Office of Sponsored Programs Administration and Accounting John Hulvey

Office of Sponsored Programs
Administration and Accounting
I have a Grant, Now What??!
John Hulvey
What we will Cover Today:
 Understanding
the Basics
 Common Misconceptions
 What happens when an award is issued
 Roles of the Principal Investigator (PI)
 Avoiding problems
 What information is available to help
 Questions
Vocabulary
 Department
ID = Org. Code = Grant
number.
 Account # = Expenditure Code
 PI = Principal Investigator
 Facilities and Administration (F&A) =
“Overhead” or Indirect Costs (IDC)
 Matching = Cost Sharing
Common Misconceptions

All sponsored program awards are “Grants”


 PI


Also Cooperative Agreements and Contracts
This is important because different rules apply
has full control over funds
JMU Policy 2201 states “All funds received for
sponsored programs are under the fiscal
control of the assistant VP for Finance”
Some awards allow PI flexibility on how funds
are used, but don’t start with that assumption.
More Common Misconceptions
 JMU


receives ‘cash’ with an award
Most awards are issued on a ‘reimbursement
basis’
Sponsor can refuse to reimburse unallowable
expenses.
 Because
I have outlined expenditures in
the grant, travel authorizations and other
payment paperwork are not necessary.

WRONG
What happens when Sponsored
Programs Accounting receives an
award?

Establish Financial Framework
 5xxxxx Dept ID(s);
 Load the budget based on the budget
approved in the award;
 Mail “Award Binder”
 Note regulatory requirements
 Document Billing timing and
requirements
 Document Close-out date
What Rules Apply?
1) Award document

May include references to specific State or
Federal regulations
2) University policies
3) State regulations
4) Federal regulations
 Nothing can contradict Federal Law.
 Always follow JMU procedures
I have the grant, now
what’s going to happen!?
8
What is in the Award Binder?

Provides Grant #
(or Dept ID or Org #)
 Contents





Signature authorization
instructions
PS & eVA Access information
Small Purchase Charge Card
information
Internal budget form
Dividers



Includes your proposal &
award documents
Insert your financial printouts
& expenditure reconciliations
Quick find directories
What’s the Principal
Investigator’s (PI’s) Role?

Person of many hats


Researcher, Manager, Accountant.
Has DIRECT responsibility for Grant



Must complete responsibilities of grant
Must comply with all regulatory requirements
Must work within approved budget and timeline
 May
delegate workload
What Should I Know to Help a
PI Manage an Award?
1) What is the approved budget?
2) What is the project period?
 Both of those should be found in the
award binder.
 If the PI won’t provide these items, refuse
to help them and send them to me if they
have a problem with that.
3) Understand that the sponsor has
expectations for how the funds are used.
How do I Manage the Award?
 Follow
the approved budget and budget
justification.


NOTE: Some sponsors are not as strict as
others in terms of ‘following the budget’. You
may contact Sponsored Programs Accounting
to determine how much flexibility you have.
If you cannot tie an expenditure request to a
budget line item, don’t process the request.
How do I Manage the Award?
 Work




within the approved Project Period
Most sponsors tract the project period
This date restriction applies to expenses
BEFORE the award as well as after.
Most sponsors will allow “no-cost extensions”,
but often require the request 30-days prior to
the ending date.
Close-out periods do NOT allow project work
to continue.
• Time is for reporting and final processing.
How do I Manage the Subrecipients?
 VERY
CLOSELY! New federal regulations
(2 CFR 200.330 – 332) require subrecipient monitoring.
 Must ensure they are following their
approved budget and timeline
 Must ensure they are completing their
assigned work.
 Their invoices should not be paid without
adequate monitoring documented.
How are Changes Made?
 Some
(most?) projects require some
adjustment in the budget or timeline.
 Work with the Office of Sponsored
Programs to modify the budget or extend
the project
 Must receive sponsor’s permission in
advance of implementing any change
Cost Transfers
 Defined
as ‘moving an expense from one
Department ID to another’.


Use an Agency Transaction Voucher ATV
Transfer expenses INTO the grant
Department ID – cannot move ‘cash’ OUT.
 Should
only be used in limited situations
Cost Transfers – Continued
 Cost
Transfers should only be used for
Personnel expenses or to correct errors
 Sufficient documentation to track the
expense detail will be required
 Cost Transfers should be processed within
45 days from the time of the original
expense posting.
What Records Must be Kept?

