THE UNIVERSITY OF MISSOURI- COLUMBIA
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THE UNIVERSITY OF MISSOURI- COLUMBIA
OFFICE OF SPONSORED PROGRAM ADMINISTRATION
POST AWARD STANDARD OPERATING PROCEDURES
August 14, 2007
Updates
2/17/2006-Added “Review of Transactions Before Billing”-see pages 43-44.
1/19/2007-Added to Subcontract Processing, Draws, and Cost Sharing
1/30/07-Added to Subcontract Processing, Processing Construction Grants, Validating CFDA Numbers, Scheduled Invoicing, Cost Reimbursable Invoicing, Producing the Schedule of Federal Expenditures (SEFA), Cost Reimbursable Invoice Review
3/22/07-Updated Effort Verification
3/27/07-Updated A-21 Unallowable Costs
8/14/07-Updated Sub recipient processing
8/14/07-Updated invoice processing
8/14/07-Updated equipment reconciliation
TABLE OF CONTENTS
PAGE
SENIOR ACCOUNTANT RESPONSIBILITIES 4
Daily Duties 5
Other Duties 5
USEFUL QUERIES 5
CUSTOMER SERVICE RESPONSIBILITIES 5
THIRD PARTY BILLING 7
SUBCONTRACT MANAGEMENT 8
AWARD PROCESSING 10
AWARD MAILBOX 10
NEW AWARD-NON-CONSTRUCTION 11
SETTING UP CONTRACT PROCEDURE 11
Cost Reimbursable Contract 11
Letter of Credit Cost Reimbursable 12
Setting-up Fixed Price Contract 14
PS PANELS AND ACCOUNTS 17
Amending Contract 25
Supplements and Continuations 26
Processing a Pre-Award Account 28
Processing Construction Grants 28
Adding a Project 29
CFDA NUMBERS 30
BCM ERRORS 32
BUDGET JOURNAL ENTRIES 33
NO COST TIME EXTENSIONS (NCTE) 35
CHANGES IN PI 37
BUDGET REVISIONS 38
CREATE MOCODES 40
MONTHLY DUTIES
AWARD LISTING 41
INVOICING & RECORDING ACCOUNTS RECEIVABLE 44
A. REVIEW OF TRANSACTIONS BEFORE BILLING
B. PROCESSING INVOICES AND RECORDING IN AR
MONITORING ACCOUNTS RECEIVABLE 50
A/R WRITEOFF POLICY 52
RECORDING CONVERSATIONS IN A/R 54
LETTER OF CREDIT DRAWS 55
QUERY OF LATE PAYROLLS 56
CORRECTING ENTRY APPROVALS 56
GRANT CLOSE OUT 57
EARLY TERMINATIONS 59
CHANGES OF INSTITUTION 60
COST OVERRUNS 61
OTHER DUTIES
EQUIPMENT RECONCILIATION
UNITIZED CONTRACTS 62
COST SHARING 63
SUSPENSE MANAGEMENT 70
PROGRAM INCOME ACCOUNTS 72
RECORDS MANAGEMENT 75
ASSOCIATE DIRECTOR ONLY
EFFORT VERIFICATION 77
A-133 AUDIT REPORTS 79
A-21 UNALLOWABLE COSTS 82
SEFA (SCHEDULE OF FEDERAL EXPENDITURES) 83
SENIOR ACCOUNTANT RESPONSIBILITIES
Beginning of Month
A. Use award listing to determine which projects require an interim or final billing and/or report during the current month. If ready for closeout, contact department and start process to determine final expenditure amount.
Determine highest priorities for invoicing/LOC draw during this month.
1. Projects with invoice/draw overdue (should be a rare occurrence)
2. Projects requiring a final invoice/draw
3. Projects requiring a periodic invoice/draw
4. Projects with invoice/draw optional but large (>$100,000 for individual project or >$200,000 for LOC total) outstanding balance
5. Projects not invoiced/drawn in previous year
B. Use award listing to check overdrafts and determine if additional funding is pending. If not, contact department to remove excess costs. If so, and less than 30 days past end date, contact pre-award satellite office for status—if more than 30 days past end date, contact pre-award Associate Director to follow up on status. Note action taken, response received in Award Profile>Notepad.
C. Compare beginning of month award listing to previous month’s closing Management Report. Send any discrepancies to OSPA Director (hopefully an item that can be removed once reports are reconciled).
During the Month (all must be done at least once sometime during month)
A. Prepare invoices and reports according to priorities and frequency (including monitoring of cost sharing).
B. Record scheduled invoices in A/R and send out.
C. Draw on letter of credit so A/R entry is posted by last calendar day of the month.
D. Review departmental correcting entries (all for the month by month end).
E. Provide feedback to post-award Associate Director on efficiency of processes used and any recommendations for increasing efficiencies (hopefully an item that can be moved to the “other duties” list once efficiencies are maximized).
F. Determine if projects with prior end dates can be closed; i.e., that the billed amount equals expenditures, and that the billed amount was collected. Close appropriate Chartfields.
G. Analyze dunning errors for action needed by Accounting Services/General Counsel. Send or dispose of the letters as appropriate. Follow up on delinquent invoices, if necessary.
H. Check with pre-award Associate Director on projects in pre-award status. Note action taken, response received in Award Profile>Notepad.
Daily Duties
A. Answer phone, email; handle walk-ins and inbox.
B. Process awards from satellites.
C. Handle BCM errors.
D. Process No Cost Time Extensions and Changes of PI as requested.
E. Handle subcontracts:
Forward subcontract invoices to PI for approval.
Process invoices to pay subcontractor when PI approval is received.
Other Duties (irregular or longer than monthly cycle)
A. Quarterly Federal Cash reporting
B. Annual Financial Reporting
C. Locate missing CFDA numbers (completed at least quarterly)
D. Suspense Account Maintenance
E. Committee Responsibilities
________________________________________________________________
USEFUL QUERIES- SEE GM FOR QUERIES, NEW QUERIES CAN BE DEVELOPED AS NEEDED.
G_LOC_BUD_EXP_PTD Project to date expenses for projects in a specific fund
GM_COSTSHARING Payroll cost share by project ID
GM_COSTSHARING_DATE Payroll costshare by a certain time period
BD_XCP_GL_OSAP List of sponsored program BCM errors
BD_KK_BUDGET-EDIT-ERROR_W_LN List of budget errors
OPEN_ITEMS_BY_AMOUNT_GM_ONLY Receivables listing for sponsored programs
GM_SALARY_PROJECT Payroll detail by project number
GM_SALARY_PROJ_DATE Payroll detail for a certain time period
CUSTOMER SERVICE RESPONSIBILITIES
Phone Calls and Emails
Senior Accountants (SA) are responsible for answering phone calls and emails in a timely and courteous manner. The SA should respond to emails and voicemails as soon as possible but within one business day at the latest. If the SA believes that he/she will be unable to provide adequate response within this time, they should contact the person and explain that they are unable to provide a response but will contact them again when they are able to adequately meet their request.
If a SA is out of the office, it is his/her responsibility to set up the Out of Office Assistant in Outlook and change his/her voicemail message to state that he/she is not available that day. This should be done prior to departure for planned absences. For unplanned absences, the SA should follow the steps below to change the outgoing voicemail message and outgoing message on Outlook (if internet access is available).
Set up an outgoing phone message from outside the office
1. Dial your work number.
2. While your outgoing message is playing, press * .
3. Enter 8 for user options.
4. Enter G for changing the greeting.
5. Enter P for changing the primary greeting.
6. Enter R to record a greeting
7. Enter X to save recording.
Set up an outgoing email message from another computer
1. Connect to
2. Log in using your Single Sign On (SSO)
3. Select Shortcuts
4. Select Options
5. At the top of the screen, under Out of Office Assistant, click on “I’m currently out of the office.”
6. Type Auto reply message stating that you are out of the office, when you anticipate returning and the name and number of someone who can provide assistance your absence.
7. Click Save & Close.
Handling Walk-ins
Periodically, department administrators and faculty may come to Jesse Hall without an appointment to seek assistance with award management. The SA should make every effort to meet with them as soon as possible and assist them to their satisfaction.
In Box Management
Each SA will have an in-box for depositing mail, award files, and office correspondence. Items will be added to the in-box on daily basis and should be reviewed in a timely manner to insure that urgent requests are handled and misdirected mail is forwarded to the appropriate recipient. Appropriate treatment of in box items such as no cost time extensions (NCTE) or subcontract invoices will be addressed in their respective sections.
EQUIPMENT RECONCILIATION
Reconciliations must be performed and prepared monthly for all federally funded equipment comparing life-to-date balances in Asset Management (AM) to life-to-date capital expenses reflected in the General Ledger (GL). The ChartField strings for federally funded projects must match between AM and GL. It is critical to the University that the ChartFields for a federally funded grant accurately reflect capital purchases in both AM and GL. Any capital equipment purchase made with federal funds must be reconciled to the ChartField level.
The queries AM_RECON_ASSET_ADDS_GRANTS & AM_RECON_GL_EQUIP_GRANTS will be run monthly by OSPA comparing life-to-date balances in the AM to life-to-date capital expenses reflected in the GL. The reconciliations will be forwarded to, reviewed and maintained by the Post Award Director.
The reconciling items discovered on the reconciliation will be forwarded to campus accounting. Campus accounting will work with OSPA and Procurement Services to resolve the reconciling items. OSPA will resolve items related to Correcting Entries and Journal Entries. Procurement Services will handle items that have an expense recorded in GL, but the item is not reflected in AM.
CHANGE OF F&A RATE OR BASE
Only the Associate Director of Post-award can change information on the Project Activity F&A panel in Peoplesoft. If there is a situation where this information needs to be changed, the AD will be contacted for assistance. The AD will make appropriate changes and will notate who has asked for the changes to be made.
THIRD PARTY BILLING
Certain University student fees are paid by outside agencies. Those fees may include tuition and incidental fees. Only instructional grants with budget for these items should have any third party billing. A research grant would generally only pay to a third party if it were specifically mentioned in the contract.
Prior to billing, the third party billing department (in cashiers) requests the responsible SA to verify that these fees are allowable. This verification usually comes as a faxed memo.
The SA will review the terms of the grant for allowability of the charges. If allowable, the SA signs his/her approval and forwards via fax to third party billing.
These billings can be time sensitive, so the SA is responsible for responding with approval or rejection within 24 hours of receiving the verification request.
SUBCONTRACT MANAGEMENT
Initial Review
SA’s are responsible for managing subcontracts on their award files. New Subcontracts will be placed in the SA’s in box when they are 1) fully executed and 2) there is a purchase order. The SA should verify that the PO has the correct amounts in the Peoplesoft accounts, that the period of performance matches the agreement and falls within the period of performance of the prime agreement, and other key attributes. If there are inconsistencies, it should be returned to the Associate Director of Preaward for correction and final review. If the new subcontract is a continuation, the $25,000 threshold may have already been met by previous subcontract agreements with the same subcontractor.
Invoice Processing
The SA is responsible for managing the process of receiving and paying subcontractor invoices. All steps of this process are critical if we are to ensure compliance with federal requirements.
Overview
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Subcontract invoice processing flowchart 1
Invoice receipt - When an invoice is received, the front office staff scans it in as a PDF file and places it on the G:/Subcontracts folder. The paper invoice is then given to the SA.
Accountant review - The SA should determine that the invoice is mathematically accurate, the cumulative amount is accurate based upon prior invoices, the F&A is calculated correctly, the invoice is certified and signed by authorized official, and that the subcontract is fully executed. The invoice should be compared to the terms of the agreement to determine that the period of performance falls within the period of the subcontract and that the cumulative amount of the invoice does not exceed the agreement amount. This will be saved as a PDF file, attached to the scanned invoice and uploaded to the Peoplesoft sub recipient payment panel.
PI Approval - If the invoice is deemed to be valid, the PDF file is sent to the Principal Investigator (PI) for signature of approval. It is the PI’s responsibility to verify the performance of the subcontract and to approve invoices for payment.
EPLS check - After the PI mails their acceptance of the invoice, the SA will verify that the Excluded Parties Listing System has not debarred the subcontractor. The website is . Note: The SA does not need to verify debarment for federal agencies.
Upload into Peoplesoft sub recipient system – A PDF is created that has the invoice, accountant approval, PI approval and EPLS check included. All of these items are needed in order to show that we are in compliance with federal regulations. The SA will enter the Invoice #, date and amount into the system. The EPLS icon is selected
Payment process – The PDF is sent by email to Accounting Services for payment. The email should clearly show the chartfield string, PO# and PO line that it is to be paid from.
Paper file - The paper invoice will be placed in the subcontract file with the signed and dated debarment verification.
Sub recipients and close outs - At the end of a grant, the SA should verify that all invoices have been received from the subcontractor before preparing a final financial report or final invoice for the prime agreement. The method and result of the verification will be documented, signed and dated. If the subcontract was not fully spent, the SA should contact the Associate Director of Pre-Award to have the purchase order reduced to zero and closed.
AWARD PROCESSING
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Award processing flowchart 1
UMC RESEARCH OSPA Awards Mailbox
Each SA should have the UMC RESEARCH OSPA Awards mailbox installed on their Outlook email. To do so, complete the following steps:
1. Click Inbox.
2. On the Tools menu, click Services.
3. In the following information services are set up in this profile box. Click Microsoft Exchange Server.
4. Click Properties, and then click the Advanced tab.
5. Click Add, and then type OSPA awards then click OK and OK again.
After an award or preaward account has been set up in PeopleSoft by the GCA, an email will be sent to the PI, his dean, and a departmental person depending on the distribution list for his department, and the UMC RESEARCH OSPA Awards mailbox that includes the grant award summary and any cost share MoCodes that would not fit in the comment box of the grant award summary.
The subject line of the email will include the SA’s name, and each SA will be responsible for checking the mailbox everyday for new awards and preaward accounts. For preaward accounts, the email will be the only notification for the SA to complete processing the award in PeopleSoft. For new awards, supplements, and continuations, the file will be sent to Jesse Hall to be set up and placed in the SA’s inbox.
Once the SA has received the paper file, he or she has 24 hours to finish processing the award as directed in the following sections. Once the award processing is complete, the email is removed from the awards mailbox. If there is a problem with the award as received that requires a delay in completing the processing the award, the email can be marked with a follow up flag to indicate that the award was received but the SA cannot complete processing due to a problem with the award.
Processing a New Award in PeopleSoft Grants Module –Non-Construction
Once the award file is received, the SA is responsible for checking the accuracy of the Grant Award Summary, reviewing the PeopleSoft GM award panels and for posting the budget. If a new Grant Award Summary is required, the GCA should be notified to redistribute a corrected Grant Award Summary. The file should only be returned to the GCA if it is determined that the GCA cannot make corrections without it.
