Account Set-Up Training

Account Set-Up Training

Sponsored Programs at Penn Post Award Primer and Terminology, Management and Reporting Tools, Closeouts and Audits REVISED April, 2012 The Office of Research Services The Office of Research Support Services 1 The FDP Federal Demonstration Partnership is a cooperative initiative among federal agencies and institutional recipients of federal funds. It was established to increase research

productivity by streamlining the administrative process and minimizing the administrative burden on principal investigators while maintaining effective stewardship of federal funds. Penn is a participating institution Many of the recommendations of the FDP have been included in expanded authorities. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 2 Carryover Authority & SNAP Carryover Authority Generally Rs, Ks and P01s, but always check the Notice of Grant Award. SNAP

Streamlined Non-competing Award Process Generally Rs, Ks A grant must have carryover authority if it is under SNAP REVISED April, 2012 The Office of Research Services The Office of Research Support Services 3 Importance of Expanded Authorities/FDP Allows some administrative privileges authorized by A-110: Automatic carryover of unobligated balances across budget periods and competitive

segments (except when noted in the Award) Up to one year no cost extension if requested 10 days prior to end of budget period (to complete project & not spend the $) REVISED April, 2012 The Office of Research Services The Office of Research Support Services 4 Importance of Expanded Authorities/FDP Waive most cost related and administrative prior approvals except: Change in scope or objective of the project Change in key personnel

Requests for additional funding Other exceptions as noted Allows for 90 day Pre-award startup costs REVISED April, 2012 The Office of Research Services The Office of Research Support Services 5 Remember! At Penn, grants with automatic carryover retain same fund # for the entire segment. An exception to this rule is subcontracts. All grants without automatic carryover receive a new fund # every new budget period.

Understanding this most basic concept helps you understand when a fund # should expire, require a closeout, or when an advance account may be needed as the project continues. IT IS VITAL TO UNDERSTAND THIS!!!! REVISED April, 2012 The Office of Research Services The Office of Research Support Services 6 Basic Terms to Know Revenue Recognition PBIL and PBUD FSRD and FSRI Operating

Budget Object Code 1220 Receivable Adjustment Period MTDC Encumbrance/ Unliquidated Obligation Unobligated Balance Letter of Credit REVISED April, 2012 The Office of Research Services The Office of Research Support Services

7 Revenue Recognition Revenue Our entitlement to be reimbursed by the sponsor for the allowable expenditures of the grant An equal $ of Revenue is recognized for every $ of allowable expense in object code 4600 Grant Revenue Unallowable expenses and expenses above the award amount do not recognize revenue Revenue does not necessarily reflect the cash received from the sponsor

WHATS WRONG WITH CHARGING AN INDIRECT COST DIRECTLY TO THE GRANT ? REVISED April, 2012 The Office of Research Services The Office of Research Support Services 8 Other Potential Sources of Revenue on a Grant Fund University Funded Cost Sharing - Object Code 4822 TIF (Interest) Income - Object Code 4780 Program Income - Object Code 4620 In the end

(at closeout and disablement of the fund), all sources of Revenue must equal Total Expense. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 9 Grant Receivables (Object Code 1220) As payments are received from the sponsor, the Receivable decreases (a credit) As Revenue is recognized (a credit), the Receivable increases (a debit) Positive Receivable: Expenditures > Cash Received Negative Receivable: Cash Received >

Expenditures REVISED April, 2012 The Office of Research Services The Office of Research Support Services 10 Grant Receivables (Object Code 1220) LOC Letter of Credit funds have a zero receivable. The actual receivable resides in a special holding fund for all funds under the specific LOC. REVISED April, 2012

The Office of Research Services The Office of Research Support Services 11 Special Object Codes (entered by Research Services) PBIL - The Maximum Billable Award PBUD - Authorized Project Budget FSRD - The Total Direct Costs reported to the sponsor FSRI - The Total Indirect Costs reported to the sponsor REVISED April, 2012

The Office of Research Services The Office of Research Support Services 12 More on PBIL PBIL Serves as the control and limits revenue recognition up to award amount Gets reduced to reported amount and guarantees that revenue recognition above reported amount does not occur Will always be rounded to nearest dollar. Cents will only show if there has been a carryover of funding from a previous fund (increase) or has been adjusted to the reported amount (decrease)

REVISED April, 2012 The Office of Research Services The Office of Research Support Services 13 More on PBUD PBUD Most often equal to PBIL except on advance accounts REVISED April, 2012 The Office of Research Services The Office of Research Support Services 14

Operating Budget REVISED April, 2012 (Entered by Administrator) The Office of Research Services The Office of Research Support Services 15 Unliquidated Obligations/ Unobligated Balance Unliquidated Obligations Commitments of the budget period not yet paid When reported funding gets reserved in the next budget period so they can be paid Must liquidate within 90 days (A-110)

Can not be reported in the final period Unobligated Balance unspent and uncommitted may be able to carryover automatically or with approval REVISED April, 2012 The Office of Research Services The Office of Research Support Services 16 Sponsored Programs at Penn Project Management and Reporting Tools

