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REQUIREMENTS AND POLICIES MANUAL

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Resource Adjustments

    Title:

    Resource Adjustments

    Publication date:

    10/16/2017

    Effective date:

    10/16/2017

    BRIEF

    Policy Summary

    This policy defines the requirements and procedures for executing and approving resource adjustments at Berkeley Lab. A resource adjustment is an online process to transfer either labor or non-labor costs from one Berkeley Lab project and activity to another, or between activities within the same project.

    Who Should Read This Policy

    Any Berkeley Lab employee responsible for executing and approving resource adjustments

    To Read the Full Policy, Go To:

    The POLICY tab on this wiki page

    Contact Information

    General Accounting Manager

    Title:

    Resource Adjustments

    Publication date:

    10/16/2017

    Effective date:

    10/16/2017


    D. Policy Statement

    D.1 General
    D.2 Guidelines
    D.3 Resource Adjustment Examples

    POLICY

    A. Purpose

    This policy defines the requirements and procedures for executing and approving resource adjustments at Lawrence Berkeley National Laboratory (Berkeley Lab).

    B. Persons Affected

    Any Berkeley Lab employee responsible for executing and approving resource adjustments.

    C. Exceptions

    Not applicable

    D. Policy

    D.1 General

    A resource adjustment is an online process to transfer either unburdened labor or unburdened non-labor costs from one Berkeley Lab project and activity to another, or between activities within the same project. All costs must be appropriately charged to the project and activity that benefited from those costs.

    • Non-labor adjustments are made in the Financial Management System (FMS) Project Costing Module
    • Labor adjustments are made in the Labor Distribution Reporting System (LDRS)
    • Personnel who execute resource adjustments in the systems (LDRS and FMS) must be an OCFO staff member.
    • The financial approver may be a senior individual within the division with financial oversight responsibility (e.g., Division Business Manager or Deputy of Operations). All financial approvers must complete the Resource Adjustment training module. Personnel who make cost adjustments above contractual limits for grants and cooperative agreements should refer to the policy WFO Agreements – Compensation above Salary Limits for additional guidance.

    An online Resource Adjustments Submission and Approval training module is available and is a prerequisite for any employee who executes resource adjustments.

    D.2 Criteria

    A resource adjustment must meet the following criteria:

    1. Timeliness: Resource adjustments made in either FMS or LDRS should be completed within three months of the original entry. Supporting documentation for resource adjustments that exceed three months to complete must include a specific explanation for exceeding this time period.
    2. Necessary and Appropriate: A resource adjustment is appropriate when costs are assessed as reasonable using prudent business judgment, are allocable to the project receiving benefit, and are not expressly unallowable per the Laboratory's Cost Allowability Policy. Examples of when a resource adjustment is necessary include:
      1. The original transaction was costed to an incorrect project or to a suspense/dropout project
      2. The original transaction was costed to an incorrect resource category
      3. The original transaction was costed to an intermediate cost objective and needs to be re-allocated to a final cost objective (e.g., distribution of recharges)
    3. Documentation: Appropriate justification and documentation are required for each resource adjustment. A specific rationale for each resource adjustment must be included.
      1. Documentation should:
        1. Adequately explain why an adjustment is necessary or appropriate, including (a) why the original entry was incorrect and (b) why it is more appropriate for the cost to reside on the project and activity the cost is being transferred to
        2. Display all projects and activities involved
        3. Clearly provide support for computations on each entry amount listed on the resource adjustment
      2. A single resource adjustment or LDRS key number is not to be used for multiple entries that require different rationales.
      3. Documentation for each resource adjustment must be uploaded as an attachment to FMS or the LDRS as the system of record.
      4. Inter-division resource adjustments between one or more divisions require concurrence from all divisions affected prior to initiating the adjustment. This concurrence must be attached as part of the backup documentation.
    4. Include Required Approvals
      1. Unburdened resource adjustments of (1) $5,000 or more that are made between projects and (2) $10,000 or more made between activities within a project require approval from a financial approver.
        1. The approver cannot also be the executor.
        2. The financial approver may be a senior individual within the division with financial oversight responsibility (e.g., Division Business Manager or Deputy of Operations).
        3. Division approver authority is limited to $750,000.
        4. Approval authority in excess of $750,000 is granted to OCFO Field Finance Managers.
        5. In certain instances (e.g., a project with significant earned value [EVMS] reporting requirements), division approval authority in excess of $750,000 may be granted with the approval of the department head for Field Finance.
        6. The approval limits of each division approver can be accessed through the OCFO Knowledge Base website.
      2. The approver must ensure the resource adjustment meets the criteria as stated in this policy, i.e., it is necessary, appropriate, timely, and the documentation is adequate.
      3. For labor adjustments, an automatic email alert indicating the details of the adjustment is sent to the employee whose time was adjusted and to that employee's supervisor. If the employee and supervisor agree with the adjustment, no action is necessary and the notification will serve as a negative concurrence. If the employee or supervisor does not agree with the adjustment, he or she should contact the resource analyst within five days to ensure that any necessary corrections are made. If there are questions about the appropriateness of the adjustment by the employee or his /her supervisor, the Controller's Office can assist in the determination. Labor adjustments over the approval thresholds identified above still require approval from a financial approver.