After logging in to PeopleSoft Production Database, the SA should review as follows and make any necessary changes. These changes will require the SA to save before exiting the panel.
Setting up Contract Procedures:
1. Cost Reimbursable:
There are two kinds of cost reimbursable, a non-letter of credit and a letter of credit cost reimbursable.
Non-letter of credit:
To create and amend a non-letter of credit cost reimbursable contract, follow the following steps:
Select: Contract > Create and Amend > General Information
On the tab for Find an Existing Value, enter search criteria and click search to find the contract you will be updating.
The General tab displays Contract information. Select Billing Options form the dropdown list at the bottom of the page.
In the Billing Options tab, enter:
Method of Payment: Cost Reimbursable
Click save.
Select the Lines tab. In the Contract Lines box, select the tab for Details:
Click on the Project link. Confirm that the rate template ID is “CRB” (If it is not, make the update and click Save.) After verifying the rate template ID, click the link Return to Contract Entry.
Click on the General tab and enter:
Contract Type: CR_NONLOC
Contract Status: Active
In the Lines tab, Contract Line box, click the Detail tab. Click Save. “Clicking Save makes the contract type and contract status unchangeable in the contracts general tab page”
In the Lines tab, Contract Lines tab for Detail, select the Billing Plans hyperlink at the bottom of the page.
On the Billing Plans Page, (Assign Billing Plan), Click on the plan hyperlink (B101).
In the Billing Plan general tab, enter values (or use the look up options) in the Billing Default Overrides Box:
Invoice Form: GM_GEN Cycle ID: (Whatever is appropriate)
Bill By ID: GM_CASH Billing Inquiry: (Bill Special Phone)
Billing Status: Ready
Click Save
Click the link Return to Billing Plan Assignment.
On the assign Billing page, click Return to Contract Entry.
Click the Lines tab and click Save.
Letter Of Credit Cost Reimbursable:
Select: Grants > Awards> Award Profile
Enter search criteria, click Search and select an award ID
On the Profile tab, enter a Reference Award Number (Sponsor number for the project) and click Save.
Select the funding tab. Review the projects listed and confirm all projects have been generated for correct dollars and correct dates.
Click the Award Modifications link.
On the Award Modifications page, verify the reference award number and that the Amount is the sum of all projects from the Award Funding tab.
Click OK.
Click the Sponsor tab. Verify the Contact Seq Num and Click Save.
Select: Grants > Awards > Project Activity
In the Find and Existing Value page, search for and select the Project
Verify the Activity Type is Grant. Click Save.
Select Grants > Awards > Award Profile
Enter search criteria and click Search.
On the Profile tab, click the View Contract link:
On the General tab, select Billing Options from the dropdown list (bottom right):
On the Billing Options tab, select “letter of Credit” as Method of Payment and select a Letter of credit ID using the Look up button
Click Save.
Click the Lines tab and in the contract lines box, select the Detail tab:
In the Related Project tab, confirm that the template ID is CRB and click on the link Return to Contract Entry.
On the Lines tab, select the Contract Lines box Detail tab
Enter the LOC Doc ID for each contract.
Click Save.
Select the general tab.
In the general tab, select a Contract type of CR_LOC and update the Contract Status to ACTIVE.
Click Save.
Select the Link Billing Plans.
Select the Plan link:
On the Billing Plan general page, enter or use the Look up buttons to populate the fields in the Billing Default Overrides box.
Invoice Form: GM_LOC Cycle ID: (Whatever is appropriate)
Bill By ID: GM_LOC Billing Inquiry: (Bill Special Phone)
Billing Status: Ready
.
Update the billing status to Ready.
Click Save.
Click Return to Billing Plan Assignment.
On the Assign Billing Plan Page, click Return to Contract Entry.
The procedure is complete.
Setting up a Fixed Price Contract:
There are two ways to get to the contracts General tab.
Grants > Awards > Award Profile –
You are able to use either the contract number or the project number then search. Then click on the blue View Contract hyperlink.
Or
Contract > Create & Amend > General Information –
You put the contract number in and click search.
Both methods take you to General contract screen.
Contract Type: select Fixed Price
Contract Status: select active
Now save.
Then click on the Lines tab.
Under Contract Lines select the Detail tab.
Select the blue Projects hyperlink.
This is where you select the Rate Template ID as Fixed Price.
To do this select Correct History in the bottom right hand corner of the screen. Click on the magnifying glass at the Rate Template ID box, select Fixed Price then save.
Now return to Contract Entry by using the blue hyperlink.
Select the General tab.
In the lower right hand corner is a drop box. Click on it and select Prepaids.
In the Prepaids for the contract box there are 4 tabs. The General tab should be open at this time. Enter the award amount in the Purchased Amount field and then select the Utilization tab.
Here you need to check the box Use for all Lines in Contract and then select the Initial Billing tab.
At this time you will click the drop arrow under Prepaid Tax Timing and select Tax on Initial Bill then go to the Deferred Revenue Distribution tab.
Here you will enter the chartfield where revenue is to be recorded and the PS account number.
Save when you finished.
Now select the Initial Billing tab again.
Click the blue Create Bill Plan hyperlink.
Description: A description must be entered. You have total control over this.
Billing Method: “very Important” For all Fixed Price Contracts ”MILSTONE” should be selected here.
Now review all other information and change as needed. Remember this is where the system finds the Sr. Accountant information.
We fished click the apply button in the lower left hand corner and then OK.
There is now a description and a billing plan number showing.
Click the blue hyperlink under Description.
An Events tab has now been added. Select it.
Select Add New Event.
Select Amount in the Define Events box. Also notice the award amount being displayed in the Amount Detail box.
There should be one row under Event Detail. This is used to record your billing events.
Event Type: Will usually be Date but there are other selections.
Event Status: Change to Ready for Processing.
Event Date: When Date is used for Event Type this tells the system to generate the Invoice.
Event Notes: Click here to enter any information deemed necessary.
Amount: Enter the amount applicable for each event.
More lines can be added by clicking the + sign to the far right. A box will appear in the upper left hand corner prompting for the number of lines to add. Enter and select OK.
After entering all events you should set Event Status to Ready for all or just the current rows. By doing them all now you will not have to do it later on.
Now Save.
If your events are equal to the award amount then the Remaining Amount in the Amount Detail box will be 0.00.
Select the Return to Prepaids hyperlink.
Under Status change this to Ready and save.
Select Initial Billing and then the Description hyperlink.
Change Billing Status to Active, if it isn’t already, and save.
Select Return to Prepaids hyperlink and the Return to Contract Entry hyperlink.
Save.
Your Contract is Now Setup!
PS PANELS AND ACCOUNTS:
Valid methods of payment choices are:
AUT Auto pay
CST Cost Reimbursable
LOC Letter of Credit
PRE Prepaid
SCH Bill by Schedule
Valid basis of payment choices are:
CST Cost Reimbursable
FIX Fixed Price
If LOC is selected, determine that the correct Letter of Credit is also selected. If the method of payment is Bill by Schedule, the SA should prepare the invoices prior to completing processing. See section on Scheduled Invoicing.
The revenue account should be whatever revenue account that the revenue for this type of grant should be recorded on. Examples are:
Federal 490000
State 491000
Other Government 492000
Businesses 493200
Other Individuals 493500
Foundations 493600
Other Org/Univ. 493700
The deferred revenue account should not be changed.
Funded Amount
PeopleSoft populates these fields. Determine that the funded amount exactly matches the award amount. For LOC awards, make sure that the correct LOC document number has been entered.
Project Set Up Panels
Grants > Awards > Project
Search
Please note that if an award has multiple projects, each project will have to be reviewed individually.
General Information
SA should make sure that the Project Type selected is one of the six types that begin with “Grants-xxxx”.
SA should click the chartfield button and make sure that the project end date is 4 months after the actual end date of the award.
Project Department Tab
PeopleSoft populates the department ID when the award is generated. SA should make sure that the Dept ID is a grant Dept ID.
Project Manager
PeopleSoft populates the PI’s name and employee id when the award is generated.
Shared Credit
PeopleSoft populates the shared credit information from the proposal panel when the award is generated.
Project Activity Panels
Grants > Awards > Project Activity
Search
Please note that if an award has multiple projects, each project will have to be reviewed individually.
General Information tab
Populated by PeopleSoft.
Description
SA’s should enter all relevant billing and reporting requirements of the agreement in the project description panels, including any special provisions and due dates. For uniformity and ease in covering for each other, the AD requires notes to be in this order: fiscal contact, agency contact, required final reports, special terms, miscellaneous.
Click on “Activity Status” hyperlink on General Information tab.
The Status of an active grant should always be open.
F&A Rates
The F&A rates will be based upon the sponsor and type of activity of the award. The Rate Type will denote this. The Institutional Rate is the rate for this type of activity based upon if the sponsor is a state entity or not. The sponsor rate is the rate that is usually charged by this sponsor and is populated by PeopleSoft. The Funded and Allowable panel should reflect the actual F&A rate that is awarded. SA should verify whether the F&A is based upon modified total direct cost (MTDC) or total direct costs (TDC) if less that the Institutional Rate is awarded. If the funded F&A rate is different from the Institutional Rate, there should be a note in the comments box explaining why.
During the F&A rate transition period, the SA should determine that the Institutional Rate and Sponsor Rate are correct for the award. For instance if the award date is 7/1/03-6/30/04 and the type of activity is research, the institutional rate should be 45.5% not 47%.
Award Profile Panels
Grants > Awards > Award Profile
Enter the Business Unit and either the award number or project ID and click Search. For awards with multiple projects, the project will have to be selected if the award number is entered.
Please note that if an award has multiple projects, each project will have to be reviewed individually.
Profile
The SA should determine that the Reference Award number has been entered properly. This number should correspond to the sponsor’s agreement number or specific identification of the award.
The Award begin and end date should be compared to the agreement’s start and end date since this is the only place in PeopleSoft where the agreement’s dates are to be accurately reflected.
The Award Status should be “Preaward” if the award was set up as a preaward account and “Accepted” if there is a fully executed agreement.
The SA should click the award modification button to determine if the dates and amounts were corrected entered by the GCA or converted properly by the awarding process of PeopleSoft.
Sponsor
The SA should determine that the correct sponsor contact has been selected. If no specific contact is in place, the field should display “Accounts Payable”.
Funding
The SA should review this panel for every project on a multiple project award since only the project initially chosen when opening this panel group will appear. The project-funding amount and budget periods will appear on the Grant Award Summary so they should be entered correctly based upon the agreement.
Click on “Award Modifications” hyperlink to verify Reference Award Number, Amount, and dates are correct.
Certifications
Any required certifications will appear on this panel. There is no action for the SA.
Terms
There is a limited selection of terms that can be selected on this panel and notes about terms can be made in the project description panel, so this panel is generally left blank.
Milestone- left alone.
Attributes
This panel should display the CFDA number of the agreement. If the grant does not include federal funds, the CFDA number will be 00.000. If the CFDA number is XX.XXX, the GCA did not have the CFDA number when the award was processed. It is then the responsibility of the SA to find the correct CFDA number to enter on this panel. See the section on CFDA, for more information.
Notepad
The notepad is used by all parts of the OSPA office to make notes about processing of the award, file movement, consulting agreement processing, and other notes that need to be captured but not necessarily displayed on an Award Listing. The SA should not make any modifications to existing notes. Any new notes require a new line to be inserted.
Key Words
These words are populated from the proposal and require no action from the SA’s.
Project Budget Panel
Grants > Awards > Project Budgets
Enter the Business Unit and project ID and click Search.
Please note that if an award has multiple projects, each project will have to be reviewed individually.
If the project has more than one budget period, each budget period will be reviewed individually.
The award and the way that it has been funded will determine the number of budget periods reflected on this panel. If the award being reviewed is a supplement or a continuation, then the SA may only need to review the budget period that is being added.
To navigate between Budget Periods, Click on “Return to Search” button, budget detail at bottom of budget period
Budget Detail
The SA will need to review whichever budget period the current award is for. The SA should compare the budget lines to the awarded budget document. The SA will need to check the accuracy of the budget account used; the fund, the dept id, program, and class for all sponsor funded costs as well as cost share.
Ledger
The ledger will be PROJ for all budget lines except the budget for revenue.
Note: PS 8.8 Revenue will no longer be budgeted.
F&A and C/S
If the budget line is for F&A, the F&A button should be checked. If the line is for Cost Share, C/S should be checked.
Fund
The fund will depend upon the source of funds. Appropriate Funds are as follows:
Grants
2100. Restr. Grants and Appropriations (Non-LOC)
2200. LOC- EPA
2205. LOC- NASA Goddard
2208 LOC- NASA Ames
2210. LOC- NASA Glenn
2212 LOC- NASA Stennis
2215. LOC- NASA Marshall
2220. LOC-NEH
2223. LOC-USDOL
2225. LOC- NSF
2230. LOC- SBA
2235. LOC-USDA-CSREES-Research
2240. LOC-USDA-CSREES-Extension
2245. LOC-USDA-ARS
2250. LOC-USDA-Forest Service
2255. LOC-USDOC
2260. LOC-USDOC-NOAA
2265. LOC-USDOE-Morgantown
2270. LOC-USDOE-Chicago
2275. LOC-USDI
2280. LOC-USOE
2285. LOC-DHHS
2290. LOC-USDOJ
2295. LOC-HUD
Department will provide Cost Share-
0000 General Operating
0000 is the most frequently used fund code, but others are possible.
Account
Budget nodes should be used for the accounts. Valid budget accounts are listed below:
Cost Share
700000 Salary Teaching & Research
700000 S&W GTA’s/GRA’s
700000 S&W Admin Support
700000 S&W Non-exempt students
700000 S&W Other
710000 Fringe Benefits
720001 Department Operating
760001 Student Aid
770000 Equipment
Grants
700000 Salary
710000 Fringe Benefits
720001 Department Operating
760001 Student Aid
765001 Subcontracts $25,000
770000 Equipment
789500 Rent of Space or Capital Equipment
862001 Other Allocations/Transfers Out (for use with construction grants)
863001 Other Allocations/Transfers Out (for use with Total Fixed Price)
981000 Facilities & Administration
Dept ID
The Dept ID will depend upon if the budget line is for the grant funded portion or cost share. The grant portion should have the same dept id as on the Project Primary Department Panel. The cost share portion should have a dept id that is not a grants dept id.
Program
For the grant funded budget lines, the program should be 0 for all business units except Extension. Extension grants should have program E8006. The cost share budget lines may or may not have a program other than 0 depending on the source of funds that will be paying for the cost share. The program code should be provided by the department at the time the award is set up by the GCA.
