Sponsored Programs at Penn Post Award Foundations

Foundations Foundational Concepts Carryover Authority Dictates how multi-year funding is awarded Streamlined Competing Award Process (SNAP) Dictates when NIH Financial Reports are filed Revenue Recognition How we invoice and paid for expenses on sponsored awards Receivables Indicates what has been billed and not billed to the sponsor Monitoring Receivables Shared responsibility between central and schools

Carryover Authority Carryover Authority Review the Notice of Award to ensure what level of carryover authority Penn has on the award Automatic Carryover generally on R, K, and P01 awards Carryover not automatic on U, T, other P awards If carryover is automatic then the fund number will be retained throughout the life of the competitive segment If carryover is not automatic then a new fund number will be issued for each award The above is true for all sponsored projects – not just NIH. If carryover is automatic the fund number is will be retained. If not automatic – a new fund will be issued. Knowing your carryover authority will dictate how your award is managed throughout its lifespan

SNAP Streamlined Non-Competing Award Process Dictates when Financial Reports are filed for NIH awards If covered by SNAP the FFR will be filed by at the end of the competitive segment. An award must have automatic carryover authority if it is under SNAP

Carryover & SNAP Examples Award w/ Automatic Carryover and SNAP Award w/o Automatic Carryover or SNAP Fund is retained throughout the segment and the FFR filed at the end of year 5 Fund number changes each year and a FFR is filed each year

Revenue Recognition Penn’s entitlement to be reimbursed by the sponsor for the allowable expenditures of the grant – or – how we get paid Under normal circumstances an equal dollar of revenue is recognized for every dollar of allowable expense. In the below example all object codes are allowable to charge revenue Systematic controls limit revenue from being recognized over the award amount and on unallowable object codes. In the below example object code 5214 (Entertainment) is unallowable

Grant Receivables Object Codes Object Code 1222 – Unbilled AR Shows the amount of unbilled revenue on a fund This amount will change over time depending on the spending rate and invoicing terms on an award Object Code 1220 – Billed AR Shows the amount of revenue billed to the sponsor for a specific fund When invoices are processed by ORS all unbilled revenue under O/C 1222 will transfer to O/C 1220 O/C 1220 represents what we are owed by the sponsor Object Code 2630 – Deferred Revenue Represents the cash balance on the award – not the award balance. If a sponsor pays Penn in advance the cash is applied to 2630 As the fund is expended the balance on O/C 2630 decreases

Grant Receivables Object Codes In the below example Penn has invoiced and is owed $6,030.53 while we have yet to invoice for $4,563.23 while total cash received is $112,289.88 In the below example Penn has received $1,108,620.18 from the sponsor and has spent $758,770.45 leaving a balance of $349,849.73 under O/C 2630

Department Invoicing Requests for Payments can be generated by the department in certain circumstances Clinical Trials Programmatic Reports that request payment Sponsor Invoicing site accessed by department If the department issues any request for payment a copy of that invoice should be sent to the below email listserv with the fund number noted in the email and/or subject line GCINVOICING-L@lists.upenn.edu This will ensure that Penn has the proper receivable amount charged to the fund and facilitate quicker application of payments once received

Monitoring Accounts Receivable Central Offices and Departments have a shared responsibility to review open receivables If you are concerned about any AR issues you should reach out to your Post Award contact to confirm if any collection efforts have started Perelman School of Medicine Collections are completed by Danielle DiIanni: 215-573-1395 / ddiianni@pennmedicine.upenn.edu All non-PSOM Collections are completed by Gokila Venkateswaran: 215-898-2515 / Gokila@upenn.edu ORS is also responsible for collections efforts for the following sponsors regardless of school or center Children’s Hospital of Philadelphia Fox Chase Cancer Center School District of Philadelphia National Space Biomedical Research