Award Financial Management

Tar Heel Certificate Program in Tar Heel Certificate Program in Research AdministrationResearch Administration

Level 1 CertificationLevel 1 Certification

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Agenda

• Review the regulations from an award management perspective– Federal Circulars– Federal Demonstration Partnership (FDP)

• Setting up and award• Performing the work• Award monitoring

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Regulations from a Post Award Perspective

UNC-CH must comply with:Federal, State and Sponsor mandates for programmatic, regulatory, fiscal and property stewardship to protect institutional eligibility for external funding

Federal:– OMB A-110 - general administrative and management

guidelines– FDP – Federal Demonstration Partnership– OMB A-21 - spending guidelines for both direct

research costs and for facilities and administration costs

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A-110 Administrative / Management Guidelines

• Sets standards for institutions for consistency and uniformity• Applies to all Federal agencies

– Grants and Cooperative Agreements– Does NOT apply to Contracts

• Post Award Requirements1. Financial & Program Management

• Financial Management Standards• Payments to UNC-CH• Cost Sharing and Matching• Program Income• Revisions of Budget & Program Plan

2. Procurement Standards3. * Reports & Records4. * Termination and Enforcement5. * Property Standards * Covered in next Module

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A-110 Post-Award Requirements Financial & Program Management Systems

Financial Management Standards• Current, accurate, complete financial

records for each project• Comparison of expenditures to budget• Financial controls and accountability

Payments (to UNC-CH)• Payments methods - electronic transfer of funds, advances,

reimbursements

UNC Standards• FRS• FBM 090/091• Finan$eer• RAMSeS

UNC-CH Cash Management• Letter of Credit / Line of Credit• Scheduled Payments• Cost Reimbursement

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Program Income - revenues from activities that are financed in whole or part with Federal Funds

A-110 Post-Award Requirements Financial & Program Management Systems

Methods for Accounting for Program IncomeAdditive Method

• Generally, the default method for research projects

• Income is added to EXPAND the project and further the project objectives

Deductive Method• Generally the default method for

non-research projects• Income is deducted from the total

project costs at the end of the project

Sponsor Award $25,000

Program Income + $ 5,000

Total Project $30,000

Sponsor Award $25,000

Program Income - $ 5,000

Total Cost to Sponsor $20,000

Set up in a separate account in FRS system

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Revisions of Budget & Program PlanAwards are made based on both technical and financial plans submitted in proposal; if there are changes, UNC-CH must obtain agency approval. Changes that require prior approval include:

• Scope of work or objective• Key personnel• PI absence >3 months or reduction in time by 25%• Need for additional funds• Conversion of stipend funds and/or tuition funds to another

category• Transfer or subcontracting of work not presented in proposal

and funded in award

A-110 Post-Award Requirements Financial & Program Management Systems

Department prepares correspondence for revision, forwards request to OSR who then signs for the institution and submits to the agency for approval.

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Other Program Changes• Agencies may waive ANY requirements, except

– change in scope, or – need for additional funds

• Agencies may also authorize:– Pre-award costs up to 90 days– One-time extension of up to 12 months– Carry funds over to subsequent funding periods

• Agencies may restrict transfers of funds between direct cost categories

Carefully read the terms and conditions for each award which will indicate any waivers, or authorization for pre-award spending or transfer of funds

A-110 Post-Award Requirements Financial & Program Management Systems

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Other Financial and Program Management Requirements• Allowable Costs - for each type of recipient, a set of Federal cost

principles apply. OMB Circular A-21 applies to institutions of higher education

• Period of Availability of Funds – recipients may charge to the grant only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by the Federal awarding agency

A-110 Post-Award Requirements Financial & Program Management Systems

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Purpose: To streamline the administrative requirements of research administration through the adoption of a standard set of terms and conditions applicable to all participating federal agencies.

