or Director for the unit to which the allocation or grant was made or their authorized signature delegate.  Please see link below for Signature Authority Delegation Form that must be completed to delegate signature authority.

2.1 Expenditures processed through GIT
With the exception of expenses listed in section 2.2 below, business transactions financed by Research Corporation funds are to be processed through GIT in accordance with GIT policies and procedures using GIT systems. GIT procurement policies may be found at: https://policylibrary.gatech.edu/business-finance/purchasing-and-accounts-payable.

2.2 Expenditures processed through the Research Corporations
Unless permissible for payment by GIT under GIT policies, the following types of transactions may be submitted for direct payment by the Research Corporations using the GTRC & GTARC Unit Allocation and Grant Expenditure Request Form (see link to form below). All other transactions must be processed through GIT.

1. Business Meetings and Events in support of the GIT research enterprise.  Please reference the following GIT policy: Business and Finance 5.2.1.9 Procurement of Group Meals for Employees, Students, and Official Visitors 
2. Employee Moving Expenses in support of the GIT research enterprise.  Please reference the following GIT policy: http://policylibrary.gatech.edu/academic-affairs/relocation-assistance-policy.
3. Membership Dues and Conference Registrations in support of the GIT research enterprise.
4. Reimbursement of Tuition and Fees for GT employees.  Please reference the following GIT policy: Employee Benefits & Services | Policy Library | Georgia Institute of Technology | Atlanta, GA (gatech.edu)

2.3 Exceptions to expenditure process policies

Any exceptions to sections 2.1 and 2.2 of this policy must be approved by the Executive Vice President for Research in writing prior to the expenditure of funds.

2.4 Project expenditure reports
Project expenditure reports generated by the Controller’s Office and GTRI Accounting reflect financial activity recorded to both GIT and Research Corporation records. The transaction details and amount of expenditures paid directly by the Research Corporations will be reported to the GIT Controller’s Office and GTRI Accounting on a regular basis for entry into the GIT and GTRI accounting systems as "Other Memo" expenditures to provide account managers with financial reports that reflect total project costs. Project budget and expenditure reports for these accounts are available in the Workday financial system.

Visit the GTRC / GTARC Website (Services for Researchers) for: 

• Travel Services and Forms   

• Laboratory Relocation for New Researchers Form

• Expenditure Request Form

• Education Assistance and Tuition Reimbursements Information

Georgia Tech authorizes the principal investigator (PI) and the properly authorized unit designee (financial manager and staff) to have primary responsibility for the management of sponsored agreement funds. The actions of these authorized individuals are documented using manual/electronic signatures and/or a system password. It is the responsibility of PIs, unit heads and staff delegated signature authority by unit heads to ensure that only allowable charges are posted as direct expenses to sponsored projects. Unit financial managers are in the most knowledgeable position with up-to-date information regarding the status of their respective sponsored projects. As such, local management’s signature approval of a financial transaction indicates:

• Approval for the action requested
• Goods or services are directly related to the project scope
• Charges are allowable according to the approved project budget
• Charges have been incurred within the project time period
• Charges have been incurred in accordance with GIT financial and accounting policies and procedures
• Charges have been incurred in accordance with Terms and Conditions of the sponsored agreement
• Funds are available in the designated projects

Quarterly Compliance Reviews
The Office of Grants and Contracts Accounting will perform a quarterly “Sponsored Project Allowable Costs” compliance review to accomplish the following objectives:

1. Provide means for monitoring compliance with 2 CFR Part 200 and implementing adequate internal controls to ensure that departmental business managers are monitoring compliance with respect to expenditures charged to sponsored projects.
2. Implement systematic queries of sponsored project charges to evaluate the appropriateness of direct costs charged to projects.

The Office of Grants and Contracts Accounting conducts regularly scheduled training sessions pertaining to allowable and unallowable costs.

Contact the Grants and Contracts Accounting Department for specific guidance related to managing sponsored projects at Georgia Tech.

