Transcript Post Award Workshop

Post Award Workshop
April 11, 2006
RESEARCH ACCOUNTING STAFF
487-2244
Julie Seppala, Director
[email protected]
Tony Dupuis, Senior Research Accountant
Federal Project
Setup & Close-Out
[email protected]
Thomas Holzberger, Assistant Research Accountant
Industrial, REF, Faculty Development,
Project Setup & Close-Out
[email protected]
Christine Gruver, Office & Account Assistant
Expenditure Review
[email protected]
Tammy LaBissoniere, Senior Research Accountant
Federal Pass-Through & Foundation , State
Project Setup & Close-Out
[email protected]
Pamela Givens, Assistant Research Accountant
Sponsored Billing, Purchase
Requisition Review
[email protected]
Karen Foltz, Office Assistant
Support Staff
[email protected]
Fiscal Responsibilities
1. University Wide Responsibilities
 Every
university employee has a responsibility to ensure
that the university’s funds are used to advance the mission
of the university and the academic needs of the student.
 Individuals
have the responsibility of ensuring that all
authorizations or expenditures comply with university
expenditure policies as well as with any sponsoring agency
or donor restrictions and applicable policies.
Fiscal Responsibilities
1. University Wide Responsibilities
(continued)
 A good
rule of thumb is to always consider the
appropriateness of the expenditure. Should the expense be
paid from public funds?
 Fiscal
controls must include a system of supervisor checks
and balances at all levels of the organization for all
expenditures. The reviewing of the monthly account
statements and payroll reports for accuracy is one example
of a check and balance. The Research Accounting
Department is always available for consultation.
Sponsored Projects Responsibilities
http://www.admin.mtu.edu/research/sprot/policies/responsibilities.html
1. Principal Investigator Responsibilities
 Assurance
of appropriateness, reasonableness, timeliness
and allowability of expenditures
 Management of expenditures within start and end dates, not
to exceed award amount
 Initiation of requests for re-budgeting and cost
transfers/reallocations
 Preparation of technical reports and provision of other
deliverables
 Review of interim financial reports on a monthly basis
Sponsored Projects Responsibilities
1. Principal Investigator Responsibilities (continued)
 Documenting
of cost-share/matching funds if required
 Review of employee effort reports (payroll
certifications)
 Timely final financial close out of projects
 Initiation of request for time extensions
Commonly Used Accounting Terms
Index – Six digit letter/number combination assigned to a funded
project that is used to identify the project in the accounting
system. This is the number that you use when charging
expenditures and setting up payroll.
Account Code – The four or five digit letter/number combination
that categorizes the sponsor budget and expenditures related
to an award into specific categories (payroll, travel, supplies,
etc).
PI/Financial Manager – The individual listed in the award
document as the person responsible for all aspects of a
specific project.
Commonly Used Accounting Terms
(continued)
Encumbrance – An amount committed to an outside vendor through
the use of a purchase requisition/purchase order for supplies,
equipment or services. The obligation to the vendor has been
made therefore this encumbrance reduces the amount available to
spend.
Facilities & Administrative Costs/Indirect Costs/Overhead - A
federally negotiated rate for the recovery of costs that are incurred
for common or joint objectives and, therefore cannot be readily and
specifically identified to a particular sponsored project. The rate is
comprised of two main components; Administrative Costs (both
central & departmental) and Facilities (operations & maintenance).
This rate is applied to Modified Total Direct Costs as the
expenditures are charged to the index/project.
Commonly Used Accounting Terms
(continued)
Modified Total Direct Cost/MTDC - The direct costs charged to
an index/project excluding equipment, tuition, and subcontracts
over $25,000.
Cost Share/Matching – The portion of total project costs that are
paid from sources other than the sponsor. Cost share can be
either dictated by the sponsor in the proposal solicitation or be
a voluntary contribution shown to the sponsor in a proposal
budget. MTU is obligated to identify and track the cost share
expenditures.
Reallocation – The term used to describe the procedure of
moving an expense (including payroll) from one index to
another or from one account code to another to correct clerical
or bookkeeping errors.
Commonly Used Accounting Terms
(continued)
Transfer – The term used to describe the procedure for
moving actual dollars from one index to another.
Transfers out of sponsored indexes are not allowed.
Transfers will always have an account code beginning
with a T.
Incentive Return – The amount of funds returned on a
quarterly basis to the PI (6%), Department (12%), and
College (7.3%). The incentive return is based on the
actual amount of Overhead/Indirect Costs/Facilities &
Administrative Costs collected in that quarter.
Commonly Used Accounting Terms
(continued)
Month End Statements
Summary: This statement shows the funded budget by
categories (account code), and total expenditures charged for
each account code under each index. The report has the
following columns: Current Month Activity, Year to Date (YTD),
Activity, Budget, Project to Date (PTD) Activity, Open
Encumbrance & Balance.
Detail: This statement lists each expenditure, the amount, the
date of the transaction and the source document (Purchase
Order #, Invoice #, Journal Entry #).
Payroll: This statement lists each individual who has been
paid from the project, by account code. The statement
includes both current month and cumulative year to date
columns for hours and earnings.
How to Read a Month End
Summary Statement
Month End Summary Statement
Organization/Fund Summary Report
Explanations and Definitions
1. Report Name: The Oracle report identifier and name
2. Department: The number used to identify University departments
3. Index/Fund/Organization: Numbers assigned by Research Accounting for
identification/processing purposes.
4. Grant Contract Number: Sponsor assigned award number
5. Associated Indexes: List of indexes under the same Grant Contract Number
(see #4)
6. Financial Manager: The person in charge of the fund
7. Start-End Dates: Dates in which costs need to be incurred
8. Cost Sharing Rate: Rate at which system calculates MTU’s share of
expenditures
9. Overhead Rate: Percent of overhead charged to expenditures according to
the sponsored agreement
Month End Summary Statement (Continued)
10. Proposal Number: Number assigned by MTU Research and Sponsored
Programs
11. Current month’s ACTIVITY: Monthly activity for this fund and organization.
See FYGDOR003A – Transaction Detail. A “+” indicates a debit (DR) and a
“-“ indicates a credit (CR).
12. Year-to-Date Activity: Fiscal year-to-date activity
13. Budget: Total funded project budget
14. Project-to-Date Actual: Total Expenditures from the project’s start date
15. Open Encumbrances: Unpaid purchase orders. See FYPPUR001 Purchase Orders by Department for transaction detail.
16. Balance: Represents the amount left to spend in a budget category;
Balance = Budget – Project-to-date – open encumbrance
17. Project Value: Total of sponsor award amount and direct cost share
18. Subtotal of individual account codes in a specific category of expenses
19. PTD Direct Costs: The cumulative expenditures excluding overhead
Allowable & Unallowable Costs
http://www.admin.mtu.edu/research/sprot/policies/allowcosts.html
Regularly Requested Unallowable Costs:
 Local Telephone Costs
 Postage
 Office Supplies, Copy & Fax Charges
 Cell Phones
 Memberships
 Promotional Items
 Computers, Computer Components, Software
Reallocation of Expenditures
http://www.admin.mtu.edu/research/sprot/training/realloc_exp.pdf