Award Terms and Conditions

Federal Demonstration Partnership (FDP)

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FDP Participating Agencies

• National Science Foundation• National Institutes of Health• National Aeronautics & Space Administration• Environmental Protection Agency• Office of Naval Research• Department of Energy• Department of Agriculture• Air Force Office of Scientific Research• Army Research Office• Army Medical Research & Material Command

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FDP Agency Specific Requirements

• NSF http://www.nsf.gov/pubs/fdp/nsf02.pdf• DOE http://www.nsf.gov/pubs/fdp/doe02.pdf• NIH http://www.nsf.gov/pubs/fdp/nih02.pdf• Complete list can be found at:

http://www.nsf.gov/home/grants/grants_fdp.htm

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FDP Delegated Authority

Through FDP, UNC-CH has been delegated authority by the participating federal agencies to approve certain types of transactions such as

– Pre-award cost incurrence– Equipment purchases not itemized in budget– Foreign travel– No-cost time extension up to 12 months

UNC-CH uses the Institutional Prior Approval System for these types of transactions (more on this later)

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Meet OSR

Award Management TeamKelly Musty, Director

Responsible for the administration of contracts, grants and cooperative agreements once an award has been accepted by the funding agency and university.

Award Management

Data Management

Pre-Audit

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Data Management

• Responsible include:– Set up awards in FRS and RAMSeS– Post journal entries for closing accounts– Post paper budget revisions– Balance RAMSeS and FRS monthly

• Michelle Shoffner– Ginger Smith– Mary Lynch– Kathy Coombs

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Pre-Audit

Responsible for monitoring transactions for award spending:• Budget revisions• IPAS• Requests for computers• Travel • Cash advances• Petty cash• Account Adjustment (AJ1)• Billing to Recharge Centers• Supply object codes that are

overdrawn

Team Members:• Linda Binder• Linda Dunn• Shari Elliott• Karen Mansfield• Tawanda Murphy• Morgan Alexander• Holly Faillace

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Award Management

Award managers are organized on a departmental or school basis to serve as a single contact person with responsibility for that department’s awards and accounts.

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Vickie Elmore, Manager• Award Analysts

– Ronnie Edwards– Debbie Sparrow

Areas of Responsibility• Deans Office• SOM Departments• SOM -Centers/

Programs/Curricula

Award Management Groups

Frances Hess, Manager• Award Analysts

– Steve McKee– Christine Crider

Areas of Responsibility• SOM Departments• SOM – Centers/

Programs/Curricula

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Pete Strongoli, Manager• Award Analysts

– Angela Stuart– Vacant

Areas of Responsibility• College of Arts & Sciences • Facilities Services • School of Education • School of Government • School of Information and

Library Science (SILS) • School of Law • Student Health Services • WUNC Radio

Award Management Groups

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Lauren Miller, Manager• Award Analyst

– Amy GrissomAreas of Responsibility• Nursing• Pharmacy• Public Health• School of Business• School of Social Work

Award Management Groups

Allison Maultsby, Manager• Award Analyst

– Lonnie HawleyAreas of Responsibility • Dentistry • VCRED Centers

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Award Management Functions

• Award notification• Award establishment and account set up for all awards• Project Financial Guarantee and the subsequent agreement• Revised requests of a previously approved and submitted

proposal (e.g. revised personnel, cost share and/or budget)• Negotiating and awarding an incoming subcontract preceded

by an approved eIPF• Outgoing subcontracts• Award supplement• Task orders to Master Agreement (except NC State Agency

contracts (see Proposal Management)• Carryover request• Continuation request to release dollars previously committed

by sponsor/agency for an existing contract or grant

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Award Management Functions

• Amendment to existing award that does not involve new dollars (e.g. no cost extension or request for change in scope of work)

• Budget question (i.e. computer purchase) or revision• Contract Officer Approval (COA)• Pre-Audit approval of transactions• Institutional Prior Approval (IPAS)• Account Adjustment Request (AJ1)• Application for Cash Advance

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Negotiate Award

Close-out Award

Generate Payment Requests

Identify Funding

Monitor Project & Manage

Funds

Perform Work

Life Cycle Life Cycle of an Awardof an Award

Set Up Award

Prepare Proposal & Submit Proposal

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What we will cover:– Pre-Award spending– Setting up the REAL award– Departmental award set up

