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UNIVERSITY OF TENNESSEE SYSTEM POLICY
FISCAL

POLICY NO: FI0520 SUBJECT:  INTERNAL TRANSFERS  
EFFECTIVE: 05/01/2003  

TOPICS:
Use Of Internal Transfers Related Policies
Types Of Internal Transfers Procedures
Special Requirements Contacts
Restrictions

OBJECTIVE:

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To provide guidelines on the use of internal transfers for conducting business between university departments as payment for goods and services.


POLICY:

Use of Internal Transfers[top]

  1. Internal transfers are used to transfer funds in conducting interdepartmental business. The internal transfer authorizes charges to be made to department cost center/WBS elements for items such as goods and services from university service departments (e.g., campus bookstores, office supply stores), for equipment and supply transfers between departments, sharing costs among cost centers, and correcting erroneous entries in deposits and invoices, among other uses.

Types of Internal Transfers[top]

  1. Two types of internal transfers are used, as follows:

    1. An internal transfer (document type ZD) is completed by the service or initiating department and sent electronically to the receiving department through the university's accounting system. This transaction requires the electronic approval of all departments involved before it is posted to the accounting system. Such transactions include payment for new employees' moving expenses, equipment transfers between departments, sharing costs among cost centers, and correcting errors in deposits and invoices.

    2. An internal transfer (document type ZE) is electronically charged to a cost center/WBS element and does not require approval through the accounting system. Tentative approval for these transactions occurs in advance when the department orders goods or services. Final approval of these transactions occurs passively when a department does not object to the charges appearing on their cost center/WBS element ledgers. Such transactions may include direct billings for bookstore purchases, telephone services, postage charges, and computing services in which departments receive supporting information separately.

    For more details, see FISCAL POLICY FI0425 on campus bookstore purchases, FISCAL POLICY FI0450 on paying moving expenses, and FISCAL POLICY FI0605 on equipment.

Special Requirements[top]

  1. The internal transfer should include a description of the goods or services provided and should clearly describe the reason for the transfer. Also, different types of costs (general ledger accounts) should be shown as separate transactions, not as an aggregated cost on one internal transfer.

  2. Any supporting documentation generated by the department initiating the transfer should be retained six years for audit purposes.

Restrictions[top]

  1. The internal transfer may not be used for the following types of transactions:

    • Budget adjustments
    • Fund balance adjustments
    • Funding given by one department to another

RELATED POLICIES
:
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PROCEDURES
:
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Knoxville:  http://web.utk.edu/~dfinance/fiscal-policy.shtml
Health Science Center:  http://www.uthsc.edu/policies/w932_document_list.php?app=FSC
Space Institute:   
Chattanooga:   
Martin:  http://www.utm.edu/departments/finadmin/procedures.php
FOR MORE INFORMATION
:
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  Ron Maples  (865) 974-2493  maples00@utk.edu