Post Award Training

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Post Award Training
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Outline

• 1. Introduction Goals of Workshop
• 2. Post Award Contact Information
• 3. What is Post Award Administration?
• 4. FAS - Monthly Printouts
• 5. Expenses - Routing, Types and Allowability
• 6. House Bill - 640
• 7. Types of Contracts
• 8. Billing/Payments
• 9. Effort Reporting
• 10. Cost Sharing
• 11. Audits
• 12. Facilities Administrative costs
• 13. Questions and Answers

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Post Award Contacts

• Glen Jones
• Associate Director - X4461
• Marianne Shreck
• Sr. Grants Management Specialist - X4459
• Sheri Coyle
• Grants Contracts Specialist - X3853
• Bonnie Hebert
• Grants and Contracts Clerk - X2529

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What is Post Award Administration

• RSP performs a variety of functions known as
  "Post Award Administration." These functions
  include
• Create a unique account (FAS) number for each
  project.
• Prepare budget for entry into FAS.
• Assist PI in the orderly administration of their
  project.
• Review and approve specific post award
  transactions.
• RSP does not initiate charges or expenditure
  forms for any projects.

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What is Post Award Administration (Cont.)

• Act as liaison between PI and sponsor regarding
  modifications of funded projects. (i.e. no-cost
  extensions)
• Assist in obtaining sponsor prior approvals.
• Notify PI of due dates. (i.e. technical reports)
• Prepare and submit fiscal reports.
• Liaison for University Policy and Financial
  Issues.
• Prepare invoices and other billings.
• Record and reconcile Accounts Receivable for
  Grants.

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FAS Subsidiary Ledger (S/L) Logic

• Subsidiary Ledger 6 - Restricted Funds - 6XXXXX
• Externally Funded Activities - (Grants
  Contracts)
• Formal Budgets are Established Through RSP
• Only Expenses are recorded in S/L
• Income is not recorded in these accounts

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Expense Object Codes

• Personnel (1100 - 16XX)
• Contracted Services (1700 - 17XX)
• Benefits (2000 - 2XXX)
• Supplies (3000 -39XX)
• Travel (4000 - 49XX)
• Communications (5000 - 59XX)
• Maintenance/Repair (6000 - 69XX)
• Miscellaneous (7000 - 79XX) - Including
  Scholarships Subcontracts
• Capital Equipment (9450)
• Facilities Administrative (FA) Costs (9900)

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FAS Check List

• Review Budget Balance Available (Does it agree
  with your records).
• Compare Labor Distribution with FAS Statement
  (Names and amounts agree with persons working on
  project).
• Check to see that all Transactions on FAS
  printout are valid for this account (compare
  DPOs, credit card statements etc. to current
  month expenses in FAS).
• Check to see that all Encumbrance Transactions
  are valid (item has not been already expensed or
  is not covering a time period beyond the end
  date).
• Use FDS to Analyze Account.

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FAS General Ledger (G/L) Logic

• General Ledger 6 - 06XXXX
• This ledger includes assets, liabilities and fund
  balances by account
• Accounts Receivable - Billed but not yet
  collected (1300)
• Fund Balance - Accumulated Revenue less Expense
  (3600)
• Revenue posted in G/L for all ledger 6 Accounts
  (4XXX)

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Revenue Account Controls

• 2. Ledger 6 Accounts (G/L) - Revenue Account
  Controls
• 4000 - State Appropriations
• 4200 - Federal Grants Contracts
• 4210 - State Grants Contracts
• 4220 - Local Grants Contracts
• 4230 - Private Grants Contracts
• 4300 - Endowment Income

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Routing of Expenditures on Sponsored Programs

• Expenditures under 1,000 should be forwarded
  directly to appropriate department after
  departmental signatures have been received.
• Expenditures 1,000 and over should be routed
  through Research and Sponsored Programs for
  signature after departmental signatures have been
  received. RSP will then forward to appropriate
  department.
• Remember, any transactions that do not go through
  RSP require the signatures of two separate
  persons.

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Procard Transactions

• All approvals are obtained at the departmental
  level
• Support for transactions maintained by department
• Transaction support must be kept for 6 years
• Any questions regarding your card/statement can
  be directed to Jacqueline Robinson in the
  Controllers Office.
• Procards must be renewed annually prior to the
  anniversary date of the grant or contract.