Set Up Award

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Pre-Award Spending

• Spending before the start date of an award• Reasons for incurring pre-award costs

– Hire necessary project personnel– Order research equipment with long lead times– Perform other actions required to initiate project

• Two different types of requests1. Spending prior to receipt of award = Letter of

Guarantee (LOG) 2. Spending prior to award date = Institutional Prior

Approval System (IPAS)

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Letter of Guarantee (LOG) Account (prior to receipt of an award)

• Sponsor is processing award • Costs are allowable (OMB Circulars A-21, A-110, PHS Grants

Policy Statement, sponsor specific regulations)• Sponsor provides written approval for costs (if required)• Costs are guaranteed by administering award department• Costs are valid for 90 days from the proposal start date

• LOG may be extended with approval of next higher level of administration

• Non-personnel transactions will not be approved after expiration of guarantee period

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RAMSeS – Financial GuaranteePrepare LOG request

in RAMSeS

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Letter of Guarantee Account

• Once LOG is approved at department level, OSR assigns an account number for spending (no budget is established)

• Department incurs expenses• OSR Pre-Audit reviews each expense before it

is paid

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IPAS Form (spending prior to award date)

• Applies to awards from agencies participating in FDP (notice of award will indicate)

• Spending must meet the following criteria:– Necessary to achieve project objectives supported by the

grant– Consistent with grant terms and conditions– Consistent with sponsor and grantee policies– Represent effective utilization of resources– Does not constitute a change in scope

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IPAS FormPrepare request for spending before the award date using the IPAS Form

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Departmental Responsibilities for Pre-Award Spending

• Costs must be necessary to the project• All expenditures must be charged directly to

account established for the specific grant (not charged on another University or Foundation account)

• PI, department, and/or college/school assumes responsibility for costs incurred if award is not funded

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What we will cover:• OSR Data Management Team sets up account• Department reviews Funding Authority and account

information• Department sets up award monitoring systems

Setting Up the REAL Award

Award DepartmentReceives award documents and account information from OSR

OSR Award ManagementReviews award document terms and conditions against proposal and award budget

Award Document

OSR Data Management• Assigns unique account identifier • Establishes account in FRS• Set up account in RAMSeS

Acco

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• Check for Discrepancies• Award budget/FRS budget• Budget Categories

• Budget Restrictions: revision/re-budgeting

• Expanded Authority• Equipment ownership• F&A Rate• IRB/IACUC approvals• Conflict of Interest• Sub contracts• Roll-up accounts• Cost share

FRS Account Number Structure

X X -- XXXXX XXXXX -- XXXX XXXX -- X X -- XXX XXX -- XXXXXXXX

Ledger Numbers:0 – General Ledger1 – Unrestricted State Funds Revenues2 – Unrestricted State Fund Expenditures3 – Receipt Supported Activities4 – Contractual Agreements5 – Contract & Grant Funds6 – Restricted & Unrestricted Funds7 – Agency Funds8 – Plant Funds

Unique Account Number

Object Codes:1xxx - Personnel2xxx - Supplies3xxx - Services6xxx - Aids & Grants

Budget Codes:1 – Academic Affairs2 – Health Affairs0 – Non-State Funds

Purpose Codes:101 – Regular Term Instr.102 - Summer Term Instr.103 - Organized Research110 – Sponsored Research142 - Community Serv.152 - General Aca. Support170 - Institutional Support230 – Student Fin. Aid401 – Other Research

Department Number

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Departmental Award Set Up

• Department reviews award documents – Identify restrictions – Reporting requirements– Purchasing/spending authorization– FRS information

• Set up personnel – Prepare personnel forms as soon as an account number is assigned– Rate of pay must be the same as proposal

• Tuition for Graduate Students – Usually automatic and prorated for accounts that provide salary or stipend

support• Establish deadlines for technical reports• Set up tracking systems for direct cost expenditures

