1. The Office of Research Services The Office of Research Support Services 1 REVISED March, 2010 Award Acceptance and Account Set-Up Sponsored Programs at Penn

2. The Office of Research Services The Office of Research Support Services 2 REVISED March, 2010 Advance Accounts What is an Advance Account? –Use when high probability of award –Allows you to put charges on proper account Avoid journal entries and payroll reallocations –Use with pre-award costs under expanded authorities –Easy to request Link to Advance Account Request form located on ORS’ home page –http://www.upenn.edu/researchservices/pdfs/advance.pdfhttp://www.upenn.edu/researchservices/pdfs/advance.pdf –SOM - Advance Accounts are approved and set up by ORSS –All other schools - forward request to ORS

3. The Office of Research Services The Office of Research Support Services 3 REVISED March, 2010 Advance Accounts (cont.) Risks –Award may not materialize –Start date may be delayed –Not all sponsors allow “Pre-award” expenditures Establish follow up routine –Has award materialized? –Is something holding it up? –3 month limit on advance accounts

4. The Office of Research Services The Office of Research Support Services 4 REVISED March, 2010 What is a Notice of Award (NOA)? An official written communication from a sponsor providing financial support for a proposed sponsored project

5. The Office of Research Services The Office of Research Support Services 5 REVISED March, 2010 What is Contained in a Notice of Award PI Name Dates of Performance –Current budget period –Total project period Dollars –Direct, F&A –Current, project total Cost Sharing Contact information General & Special T&C –Use of Animals/Human Subjects –Use of Interest Income –Use of Program Income Reporting requirements –Programmatic –Financial –Property –Invention

6. The Office of Research Services The Office of Research Support Services 6 REVISED March, 2010 Account Set-Up

7. The Office of Research Services The Office of Research Support Services 7 REVISED March, 2010 Account Set-Up Notice of Award (NOA) Received Fund Attributes Fund Parents Special Budgets Account Segments Assigned in PennERA & Sent to GL Fund & Legacy Number Created in BEN Financials & Sent to PennERA AIS is Generated Status Changed From Proposal To Award

8. The Office of Research Services The Office of Research Support Services 8 REVISED March, 2010 Funds and Accounts New Funds are created for each year of the award when carryover of money from one year to the next must be approved by the Sponsor New funds are also required when the F&A changes from one segment to another Subaccounts are to be requested on the subaccount worksheet

9. The Office of Research Services The Office of Research Support Services 9 REVISED March, 2010 Receiving the Award and the Account Information Sheet (AIS) AIS is issued in 2 forms: AIS online (without award document) and via email from ORS (with award document) For help: ais-prob@lists.upenn.edu

10. The Office of Research Services The Office of Research Support Services 10 REVISED March, 2010 Reviewing the AIS and the NOGA Ensure Account End Dates Accurate (budget end or project end?) Ensure Award on AIS matches Award on NOGA Ensure FDP and/or SNAP Ensure accuracy of F&A rate Ensure proper PI name and Org# If the AIS is for a continuation year, always check for budget periods funded with prior unobligated funds.

11. The Office of Research Services The Office of Research Support Services 11 REVISED March, 2010 Review the Award AIS is not substitute for award Review terms and conditions of award Sponsor guidelines Restrictions

12. The Office of Research Services The Office of Research Support Services 12 REVISED March, 2010 Subcontract Process BA/PI prepares subcontract request form http://www.upenn.edu/researchservices/docs/SUBCONTRACTREV.doc Complete package sent as pdf email to subcontracts@lists.upenn.edusubcontracts@lists.upenn.edu ORS completes subrecipient monitoring, prepares subcontract & sends to subrecipient –Subrecipient signs & returns ORS sends email notification to BA that the subcontract is fully executed –Signed agreement uploaded to PennERA record BA sets up Purchase Order Subcontract activity from request to execution noted in PennERA record activity log.

13. The Office of Research Services The Office of Research Support Services 13 REVISED March, 2010 Subrecipient Monitoring A-133 report or audited financial statements required annually Current F&A rate agreement Risk Assessment – results indicate appropriate subcontract terms and conditions

14. The Office of Research Services The Office of Research Support Services 14 REVISED March, 2010 The FDP Federal Demonstration Partnership is a cooperative initiative among federal agencies and institutional recipients of federal funds. It was established to increase research productivity by streamlining the administrative process and minimizing the administrative burden on principal investigators while maintaining effective stewardship of federal funds. Penn is a participating institution Many of the recommendations of the FDP have been included in expanded authorities.

