I have a Grant, Now What??! John Hulvey Office of Sponsored Programs Administration and Accounting

I have a Grant, Now What??!John Hulvey

Office of Sponsored Programs Administration and Accounting

What we will Cover Today:

Understanding the Basics Common Misconceptions What happens when an award is issued Roles of the Principal Investigator (PI) Avoiding problems What information is available to help Questions

Vocabulary

Department ID = Org. Code = Grant number.

Account # = Expenditure Code PI = Principal Investigator Facilities and Administration (F&A) =

“Overhead” or Indirect Costs (IDC) Matching = Cost Sharing

Common Misconceptions

All sponsored program awards are “Grants” Also Cooperative Agreements and Contracts This is important because different rules apply

PI has full control over funds JMU Policy 2201 states “All funds received for

sponsored programs are under the fiscal control of the assistant VP for Finance”

Some awards allow PI flexibility on how funds are used, but don’t start with that assumption.

More Common Misconceptions

JMU receives ‘cash’ with an award Most awards are issued on a ‘reimbursement

basis’ Sponsor can refuse to reimburse unallowable

expenses. Because I have outlined expenditures in

the grant, travel authorizations and other payment paperwork are not necessary. WRONG

What happens when Sponsored Programs Accounting receives an

award?

Establish Financial Framework 5xxxxx Dept ID(s); Load the budget based on the budget

approved in the award; Mail “Award Binder”

Note regulatory requirements Document Billing timing and

requirements Document Close-out date

What Rules Apply?

1) Award document May include references to specific State or

Federal regulations

2) University policies

3) State regulations

4) Federal regulations Nothing can contradict Federal Law. Always follow JMU procedures

8

I have the grant, now what’s going to happen!?

What is in the Award Binder? Provides Grant #

(or Dept ID or Org #)

Contents Signature authorization

instructions PS & eVA Access information Small Purchase Charge Card

information Internal budget form

Dividers Includes your proposal &

award documents Insert your financial printouts

& expenditure reconciliations Quick find directories

What’s the Principal Investigator’s (PI’s) Role?

Person of many hats Researcher, Manager, Accountant.

Has DIRECT responsibility for Grant Must complete responsibilities of grant Must comply with all regulatory requirements Must work within approved budget and timeline

May delegate workload

What Should I Know to Help a PI Manage an Award?

1) What is the approved budget?

2) What is the project period? Both of those should be found in the

award binder. If the PI won’t provide these items, refuse

to help them and send them to me if they have a problem with that.

3) Understand that the sponsor has expectations for how the funds are used.

How do I Manage the Award?

Follow the approved budget and budget justification. NOTE: Some sponsors are not as strict as

others in terms of ‘following the budget’. You may contact Sponsored Programs Accounting to determine how much flexibility you have.

If you cannot tie an expenditure request to a budget line item, don’t process the request.

How do I Manage the Award?

Work within the approved Project Period Most sponsors tract the project period This date restriction applies to expenses

BEFORE the award as well as after. Most sponsors will allow “no-cost extensions”,

but often require the request 30-days prior to the ending date.

Close-out periods do NOT allow project work to continue.• Time is for reporting and final processing.

How do I Manage the Sub-recipients?

VERY CLOSELY! New federal regulations (2 CFR 200.330 – 332) require sub-recipient monitoring.

Must ensure they are following their approved budget and timeline

Must ensure they are completing their assigned work.

Their invoices should not be paid without adequate monitoring documented.

How are Changes Made?

Some (most?) projects require some adjustment in the budget or timeline.

Work with the Office of Sponsored Programs to modify the budget or extend the project

Must receive sponsor’s permission in advance of implementing any change

Cost Transfers

Defined as ‘moving an expense from one Department ID to another’. Use an Agency Transaction Voucher ATV Transfer expenses INTO the grant

Department ID – cannot move ‘cash’ OUT. Should only be used in limited situations

Cost Transfers – Continued

Cost Transfers should only be used for Personnel expenses or to correct errors

Sufficient documentation to track the expense detail will be required

Cost Transfers should be processed within 45 days from the time of the original expense posting.

What Records Must be Kept?

