RAP ConferenceSPSS Hot Topics

Tracy Wayman - twayman@jhu.eduClaudia Borsella - cborsella@jhu.edu

Anthony Tosheff - atosheff@jhu.edu

2

SPSS Hot Topics

Subaccounts

Encumbrances

Receipt Tax

GR/IR

3

SPSS Hot Topics

GR/IR

4

GR/IR Cleanup• GR/IR = Goods Receipt/Invoice Receipt

• Prior to September 1, 2009 a 3 way match was required – PO = Goods Receipt = Invoice Receipt

o Grant was expensed at the time of the goods receipt

• On September 1, 2009 a 2 Way Goods Receipt Policy went into effect for POs with a total value of less than $2,500– PO = Invoice Receipt

o Grant is expensed at the time of invoice receipt by Accounts Payable

5

GR/IR Cleanup• GR/IR discrepancies occur when:

– No invoice receipt is entered

6

GR/IR Cleanup• GR/IR discrepancies occur when:

– GR and IR do not equal

7

GR/IR Cleanup• GR/IR discrepancies occur when:

– Goods were returned to vendor and a Credit Memo was issued – Credit Memos are posted to the PO but not to the grant

8

GR/IR Cleanup

• SPSS contacts FSA to correct the PO– Correction is a 48xx FI doc/54xx RefDoc– Correction (in most cases) is a CREDIT to the grant

• To cleanup the discrepancy, SPSS will: – Open the grant– Contact FSA to process– Reverse cost over-run NPCTs (if applicable)– Revise the FSR– Refund the balance

• For current awards, we check for GR/IR discrepancies prior to submitting to Sponsor

• SPSS has cleaned up $2,326,246 since November 2013

• FSA developed a GR/IR Dashboard to assist Departments in identifying issues– DBOs already have access

• SAP Transaction ZMR11

9

SPSS Hot Topics

GR/IR Questions

Subaccounts

10

Subaccounts

• Currently, a majority of JHU Letter of Credit (LOC) grants issued from U.S. Department of Health and Human Services (DHHS) use Payment Management System’s (PMS) pooled accounts to receive funds.

• With the LOC pooled accounts JHU sums all of our DHHS LOC grants and makes one large drawdown of funds from DHHS daily

• NIH is transitioning to PMS subaccounts in response to a DHHS directive to Agencies intended to enhance financial data integrity and financial closeout for all awards.– http://grants.nih.gov/grants/payment/faqs.htm#3781– http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-120.html

• With the LOC subaccounts JHU will drawdown on each individual DHHS grant daily

• Subaccounts have already been used:– ARRA Awards (American Recovery and Reinvestment Act of 2009 )– Centers for Disease Control (CDC) started issuing subaccounts since August 1st, 2013 – All other DHHS Agencies for all New and Competing Segments since October 1st, 2013– As of November 5th, 2014 active subaccounts: JHU: 356 / SOM 253

11

Subaccounts: Is my grant using subaccounts already?

NGA-Section 1 (normally page 3)

SAP, GMGrantD, Billing Tab

12

Subaccounts: How does it affect my grants?

INCREASE MONITORING

CLOSEOUT OF GRANTS

TRANSITION OF REMAINING GRANTS

13

Subaccounts: Increased Monitoring

• Grants Management Specialist (GMS) will have the ability to see the daily drawdown through PMS.

• The amount disbursed should be equal to the expenses in SAP, unless the expense exceeds the SAP Grant Value (authorized minus restricted balances). In those cases, the disbursed would be the SAP Grant Value.

• This will allow the GMS to see your rate of spending. There have been cases, mainly with ARRA grants, where the GMS has contacted JHU about slow and fast spending.

14

Subaccounts: Closeout of Grants

• In an effort to promote more timely financial closeout of awards, PMS will now hold payment requests for funds in subaccounts for awards that are 90 days or more beyond the project period end date. Funds requests for these awards will not be processed unless, and until, the awarding Agency has approved the payment request. (Notice Number: NOT-OD-13-120)

• 90 days means, 90 days, not 3 months!!!

• When closing out awards, must take into account that day 90 can fall on a weekends or holiday.

