I have the grant, now what!? Presented by John Hulvey, Director

I have the grant, now
what!?
Presented by
John Hulvey, Director
Sponsored Programs
Admin & Accounting
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Introduction
This presentation covers:
– Understanding the basics
• Common Misconceptions
– What’s the PI’s role?
– What’s Sponsored Programs
Accounting’s Role?
– Expenditure Compliance
– Reading PS Financial Reports
– “Gotcha’s”! & Summary
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Vocabulary
• Department ID = Org. Code = Grant
Number
• Account # = Expenditure Code
• PI = Principal Investigator
• Facilities and Administration
(F&A) (indirect costs or “overhead)
• Finance System = General Ledger
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Common Misconceptions
• All sponsored program awards are
“grants.”
– Also Contracts and Cooperative
Agreements
• That funds are totally controlled by
the PI.
– JMU Policy 2201 states “All funds
received for sponsored programs are
under the fiscal control of the assistant
vice president for finance.”
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Common Misconceptions
• That we can change the scope of
work or use of funds without the
sponsor’s permission.
– Must be good stewards of the funds; they
were given for a purpose.
• There is a ‘pool of money’ with an
award.
– Most cash is received on an expenditure
reimbursement basis.
– Sponsor may refuse to reimbursement
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unallowable expenses
Common Misconceptions
• Standard JMU rules don’t
apply to these funds.
– Very wrong; in fact, control over
expenditures may be more strict.
– Everyone wants to add a
regulation!
• Specific grant instructions; JMU policy
(2201 states awards must follow JMU
procedures); state regulations; federal
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regulations; federal law.
Common Misconceptions:
The rules don’t apply (continued)
• Grants & Coop Agreements are
governed by OMB Circular A-21;
Contracts by FAR clauses (Federal
Acquisition Regulation).
• Costing standards and allowable costs
• All awards governed by A-110
• Administrative requirements
• Federal Agencies “codify” FAR and A110 independently
• Code of Federal Regulations (CFR)
• Regulations apply to federal agency, applied 7
to award recipients through CFR
What’s the PI’s Role?
• Person of many hats
– Researcher, Manager, Accountant.
• Has DIRECT responsibility for award
– Must complete responsibilities of award
– Must work within approved budget
– Must ensure “Matching” is met and
“Effort” is applied
– Maintain Adequate Documentation
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– May delegate workload
What’s Sponsored Programs
Accounting’s Role?
• Establish Financial Framework
– Department ID(s); Budgets
• Maintain ‘auditable’ file
• Post-award compliance officers
for the University
• Billing/Collection from Sponsors
• Prepare Financial Reports
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• Timely close-out of grant
Purchasing Rules
• Same for Grants as other
University funds
– (Unless stated in Award)
• May actually be more
restrictive
– Must relate to grant work &
budget.
– Must comply with A-21 or
FAR regulations
– No Membership fees, subscriptions
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Purchasing Rules
• EVa must be used
• SP Cards must be used &
reconciled
• Forms:
–
–
–
–
–
Accounting Voucher
Travel Authorization
Travel Reimbursement Voucher
Agency Transfer Voucher (ATV)
Personnel Action Request (PAR)
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Procurement Rules
• Required for all purchases of
goods and services $5000 or
more.
• Must use Va State Contracts
• Some procurements can be built
into the Sponsored Program as a
Sub-agreement
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Expenditures (Travel
and Business Meals)
• This is one area where
otherwise rational people loose
their minds with Sponsored
awards!!
• Simply stated: VA State (JMU)
rules apply (Unless specifically addressed in the
award)
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Expenditures (Travel
and Business Meals)
• Common Unallowable Expenses:
– A business meal with no non-JMU
employee attending (this is a “meeting”,
not a “business meal”)
– ‘Pizza parties’ for student employees
– Staying at over-priced hotels or eating at
over-priced restaurants.
– Charging a rental vehicle when cab fare
to and from the airport was reasonable.
• This is particularly obvious when the family
accompanies the traveler to the conference.
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Additional Travel
Regulations
• Foreign flights (Coach Class)
– Must be on US flag bearer when using
Federal dollars!
• Cost is not a factor; however, there are some
exceptions related to service destinations or
arrival/departure times
• Use a JMU authorized Travel Agency and
indicate “Fly America Act” must be followed
– JMU approval still needed for Travel
Authorizations
• Not automatic with the sponsored program
award
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Personnel
Considerations
• Employee vs. Contractor
– Has bearing on taxes withheld
– What ‘control’ exists over person?
• See 20 questions on Payroll Website
• If in doubt, contact Payroll
• Must follow immigration rules to
hire non-US Citizen on Award
– Contact office of international
programs with questions
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F&A
(Facilities and Administration)
• Part of the award budget
– Seldom reduces direct expense budget
• 50% returned to Institution
– 30% Department; 10% Dean; 10% Provost
– Must be spent in support of Grants
• Withheld from award budget loaded
to Finance System.
– Budget then increased with each
monthly F&A charge.
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Matching (Cost Sharing)
• Mandatory vs. Voluntary
– Voluntary Match is discouraged by
University policy and restricted by
some funding agencies
• What is allowed?
– Must have a basis for value
– Space/Equipment must be 100%
designated to the project.
– Must be documented / reported at
the conclusion of the project.
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Effort
• Percentage of time applied to a
project related to all PAID JMU
activities.
– Must ALWAYS equal 100%
– Does not change based on number
of hours worked
– Cannot ‘over commit’ effort
– JMU certifies effort each semester
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Why should the PI keep
records?
• PI’s responsibility! (Stewardship)
– Like reconciling a checkbook
– Tie expenditures to award budget
• Ensure accuracy of keyed data
• Track Timing differences
• Track ATV (automatic) charges
– Postage, telephone, Copy Center, JMU car rental
• Document ‘matching’ and ‘effort’
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• Up to 5 year record retention
Budget Revisions
• May require sponsor’s written
approval
• Processed through Office of
Sponsored Programs
• PI must justify how a budget line
can be reduced and how the
new budget would improve the
project
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Close out
• Most projects have defined ending
date where work must be completed
and expenditures incurred
– Processing of incurred expenditures generally
may continue after project end-date, but NO NEW
expenses.
• PI records are a MUST at this time and are
difficult to construct if not already
prepared.
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Close out
(No cost extension?)
• PI should request a ‘no-cost
extension’ through Office of
Sponsored Programs if needed
– At least 30 days before the project end
date
– Not just for convenience or to spend
remaining funds
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GOTCHA’s
• Timing of transactions to
General Ledger
• Grant Period ending before
project is done
• Forgetting that FICA is added to
Lump Sum salary amount on
PAR form
• Not following the awarded
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budget and budget justification
Summary
• Generally, JMU rules apply
• Buck stops with PI (and
department)
• Sponsored Programs Accounting
provides assistance and reviews
for compliance
• When in doubt, refer to the
award
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Where to Get More
Information
• Sponsored Program Accounting MSC 5713
JMAC Building 6, Suite 30
• John Hulvey
– 83725
[email protected]
• Brenda Wilburn Seifried
– 82314
[email protected]
• Donna Crumpton
– 88099
[email protected]
• Kyra Shiflet
– 87108
[email protected]
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