Class
The class budget should always be zero.
Overdraft
The overdraft box should always be checked.
The SA reviews the budget lines and determined that they are entered correctly. The budget lines are posted by Pre Award GCA’s before file movement to Jesse Hall. If not posted, the SA will click the Post box and click the lightening bolt. At the prompt, the SA will click yes and wait for budget journal numbers to be listed.
Status and End Date for General Ledger
Set Up Financials/Supply Chain>Common Definitions>Design Chartfield>Define Value
>Chartfield Values>Project
Enter Set ID: Business Unit and Project. Status should be active. End date should be four months past the award end date.
Amending Contract
For adding or decreasing the contract amount (limit amount). Select the contract to be amended.
Click the Amend Contract button.
Enter the Amendment type of increase. Click Save. Click on the lines tab, then the detail tab. Click the project hyperlink.
Click the Amend Contract button to open the limit amount.
A message will display example “ Amendment number 0000000001, type: Increase is currently available for edit, (9853,2)”
Click OK and continue to create the amendment.
Change the limit amount to the new total dollar amount.
Click Save.
Click on the Contract Amendment tab.
Click on the detail hyperlink on the new amendment.
Change the amend status to Ready, this will then create the Process Amendment button.
The Amend Status is changed to Complete.
Processing a Supplement or Continuation in PeopleSoft Grants Module
The SA will generally have to review fewer panels when receiving a supplement or continuation to an existing award depending upon if the additional funds were added to an existing chartfield string or if a new project has to be created.
New Chartfield(s)
Panels to be reviewed:
Grants > Award > Project > General Information
Same steps as for a new award
Project > Project Department
Same steps as for a new award
Project Manager
Same steps as for a new award
Project Share Credit
Same steps as for a new award
Project Activity > General Information
Same steps as for a new award
In Description Field:
Make a note of the previous Project(s) and any special treatment for this new funding.
Activity Status Hyperlink
Same steps as for a new award
Project Activity > F&A Rates
Same steps as for a new award
Award Profile > Profile tab
This panel will need to be reviewed for the new project. Click on the Award Modifications hyperlink and make sure that the new funds have been added to the existing funding. Determine that the period of performance reflects any additional time added to the existing award.
Award Profile > Funding tab
Determine that the project-funding amount is correct as well as the funding period.
Project Budget >Budget Detail
As same step as for a new award- Verify budget is correct.
Award Profile > Funding tab
Same steps as for a new award
Status and End Date in General Ledger
Same steps as for a new award
These steps should be performed for all new projects added to an award.
Same Chartfield(s)
Panels to be reviewed:
Award Profile > Profile tab
Click award modifications hyperlink to determine that additional funds and time have been added to the award. Determine that the period of performance reflects any additional time added to the existing award.
Award Profile > Funding tab
If the additional funding represents a new funding period, determine that an additional line has been added for the new period’s funds and that the Total Project Amount is correct.
If the additional funds do not represent a new funding period, determine that the new funds have been added to the most recent funding period and that the period of performance for the period is correct. Verify that the Total Project Amount is correct.
Project Budget
If the new funding represents an additional budget period, there should be a new budget period.
Project Budget > Budget Detail
If the new funding is added to an existing budget period, the Budget will be added to the most recent budget period. See Budget Detail section for new awards to know what to look for on these lines.
Verify budget is correctly posted.
Verify status and end date are correct in General Ledger.
Processing a Pre-Award Account in PeopleSoft Grants Module
The steps to process a Pre-Award account for the SA are the same as the steps for a new award (non-construction) with the following exceptions:
A paper file will not be sent to the SA, so the email in the UMC RESEARCH OSPA Awards mailbox will be the only notification to the SA to complete processing. There will not be an agreement to compare the information recorded in the PeopleSoft GM; so most panels can just be glanced at without scrutiny. (For instance, the CFDA number may be left blank.)
The following panels will be different from the New Award panels and will require review by the SA:
Award Header>Accounting Attributes
The Cycle ID should be WAIT.
Award Profile>Profile
The Award Status should be PREAWARD.
Once the budget journals have been reviewed, the email maybe removed from the Awards mailbox.
Processing a Construction Award
A construction award is treated the same as other new awards with the following exceptions:
Project Activity>Description
This panel should include the chartfield string where the actual expenditures of the grant will be recorded by Construction Management.
Project Budget>Chartfield Lines
The budget should only have 1 line that is set up as TNFOUT
Fund-the fund should be based upon the source of payment (i.e. 2100 or LOC fund)
Account should be 862001.
DeptID-is based upon the grant’s department
Program-should be 0
Class-Should be 0
Processing Program Income Accounts
See Program Income Section.
Adding a Project
Grant>Awards>Project>Chose add a new value>Click Add>Fill out required fields. Add a project activity.
Once a new project has been added and the activity has been added, tie the project to an award.
Contracts>Create and Amend>General Information>Click on the Lines Tab>Under Contracts click on the Detail Tab>Click on the blue Project Hyperlink> At the bottom see “Associated Projects & Activities”>Click the plus sign and add the new project number. Save.
Go back to Award Profile. Enter the Date Ranges on the Funding page. Set up the budget. Change the date on the Chartfield Vales page to 4 months past project end date. Create MoCode. Send out Grant Award Summary.
The specific procedures we designed for grant-funded construction projects deal only with those construction projects handled by Construction Management and accounted for using a Construction Management Project ID. For any other capital expenses charged to a grant, the expense should appear as a direct expense to the grant. There are increased compliance risks related to allowability and period of availability if we do otherwise. This does not preclude transfers, but the transfers should be of individual expenses, not lump sum transfers from consolidated expenses
CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA)
If an award is received by the SA and there is no CFDA # on the Award Profile>Attributes page or on the Award Profile>General Information page or the GCA has entered 00.000, the SA is responsible for obtaining the CFDA # and entering it on the Award Profile panels.
The SA when reviewing the agreement should look for evidence that the funding is federal flow-through. If the CFDA # is not indicated on the award document, the SA should review the Request for Proposal, Application, or Quotation (whichever was applicable for the proposal) to see if the source of funds is identified with a CFDA #.
If the review of the award and proposal documents does not indicate the CFDA # but does indicate that the source of funds is federal, a call to the sponsor may be required.
If the sponsor does not know the CFDA # for the federal dollars, the SA should obtain the name of the federal agency providing the funding.
CFDA information should be entered into PeopleSoft as follows:
Grants>Awards>Award Profile>General Information & Attributes
1. For awards that have no federal dollars: Enter XX.XXX
2. If there are federal dollars, and you know the CFDA #, enter it in the format ##.###. (It is possible that there may be a letter that follows, the number. If so, enter it as well.)
3. If there are federal dollars, and you only know the federal agency, enter the first two digits of the federal agency code followed by .000. For instance, if you know that it is DHHS but do not know the specific program, enter 93.000.
4. For federal contracts that have no specific CFDA#: Enter the first two digits of the federal agency code followed by .CON. For instance, 93.CON for DHHS contracts.
5. Until the CFDA# is determined, blanks should remain in the CFDA field.
Helpful Websites: CFDA
NSF
Validating CFDA numbers and other SEFA fields:
On a semi-annual basis, a report will be produced out of Peoplesoft that will encompass a complete grants dataset. This dataset will then be tested to determine if inaccuracies are present. When all tests have been performed, the erroneous results will be distributed to the appropriate personnel. Key fields to be tested are (but not limited to):
CFDA Number
Validity
Conformance to our policy
Award Reference Number
Existence
Conformance to related records
Sponsor match with CFDA’s first two digits.
BCM ERRORS
BCM errors should be handled daily.
BCM error lists are run each morning using the following query in PS 8.8 reporting:
BD_XCP_GL_OSPA
Error Types
No budget exists PROJ: The error is due to no budget existing for the chartfield string
NF-RE Data The error is due to no budget existing for the chartfield string (revenue)
No budget exists ORG: The error exists due to no budget existing for the dept id. (Must be fixed by the department.
Clearing BCM Errors
ALL payroll-generated transactions MUST be allowed to clear BCM status. If necessary, the SA should enter budget for the chartfield string or extend the project date to allow the payroll entry to post. If the transaction is not appropriate for the project, the SA should work with the department to make sure that the charge is moved to another chartfield string.
Other transactions need to be reviewed by the SA and if appropriate the end date should be extended or budget should be added. If the expense is not allowed on the grant, the SA should contact the person responsible for the transaction. That contact person would be either a departmental person or, in the case of an external feeder system, whoever is responsible for the external feeder (found on Accounting Services website .)
Post to PROJ
Included with the daily BCM error list, there is a list of projects for which budget has been entered but the budget lines have not been posted to PROJ resource. The query is GM_POST_TO_PROJECTS. Each SA is responsible for going to the Project Budget for their projects on this list and clicking the Post to PROJ button (looks like a post-it).
BUDGET JOURNAL ERRORS
Need to go to commitment control to handle them.
A new security rule has been created in PS88 for the Office of Sponsored Program Administration (OSPA) to correct budget journal errors that are fed from the grants module and to make budget entries for program income CF.
1. Making a Budget Entry
From the Main Menu, select: Commitment Control > Budget Journals > Enter Budget Journals.
Select Add a New Value. Type in the appropriate Business Unit. Leave NEXT for the Journal ID and current date. Then click[pic].
Under Budget Header, type in PROJ or click on the magnifying glass and select PROJ for Ledger Group. Also, type in a detailed explanation in the Long Description box (optional).
Next, click Budget Lines. Budget period should always be 0 because there is no a specified year for project. Enter the rest of the budget information. To add or delete lines, use[pic][pic]. Use “Journal Line Copy Down” feature if there are several chartfields that you will be repeating on additional lines. When you are satisfied with the entry, choose[pic].
After you click [pic], a journal ID number will appear on the top of the screen by Journal ID. You may need this number for future search. You could post the journal right away. Just check the box by “Post Journal” then, click [pic]. A statement will appear verifying whether you wish to post the journal or not. Click the Yes. If posted the Budget Header Status will be Posted. Otherwise check Budget Errors tab.
You need to also add a budget for the Project Parent, click the [pic]
Under Budget Header, type in PROJ_P or click on the magnifying glass and select PROJ_P for Ledger Group. Also, type in a detailed explanation in the Long Description box.
Next, click Budget Lines. Budget period should always be 0 because there is no a specified year for project. For the parent budget only need to enter the fund and project and the amount is the total for the project. When you are satisfied with the entry, choose[pic].
After you click [pic], a journal ID number will appear on the top of the screen by Journal ID. You may need this number for future search. You post the journal the same as the first journal.
Reminder for FUND 2199, you have to make each entry twice. First, you need to make an entry using PROJ and PROJ_P ledger groups.
2. Deleting a Journal
Select: Commitment Control > Budget Journals > Enter Budget Journals > Find an Existing Value.
You will get a complete list of all un-posted journals. You will only be able to delete journals associated with your access. If a journal is already posted, you can’t delete it; you will have to make another entry to reverse it.
Select the budget journal to be deleted. Click the drop down arrow and select “Delete Journal” then, click [pic]. A statement will appear verifying whether you wish to delete the journal or not.
3. Correcting an Error from Project Budget
From the Main Menu, select: Commitment Control > Budget Journals > Enter Budget Journals > Find an Existing Journal. The journal ID is found on the project budget page with the status of E. Type in the journal ID number of the journal you want to correct. Click [pic].
Keep in mind that projects budget rules are based on Project ID. Account is budgeted at Level G as defined in the BCM_ACCOUNT_G tree. Class should be rollup to 0 as defined in the CC-CLASS tree. It should be detail program, detail fund, detail DeptID, and detail project. Change or complete as needed on the Budget Line page, the tab Budget Errors will help you to know what the system is looking for. Once data is complete then process the journal as you did under Making a Budget Entry.
NO COST TIME EXTENSIONS (NCTE)
PI’s sometimes require more time to complete a project than what was originally anticipated. When more time is needed for a project, the PI or fiscal officer will contact the SA assigned to that grant to confirm the process for a specific grant. The SA will read the terms and conditions of the award to ascertain whether or not an extension is allowed and what actions need to be taken. The SA should determine if through expanded authorities, the OSPA office can grant extensions in which a notification to the agency is all that is necessary or if a request must be sent to the sponsor.
Requests to Sponsor for NCTE
If the agency allows an extension, at a minimum the new requested end date and the reason for the extension is included in the written request signed by the PI. The request is signed by the associate director of OSPA to give institutional approval and is forwarded to the agency. A note is made in PeopleSoft Grants Module as follows:
Grants > Awards > Project Activity > General Information tab in description box.
Notifications to Sponsor on NCTE
If the agency allows an automatic time extension under expanded authorities, at a minimum the new requested end date and the reason for the extension is provided to the SA. If required, the SA will draft a notification of extension letter and provide any information required by the agency. The notification is signed by the associate director and forwarded to the agency. The NCTE notification is noted in Grants Module as follows:
Grants > Award > Award Profile > Note Pad tab
Sponsor Response to NCTE Request or Notification
Once the response (if a request was submitted) is received from the sponsor, the SA will inform the PI. They will note the response in Grants Module as described above. They will also need to change the end date in PeopleSoft as follows:
Set up Financial/Supply Chain > Common Definitions > Define Values > Chartfield Value
Click on “Project hyperlink.
Enter Business Unit + Project No. Hit Search
Change the end date to 120 days after the new end date of the project
Grants > Awards > Award Profile – Profile Tab
Use – Award Profile – Profile
Change the award end date to the new end date of the grant (this is the actual date that the grant will be ending according to the extension).
Click on “Award Modification” hyperlink + change end date
Grants > Awards > Award Profile – Funding tab
Change the end date of the latest active period for each appropriate project. Also click the Award Modification hyperlink and change the end date of the latest active period.
When NCTE processing is complete, the SA creates a Grant Award Summary that is sent via email to the PI and his division to notify them of the new end date of the project. The Grant Award Summary is then saved in EDOCS.
No Sponsor Response on NCTE Notification.
Some agencies only require that we notify them of an extension. In this case OSPA may not receive a response from the agency. The SA will send a copy of our agency notification to the PI instead of a response from the agency and will perform the steps listed in Sponsor Response to NCTE Request or Notification.
NCTE on Fixed Price Awards
Fixed price awards may be extended internally without notifying the agency as long as all deliverables required by the agency have been met. When the SA determines that an internal change is appropriate, they will update the end date as described in Sponsor Response to NCTE Request or Notification.
When NCTE processing is complete, the SA creates a Grant Award Summary that is sent via email to the PI and his division to notify them of the new end date of the project. The Grant Award Summary is then saved in EDOCS.
