Transcript Grants Seminar - Northern Michigan University

Financial Grant Management
Presented by:
Lindsey Butorac
Accountant
Controller’s Office
The grant was funded – now what?
 Immediately send the grant agreement and other
documents to the Controller’s Office
 The Controller’s Office will:
 Review the grant agreement:
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For compliance with terms, conditions, and applicable laws
With Risk Management for insurance and liability issues
With Human Resources for employment related issues
 Obtain the signature of a Contracting Officer if needed
 Mail the signed grant agreement to the granting agency
 Send signed copies of the grant agreement to the
Principal Investigator and the Grants & Research Office
Authorized Officials & Officers
 Authorized Official for grant proposals:
 Associate Provost for Academic Affairs and Dean of
Graduate Studies – Cynthia Prosen
 Primary Contracting Officer for grant agreements and
contracts:
 V.P. of Finance and Administration – R. Gavin Leach
 Only individuals authorized by the Board of Trustees
may legally bind the University
Post Award Process
 The Grants & Research Office will send you a memo
acknowledging your award with a copy of the Request for
Grant Organization Number form
 Form is also available on Grants & Research Website
 Once the form is complete, return the original to the
Controller’s Office and a copy to the Grants & Research
Office
 A meeting will be scheduled for the Principal Investigator
to meet with representatives from the Grants & Research
Office and the Controller’s Office to discuss any
requirements and questions
Request for Grant Org # Form
 Complete and submit this form
along with a copy of the award
letter and most recent budget
 Make sure line 4 of the form is
filled in:
 Signature of financial manager
(usually the department head) is
required
 Normally the department’s main
organization number is listed
starting with a 2 or 3
 A grant organization number (starts
with 5) cannot be used
 Must be signed by the Principal
Investigator
Post Award Process Cont’d
 Principal Investigator will be e-mailed an organization
number to use for the grant expenses
 Expenses must be within dates specified in grant agreement
 Expenses must be in line with the approved budget
 The Principal Investigator is the Financial Manager of the
organization number assigned to the grant and approves
all expenses
 Supervisor approval still required for certain transactions:
 Personal reimbursements to Principal Investigator
 Travel of the Principal Investigator
 Business Entertaining of University Guests paid by Principal
Investigator
How Do I Spend the Money?
 University Credit Card
 Purchase Order
 Check Request
 Journal Entry
 Personal Services Contract
 University Department Charge
 Payroll
Important Things to Remember
 Do not purchase an item and say “bill NMU”
 Do not personally pay for software, cameras, or
equipment – prior approval is needed
 If the item has a warranty do not purchase personally
and request reimbursement from NMU
 Warranty is held by original owner and will be voided
when reimbursed by NMU
 University credit card or Purchase Order should be used
for warranty to be issued to NMU
Important Things to Remember
 Purchase order is required for purchases that need to
be bid
 Food Service Policy must be followed for food
consumed on campus
 http://webb.nmu.edu/hr/SiteSections/Resources/Admi
nPolicyManual/FoodService.shtml
 Hazardous materials must be purchased in accordance
with the Hazardous Materials Management Policy:
 http://webb.nmu.edu/Departments/PublicSafety/SiteSe
ctions/PoliceServices/Policies/HazardousMaterialsMgm
t.shtml
University Credit Card & Concur
 The University credit card issued to
you can be used for expenses that
need to be charged to the grant
 Graduate Assistants can be issued
University credit cards under
special circumstances
 List the grant organization number
to be charged when settling
expenses in Concur
University Credit Card & Concur
 The settlement process is essentially the same as other
University credit card purchases with the addition of a
grant review
 Principal investigator must approve all grant charges
as the financial manager (travel requires supervisor
approval)
 Credit card expenses are NOT charged to the grant
until they are completely settled in Concur
Purchase Order
 Frequently used to order supplies or services over $1,000
 Send completed Purchase Requisition and any
supporting backup to Controller’s Office first for preaudit (only for grants)
 Controller’s Office will forward to purchasing
 When goods arrive from the vendor:
 Indicate that goods have been received on a copy of the