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Aspects of Allowability

• Allocable - benefits the grant/contract
• Reasonable - reflects action of a prudent person
• Conformance -with limitations exclusions
  contained in award, Wright Way Policy, OMB
  circulars A21, A110, A133.
• Consistency - must be consistent in assigning
  like costs to direct or FA costs.
• Available - funds available for transaction
• Timely - occurred within the active dates of
  project

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Expense Transfers

• Correction of Errors
• Must be made promptly (within 90 days).
• Must be supported by documentation which contains
  an explanation of how error occurred.
• Closely Related Work
• Reallocations involving closely related work
  should be made within 120 days of original charge.

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Examples of Unallowable Expenditures on Federal
Grants.

• Travel on a foreign carrier is unallowable. Must
  be made on a US flag carrier.
• Clerical and Administrative Salaries are not
  allowed as direct charges unless explicitly
  budgeted and approved by the sponsor.
• Overload salary for faculty and staff is not
  allowed unless specifically approved by sponsor.
• Entertainment expenses are not allowed.

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Unallowable Expenses Federal (Cont.)

• Office supplies, memberships, subscriptions,
  postage and local telephone costs are not allowed
  as direct charges to federal awards unless there
  is a justification and the items were explicitly
  budgeted and approved by the sponsor.
• Cost overruns from other projects.
• NOTE Please put purpose of the purchase and how
  it relates to project on purchase order. This
  can prevent future inquiries by auditor at a
  later date.

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And remember...

• All University policies apply to grants and
  contracts and affect allowability.
• Cannot transfer budget - Only documented
  expenses.
• Many sponsors have specific restrictions on
  types of allowable expenditures
• Feel free to call RSP with any questions
  regarding sponsor guidelines, allowability, etc.

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House Bill 640 Flowchart

• Turn in plan to Provosts office
• Provost authorizes plan and sends original to RSP
• FAS account created (6647xx)
• New account memo, copy of account create and copy
  of authorized plan sent to responsible person and
  business manager.

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HB 640 Flowchart cont.

• Purchase items through normal channels except RSP
  must approve all 1200 forms and DPOs. Include
  HB equipment item number on form.
• 1100 forms must include equip. item no. and
  original DPO. RSP must sign for approval.
• Sheri Coyle prepares invoice to state accounting
  office. Included on invoice are description of
  item, HB item no., DPO, copy of vendor invoice.

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Types of Contracts

• 1. Cost Reimbursable
• Usually billed according to actual expenses as
  reported in FAS.
• Invoices prepared based on frequency specified in
  contract/grant.
• 2. Fixed Price
• Usually billed as lump sum total of contract or
  P.O.
• Billed at the end of the project or at intervals
  specified in contract

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Types of Contracts - Flow Chart

• Cost Reimbursement Fixed Price
• Under Expense Over Expense Under Expense
• Return s or Memo Memo
• Suspend Billing Move Expense Move Budget
• Reduce Budget to WSU Account to WSU Acct

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Billing Frequency

• The agreement should have payment provisions
  included in the terms of the agreement.
• Monthly
• Quarterly
• End of Project
• Scheduled
• Letter of Credit
• Completion of Task

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Billing Cycle

• 1. All invoices for sponsored agreements are
  prepared and mailed to the sponsor by RSP
• 2. Bursar receives credits payment to account
• 3. Reminder notice is sent out or a phone call
  is made to the sponsor if invoice remains unpaid
  after two months
• 4. Follow Write-off Policy on uncollectible
  receivables (Wright Way Policy Number 5306)

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Handling of Payments

• Initial payments on new grants and contracts
  should be sent to RSP.
• Payments on Invoices or Vouchers should be sent
  to the Bursar.
• Non-Invoiced Scheduled Sponsor Payments should be
  sent to RSP.
• Checks should never be sent directly to P.I.
• P.I. or department should not deposit any type
  of check against a ledger six account. Send to
  RSP.

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Subcontracts/Subgrants

• If the budget includes subcontracts or subgrants
• PI should contact Glen Jones in RSP to initiate
  subcontract and obtain institutional signatures.
• PI to review all invoices on subcontracts
  before payment. (verifies work is being done
  according to specifications, timeline, and within
  budget)
• Final invoice should be marked as such to release
  any leftover encumbrances.

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EFFORT REPORTING

• OMB Circular A-21, "Cost Principles for
  Educational Institutions" specifies that faculty
  and staff must certify their time spent on
  sponsored projects, instruction, and departmental
  administration.
• WSUs Effort Reports are generated through our
  payroll system. Blank forms for all faculty and
  academic staff will be distributed with the FAS
  reports approximately one month after the end of
  an academic quarter.