GRANT AWARD SUMMARY:
Grant > Awards > Award Summary report
Hit Search to find an existing value
Enter business unit, contract, project, MoCode, budget period and a brief note
Click the box next to the 9 options there
Hit “Run”
Award summary box should be checked
Change Type to “Email”
Click “OK”
The GAS should be sent to your email in a few seconds.
CHANGES IN PI
As soon as the department knows that a PI is leaving, the Sponsored Programs accountant that has been assigned to the project (this information appears on the MIS Web Applications financial screens) needs to be contacted in writing. The written request must include the appropriate approvals (i.e. Division/department/chairman/PI), new PI vitae, (if required), and the effective date of change (i.e. the date the PI leaves). After the OSPA Senior Accountant is notified, they contact the agency to determine the appropriate course of action needed to replace the lead PI or relinquish the grant. When a PI leaves a project, most agencies will assume that all spending ceases on that date unless the agency has agreed to the change in PI. Failure to notify OSPA could result in the agency denying payment for all expenses incurred after the PI left and could possibly consider the agreement in default and require the university to refund part or all of the funds received.
If agency approval is necessary, the request is countersigned by the Associate Director and transmitted to the agency. When the agency approval is received, it is given to the SA for final review.
Processing of Approved Change
SA enters new PI in PeopleSoft as follows:
Grants > Awards > Project > Manager
Insert a line by clicking + button with the effective date being the effective date of the PI change and the new PI being entered. Save entry.
Grants > Awards > Projects > Share Credit
Insert a line with the effective date being the effective date of the PI change and the new PI being entered. Save entry.
Grants > Awards > Award Profile – Profile tab
Change Award PI to Employee ID of the new PI
Press tab to make sure that the new PI name shows up in the next box.
Save entry.
SA sends updated Grant Award Summary to the new PI and appropriate staff to notify of change.
BUDGET REVISIONS
Decrease in Award by Sponsor
Award reductions occur when the sponsor sends a notice about reducing the amount of the award, giving a justification. The SA reviews the notice, informs the PI about the change, and requests budget changes from the PI, unless the notice from the Sponsor provides the budget change.
The PI responds with an email or a note whether the decrease in award is accepted or questioned. If the decrease is questioned, SA contacts the Sponsor for an additional explanation. The PI submits the budget changes if necessary.
The SA reduces the budget in PeopleSoft as follows:
Grants > Awards > Award Profile > Profile panel
Click on the Award Modifications hyperlink and change the dollar amount.
Grants > Awards > Award Profile- Funding panel
Change the Total Project Amount and Funded amount to agree to the new award amount.
Grants > Project Budget > Budget Detail
Insert rows reducing the specific budget lines.
If there is also a change in period of the project, the SA enters the new dates into PS GM. A revised Grant Award Summary is distributed.
A significant reduction in budget should be accompanied with a reduced scope of work. If the PI does not agree to the change in the scope of work, the file should be forwarded to the preaward satellite for contractual negotiations.
Re-budgeting
An external re-budget is a re-budget where approval is required by the awarding agency according to the terms and conditions of the agreement.
An internal re-budget is a re-budget that is requested only for institutional purposes.
Re-budget requests should be submitted and approved prior to spending, either to comply with the terms or conditions of the agreement or to increase chances of approval.
The PI has the primary responsibility for monitoring spending, for following the approved budget, and for initiating a re-budget request. The SA handles both types of re-budgets. Our office provides the re-budget service as the institutional representative of the Curators of the University of Missouri. The SA will assist the PI in determining whether an external or an internal re-budget, or no re-budget is necessary.
External Re-Budget
An external re-budget request should be made by the PI on departmental letterhead, with reference to the agreement title, agency number, and University chartfield number, with a description of the proposed changes and with a justification for the changes. The letter should be addressed to an authorized individual at the agency, and be routed to OSPA for institutional approval.
The SA handling the agreement reviews the re-budget request. The SA may recommend that the PI alter the letter for improvements in the letter. Upon review and acceptance by the SA, he or she will get signature approval from the Associate Director or Director of OSPA, and the request will be submitted directly to the agency.
When the approval of the agency is received, the SA reviews and enters information into the PeopleSoft GM system. A new Grant Award Summary will be issued.
Alternative Process
There are some other acceptable alternatives to the above process. Some agencies will accept an email request for re-budget. Again the request should be routed through OSPA for institutional approval. The SA will only process a written approval from an authorized representative of the agency. It may be an email approval.
Internal Re-Budget
A form UM 118, Internal Re-budget Request Form may be submitted and signed by the PI. The budget category changes are included in Part I. The justification is included in Part II. When relevant, the change in scope is described in Part III. The SA reviews, and if approved, the SA signs and dates the form. The form is forwarded to the Associate Director for approval. The approved form is returned to the SA, who enters it into the PeopleSoft GM. A new Grant Award Summary will be issued.
Alternative Process
There are other acceptable alternatives to the above process. An email request or a letter request may be processed, if it has the right components of budgetary changes, justification, and signature of the PI.
CREATE MOCODES
MoCode may need to be created at the request of the department for cost sharing or other reasons.
To create a MoCode:
1. Go to MIS Web Applications website () and login.
2. Select MoCode Create.
3. Enter the FUND, DEPTID, PROGRAM, PROJECT, and CLASS.
4. Enter a description that is useful for identifying the purpose of the MoCode.
5. Click Submit.
6. If there is not an existing MoCode for this chartfield string, the system will say so.
7. Select allow payroll if salary is to be charged to this chartfield string.
8. Click Create.
To inactivate a MoCode:
1. Go to MIS Web Applications website () and login.
2. Select MoCode Create.
3. Enter the FUND, DEPTID, PROGRAM, PROJECT, and CLASS.
4. Click Submit.
5. The system will provide the MoCode specific to that chartfield string.
6. Click the Inactivate MoCode button and click Submit.
7. Click Save.
AWARD LISTING
Login to Web Applications:
PS Financial Reports
Grants
Rpt 7: Award Listing
Click: GO
Features that can be used:
Business Unit
Select the business unit from the drop box
End-Date From
Your beginning date should be as early as possible and your end-date should be as far in the future as possible. This will ensure that your listing will include all awards asked for. To limit to a specific time period just type those dates in these fields.
Project Status
Click on the drop box arrow and choose the status that you want.
All Open Closed
Sponsor ID
Type in the customer ID if you know it or click on the drop box and you will have a panel that has the following fields:
Sponsor ID
Short Name
Name 1
You can search by using short name or name 1. The search engine is case sensitive, so notice that items under both selections are in all caps. There is also a wild card that can be used when searching. It is the percent sign (%). By using this at the beginning and end of partial names it will find sponsor names that include this item. Notice at the bottom of this panel there is the message: “More matching entries were found then can be displayed”. Only 300 items can be displayed at one time, so the use of the wild card can be useful.
Short Name is limited to ten characters and there are no criteria for making a short name. This makes it hard to use.
Name 1 is the full name of the sponsor and thus is easier to use.
Type in your criteria in the field you are wanting to use and click search – you will see a list of sponsors that match. Now you can scroll down and find the one your are looking for.
Bill Specialist
This will be the OSPA number of the senior accountant.
Reports to Sponsor
This is used to run reports for a specific sponsor. You probably use the same customer id here that you used in the Sponsor ID field.
Billing Cycle
By leaving this field blank your list will include all billing cycles and you will not be able to access the Billing Cycle To field. To run a listing for specific billing cycles you can use the drop box to find the one you want.
Billing Cycle To
This will only be accessible if you entered a cycle in the previous field. You can limit the cycles by inputting the same cycle as the previous field or you can enter other cycles and receive a listing with multiple billing cycles.
Department
You can use this field to limit your report to one or more departments. By leaving this blank you will get all departments and you will not be able to access the Department To field.
Department To
This will only be accessible if you entered a department id in the previous field. You can limit the departments by inputting the same id as the previous field or you can enter other department Id’s and receive a listing with multiple departments.
Report Order
This is used for determining the order in which the projects will be printed in the report. Click on the drop box arrow to see your choices.
Award Status
Most of the time you will pick other. Pre-award will be marked only when you want a listing of pre-award projects that have been set up.
Financial Selections
Of the four choices, all will be used most frequently. The other three are used to list projects with those particular financial situations.
Print Notes
Select from the drop down box from three choices
Full-page notes
Half-page notes
Or no notes
The initial results on the screen do not show the notes. You can see the notes only when you select Format to Print.
INVOICING AND RECORDING ACCOUNTS RECEIVABLE
A. Review of Transactions before Billing
Payroll Entries
• “Upon receipt of the Grant Award Summary, the department administrator should make sure that all necessary PAFs and PCEs are processed to record payroll to the grant and cost share chartfields.”
Verifying Correcting Entries
• Each SA is responsible for reviewing correcting entries (CE’s) for their grants each month.
SA’s should review all CE’s to determine the validity of the transaction. They should consider the following:
• The grant’s budget
• Dollar’s available to be spent
• The grant’s period of performance
• Audit Trail Documentation
• Adequate Justification
Any questions or problems with the entry should be directed toward the preparer. If the SA does not approve of the transaction, he/she should state why approval cannot be made in the comments and contact the preparer about reversing the entry.
The SA may be requested to review transactions that are not CE’s. Upon the request, the SA should review the transaction and make a comment in the comment’s section giving their approval or not.
Subcontract Expenses
• The SA should determine that the invoice is mathematically accurate, the cumulative amount is accurate based upon prior invoices, the F&A is calculated correctly, the invoice is certified and signed by authorized official, and that the subcontract is fully executed. The invoice should be compared to the terms of the agreement to determine that the period of performance falls within the period of the subcontract and that the cumulative amount of the invoice does not exceed the agreement amount. The SA will verify that the subcontractor has not been debarred by checking the Excluded Parties Listing System. The website is . The SA does not need to verify debarment for federal agencies.
If the invoice is deemed to be valid, the PDF file is sent to the Principal Investigator (PI) for signature of approval. It is the PI’s responsibility to verify the performance of the subcontract and to approve invoices for payment.
F&A Variance report
• The SA is required to verify that all F&A variances are corrected before invoicing or draws occurs. This will prevent us from asking for incorrect amounts from sponsors. Any changes that are needed to the attributes will be sent to the AD. JE’s may also be needed, and these will have to process before invoicing.
Before Invoice is given to Associate Director:
• The Senior Accountants will scan the detailed transaction listing (Income Statement #9) to determine if there are any questionable expenses posted for a certain time period. The accountant will select a questionable transaction, review it, and determine if the cost is allowable per the grant or not.
• The Senior Accountants will check the budget variance reports to determine if the actual expenditures exceed what was budgeted in an account. If the budget is exceeded, then the Senior accountants will verify the expenditures to determine if they should be allowed or not.
• A cash reconciliation is done to verify the invoice amounts.
• The accounting basis selected on reports is Accrual basis.
• Cost reimbursable GL backup that shows how the invoice ties out to the general ledger.
End of the Grant
• At the end of the grant, the SA will verify the final expenses with the department fiscal person. Review any expenses that were recorded after the end date for period of availablilty. Ask if there are still outstanding expenses that have not been recorded yet in PeopleSoft. If so, detailed documents will be needed for them to be included on the invoice.
B. Processing Invoices and Recording in Accounts Receivable
While you are reviewing new awards there are a few things to note for invoicing: 1) What is the customer number or ID 2) Is the sponsor making scheduled payments, do we have scheduled invoices, or cost reimbursable invoices and 3) other invoicing instructions.
The customer number is recorded in PeopleSoft Grants in Billing Information. It is also included on Web Reports, Report #7 Award Listing. To find the number in PeopleSoft Grants:
PS Grants>Awards>Award Profile
Click on View Contract
On General Tab, click on Billing Plans
Click on Plan B101 hyperlink
See Customer Information Section, Bill to Customer box.
Definitions:
Scheduled Invoicing – are invoices that have set dates and amounts. Date intervals and amounts will not necessarily be the same. The actual dates and amounts will be documented within the award document.
Cost Reimbursable Invoicing – are invoices that show actual expenses by category. They are usually done monthly but sometimes quarterly. These invoices can have many different formats. The most used formats have templates set up in Excel.
To open an invoice template go to Excel and click on Open a File. From the drop down box find the OSPA drive (g:). Find the folder invoice templates and you will see a list of files for invoicing. There are three files for each type.
SCHEDULED INVOICING
Open the appropriate FP invoice in Excel. You will save this to the file name of your choice. To save click on file in the upper left hand corner and then click on “save as”. Now enter your file name. Usually this is the project number preceded by the business unit abbreviation, C E or A. Now click on the drop box arrow in the save in field. You will find the drive to save the file to. Normally this will be your personal drive. It will be labeled with your system login name and be f: drive. Click the appropriate drive and all its folders will appear. You can use one of these or set up a new one. If using a current folder, double click to open it and then click the save button.
To set up a new folder just click on the “Create New Folder” icon between the delete and views icons on the header panel. Type in the folder name and click OK. A window within this folder will open and you can save your file.
Once saved you can start setting up the invoice. Start by inputting the billing address in the box starting with “TO”. The address can be found in the award document. The MoCode, DeptID, and Project number can be found at the top of the Grant Award Summary (GAS). The agreement amount and agreement period are found on the line that starts “This Award” on the GAS. You will need the Customer ID now. Project Director or PI is found in the description box of the GAS. Enter the date for the scheduled payment. In voice number will be the project number followed by an invoice number (e.g. 00003512 – 1). If this is the last invoice then you will had “FINAL” after the invoice number. Invoice period can be left blank or you can add a short description that relates to that particular invoice (e.g. 15% of award, 4th scheduled payment, Final). Department will be found on the GAS in the upper right hand corner field. Campus will be found at the top of the GAS as “BU”. Project title is found in the field on the GAS with the same name.
In the “Description/Purpose” field you will find the words “PER THE EXECUTED CONTRACT BETWEEN THE CURATORS OF THE UNIVERSITY OF MO AND” you will add the sponsors name to this statement and that will be found in the field on GAS titled “Agency Name”.
Now you will list a description for the current payment (e.g. payment 1, percent at execution of contract, etc.). Under “Cumulative Amount Invoiced” you will input the amount of the invoice and you will also put this amount in the “Current Invoice Amount” column.
“Amount Due This Invoice” should equal amounts listed in the current invoice column.
For each additional invoice you will need to add a new payment description and new cumulative and current invoice amounts. The previous amounts in the cumulative column will always be present. The previous amounts in the current column should be changed to zero.
Invoice Review:
Make sure all data used from GAS matches the GAS. At the lower left hand corner the following information should be there:
Make Check Payable To:
University of Missouri
PO Box 807012
Kansas City, MO 64180-7012
Under this the customer number and invoice number should appear.
