ADMINISTRATIVE PROCEDURE

Guidelines for Approvals and Routing of Financial Transactions

Guidelines:

Approvers are a key internal control to ensure financial transactions are correctly recorded.  Approvers must review the transaction for accuracy and deny transactions that are incorrect.  By approving a transaction, the approver is certifying that they have reviewed the transaction for accuracy, completeness, and compliance with external requirements and University policies. Reviews must include:

  • the purpose of the transaction is in compliance with University policy
  • the expense is allowable and appropriate
  • if applicable, the recipient of the payment is correct
  • all chartfield string values being used are correct
  • the amount is correct
  • the correct accounting period is used

Approval must be documented if it is not within the PeopleSoft Enterprise System.  Approval documentation may include any or all of the following:

  • Email approval from approver
  • Written signature from approver
  • Written instructions from approver with signature

Note:  approvals cannot be an electronic signature that has been copied and pasted into a document. 

Sponsored Transactions

Sponsored transactions require different levels of approval depending on the assigned risk level.  See the current Cost Transfer Approval matrix to determine the appropriate approval requirements.  This grid identifies those documents requiring certified approval and/or SPA review and approval. 

Different types of approvals are required by people involved in the process.  Principal investigators (PI) and other research personnel are responsible for the scientific need and allocability of transactions.  Administrative approvers are responsible for assuring the transaction is in compliance with University, agency and governmental regulations regarding the management of the project. 

The following grid provides detailed descriptions of what the principal investigator and financial/administrative approvals signify.

 

PI Approval

Financial/Administrative Approval

Allowable

Directly benefits the project scientifically

Travel expenses relate to employees contributing effort to the project

Allowable as a direct charge based on the University’s direct/indirect policy

Allowable based on sponsor’s project terms

Justifications are adequate and compliant with University policy

Allocable

The good or service will be used for the project within the budget period

If applicable, allocation is based on use on the project

Cost can be allocated easily with a high degree of accuracy

Reasonable

The purchase is appropriate based on project need

Appropriate purchasing procedures are followed

Funding is available

The purchase fits within the planned spending for the project

Spending rate is not excessive

The purchase will not overspend the available budget for the project

Accurate

Assign cost to proper project

Review has ensured:

  • Correct transaction is used
  • all chartfield string values being used are correct
  • the amount is correct
  • the correct accounting period is used

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