Presentation on theme: "MANAGING YOUR GRANT AND CONTRACT FUNDS Instruction & Curriculum Leadership PRINCIPAL INVESTIGATORS Handbook August 2009."— Presentation transcript:
MANAGING YOUR GRANT AND CONTRACT FUNDS Instruction & Curriculum Leadership PRINCIPAL INVESTIGATORS Handbook August 2009
Life cycle of a grant Proposal Award Opening a Banner Fund Spending appropriately Covering overages Fiscal reporting Closing the account
Roles and Responsibilities Ultimate Responsibility for the Sponsored Project in an Academic Environment lies with the Principal Investigator (PI) PI ROLES AND RESPONSIBILITIES Manage Project Correctly - Know Sponsor Requirements Personnel for daily operations Budget Appropriate charges Stop expenditures Monitor timelines Provide programmatic information Certify and Approve Effort Follow university policies and sponsor guidelines Possible Over-Expenditures
Roles and Responsibilities Department Support to assist project with: Training personnel Purchasing processes HR action support WTE oversight Budget oversight U of M Policies and procedures Effort Certification process Possible over expenditures Research Support Services Pre Award assistance: Proposal Budget Development Advance Account requests Award Sub Contracts Grants Accounting Office Post Award Assistance: Explain Requirements Set up index, budget, positions, HR salary splits/reallocations, cost share Budget Revision Restrictions Monitor budget and timelines Invoice (bill) sponsor Review & approve certain charges Respond to PIs questions and need for assistance and support Interact with sponsor for billing issues, financial reports, and clarifications
Pre-Award - Who handles what Research Support Services Cathy Awsumb Federal grants proposal submissions Mable Dixon State of Tennessee proposal submissions, contracts, agreements, and subcontracts to the university Angela Fair Sponsored internships and subcontracts from the University Judy Faris Proposals involving pre K-12 school systems, identification of sources and proposal development Susie Hayes Budget Development Deborah Hernandez Corporate and foundation proposals, infrastructure and multidisciplinary grants Jacqueline Reid Contract Review, export controls compliance David Whipple Research incentive pay, indirect cost returns Phyllis WrightProposal, advance, and award status; distribution of funding award
Post Award – Who handles what Grants and Contracts Accounting Kendra Tillis – Grant Accountant assigned to ICL to assist the PI and dept in achieving the statement of work of the sponsored project, while maintaining sufficient fiscal controls to ensure compliance with 1) terms and conditions of the award, as well as state, local, and federal regulations; 2) generally accepted accounting principles (GAAP); 3) university business policies and procedures Kendra can be reached at ext 3265 or via at After your award has been approved and processed in RSS, or an advance account approved, you will receive notification from Phyllis Wright in RSS with award status information. The grant accountant will receive notification also. This action will move your award from Pre Award to Post Award status. The grant accountant will review award specifications, set up the budget in Banner and assign you an index. It is highly recommended that you meet with your grant accountant at this time to discuss university and sponsor requirements, verify positions needed, etc. Linda Heide - Manager, Grants and Contracts Accounting
Creating a New Position (Pooled Positions) Check Banner for available salary funds Submit pool position setup form to Grant Accountant – Form FP-02 New Position Detail Grant Accountant will setup and new position # to PI for use on hiring documents Pooled positions consist of: - Graduate Assistants (account or 61657) - Student Workers (account 61410) - Temporary Employees (account 61375, 61675)
Creating a New Position (Single - Permanent Positions) Check Banner for available salary funds PI/Dept initiates new single position in workForum: (form FP-02 attached in the workforum system) Grants Accounting – Budget Approval thru workForum, setup and enter new position # PI/Dept will continue with HR process in workforum after receive approval and position # Single Positions typically hired on ICL grants: Project Coor, Project Asst, Office Coordinator….