Basic Requirements
Due to the administrative requirements of managing service centers, there should be a clear business-case for establishing and renewing separate service center charge rates. The requisite business-case includes the following basic parameters:

1. Self-Supporting Revenues - Service center annual recoveries should typically be sufficient to fund the annual operating costs of the center. Any cost in excess of revenue should be posted to a discrete project so total center costs can be easily identified. Direct costs include allocable salaries, fringe benefits, supplies, equipment maintenance, and maintenance agreements. SSFs also include indirect costs such as building depreciation, equipment depreciation, and building operations and maintenance expenses (including utilities).
2. Local Administrative and Financial Support - The unit/department must be equipped to manage the additional accounting and reporting requirements of the Center. These activities include separate accounting for expenses and recoveries and precise tracking of utilization for charge-out purposes.
3. College and Institute Level Approval - The “Service Center Rate Study Request” form must be completed and approved by the appropriate School or Department Head and the appropriate College or Institute level officer prior to being submitted to Grants and Contracts Accounting for consideration. The form can be found on the Grants and Contracts website.

Service/recharge center rates may only be established or renewed after the above basic requirements have been met, documented, and properly approved. Thereafter, rate studies are prepared and billing rates are established and renewed based on the following procedures:

Service Center Rate Studies and Billing Rates

1. Proposed billing rate studies are scheduled on an annual basis. Estimated rate calculations will be developed based on the most recent completed fiscal year. Estimated rate calculations for Resident Instruction and Units other than GTRI are to be submitted to Grants and Contracts Accounting annually. Rates normally become effective July 1 of the subsequent year. Prior to ONR approval, if required, rates utilized will be considered provisional until subsequently amended.
2. Billing rates may not be based on what others charge for similar services.
3. Service rates should include both direct and for SSFs an allocable share of Facilities & Administrative (F&A or indirect) costs. The proposal should consist of prior year historical costs all equipment depreciation costs by specific item, net square footage occupied and any over/under recovery from the prior year if required. The proposal should also contain documented utilization of the cost center from the prior period and a justification of the selected utilization base.
4. All billings are to be invoiced to a Georgia Tech account/project. Direct expenses applicable to the service center and all offsetting billing revenues should be recorded to worktags established for purposes of reporting and accounting for center activities.
5. Agreements to conduct services for external entities may be evaluated by the Office of Sponsored Programs (OSP) and should be based on the OSP short form contract document. Billings to external parties are coordinated through the Bursar’s Office after approval is gained via Grants and Contracts.
6. Service Center rates are validated periodically to ensure that charge rates were at or below cost during the prior period(s). This validation work is scheduled and managed by the Grants and Contracts Accounting Office with significant assistance from the responsible Center or Unit Financial Officer. Accurate tracking and reporting (including detailed supporting documentation) for expenses and revenue entries is critical to the timely performance of service center rate studies and validations.
7. Existing (previously approved) service centers that do not meet the basic "business-case" requirements noted above will be reevaluated as part of the annual rate validation step. In these cases, Service Center billing rates may be suspended or lapsed until the business-case is reestablished and properly approved via the "Service Center Rate Study Request” form. Grants and Contracts Accounting will notify the responsible Institute, School, Center, and Unit contacts at least 30 days prior to this action.
8. Existing (previously approved) Service Center billing rates where a significant amount of charges were posted to sponsored projects will be suspended if this validation and renewal process is not completed in a timely fashion. Grants and Contracts Accounting will notify the responsible Institute, School, Center, and Unit contacts at least 30 days prior to this action.
9. Existing (previously approved) service centers with costs posted to a non-DSS project will require College or Institute level officer approval of support annually.

Service center rates that are not documented, supported, validated, and renewed in accordance with this policy may not be charged to externally-funded sponsored projects.

Forms

Non-personal service cost transfers can be initiated in the units via a journal entry or accounting adjustment in Workday. To obtain hard copy forms for prior year salary cost transfers, please contact the Office of Grants & Contracts Accounting at gc.ask@business.gatech.edu or go to https://grants.gatech.edu/.

Frequently Asked Questions
Contact the Office of Grants and Contracts Accounting at gc.ask@business.gatech.edu for additional guidance related to Cost Transfer requests.

Facilities and Administrative costs (previously referred to as indirect costs) are comprised of two main categories: Facilities costs and Administrative costs. (See definitions above.) The distribution base used to determine F&A Rates is the Modified Total Direct Cost (MTDC) as defined by OMB Uniform Administrative Requirements (2 CFR 200) . An F&A rate is expressed as a percentage multiplied times the appropriate cost base on the grant or contract to determine the amount of F&A cost to be charged. The F&A cost is billed to the sponsor along with direct costs.

