Scope

This procedure covers retroactive labor charges (hereafter referred to as LD Retros) as they relate to grant labor distribution (LD) adjustments taking place more than 90 days from the original transaction date.

This procedure does not cover cost transfers on other grant expenditures. For this activity see procedures 8-20 and 8-21.

Policy [Top]

VIII.C.1 -- Compliance with Sponsor Requirements

Responsibility [Top]

Departmental personnel are responsible for preparing and submitting the LD Retro request with the knowledge and approval of the Principal Investigator.

The Office of Sponsored Programs is responsible for reviewing and approving LD Retro requests, and contacting the department to obtain additional information if necessary.

Distribution [Top]

Director, Research Administration Outreach and Compliance
Department/School Administrator
Central Grants Accountant
Assistant Director for Research Accounting

Ownership [Top]

The Assistant Vice President for Research Administration is responsible for ensuring that this procedure is necessary, reflects actual practice, and supports University policy.

Procedure Steps [Top]

This activity is performed whenever departments prepare LD adjustments involving labor distribution charges whose original transaction date is more than 90 days old.

This procedure continues from procedure 8-20.

Responsibility

1. Departments submit an e-mail request to the osp-retro-request@virginia.edu listserve account.
2. When submitting an LD Retro request, please be sure to answer the following questions:

• Why does this charge belong on the grant to which it is being moved? In other words, how is it allocable?
• Why was the charge put on the wrong award?
• How are you going to prevent this from happening in the future?
• Why is the LD Adjustment request over 90 days old, and why did it take so long to discover the error?

3. The requests are required to include the following information:

• The PTAs being charged and credited in the move.
• The Expenditure Item Date (s) (EID) of the LD being adjusted.
• The name of the person salary/wages labor is being adjusted for, and the pay type they are (faculty salary, faculty wage, etc.)
• The reason why the LD should be adjusted. "To correct error," or "to transfer to correct project" is not sufficient.
• The reason why the request is over 90 days old.

4. LD adjustments involving Grant and Contract PTAs are reviewed by OSP, and if inappropriate will be moved from the sponsored award to the overhead account of the originating department.
5. If the LD charge is moved from the sponsored award, OSP will notify the originating department.

The following link provides guidance in the documentation and processing of Labor Distribution (LD) Adjustments impacting sponsored projects (G and Z awards). Once this new process has stabilized, this guidance will be absorbed into the University’s formal procedures. Questions should be directed to the Director of Compliance and Outreach in the Office of Sponsored Programs, Sharon Brooks.

End of Activity