Accounting for Surplus Lab Supplies

[Kristin]

Hi all, 

This question came across my desk and I would like to get some feedback on how to respond. I feel it should remain on non-sponsored, but wanted to get other CA's opinions.

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Are there any guidelines, policies, job aids about using surplus lab supplies and how to account for it? 

If lab supply is ordered on project A but not received on time, it is moved to a non sponsored charfield string. It becomes a surplus supply. Can this be later used on different project B and moved using JE? I know transfers from non sponsored to sponsored are not desired transactions. If this is not ordered or received during the project B period, and may have been sitting in a lab for more than 2 months, is this allowed? 

[Suzanne Blodgett]

Hi Kristin,

I would have some follow up questions. When it says that supplies are ordered on project A but not received on time, does that mean that the project ends before we actually receive the order? Orders purchased near the end of a project (within 60 days) should have extra consideration to make sure that the supplies will be able to be used and to benefit the project they are charged to.

If a cost transfer was possible onto project B to more accurately account for how the supplies are being used, you would want to make sure that the expense met all requirements as if it was being originally ordered on project B. Was the expense occurred within the project period for project B, or if not, would it be allowable as a pre-award cost? Is the supply budgeted for in project B and is it eligible as a direct cost to the project, not just a general supply that is considered an indirect cost (paper towels, pens, etc.)?

Suzanne

[Nicole Pilman]

Hi Kristin,

I agree with Suzanne's assessment that care should be taken so that supplies ordered at the end of an award can actually be consumed by that award before its end date.  In those rare instances where additional supplies are left over, the cost should be moved to a non sponsored chart string.  If another project can use those supplies, then the cost can be moved to that project.  Note that per the applicable cost transfer procedure under the Processing Accounting Transactions policy, journals must be processed within 60 days of the original transaction date and no charges older than 12 months can be moved onto a sponsored project.  Therefore, a good general rule of thumb for the window to move lab supplies from one project to another would be within 60 days of the original purchase date of those supplies.

Thanks,

 Nicole