Finally make sure the correct name and title is listed for the person that will be signing the invoice. This person is required to be an authorized signer for the institution. A-21. Section K. reads as follows:
K. Certification of charges.
1. To assure that expenditures for sponsored agreements are proper and in accordance with the agreement documents and approved project budgets, the annual and/or final fiscal reports or vouchers requesting payment under the agreements will include a certification, signed by an authorized official of the university, which reads essentially as follows: "I certify that all expenditures reported (or payment requested) are for appropriate purposes and in accordance with the provisions of the application and award documents."
COST REIMBURSABLE INVOICING
F&A Variance report
• The SA is required to verify that all F&A variances are corrected before invoicing or draws occurs. This will prevent us from asking for incorrect amounts from sponsors. Any changes that are needed to the attributes will be sent to the AD. JE’s may also be needed, and these will have to process before invoicing.
Open the appropriate CR invoice in Excel. You will save this to the file name of your choice. To save click on file in the upper left hand corner and then click on “save as”. Now enter your file name. Usually this is the project number preceded by the business unit abbreviation, C E or A. Now click on the drop box arrow in the save in field. You will find the drive to save the file to. Normally this will be your personal drive. It will be labeled with your system login name and be f: drive. Click the appropriate drive and all its folders will appear. You can use one of these or set up a new one. If using a current folder, double click to open it and then click the save button.
To set up a new folder just click on the “Create New Folder” icon between the delete and views icons on the header panel. Type in the folder name and click OK. A window within this folder will open and you can save your file.
Once saved you can start setting up the invoice. Start by inputting the billing address in the box starting with “TO”. The address can be found in the award document. The MoCode, DeptID, and Project number can be found at the top of the Grant Award Summary (GAS). The agreement amount and agreement period are found on the line that starts “This Award” on the GAS. You will need the Customer ID now. Project Director or PI is found in the description box of the GAS. Enter the date for the scheduled payment. In voice number will be the project number followed by an invoice number (e.g. 00003512 – 1). If this is the last invoice then you will had “FINAL” after the invoice number. Invoice period will be the time frame covered by the invoice (e.g. 12-01-2003 to 12-31-2003, 10-01-2003 to 12-31-2003, or any other period that applies). Department will be found on the GAS in the upper right hand corner field. Campus will be found at the top of the GAS as “BU”. Project title is found in the field on the GAS with the same name.
In the “Description/Purpose” field you will find a list of expense categories. These can be changed as needed.
In this file there is a macro set up to fill in the invoice for the amounts. Scroll up to this macro. It will have the same expense categories as the invoice form. To do the invoice you will have to go to the financial web reports and to print a report. You will go to the income statement reports and select statement number 9 and click go. Fill in the DeptId and the Project number and change the Month to the month that you are doing the invoice for. You can print this out or switch back and forth between the windows for your information. You will input the expense numbers from the PTD column of the report to the Total to Date column of the macro. On the first invoice this will be all you have to enter for the expenses. On the following invoices you will copy the amounts from the total to date column in the macro to the prior cumulative column and then input the YTD expenses from that months report.
Invoice Review:
Make sure all data used from GAS matches the GAS. At the lower left hand corner the following information should be there:
Make Check Payable To:
University of Missouri
PO Box 807012
Kansas City, MO 64180-7012
Under this the customer number and invoice number should appear.
Finally make sure the correct name and title is listed for the person that will be signing the invoice. This person is required to be an authorized signer for the institution. A-21. Section K. reads as follows:
K. Certification of charges.
1. To assure that expenditures for sponsored agreements are proper and in accordance with the agreement documents and approved project budgets, the annual and/or final fiscal reports or vouchers requesting payment under the agreements will include a certification, signed by an authorized official of the university, which reads essentially as follows: "I certify that all expenditures reported (or payment requested) are for appropriate purposes and in accordance with the provisions of the application and award documents."
Cost Reimbursable Invoice Review
All requests for reimbursement on a cost reimbursable basis will be reviewed by the Post Award Director. The review will ensure that there is adequate GL backup documentation to support the expenditures on the Invoice. Additional checks may include checking for Accrual Basis, period covered by request, etc. On a random basis, an invoice may be selected to undergo a more rigorous examination to ensure that the preparation of and contents of said invoice complies with existing procedures and policies. 1/17/2007
Recording Invoices in Accounts Receivable: (you should not need to use this with automated invoicing).
Login to PeopleSoft:
Accounts Receivable > Pending Items > Online Items > Group Entry
Add new value.
Select the Business Unit, Group ID: next click Add
The Acctg Date field will be highlighted. Input the invoice date and tab to the Group Type field. Here you will input the letter B, always. Now tab and you will put OBILL, always, in the Origin ID field. Tab to the Control Currency and you will always put USD here.
You will now tab to the totals section of the panel. In the first field you will put the amount of the invoice and then tab and you will enter 1 for the number of invoices being recorded. This is all that needs to be input on this panel.
Go to the tabs at the top of the screen and click on “Pending Item 1”. The Acct Date field will be highlighted. This should be the same date as the previous panel. Tab to the Item ID field. Here you will usually enter the invoice number of the invoice you are recording. Tab to the customer field. Enter the customer number off of the invoice and then tab to the next field. Input the invoice amount. In the Entry Type field you will enter DR. Leave the AR Dist. Field blank. This is the last entry on this panel.
Go to the tabs at the top of the screen and click on “Pending Item 2”. Make sure that the collector is your OSPA number. This is necessary primarily for invoices to universities, which have a default of OSPA1.
Click on the “Accounting Entries” tab at the top of the screen. You will then click on the lightning bolt button to create the accounting entry.
Click on “Group Action” at the top of the screen. This is where you tell the system to balance the entry just done. Click Balance.. You can also delete the entry made by clicking “Delete Entries” or you can delete the whole group by clicking “Delete Group”
Construction Projects:
After month-end processing is completed, the SPA responsible for construction projects will transfer the balance in Project Managements chartfield to the appropriate grants project. This transfer will be done with a JE, using the 862001 accounts for both sides of the entry. The transfer amounts will then have a reimbursement request prepared for them, with the revenue to be put in the grants project. Each month the Associate Director will review a report of activity on the construction projects to ensure that proper procedures are taking place and that we are within the period of availability for each project.
MONITORING ACCOUNTS RECEIVABLE
Viewing Accounts Receivable in PS 8.8
One way to view open and/or closed items for a customer
Accounts Receivable
Customer Accounts
Item Information
View/Update Item Detail
Chose the customer number 889900xxxx
Select status blank, open, or closed
You can drill down on closed items to see when they were paid, by check or by ARR, etc.
To Check if AR’s went through:
Accounts Receivables > Receivable Update > Correct Posting Errors > Online Items
Click on the items next to your OSPA name, the item will open. Then you can correct the entry.
Query of Outstanding Receivables
A query has been created that lists all outstanding receivables for sponsored programs customers. The query is run from PS Finance Reporting. Select Reporting Tools>Query>Query Manager. Search for the query by entering the first few letters of the query name. OPEN_ITEMS_BY_AMOUNT_GM_ONLY. Click on the hyperlink for running to Excel. The list will include all outstanding items for sponsored programs customers. The list can be sorted by Collector, which is the responsible accountant. Invoice numbers are created by using the project number. Therefore, outstanding invoices by project are identifiable. The accounting date is also identified so that you can use the query to age the receivables. If the SA’s want a listing of the receivables for one Collector, use the query OPEN_ITEMS_BY_OSPA_NO_GM_ONLY, Type in the OSPA number when the prompt comes up for Collector.
Determining if an Invoice is Paid
You can determine if a payment has been made on an invoice and view any adjustments to the invoice amount in the PeopleSoft panels. Go to Accounts Receivable>Customer Accounts>Item Information>Item List. Enter Business Unit and Customer Number. Select status of open, closed or all. Search. Select the invoice in the resulting list. Click on the hyperlink of the invoice description. Select tab: Item Activity. Payments will either reference WORKC (lockbox payment), AR Maint (lockbox payment matched after received), an ARR number, or a check number. Dates are provided for the invoice and the payments.
Notification of Matches to Accounting Services
Outstanding debits and credits that equal each other may exist for a sponsor. The lock box may have not had enough information to correctly apply a payment or the accountant may have entered a correcting item or reversal due to an error in billing. If outstanding debits and credits need to be matched off against one another, accounting should be notified. The customer number, item numbers, and amounts need to be emailed to the individual designated in Accounting Services to match the debits and credits. As of October 17,2005 the contact person is Billie Holliday.
Dunning Letters
Accounting will provide sponsored programs with dunning letters for overdue receivables. The letters are generated by sponsor number. The letters will identify the collector as well as the items overdue. Each SA will review the letters to determine if the dunning letter actually needs to be mailed. Letters approved by the SAs will be mailed to the sponsors.
Monitoring Status of Preaward Accounts for Billability
Run an award listing by accountant for each business Unit. Run the award listing for preaward accounts only. Identify any preaward projects with large expenditures. Follow up with the preaward staff to see if an award has been received but not processed. Identify any preaward projects that can be invoiced and prepare the invoice.
ARBI COLLECTION AND WRITE-OFF POLICY
Aging: Invoice age is based on the accounting date, which is the date the invoice is keyed into the system.
Aging Report: An open items report is available in PS Query. The report is based on “Collector”, which is the code for a Senior Accountant in an OSPA office. The query is run after the close of a prior month, and is emailed to the Senior Accountants by the Associate Director. Senior Accountants have been trained on accessing the open items report and are responsible for making sure that their receivables are accurate.
Monitoring ARBI: Senior Accountants are expected to monitor the ARBI open items list for credits that may offset existing open items. When they find these, they will work with Accounting Services to remove both entries. This will prevent Dunning letters from going to sponsors that have paid their invoices.
Dunning Letter 1: The first dunning letter is sent out to a customer that has an open invoice that is over 60 days past the invoice date. The dunning letter will pick up all invoices for that sponsor that are 31 days past the date of the invoice(s). The letters are generated by System Accounting and then mailed by the fifteenth day of each month. A copy will be sent to campus office, to be placed in the permanent file.
Dunning Letter 2: The second dunning letter is sent out to a customer that has an open invoice that is over 90 days past the invoice date. The dunning letter will pick up all invoices for that sponsor that are 31 days past the date of the invoice(s). The letters are generated by System Accounting and then mailed by the fifteenth day of each month. A copy will be sent to campus office, to be placed in the permanent file.
Legal Letter: Legal letters are sent out to all customers that have invoices over 140 days past the date of the invoice if they are over $50. As required by the Legal department these letters must be for items over $50.00. These letters are printed by System Accounting and signed by a University attorney and mailed by the fifteenth day of each month. A copy will be sent to campus office, to be placed in the permanent file.
Write-offs: Departments are notified at the beginning of each month by Accounting Services to check the upcoming Write-off Report in the PeopleSoft AR system. This reminds the department of those invoices that are still open after all letters have been sent. The department reviews this list and makes any final effort at collection. At the end of the month all the invoices on the list will be written off. All write-offs are done in the campus accounting departments and are to be reviewed and approved by someone designated by the Accounting Director before the actual write-off is completed. Documentation of the write-off is noted in the AR system by creating a “conversation” note.
Delay in Write-off: Due to the nature of many of our customers it may be necessary for departments to request a delay in write-off to allow more time to collect the outstanding invoice. There is a “Delay of Write-off” form that the departments can fill out and send to Accounting by the fifteenth of the month to request a one-month delay. Accounting reviews the reason for the delay and it will be approved if there is a legitimate reason. For example: the department may have worked out a payment plan with the customer, or the customer might not have the funds appropriated for another few weeks.
Collection after Write-off: Invoices $100 or greater are sent to a collection agency. (There is some discretion here, for example several smaller invoices for one customer might be sent to collections.) If the invoice is collected, a reverse write-off transaction is done in PS for the total amount collected. The invoice is noted in a “conversation” as being collected. The charge for the collection fee is processed to the department outside the ARBI system.
How to re-print a system generated invoice:
Re-print a system-generated invoice:
Billing > Generate Invoice > Non-Consolidated > Reprint Invoices
Under Finding an existing invoice, Select “Search”
Select a Run Control Id (if you don’t have one create one)
Under Range Selection select “Invoice Id”
Enter the business unit and invoice number
Select “Run”
Check the box next to “Grants Print Portrait Invoices”
Default on the Process List Type is set to email, which you can change
Click “OK”
Once the process is at “success”, the SA should receive the invoice by email (that is if the type is set to “email”).
Recording A/R Conversations in PeopleSoft
Add a conversation to an individual invoice:
Accounts Receivable>Customer Accounts>Item Information>Item List
Enter the Customer Number
Click on Invoice
Then add conversations (button on the bottom of page)
Add a conversation to a customer:
Accounts Receivable>Customer Interactions>Conversations>View Update Conversations
Select the “Add a New Value” Tab
Enter the Customer Number. A new screen appears with three tabs, with the “Conversation” tab containing the vital information.
The vital data is
Status: Choices are New, Open, Close.
New is assigned by the system with a new note
Open is used for a review or response note
Close is used when the issue is resolved. All notes for this issue change to closed.
Description: Anything can be entered.
Review days: Enter number of days that the system should wait to notify you to look at again OR
Review date: Enter a date that the system should notify you.
Done: This box needs to be checked when the item is resolved , or the system will keep notifying you.
Amount: Enter the amount related to this item.
Promise Date: Enter the date we expect to receive payment
Confidence: Choices are High, Medium, Low
Contact ID: If the person you are working with is not in the system.
Comments: Enter the details of your conversation.
LETTER OF CREDIT DRAWS
Many grants are reimbursed using a letter of credit (LOC) system. These systems provide a means for SA’s to obtain payment on cost reimbursable grants without submitting an invoice and for distribution of federal appropriations (formula funds).
The manner in which the LOC is accessed is determined based upon the specific agency and each LOC may have specific cash reporting requirements with which the SA must comply.
F&A Variance report
• The SA is required to verify that all F&A variances are corrected before invoicing or draws occurs. This will prevent us from asking for incorrect amounts from sponsors. Any changes that are needed to the attributes will be sent to the AD. JE’s may also be needed, and these will have to process before invoicing.
Managing Cash
The SA is responsible for managing the cash position of their respective LOC’s. A cash reconciliation is to be done to verify the draw amounts. Each SA should insure that the cash position for the LOC is negative but as close to zero as possible. The draws should be prepared weekly (unless the size of the LOC makes it necessary or reasonable to prepare draws more or less frequently) based upon the cash positions of the grants involved. SA’s can determine expenses on their letter of credit by using the query G_LOC_BUD_EXP_PTD for the LOC’s fund number. After a month closes, the SA can use the Grants Management Report: LOC Report. The Website is: \\um-ics-fs1\psreports\Grants_Management\Letter_of_Credit_Reports\200506.
