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Resource Adjustments

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    Title:

    Resource Adjustments

    Publication date:

    1/21/2021

    Effective date:

    1/1/2021

    BRIEF

    Policy Summary

    This policy defines the requirements and procedures for preparing and approving resource adjustments at Lawrence Berkeley National Laboratory (Berkeley Lab). A resource adjustment is a process to transfer either labor or non-labor costs from one project and activity to another, or between activities within the same project.

    Who Should Read This Policy

    Any Berkeley Lab employee responsible for preparing 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:

    1/21/2021

    Effective date:

    1/1/2021

    D. Policy Statement

    D.1 General

    D.2 Criteria

    D.3 Resource Adjustment Examples

    Policy

    A. Purpose

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

    B. Persons Affected

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

    C. Exceptions

    Not applicable

    D. Policy

    D.1 General

    All costs must be appropriately charged to the project and activity that benefited from those costs. A resource adjustment is a process to transfer either labor or non-labor costs from one project and activity to another, or between activities within the same project.
    Resource adjustments are made in the Financial Management System (FMS) Project Costing Module.

    • Personnel who prepare resource adjustments in the FMS must be an Office of Chief Financial Officer (OCFO) staff member.
    • The resource adjustment approver may be an authorized individual within the division with financial oversight responsibility (e.g., Principal Resource Analyst, Field Finance Manager, Division Business Manager). All resource adjustment approvers must complete the Resource Adjustment training.
    • Personnel who make resource adjustments above contractual limits for grants and cooperative agreements should refer to the policy Sponsored Research Agreements — Compensation Above Salary Limits for additional guidance.

    An online Resource Adjustments Submission and Approval training is available and is a prerequisite for any employee who prepares and/or approves resource adjustments.

    D.2 Criteria

    A resource adjustment must meet the following criteria:

    1. Timeliness: Resource adjustments 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, incorrect activity, or a suspense/dropout project.
      2. The original transaction was costed to an incorrect resource type and 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., redistribution of shared costs).
    3. Documentation: Appropriate justification and documentation are required for each resource adjustment.
      1. A single resource adjustment is not to be used for multiple entries that require different rationales. Each resource adjustment should have a specific and single rationale.
      2. 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 where it is being transferred to.
        2. Provide all projects and activities involved.
        3. Clearly provide support if any computations used to derive any amounts listed on the resource adjustment.
      3. Documentation for each resource adjustment must be uploaded as an attachment to the FMS as the system of record.
      4. Interdivision 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. 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 resource adjustment approver.
        1. The approver cannot also be the preparer.
        2. The approver may be an authorized individual within the division with financial oversight responsibility (e.g., Principal Resource Analyst, Field Finance Manager, or Division Business Manager).
        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 [Earned Value Management System, 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. List of approvers and their limits 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, and timely, and the documentation is adequate.
    5. 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 resource adjustment 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
    • 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 adjustment preparer to process the resource adjustment.

    Resource adjustment preparer

    • Completes the Resource Adjustments Submission and Approval training prior to preparing adjustments.
    • Ensures that adjustment meets all Resource Adjustments policy guidelines.
    • Executes / prepares adjustments in a timely manner when requested.
    • Ensures that all supporting documentation is adequate and uploaded.

    Resource adjustment approver

    F. Definitions/Acronyms

    Term

    Definition

    EVMS

    Earned Value Management System

    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

    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

    Project/activity ID

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

    Resource adjustment

    A process to transfer either labor or non-labor costs from one project and activity to another, or between activities within the same project

    Resource category

    A type of cost grouped into similar categories. Examples include contract, student, scientific, and administrative for labor; foreign and domestic for travel; and goods and stores issues for procurements.

    Resource type

    A type of cost grouped into similar types (a higher level grouping). Examples include labor, travel, procurements, and services.

    G. Recordkeeping Requirements

    All documentation supporting the adjustment must be attached in the FMS 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

     Website information

    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

    1/13/2021

    1.4

    M. Beedle

    Clarify requirements, removed references to LDRS and manual approvals due to system changes and enhancements

    All

    Minor

    DOCUMENT INFORMATION

    Title:

    Resource Adjustments

    Document number

    11.01.016.000

    Revision number

    1.4

    Publication date:

    1/21/2021

    Effective date:

    1/1/2021

    Next review date:

    12/31/2023

    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 Core Principals

    Policy

    11.07.004.000

    Cost Allowability

    Policy

    11.01.007.000

    Sponsored Research Agreements- Compensation above Salary Limits

    Policy

    Implementing Documents

    Document Number

    Title

    Type


    Resource Adjustments Submission and Approval

    eLearning


    OCFO Knowledge Base website

     Website information

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