Sponsored Chart of Accounts

1
Sponsored Chart of Accounts
Object
Activity
Root

• 7 segments, 33 digits
• Separates source and use of award funds
• Provides flexibility, reporting, and analysis
  capability
• Fund, Activity, and Subactivity define a
  sponsored award
• 4-digit object code is only required at the time
  of transaction
• Sponsored Business Rules

2
Fund Segment
Sub-activity
Activity
Fund

• Unique value that identifies the source and type
  of funding
• HMS Federal (FG Grants Contracts ) Range
  (148000-160000)
• HMS Non-Federal (NE Exchange Accounts ) Range
  (223700-230000)
• HMS Non-Federal Sponsored Grant Range
  (280000-285000)

3
Activity Segment
Sub-activity
Activity
Fund

• Unique value that captures the purpose or use of
  funds
• Each activity value assigned to an award
• Associated with one external sponsor
• Corresponds to one A-21 functional category

HMS Sponsored Range (375000 389969)
4
Activity Segment
The activity segment captures OMB A-21
functionality
A-21 Code
Description
A01
Instruction and Training
A02
Organized Research
A03
Other Sponsored Activities
A15
Scholarships and Student Aid
Preponderance of Effort Rule When an award is
assigned multiple activity values in most cases
the values should be assigned the same A-21
functional code
5
Subactivity Segment
Sub-activity
Activity
Fund

• Allows award to be broken down by task or year
• Level at which expenditures are budgeted and
  tracked
• Linked to the activity segment

6
Subactivity Tracking by Task

• 00

Task

• Task could represent
• Parts of an award
• Multiple investigators (PI or co-PI)
• Sub-agreements issued
• Multiple FA Rates

Note Normally appropriate for awards under
Expanded Authorities
7
Subactivity Tracking by Year

• YY

Year
Task
Example 0101 Year One, Main 0102 Year One,
Subcontract - MIT 0201 Year Two, Main 0202
Year Two, Subcontract - MIT
Note Cost Transfer documentation required for
transfers between budget years
8
Action Memo

• Provides award and subactivity information
• Anticipated/Awarded dates and dollars
• FA rates
• Contact information
• Remarks describing the action taken
• Triggers department to submit budget to the GL
• Initiates update of reporting and receivable
  schedules by OSP

9
Object Codes

• Level of detail should reflect sponsor
  requirements
• OMB A-21 and CAS require costs to be reported at
  the same level of detail as proposed in the
  budget
• Income object codes restricted to OSP and
  Recording Secretarys Office (RSO)
• Overhead object codes restricted to OSP and FOA
• Subcontract accounts use range 8180-8189
• Accuracy and consistency important the object
  code assignment effects
• FA rate calculation
• Reporting
• Compliance

10
CAUTION!!

• All awards are managed at thesubactivity level
• The following tasks must be completed for each
  subactivity
• Budgeting and rebudgeting
• Reconciliation
• Closing
• Carrying funds forward, when applicable

11
CAUTION !!

• Cross-validation rules are not in place among the
  fund, activity, and subactivity segments
• Department personnel are responsible for
  selecting the appropriate chart values, including
  object codes, to manage an award
• Monthly reconciliation will identify coding
  errors and allow sufficient time to process
  correcting journals within the cost transfer
  policy limitations