Facilities and Administrative (F&A) rates are determined on an annual basis according to the provisions of OMB Uniform Administrative Requirements (2 CFR 200), Section 200.414, and audits by the Defense Contract Audit Agency (DCAA), with negotiation and approval of rates by the Department of Navy, Office of Naval Research (ONR). The Institute and ONR negotiate F&A rates to be used over a period of years, based on the audited rate proposal report.

The negotiated F&A rates are to be used on externally-funded grants and contracts. Other sponsors, including the State and private foundations, tend to limit, by their own policy, the F&A rate they are willing to pay. Federal training and fellowship grants, clinical trials and drug studies also limit the F&A rate.

Types of F&A Rates
Three F&A rate types and five standard F&A rates are in place and applicable to sponsored work performed by the academic units of Georgia Tech (excluding GTRI). The applicable rate types and standard rates are described as follows:

1. Organized Research
   Research and development activities financed by external sponsors that are separately budgeted and accounted for by the Institute.
   • Federal Capped Rate – Incorporates all administrative limitations imposed by the Federal government. Rate is applicable to all Federal awards, all Department of Defense (DOD) Grants, and to DOD contracts awarded before November 30, 1993.
   • Federal Uncapped Rate – Incorporates only the departmental administration limitation imposed by the Federal government. Rate is applicable to DOD Contracts awarded on or after November 30, 1993 in accordance with DFARS 231.303(1).
   • Industrial Rate – Fully-burdened without administrative limitations. Rate is applicable to industrial awards.
2. Instruction
   Conventional academic instruction and related activities financed by external sponsors that are separately budgeted and accounted for by the Institute. There is only one standard rate associated with this rate type.
3. Other Sponsored Activities
   Program and projects financed by external sponsors which involve the performance of work other than instruction and organized research. Among these activities are included programs designated as Community or Public Services. Examples include conferences, institutes, general advisory services, reference bureaus, consulting, and similar non-instructional services to particular sectors of the community. There is only one standard rate associated with this rate type.

Determination and Application of Federal F&A Cost Rates
F&A rates approved by ONR on a “Predetermined” or “Fixed” basis are treated as fixed rates throughout the competitive segment of the Federal sponsored agreement. A competitive segment is a period of years approved by the Federal funding agency at the time of the award. If negotiated rate agreements do not extend through the life of the sponsored agreement at the time of the initial award, the negotiated rate for the last year of the sponsored agreement is extended through the end of the life of the sponsored agreement.

Institute and Sponsor-Funded Fringe Benefits rates are determined on an annual basis according to the provisions of 2 CFR 200, and audits by the Defense Contract Audit Agency (DCAA), with negotiation and approval of rates by the Department of Navy, Office of Naval Research (ONR). Upon approval by ONR, rates are used to charge fringe benefits expenses to institute-funded and sponsor-funded activities and projects during the fiscal year. Following the end of the fiscal year, the actual fringe benefits rates are determined. If Fringe Benefits rates have been approved on a “Fixed with Carry-forward Basis”, any amount of over or under-recovery of expense is incorporated into the next fringe benefits rate proposal. This procedure provides for the collection or repayment of any over or under-recovery of fringe benefit expenses.

The following benefits are included in the Institute and Sponsor-Funded Fringe Benefits rates for the academic units of Georgia Tech (excluding GTRI):

• Social Security
• Life Insurance
• Health Insurance
• Retirement
• Termination Vacation Leave
• Other Non-Payroll Benefit Expenses – Includes Worker’s Compensation, Unemployment Compensation, Retiree Group Insurance

Types of Fringe Benefits Rates
Five Personal Services Cost Groups have been identified for purposes of determining and applying the fringe benefits rates. The classes of employees and types of payments included in each of the five groups are as follows:

1. Partial Benefits - Social Security Benefits only; Covered employees include

 

a. Temporary classified persons

 

b. Temporary academic or research professionals not eligible for retirement, health insurance, and life insurance programs or not electing coverage under the plans

 

c. Part-time employees employed for less than 50% of a full work schedule

 

d. Additional compensation payments not covered by retirement programs

e. Other payments to employees to cover moving expenses, awards, termination pay and other miscellaneous payments not covered by retirement programs