The draw should be 95% of the eligible expenses. The Post Award Associate Director reviews prior to approving the draws. Changes are made as needed. Once the SA performs a draw, he/she should prepare a distribution list that details the MoCodes and/or projects to which the cash should be recorded. An accounts receivable open item is processed with the full amount to one chartfield. At month end DHHS and NSF revenue is automatically allocated to specific grants. For all other draws, the SA prepares a JE to allocate revenue from AR proect to the appropriate grants.
Final Numbers
The SA’s from each campus are responsible for providing the final amounts to the SA that draws the funds for the institution. The procedure is to put a note in PeopleSoft (where it will print on the award summary), so that the SA drawing the funds can easily see what the final amount is. This is very important, so that the system works properly.
QUERY OF LATE PAYROLLS
(NOT AVAILABLE SINCE APRIL 1, 2005)
CORRECTING ENTRY APPROVALS
Each SA is responsible for reviewing correcting entries (CE’s) for their grants each month. In order to view CE’s, the SA would go to MIS Web Applications and click on PS Journal Entry. The SA would then select Retrieve Transactions.
The fields should be selected as follows:
Business Unit ----- Any
Journal Begin Date ----- Any day of the month
Journal End Date ----- A day < or = 30 days from begin date
Source ----- CE PS- JE Correction (Web)
OSPA ----- OSPA# (for instance OSPA1)
Then, click on Search or Summary Report. Search will provide a list of Journal Entries. Summary Report will provide more journal entry detail.
SA’s should review all CE’s to determine the validity of the transaction. They should consider the following:
• The grant’s budget
• Dollar’s available to be spent
• The grant’s period of performance
• Audit Trail Documentation
• Adequate Justification
If the SA’s award is on the debit side of the entry and there are no other debit entries, the SA should click the approval button. If the SA’s award is on the credit side of the entry or there are multiple chartfields being debited, the SA should make a comment in the comments section of the entry and hit submit.
Any questions or problems with the entry should be directed toward the preparer. If the SA does not approve of the transaction, he/she should state why approval cannot be made in the comments and contact the preparer about reversing the entry.
The SA may be requested to review transactions that are not CE’s. Upon the request, the SA should review the transaction and make a comment in the comment’s section giving their approval or not.
GRANT CLOSE OUT
Close Out of Cost Reimbursable Agreements
The SA will be responsible for the following:
Verify the final expenses with the department fiscal person. Verify that all subcontractor vouchers have been submitted, approved, and paid. Review accounts for any expenses that were recorded after the end date. Ask if there are still outstanding expenses that have not been recorded yet in PeopleSoft.
Check award documents for other reporting requirements. Examples might include reports of equipment purchased or loaned, lists of patents/inventions, or statements of excess supplies on hand. Work with the PI and department administrator to complete any required reports.
Check the F&A calculation. Prepare any journal entries to correct as needed.
Determine whether all funds have been collected. If not, prepare a final invoice, a final draw, or contact the sponsor if the grant is fully invoiced but payment is delinquent.
Prepare a financial report if required. For many sponsors, the final invoice will be sufficient. For federal sponsors, a SF269 is often required and due within 90 days of the end date. Non-federal sponsors may have a specific report format and a different time frame for when the report is due.
Monitor accounts receivable open item query, for collection of the final payment on the grant.
When all payments have been received and all expenses have been recorded at the reported amount, proceed to the PeopleSoft close out of the project. This involves making the project number inactive, inactivating the MoCode, and setting the project status to closed.
Close Out of Fixed Price and Fixed Unit Price Agreements
The SA is responsible for the following in closing out total fixed price accounts:
Verify with the department administrator that all grant expenses have been recorded.
Determine that F&A calculation is correct. Make sure that F&A is fully recovered. If the grant is fixed unit price, make sure that F&A reflects actual units. Prepare journal entries to correct F&A as necessary.
Determine whether all funds have been collected. If not, prepare a final invoice, a final draw, or contact the sponsor if the grant is fully invoiced but payment is delinquent.
If there are remaining funds (i.e. the cash collected exceeds the expenses recorded), contact the department administrator to request the MoCode of the total fixed price account to which the remaining balance should be transferred. It may be necessary to add budget to the grant project to transfer out funds.
Come to an agreement with the department administrator about the total amount to be transferred and prepare the entry as follows:
Chartfield Account Debit Credit
Grant Chartfield 867000 $balance
TFP Chartfield 393700 $balance
Once a zero balance is confirmed (cash collected = expenses recorded), proceed to PeopleSoft closeout. This involves making the project number inactive, inactivating the MoCode, and setting the project status to closed.
Close Out in PeopleSoft
A grant can be closed out in the general ledger and grants module when several criteria are met.
• A grant has passed the end date.
• Revenue collected equals expenditures (which is not more than the budget allowed).
• All final reports (technical, financial, patent, etc.) have been completed.
When these criteria are met, the grant will need to be closed to prevent any further transactions from posting.
Mechanically closing projects in Peoplesoft
• Ensure that revenues equal expenditures and that all money has been collected.
• Go to Grants > Awards > Project Activity
o Change Processing Status to Inactive
o Click Save
• Go to the Activity Status Hyperlink on Project Activity page
o Insert a row
o Change Status to Closed
o Save
• Go to Set up Financials/Supply Chain > Common Definitions > Design ChartFields > Define Values > Charfield Values
o Go to Project Hyperlink
▪ Change the Status to Inactive
▪ Save
EARLY TERMINATIONS
When notification is received that an agency is terminating an award early, OSPA will notify the PI and department immediately.
The senior accountant will review the award to determine the correct close out procedures. Senior accountant will change the end date in the grants module to reflect the change and issue a new grant award summary.
After final expenses have posted to the award, the senior accountant will send a final financial report/invoice to the agency along with any other required documents.
Once all expenses have posted and all revenue has been received, senior accountant will close the grant in the general ledger and in the grants module.
CHANGE OF INSTITUTION
The sponsor may change the recipient of the award if a PI changes institutions or if there ceases to be a PI available at the initial institution to lead a project.
The University is the recipient of an award that was previously awarded to another institution.
This type of change will be handled as a new award to the University of Missouri. When the agreement is fully executed, it will be set up and forwarded to the senior accountant.
The University relinquishes an award that can no longer be spent, since the PI is changing institutions.
When the PI moves to another institution, the chair of the PI’s department needs to determine if a replacement PI can be designated. The department chair forwards the name and vitae of the proposed replacement PI to the sponsor through OSPA for approval of the sponsor. If there is no mutually agreed upon replacement PI, the relinquishment process begins.
The revised end date needs to be determined. The final expenditure amount needs to be determined and invoiced or reported. A relinquishment form is required by some sponsors, such as DHHS, NSF. When the sponsor accepts that, the sponsor renegotiates the balance of the award with another institution.
The sponsor notifies the University that the award ended with an amount and with an end date. Accountant reviews the notice. If it is determined that a University signature is required, the accountant contacts the department of the PI for authorization to accept the cessation of the award, the accountant gets the signature of the AD if the department accepts it, and mails the signed form to the sponsor. SA makes changes in PeopleSoft and distributes a revised Grant Award Summary.
COST OVERRUNS
A cost overrun occurs when the total costs recorded on the chartfield exceed the total budget for the budget period. If future funding is anticipated, this is only a matter of timing and no action is necessary. If the overrun is determined to be an error, the excess expenditures need to be identified and transferred to another chartfield.
The PI is primarily responsible for monitoring the grant to ensure that cost overruns do not occur and if they do he/she is responsible for initiating corrective action. The PI should have the departmental fiscal staff transfer the overrun to an appropriate chartfield.
The SA is responsible for monitoring his/her accounts and should notify the PI and the department fiscal staff that corrective action is necessary for overdrafts that the SA has identified. In instances where the overrun is due to errors in the application in F&A, the SA should make the necessary entries to correct F&A and remove the overrun.
Equipment reconciliation
On a monthly basis, the SA assigned to this task will pull data from 1)Asset Management and 2)General Ledger. This data will be compared to ensure that both sources match each other. If there are mismatches, the SA will research those items and resolve by the appropriate means. This report is then sent to the Associate Director.
UNITIZED CONTRACTS
Overview
A unitized contract is a contract between a University Service Center and a customer to provide a variable quantity of service or product at a fixed unit cost. A standard contract has been developed for this purpose. It is the GCA’s responsibility to review any changes from this approved form and obtain legal or other approval. The rate charged should cover all allowable costs in accordance with Cost Accounting Standards and in compliance with Circular A-21.
Unitized projects are set up in the grants module the same as any other project with the following exceptions:
-The fund is 0000.
-The beginning and end dates for the project are the same as the University’s fiscal year.
-Each year, there is a new contract if the project is continuing, but there may not be a new chartfield string.
Billing Process
The billing process will be different, according to the type of contract.
a- For other than fixed price contract, the service center will inform OSPA by the number of units delivered to the donor *(through service- completion sheet, or other appropriate form), accordingly OSPA will invoice the donor for the units (services/products) delivered.
b- For a fixed price contract OSPA will invoice the donor without the need for the service completion sheet.
c- OSPA will send copies of the invoices to the service center and also payment status reports.
Some of the unitized contracts are billed using PeopleSoft billings and other are billed the same as grants projects.
COST SHARING
The recording and monitoring of cost share is primarily the responsibility of the PI and department administration. SA’s should be concerned with cost sharing at three key times during the grant life cycle-award setup, active award, and award close out.
What is Cost Sharing?
Cost Sharing is defined as the process of incurring and documenting direct costs relating to a project that are not reimbursed by sponsoring agency. Cost sharing is normally costs paid by the University but can be costs reimbursed by another source. OMB Circular A-110 provides guidance on what costs can be treated as cost sharing.
Criteria from A-110:
All contributions, including cash and third party in-kind, shall be accepted as part of the recipient’s cost sharing or matching when such contributions meet all of the following criteria:
1. Are verifiable from the recipient’s records
2. Are not included as contributions for any other federally-assisted project or program.
3. Are necessary and reasonable for proper and efficient accomplishment of project or program objectives.
4. Are allowable under the applicable cost principles.
5. Are not paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching.
6. Are provided for in the approved budget when required by the Federal awarding agency.
7. Conform to other provisions of A-110 as applicable.
A-110 states that unrecovered Facilities and Administrative (F&A) costs may be included as part of cost sharing or matching only with the prior approval of the Federal awarding agency. Other costs of the grant that would be considered a part of F&A cannot be used as cost share, such as use of a University facility.
Types of Cost Sharing
Mandatory Cost Sharing is defined as cost sharing due to a written requirement of the sponsor and the ability to apply for and receive the award is contingent upon the campus’ willingness to comply with this requirement. Mandatory cost sharing requirements will often be stated in the Request for Proposal (RFP), Request for Application (RFA), or Request for Quotation (RFQ). The mandatory match may be stated as a percentage of total costs, a required dollar amount, or may be required due to limitations of costs that the sponsor will reimburse, such as sponsors that will not pay for researchers’ salaries.
Voluntary Committed Cost Sharing occurs when a proposal is submitted in which the proposal text, budget, budget justification, or scope of work states or implies that more work will be done than the sponsor is paying for and cost share is not required by the sponsor. The voluntary committed cost sharing is recorded in the system.
Examples of Voluntary Committed Cost Share:
Proposal Text:
“If awarded, the University will purchase a XYZ model digital camera to enable digital images to be shared with colleagues in remote labs.”
Budget:
Lab Tech Salary $10,000
Lab Tech Fringe $2,500 Note: No budget for PI’s salary
Supplies $3,000
Total Direct $15,500
F&A @ 47% $7,285
Total Budget $ 22,785
Budget Justification:
“Salaries: Dr. Smith will supervise this project but will receive no salary support from the award.”
Voluntary Uncommitted Cost Sharing occurs when nothing in the award or proposal mentions cost sharing but the University is expending resources toward a project without being reimbursed by the sponsor. This includes faculty effort that is over and above that which is committed and budgeted for in a sponsored agreement. According to Memorandum 01-06 to A-21, these costs cannot be included in organized research base for F&A calculation, so they should not be recorded and tracked like committed cost share.
Voluntary uncommitted cost share should not occur at the University of Missouri. PI’s are expected to use sponsor funds whenever possible and avoid cost share that is not required by the sponsor. Therefore, these costs should not be budgeted or recorded on chartfields with grants project IDs.
Therefore, investigators that expend more effort on a grant than was budgeted for in the proposal or agreement may not record that extra effort to a grant project or a cost share account.
Waived Facilities & Administrative Costs are F&A costs that are otherwise available to be recovered by the University, but the University has agreed to accept less than the full amount. The difference between the F&A cost recovery accepted by the University and the amount of F&A that would had been recovered at the full rate may be used as cost sharing upon the sponsor’s approval. When direct costs are cost shared, the University will automatically cost share the associated F&A at the full federally-negotiated rate.
In-Kind Contributions are project costs represented by services, equipment, real property or the use thereof that is donated by sponsors other than the grant award sponsor. An in-kind contribution’s value is considered to be what the cost to the University would have been if the University had paid for the item or service itself. In-Kind contributions may also include the cost share borne by the grants subcontractor.
Salary Cap Cost Sharing is cost sharing required because the salary of personnel working on the grant exceeds a sponsor-imposed limit for individual salaries. This is classified as voluntary committed cost sharing and cannot be used to meet mandatory cost sharing requirements.
Cost Share Commitments
Often, salary voluntary cost share commitments are based upon percent of effort. The language of the proposal should state the effort percentage committed and that the salary and fringe benefit amounts are estimates (if provided). If in preparing a proposal, estimated future salaries are computed based upon a certain effort percentage in developing the cost share budget, the actual cost sharing recorded should agree to the percent effort committed and not necessarily the dollar amount of the budget unless a specific dollar amount is committed.
The exception would be mandatory cost share based upon a dollar amount match. In those cases, the effort should be adjusted to reflect the actual dollar amount required to meet the match’s threshold.
If a PI is not requesting any salary reimbursement on the proposal for himself, there is a minimum amount of voluntary cost sharing that is committed for effort in directing the project. If the effort comprises less than 2.5% of an investigator’s time, it is considered to be untrackable and not entered into or captured in the financial system. If the 2.5% threshold is exceeded, then the effort is rounded to the nearest 5% and entered into PeopleSoft so that it can be recorded.
