# Presentation: 290626

## Michele MockFinancial Policy and TrainingJanuary 12, 2006

**Resource Adjustment Review**

## Agenda

**Policy changes**
**Timeliness**
**Documentation**
**Justification**

## Labor adjustment = Resource adjustment
Same rules apply
Documentation for labor adjustment includes
Corrected timesheets (employee signed and supervisor approved)
Supporting rationale
Labor Resource Adjustment Report

**Labor adjustment** = **Resource adjustment**
- Same rules apply
- Documentation for labor adjustment includes
- Corrected timesheets (employee signed and supervisor approved)
- Supporting rationale
- Labor Resource Adjustment Report

## Determination of $5K approval threshold

Total of all debits or credits of costs transferred
For labor, include all applicable pay periods

Resource adjustment training – prerequisite for preparers

Include preparer’s name/phone

- Determination of $5K approval threshold
- Total of all debits or credits of costs transferred
- For labor, include all applicable pay periods
- Resource adjustment training – *prerequisite* for preparers
- Include preparer’s name/phone

## Resource adjustments to be completed no later than 90 days after original entry

- Resource adjustments to be completed no later than **90 days** after original entry

**90**

## Documentation

- Record Retention = **3 years**
- Per Lab archiving policies, National Archives and Records Administration, and DOE Contract 31
- Any Resource adjustment involving more than one Division requires *notification* to all Divisions impacted

## 
If the resource adjustment meets or exceeds the approval threshold ($5K), approval must be obtained from designated approvers in all Divisions impacted prior to entering adjustment as valid in FMS.

Email confirmation to authorized requestor is acceptable as appropriate documentation

All documentation, including approvals, maintained by the originating Division

- If the resource adjustment meets or exceeds the approval threshold ($5K), approval must be obtained from designated approvers in **all Divisions impacted** prior to entering adjustment as _*valid *_in FMS.
- Email confirmation to authorized requestor is acceptable as appropriate documentation
- All documentation, including approvals, maintained by the *originating Division*

## Justification

- A Resource Adjustment is justified and appropriate when costs are:
**Reasonable **(prudent business judgment)
**Allocable** to the receiving project (project receives benefit)
**Allowable per Contract 31 **(via Federal Acquisition Regulations – FAR)

## Inappropriate Justifications

- Moving the *unallowable* cost from xxxxxx project to the appropriate project xxxxxx
- Transferring costs from *overrun* project to a project with funding (*unrelated project/funding source*). Example: WFO project to DOE project
- Project manager did not know who to contact to change project ID on telephone services
- Budget Office told me to do this

## Much Better!

- Transfer travel costs to appropriate benefiting project
- Dr. XXXX erroneously charged xxxxxx for her Dec trip. Her time card indicates that xxxxxx is the benefiting project.
- Reallocation of Sep 05 FedEx charges inadvertently charged to the Division dropout account
- The air bill was missing a project ID (or had an invalid project ID listed). This adjustment transfers costs to the appropriate benefiting project.