REVISED April, 2012 The Office of Research Services The Office of Research Support Services 17 Project Management Agenda Communication Establishing the Project Environment Managing Monthly Monitor Expenditures Cash Management REVISED April, 2012 The Office of Research Services

The Office of Research Support Services 18 Communication Report monthly to PI Establish payroll distribution Establish level of effort anticipated for each individual on project Be mindful of Salary cap limitations Restrictions on spending Special Terms and Conditions within Award Notice Monitor Subcontracts = Confirm amounts & work done Review each invoice (SPP #2131, #2135 Sub-recipient Monitoring policies)

Communicate regularly with ORS Extensions / Continuations and other project changes Financial reports, delinquent sponsor payment Inform Sponsor via ORS of any Programmatic changes Assesses allowability of costs REVISED April, 2012 The Office of Research Services The Office of Research Support Services 19 Support the Project

Work with PI on on-going basis Ensure that interim reports & proposals are submitted on time Disclose Inventions and Patents Prepare for Progress Reports and Non-Competing Continuations REVISED April, 2012 The Office of Research Services The Office of Research Support Services 20 Establishing the Project Environment Payroll Set-up Identify who belongs on distribution Identify amount of funding and % effort Distribution Stop Date s/b set to the

Account End Date Salary Encumbrances are calculated through the Current Budget End Date or Distribution Stop Date (whichever is earlier) REVISED April, 2012 The Office of Research Services The Office of Research Support Services 21 Procurement Ben Buys Commodity Matrix Methods of Purchasing When should C-1, C-1A, C368, Purchase Order, or P-Card be used

http://www.purchasing.upenn.edu/buyinfo/matrix.php Competitive Bids Required on aggregate purchases > $5,000 unless purchase is with a University Contract Supplier or with a supplier participating in the Penn Marketplace. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 22 Cost Share

Types of Cost Share Mandatory costs required by terms of award that the University must contribute toward project in order for award to be made. Voluntary Committed costs associated with project (identified in proposal or budget justification) for which funding has not been requested from sponsor. Voluntary Uncommitted costs associated with project NOT identified within proposal or budget justification and NOT funded by sponsor.

In-Kind / Matching - Refers to funds being matched in some proportion with non-sponsored project funds, or that the grantee participate to some extent in the cost of the project. Matching requirements may be in the form of an actual cash expenditure of funds, or may be an in-kind match, which is the value of non-cash contributions to the project. Tracking Cost Share Commitments Costs must be expended as proposed and recorded throughout life of project (separate fund ?) Same allowability rules apply & same performance period as primary award REVISED April, 2012 The Office of Research Services The Office of Research Support Services

23 Program Income Definition Gross income earned that is directly generated by a sponsored activity or earned as a result of the sponsored activity Methods of Program Income

Some examples: Income from fees or services performed from external entities or within University, Revenue from sale of tissue harvested from project. Additive = income is added to sponsor commitment. Deductive = income used to reduce sponsor commitment. Matching = income used to finance portion of departmental commitment. Tracking Program Income

Program income recd from external entities must be deposited into o/c 4620 Revenue earned by University dept for fees or selling goods or services to another Univ. dept is consider internal revenue and must be recorded using o/c 5500. Program Income fund is to be set-up to account separately for the costs of collecting and spending the Program Income Awards in which Gross Program income may be off-set by the costs of collecting the income to enable reporting Net Program Income. ($5,000 threshold) REVISED April, 2012 The Office of Research Services The Office of Research Support Services 24

Issues Surrounding Specific Expense Categories REVISED April, 2012 The Office of Research Services The Office of Research Support Services 25 Equipment Definition tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit Must be necessary for project purposes

During the award period Is not reasonably available for use elsewhere in the University Award notice does not constrain equipment purchases Must obtain necessary bids, unless sole source justification Document whether Equipment is Government owned

Government furnished Disposition after the project has ended Know sponsor regulations REVISED April, 2012 The Office of Research Services The Office of Research Support Services 26 Foreign Travel Foreign Travel must be included in proposal or otherwise be

allowed by sponsor. Be sure to justify and document changes (approval, if applicable) if not in proposal Department must maintain documentation in the file that supports the trips purpose Foreign air travel paid with federal funds must be on US-flag air carriers Limited exceptions and they can be found out: www.access.gpo.gov/nara/cfr/cfr-retrieve.html#page1 Exceptions, which must be documented, generally include: US-flag air carrier does not go to destination Total trip time extended more than 24 hours

Lay-over extended more than 6 hours Foreign carrier eliminates 2 or more changes REVISED April, 2012 The Office of Research Services The Office of Research Support Services 27 Consultants Evaluate: Consultant, Employee or Subcontractor? Use C-12 Independent Contractor Determination & Certification http://www.finance.upenn.edu/comptroller/tax/contractor_cer tif.shtml Consulting agreement needs to be completed and forwarded to ORS for approval & signature