    D.3 Resource Adjustment Examples

    Necessary and Appropriate

    Inappropriate

    • Moving costs from a suspense or dropout project to the benefiting project
    • Changes in the use of goods/services
    • Moving costs from an intermediate cost objective to their final cost objective
    • Redistribution of shared costs
    • DOE-mandated adjustments
    • Transferring costs to a non-benefiting project
    • An adjustment that misclassifies costs in the receiving project, for example, charges to an inappropriate resource category
    • Transferring costs from an over-costed project to another unrelated project or funding source

    E. Roles and Responsibilities

    Role

    Responsibility

    Resource adjustment requester

    • Ensures that the request includes the necessary justification to support the adjustment per the policy
    • Once a resource adjustment is identified, makes a timely request to the resource analyst to process the resource adjustment

    Resource adjustment executor

    • Completes the Resource Adjustments Submission and Approval training module prior to preparing adjustments
    • Ensures that adjustment meets all Resource Adjustments policy guidelines
    • Executes adjustments in a timely manner when requested
    • Ensures that all supporting documentation is adequate and uploaded in a timely manner, including offline approvals where necessary

    Resource adjustment approver

    • Ensures that adjustment meets all Resource Adjustments policy criteria prior to approval
    • Approves adjustments in a timely manner

    F. Definitions/Acronyms

    Term

    Definition

    Final cost objective

    A cost objective that has allocated or assigned to it both direct and indirect costs and is one of the final accumulation points. Examples of final cost objectives are grants and contracts.

    FMS

    Financial Management System

    Intermediate cost objective

    A cost objective that is used to accumulate indirect costs or service-center costs that are subsequently allocated to one or more indirect cost pools and/or final cost objectives

    LDRS

    Labor Distribution Reporting System

    Project/activity ID

    An identification number used to accumulate, manage, and report costs associated with individually funded activities at the Laboratory

    Resource adjustment

    An online process to transfer either unburdened labor or unburdened non-labor costs from one Berkeley Lab project and activity to another

    G. Recordkeeping Requirements

    All documentation supporting the adjustment must be attached in FMS and LDRS as the system of record. All documentation is subject to audit and must be retained per Berkeley Lab archiving policies, the National Archives and Records Administration, and Contract 31.

    H. Implementing Documents

    Document Number

    Title

    Type

     

    Resource Adjustments Submission and Approval

    eLearning

     

    OCFO Knowledge Base website

     

    I. Contact Information

    General Accounting Manager

    J. Revision History

    Date

    Revision

    By whom

    Revision Description

    Section(s) affected

    Change Type

    1/2/2012

    1

    M. Mock

    Reformat for wiki

    All

    Minor

    12/15/2014

    1.1

    J. Wick

    Update approval thresholds, clarify guidance, update for F$M terminology changes

    All

    Minor

    9/27/2016

    1.2

    M. Beedle

    Clarify requirements, update approval limits

    D.2

    Minor

    10/16/2017

    1.3

    M. Beedle

    Clarify requirements

    All

    Minor

    DOCUMENT INFORMATION

    Title:

    Resource Adjustments

    Document number

    11.01.016.000

    Revision number

    1.3

    Publication date:

    10/16/2017

    Effective date:

    10/16/2017

    Next review date:

    11/30/2020

    Policy Area:

    Accounting

    RPM Section (home)

    Financial Management

    RPM Section (cross-reference)

    Section 11.42

    Functional Division

    OCFO

    Prior reference information (optional)

    RPM, Chapter 11, Section 11.42

    Source Requirements Documents

    DOE Order 534.1B, Accounting

    Other Driving Requirements

    Document Number

    Title

    Type

    11.07.001.000

    Financial Management - General Guidelines

    Policy

    11.07.004.000

    Cost Allowability

    Policy

    11.01.007.000

    WFO Agreements – Compensation above Salary Limits

    Policy

    Implementing Documents

    Document Number

    Title

    Type

     

    Resource Adjustments Submission and Approval

    eLearning

     

    OCFO Knowledge Base website

     


         

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