Transcript Account Set-Up Training

Sponsored Programs at Penn
Award Acceptance and
Account Set-Up
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
1
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.pdf
– SOM - Advance Accounts are approved and set up by ORSS
– All other schools - forward request to ORS
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
2
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
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
3
What is a Notice
of Award (NOA)?
• An official written communication
from a sponsor providing financial
support for a proposed sponsored
project
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
4
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
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
5
Account Set-Up
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
6
Account Set-Up
Notice of Award
(NOA)
Received
Status
Changed From
Proposal To Award
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
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
7
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
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
8
Receiving the Award and the
Account Information
Sheet (AIS)
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
9
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.
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
10
Review the Award
• AIS is not substitute for award
• Review terms and conditions of
award
• Sponsor guidelines
• Restrictions
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
11
Subcontract Process
• Two Scenarios
– Notice of Award arrives with subcontract included
• ORS contacts BA to verify subcontract information
– BA notifies ORS subcontract needed/requested
• Sponsor approval may be required
• BA/PI prepares subcontract request form
http://www.upenn.edu/researchservices/docs/SUBCONTRACTREV.doc
• ORS completes subrecipient monitoring, prepares subcontract &
sends to subrecipient
– Subrecipient signs & returns
• ORS sends to BA
– Cover letter
– Signed agreement
– Guidelines for BEN Financials Purchase Orders & Sponsored Program
Subcontracts (BEN MEMO)
• BA sets up Purchase Order
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
12
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
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
13
Subcontract Process (cont.)
• PI & BA manage subrecipient invoices
• PI & BA manage subrecipient activities
– PI must determine if work is
satisfactory and approve payment
• Establish strong lines of
communication with contact at other
institution
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
14
Establishing Subcontract in
BEN Financials
• Department verifies Supplier
(Subcontractee) information is in BEN
Buys
– Supplier Name & Site
• Confirm available funds & that
subcontract OBJC’s have been budgeted
correctly
– OBJC 5332 (up to $25,000 charged F&A)
– OBJC 5333 (over $25,000 no F&A charged)
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
15
Establishing Subcontract in
BEN Financials (cont.)
• Generate a Purchase Order (PO)
– Executing a requisition in BEN Buys
• Provide Sole Source Justification
– An approved requisition will generate a PO
– PO approval follows normal PO hierarchy
• Manage PO
– All subcontract payments to supplier must be
approved by responsible PO Manager
– “On-line receipts” required for all subcontract
PO’s
• Use “Receipt Required” field for PO’s less than $5,000
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
16
Reference Documents
• Guidelines for BEN Financials Purchase Orders &
Sponsored Program Subcontracts
– http://www.upenn.edu/researchservices
• Requisitioner User Guide & PO Manager User
Guide
– http://www.finance.upenn.edu/ftd/documentation
– Requisitioner User Guide
• Creating a Requisition
• Entering Receipts
– PO Manager User Guide
• Managing the PO
• Viewing Invoices
• Entering Receipts
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
17
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.
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
18
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
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
19
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 $)
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
20
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
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
21
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!!!!
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
22
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
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
23
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 ?
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
24
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.
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
25
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
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
26
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.
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
27
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
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
28
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)
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
29
More on PBUD
PBUD
Most often equal to PBIL except on
advance accounts
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
30
Operating Budget
REVISED October, 2008
(Entered by Administrator)
The Office of Research Services
The Office of Research Support Services
31
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
REVISED
2008
withOctober,
approval
The Office of Research Services 32
The Office of Research Support Services
Questions???
REVISED October, 2008
The Office of Research Services
The Office of Research Support Services
33