• Awards should be ready to be closed in SAP by day 86.

15

Subaccounts: 90 Day Countdown

• The R01 ends on June 30th• The 90 day countdown begins for allowable expenses to be drawn down before September 29th

2 pm a $100 supply charge is applied to the grant

11:30 pm LOC revenue program creates a receivable for $100

10 am JHU draws $100 of cash from DHHS

11:30 pm LOC revenue program creates a receivable for $62

5 am the $62 in F&A is applied to the grant

10 am JHU draws $62 of cash from DHHS

September 27th September 28th September 29th

16

Subaccounts: Transition of Remaining Grants

• The transition from the pooled accounts to the subaccounts started October 1st, 2013 and will end September 30th, 2016.

• All new / competing grants have and will be given subaccounts.• Beginning October 1st, 2015, all remaining grants that have not been issued a subaccount will be issued a

new segment period with their NGA. “Administratively Shortened”

GFY Award ID Budget End

Project End

Doc Pd.

PMS Accounts

13 1R01CA123456-01 7/31/14 7/31/18 A Pooled

14 5R01CA123456-02 7/31/15 7/31/18 A Pooled

15 5R01CA123456-03 7/31/16 7/31/16 A Pooled

16 4R01CA123456-04 7/31/17 7/31/18 B Subaccount

17 5R01CA123456-05 7/31/18 7/31/18 B Subaccount

Progress report submitted and reviewed as a type 5. At time of release of the FY16 award, system converts the type 5 to a type 4 and increases document number.

When the FY16 year award is issued, the project period end date is changed to match budget period end date. This makes the FFR expenditure data for this year the final FFR expenditure data and allows NIH to close the accounting record in the old system. Final Invention Statement and Final Progress Report not required at this time.

17

Subaccounts: Transition of Remaining Grants

• No Cost Extensions (NCE): If an award receives an NCE in GFY 14 or 15 for the final year of the segment, no new segment will be issued and the grant will stay in the pooled account.

• Carryover Authority: Carryover is treated as it has always been.– Carryover funds will be moved to the new subaccount upon acceptance of the FFR – A SNAP grant will now be reviewed by GMS in GFY 16 (for GFY 15 expenses) via a new FFR – If the unobligated balance is in excess of the 25% of total authorized amount for the budget period

and the GMS may request additional information from the grantee as part of their review. If the GMS determines that some or all of the unobligated funds are not necessary to complete the project, the GMS may restrict the grantee’s authority to automatically carry over unobligated balances in the future, use the balance to reduce or offset NIH funding for a subsequent budget period, or use a combination of these actions. The GMS’s decision about the disposition of the reported unobligated balance will be reflected in the terms and conditions of the NGA.

• Unliquidated Obligations: Unliquidated obligations can be reported on final FFR if the FFR is now a final because it was administratively shortened to issue subaccounts.

18

Subaccounts: Transition of Remaining Grants

• Grants that will be ending their segment early: – JHU 293– SOM 217

• SNAP grants that will need an early extra FFR between, October 1, 2015 to September 30, 2016: – JHU 207– SOM 165

SOM Department SNAP Non-SNAP Total SOM Department SNAP Non-

SNAP Total

Anesthesiology 4 0 4 Neuroscience 8 2 10Basic Science Institute 0 1 1 Oncology 9 5 14Biological Chemistry 3 1 4 Ophthalmology 6 0 6

Biomedical Engineering 7 0 7 Orthopaedic Surgery 3 0 3Biophysics 2 0 2 Otolaryngology 6 2 8

Brain Sciences Institute 2 0 2 Pathology 9 2 11Cell Biology 1 0 1 Pediatrics 7 7 14

Comparative Medicine 2 1 3 Pharmacology 4 1 5Department of Medicine 32 16 48 Physiology 1 0 1

Dermatology 1 0 1 PM&R 2 0 2Gynecology/Obstetrics 2 0 2 Psychiatry 12 1 13

ICE 3 1 4 Radiation Oncology 1 1 2Medical Genetics 5 2 7 Radiology 10 1 11

Molecular Biology/Genetics 5 1 6 SOM ICTR Inst Clin Tran.Resrch 0 4 4Neurology 13 3 16 Surgery 5 0 5

19

SPSS Hot Topics

Subaccounts Questions

Encumbrances

20

Encumbrances – Who do I contact to help remove them????

