Expenditure Correction Process

This guide will cover:

• Information

• Accessing the Expenditure Correction Form

• Completing the Expenditure Correction Form

  • Project Funds Determination

    • When Project Funds are not Involved

    • When Project Funds are Involved

  • Distribution Lines – Entering the GL/POET String(s) for the Correction Transaction

  • Entering the Type of Correction

  • Explaining the Reason for the Expenditure Correction

  • Submitting the Expenditure Correction

• Additional Resources

Information

Expenditure Corrections provide a way to reallocate and correct an expense or revenue entry after the initial entry was charged to another account. All expenditure corrections must be appropriately justified, documented, and completed in a timely manner to support allowability.

Expenditure Corrections involving project funds must comply with the Expenditure Correction/Cost Transfer DAPP found on the Financial Affairs Website>Policies and Reference Material>Office of Sponsored Programs. It is the policy of the University of Wyoming (“University”) that all expenditure corrections must be processed in compliance with Federal and other sponsor requirements.

All Expenditure Corrections must be supported by documentation which contains a full explanation of why the error occurred and the relationship of the charge to the project/account to which the correction is being made. Explanations such as “to correct an error” or “to transfer to correct grant” are unacceptable. The key is to explain how the error occurred and the nature of the error, or why the expenditure was assigned to an incorrect project.

Accessing the Expenditure Correction Form

• The Expenditure Correction Form is located on the Financial Affairs Website > Forms > Accounting Office section

• Click on the Expenditure Correction Form to access the form for use. You will be required to enter your University login information to access the form

• The Expenditure Correction Form will open

  • Your Name, Department, and Email will preload onto the form based on your University HCM information. You may have to enter your office/dept phone number if you do not have an assigned University number.

 

Completing the Expenditure Correction Form

Project Funds Determination

In the form it will ask: Are Project Funds Involved? * The answer to this question will determine the fields that need to be completed for the expenditure correction.

 

When Project Funds Are Not Involved

• When project funds are not involved, Select No.

• Selecting No will change your form to look as follows. You will have one additional required field to complete:

  • For Non-Sponsored Project Corrections - Complete Reason for Correction: *

    • View Explaining the Reason for the Expenditure Correction for more details on how to complete this field.

 

When Project Funds Are Involved

• When project funds are involved, Select Yes.

• Selecting Yes will change your form to look as follows. You will have three additional required fields to complete:

  • How are Project Funds involved? *

    • Determine how Project Funds will be involved in the corrected entry. This will determine the fields that are displayed in the distribution lines:

      • Project to Project:  Original entry was project funding; corrected entry is project funding

      • Project to General Ledger:  Original entry was project funding; corrected entry is general ledger funding

      • General Ledger to Project:  Original entry was general ledger funding; corrected entry is project funding

  • Why was the expense(s) originally charged to the account from which it is now being transferred? *

    • View Explaining the Reason for the Expenditure Correction for more details on how to complete this field.

  • Explain why the expense(s) is being transferred to the proposed receiving account. Describe how the expense(s) directly benefits (i.e., are allowable and allocable) the award. *Ensure that no sponsor restrictions would preclude this transfer and that the transfer complies with sponsor and university policies. *

    • View Explaining the Reason for the Expenditure Correction for more details on how to complete this field.

 

Distribution Lines – Entering the GL/POET String(s) for the Correction Transaction

• In the form it will ask: Number of lines/distributions? * You are able to enter 1-10 transaction lines at a time when completing an expenditure correction. All lines must be part of the same IDT, Deposit, or Invoice/Expense Report.

 

• For Non-Sponsored Project Corrections, you will enter a General Ledger to General Ledger (GL) correction entry. A GL to GL example entry is shown below.

• Entity – Chart of accounts segment for entity

• Account – Chart of accounts segment for account

• Fund Class/Type – Chart of accounts segment for fund class

• Fund Source – Chart of accounts segment for fund source

• Organization – Chart of accounts segment for organization

• Exp. Class – Chart of accounts segment for expense class

• Program – Chart of accounts segment for program if used by your department.

• Activity – Chart of accounts segment for activity if used by your department.

• Future – Chart of accounts segment for future

• Amount – Cost amount of the expenditure

 

• For Project Funded Corrections, You will enter the POET/General Ledger (GL) string for the original transaction in the From section and enter the corrected POET/GL string in the To section.

  • A Project to Project example entry is shown below.

• Project – The unique number assigned to the sponsored project

• Organization Name – Organization name of the department assigned to the project

• Expenditure Type – Refer to the grant expenditures crosswalk for descriptions

• Task Number – always 1

• Amount – Cost amount of the expenditure

 

Note: For more information on what make up the General Ledger/POET Account Strings, visit the Chart of Accounts webpage found on the Financial Affairs Website > Chart of Accounts.

 

Entering the Type of Correction

• In the form, it will ask: What type of correction are you making? * Based on the transaction you are correcting, You will select IDT Correction, Deposit Correction, or Invoice Payment or Expense Report Correction.

• If you select IDT Correction, you will be requested to enter the IDT #, IDT Paid Date and Service Agency Name (Revenue Department Name).

• If you select Deposit Correction, you will be requested to enter the Deposit Receipt # and Deposit Date.

• If you select Invoice Payment or Expense Report Correction, the form is completed differently depending on the type of correction:

  • Invoice Payment: All fields of Supplier/Payee Name, Invoice or Expense Report Number, Payment Date, and Check/Payment # are completed.

• Expense Report Correction:   The fields of Supplier/Payee Name, Invoice or Expense Report Number and Payment Date are completed. Because check numbers are not applicable to an Expense Report, N/A is entered in this field.

Note: You can find the requested information in the Account Analysis Report or through various reports found on the Reports & Analytics module in WyoCloud. View the Financial Management Reporting QRGs for more information on certain reports.

 

Explaining the Reason for the Expenditure Correction

• Based on whether project funds are involved and the date of the original expenditure, you will need to answer 1-4 questions, explaining the reasons for the correction. All expenditure corrections must be appropriately justified to be accepted.

  • Explain how the error occurred and nature of the error or why the expenditure was assigned to an incorrect project/general ledger account.

 

Submitting the Expenditure Correction

• Once all required fields (*) have been entered, click Submit.

• After clicking submit, an automated email will be created that will be addressed to you as well as WyoCloud Corrections or OSP Expenditure Corrections (if project funds are involved). This email will show your expenditure correction within the email and through a html file.

• To check the status of your correction, view your organization’s Account Analysis Report after month end close or reach out to the Accounting Office (accounting-office@uwyo.edu or 307-766-3310).

 

Additional Resources

• Expenditure Correction / Cost Transfer Policy (DAPP)

• Financial Management Reporting QRGs

• Completing an Interdepartmental Transfer (IDT) QRG

• Entering an Expense Report QRG

 

 

This concludes all the steps for Completing an Expenditure Correction.