Document role of consultant Needs to be working towards goals of project to which he/she is charged Review sponsor guidelines for consultants Ensure approvals are obtained, if applicable Consultant rates may be limited for some sponsors REVISED April, 2012 The Office of Research Services The Office of Research Support Services 28 Purchases PI approval process for purchases Assess allowability, allocability and reasonableness

Verify budget and availability of funds Procure bids Buy American on federal awards when possible Dont buy capital equipment at end of project REVISED April, 2012 The Office of Research Services The Office of Research Support Services 29 Service Centers Definition: A department or functional unit within a department, which performs specific service for a fee

Examples: Cell Sorting facilities, Resonance Imaging facilities, and Animal Care facilities ORS responsible for review & approval of rates Services provided charged based actual use of services Charges for services allocated monthly -Financial Policy #2115 University Service Centers Make sure Service Centers use correct fund account PI & BA should review Service Center charges regularly The BA may not know what services were provided, or if the amount charged is appropriate REVISED April, 2012 The Office of Research Services The Office of Research Support Services 30

Manage Monthly Plan expenditures in advance This will make the project easier to manage throughout life of project Run and analyze appropriate reports Financial Policy #1402.5 Monthly Closings/Reporting Send detailed reports to PI Remove unallowable and wayward charges

Compare expenditures to projections Manage changes through full system Changes in award value affect payroll Changes in subcontracts or equipment affect F&A charges REVISED April, 2012 The Office of Research Services The Office of Research Support Services 31 Manage Project Changes Proactively Use proposal as home base Anticipate necessary changes Contact ORS for approval

Get sponsor approval through ORS Change of scope or effort Plan ahead for extensions REVISED April, 2012 The Office of Research Services The Office of Research Support Services 32 Monitor Expenditure Rates Sponsors question unusual expenditure rates Have we changed scope of work? Are we still breathing?

Communicate with Sponsor (cc ORS) REVISED April, 2012 The Office of Research Services The Office of Research Support Services 33 Cost Transfers The transfer of costs to sponsored projects where the costs initially had been incorrectly charged to another account. Any cost transfers that occur need to be properly justified and documented. University Financial Policy Number 2113 Cost Transfers and Payroll Reallocations states "Cost transfers must be prepared and submitted within 90 days from month

end in which the transaction appears on the fund." Failure to adhere to this policy may result in the University disallowing the transfer which would result in a write-off to the administering department. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 34 Cost Transfers Must be an allocable, allowable and justified charge to the particular award Department must maintain documented justification for transfer

Must be made within time constraints REVISED April, 2012 The Office of Research Services The Office of Research Support Services 35 New Cost Transfer J/E Categories On 7/1/2010, an additional BEN Financials Journal Entry Responsibility titles Journal Entry G&C Costs Transfers was introduced to improve monitoring, tracking and compliance with the Universitys cost transfer Financial Policy # 2113. Initially added 15 G&C UN90 and 16 G&C OV90 On 10/4/2010, updates were made BEN Financials Journal Entry Responsibility to add 2 additional Categories. 17 UPHS Gds/Svs

18 UPHS Payroll REVISED April, 2012 The Office of Research Services The Office of Research Support Services 36 REVISED April, 2012 The Office of Research Services The Office of Research Support Services 37 Cost Transfer Principles Cost transfers are for correcting legitimate ERRORS

Cost transfers should NOT be used as a means of managing cash flow Project funds are NOT interchangeable Integrity of each grant account must be maintained Allowability of costs must be maintained REVISED April, 2012 The Office of Research Services The Office of Research Support Services 38 Cost Transfers Documentation Supported by full explanation and justification, as well as a certification of the propriety of the transfer

Explanations such as to correct error or to transfer to correct project are not sufficient Approval can be documented by PI signature Printed e-mail messages from PI REVISED April, 2012 The Office of Research Services The Office of Research Support Services 39 Cost Transfer Red Flags Transfers made in excess of 90 days after the original charge Improper J/E Categories (15 G&C UN90, 16 G&C OV90)

Transfers without a full explanation High volume of transfers Timing and route of transfers Late transfers to funds with unexpended funds Transfers from funds with overdrafts to other 5 fund(s) Transfers between funds with scientific overlap REVISED April, 2012 The Office of Research Services The Office of Research Support Services 40 Advance Accounts for Continuation Awards Recommended for non-competing renewals requiring new fund #s for each period Department requesting the advance account bears the

risk of having to fund any costs incurred if the funding never materializes Med School sets up NIH advances for full budget period All other Schools set up Advances for 3 month period REVISED April, 2012 The Office of Research Services The Office of Research Support Services 41 Monitoring Accounts Receivable For Letter of Credit awards, check revenue & cash received. There should be no cash on hand. On Letter of Credit, confirm that PBIL is correct Contact ORS to address payment problems with sponsors

Departments should review AR and contact ORS regarding aged receivables of concern For awards on payment schedule, contact Bob Speakman For all other awards, contact Gokila Venkateswaran For Med School awards, ORSS representative is Danielle DiIanni REVISED April, 2012 The Office of Research Services The Office of Research Support Services 42 Checks, Payments and Project Budget Increases Hand carry check to ORS immediately, with project identification Do not deposit check

