UNRESTRICTED INDEXES (FOPALs) INTRODUCTION

AccountingTreatment of Current Indexes (FOPALs)

The following subsections refer to areas where special treatment of unrestricted monies may be required due to the restrictions under which the University accepts those monies.

Transfer of Non-Payroll Expense for Unrestricted Indexes (FOPALs)
The most common need for a transfer of non-payroll expense is to correct an error. Requests for transfers for unrestricted Indexes (FOPALs) should be submitted to the appropriate fiscal monitor in AFR. The request, generally in the form of a journal entry, should include the following supporting documentation:

• A copy of the FBM091 where the original transaction occurred.
  
  
  NOTE: if the transfer also affects a restricted Index (FOPAL), a copy of the requisition is requested along with the FBM091 so that the start or end date can be verified with the date the goods/services were received and the description of the goods or services can be verified against the restrictions on the Index (FOPAL).

• The reason for the transfer.
• Approval of the Department Head and Dean or Director (the same approvals as needed on requisitions).

It is the responsibility of the individual requesting an expenditure transfer to verify that the transfer has been properly posted.

Prior Year Corrections
Prior year corrections will only be processed for material amounts, as a general rule. Research centers/departments should contact their fiscal monitor regarding all prior year corrections.

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Current Indexes (FOPALs) Account Maintenance - Unrestricted

To allow purchase requisition processing, unrestricted Indexes (FOPALs) will require a budget in support of the anticipated expenditures.

On continuing Instruction and General Indexes (FOPALs), budgets are entered by the Budget Office annually. New Instruction and General Indexes (FOPALs) requests should be submitted to AFR.

For continuing Indexes (FOPALs) that are not funded by Instruction and General monies, departments must send requests to the Budget Office to roll forward budgets equal to unspent monies at year end. New Index (FOPAL) requests should include an estimate of anticipated revenue and expense when submitted to the fiscal monitor in the AFR Office.

Each organizational unit will have two unrestricted Indexes (FOPALs) established: one for cost overruns and one for pending grants/contracts if needed. Only those grants/contracts with required direct cost sharing will have individual cost-sharing Indexes (FOPALs).

Any deficit balances in cost overrun and pending grants/contracts Indexes (FOPALs) must be covered from unrestricted sources prior to the end of each fiscal year. A transfer of unrestricted monies to the cost overrun Index (FOPAL) from within the organizational unit may be needed.

The dean or director is responsible for identifying the source of monies to cover cost overruns at the time of the overrun. The fiscal monitor will be responsible for necessary transfers of cost overruns and unapproved or pending expenses between unrestricted and restricted Indexes (FOPALs).

Payroll Expenses - Unrestricted
If the Indexes (FOPALs) to which an employee's pay has been charged must be corrected after-the-fact, a Human Resources (HR) Labor Redistribution form (LRF) should be processed within 90 days of the pay date. This period should allow time for review of Indexes (FOPALs) and prepare for certification of the employee's level of effort, on an Effort Report.

Index (FOPAL) Changes More Than 90 Days From Pay Date - Index (FOPAL) change transactions more than 90 days from the pay date will be reviewed by the responsible Fiscal Monitor to determine if there is an external contractual reason why the Index (FOPAL) change must be processed. If approved, the Index (FOPAL) change will be processed by Journal Voucher using object code 769600 to correctly reflect the overrun in FR. No other Index (FOPAL) change transactions greater than 90 days old can be processed because of prior certification on the Effort Report of the employee's funding source and level of effort, which occurs on a semi-annual basis.

NOTE: Please be aware that if an employee's salary has not been charged to a restricted sponsored project Index (FOPAL) within 90 days of the date of pay, the University will be unable to bill the sponsoring agency for the expense, either as a direct cost or through the Facilities and Administration Rate.

Payroll expense transfers are very difficult to justify to auditors and sponsors; the principal investigator (PI) and/or department head should keep all Index (FOPAL) labor distributions current with work assignments.

Acceptable Changes
Changes of distribution of workload should not normally be made for any prior pay period. In the following exceptional situations, however, retroactive changes may be warranted:

• When necessary to correct clerical and data entry errors
• When subsequent information is received indicating an incorrect original entry
• When required to properly charge non-Federal funds for costs incurred in connection with an award that fails to materialize
• When a change unrelated to sponsored agreements applies to a closed fiscal year

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Guidelines for Expenditure of Current Indexes (FOPALs) - Unrestricted

Unrestricted Indexes (FOPALs) should be spent in accordance with University Policies and Procedures. State Appropriated Indexes (FOPALs) are restricted to instruction and general expenses. Unrestricted sources for Internal Service Indexes (FOPALs) should be spent in accordance with the purpose of the internal service being performed. Unrestricted Indirect Cost Recovery (Overhead) Indexes (FOPALs) should normally be limited to research or public service type of expenditures.

Signature Approval on Current Indexes (FOPALs) - Unrestricted
University policy requires that the department head and dean or director responsible for any given Index (FOPAL) approve all Purchase Requisitions, Direct Pay Requests, and Reimbursement Vouchers charging that Index (FOPAL) number. This authority may be delegated to other individuals reporting directly to the department head and the dean or director, respectively, with the approval of the superior of the employee electing to delegate signature authority to subordinates. These policies relate to official University documents.

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