2. Full Fringe Benefits - All Benefits noted above; Covered employees include:

 

a. Regular full-time faculty

 

b. Principal Investigators

 

c. Professional and administrative staff

 

d. Joint staff

 

e. Temporary academic or research professionals covered by applicable retirement, health insurance, and life insurance programs

 

f. Bi-weekly permanent employees

 

g. Part-time employees employed for at least 75% of a full work schedule

3. Limited Benefits – Social Security, Retirement, Termination Vacation Leave, and Other Non-Payroll Benefits; Covered employees are those employed for at least 50%, but less than 75% of a full work schedule, including:

 

a. Regular faculty

 

b. Principal Investigators

 

c. Professional and administrative staff

 

d. Joint staff

 

e. Temporary academic or research professionals covered by applicable retirement programs

 

f. Bi-weekly permanent employees

4. Graduate Student Health Insurance - Covered employees include:

 

a. Graduate Research/Teaching Assistants who qualify for the graduate tuition remission award. See G&C Policy 3.17 “Graduate Student Tuition Remission Program” for additional information on qualifications.

5. No Benefits – Applicable to all other student employees enrolled full-time and working less than 20 hours per week.

Forms
To obtain hard copy forms, please contact the Office of Grants & Contracts Accounting via Service Now.

The Office of Grants and Contracts Accounting, in collaboration with financial representative in the campus units, is responsible for the financial close-out of sponsored awards in the Institute's accounting records for both external sponsored awards and restricted gift allocations funded by the Georgia Tech Research Corporation. Steps taken to complete the financial close-out process are as follows:

1. Personnel in the Office of Grants and Contracts Accounting may review expenditures and obligations allocated to sponsored awards period of performance. The review may include, but is not limited to, review of transactions to ensure expenditures are within sponsor guidelines established in the award document and in compliance with applicable laws and institutional policies, including the Federal Government’s Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements (2 CFR 200).
2. G&C personnel responsible for award close-out will work collaboratively with the campus unit financially responsible for the prime award. Any unrecorded activity must be verified by the G&C personnel as allowable in order to include those costs and/or unliquidated obligations in a financial report or final billing to the sponsor.
3. In accordance with 2 CFR 200.344, the non-Federal entity must submit, no later than 120 calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award. This deadline may be extended based on requirements for specific sponsors or contract terms and conditions that indicate a due date other than 120 days after the performance end date.
4. Grants and Contracts Accounting personnel are responsible for monitoring awards which have been financially closed with the sponsor but have outstanding action required by campus units. Until all internal adjustments are complete, the sponsored award will not be inactivated in the accounting records.
5. At the time final payment from the sponsor is received and all internal actions have been processed (i.e., transfer of overrun costs to a discretionary funding source) in the accounting records, the Office of Grants and Contracts Accounting inactivates the award in the Institute's accounting records.

Fixed-price Sponsored Projects
Fixed-price sponsored awards will be closed in same manner as standard cost-reimbursable awards. In accordance with 200.201 (b)(3) of the OMB Uniform Requirements (2 CFR 200), written certification that the project or activity was completed or the level of effort expended must be obtained. If the required level of effort or activity was not carried out, the amount of the award must be adjusted.

The PI Fixed Price Close-out Certification must be completed and submitted to Grants & Contracts Accounting for review. After certification, immaterial residual balances (if any) remaining on fixed price awards will be transferred to a departmental GTRC allocation, net of applicable F&A expenses, to be managed by the Chair/Director of the department.

Frequently Asked Questions

Please refer to the Grants and Contracts Accounting web site at www.grants.gatech.edu for additional information

Standard payroll, procurement, accounts payable, travel, and general accounting supporting documentation is maintained centrally in accordance with USG retention guidelines.

P-Card, Electronic Cost Transfer (ECT) and other subsidiary expenditure documentation is maintained at the local unit level.

Additional Retention Requirements – Federal Sponsored Projects

Central sponsored program files, including award documentation, financial reports and summarized accounting system information are retained in accordance with the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements (2 CFR 200), Section 200.333 – 200.337 – “Record Retention and Access”. Section 200.333, Retention requirements for records, states financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to an award must be retained for a period of three years from the date of submission of the finial expenditure report** or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.

