Emory University Research Administration Services (RAS) Standard Operating Procedure (SOP) TITLE: ions and Forecasting NUMBER: RAS SOP 2007 VERSION: 4.0 LAST REVISED: PREPARED BY: Office of Research Administration, Research Administration Services and Office of Business Practice Improvement APPROVED BY: RAS Central Operations ASSOCIATED DOCUMENTS: 1. ions & Forecasting Process Checklist 2. Sample ions & Reconciliation Template 3. Sample Summary Template / Tracker 4. Job Aid. Milestones I. PURPOSE Emory University recognizes that monitoring sponsored awards is necessary to maintain a compliant and efficient research administrative work flow. It is the responsibility of the Principal Investigators (PI) with assistance of the Post-Award Administrator to preserve the integrity of the PI s sponsored projects by ensuring that proper financial reports and forecasts are implemented and maintained with rigor and transparency. ions and forecasting are two terms intended to be used interchangeably throughout this SOP. ions and forecasts predict future balances at the end of an award based on historical spending trends and projected future spending trends. This SOP covers the projections and forecasting for individual projects, however a template showing the PI s complete sponsored funding portfolio will be the product of this work. II. INTRODUCTION The primary responsibility for the monitoring and oversight of an award rests with the PI. This responsibility includes not only the scientific and programmatic direction of the project, but also the financial and administrative management. PIs are supported by a Post-Award Administrator who also provides oversight and financial monitoring of the award and helps PIs ensure that expenditures do not exceed the amount of available funding. For sponsored research funds, the Post-Award Administrator is responsible for promoting compliance with a sponsor s policies, monitoring appropriate spending trends and projecting expenses so PI s are aware if expenditures are in alignment with budgeted amounts or if they are likely to result in a deficit (or surplus) at the end of the budget or project period. To support PIs and Departments/units and to promote compliance with institutional and sponsor policies, RAS staff will routinely monitor sponsored projects and work with PIs, Departments/units, Schools, and central research offices to address any potential issues. III. PROCEDURE (See Associated Document 1. ions & Forecasting Process Checklist as a guide for the process) Page 1 of 5
1. Every 60 days (at a minimum), each Post-Award Administrator will review the revenue, expenses, encumbrances, and budget status for their assigned projects and accounts (See Reconciling Expenditures SOP #2008 for more details).the Post Award Administrator will update progress towards the financial milestones set up by FGC on the FSR Milestone page. 2. Since PI s are ultimately responsible for the spending on their sponsored awards in an efficient and compliant manner it should be strongly suggested that the PI meet with the Post-Award Administrator at least on a quarterly basis to review the expenditures, balances and projected balances for their projects. On a consistent basis, and at a minimum every 60 days, the Post-Award Administrator should: a. Utilize a standard template/worksheet (see Associated Document 2. Sample ions & Reconciliations Template) and ensure the following information is provided to the PI for each project: i. Budget analysis ii. Average monthly expenditure rate (burn rate) iii. Expected payments to sub-awardees iv. Additional large-scale purchases which could potentially affect the period ending balance v. ed salary for the projection period (budget period or project period) vi. Encumbrances vii. Actual Expenses to most recent general ledger month end viii. ed balance at end of period (budget period or project period) b. Complete a document summarizing all of PI s projects and indicate any significant issues or next steps in a standardized summary template (See Associated Document 3.Sample Summary Template/Tracker). c. The overall summary template of PI s complete funding portfolio, along with projections for each project, should be emailed to the PI, and copied to the RAS Director and Department Administrator (DA) if applicable, on a consistent basis, at least every 60 days. In addition, reports will be copied to School/unit personnel as needed (see individual School/unit for guidance). i. In the email sent to the PI a request to meet should be included. The Post-Award Administrator should be available to review projections with the PI and make any changes identified by the PI, including rate of expenditure and other factors that could potentially affect the period ending balance. It is expected that the Post-Award Administrator would meet initially with PIs to familiarize them with the reconciliation and projections template and associated content. It is the PI s responsibility to provide guidance to the RAS unit on the rate of expenditure and expected future expenditures. ii. If no acknowledgment from PI has been received within ten business days of sending, the Post-Award Administrator should resend to the PI and include the request for meeting. iii. If there are outstanding issues and no meeting has occurred at least once in the past 90 days the Post-Award Administrator should raise the issue to the RAS Director. The Director should review the previous spreadsheets and make attempts to work with the PI to schedule a meeting to review the finances. If the PI does not avail themselves for a meeting an email should be sent by the RAS Director to the Department Chair and the DA or local School/unit official, if applicable. Once all these steps have been exhausted the Director of the local RAS unit should inform the Associate Vice-President of RAS via email of the situation and instruct the Post-Award Administrator to work with the DA or local School/unit official (or Page 2 of 5
appropriate designee) to clear expenses and make transfers to remove any deficits, as needed. IV. RESPONSIBILITY Principal Investigator (PI): Review the rate of expenditure on funds and confirm it is appropriate for the awarded budget. Provide guidance to RAS on award expenses and projections, as necessary. Post-Award Administrator: Prepare the projections for all awards assigned to their portfolio. Post Award fund management is meant to reinforce, not replace, the review and management responsibilities of the PI. Send reports on reconciliation and projections to PIs, RAS Director and DA (if applicable), and School/Unit as needed. Update the status of financial milestones on the FSR Milestones page. ********************************END OF SOP********************************* Page 3 of 5
PROJECTIONS AND FORECASTING PROCESS CHECKLIST This checklist is a supporting document for SOP #2007, ions and Forecasting. The steps outlined below are a list of the procedures. Please review the SOP prior to completing this checklist for further information and clarification on this process. 1. Determine ending period that projection will cover, either: a. of budget period b. of project period c. Other end date, as deemed necessary by Post-Award Administrator or PI 2. reconciliation for current financial information including budget, expenses, encumbrances and available balance 3. Estimate projected monthly personnel and non-personnel expenses based on current burn rate 4. Estimate other projected one-time or large-scale expenses that are anticipated prior to period end date 5. Calculate estimated balance at period end date 6. Submit summary template of PI s complete funding portfolio, along with projection worksheets and accompanying financial reports, to PI and Department Administrator (or other appropriate individual) by email a. Request meeting with PI, as needed 7. Follow up with PI until response received and outstanding issues are resolved Page 4 of 5
Sample Summary Template / Tracker GRANT REVIEW SUMMARY PI: Reports as of: Post-Award Administrator: AWARDS ENDING IN 30/60/90 DAYS: ed AWARDS WITH PROJECTED CARRYFORWARD: ed AWARDS WITH PROJECTED DEFICITS: ed AWARDS WITH KNOWN, TRUE DEFICITS: ed EFFORT CHANGES OR OTHER ADJUSTMENTS TO BE MADE: OTHER SIGNIFICANT ISSUES: Page 5 of 5