All expenditure documentation


Including monthly reconciliation to 5xxxxx DeptID
Personnel and Non-Personnel expenses must be
tracked.
Collect “matching” data (cost share)
Document time employees worked on the
project. (Effort Reporting)
 Document technical work from the project.


Record Retention
 Financial
records from the beginning of the
award need to be maintained up to five (5)
years FROM THE CLOSEOUT OF THE
AWARD. (Binder might help with this).

For multi-year awards, this could mean that
financial records would be 7 to 10 years old.
Example: Award ends 6/30/2015; final reports submitted 9/15/2015;
record retention period ends 9/15/2020. If award began 7/1/2013, those
transactions happened over 7 years earlier.

Some awards allow a 3-year period; if in
doubt, use 5 years.
How do I Avoid Problems
Administering an Award?
 FOLLOW
THE AWARD BUDGET!
 Follow JMU Fin Policies and Procedures
 Reconcile the DeptID Monthly
 Limit Cost Transfers (ATV’s)

If required, process promptly
 Complete
work within the Project
Period (may cross fiscal years)


Request budget revisions or no-cost
extensions early, as necessary
90-day ‘close out period’ for paperwork only
Close-out
 Can
be considered the “fiscal year end” for
the award
 Generally a cause for rush and panic, and
it should not be.
 Make sure requests to “spend out” the
budget are justified to the award and
calculated correctly


Calculate remaining balance on PARs
Remember that FICA tax is added to PAR for
salary amounts.
What Resources Exist to Assist in
Sponsored Project Administration?
 Financial



Reports:
nVision “C” Report – “Life to Date” Totals with
Current Month Details
nVision “D” Report – Life to Date totals with
Details by Individual line item (by month).
Monthly Detail Report
nVision Query (by fiscal year)
 Monthly reconciliation is a requirement

