Presented by Urmila Bajaj January 26, 2017 Post Award Update Presented by Urmila Bajaj January 26, 2017

Overview New F&A Rate Agreement Overview of audits Perfect closeout-A collaborative effort

F&A Rate Agreement Agreement dated 11/18/16, but finalized in early January Current rates, 58% on-campus and 26% off campus, for Organized Research (OR) will remain applicable until June 30, 2017 On campus F&A rates are pre-determined for FY18 (61%) and FY19 (61.5%) Off campus F&A rate for OR remains the same, 26%

Application of F&A Rates on Proposals/Awards Multi year proposals should be submitted with the F&A rates applicable in the proposed years Example: PI submitting proposal for on-campus work, with period of performance starting 5/1/17 and ending 6/30/20 F&A for budget for 5/1/17-6/30/17 will be calculated at 58% F&A for budget for 7/1/17-6/30/18 will be calculated at 61% (FY18 rate) F&A for budget for 7/1/18-6/30/19 will be calculated at 61.5% (FY19 rate) F&A for budget for 7/1/19-6/30/20 will be calculated at 61.5% (using FY19, last negotiated rate) Awards: Awards with multiple F&A rates will automatically assess the appropriate F&As since the burden schedules will be set up with applicable rates and their effective and end dates

Types of Audits Single Audit (A-133) Program Specific Audit Office of Inspector General’s Audits

Single Audit (aka A-133 Audit) 2CFR 200 Subpart F Requirement Purpose To set forth standards for federal agencies to obtain consistency and uniformity while auditing non-federal agencies expending federal funds Audit requirements Single audit is required for non federal entities that are expending $750,000 or more in federal funds during a fiscal year Audit must confirm that the auditee’s: Financial statements are presented fairly in all material respects in accordance with GAAP Schedule of Expenditures on Federal Awards (SEFA) is stated fairly in all material respects in relation to the auditee’s financial statements as a whole Internal controls are consistent with COSO (Committee of Sponsoring Organizations of the Treadway Commission Framework) Audit findings require auditee’s corrective action plans for the current year audit findings Summary schedule of prior audit findings and the corrective action plans are included in current year’s audit report Auditors can be independent audit agencies (PwC, E&Y, etc.), Federal audit agencies (DCAA, etc.) or state audit agencies (for UVA, we are included in the Single Audit of Commonwealth of Virginia, performed by State Auditor of Public Accountants) Commonwealth Of Virginia State-wide Single Audit Report for FY 2015

Program Specific Audit Federal agency can request for an audit any time during the life of the program (or later, until record retention period) Scope of the audit is generally decided by the auditors, can be technical (programmatic) and/or financial audits Audit findings are discussed with the auditees Costs may be disallowed Auditees are required to follow corrective action plans Auditors can return to re-audit program

Office of Inspector General’s Audit Major federal sponsors such as NIH, NSF, etc. announce their audit plans for the upcoming fiscal year/s Auditee can be one of the agencies under the sponsor Auditees are notified in advance about the scope of the audit Findings and management response from auditees are published in their websites Disallowed costs are returned to sponsor OIG auditors return to reevaluate corrective action plans and issue a follow-up audit report

Perfect Closeouts-A Collaborative Effort Federal guidelines 2CFR§200.343:Closeout actions for non-Federal entity at the end of the period of performance: The non-Federal entity must submit, no later than 90 calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award Federal awarding agency or pass-through entity may approve extensions when requested by the non- Federal entity.

Guidelines Continue..... The non-Federal entity must: liquidate all obligations incurred under the Federal award not later than 90 calendar days after the end date of the period of performance promptly refund any balances of unobligated cash that the Federal awarding agency or pass-through entity paid in advance or paid and that are not authorized to be retained by the non-Federal entity for use in other projects account for any real and personal property acquired with Federal funds or received from the Federal Government

Getting prepared-when an award is received When an award is received, review award document for Start and end dates (approved pre-award spending) Cash requesting methods: SF270 (federal grants), SF1034 (federal contracts), agency specific forms, Other Payments (pre-determined, milestone deliverables) Financial reporting requirements: forms/frequency Project specific requirements Re-budgeting restrictions (prior approval requirements, restrictions on foreign travel, equipment, etc.) Cost sharing Program income Salary cap

Getting prepared-when award is ending 90 days prior to award end date 30 days prior to award end date 0-30 days after award end date 31-60 days after award end date 61-90 days after award end date Notify PI about upcoming award end date, large balance may indicate that work is not completed. Contact Pre-Award for no cost extension Review account status, contact sub- awardee and other vendors for final invoices, end labor schedule lines Make sure all charges are posted Close POs, reconcile F&A, document cost sharing Submit final invoice/financial reports

Final Closeout Post Award confirms with PI/Department RA, Subaward and Equipment Management that the final financials can be prepared submits final invoice, Federal Financial Report, Cost Sharing Report Including refunds de-obligates budget to match final expenditures reported and issues NOA follows up on outstanding payments (A/R Aging) changes award status to “closed” notes files with destroy date consistent with the University’s record retention policy Copy of PAA closeout check-off list