SUBJECT:  Electronic Non-Payroll Expense Transfer (ENPET) Refinement

The SPEAR ENPET Team has completed a refinement to the ENPET process that is used to assess the risk of an ENPET's timeliness. This refinement will go into effect on May 8, 2002. It was made to ensure that the risk assessment process remains current with the applicable federal policy conditions.

Currently, an ENPET is classified as a high risk if the original cost is being transferred to or from a federal fund and is over 120 days old. The assessment is based on Section V.B.7 in UC Business and Finance Bulletin (BFB) A-47, University Direct Costing Procedures at:
http://www.ucop.edu/ucophome/policies/bfb/a47.html

However, NIH policy stipulates the following:
"Cost transfers to NIH grants by grantees, or by consortium participants or contractors under grants, that represent corrections of clerical or bookkeeping errors should be accomplished within 90 days of when the error is discovered." This condition is cited in the following reference: Cost Transfers, Overruns, and Accelerated and Delayed Expenditures section of the NIH Grants Policy Statement (03/01).
http://grants1.nih.gov/grants/policy/nihgps_2001/index.htm

To accommodate the 90 day restriction for NIH awards, the following changes to the timeliness test have been made:

* The high risk classification is applied to the following transactions:
-- Costs over 90 days old that are transferred to or from NIH awards.
-- Costs over 120 days old that are transferred to or from non-NIH federal awards.
* The low risk classification now includes an alert requiring a justification for timeliness when transfers involve non-NIH federal awards and the costs are between 90 and 120 days old.
* No timeliness prompts are generated if an expense is transferred within 90 days of the transaction date.

If you have questions, you may contact:

Dan Gilbreath
Director - OPAFS
dgilbreath@ucsd.edu
Ext. 41110

Maria Cruz
Senior Admin. Analyst - OPAFS
mcruz@ucsd.edu
Ext. 45945

                                                Miles Bowler
                                                SPEAR Project Administrator