Post Award Accounting for Federal Grants and Contracts

1
Post Award Accounting for Federal Grants and
Contracts

• Hilarie Connolly
• Healthcare Life Sciences
• Government Contract Consulting

2
Initial Procedures

• Review the contract document
• Regulations governing award
• Deliverable research
• Funding arrangement
• Potential refunds
• Audit clauses

3
Regulations

• Federal acquisition regulations
• NIH - NIAID
• DFARS
• Other agency supplements
• OMB A122 not for profits
• OMB A-21 universities
• OASC-3 - guide for hospital research
• Cost accounting standards
• GAAP

4
Cost Accounting Systems

• Record cost of transaction
• Cash received spent
• Distribute to cost objectives
• Amount utilized for each project
• Integrate production into accounting records
• Ability to report usage to government

5
Labor Material Costs

• What did you do with your time ?
• Are you working on more than one grant ?
• How do you track your administrative time ?
• Need to include administrative time in reporting
  
• Billing, proposals, managerial tasks
• What materials equipment are needed for your
  project ?
• Are they purchased to be used on one project ?

6
Direct Costs

• Identified with a particular final cost objective
• Labor cost
• Material
• Other Direct Costs
• Travel
• Special Purchases

7
Supporting Documents

• Labor costs - time report
• Identify productive non-productive time
• Record direct costs to project Indirect cost to
  overhead
• Used to justify amount billed
• Integrity of labor charge resides with employee
• Other direct costs - invoice from vendor
• Transactions identified to project or overhead
  group
• Identify purpose of item or service purchased

8
Indirect Costs

• Identified with
• Two or more final cost objectives, or
• At least one intermediate cost objective
• Indirect costs
• Labor administrative time
• Benefits health plans, vacation, holidays,
  payroll taxes
• Other - rent, utilities, equipment depreciation

9
Accounting For Indirect Costs

• Cost pools
• Homogeneous groupings
• Allocation Base
• TCI
• Value-added
• Single element
• Resource consumption

10
Indirect Cost Rate

• Rate structure alternatives
• Single rate
• Two indirect rates
• Multiple rates, including service centers

11
Project /Job Order Costing

• Distinct final cost objectives
• Labor
• Material
• Other direct costs charged by item
• Indirect costs allocated

12
Project Costs