Purchase Order, sign & mark “ok to pay”
 Forward to Vendor Payables for payment
 http://www.nmu.edu/purchasing/req.html
Purchase Requisition
Financial
manager’s
signature required
List organization #
to be charged here
Send to
Controller’s Office
for pre-audit
Itemize items to be
purchased and
other special
instructions here
Purchase Order
 Make copy of Purchase
Order
 Sign and indicate “ok
to pay” when goods
received
 Forward to Vendor
Payables for payment
Check Request
 Frequently used for:
 Refunds or purchases that require pre-payment such as
dues, memberships, and subscriptions
 Personal reimbursements (other than travel)
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Must attach original receipts showing proof of payment
Supervisor signature required
 http://www.nmu.edu/finance/FORMS/Check%20Req
uest%20Form%20New.pdf
Check Request
Personal reimbursements require
original receipts showing
payment (please look carefully as
packing slips and order
confirmations do not always
show proof of payment)
Attach original and one copy of
invoice or other support for dues,
subscriptions, or memberships
List organization # to be charged here
List account code here
Signature of financial manager required
(also need supervisor’s signature for
personal reimbursement to PI)
Common Account Codes
 7120 – Office Supplies
 7163 – Advertising
 7123 – Education Supplies
 7165 – Stdt Programming
 7128 – Lab Supplies
 7180 – Repairs & Maint.
 7135 – Other Supplies
 7190 – Printing
 7140 – Room Rental
 7191 – Postage
 7141 – Equipment Rental
 7192 - Prof. Services
 7142 – Misc. Rental
 7300 – Faculty Travel
 7155 – Other Fees
 7305 – Staff Travel
 7160 – Admin Expense
 7310 – Student Travel
 7161 – Subscriptions
 7330 – Univ Guest Expense
 7162 – Memberships
 7340 – Group Expenses
Journal Entry
 A journal entry is normally used to move a charge to
the proper organization number
 Common example: the department paid for
supplies that should have been charged to the grant
 Please contact your department or the Controller’s
Office for assistance completing this form
 http://www.nmu.edu/finance/FORMS/Dept%20Jo
urnal%20Entry%20(banner).pdf
Personal Services Contracts
 Used to purchase services from individuals, such as:
 Contractors/Consultants
 Presenters/Performers
 External evaluators
 Two forms need to be completed:
 Transmittal Form (internal document)
 Limited or Standard Services Contract
Personal Services Contracts
 Forms are available in the Warehouse
 Standard Services Contract is also available in
electronic format from Risk Management (2745)
 Send completed forms directly to Risk Management
for processing
 NMU employees cannot be paid through a personal
services contract - must be paid via additional
assignment through payroll
University Department Charges
 University departments can directly charge a grant for
services – just let them know the organization number
 Authorized departments include, but are not limited to:
 Printing Services
 Mail Services
 Bookstore
 Conference & Catering
 Audio Visual
 Transportation
Payroll Related Issues
 Please see your department secretary to pay:
 Student Employees
 Temporary Employees
 Graduate Assistants
 Additional Assignments
 Additional Assignments require an EPS contract to be
prepared by the department and approved by the
Dean
Adjunct Replacements
 Amounts needed to cover the cost of adjunct
replacements for release time are often budgeted when
preparing a grant proposal
 Adjunct replacements cannot be charged directly to
the grant
 Salary and fringe benefits of the person performing
the work will be charged to the grant up to a maximum
allowed by the grant
 Funding of adjunct replacements will be handled by
the Department and/or Dean’s Office
Fringe Benefit Rates
 Fringe benefit rates vary based on type of position
 Common Fringe Benefits Rates (As of 7/1/08)
 AAUP Faculty – 45.6%
 NMUFA Faculty – 56.9%
 Additional Assignment/Overload – 24.2%
 Adjunct Faculty – 17.6%
 Temporary Labor – 13.7%
 http://webb.nmu.edu/GrantsAndResearch/Document
s/Fringe_Benefit_Memorandum-FY09.dot
Students & Fringe Benefits
 A student must be enrolled in the minimum credit
hours to be considered a student employee and not
subject to fringe benefits
 Undergraduate 6 credits
 Graduate
4 credits
 A student who is not enrolled in the minimum credit
hours is considered Temporary Labor
 Temporary Labor Appointment form needs to be
completed and submitted to Human Resources
 Human Resources approval is needed prior to hiring
Students & Fringe Benefits
 A student must be enrolled for Fall to be considered
Temporary Student Labor during the summer. The
student will be subject to 13.7% for fringe benefits.