All expenditure documentation Including monthly reconciliation to 5xxxxx DeptID Personnel and Non-Personnel expenses must be

tracked. Collect “matching” data (cost share) Document time employees worked on the

project. (Effort Reporting) Document technical work from the project.

Record Retention

Financial records from the beginning of the award need to be maintained up to five (5) years FROM THE CLOSEOUT OF THE AWARD. (Binder might help with this). For multi-year awards, this could mean that

financial records would be 7 to 10 years old. Example: Award ends 6/30/2015; final reports submitted 9/15/2015; record retention period ends 9/15/2020. If award began 7/1/2013, those transactions happened over 7 years earlier.

Some awards allow a 3-year period; if in doubt, use 5 years.

How do I Avoid Problems Administering an Award?

FOLLOW THE AWARD BUDGET! Follow JMU Fin Policies and Procedures Reconcile the DeptID Monthly Limit Cost Transfers (ATV’s)

If required, process promptly Complete work within the Project

Period (may cross fiscal years) Request budget revisions or no-cost

extensions early, as necessary 90-day ‘close out period’ for paperwork only

Close-out Can be considered the “fiscal year end” for

the award Generally a cause for rush and panic, and

it should not be. Make sure requests to “spend out” the

budget are justified to the award and calculated correctly Calculate remaining balance on PARs Remember that FICA tax is added to PAR for

salary amounts.

What Resources Exist to Assist in Sponsored Project Administration?

Financial Reports: nVision “C” Report – “Life to Date” Totals with

Current Month Details nVision “D” Report – Life to Date totals with

Details by Individual line item (by month). Monthly Detail Report

nVision Query (by fiscal year) Monthly reconciliation is a requirement

Sample “C” ReportRun Date: 9/28/2015Report ID: 550598C

ACCOUNT DESCRIPTIONORIGINAL BUDGET

REVISED BUDGET

LIFE-TO-DATE

REVENUE/ EXPENDITURE

CURRENT MONTH

REVENUE/ EXPENDITURE LIFE-TO-DATE

BUDGET AVAILABLE

010000 PRIVATE GRANTS 0.00 0.00 0.00 (22,470.00) 22,470.00 ALLREV ALL REVENUE ACCOUNTS 0.00 (30,000.00) 0.00 0.00 (30,000.00)

xxxxx TOTAL REVENUES 0.00 (30,000.00) 0.00 (22,470.00) (7,530.00)

111300 SOC SECURITY-WAGE 0.00 0.00 0.00 1,040.40 (1,040.40)114400 WAGES, STUDENT 0.00 0.00 0.00 18,000.00 (18,000.00)PS PERSONAL SERVICE EXPENSES 0.00 19,040.40 0.00 0.00 19,040.40 xxxxx SUBTOTAL PS EXPENSES 0.00 19,040.40 0.00 19,040.40 0.00

xxxxx SUBTOTAL PSREC RECOVERIES 0.00

TOTAL PERSONAL SERVICES 0.00 19,040.40 0.00 19,040.40 0.00

121900 INBOUND FREIGHT 0.00 0.00 0.00 231.39 (231.39)

122700 EMPL TRAIN-TRANSP,LODG,MLS&INC 0.00 0.00 0.00 2,054.97 (2,054.97)134100 LABORATORY SUPPL 0.00 0.00 0.00 4,741.38 (4,741.38)154110 OVERHEAD 0.00 0.00 468.28 3,910.22 (3,910.22)NPS NON-PERSONAL SERVICE EXPENSE 0.00 10,956.82 0.00 0.00 10,956.82 xxxxx SUBTOTAL NPS EXPENSES 0.00 10,956.82 468.28 10,937.96 18.86

xxxxx SUBTOTAL NPSREC RECOVERIES 0.00

TOTAL NON-PERSONAL SERVICES 0.00 10,956.82 468.28 10,937.96 18.86

xxxxx TOTAL EXPENSES AND RECOVERIES 0.00 29,997.22 468.28 29,978.36 18.86

JAMES MADISON UNIVERSITYSUMMARY FINANCIAL REPORTFor the Period Ending: 09-30-2015

