1. Research Administrators Council September 15, 2003 Sponsored Projects Accounting Update

2. AGENDA F&A and FB Rates / Negotiations Expenditure Transfers: Effect on Billing/COH Encumbrances at award close out Sponsored Project purchase orders Revenue recognition and negative cash flow as a result of overspending and task funding allocations New Attributes Award Close-outs – What are our barriers?

3. FACILITY & ADMINISTRATION (F&A) AND FRINGE BENEFIT RATE UPDATE

4. Time Frame Rates submitted May 2, 2003 DCAA audit complete by July 31, 2003 Negotiations with ONR on August 18 - 19, 2003 Anticipate final rates by September 29, 2003 Will adjust all July/August fringe benefit and overhead charges in September business

5. FY2004 Facility and Administrative Rates Anticipated The negotiated administrative rate did not exceed the 26% cap therefore the capped and uncapped rates will be the same CAPPED (Non DoD) UNCAPPED (DoD) ON CAMPUS46.50 to 47.50% OFF CAMPUS26.31% OFF CAMPUS – REC27.87% SEI6.30% West Campus58.90%

6. FY2004 Anticipated Fringe Benefit Rates Full Time Faculty and Staff25.00% (charged to Federal awards and separately budgeted recharge centers) Full Time Faculty and Staff28.28% (charged to Non Federal awards and all other university centers for dependent tuition remission) Part Time with Benefits18.50% Part Time w/o Benefits10.00%

7. Expenditure Transfers: Effect on Billing and Cash on Hand (COH) Agencies with LOC; quarterly reconciliation by award –DHHS : NIH; HRSA; CDC –NSF Agencies with monthly billing by award –DOD: NASA; ONR; DARPA Transferring expenditures off of an award is very visible to agencies with monthly billing by award – especially if there are not incremental expenditures Weigh the Risks –Transfer procedures & internal controls –Creates COH / interest repayment situation –De-obligation of funding by agency

8. Encumbrances at Award Closing Encumbrances remaining at award closing will be cleared against the closed award (regardless of award status and closing dates) if they are not cancelled Encumbrances need to be closed by the purchasing agents in the departments – SPA reps do not have this ability

9. Sponsored Project Purchase Orders Exploring removal of SPA approval requirement for PO’s exceeding $1000 Will require departments to more closely monitor: – equipment purchased in final 90 days of awards – maintain justification –Contract terms regarding allowability Send any concerns to dsommer@andrew.cmu.edu dsommer@andrew.cmu.edu

10. Overspending/Task Funding Allocations Award/Task funding issues have significantly improved! From approx $3 million in April 2003 to $350 thousand at June 30, 2003 These are AWESOME results Challenge: keep the figure from rising again!

11. Overspending/Task Funding Allocations $2.4 million in overspending is recorded at June 30, 2003 - exclusive of awards “At Risk” and award/task funding allocation issues We need to prioritize identification of: –Cost sharing awards / batches –Designation of “At Risk” –Funding corrections

12. GM Enhancements: New Attributes New AttributeRequired Field Available Options / Free Form EntryPurpose CFDA#YesFree FormRequired by A-133 University InitiativeYesList of Values:  Biotechnology and Health Policy  Broadening Undergraduate Experiences  Diversity  Environmental Science, Engineering and Policy  Fine Arts and Humanities  Information and Communication Technology  International Initiatives  Regional Initiatives Track funding in conjunction with the University Strategic Plan IC Allowable RateYesFree Form – limited to values between 0 and 1.9999 (i.e. 25% =.25) This will enable SPA to monitor and analyze the allowable F&A recovery versus the actual F&A recovered. Allowable ScheduleYesList of Values - w/b existing burdening schedules – used in conjunction with IC Allowable Rate This will enable SPA to monitor and analyze the allowable F&A recovery versus the actual F&A recovered. Administered ByYesList of ValuesSubmission of reports to appropriate office; communications regarding extensions, prior approvals, etc. – used primarily by SPA/OSP

13. GM Enhancements: New Attributes New AttributeRequired Field Available Options / Free Form EntryPurpose Paying OfficeYesList of ValuesSubmission of invoice data - used only by SPA Mandatory Cost Sharing YesList of Values:  Yes  No This will allow SPA and Campus to easily identify if mandatory cost sharing is required for an award. Mandatory defined as included in award documents. Mandatory Cost Sharing $ NoFree Form – only available if Mandatory Cost Sharing = Yes This will be populated with the amount of the mandatory cost sharing. Cost Sharing Award # NoFree Form – only available if Mandatory Cost Sharing = Yes This will be populated with the cost sharing award associated with the sponsored award. NSF Survey Category YesList of Values: NSF Categories Department supplied from list provided by NSF; purpose is to automate NSF annual survey

14. Award Close-outs: What are our barriers? SPA 5 day dept turn-around requirement for formal award reconciliation: –Usually approx 70 days after award end date –Reports are due to agencies within 90 days of award end dates What are the department barriers 5-day turnaround? What steps can be taken to facilitate the closing process? –Accurate burdening w/in Oracle to reduce adjustments at closing – fixed rates for life and patches in Oracle should significantly decrease incidence –Financial review of awards at end dates – versus at reconciliation –Additional Oracle alerts –Monthly notification of web reports to award & project managers

15. THANK YOU!! ANY QUESTIONS???