If any investigator is mentioned in the proposal as providing effort and no salary is requested for this investigator, the effort is voluntary committed cost share. If the effort of the investigator is expected to be incidental (to consult or advise occasionally, i.e., below the 2.5% threshold described above), the proposal can describe the person’s effort as “as needed” and the effort of this person would not need to be documented. If the investigator’s effort exceeds the 2.5% threshold, the cost share is committed and will need to be included in the PeopleSoft proposal budget and documented if awarded.
Voluntary committed cost share can be larger or smaller depending on the presentation of the match in the wording of the proposal. The way that line items in a budget justification are phrased can have a substantial impact on the dollar amount that is committed.
For instance, in the case of investigator effort, being less specific in the budget justification may reduce the amount that is committed. Compare the following:
Dr. Johnson will devote 15% of his effort, with no cost to the project, if awarded.
Dr. Johnson will provide guidance and supervision to this project at no cost.
Language that specifically states what the cost shared effort will be will results in a commitment to that level of effort. Stating that the investigator will provide guidance and supervision commits that investigator, but the amount of effort will not have to be the full 15% and there would be no issue if Dr. Johnson’s effort actually was 10%.
The same case would be true for non-salary cost share. Compare the following statements:
The University will provide an ultra-low freezer ($5,000) if funded.
The University has an ultra-low freezer at its disposal to be used on this project.
By specifically identifying the cost of the freezer, the University would be responsible for documenting $5,000 of cost associated with it as cost share. By stating that there is a freezer available for use, the University does not have to document its cost as match to the grant.
Award Received
At the time the award is received from the sponsor, the PI is responsible for reviewing the award terms and accepting or rejecting them. Awards that required mandatory matching will generally include a matching budget that corresponds with the award budget at the time of the award to avoid confusion in the event that the award amount differs from the proposal. If it does not and the matching requirement is a certain percentage of reimbursed cost, the agreement should state that matching requirement in the terms of the award.
Award Processing
When the PI has accepted an award, the award is generated in PeopleSoft grants module. The GCA will verify with the department(s) that the cost sharing chartfield strings that were entered in the proposal are still correct. The budget will be entered into the Project Budget panels and mocodes will be created for the resulting chartfield strings for both the award and cost sharing. The SA should review the proposal and service files to determine that all committed cost share has been documented in the budget lines of the project or elsewhere if the match is to be provided by another business unit, another grant, or by a 3rd party. The cost share budget lines will have C/S checked.
The budget as entered will be displayed on the Grant Award Summary that is distributed to the PI, his/her department chair, and his/her Dean’s office. The budget for cost sharing is displayed under the sponsor-funded budget with the chartfield string presented minus the class. A specified budget for class is not required, so the class will not be displayed on the Grant Award Summary. In the comment box of the Grant Award Summary, the cost share mocodes will be listed. If there are too many cost share mocodes to fit in the comment box, the cost share mocodes will be listed in the body of the email message that accompanies the Grant Award Summary. The SA should review all of the mocodes to make sure that the chartfield strings match what is entered on the budget panels.
After the award has been set up, it is the responsibility of the PI to notify the necessary fiscal staff responsible for setting up payroll for these grants, including cost sharing.
Active Project
During the life of the project, it is the responsibility of the department to document cost sharing. Upon receipt of the Grant Award Summary, the department administrator should make sure that all necessary PAFs and PCEs are processed to record payroll to the grant and cost share chartfields. For non-salary expenses, the department is responsible for recording the costs to the cost sharing chartfields.
If graduate fee waivers are part of the committed cost sharing, the department should notify OSPA who the student is and what semesters the fees were waived if they have not been recorded to the cost share chartfield but are committed cost share.
If a grant award summary has been received after the grant start date and the cost sharing crosses into the previous fiscal year. It is still necessary to prepare the necessary PCEs to record the cost sharing. This should not cause problems in crossing fiscal years, because the net effect to the DeptID, Fund, and Program code should be zero.
Purchases for supplies or equipment that are to be cost shared must be transferred to the cost share chartfield string when it has been established to properly document the cost sharing.
If during the life of the project, the funding source of the cost sharing needs to change, the department should contact the SA and provide the chartfield string where the cost sharing will now be recorded so that the SA can make adjustments to the budget lines and provide the mocode.
Monitoring Cost Sharing
The recorded cost sharing will show up on Budget Variance Report 8 for the project when the report is run without the DeptID entered. The amount of cost sharing will show up under fund 0000 or whichever fund the costsharing is being recorded on. It will not be included in the fund that the grant is under. There might also be cost sharing recorded in accounts 971000, 972000, 973000, 974000, 981000, and 982000. This is cost share that was recorded prior to January 2002.
To see the detail of the costsharing, you will have to use Income Statement 3. On this report, you will only be able to see cost share recorded by fiscal year. You will need to enter the cost share dept id, the project and the budget period of the fiscal year you want to use (not 0) and run the report. You should be able to drill down to the specific entries recording the cost share.
Please note the cost shared F&A will no longer show up on any of the financial reports. The reporting of this will be prepared by the SA but will not be recorded in GL. It will be calculated by taking the applicable F&A rate and multiplying it by the modified total direct costs and subtracting the actual F&A collectible on the agreement. The applicable rate will also be applied to cost shared direct costs.
Cost Share from Another Business Unit
If a project has cost share that is provided by another business unit, a separate proposal will have been (or will have to be) entered for each business unit involved. At the time of the award, both proposals will be awarded. The project that contains only cost share will have only budget for cost share. In the Project Activity-Description panel of the award, the project for the cost share from the other business unit should be listed. The cost share only project should have a note in the Project Activity-Description panel that identifies which project it is providing cost share to.
When providing cost share reporting, the SA should include cost share from both business units.
Third Party Cost Share
If a third party is providing cost match for an award, the GCA will have obtained a commitment letter from the third party at the time of the proposal. It is the responsibility of the PI to obtain documentation from the third party that the match has been provided and dollar value of the match. Third party match should be valued at the same cost the University would have to pay if it purchased the goods or services itself.
Third party cost share may include cost sharing performed by subcontractors. If this is the case, the SA should request a report of cost share from the subcontractor prior to closing out the grant.
Cost Share from Other Grants
In some instances it is possible for third party cost share to come from other grants. This generally only takes place when the award providing the match is funded by non-federal funds. In cases where match is being provided by another grant, there will not be budget entered into the budget panel of the grant using the cost share. There should be a note made in the award panels that identifies which grant is providing the cost share by project number and the amount of match provided.
If a grant is being used as cost share for another grant, the SA should make a note in the Project Activity-Description panel stating that it is used for cost share and which project it is providing cost share to.
Grant Close Out
The final method of documentation of cost sharing is the final financial report submitted to the sponsor at the end of the grant. Generally, the SA will verify that all expenses are recorded to a grant and prepare and submit a final report and/or invoice to the sponsor that includes cost sharing amounts. At this time waived F&A and F&A on cost shared direct costs will be calculated by the SA and included in the total costs of research. The SA will make sure that all cost share (including third pary) has been included in the final report.
Cost share provided by third parties will have to be verified prior to the preparation of the final financial report. It is the responsibility of the PI to obtain written verification of the support provided including the dollar amount if verification is not provided to the accountant on subcontractor invoices.
SUSPENSE MANAGEMENT
When a payment is received for which there is no executed agreement, the OSS II records the payment to the Suspense Account. Once the agreement is executed and there is a chartfield string to record the payment to, the SA is responsible for transferring the revenue out of suspense as follows:
When doing a CE to move money from suspense to project account:
1 Pull the CRR with check stub from the Suspense File.
CRR's are filed alphabetically by agency. If the CRR is NOT in the file print one off of Web Reports.
2 Use a CE not a JE
3 In the Description field enter the CRR number of the deposit.
If there are more than one CRR enter "Multiple CRR's" in this field and list them in the Preparer’s Comments field as instructed in step 5.
4 Enter the chartfield information in the body of the CE paying attention that the
PS account number used is where the deposit was put. All should be in 495000.
5 In the Preparer Comments field include the proposal number and name of the agency for each line.If multiple CRR's are being referenced enter the CRR number for each line. If one line moves revenue for multiple CRR's list all of them and the amounts for each.
6 After hitting the submit button document references need to be entered. List all CRR's/JE's involved in the transfer.
7 Put a copy in the file.
Reconciling the Suspense Account
For the SA responsible for reconciling the Suspense account, the following steps will need to be performed on a periodic basis.
1. Enter any outstanding CRR’s (located in the Suspense In-Box) onto Suspense Tracking List spreadsheet located in Suspense file in Chad Hampton’s Folder on G Drive. Then file the CRR’s by agency in Suspense hanging file.
2. 2. Using Income Statement #1 in MIS Web Reports enter DeptID A0702002 and UMSYS in business unit. RUN REPORT. Change period to YTD.
3. If transfers were done correctly you should be able to use the Description column to enter Journal Numbers onto Tracking List using CRR number to match entries.. If not, you will need to drill down on the journal number and get CRR number then match up.
4. Once all transfers have been matched up insert a new worksheet naming it the As of (Date at the top) of the list. Then copy list to new worksheet. This provides a back up of previous list distributed to Senior Accountants.
5. On “working” sheet delete lines that have journal ID’s reflecting transfer. Total Amount column, this should balance back to the Income Statement. If not, review transactions to make sure everything has been added to the list and/or deleted.
6. Once the Suspense List spreadsheet balances Income Statement #1 the list should be printed and distributed to the Senior Accounts to look for any money they can transfer to one of their accounts.
7. Send monthly balanced and reconciled suspense spreadsheets to Tracy Greenup at System.
PROGRAM INCOME ACCOUNTS
Definition
As defined in OMB Circular A-110, SUBPART A – GENERAL, Sec. ___.2
Program income means gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the award (see exclusions in paragraphs ___.24 (e) and (h)). Program income includes, but is not limited to, income from fees for services performed, the use or rental of real or personal property acquired under federally-funded projects, the sale of commodities or items fabricated under an award, license fees and royalties on patents and copyrights, and interest on loans made with award funds. Interest earned on advances of Federal funds is not program income. Except as otherwise provided in Federal awarding agency regulations or the terms and conditions of the award, program income does not include the receipt of principal on loans, rebates, credits, discounts, etc., or interest earned on any of them.
Program Income Set Up
If a project will have program income, it is to be tracked using the same chartfield string as the sponsoring project, but will use fund 2199 to record revenues in. This will accomplish two things: One is that on the financial application screens the user can see both the project charged data, and the program income data separately. Also, this will make it easier to remember to close out the program income when the project is complete. In PeopleSoft, there is a place to show that there is program income and what the projected amount will be.
Set Up In PeopleSoft
• Receive request from department about setting up a program income account. The program should provide the project, DeptID, estimated budget items and accounts needed. Program Income budgets should ALWAYS be with the project it is associated with. That is why we always use fund 2199.
• Create a MoCode for the program income account. Always use fund 2199 for your program income account.
• Postaward now has the ability to create program income budget
• Go to Commitment Control > Budget Journals > Enter Budget Journals
o Click Add under Add a New Value tab
▪ Ledger Group will be PROJ
o Go to Budget Lines Tab
▪ Budget Period will ALWAYS BE 0.
▪ Enter your account, fund (WILL ALWAYS BE 2199 FOR PROGRAM INCOME), deptid, program, class, project and amount for that account. These should have been provided by the department.
▪ If you need to add another line or multiple lines for additional accounts, click the + button. If not, then Save the entry.
▪ Then make sure the process is Post Jounal and click process.
• Go to Commitment Control > Budget Journals > Enter Budget Journals
o Click Add under Add a New Value tab
▪ Ledger Group will PROJ_P
o Go to Budget Lines Tab
▪ Budget Period will ALWAYS BE 0.
▪ Enter your fund (remember 2199), project, and total amount for the program income budget.
▪ Click Save
▪ Then make sure the process is Post Jounal and click process.
You should now have Program Income budget posted and the department will be able to post expenditures. Make sure you provide the program income detail to the department when completed.
Management
See OMB Circular A-110, SUBPART C – POST-AWARD REQUIREMENTS, Financial and Program Management, Section ___.24
(a) Federal awarding agencies shall apply the standards set forth in this section in requiring recipient organizations to account for program income related to projects financed in whole or in part with Federal funds.
(b) Except as provided in paragraph (h) below, program income earned during the project period shall be retained by the recipient and, in accordance with Federal awarding agency regulations or the terms and conditions of the award, shall be used in one or more of the ways listed in the following.
(1) Added to funds committed to the project by the Federal awarding agency and recipient and used to further eligible project or program objectives.
(2) Used to finance the non-Federal share of the project or program.
(3) Deducted from the total project or program allowable cost in determining the net allowable costs on which the Federal share of costs is based.
(c) When an agency authorizes the disposition of program income as described in paragraphs (b)(1) or (b)(2), program income in excess of any limits stipulated shall be used in accordance with paragraph (b)(3).
(d) In the event that the Federal-awarding agency does not specify in its regulations or the terms and conditions of the award how program income is to be used, paragraph (b)(3) shall apply automatically to all projects or programs except research. For awards that support research, paragraph (b)(1) shall apply automatically unless the awarding agency indicates in the terms and conditions another alternative on the award or the recipient is subject to special award conditions, as indicated in Section ___.14.
(e) Unless Federal awarding agency regulations or the terms and conditions of the award provide otherwise, recipients shall have no obligation to the Federal Government regarding program income earned after the end of the project period.
(f) If authorized by Federal awarding agency regulations or the terms and conditions of the award, costs incident to the generation of program income may be deducted from gross income to determine program income, provided these costs have not been charged to the award.
(g) Proceeds from the sale of property shall be handled in accordance with the requirements of the Property Standards (See Sections ___.30 through ___.37).
(h) Unless Federal awarding agency regulations or the terms and condition of the award provide otherwise, recipients shall have no obligation to the Federal Government with respect to program income earned from license fees and royalties for copyrighted material, patents, patent applications, trademarks, and inventions produced under an award. However, Patent and Trademark Amendments (35 U.S.C. 18) apply to inventions made under an experimental, developmental, or research award.
Management during the Budget Period
As revenue is posted, the budget for revenue and expenses should be updated in the Grants Module budget lines to match the cumulative revenue. F&A will be charged on expenses at the same rate as the sponsored project.
Close out of Program Income Chartfield.
When the related sponsored project ends, the SA closes it according to OMB A-110 regulations, unless the sponsor or the terms and conditions of the project state otherwise.
RECORDS MANAGEMENT
Preparation of Individual Projects for Storage
When a project has been completed it is the Senior Accountant’s (SA) responsibility to ensure that all required financial reporting has been submitted to the agency and that the money has been received. Once the agency and the University have fulfilled their obligations, the project is inactivated and closed in the PeopleSoft system. See closing procedures. The files can then be sent to the records center for storage.