Should AIS be increased because of check? REVISED April, 2012 The Office of Research Services The Office of Research Support Services 43 Run and Review Reports BEN Reports 102.ORG 115.ORG

133.ORG 134.ORG Summary CNAC-ORG-FUND level Fund Summary Due to Close Summary of Final Expenditure Report Data Warehouse Fund Summary Org Summary Corporate Documents

Payroll Correct Errors REVISED April, 2012 The Office of Research Services The Office of Research Support Services 44 Reporting Tools There are so many reports Im not sure where to look first. BEN FINANCIALS Ben Reports

PennERS Business Objects -Webi GRAMS REVISED April, 2012 PennERA SALMGMT The Office of Research Services The Office of Research Support Services 45 GRAM The online PI view

GRAM / BEN Reports Reports used primarily by Principal Investigators Reports represent a Current Budget Period perspective Not easy to determine PJTD Numbers or amount to close out at (other than Budget Available) Critical for Operating Budget to be posted to the Budget Period Start REVISED April, 2012 The Office of Research Services The Office of Research Support Services 46

Actual Spent represents Current Budget Period Only Further Detail can be clicked on, but none is available for Prior Budget Periods REVISED April, 2012 The Office of Research Services The Office of Research Support Services 47 Management of All Grants in ORG BUSINESS OBJECTS ORG Summary by Fund, PI, Acct End, receivables, overdrafts, funds freezing, late/due FSRs, Analysis of expired funds, Illegal object code charges, possible F&A direct charged to Fed grants, payroll compared to budget.

Grantmonitor PBIL/PBUD/Budget, NCC Due, Awards Due, Revenue Check, Overdrafts (active and expired), Federal Cash, CT Cash, Residual Balances, Receivables Subbudgets our charges to others Otherorgschgs ORG Wayward Summary.rep ORGpersonnel. all current distributions of home dept org Award Analysis- Award Date PT-Requests (all proposals submitted for any time period) JE inquiry (by batch between dates) FY Grant ORG Expense Analysis Effort Report Home Dept ORG Object code by fund posted org Object code by fund detail AIS (full search) Protocols Org/ Protocols PI

REVISED April, 2012 BEN FINANCIALS 132.ORG List of Terminated G&C Funds 133.ORG List of G&C Funds Due to Close 138.ORG Frozen Fund List 201.SCH PJTD Rev/Exp for G&C/URF 202.SCH YTD Rev/Exp Totals for Funds 211.SCH PJTD Rev/Exp Outline for G&C/URF 212.SCH YTD Rev/Exp Outline for G&C/URF 301.BUD Budgetable Amount - Grants/Contracts 306.BUD Negative BBA ORG/FUND/CREF PJTD The Office of Research Services The Office of Research Support Services 48

Fund Level Management BUSINESS OBJECTS fundsummary fundsummary with BRIM fundsummary (w date range) summary by ORG/CNAC SNAP/NCC estimated unobligated balance Fund Detail monthly matrix all expense monthly matrix personnel paid BEN FINANCIALS 102.ORG Summary G&C by CNAC/ORG/FUND 103.ORG Summary G&C by CNAC/ORG/FUND/CREF 115.ORG Grant Fund Summary Report 130.ORG PI Report by CNAC/ORG/FUND

134.ORG Summary of Final Expenditure Report (available for grants in adjustment period) 137.ORG Grant/Contract Budget Period Summary FUNDpersonnel all current distributions on fund Effort Report Fund GRANT REPORTS (-Resp Org, -PI, -CREF, -PI Awarded) PI friendly & monthly payroll and expense detail REVISED April, 2012 The Office of Research Services The Office of Research Support Services 49 Expense Detail BUSINESS OBJECTS

Fund Detail. Payroll by Obj, by Person,Exp Detail by Object, Org, Acct Period, P.O./User Fund Detail PI monthly matrix of personnel paid on PI grants Payroll.(any fund any period of time) variations include: All grants of PI All grants of Resp Org Personnel.(any person, any period) Personnel-one (any persons current distrib) Detail. variations include: All grants of PI All grants of Resp ORG subcontracts object

special budget operating budget cash deposits Encumbrances(Fund) ORG Wayward Detail REVISED April, 2012 BEN FINANCIALS 150.ORG Detail by CNAC/ORG/FUND 151.ORG Detail by CNAC/ORG/FUND/CREF 152.ORG Detail by CNAC/ORG/CREF 153.ORG Detail by CNAC/ORG/FUND/PROG 155.ORG Detail Extract 156.ORG Detail by CNAC/ORG/FUND/PROG/CREF 160.ORG Account Analysis with payables detail 163.ORG Open Encumbrances Report 301.BUD Budgetable Amount - Grants/Contracts

304.BUD Negative BBA ORG/FUND YTD 305.BUD Negative BBA ORG/FUND/CREF YTD 306.BUD Negative BBA ORG/FUND/CREF PJTD 315.BUD Posted Budget Journal with Exceptions 507.GA Posted Journal Activity Report 508.GA Unposted Journal Activity Report 510.GA Detail Transaction by OBJECT by ORG The Office of Research Services The Office of Research Support Services 50 Your assignment Full documentation of the Business Objects Queries is available at: http://www.upenn.edu/computing/da/dw/financial_queries.html