15. The Office of Research Services The Office of Research Support Services 15 REVISED March, 2010 Carryover Authority & SNAP Carryover Authority –Generally R’s, K’s and P01’s, but always check the Notice of Grant Award. SNAP Streamlined Non-competing Award Process –Generally R’s, K’s –A grant must have carryover authority if it is under SNAP

16. The Office of Research Services The Office of Research Support Services 16 REVISED March, 2010 Importance of Expanded Authorities/FDP Allows some administrative privileges authorized by A-110: Automatic carryover of unobligated balances across budget periods and competitive segments (except when noted in the Award) Up to one year no cost extension if requested 10 days prior to end of budget period (to complete project & not spend the $)

17. The Office of Research Services The Office of Research Support Services 17 REVISED March, 2010 Importance of Expanded Authorities/FDP Waive most cost related and administrative “prior approvals” except: –Change in scope or objective of the project –Change in key personnel –Requests for additional funding –Other exceptions as noted Allows for 90 day Pre-award startup costs

18. The Office of Research Services The Office of Research Support Services 18 REVISED March, 2010 Remember! At Penn, grants with automatic carryover retain same fund # for the entire segment. –An exception to this rule is subcontracts. All grants without automatic carryover receive a new fund # every new budget period. Understanding this most basic concept helps you understand when a fund # should expire, require a closeout, or when an advance account may be needed as the project continues. IT IS VITAL TO UNDERSTAND THIS!!!! IT IS VITAL TO UNDERSTAND THIS!!!!

19. The Office of Research Services The Office of Research Support Services 19 REVISED March, 2010 Basic Terms to Know Revenue Recognition PBIL and PBUD FSRD and FSRI Operating Budget Object Code 1220 Receivable Adjustment Period MTDC Encumbrance/Unliquid ated Obligation Unobligated Balance Letter of Credit

20. The Office of Research Services The Office of Research Support Services 20 REVISED March, 2010 Revenue Recognition Revenue Our entitlement to be reimbursed by the sponsor for the allowable expenditures of the grant An equal $ of Revenue is recognized for every $ of allowable expense in object code 4600 Grant Revenue Unallowable expenses and expenses above the award amount do not recognize revenue Revenue does not necessarily reflect the cash received from the sponsor WHAT’S WRONG WITH CHARGING AN INDIRECT COST DIRECTLY TO THE GRANT ?

21. The Office of Research Services The Office of Research Support Services 21 REVISED March, 2010 Other Potential Sources of Revenue on a Grant Fund University Funded Cost Sharing - Object Code 4822 TIF (Interest) Income - Object Code 4780 Program Income - Object Code 4620 In the end (at closeout and disablement of the fund), all sources of Revenue must equal Total Expense.

22. The Office of Research Services The Office of Research Support Services 22 REVISED March, 2010 Grant Receivables (Object Code 1220) As payments are received from the sponsor, the Receivable decreases (a credit) As Revenue is recognized (a credit), the Receivable increases (a debit) Positive Receivable: Expenditures > Cash Received Negative Receivable: Cash Received > Expenditures

23. The Office of Research Services The Office of Research Support Services 23 REVISED March, 2010 Grant Receivables (Object Code 1220) LOC Letter of Credit funds have a zero receivable. The actual receivable resides in a special holding fund for all funds under the specific LOC.

24. The Office of Research Services The Office of Research Support Services 24 REVISED March, 2010 Special Object Codes (entered by Research Services) PBIL - The Maximum Billable Award PBUD - Authorized Project Budget FSRD - The Total Direct Costs reported to the sponsor FSRI - The Total Indirect Costs reported to the sponsor

25. The Office of Research Services The Office of Research Support Services 25 REVISED March, 2010 More on PBIL PBIL Serves as the control and limits revenue recognition up to award amount Gets reduced to reported amount and guarantees that revenue recognition above reported amount does not occur Will always be rounded to nearest dollar. Cents will only show if there has been a carryover of funding from a previous fund (increase) or has been adjusted to the reported amount (decrease)

26. The Office of Research Services The Office of Research Support Services 26 REVISED March, 2010 More on PBUD PBUD Most often equal to PBIL except on advance accounts

27. The Office of Research Services The Office of Research Support Services 27 REVISED March, 2010 Operating Budget (Entered by Administrator)

28. The Office of Research Services The Office of Research Support Services 28 REVISED March, 2010 Unliquidated Obligations/ Unobligated Balance Unliquidated Obligations –Commitments of the budget period not yet paid –When reported funding gets reserved in the next budget period so they can be paid –Must liquidate within 90 days (A-110) –Can not be reported in the final period Unobligated Balance –unspent and uncommitted –may be able to carryover automatically or with approval

29. The Office of Research Services The Office of Research Support Services 29 REVISED March, 2010 Questions???