• Contact Payroll Shared Services at payroll@jhu.edu with salary, fellowship and associated fringe issues– remember a pending e-form could be causing the encumbrance

• Contact Purchasing Shared Services at POMaintenance@jhu.edu with purchase orders issues– PO Maintenance will ask 5 questions about the encumbrance

1. Purchase Order / Shopping Care Number2. Vendor Name3. Vendor Number4. Information that NO further confirmations or invoices are expected5. Reason why the encumbrance needs to be removed

• Contact the Delegate Buyer with sub-award issues

• Contact Compliance Shared Services at compliance@jhu.edu with non-payroll cost transfer issues– Be sure the Journal Transfer has been either posted or deleted. In an e-mail request, please supply

the Journal Transfer ID number, and the Document number (normally starts with a 2 or 7).

• Contact Sponsored Projects Shared Services at sponsoredprojectsQC@jhu.edu with stale travel, fringe and F&A issues– For travel encumbrances provide the Trip number, the Personnel number with their name(s), and the

Internal Order Number– For stale fringe encumbrances provided the personnel number and the Internal Order Number

21

SPSS Hot Topics

Encumbrances Questions

Receipt Tax

22

Commercial Contract Receipt Tax

• On Commercial Contracts, such as Clinical Trials, SOM uses the Receipt Tax to recover F&A

• Typical awards recover F&A calculated off the Modified Total Direct Cost (MTDC)– Total Direct Cost (TDC) minus Exclusion equals MTDC– MTDC multiplied by the F&A Rate equals the F&A Expense– F&A Expense is calculated nightly

• Receipt Tax is calculated off the Billed Revenue and not MTDC – Billed Revenue is the combination of Cash Collected and Open Receivables on an award– Billed Revenue multiplied by the Receipt Tax Rate equals Receipt Tax – Receipt Tax is calculated on the day a month closes (4 or 5 days after the end of the calendar month)

A grant has $11,194 of MTDC with a F&A Rate of 34%, F&A Expense would be $3,806 and Total Costs would be $15,000

A Clinical Trial has $15,000 of Billed Revenue with a Receipt Tax of 25.37%, Receipt Tax would be $3,806 and TDC of $11,194

23

Commercial Contract Receipt Tax

• MTDC X (1 + F&A Rate) = Total Cost• $11,194 X (1.34) = $15,000

• Total Cost / (1 + F&A Rate) = MTDC• $15,000 / 1.34 = $11,194

• Take the F&A Rate divided by 1 plus the F&A Rate• If the F&A Rate is 34%: 0.34 / 1.34 = 25.37%

• Total Cost multiplied by Receipt Tax Rate equals Receipt Tax • $15,000 X 25.37% = $3,806

• Total Cost minus Receipt Tax equals TDC• $15,000 - $3,806 = $11,194

SO HOW DO I FIGURE OUT THE RECEIPT TAX RATE?????

24

Commercial Contract Receipt Tax

TDC F&A Rate Receipt Tax Rate F&A Function Campus

72.00% 41.86% Organized Research On

62.00% 38.27% Organized Research On

34.00% 25.37% Organized Research Off

26.00% 20.63% Organized Research Off

21.00% 17.35% Other Sp. Activity Off

MTDC F&A Rate Receipt Tax Rate F&A Function Campus

72.00% 38.73% Organized Research On

62.00% 38.27% Organized Research On

33.00% 22.42% Organized Research Off

26.00% 17.36% Organized Research Off

25

SPSS Hot Topics

Receipt Tax Questions

Useful Reports

26

Useful Reports / Transactions

• SAP– Display Grant Master: GMGrantD– Display Sponsored Program: GMProgram– Master Data Index for Grant: S_ALN_01000079

• BW– Rev/Exp Summary Report– GM Actuals– Summary of Gross Salary Combined– Award Information

27

SPSS Hot Topics

Questions