Select Grants Management While we will discuss and give samples of some of the more popular reports today, it is essential that you GO BACK TO YOUR OFFICE AND PLAY WITH THE REPORTS!!! Decide what tools/reports work best for you and your investigators. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 51 Award Analysis Award Date REVISED April, 2012

The Office of Research Services The Office of Research Support Services 52 FY Grant ORG Expense Analysis REVISED April, 2012 The Office of Research Services The Office of Research Support Services 53 ORG Summary REVISED April, 2012 The Office of Research Services

The Office of Research Support Services 54 ORG Summary - Analysis of Expired Funds Why isnt my fund disabled? REVISED April, 2012 The Office of Research Services The Office of Research Support Services 55 ORG Summary possible F&A REVISED April, 2012 The Office of Research Services

The Office of Research Support Services 56 Grant Reports REVISED April, 2012 PI The Office of Research Services The Office of Research Summary Tab Support Services 57

Grant Reports PI Detail Tab REVISED April, 2012 The Office of Research Services The Office of Research Support Services 58 Grant Reports Payroll Encumbrances Tab REVISED April, 2012 The Office of Research Services The Office of Research Support Services 59

Grant Reports PI Taken from the PI Matrix all Tab REVISED April, 2012 The Office of Research Services The Office of Research Support Services 60 Grant Reports PI.rep Taken from the Personnel Matrix Tab. REVISED April, 2012

Note: this covers one period only. Fund Detail PI.rep could do this for a range of The Office of Research Services The Office of Research Support Services 61 REVISED April, 2012 The Office of Research Services The Office of Research Support Services 62 fundsummary Award History tab REVISED April, 2012 The Office of Research Services

The Office of Research Support Services 63 fundsummary - SNAP/NCC Estimated Unobligated Balance Make sure the formula toolbar is checked under View Toolbar. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 64

fundsummary.rep Cref Matrix REVISED April, 2012 The Office of Research Services The Office of Research Support Services 65 Fund Detail.rep REVISED April, 2012 This is the Acct Per. Summary Tab. There is also a Pay Summary Tab as well as numerous tabs 66 to The Office of Research Services sort payroll information and expense detail information.The

Variations of this include: Fund DetailOffice of Research Support Services PI.rep and Fund Detail - cref detail.rep, and fundsummary (w date range) GrantMonitor This tab of the GrantMonitor can help identify NIH noncompeting Progress Reports that might be due. There are also separate tabs which can identify when Subcontracts Progress Reports are due and also T32s based on which Institute the award is with. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 67

JE Inquiry (by batch between dates) Note the 3 tabs which are specifically designed for grant entries done by Res Svcs (8760) or the Comptrollers Office (8720) REVISED April, 2012 The Office of Research Services The Office of Research Support Services 68 AIS (full search) Ability to search on

multiple criteria REVISED April, 2012 The Office of Research Services The Office of Research Support Services 69 AIS (full search) REVISED April, 2012 The New AIS Summary Tab can give a summary of AISs issued

in The Office of Research Services of Research Support Services the lastThe 35Office days 70 AIS (full search).rep REVISED April, 2012 The Office of Research Services The Office of Research Support Services

71 Effort Report Fund.rep REVISED April, 2012 The Office of Research Services The Office of Research Support Services 72 Effort Report Fund.rep REVISED April, 2012 The Office of Research Services The Office of Research Support Services 73

Protocols Org.rep This tab gives a summary of protocols by fund #. There are also separate tabs for Human Protocols by PI, Animal Protocols by PI, Protocols by #, and Expired Protocols. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 74 Identifying Waywards 115.ORG The 115 shows a possible wayward charge from ORG 4227 Cardiology. To obtain the detail of the charge a 15X.ORG report can be run entering the ORG making the charge in the Accounting

Period the charge was made. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 75 Otherorgschgs.rep & Waywards.rep REVISED April, 2012 The Office of Research Services The Office of Research Support Services 76 In Summary

Award must be reviewed on a regular basis Communication is vital to the proper administration of the award When you are not sure, investigate and ask If an award is properly managed, the closeout process is very simple REVISED April, 2012 The Office of Research Services The Office of Research Support Services 77 Sponsored Programs at Penn Closeouts and Audits of

Sponsored Project Funds REVISED April, 2012 The Office of Research Services The Office of Research Support Services 78 Closeout of Sponsored Project Funds Agenda PI & Department responsibilities

Communication Pre-closeout review Adjustment period Freeze/unfreeze grants Technical & invention reports ORS responsibilities Unfreeze requests Financial & non-financial reports Disabling accounts SPP # 2126 Interim & Final Financial Reports SPP # 2128 Account Close-out REVISED April, 2012 The Office of Research Services The Office of Research Support Services

