New Guidelines for Grant Closeouts

1
New Guidelines for Grant Close-outs

• Office of the Provost
• Office of the VP for Financial Affairs and
  Administration

2
Why ?

• Clarify guidelines for billing/collection
  responsibility
• Enhance UAB collection efforts
• Improve grant close-out/collection procedures
• Improve compliance with sponsor reporting
• requirements
• Specify required communications between
  PI/staff/GCA
• Create benchmarks for training and education

3
Grant Closeout Task Force Timeline

• Summer 07 allocated 7M in uncollected
  grant/contract past due balances to Schools due
  to audit concerns
• Nov 07 charged Task Force
• Jan Jun 08 reviewed best practices, developed
  draft guidelines, provided gap needs analysis
• Jul Aug 08 open comment period
• Sep 08 reviewed comments/suggestions,
  incorporated appropriate changes
• Fall 08 created reports to assist departments
  in close-out functions
• Dec 08 published implementation/training
  schedule

4
Key Improvements

• Sponsored Project Close-Out/Payment Collection
  Guidelines
• Establishes clear, specific roles/responsibilities
  for OGCA, GCA, Office of the Provost, VPFAA,
  General Counsel
• Establishes timelines for required actions
• Recommends specific additional reporting/communica
  tion on A/R balances, invoicing due dates, etc.
• Allows for GCA to more effectively submit final
  invoices/close accounts within sponsor deadlines
• Establishes specific roles/responsibilities for
  A/R collections (GCA)
• Creates automatic referral to General Counsel for
  past due accounts over 120 days

5
OGCA Role/Responsibility

• Revise extramural checklist to include election
  for billing responsibility
• Ensure initial grant/contract account billing
  responsibility is assigned and communicated

6
GCA Role/Responsibility

• Communicate to PIs/department administrators
  regularly as grant close-out dates approach
• Issue timely at-risk continuations as
  appropriate
• Close-out awards within 30 days of final due date
  
• Send final FSR/invoice
• Allocate cost overruns to appropriate VCS account
• Transfer fixed-price contract balances to
  residual accounts if appropriate
• Return unspent account balances to sponsors if
  appropriate
• Initiate active collection plan for past due
  accounts

7
Billing Responsibilities

• GCA
• Letter of Credit (LOC)
• Federal Pass-Thru/Reimbursement Projects
• Scheduled Payment Projects
• PI/Award Manager
• Per-Patient/Visit
• Milestone-based Contracts
• Responsible billing entity to be designated when
  grant is set up by OGCA

8
Project Management/PI Role/ Responsibility

• Actively manage grant/contract close-out
  expenditure postings/allocations/reports due
• Verify salaries
• Close open commitments
• Review and allocate expenditures
• Submit applicable cost transfers
• Reconcile mandatory cost-sharing funding
• Communicate with GCA on issues of concern

9
Project Closeout Communication

• GCA to issue GA report on grant financials to
  PI/award manager at 125, 95, 65 and 35 days prior
  to project end date
• Reports are trigger for PI/award manager to
  make adjustments
• Salary/expense allocations
• Open commitments pay or close
• Cost transfers if needed
• Mandatory cost share
• Request for NCE continuance
• Final reports

10
Collection Past Due Accounts

• Past Due defined as 90 days from final invoice
  date
• For GCA-billed accounts, new due-diligence
  standard established
• Minimum of 2 documented contacts with sponsor
  within first 90 days
• Over 90 days, GCA to notify PI/Award Manager for
  assistance
• Accounts gt 120 days past due requires an active
  collection plan be implemented by PI, Award
  Manager, GCA, School Dean/designate and Legal
  Counsel
• Unrecoverable balances to be addressed on
  case-by-case basis
• Final adjudication by AVP Financial Affairs and
  Associate Provost for Administration and Finance

11
Training Available

• Town Hall Meeting in West Pavilion
• January 9, 2009 - 300 to 500 p.m.
• Town Hall Meeting in Heritage Hall
• January 16, 2009 - 200 to 400 p.m.
• School/Dept specific training topics as requested
  
•  Training sessions conducted by members of the
  Grant Close-out Task Force and other
  administrators

12
Questions ?

• Questions and requests for training may be
  addressed to the Office of the Provost
• (934-0622)