Non-Financial Award Procedures

Non-Financial Award Procedures

  1. Charging Recognition Expenses
  2. Funding Recognition Expenses
  3. HR Oversight of Recognition Spending
  4. Recognition Cost Object Review and Control
  5. For credit card approvers and all persons making Recognition purchases
  6. For Supervisors of the Recognition Cost Objects

 

  1. Charging Recognition Expenses. All Recognition expenses should be charged directly to the Recognition Cost Object in each Recognition org area's (school, department, lab or center) Profit Center. Decentralized units (e.g., School of Engineering, Provost/VP for Research) have separate Cost Objects for each DLC with its own Appreciation Award program.
    1. An explanation for a Recognition charge must be entered on RFPs, Credit Card approvals, JVs, and Reqs/POs. This becomes the official back-up to explain why the charge is appropriate as a Recognition expense (see Documenting Recognition Charges).
    2. The org unit’s Recognition Cost Object is a pass-through Cost Object and the balance of the Cost Object must be $0.00 at the end of fiscal year.
    3. If the Cost Object is not zeroed out, it will become part of the overall budget variance for the department.
    4. Any overall negative budget variances for academic departments must be funded by the department per normal operating procedure at the Institute. Administrative areas are expected to come in on budget.
  2. Funding Recognition Expenses
    1. On a monthly basis, HR creates an off-set entry to credit each Recognition org unit’s Cost Object for appropriate expenses and debits the corresponding Cost Object in HR’s Profit Center.
    2. HR credits Cost Objects in lump sums for an entire month of expenses in the following month.
  3. HR Oversight of Recognition Spending
    1. Monthly, HR spot checks charges in each Cost Object for the Recognition explanation.
    2. The Recognition explanation must be entered on RFPs, Credit Card approvals, JVs, and Reqs/POs. This becomes the official back-up to explain why the charge is appropriate as a Recognition expense (see Documenting R&R Charges).
    3. If charges are not properly documented or HR questions the appropriateness of a charge, the org unit will be asked to send an email with an explanation.
    4. Charges will not be funded until acceptable documentation has been provided.
    5. If HR deems a charge inappropriate for Recognition funding, the org unit will be asked to remove the charge from their Recognition Cost Object and charge it to another unrestricted cost object.
    6. The org unit’s Recognition Cost Object must balance at $0.00 at the close of the fiscal year.

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  4. Recognition Cost Object Review and Control
    1. The org unit Key Contact or other designee is responsible for monthly review and control of the Recognition Cost Object.
    2. The org unit Key Contact or other designee is responsible for archiving back-up documentation for the Recognition Cost Object.

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  5. For credit card approvers and all persons making Recognition purchases
    1. All credit card approvers need to be informed that Recognition charges must include the Recognition explanation (see Documenting Recognition Charges).
    2. All persons charging expenses to the Recognition Cost Object need to use the correct GL Accounts at the time of purchase (see list of Common Recognition GL Accounts).

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  6. For supervisors of the Recognition Cost Objects
    1. The Recognition Cost Object supervisor will give the appropriate people authorization to charge expenses to the org unit’s Recognition Cost Object.
    2. Credit card verifiers need to be given authorization to post on the Recognition Cost Object.