Any expenditure allocable to a particular sponsored project
may not be shifted to other sponsored projects in order to
meet deficiencies caused by overruns.
All reallocations should be made within 90 days of the original
charge.
The Principal Investigator of each index involved is required to
sign the form. Additional signatures are required for
reallocations 60 days after the original charge.
Reallocation of Expenditures
(continued)

Due to the fact that closely related work may be
supported by more than one funding source, the
reallocation of expenditures from one source of
funding to another may be allowable. Provided
that:
1. The expenditure is an allowable charge
2. The initial charge could have been appropriately
charged to the other project
3. The charge is represented in the approved
budgets of both projects.
4. The reallocation explanation clearly explains
why the charge is appropriate to either project.
Reallocation of Expenditures
(continued)

The reallocation of expenditures form is located at:
http://www.admin.mtu.edu/research/acct/

The payroll reallocation form is located at:
http://www.admin.mtu.edu/research/acct/
Project Closeout
http://www.admin.mtu.edu/research/sprot/training/proj_closeout.pdf

The normal closeout period is 90 days, however, some
projects require closeout as early as 30 days. All technical
reports and deliverables should be completed and submitted
by this date.

For projects with a positive balance the PI must inform
Research Accounting what action to take.
* If no advice is received the budget will be
reduced/deobligated and the sponsor will not be billed
in full, or funds will be returned to the sponsor.
Project Closeout
(continued)

The PI needs to work closely with Research Accounting
to correct deficits as soon as possible

The PI should identify a non-sponsored account with
sufficient funds to cover the deficit
Questions ?
THANK YOU FOR
ATTENDING