79 What is the Adjustment Period? Period of up to 60 days after Account end date Allows for final review of project activity so adjustments can be made prior to final reporting 30/31 days: 45 days: 60/61 days:

90/91 days: Account Account Account Account End End End End Date + 15 days + 30 days + 30 days Date + 60 days

REVISED April, 2012 The Office of Research Services The Office of Research Support Services 80 Adjustment Period (cont.) Run 134.ORG Report in BEN Financials or Fund Summary in Business Objects Review the following areas PBUD/PBIL should be equal Revenue vs. Expense Should be equal If not, requires further review F&A and Employee Benefits (EB) Were the correct rates appropriately applied? REVISED April, 2012

The Office of Research Services The Office of Research Support Services 81 Adjustment Period (cont.) Review the following areas (cont.) Payroll Any adjustments that may be needed must be made by the end of the adjustment period Service Centers Were these handled appropriately Cost transfers over 90 days that were done without prior approval Other direct costs for allowability REVISED April, 2012

The Office of Research Services The Office of Research Support Services 82 Final Review Prior to End of Adjustment Period Review PBIL/PBUD, NOGA and approved carryforward, if applicable Review subcontracts and respective closeouts Communicate with ORS Accountant Outstanding reporting/receivable issues Determine and address Unliquidated and unobligated carryovers All adjustments must be processed by end of the fund adjustment period Complete all approved, allowable, allocable and

appropriate adjustments identified during preREVISED April, 2012 closeout review 83 The Office of Research Services The Office of Research Support Services Best Practices for Communications Emails - the subject line of your email should be informative Action Fund#, P.I., Description Examples: Closeout 538500, Mendel, 5K23MH024680-03 Unfreeze 538000, Frankenstein, 5R01HG012345-05 One email per fund action

Email ORS Accountant and notify them of the Direct, Indirect, and Total Expenses to report hopefully by the end of the adjustment period but no later than 1 week before report due date. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 84 Freeze/Unfreeze Grant Functionality REVISED April, 2012 The Office of Research Services The Office of Research Support Services

85 Freeze Grants Functionality Tool that allows authorized research administrators and ORS to limit activity against an award Can be used during life of project and during the adjustment period Can reduce cost transfers and overruns after the end of the fund project period Improve timeliness and accuracy of final financial reports REVISED April, 2012 The Office of Research Services The Office of Research Support Services 86

Freeze Grants Features Awards are frozen/unfrozen at fund level Payroll can be frozen manually prior to the Account End Date Functionality frozen automatically after Account End Date New Purchase Orders/Requisitions Functionalities frozen automatically after Adjustment Period End Date (APED) Manual Journal Entries C-forms Feeder Journal Entries Payroll REVISED April, 2012 The Office of Research Services The Office of Research Support Services

87 Unfreeze Request (cont.) Are not necessary to: Prepare budget journals Pay already encumbered amounts on an existing P.O. Unfreeze advance accounts (request an extension of advance account) REVISED April, 2012 The Office of Research Services The Office of Research Support Services 88 Unfreeze Grants (cont.)

Submit your request to: School of Medicine departments Send worksheet and details (including documentation) to Office of Research Services Support (ORSS) Grant Manager with a cc to ORS Accountant ORSS will review and, if approved, will forward to Research Services Accountant and cc Assistant Director All other Schools Send worksheet and details to ORS Accountant and cc Assistant Director Unfreeze requests are normally addressed within two business days REVISED April, 2012 The Office of Research Services The Office of Research Support Services

89 ORS Responsibilities REVISED April, 2012 The Office of Research Services The Office of Research Support Services 90 ORS Reporting Period Tasks Reviews Due Reports to determine report due date Email will be sent requesting closeout information ORS Accountant reviews the following; -Terms and conditions of award and sponsor reporting requirements Review the 734 report in Business Objects

(similar to 134.ORG report in Ben Financials) Check PBUD/PBIL for accuracy Reconcile EBs, F&A and Cash Review 252 report for stale dated checks REVISED April, 2012 The Office of Research Services The Office of Research Support Services 91 ORS Reporting Period Tasks (cont.) Review expenses posted to the fund for allowability Revenue 4600, 4620, 4630, 478X, 4822, TIF, Program Income & Other Revenue

Review remaining balances or deficits ORS will communicate any issues identified and request a response from the BA If the ORS Accountant does not receive a response regarding closeout the report will be issued and an email will be sent stating what was reported to the sponsor. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 92 ORS Reporting Period Tasks (cont.) Overdrafts ORS will contact department regarding

resolution If no response is received by report due date, fund will be reported up to award amount and ORS will process journal to transfer resources from departmental fund to grant fund to offset overdraft via object code 4822 SPP # 2129 Chargeback of Overdrafts and Disallow ances REVISED April, 2012 The Office of Research Services The Office of Research Support Services 93 ORS Reporting Period Tasks (cont.)

Unexpended Balance Will be reported to sponsor Carryover will be processed and/or requested as appropriate Residual cash will be remitted to sponsor according to agreement Carryovers and/or unliquidated obligations will be determined and handled as appropriate REVISED April, 2012 The Office of Research Services The Office of Research Support Services 94 ORS Reporting Period Tasks (cont.)

