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Award Acceptance and Account Set-Up. Sponsored Programs at Penn. 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 - PowerPoint PPT Presentation
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The Office of Research Services The Office of Research Support Services
1REVISED March, 2010
Award Acceptance and Account Set-Up
Sponsored Programs at Penn
The Office of Research Services The Office of Research Support Services
2REVISED 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.pdf– SOM - Advance Accounts are approved and set up by ORSS– All other schools - forward request to ORS
The Office of Research Services The Office of Research Support Services
3REVISED 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
The Office of Research Services The Office of Research Support Services
4REVISED March, 2010
What is a Notice of Award (NOA)?
• An official written communication from a sponsor providing financial support for a proposed sponsored project
The Office of Research Services The Office of Research Support Services
5REVISED 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
The Office of Research Services The Office of Research Support Services
6REVISED March, 2010
Account Set-Up
The Office of Research Services The Office of Research Support Services
7REVISED March, 2010
Account Set-Up Notice of Award
(NOA)Received
Fund AttributesFund Parents
Special BudgetsAccount Segments
Assigned in PennERA & Sent to GL
Fund & Legacy Number Created
in BEN Financials & Sentto PennERA
AISis
Generated
Status Changed From Proposal To Award
The Office of Research Services The Office of Research Support Services
8REVISED 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
The Office of Research Services The Office of Research Support Services
9REVISED 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: [email protected]
The Office of Research Services The Office of Research Support Services
10REVISED 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.
The Office of Research Services The Office of Research Support Services
11REVISED March, 2010
Review the Award• AIS is not substitute for award• Review terms and conditions of
award• Sponsor guidelines• Restrictions
The Office of Research Services The Office of Research Support Services
12REVISED March, 2010
Subcontract Process• BA/PI prepares subcontract request form
http://www.upenn.edu/researchservices/docs/SUBCONTRACTREV.docComplete package sent as pdf email to [email protected]
• 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.
The Office of Research Services The Office of Research Support Services
13REVISED 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
The Office of Research Services The Office of Research Support Services
14REVISED March, 2010
The FDPFederal 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 includedin expanded authorities.
The Office of Research Services The Office of Research Support Services
15REVISED March, 2010
Carryover Authority & SNAP• Carryover Authority
– Generally R’s, K’s and P01’s, but always check the Notice of Grant Award.
• SNAPStreamlined Non-competing Award Process
– Generally R’s, K’s– A grant must have carryover authority if it is
under SNAP
The Office of Research Services The Office of Research Support Services
16REVISED 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 $)
The Office of Research Services The Office of Research Support Services
17REVISED 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
The Office of Research Services The Office of Research Support Services
18REVISED 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!!!!
The Office of Research Services The Office of Research Support Services
19REVISED March, 2010
Basic Terms to Know• Revenue
Recognition• PBIL and PBUD• FSRD and FSRI• Operating
Budget• Object Code
1220 Receivable
• Adjustment Period• MTDC• Encumbrance/
Unliquidated Obligation
• Unobligated Balance
• Letter of Credit
The Office of Research Services The Office of Research Support Services
20REVISED March, 2010
Revenue RecognitionRevenue• 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 ?
The Office of Research Services The Office of Research Support Services
21REVISED 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.
The Office of Research Services The Office of Research Support Services
22REVISED 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
The Office of Research Services The Office of Research Support Services
23REVISED March, 2010
Grant Receivables(Object Code 1220)
LOCLetter of Credit funds have a zero receivable. The actual receivable resides in a special holding fund for all funds under the specific LOC.
The Office of Research Services The Office of Research Support Services
24REVISED March, 2010
Special Object Codes(entered by Research Services)
PBIL - The Maximum Billable AwardPBUD - Authorized Project BudgetFSRD - The Total Direct Costs reported to the
sponsorFSRI - The Total Indirect Costs reported to the
sponsor
The Office of Research Services The Office of Research Support Services
25REVISED March, 2010
More on PBILPBIL• 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)
The Office of Research Services The Office of Research Support Services
26REVISED March, 2010
More on PBUDPBUD
Most often equal to PBIL except on advance accounts
The Office of Research Services The Office of Research Support Services
27REVISED March, 2010
Operating Budget(Entered by Administrator)
The Office of Research Services The Office of Research Support Services
28REVISED 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
The Office of Research Services The Office of Research Support Services
29REVISED March, 2010
Questions???