Tar Heel Certificate Program in Research Administration Level 1 Certification. Award Financial Management

Transcription

1 Tar Heel Certificate Program in Research Administration Level 1 Certification Award Financial Management

2 Agenda Review the regulations from an award management perspective Federal Circulars Federal Demonstration Partnership (FDP) Setting up and award Performing the work Award monitoring 2

3 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 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 3

4 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 Requirements 1. Financial & Program Management Financial Management Standards Payments to UNC-CH Cost Sharing and Matching Program Income Revisions of Budget & Program Plan 2. Procurement Standards 3. * Reports & Records 4. * Termination and Enforcement 5. * Property Standards * Covered in next Module 4

5 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 UNC Standards FRS FBM 090/091 Finan$eer RAMSeS Payments (to UNC-CH) Payments methods - electronic transfer of funds, advances, reimbursements UNC-CH Cash Management Letter of Credit / Line of Credit Scheduled Payments Cost Reimbursement 5

6 A-110 Post-Award Requirements Financial & Program Management Systems Program Income - revenues from activities that are financed in whole or part with Federal Funds Methods for Accounting for Program Income Additive Method Deductive Method Generally, the default method for research projects Income is added to EXPAND the project and further the project objectives 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 6

7 A-110 Post-Award Requirements Financial & Program Management Systems Revisions of Budget & Program Plan Awards 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 Department prepares correspondence for revision, forwards request to OSR who then signs for the institution and submits to the agency for approval. 7

8 A-110 Post-Award Requirements Financial & Program Management Systems 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 8

9 A-110 Post-Award Requirements Financial & Program Management Systems 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 9

10 Federal Demonstration Partnership (FDP) 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 10

11 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 11

12 FDP Agency Specific Requirements NSF DOE NIH Complete list can be found at: 12

13 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) 13

14 Meet OSR Award Management Pre-Audit Data Management Award Management Team Kelly Musty, Director Responsible for the administration of contracts, grants and cooperative agreements once an award has been accepted by the funding agency and university. 14

15 Responsible include: Data Management 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 15

16 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 16

17 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. 17

18 Award Management Groups Vickie Elmore, Manager Award Analysts Ronnie Edwards Debbie Sparrow Areas of Responsibility Deans Office SOM Departments SOM -Centers/ Programs/Curricula Frances Hess, Manager Award Analysts Steve McKee Christine Crider Areas of Responsibility SOM Departments SOM Centers/ Programs/Curricula 18

19 Award Management Groups 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 19

20 Award Management Groups Lauren Miller, Manager Award Analyst Amy Grissom Areas of Responsibility Nursing Pharmacy Public Health School of Business School of Social Work Allison Maultsby, Manager Award Analyst Lonnie Hawley Areas of Responsibility Dentistry VCRED Centers 20

21 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 21

22 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 22

23 Prepare Proposal & Submit Proposal Identify Funding Negotiate Award Close-out Award Life Cycle of an Award Set Up Award Generate Payment Requests Perform Work Monitor Project & Manage Funds 23

24 Set Up Award What we will cover: Pre-Award spending Setting up the REAL award Departmental award set up 24

25 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 requests 1. Spending prior to receipt of award = Letter of Guarantee (LOG) 2. Spending prior to award date = Institutional Prior Approval System (IPAS) 25

26 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 26

27 Prepare LOG request RAMSeS Financial Guarantee in RAMSeS 27

28 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 28

29 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 29

30 Prepare request for spending before the award date using the IPAS Form IPAS Form 30

31 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 31

32 Setting Up the REAL Award What we will cover: OSR Data Management Team sets up account Department reviews Funding Authority and account information Department sets up award monitoring systems 32

33 OSR Award Management Reviews award document terms and conditions against proposal and award 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 Award Document Account Information Fund Authority Award Department Receives award documents and account information from OSR Check for Discrepancies Award budget/frs budget OSR Data Management Assigns unique account identifier Establishes account in FRS Set up account in RAMSeS

34 Object Codes: 1xxx - Personnel 2xxx - Supplies 3xxx - Services 6xxx - Aids & Grants FRS Account Number Structure Budget Codes: 1 Academic Affairs 2 Health Affairs 0 Non-State Funds Department Number X - XXXXX - XXXX - X - XXX - XXXX Unique Account Number Ledger Numbers: 0 General Ledger 1 Unrestricted State Funds Revenues 2 Unrestricted State Fund Expenditures 3 Receipt Supported Activities 4 Contractual Agreements 5 Contract & Grant Funds 6 Restricted & Unrestricted Funds 7 Agency Funds 8 Plant Funds Purpose Codes: 101 Regular Term Instr Summer Term Instr Organized Research 110 Sponsored Research Community Serv General Aca. Support Institutional Support 230 Student Fin. Aid 401 Other Research

35 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 36

36 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) 37

37 Subcontract Module 38

38 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 39

39 Set Up and Monitor: Services Service Agreements non-subcontracted services Specialized Facilities / Recharge Centers 40

40 Perform the Work Spend the Money! 41

41 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 42

42 Just to name a few... Transaction Forms Travel forms Application for Purchase of Computers Institutional Prior Approval System (IPAS) Payment to Study Subjects Account Adjustment (FRED) Budget Revision Forms 43

43 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 44

44 Application for Purchase of Computer 45

45 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 46

46 IPAS Form 47

47 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 48

48 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 52

49 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 53

50 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. 54

51 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. 55

52 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 57

53 Budget Revision Form 58

54 Monitoring the Award 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 59

55 Award Documents Working Budget Award Synopsis Subaward Information Personnel Information Correspondence 60

56 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 61

57 Award Project Administration 62

58 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 63

59 Award Administration

60 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 65

61 Tools for Tracking Financials (and Training links) Financial Records System (FRS) FRS Green Screens Finance Central * e~print FBM 090/091 RAMSeS Finan$eer Financial Central * FRED Finance Central * P-Card HRIS PARS research.unc.edu/osr/training/index.php * URL for Finance Central https: //s4.its.unc.edu/frs/ 66

62 Financial Reporting System (FRS) Accessible online Monitors account balances on a daily basis Budget Account balances 67

63 FRS OCG Screen 68

64 FRS Screen 09A 69

65 FRS Screen 09B 70

66 FRS Screen 09C 71

67 FRS Screen 09D 72

68 e~print of FBM Reports 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 73

69 Monthly FBM

70 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) 75

71 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 76

72 Why? Reconcile Your Ledgers 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 77

73 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 78

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