Faculty Salary on Sponsored Project Faculty salary - summer only o Verify the amount of summer salary allowed and if it is budgeted (account code – 61254, 61255) o Currently faculty can earn up to 33 1/3% of their salary during the summer o Use Faculty Summer Compensation Authorization & Payment Request form for summer pay Research Incentive Pay (http://researchsupport.memphis.edu) Faculty may recoup up to 50% of salary recovered to the department as incentive pay o Must obtain Chair/Dean approval o Must consider department needs first o Use Research Incentive Payment Request form
Allowable costs Allowed by the sponsor Allocable to the project Reasonable and prudent costs Consistent costs University policies and regulations Sponsor guidelines and restrictions OMB Circular A-21
Travel Travel must adhere to University policy, including international travel If travel is involved (allowed) in the project - Make sure funds are budgeted in the travel pool 73000
Food and Beverages Generally not allowed, however some sponsors allow - depends on the purpose of award Entertainment specifically not allowed Alcohol not allowed Justify, justify, gain approval
Supplies and Equipment (must be allowable expenses) All purchases regardless of the dollar amount must be submitted online through Tigerbuy – Items $5,000 or over, sole source justification or bid process – Please check budget on Banner before keying in requisition. Also verify account code when keying in requisition account information – Approval for payment is handled electronically by entering a receipt in Tigerbuy – To gain access to Tigerbuy, PI must attend Tigerbuy Approval Training Purchase equipment items during the project year and not at the end of the project year. Remember: supplies/equipment items are to support your operations during the year. Equipment purchased using university funds including grant project funds is not the personal property of the PI. When a PI leaves the University, all equipment including laptops should be returned to the department or the sponsor.
Contract Services Hiring consultants or individuals to work on your project Contract services or agreements between the University and any external party: – Where the fee is less than $2,000, utilize the Request for Payment to Individual or Contractor form and forward to the Accounting Office (An individual currently employed or have been employed within the last six months cannot have a payment processed via this method) – Where the fee is $2,000 or more, utilize Procurement Services forms For guidelines and Procurement Services forms:
Review Monthly Expenditures Review monthly university expenditures in Banner INB for accuracy (FRIGITD, FRIGTRD) Process timely corrections when errors found in salary and non-salary expenses Monitor subcontracts and submit invoices for payment in a timely manner Monitor tuition charges, contact Bursars asap if incorrect charges are identified and notify Grant Accountant PI is responsible for over spending
Cost Share Grant Accountant will provide cost share index and set up salary portion only PI/Dept will set up budget for cost share thru Financial Planning Charge appropriate expenditures to cost share index Monitor cost share account
Budget Revisions Budget Revisions are needed when changes in research occur Budget revisions may be limited to a percentage change, dollar value, or line item without sponsor approval. Grant Accountant will determine authority to make change – sponsor or U of M If sponsor approval is required, PI must request to the sponsor noting: How much, from what line(s) to what line(s), for what purpose, index and account codes (Reminder: cc Grant Accountant and Business Officer on request) Upon receiving sponsor approval, PI can process the BR in Banner, Grants Accounting will approve
Effort Certification Certification of effort is required for those paid on a sponsored program or University cost share Employees required to certify receive notification with instructions to certify effort electronically through the portal PIs must certify and approve their own effort Employees should certify their own effort PI s must approve certifications If employee is unavailable to certify: PI (as the responsible person with knowledge of the employees work) can certify and approve the employees effort Changes are noted through comments Dept chairs have access to review but do not need to approve effort Certification occurs 3 times a year, in Jan ( for July – Dec ), May ( for Jan- April ), and July (for May and June – 12 month employees) For assistance, contact your department Business Officer, Ora Taylor-Strowder Effort Certification policy information located at:
Overages It is extremely important to monitor your budget often to ensure you do not overspend If after careful review, and thorough investigation from the Grants Accounting office, it is determined you have overspent: The Grant Accountant will notify the Business Officer requesting an index to cover the over expenditures The Business Officer will immediately notify the Chair and PI of the over expended balance Over expenditures will first be charged to the PI individual indirect cost recovery (IDCR) account. If there is no PI, IDCR account available, or if the PIs IDCR is insufficient to cover the charges, the department and/or college must assume financial responsibility. (Reductions in anticipated research incentive pay to PIs may be considered as a means to recoup losses to department resulting from overspending )
RENEW YOUR GRANT PROJECT Four to six months prior to project year end date, begin the proposal submission process to renew your project Meet with Chair to discuss proposal, course buy out, incentive payment requests, etc. Meet with Susie Hayes in RSS for budget development Complete and submit Proposal Summary Form with proposal/ budget to Chair, Deans office for approval. Forward to RSS Submit appropriate documents to Sponsor as requested Submit Request for Advance Account form to RSS if project award has not been finalized prior to project begin date. Note: PI must request a formal Letter of Intent to Award from the Sponsoring agency. Attach letter of intent to the Request for Advance Account form for approval
Project Renewal – Assigned A New Index (who to contact) Many of our projects are continued/renewed yearly and a new index # is assigned each year. Upon receiving new index # from the Grant Accountant, immediately contact the following offices to cancel your old index and provide them with the new index #: – Telecommunications – – Mail Services – – Copier Vending – – COE Deans Office/Copy Codes – – Procurement Services website – P Card Users Additional Items to Remember When you receive a new index, you must also request new position numbers for temp positions including graduate assistants and student workers – Complete and submit form FP-02 to Grant Accountant Cell Phone Users: Those with sponsor approval for cell phone expenses, please complete the Cell Phone Allowance Request/Change form located on the Human Resources (HR) website.