– Sub contracts – Consultants – Services

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Set Up and Monitor: Sub Contracts

• PI/Project Manager/Department Manager need to monitor sub contractor– Establish performance measures– Require timely invoices (according to contract terms)– Subcontractor costs must meet A-21 criteria

• When invoices received from sub contractor– PI must approve all invoices by signing

• Remind sub contractor when final invoice is due• RAMSeS Subcontract module (coming soon)

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Subcontract Module

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Set Up and Monitor: Consultants

• Follow agency guidelines when securing a consultant - if prior approval required, get it well in advance of consultant providing the service

• Identify daily rate as well as other expenses for which the project will be responsible

• Complete financial forms – Check request and Independent Contractor Forms– have invoice from consultant with time periods indicating

daily rate and what exactly consultant provided

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Set Up and Monitor: Services

• Service Agreements – non-subcontracted services

• Specialized Facilities / Recharge Centers

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Perform the Work

Spend the Money!

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“Hold Ups” to Spending the Money

• Unallowable cost• Incorrect backup• No justification • Poor justification• Over drawn in “Budget Balance Available”• Charges not within grant period dates

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Transaction Forms

• Just to name a few...– Travel forms– Application for Purchase of Computers– Institutional Prior Approval System (IPAS)– Payment to Study Subjects– Account Adjustment (FRED)– Budget Revision Forms

http://research.unc.edu/services/forms.php#post

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Travel

• On-line Travel Forms – Purpose of trip – Attend meeting– Use current rates

• Mileage• Per diem

• Federal (or indirect Federal) agreements require U.S. air carrier “Fly American”

• Foreign Travel requires IPAS form – Unique opportunity to consult with international colleagues– Establish themselves internationally

• Department keep original forms when submitting electronically

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Application for Purchase of Computer

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IPAS Form

• Used when working with an FDP participating agency to request– Pre-award cost incurrence– Equipment purchases not itemized in budget– Foreign travel– No-cost time extension up to 12 months

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IPAS Form

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Payments to Study Subjects / Participants

• Three methods for reimbursement– Cash Advance– Imprest Bank Account– Gift Card– Direct Payment

• Documentation is essential– Participant confidentiality– IRS implications

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Account Adjustment Request (AJ1)

• The transfer of an expenditure from one account to another– Allowable – costs that can be specifically

identified with a particular project or activity– Allocable – cost can be quantified

• Must be done within 90 days• Prepare using On-line JE System• Provide justification

– How the charge benefits the grant– Why the error occurred

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Adjustments Made After 90 days

• How does this charge or action benefit this grant?• Transfer must be supported by documentation that a

gives full explanation of how the error occurred include (include all):– state “transfer to correct project”– state how the item being transferred benefits the account

being charged– state how error occurred – identify steps to prevent future errors

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Case Study: Cost Transfer of Copy Charges

1. Why was this expense originally charged to the account from which it is now being transferred?

Answer: “Copy charges are typically charged to a department account and then allocated once the bill is received and reconciled by the department administrator.”

2. Why should this charge be transferred to the proposed receiving federal account?

Answer: “These copy charges represent copies used in support of the Sea Turtle Research Grant.”

3. Why is the cost transfer being requested more than 90 days following the original transaction?

Answer: “The department administrator was out on maternity leave for four months and was unable to do the necessary reconciliation within the 90- day period. Upon her return she performed the necessary review and is now ready to make the appropriate allocations.”

4. What action is needed to eliminate future need for cost transfer of this type? Is this action being taken?

Answer: “We will have someone assume responsibilities of staff members who are out for extended periods in the future.”

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Examples of Incorrect Justification

• To move charge to correct account.• The attached charges were incorrectly charged to a

wrong account. This entry is needed to post them to the correct account.

• To cover over draft of account ending.• To pay criminal background checks.• Reimburse default accounts for P-Card charges.• Charge was not allowed by agency AJ to move

expenses off account.