Sample “C” Report
JAMES MADIS ON UNIVERS ITY
S UMMARY FINANCIAL REPORT
For the Period Ending: 09-30-2015
For Department 5xxxxx "Award Description"
ACCOUNT
DES CRIPTION
ORIGINAL
BUDGET
REVENUE/
REVIS ED
EXPENDITURE
REVENUE/
BUDGET
CURRENT
EXPENDITURE
LIFE-TO-DATE
MONTH
LIFE-TO-DATE
Run Date: 9/28/2015
Report ID: 550598C
BUDGET
AVAILABLE
010000
ALLREV
xxxxx
PRIVATE GRANTS
ALL REVENUE ACCOUNTS
TOTAL REVENUES
0.00
0.00
0.00
0.00
(30,000.00)
(30,000.00)
0.00
0.00
0.00
(22,470.00)
0.00
(22,470.00)
22,470.00
(30,000.00)
(7,530.00)
111300
114400
PS
xxxxx
SOC SECURITY-WAGE
WAGES, STUDENT
PERSONAL SERVICE EXPENSES
S UBTOTAL PS EXPENS ES
0.00
0.00
0.00
0.00
0.00
0.00
19,040.40
19,040.40
0.00
0.00
0.00
0.00
1,040.40
18,000.00
0.00
19,040.40
(1,040.40)
(18,000.00)
19,040.40
0.00
xxxxx
S UBTOTAL PS REC RECOVERIES
TOTAL PERS ONAL S ERVICES
121900
INBOUND FREIGHT
122700
134100
154110
NPS
xxxxx
EM PL TRAIN-TRANSP,LODG,M LS&INC
LABORATORY SUPPL
OVERHEAD
NON-PERSONAL SERVICE EXPENSE
S UBTOTAL NPS EXPENS ES
xxxxx
S UBTOTAL NPS REC RECOVERIES
xxxxx
0.00
0.00
19,040.40
0.00
19,040.40
0.00
0.00
0.00
0.00
231.39
(231.39)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
10,956.82
10,956.82
0.00
0.00
468.28
0.00
468.28
2,054.97
4,741.38
3,910.22
0.00
10,937.96
(2,054.97)
(4,741.38)
(3,910.22)
10,956.82
18.86
0.00
TOTAL NON-PERS ONAL S ERVICES
0.00
10,956.82
468.28
10,937.96
18.86
TOTAL EXPENS ES AND RECOVERIES
0.00
29,997.22
468.28
29,978.36
18.86
Sample “D” Report - Monthly columns with activity by fiscal year:
“2015-4” = October 2014; “2015-11” = May 2015
JAMES MADISON UNIVERSITY
SUMMARY FINANCIAL REPORT
For the Period Ending: 09-30-2015
For Department 5xxxxx "Award Title"
ACCOUNT
DESCRIPTION
ORIGINAL
BUDGET
REVENUE/
REVISED
EXPENDITURE
BUDGET
CURRENT
LIFE-TO-DATE
MONTH
ACCOUNTING PERIOD
REVENUE/
EXPENDITURE
LIFE-TO-DATE
2015-4
2015-5
2015-10
2015-11
2015-12
2016-1
2016-2
BUDGET
AVAILABLE
2016-3
010000
ALLREV
xxxxx
PRIVATE GRANTS
ALL REVENUE ACCOUNTS
TOTAL REVENUES
0.00
0.00
0.00
0.00
(30,000.00)
(30,000.00)
0.00
0.00
0.00
0.00
0.00
0.00
(22,470.00)
0.00
(22,470.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(22,470.00)
0.00
(22,470.00)
22,470.00
(30,000.00)
(7,530.00)
111300
114400
PS
xxxxx
SOC SECURITY-WAGE
WAGES, STUDENT
PERSONAL SERVICE EXPENSES
SUBTOTAL PS EXPENSES
0.00
0.00
0.00
0.00
0.00
0.00
19,040.40
19,040.40
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,000.00
0.00
1,000.00
0.00
3,400.00
0.00
3,400.00
818.55
10,700.00
0.00
11,518.55
221.85
2,900.00
0.00
3,121.85
0.00
0.00
0.00
0.00
1,040.40
18,000.00
0.00
19,040.40
(1,040.40)
(18,000.00)
19,040.40
0.00
xxxxx
SUBTOTAL PSREC RECOVERIES
0.00
TOTAL PERSONAL SERVICES
0.00
19,040.40
0.00
0.00
0.00
0.00
1,000.00
3,400.00
11,518.55
3,121.85
0.00
19,040.40
0.00
121900
INBOUND FREIGHT
0.00
0.00
0.00
205.99
0.00
0.00
0.00
0.00
25.40
0.00
0.00
231.39
(231.39)
122700
134100
154110
NPS
xxxxx
EMPL TRAIN-TRANSP,LODG,MLS&INC
LABORATORY SUPPL
OVERHEAD
NON-PERSONAL SERVICE EXPENSE
SUBTOTAL NPS EXPENSES
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
10,956.82
10,956.82
0.00
0.00
468.28
0.00
468.28
0.00
4,141.08
0.00
0.00
4,347.07
0.00
0.00
652.06
0.00
652.06
1,173.27
0.00
0.00
0.00
1,173.27
0.00
0.00
175.99
0.00
175.99
0.00
0.00
150.00
0.00
150.00
881.70
600.30
510.00
0.00
2,017.40
0.00
0.00
1,953.89
0.00
1,953.89
0.00
0.00
468.28
0.00
468.28
2,054.97
4,741.38
3,910.22
0.00
10,937.96
(2,054.97)
(4,741.38)
(3,910.22)
10,956.82
18.86
xxxxx
SUBTOTAL NPSREC RECOVERIES
xxxxx
0.00
TOTAL NON-PERSONAL SERVICES
0.00
10,956.82
468.28
4,347.07
652.06
1,173.27
175.99
150.00
2,017.40
1,953.89
468.28
10,937.96
18.86
TOTAL EXPENSES AND RECOVERIES
0.00
29,997.22
468.28
4,347.07
652.06
1,173.27
1,175.99
3,550.00
13,535.95
5,075.74
468.28
29,978.36
18.86
Where to Get More Information?
(cont’d)
 Contact

Sponsored Programs Accounting
John Hulvey
• 83725

Brenda Wilburn
• 82314

[email protected]
Donna Crumpton
• 88099

[email protected]
[email protected]
Kyra Shiflet
• 87108
[email protected]
Questions?