Final Financial Status Report (FSR)/(FFR) Submission Financial report will be issued by ORS no later than due date A copy will be sent to department and a copy will be scanned into our imaging system (Acorde) ORS will process any closing entries based upon final reports REVISED April, 2012 The Office of Research Services The Office of Research Support Services 95 Revised FSR/FFRs Only done in rare circumstances When revising to increase total expenses, most

sponsors will only accept revised reports for limited period of time following the end of the award. Some agencies will not accept upward revised FSRs. When revising to decrease total expenses, there is no time limit. These should be completed immediately upon identification of the need for a revised FSR. SPP2012 # 2137 REVISED April, Revised Final Financial Reports The Office of Research Services The Office of Research Support Services 96

Disabling Funds How does a fund get Disabled? ORS runs 717.RA report in BEN Financial weekly To identify funds that meet disable requirements If the fund is eligible for disabling ORS checks Enable flag Enters date in BEN Financials REVISED April, 2012 The Office of Research Services The Office of Research Support Services 97

Requirements to Disable Funds 1. 2. 3. 4. 5. 6. 7. 8. Financial Report must be submitted if requiredLast FIN Report Filed=Next FIN Report Due FSRD and FSRI s/b posted reflecting Direct and Indirect Costs reported PBIL=PBUD=FSRD+FSRI=Total Expenses reported and on the G/L No Encumbrances can remain Object Code 1220 Receivable must =0

Equipment in Object Code 183X/187X must be transferred to School Surrogate Accounts via an Object Code 4826 Equipment Transfer BRIM (ORS billing system) is reconciled (requires ORS action) All stale dated checks have been satisfactorily addressed REVISED April, 2012 The Office of Research Services The Office of Research Support Services 98 Miscellaneous - Cost Sharing (cont.) Cost Sharing How is it recorded in our system? Must be separately accounted - a 5 fund must be

established if Cost Share > $10K What needs to be done at closeout? Mandated cost sharing must be reported to the sponsor How is it managed? Expenses should be recorded and monitored on a timely basis Revenue entries must be routinely performed SPP #2119 Cost Sharing/Matching Requirements REVISED April, 2012 The Office of Research Services The Office of Research Support Services 99

Miscellaneous Interest Bearing Funds Interest Bearing Funds When does an award fund receive interest? Monthly basis How do I know if my fund is interest bearing? T&C of award determine Can I spend these funds? T&C of award determine At Closeout, what happens to these funds? T&C of award determine REVISED April, 2012

The Office of Research Services The Office of Research Support Services 100 Miscellaneous Program Income Program Income What is Program Income? Gross income earned & directly attributable to the sponsored activity How is Program Income handled? Additive vs. Deductive How is Program Income handled at closeout?

SPP #2121 Accounting for Program Income REVISED April, 2012 The Office of Research Services The Office of Research Support Services 101 Miscellaneous Record Retention What do I need to retain? How long do I need to keep it? SPP #2132 Record Retention REVISED April, 2012

The Office of Research Services The Office of Research Support Services 102 Miscellaneous Award Transfers If a PI is planning to leave the University, ORS staff should be contacted as soon as possible to expedite the process Statement of Relinquishment or similar document Required information must be verified ORS signature must be obtained Estimated unobligated balance-funds awarded on NOGA for current year only exclusive of any amounts carried over Not finalizing costs may delay transfer of funds to the next University

Any property being transferred must be addressed REVISED April, 2012 The Office of Research Services The Office of Research Support Services 103 Non-Financial Close Out Issues Final technical and/or progress report Final invention statement Final property report REVISED April, 2012 The Office of Research Services The Office of Research Support Services

104 Getting Assistance on Closeouts For financial matters: Contact ORS accountant or PostAward Assistant Director Regarding extensions, requests for budget or other modifications to agreement, or non-financial matters: Contact your Contract Administrator REVISED April, 2012 The Office of Research Services The Office of Research Support Services 105

Questions??? REVISED April, 2012 The Office of Research Services The Office of Research Support Services 106 Sponsored Programs at Penn Audits REVISED April, 2012 The Office of Research Services The Office of Research Support Services

107 Pre-Award Audits Performed by agency to verify Accuracy of costs on application Adequacy of University systems and controls Usually performed by or at the request of the sponsor Federal Awards DHHS is Cognizant Agency Sponsoring Agency REVISED April, 2012 The Office of Research Services The Office of Research Support Services

108 Agency or Programmatic Audits Performed on Active or Terminated awards Federal Awards normally a result of a request by the Sponsor Review by Dept of Health & Human Services (DHHS) Foundations and Associations Other REVISED April, 2012 The Office of Research Services The Office of Research Support Services 109

Investigative/Criminal Audits Usually based on allegations of fraud Misuse of funds on awards including: Purchasing Card charges Petty Cash abuses Audit of how we comply with regulations If Federal OIG audit Subpoena powers REVISED April, 2012 The Office of Research Services The Office of Research Support Services 110 Internal Audits

