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

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 FMS must be an Office of Chief Financial Officer (OCFO) employee.
• The resource adjustment approver must be an authorized employee with divisional financial oversight responsibility (e.g., Principal Resource Analyst, Field Finance Manager, Division Business Manager, see Financial Approval Policy). All resource adjustment approvers must complete the Resource Adjustment training.
• Personnel who need to make resource adjustments for labor costs 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 Field Finance Department Head. 
      6. List of approvers and their limits can be accessed through the OCFO Knowledge Base website.
5. 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.
6. 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 an automatic 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

E. Roles and Responsibilities

F. Definitions/Acronyms

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

I. Contact Information

General Accounting Manager

J. Revision History

DOCUMENT INFORMATION

Source Requirements Documents

Financial Management Core Principals policy

Other Driving Requirements