Retention Regulations
According to federal guidelines, files must be kept a minimum of 5 yrs after the end of the fiscal year in which the project ended.
Storage of Records Annually at Records Center/Review of Records Annually for Misfiling
The records are sent after the annual A-133 audit is completed, at the time OSPA management designates.
SAs annually pull all the files listed on the “pulling” list that is generated by the OSPA Research Analyst. As closed projects are pulled they are bound by a large rubber band with the service file on top and placed in numbered boxes. The SAs update the pulling list with the number of the box by the pulled projects.
At the time the records are pulled for storage, all records are reviewed for misfiled documents. The records that are staying in OSPA are included in the review for misfiling.
When a misplaced document or entire record is located, the front desk staff updates the “Lost Files List”. The senior accountant assigned to the relocated document or record is notified. The document(s) are filed correctly.
When a project on the pulling list does not have a folder in the main files, the SA determines if it already at records or takes other appropriate actions to locate the file.
After the selected records are pulled from the main files, the SAs review documents in their offices to determine which ones are ready for storage. Examples of documents to review for possible storage are student financial aid files and Letter of Credit files. Documents are boxed. A list of contents of each box is prepared.
After the records are pulled, the lists are given to the front desk staff so Record Center Labels can be typed and placed on the numbered boxes. A Transmittal Report is typed to send to the records center with the boxes. A copy of the Transmittal Report is maintained in OSPA as a reference. After all the labels and forms are typed and placed on the boxes, a call is made to the Records Center to pick up the boxes.
OSPA Databases of Stored Records
Projects prior to GM implementation
The location of the box and the date sent to records center was entered into GIS. See edit panel, lower left-hand side.
Project in GM
The location of the box and the date sent to records center will be in GM when the panels are useable and the process is defined.
Paper copy of Annual Records Locations Lists
The lists are maintained by front desk staff and are accessible to the OSPA staff.
Retrieval of Records from Storage
The file location of the record is retrieved from the appropriate database.
Complete Form UM 362 for each individual project to be retrieved. Fax the form(s) to Record Center 884-3068.
An alternative method of retrieval is by email. Select “Records Center (UM)” from the MS Outlook list, and send the information about the project and its location in the request.
Destruction of Stored Records
Periodically the Records Center submits a proposed destruction list of records to OSPA. The Post Award AD reviews, confers with the management team, and Office of Technology and Special Projects. If there are no objections to destruction, the AD authorizes, returns the authorized original, and provides a copy to the front desk staff for OSPA reference.
EFFORT VERIFICATION
This semi-annual certification form is required by OMB Circular A-21 as a means of documenting 100% effort for those personnel whose salary or wages has been either directly charged to grants and contracts, paid from other funds where it has been identified as cost sharing, or paid from other federal sponsored funds. It is also entitled “Statement of Reasonableness.”
Development of the form used in FY2002 and subsequent years.
It was programmed by IATS, according to specifications written by System Grants Administrator, based on discussions of the Task Force on Effort Reporting. Any suggested changes to the program and form should be submitted to the Director of Sponsored Programs.
Content:
Report shows Employee Name, Employee ID, Department ID, Department Name, Period of the Report. Report shows salary and wages by chartfields and percentage of effort for each chartfield.
OSPA Responsibilities
Central administration is responsible for generating and distributing reports according to the schedule provided. OSPA is responsible for collecting and maintaining the central file of reports. OSPA has the reports available primarily for the auditors conducting the annual A-133 audit. The reports are also available for scrutiny by other auditors, external or internal to the University of Missouri.
Associate Director: Shortly after the end of the reporting period, the AD runs the reports. See reporting periods listed on following page. The report is distributed electronically.
Support Staff. The Office Support IV maintains a master list, logging in the returned forms. The forms are filed according to the order of the master list. The OSIV periodically sends reminders to departments that have not returned forms.
Responsibilities of Divisional and Departmental staff
Monthly payroll is based on planned effort and therefore requires a review to ensure that the actual effort is the same. Attention to changes of effort and processing of revised payroll paperwork (PAF’s) will help ensure that the data presented on the EVR accurately reflects actual effort.
The department is responsible for collecting appropriate signature on an EVR and returning the original to OSPA by the designated date. At the time of distribution of the reports OSPA provides a designated date in the cover letter. The return date is usually within two weeks of distribution.
The EVR should be signed by the individual, by the Principal Investigator, or by someone who has first hand knowledge of the individual’s effort.
Issuance of reports for a fiscal year
January 200x For the preceding six months, July through December,
requires signatures.
June 200y For the months of January through May,
for review only, no required signatures.
July 200y For the months of January through June 200x,
requires signatures.
A-133 AUDIT REPORTS
What?
The Annual A-133 Audit is an audit of the Curators of the University of Missouri, conducted by an external audit firm. The audit consists of several components. The UMC OSPA office is involved in the audit of Sponsored Programs, and the audit of Student Financial Aid.
The audit report is primarily requested by sponsors and potential sponsors. We refer requestors of the audit to the Federal Audit Clearinghouse Website. (). If a copy of audit is required by a sponsor that wants more than the Website information, a copy is provided. Requests for the audit report are directed to the Post Award Associate Director. The AD provides a few copies to each satellite for requests at the proposal stage and to each of the other business units for distribution.
Each Business Unit of the University requests copies of the A-133 audit of each of its sub-recipients or a response from the sub-recipient indicating that it is not subject to an A-133 Audit.
Why?
OMB Circular A-133,Audits of States, Local Governments, and Non-Profit Organizations, requires an audit since the Curators expended $300,000 or more in Federal funds in a fiscal year.
Sponsors providing funding to the Curators are required to ensure that our organization is in compliance with the requirements of OMB Circular A-133. Likewise the Curators are required to ensure that its sub-recipients are also in compliance.
When & Where?
The initial onsite visit is in June, and the auditors want a dataset that goes through April of the fiscal year. The auditors again are onsite for approximately three weeks, from mid-August to mid-September. The audit team for UMC OSPA is provided space in 16 Parker Hall, or in the The scheduling arrangements for the audit are made centrally with the System Associate Controller. The audit report generally has an issue date of September of the following year and it is printed and distributed a few months later.
Who?
External Audit Team. Varies.
University Contact: Assistant Controller, UMSYSTEM
UMC OSPA Contacts: Michael Warnock, Director
Samuel Peterson, Associate Director
Cognizant Agency for the audit: U.S. Department of Education
Roles: AD works with auditors on details. Director reviews findings with AD. Director, using input from AD, provides feedback on findings to Associate Controller. Associate Controller finalizes the audit work.
Listing of past audit activities and names/positions of OSPA staff involved
Initial and final meeting about sponsored programs and student financial aid audit. AD
Query of all expenditures on sponsored programs for the fiscal year.
AUDITORS_DIRECT_YTD_EXP - Combined into AUDITORS_DATASET using Access
AUDITORS_ALL_YTD_EXP - Combined into AUDITORS_DATASET using Access
AUDITORS_SPONSOR_ATTRIBUTES -Combined into AUDITORS_DATASET using Access
AUDITORS_AWARD_ATTRIBUTES - Combined into AUDITORS_DATASET using Access
AUDITORS_ALL_SUBS_EXP – Combined into AUDITORS_DATASET using Access
AUDITORS_EQUIP_YTD_EXP – Combined into AUDITORS_DATASET using Access
Note: These queries have to be separately run because otherwise data will be lost due to the inability to do inner and outer joins in PS Query. Once the datasets are established, they are put into Access and then all joined together properly. This master dataset is then given to the auditors to use.
• Query includes project id, project description, Business Unit, Sponsor Name, Sponsor Assigned Number, CFDA number, amount of expenditures for each project. If there are any projects with nothing entered in CFDA attribute, the AD follows up with the UMC OSPA senior accountants, and the sponsored program staff at the other Business Units. Sam Peterson-Query
• Dataset is provided to auditors with the Federal expenditures after all CFDA numbers are collected, and after the non-Federal projects are deleted. AD
• Dataset of subcontractor expenditures for Federal Funding is provided for Note 2 of the audit.
AUDITORS_CONSTRUCTION_PROJECTS – Identifies construction projects on campus’s.
• AD provides a dataset of Federally sponsored construction projects, including project id, project description, Business Unit, Sponsor Name, CFDA number, and amount of expenditures for each project for the fiscal year. We will need to find out the funding source, R&D and CFDA#.
AUDITORS_10500_SMITH_LEVER_EXP
• A summary of Cooperative Extension expenditures is provided to the auditors. It is prepared by Jennifer Jones since it is not spent on Grant Project IDs and it is not included in the above mentioned query.
Interviews about procedures, internal controls, LOC draws, etc. AD and a few selected senior accountants.
Files are provided for the projects selected for auditing. AD and office support staff.
Documentation is provided for transactions selected for testing. Senior Accountants, AD
Student Financial Aid audit is on Pell, Campus Based Programs (SEOG, Work Study, Perkins) and Student Loans from U S Department of Education and Department of Health and Human Services (DHHS). Every third year there is an in depth audit in the SFA office.
Our office has System responsibilities for drawing down funds, setting up budgets, and assisting in draft for the annual Fiscal Operations Report and Application to Participate (FISAP) for all Business Units. See Excel files: G://Perkins.y0X, or WS/SEOG.y0X. Our office assists in the draft for Annual Operating Reports for the Health Profession Loans and scholarships. See Excel files: G://HEALTH/specific program code.y0X.
We provide summaries by Business Units for drawdowns and expenditures on Pell and Campus Based Programs. SA, AD. See Excel files G://Finaid/finaid/auditumxxdraws.y0X.
We provide loan information for advances and outstanding balances for Perkins, Direct Loans, Student Health Loans, for use in Notes to Schedule of Expenditures of Federal Awards. SA, AD. See Excel file: G://finaid/finaid/audloans.fy0X.
A-21 Unallowable costs
Specific account codes are used institution-wide on expenditures for unallowable cost elements (as defined by OMB Circular A-21). These unallowable expenditures are prohibited as direct expense on sponsored project chartfields. An edit checking procedure screens the transactions after posting, throughout the fiscal year. A query in Peoplesoft reporting called GM_GRANTS_WITH_A21EXCLUSIONS is run to find projects that have had an A-21 unallowable charged. This list is given to the responsible accountants who work with the campus departments to remove the unallowable costs.
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Producing the Schedule of Federal Expenditures (SEFA)
Reconciliation to the financial statements
Initial Reconciliation – An important first step in producing the SEFA is to know that the data you are starting with is complete. In order to do this, two queries are run and sent to Excel:
• UGL_ AUDITORS TRIALBAL (PS Production) – With the addition of the fund, this produces the trail balance that is to be reconciled to.
• DC_GRANT_SEFA_FINAL (PS reporting) – This will produce a dataset that pulls all sponsored research with a restricted fund.
The query from the financial report (UGL_AUDITORS_TRIALBAL) will be sorted by fund, and a subtotal is run of funds 2100 to 2299. the SEFA query (DC_GRANT_SEFA_FINAL) is sorted by fund and a subtotal is run on funds 2100 to 2299. If the two numbers match, then the first step of the reconciliation is complete.
Extracting the data for the SEFA – The SEFA query (DC_GRANT_SEFA_FINAL) contains more than what is presented on the SEFA, because the reconciliation is for all restricted expenditures. The SEFA is only concerned with federally funded dollars, whether they are received directly or from other entities (pass through). In order to break out this group, some data verification has to happen first.
Data Verification - Using various techniques, some data problems will become apparent.
• Sorting by sponsor type and CFDA is an example. All of the FED (Federal) and FFRS (Federally funded research centers) sponsor types must have a valid CDFA number. If there is not one, then it needs to be fixed.
• Sorting by CFDA will help you find blanks, which indicates that research needs to be done.
• Creating a pivot table and developing a list of CFDA numbers will help find the CFDA numbers that are invalid. If there are letters after the five digits, they need to be removed or there may be commas or dashes accidentally inserted.
• When changes are identified, they need to be made in the system and verified by re-running the queries.
!!!WARNING!!!
It is critical that these steps are not considered everything that can be done to determine the quality of the data. This should be considered to be examples that will get one started in the data verification process.
Identifying non-SEFA lines – Once the data has been verified and changed in the system, the next step is to determine what should and should not be included on the SEFA. Adding a column to explain the reason that lines are eliminated is an important part of the grouping process. What follows are some examples.
• Sorting by Project ID will help locate the PCS spread chartfields such as CG999999, EG999999, Etc… These do not need to be included on the SEFA
• Sorting by amount ill help locate the lines with zero expenditures. These do not need to be included on the SEFA.
• Sorting by CFDA will identify the XX.XXX (Non-Federal) lines. It is important to make sure that no federal types are marked this way.
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!!!WARNING!!!
It is critical that these steps are not considered everything that can be done to determine the quality of the data. This should be considered to be examples that will get one started in the SEFA verification process.
Verifying the CFDA numbers – Each year it is important to verify that all of the CFDA numbers that are shown on the SEFA are valid. CFDA numbers are often changed or retired. The CFDA website () has a historical index that lists all numbers activated since 1965 and their status. Using a pivot table, create a list of all CFDA numbers in the SEFA and compare this to the website information. If something has changed, make sure that it gets updated in the PS Award Profile field so that it will be right in the future.
Adding the special SEFA lines - There are some situations in which federal funds are not recorded as restricted funds.
• Agricultural Experiment Station – We run a query that pulls their revenues. Currently the revenue is recorded in account 410000.
• Cooperative Extension – We run a query that pulls their revenues. Currently the revenue is recorded in account 410000.
• Vet Med – We tun a query that puslls their revenues. Currently the revenue is recorded in account 410000.
o The PS reporting query DC_GRANT_SEFA_C8000 can be used for all of these, with changes in the account and fiscal year.
Building the SEFA –
• Clusters – Now that the SEFA lines have been identified, they need to be categorized into Clusters. In FY 2005 there were the following clusters: Research & Development, Student Financial Aid, Food Stamp, CDBG, Fish & Wildlife, Workforce Investment Act, Highway Planning and Construction, Highway Safety, Special Education, TRIO, Childcare, Medicaid, Homeland Security, and Other. SEFA Program Clusters can change each year, so it is important to have an updated listing. The OMB A-133 Circular has a compliance supplement that contains the office list of clusters. This is the source of information to determine the clusters.
A-133 reports are stored in the file cabinet outside the AD’s office by the coat rack in the 3rd and 4th drawers. Copies must be sent to those requesting them—not the original. Requestors will be referred to the Website for A-133 Reports.
Loans advanced and outstanding – This dataset is provided by the SA assigned to Dept. of Education.
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