For Department 5xxxxx "Award Description"

Sample “D” Report - Monthly columns with activity by fiscal year: “2015-4” = October 2014; “2015-11” = May 2015

JAMES MADISON UNIVERSITYSUMMARY FINANCIAL REPORTFor the Period Ending: 09-30-2015For Department 5xxxxx "Award Title"

ACCOUNT DESCRIPTIONORIGINAL BUDGET

REVISED BUDGET

LIFE-TO-DATE

REVENUE/ EXPENDITURE

CURRENT MONTH

REVENUE/ EXPENDITURE LIFE-TO-DATE

BUDGET AVAILABLE

ACCOUNTING PERIOD 2015-4 2015-5 2015-10 2015-11 2015-12 2016-1 2016-2 2016-3

010000 PRIVATE GRANTS 0.00 0.00 0.00 0.00 (22,470.00) 0.00 0.00 0.00 0.00 0.00 0.00 (22,470.00) 22,470.00 ALLREV ALL REVENUE ACCOUNTS 0.00 (30,000.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (30,000.00)

xxxxx TOTAL REVENUES 0.00 (30,000.00) 0.00 0.00 (22,470.00) 0.00 0.00 0.00 0.00 0.00 0.00 (22,470.00) (7,530.00)

111300 SOC SECURITY-WAGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 818.55 221.85 0.00 1,040.40 (1,040.40)114400 WAGES, STUDENT 0.00 0.00 0.00 0.00 0.00 0.00 1,000.00 3,400.00 10,700.00 2,900.00 0.00 18,000.00 (18,000.00)PS PERSONAL SERVICE EXPENSES 0.00 19,040.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19,040.40 xxxxx SUBTOTAL PS EXPENSES 0.00 19,040.40 0.00 0.00 0.00 0.00 1,000.00 3,400.00 11,518.55 3,121.85 0.00 19,040.40 0.00

xxxxx SUBTOTAL PSREC RECOVERIES 0.00

TOTAL PERSONAL SERVICES 0.00 19,040.40 0.00 0.00 0.00 0.00 1,000.00 3,400.00 11,518.55 3,121.85 0.00 19,040.40 0.00

121900 INBOUND FREIGHT 0.00 0.00 0.00 205.99 0.00 0.00 0.00 0.00 25.40 0.00 0.00 231.39 (231.39)

122700 EMPL TRAIN-TRANSP,LODG,MLS&INC 0.00 0.00 0.00 0.00 0.00 1,173.27 0.00 0.00 881.70 0.00 0.00 2,054.97 (2,054.97)134100 LABORATORY SUPPL 0.00 0.00 0.00 4,141.08 0.00 0.00 0.00 0.00 600.30 0.00 0.00 4,741.38 (4,741.38)154110 OVERHEAD 0.00 0.00 468.28 0.00 652.06 0.00 175.99 150.00 510.00 1,953.89 468.28 3,910.22 (3,910.22)NPS NON-PERSONAL SERVICE EXPENSE 0.00 10,956.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10,956.82 xxxxx SUBTOTAL NPS EXPENSES 0.00 10,956.82 468.28 4,347.07 652.06 1,173.27 175.99 150.00 2,017.40 1,953.89 468.28 10,937.96 18.86

xxxxx SUBTOTAL NPSREC RECOVERIES 0.00

TOTAL NON-PERSONAL SERVICES 0.00 10,956.82 468.28 4,347.07 652.06 1,173.27 175.99 150.00 2,017.40 1,953.89 468.28 10,937.96 18.86

xxxxx TOTAL EXPENSES AND RECOVERIES 0.00 29,997.22 468.28 4,347.07 652.06 1,173.27 1,175.99 3,550.00 13,535.95 5,075.74 468.28 29,978.36 18.86

Where to Get More Information? (cont’d)

Contact Sponsored Programs Accounting John Hulvey

• 83725 hulveyjd@jmu.edu Brenda Wilburn

• 82314 wilburbc@jmu.edu Donna Crumpton

• 88099 crumptdl@jmu.edu Kyra Shiflet

• 87108 shiflekl@jmu.edu

Questions?