Grant Closeout Procedure Submit final programmatic reports Cancel P-cards, copy codes, mail services, telephone services, copier vending; STOP SPENDING BY END DATE Monitor salary obligations, ensure grant employees have exhausted annual leave balances prior to grant expiring Process Separation and Clearance (online and hard copy) for departing employees to terminate positions, or makes plans for those who will be moved to a new project Ensure all travel has been completed and reimbursed Standing POs - liquidate (travel and purchasing) End sub contracts – process final invoices Determine if equipment will be returned to sponsor, or maintained with the university Notify Grant Accountant if there will be obligations that may be outstanding and due to come thru shortly after project termination date
Important Tips Teamwork makes it all possible Establish positive communication and working relationships with your team of experts in Grants Accounting, Research Support, your Business Officer and Department Staff Build and foster positive relationships with contacts in Human Resources, Accounting, Purchasing, etc. Theres a lot to remember and no one can know it all Ask, and dont assume Use the resources available Acknowledge mistakes, assume responsibility, and seek resolution CONTACT YOUR TEAM OF EXPERTS EARLY AND OFTEN !!!!
Important Federal Documents OMB Circular A-21 (established the principles for determining costs applicable to grants, contracts and other agreements with colleges and universities. These principles are to be used as a guide in the pricing of fixed price agreements and apply to direct costs and indirect costs) OMB Circular A-110 (provide a public declaration of the standards to be used by federal agencies and colleges and universities in the administration of grants and other agreements. This does not include contracts that are administered under procurement laws and regulations) OMB Circular A-133 (state audit requirements and provides policy guidance to federal agencies and colleges and universities regarding the institutions financial records, internal control structure, and compliance with applicable laws and regulations)
OMB Circular A-21 Allowable and Consistent Costs A cost is allowable if – It conforms to any limitations or exclusions set forth in these principles or in the sponsored agreement as to types or amounts of cost items (OMB Circular A-21, Section C.) A cost is consistent if - The costs incurred for the same purpose, in like circumstances, are either direct costs only or F & A costs only with respect to final cost objectives (OMB Circular A-21, Section C.11.)
OMB Circular A-21 Allocable Costs A cost is allocable if -The goods or services involved are chargeable or assignable to such cost objectives in accordance with relative benefits received or other equitable relationship (OMB Circular A-21, Section C.4.) Considerations in determining if the cost is allocable - It is incurred solely to advance the work under the sponsored agreement - It benefits both the sponsored agreement and other work of the institution - It is necessary to the overall operation of the institution and is deemed to be assignable in part to sponsored projects
OMB Circular A-21 Reasonable Costs A cost is reasonable if – The nature of the goods or services acquired or applied, and the amount involved therefore, reflect the action that a prudent person would have taken under the circumstances prevailing at the time the decision to incur the cost was made (OMB Circular A-21, Section C.3. Considerations in determining reasonableness -Cost is necessary for the operation of the institution of performance of an award -Cost is consistent with institutional polices
OMB A-21 Unallowable Costs Unallowable Costs (Section J) Unallowable costs-specific costs not allowable for reimbursement under the cost principles: Alcoholic beverages Bad debts Contingency reserves Entertainment Fines and penalties Operating interest, fund raising, investment management Some advertising and public relations Alumni activities Commencement and convocation Automobiles furnished for personal use Lobbying activities Losses on other sponsored grants and contracts Memberships in civic, community, country club or social or dining club or organization