University audits projects to Evaluate system controls Assess compliance with University and sponsor policies and applicable OMB circulars Investigate reports of fraud REVISED April, 2012 The Office of Research Services The Office of Research Support Services 111 Compliance Audits Assess compliance with Sponsor regulations University policies

Human Subject/Animal issues REVISED April, 2012 The Office of Research Services The Office of Research Support Services 112 F&A Cost Proposal Audits Audit occurs cyclically During the F&A negotiation process F&A recovery rates are affected by expenditures Interviews of PI and BA to determine basis for assigning space to research

Space drives the rate 32.5 points of 57% rate REVISED April, 2012 The Office of Research Services The Office of Research Support Services 113 OMB Circular A-133 Audit Required annual audit of federal grants & contracts Performed by independent auditors Penn: PricewaterhouseCoopers (PwC) Audit of systems and transactions Cost Transfers, Effort Reports, Subcontracts, Service

Centers, Technical & Financial Reports REVISED April, 2012 The Office of Research Services The Office of Research Support Services 114 General Principles for Audits Good award management is the key to good (uneventful) audits Good documentation is essential in Department and ORS Audits are everyones responsibility PI, BA, School, Pre and Post-award in ORS Dont go in alone

REVISED April, 2012 The Office of Research Services The Office of Research Support Services 115 General Principles for Audits (cont.) Audited on compliance with all applicable regulations & policies Federal State Sponsor Specific award terms University REVISED April, 2012 The Office of Research Services The Office of Research Support Services

116 General Principles for Audits (cont.) Audited on consistency of policy application Audits may provide feedback for process improvement Audit results can be expensive ORS & PI have a responsibility to educate the auditor about the purposes of the project REVISED April, 2012 The Office of Research Services The Office of Research Support Services 117

Preparing for Audits Notify ORS as soon as you learn of audit SPP #2130 External Audits ORS & PI/BA meet to prepare for audit Anticipate questions Develop procedures for working with auditors File management Prepare and support the PI Work to prevent adversarial relationship Dont panic REVISED April, 2012 The Office of Research Services The Office of Research Support Services

118 Audit Lessons Learned REVISED April, 2012 The Office of Research Services The Office of Research Support Services 119 Critical Audit Concerns Salary Charges on Awards Effort on award must equal or exceed salary charged Effort must be documented in Personnel Activity Report form

Payroll Reallocations Same as Cost Transfers Communicate with PI REVISED April, 2012 The Office of Research Services The Office of Research Support Services 120 Critical Audit Concerns (cont.) Cost Transfers

Auditors view them as corrections of errors Explain why the error occurred Establish correlation of charge to next grant Provide documentation Maintain documentation in file Cost Transfers must be prompt and justified Parking a charge is illegal REVISED April, 2012 The Office of Research Services The Office of Research Support Services 121 Critical Audit Concerns (cont.)

Documentation Costs that deviate from the proposal must be justified in terms of the project Maintain all approvals from sponsor Explain why decisions were made PI must approve costs incurred on award REVISED April, 2012 The Office of Research Services The Office of Research Support Services 122 Critical Audit Concerns (cont.) Consultants Document relationship with consultants Do not circumvent IRS employee regulations

Do not engage an employee of sponsor or Penn employee as a consultant Consulting agreement (work for hire) must document scope of work, rate and payment terms Proper inventory of equipment Tag & document transfer, move or disposal REVISED April, 2012 The Office of Research Services The Office of Research Support Services 123 Critical Audit Concerns (cont.)

Service Centers are reviewed (A-133 & F&A proposal) Surpluses are problematic Are federal awards being overcharged? Rates must be adjusted to off-set the surplus At least annually adjust to compensate for surplus or deficit Maintain documentation of charges Maintain records of rate determination SPP #2115 University Service Centers REVISED April, 2012 The Office of Research Services The Office of Research Support Services 124

Critical Audit Concerns (cont.) Subcontracts PI must monitor subrecipient performance and expenses Subrecipient must verify that it is not debarred or suspended ORS monitors subrecipient audit reports If findings result from expenditures of subcontract, Penn department is responsible for the cost of findings. REVISED April, 2012 The Office of Research Services The Office of Research Support Services 125

Critical Audit Concerns (cont.) Close-Out Penn must submit all required reports Programmatic, Financial, Patent, Property Timeliness of reports REVISED April, 2012 The Office of Research Services The Office of Research Support Services 126 If you are contacted by a sponsor regarding an audit

Contact ORS Executive Director REVISED April, 2012 The Office of Research Services The Office of Research Support Services 127 Questions??? REVISED April, 2012 The Office of Research Services The Office of Research Support Services 128

Sponsored Programs at Penn Resources REVISED April, 2012 The Office of Research Services The Office of Research Support Services 129 ORS Website and Resource Tour http://www.upenn.edu/researchservices/ Homepage Left Quick Links Sponsored Projects Manual Sponsor Links Spotlights

ORS Newsletters and listserv Brown Bags and other Training Opportunities REVISED April, 2012 The Office of Research Services The Office of Research Support Services 130

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