FIC Grants Information

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Financial and Administrative Systems Information
for NIH Foreign Grantees
Fogarty International Center (FIC) National
Institutes of Health

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Financial and Administrative System Information
for NIH Foreign Grantees
The purpose of this presentation is to provide
useful information to NIH grantees to assist with
their Financial and Administrative Systems.

• There are two main sections in this presentation
• Internal Controls
• Accounting System Financial Reporting

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Internal Controls

• Grantees need to establish internal controls to
  receive and monitor NIH grant funds. Some
  internal controls are listed on the following
  slides

• Foreign organizations should have a procedure in
  place to ensure that grant funds sent to your
  institution are deposited into a specific account
  identified for grant-related expenses.

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Internal Controls, continued

• The organization should have a procedure in place
  to ensure that grant funds are expended only on
  allowable costs. (See Allowable Costs section in
  the FIC Grants Information Resource Package).
  Foreign grantee organizations should only charge
  overhead costs, to administer the grant, up to
  the amount awarded for FA costs.
• The organization should have a procedure in place
  to ensure that the principal investigator
  approves all costs expended or charged to a grant
  and that the principal investigator is given
  periodic financial reports about expenditures.

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Internal Controls, continued

• The organization should have a procedure in place
  to ensure that all Terms and Conditions on the
  Notice of Grant Award (NGA), the official
  notification from NIH awarding the grant, have
  been reviewed.
• The organization should also have a procedure in
  place to ensure that any restrictions on the
  Notice of Grant Award are identified and
  resolved.

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Internal Controls, continued

• The organization should try to ensure that there
  is a separation of responsibilities in the
  approval of charges to the grant and the
  disbursement of grant funds.
• The organization should have separation of
  responsibilities in the preparation and payment
  of employee salaries (i.e. payroll), and have
  written procedures in place.

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Internal Controls, continued

• The organization should have an equipment policy
  that ensures that equipment purchased under a NIH
  grant will be used for grant-related purposes
  until the grant has ended.
• The organization should have timekeeping
  procedures in place to ensure that personnel
  charges are allocated appropriately to the
  correct grant account.

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Accounting System and Financial Reporting
Grantees need to have an appropriate accounting
system to properly administer NIH grant funds.
Useful information regarding an Accounting System
and Financial Reporting is provided on the
following slides

• The organizations accounting system should have
  a Chart of Accounts (list of accounts) that
  provides for consistent treatment of direct costs
  and facilities administrative (indirect) costs.

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Accounting System and Financial Reporting,
continued

• The organization should have an accounting system
  and procedures in place to ensure that all income
  and expenses are allocated to the correct grant
  account.
• The organization should prepare financial
  statements every year.

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Accounting System and Financial Reporting,
continued

• If an organization expended 300,000 or more in
  any previous year from the U. S. Department of
  Health and Human Services (includes NIH, FDA,
  CDC, HCFA, IHS and AHRQ), then the Code of
  Federal Regulations (Title 45 Part 74) requires
  that either a Circular A-133 audit or a financial
  related audit, in accordance with Government
  Auditing Standards (Yellow Book Audit), be
  performed annually.

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Accounting System and Financial Reporting,
continued

• Foreign grantees must submit annual Financial
  Status Reports (FSRs) on Standard Form SF-269
  that is provided in the FIC Grant Information
  Resource Package. The organization should have a
  procedure in place to ensure that the FSR (Form
  SF-269) is submitted to NIH each year in a timely
  manner.

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