Detailed Federal sponsored project expense records that exceed the USG/Institute retention period should be maintained by the home department of the Project/Sub-Project Principle Investigator in accordance with 2 CFR 200 requirements.

**Final Expenditure Reports are typically due 60-120 days after the final expiration date of the sponsored award.

To assist with the identification of sponsored projects that need special attention and corrective action, G&C Accounting prepares a monthly exception report to identify all awards with expenditures in excess of available funds and/or active awards with expired term dates. The monthly exception report is distributed to G&C personnel, unit financial officers and appropriate Deans/Directors; representing formal notification to the incurring unit. Corrective action must be taken to clear unbillable amounts as identified each month in the Sponsored Project Exception Report.

In addition to the monthly reporting procedures, G&C Accountants will initiate additional action to clear unbillable costs on sponsored projects. When the assigned G&C Accountant determines that costs incurred are unbillable to the sponsor, the following steps are taken:

These corrective action procedures do not apply to sponsored projects established with OSP-approved Advance Project Numbers or to current projects pending receipt of official modifications. However, written proof/justification from the sponsor is required under these circumstances.

1. G&C contacts the incurring department to determine if immediate action can be taken to resolve the unbillable costs. If the administrator indicates that action will be taken to clear all unbillable amounts within a reasonable time frame (typically 30-60 days), no additional action is required at that time. The assigned G&C Accountant may also contact the Office of Sponsored Programs (OSP) at this stage to determine if official modifications are pending.
2. If action is not indicated by the department or there is no pending action indicated to resolve the outstanding unbillable costs, the project will be reported to a G&C Accounting Manager. Review and follow-up by G&C Accounting is on a continuing basis until the unbillable costs are resolved in some manner.
3. If appropriate action is not taken by the incurring unit and no additional information is provided to substantiate the unbillable amounts within approximately 60-90 days, all questioned costs will be transferred to the unit’s cost overrun project. This cost transfer will typically be processed within 90 days of the reported exception but may occur sooner as required by applicable financial reporting and/or invoicing requirements. It should be noted that costs transferred to a unit’s cost overrun project may be redirected to other projects as appropriate and as approved.

Forms
Reports are available in the Web Grants Management (GM) system to assist Principal Investigators, assigned delegates, and unit financial officers in providing proper oversight and management of sponsored projects. Proper project management includes posting all appropriate expenses on a timely basis, ensuring that costs are allowable and allocable to the project, and ensuring that expenses do not exceed the authorized budget. The “90 Days to Expiration Report” and the “Project Status Report” are useful for identifying projects that are at or approaching the unbillable stage. These reports are accessible from the main menu of Web GM.

Additional information related to Web GM, including access requirements and training materials, may be accessed from the Grants and Contracts Accounting web site at www.grants.gatech.edu

Contact the Office of Grants and Contracts Accounting at gc.ask@business.gatech.edu for specific guidance related to managing sponsored projects at Georgia Tech.

An undesignated sponsored report is produced each month by the Commitment Accounting team for each unit and for the Office of the Executive Vice President for Research (EVPR).

For the first eleven months (July - May) of the fiscal year, any undesignated expenditures over 60 days will require justification in accordance with procedures managed by the Office of the EVPR.

Prior to the end of the fiscal year, any balances in the Undesignated Sponsored Projects must be removed and posted to an appropriate unit worktag or other allowable funding source.

Contact Commitment Accounting through ServiceNow for specific guidance related to managing salary allocations as Express Direct Retro (EDR) transactions.

Contact the Grants and Contracts Accounting Department through ServiceNow for specific guidance related to managing sponsored awards at Georgia Tech.

Personal Services and Effort Reporting guidance is available on the Grants and Contracts Accounting website at www.grants.gatech.edu.

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The budgetary unit must submit a Request for Cost Transfer - Sponsored Projects form in accordance with the procedures established and detailed elsewhere in the Policy Library.

1. It is permissible to transfer an expense to the budgetary unit's current year's State funds or to discretionary sponsored funds if the expense causing the overrun is incurred in the current fiscal year. (Instruction or General Research funds - NEVER to Indirect Research)
2. The expense must be written-off against current year funds for active projects. The budgetary unit must identify the current year's State account which is being used to cover the deficit.

Forms
The Request for Cost Transfer/Encumbrance - Sponsored Projects form may be obtained from the Office of Grants and Contracts Accounting.