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Budget Revision Forms

• Budget Restrictions indication in FRS on Screen 9A or OCG screen– No Budget Restrictions

• indicated with 001 through 005• prepare in FRS

– Budget Restrictions• Indicated with 000• prepare paper revision• Agency approval may be required

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Budget Revision Form

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Keep an Organized Filing System • Proposal Files (in RAMSeS)

– Copy of the final proposal submitted– Documentation

• Post-Award Files– Award documentation– Transactional Documents– Equipment Log (Asset Management)– Financial Tracking Tools

Monitoring the Award

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Award Documents

• Working Budget• Award Synopsis• Subaward Information• Personnel Information• Correspondence

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RAMSeS Award Dashboard

• Your unit Role Manager must grant Award Data Access for individuals to have access to Award Dashboard

• Divided into two sections– Award Project Administration– Award Administration

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Award Project Administration

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RAMSeS: Project Information

• Award Project Administration General tab- includes information specific to the project (e.g. Sponsor, project dates)

• Awards- lists all awards associated with the project with a hyperlink to allow users to drill into a specific award for further detail (e.g. view disbursements).

• Accounts- lists all accounts associated with the project• Proposal- lists all proposals associated with the project• Subcontracts – indicates account #, execution date, $

distributed• Notes- view notes to a project • Attachments – award notice; executed subcontract; award

amendment

Award Administration

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RAMSeS: Award Information

• Award Administration General tab- includes information specific to that award (e.g. budget dates)

• People- lists the individuals on the Research Team tab of the IPF

• Distributions- displays which account(s) the award was allocated to

• Proposals- lists proposal(s) associated with the award and a hyperlink to move to the proposal administration side of RAMSeS

• View – Notes and attachments

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Tools for Tracking Financials (and Training links)

• Financial Records System (FRS)– FRS Green Screens Finance Central *

• e~Print FBM 090/091 http://www.unc.edu/finance/eprint/• RAMSeS http://ramses.unc.edu• Finan$eer Financial Central *• FRED Finance Central *• P-Card http://www.unc.edu/mds/• HRIS http://hr.unc.edu/departments/hris/• PARS research.unc.edu/osr/training/index.php

* URL for Finance Central https: //s4.its.unc.edu/frs/

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Financial Reporting System (FRS)

• Accessible online• Monitors account balances on a daily basis• Budget • Account balances

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FRS OCG Screen

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FRS Screen 09A

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FRS Screen 09B

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FRS Screen 09C

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FRS Screen 09D

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• Monthly FBM 090/091– Access through Finance Central– 090 summary– 091 detail for the month– Reconcile with internal records, identify any

discrepancies and correct in a timely manner

e~print of FBM Reports

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Monthly FBM-090

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Financial Tracking Systems

• Finan$eer– Access account and financial activity on a fiscal year basis – Search for particular purchase order, person, transaction

name, number, etc.– Prepare reports in excel

• Flexible Routing of Electronic Documents (FRED)– Create and track purchase requisitions and travel– Correct journal entries– Bill journal entries– Online Check Request System

• Purchasing Card (P-Card)

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Financial Tracking Systems

• Shadow Systems– IT Works– MIS– Excel

• Human Resources Information System (HRIS)– Manage all personnel forms and information– Create funding forms in advance of the pay period effective

date• Personnel Activity Reporting System (PARS)

– Report created for each person receiving support from sponsored research using Personnel Activity Report (PAR)

– Reported quarterly for EPA and 13 bi-weekly for SPA– Reports certified by individuals

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• Why?– Ensure all charges are appropriate to the project– Ensure documentation is received for each charge– Correct errors in a timely manner– Update projections and reports– Anticipate prior approval needs

Reconcile Your Ledgers

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Keep Your PI informed

• Provide current reports– Individual account status– Summary of all accounts– List of current employees

• Meet on a regular basis– Discuss financial status– Discuss employment plans– Discuss future planned projects– Answer questions

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Module 4 Competency Test

• Go to the following web site to complete the Competency Test for Module 4

http://research.unc.edu/osr/training/THCP/THCPONLINE.php