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EFFORT REPORTING (Cont.)

• Employees should review the information at the
  top and along the left-hand side of the form
  before completing it.
• The Effort Report has four columns Instruction
  and Departmental Research, Departmental
  Administration, Cost Sharing, and Sponsored
  Projects.
• Cost Share memo and schedule is sent out
  quarterly to each Fiscal Officer - Required Cost
  Share Only

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EFFORT REPORTING (Cont.)

• An employee or his/her supervisor must sign each
  form. If an employee has any effort reported on
  columns 3 4, the employee must sign.
• The supervisor should sign if an employee is no
  longer employed or is absent from campus - please
  specify on the face of the A-21 effort report.
• " Per" signatures and signature stamps are not
  acceptable.
• No corrections are to be made on the form.

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EFFORT REPORTING (Cont.)

• The instructions on how to complete Effort
  Reports are available
• On the RSP Home Page
• On the reverse side of the Effort Report form
• By calling your Business Manager or RSP.
• Blank Effort Reports are also available on the
  RSP Home Page.

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Cost sharing, Matching and In-kind

• Cost sharing is provided by the University in
  support of an externally-sponsored project.
• This funding represents the Universitys
  commitment to help complete the project.
• In-Kind is provided by another company/Institution
  
• Matching is the combination of Cost share
  In-kind contributions
• Not all grants require cost sharing - Determined
  by Sponsor
• If Cost Sharing is put in voluntarily in the
  proposal, you should be prepared to meet it.

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Types of Cost sharing

• Salaries
• Supplies and materials
• Fee waivers/tuition
• Equipment/Equipment time (e.g. NMR time)
• FA (indirect cost)

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Examples of In-kind

• Donations of the following
• Money
• Services
• Equipment
• Equipment time

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How to Document Cost sharing

• RSP will determine if cost sharing is considered
  mandatory by the sponsor. If it is determined
  that salaries must be cost shared, refer to the
  salary letter which will provide the annual
  amounts or percentages required.
• All cost sharing including salaries will be noted
  on the budget summary.
• Report cost sharing of salaries on Effort
  Reports.
• Faculty, Unclassified and Grad Assistant
• Set up a cost share account to show other cost
  shared expenses.

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Documenting In-Kind

• Need a memo or letter from contributor certifying
  the value of contribution/donation
• All contributions of equipment, supplies, money
  etc.. should be routed through the WSU Foundation

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Cost Sharing, Matching In-Kind

• Accurate reporting of cost sharing , in-kind and
  matching is essential! The dollars cost shared
  by WSU are used in the Federal FA study. In
  addition, federal auditors review whether or not
  we are meeting our cost share/matching
  commitments. Sponsors may withhold payment,
  request a refund or reduce future awards if cost
  sharing/ matching requirements are not met.

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Audits

• Annual audit of Financial Report - Deloitte
  Touche
• A133 audit of Federal Grants Contracts -
  Deloitte Touche
• Audit of FA Rates - Department of Health and
  Human Services (DHHS)
• Sponsor Specific Audits - i.e. American Heart
  Association

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Facilities Administrative (FA)

• FA costs are costs that are incurred in support
  of a project but cannot be directly assigned to a
  project. An example is electricity.
• These are the FA Rates for fiscal years 2000
  through 2003
• Research
• On-Campus 43
• Off-Campus 25
• Other Sponsored Activities
• On-Campus 28
• Off-Campus 20

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FA Costs (Cont.)

• Rates are applied to Modified Total Direct Costs
  (MTDC). Equipment, rent, tuition costs, and
  subcontracts over 25,000 are exempt from FA
  costs as directed by A-21.
• Some sponsors and/or programs have a specific FA
  rate. For example, Training Grants awarded by
  the US Department of Education only permit an FA
  rate of 8.

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Expense Object Codes Eliminated from MTDC

• 6530 - Rental of external facilities
• 75XX - Rental of external equipment
• 7061- Subcontracts greater than 25,000
• 7310 - Scholarships Fellowships
• 73XX - Fee Waivers
• 9450 - Capital Equipment/Furniture
• 9900 - FA costs

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Example of MTDC Calculation

• Total Expense Fiscal Year-to-Date 120,000
• Less Rental of External Facilities
  (1,500)
• Less Subcontract amount gt 25,000
  (1,200)
• Less Scholarships Fellowships (3,000)
• Less Capital Equipment (4,000)
• Less FA charges (33,167)
• MTDC 77,133
• FA Rate 43
• Total FA Charges 33,167

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Questions Answers