 A student enrolled in the minimum credit hours
during Summer is considered Student Labor and not
subject to fringe benefits
 All students are considered Temporary Student Labor
and subject to 13.7% for fringe benefits during August
Travel & Business Entertainment
 Employee travel expenses are reimbursed at current
IRS rates
 Mileage rate ~ Effective January 1, 2009, personal vehicle
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mileage will be reimbursed at 55 cents per mile
Meals with an overnight stay are reimbursed at actual
cost up to a maximum of $32 in a 24-hour period
Meals without an overnight stay are reimbursed at actual
cost
Lodging ~ receipts required and reimbursed at actual
cost
Parking or taxi ~ receipts required for amounts over $75
per occurence
Travel & Business Entertainment
 Business entertaining of University guests are
reimbursed at actual cost with receipts
 Granting agency may have specific restrictions
regarding entertainment expenses
 University Travel Policy and Procedures can be
found at:
 http://webb.nmu.edu/hr/SiteSections/Resou
rces/AdminPolicyManual/Travel.shtml
 http://webb.nmu.edu/hr/SiteSections/Resource
s/AdminProcedureManual/Travel.shtml
Cost Share/Match
 Any cost share/match proposed in the grant
application must be documented
 Documentation needed will be determined on a caseby-case basis and will be discussed with Principal
Investigator
 Common types of documentation:
 Time & Effort Reports
 Revenue and Expense Transaction Report with expenses
highlighted to support department expenditures
 Cash transfer to grant
Sample Time & Effort Report
Complete actual
effort column
(must total 100%)
Signed by both
employee & supervisor
How Do I View My Budget?
 Controller’s Office will provide access for you to view
University Finance Reports through MyNMU
 First time users will receive an e-mail with setup
instructions – please call the Controller’s Office (2054)
if you have difficulties
 Current Balance Reports - choose the “Financial
Statement for Grants & Projects” to see the summary
status for the entire grant period
 Transaction Reports – “Revenue and Expense
Transactions for Projects & Grants” to see all
transaction details for the entire grant period
Summary Report
Balance of
Grant
Available to
Spend
Click on: Administrative Reports
Finance Reports
Financial Statement for Grants & Projects
Current Balance Reports
Detail Transaction Report
Click on: Administrative Reports
Finance Reports
Revenue and Expense Transactions for Projects & Grants
Transaction Reports
Budget Suggestions
 The University Finance Reports only contain
information that has been processed by accounting
 Suggested method to determine what has and has not
been processed:
 Keep a file with copies of invoices and receipts related to
the grant
 Regularly verify with the detail transaction report what
transactions have been processed and move processed
invoices/receipts to a paid file
How do I change the budget?
 Budget modifications generally require prior approval
of the granting agency
 Budget requirements are usually stated in the grant
agreement and vary by agency
 Some agencies allow a 10-20% deviation per category
in the budget while others are not so lenient
 Please contact the Controller’s Office to discuss your
budget situation before contacting the granting agency
to modify the budget
Financial Reporting
 The Controller’s Office will generally prepare and
submit all financial reports and cash requests
 Any financial data prepared by the Principal
Investigator, including data in the program report,
must be submitted to the Controller’s Office for
approval PRIOR to submission to an external
organization
Any questions???
Important Phone Numbers
 Grants & Research
 Andrew Smentkowski – 2456
 Sandra Gayk – 2440
 http://webb.nmu.edu/GrantsAndResearch
 Controller’s Office – 2054
 Lindsey Butorac – 1076
 Purchasing - 2360
 Human Resources – 2330
 Risk Management - 2745
Have Further Questions or Need Help
Contact Me!
Lindsey Butorac
Accountant
Controller’s Office
1406 Hedgcock
Phone: 227-1076
Fax: 227-2167
E-mail: [email protected]