Contracts and Grants Accounting

Slides:



Advertisements
Similar presentations
Office of Management & Budget
Advertisements

Effort Training Part III Cost-Sharing, Salary Caps & Other Concerns Office of Sponsored Programs July, 2011.
Sponsored Programs How to Budget. BUDGETING BASIC CONSIDERATIONS  Benefit the Project  Allowable Costs  Total Cost Concept  Direct Costs  Indirect.
Cost Sharing Date Presenter Name Presenter Phone Number Presenter .
Prepared by the Office of Grants and Contracts1 COST SHARING.
Research Administration for Scientists Tim Quigg, Associate Chair and Lecturer Computer Science Department, UNC-Chapel Hill OMB Circular A-110: Administrative.
Contracts and Grants Accounting C&G Training Presentation Budget Procedures Effective July 1, 2014.
Contracts and Grants Accounting C&G Training Presentation June 4, 2014 Project Costing ChartFields Effective July 1, 2014.
Cost Sharing-Presented By Cindy Kiel, CRA, Washington University in St. Louis Kim Small, Washington State University Wanda Bowen, CRA, University of Alaska.
Contracts and Grants Accounting C&G Training Presentation May 21, 2014 Cost Share: Budgeting, Spending and Reporting Procedures Effective July 1, 2014.
Contracts and Grants Accounting C&G Training Presentation May 14, 2014 Program Income Procedures Effective July 1, 2014.
Program Income: The What, When, Why, How, and Where of dealing with Program Income.
Washington University Washington University School of Medicine Research Administrator’s Forum February 2002.
G1 The Essentials to Take Charge of Your Finances Spending plans Advanced.
Financial Management How Can I Spend Award Dollars.
Unit 03: Financial Literacy Vocabulary. Available Balance The amount available in an account for a person, business, or organization to spend. How much.
Maymester Accounting Change Maymester tuition revenue and related expenses need to be recorded in current fiscal year – “one time shift” Maymester payroll.
“Grants Boot Camp” Workshop Series January 9, 2014 Creighton University Sponsored Programs Administration 2500 California Plaza, Omaha, NE  Phone:
End User Changes GO LIVE May 13, 2010 PS Grants Implementation.
Time with Office of Sponsored Programs April 4, 2011 Topic: Cost Share.
Washington University Washington University Hilltop Campus Research Administrator’s Forum March 2002 Presented by The Research Office and Sponsored Projects.
Cost Sharing on Contracts and Grants October 16, 2001.
Managing Your Grant Award August 23, 2012 Janet Stoeckert Director, Research Administration Sr. Administrator, Basic Sciences Keck School of Medicine 1.
SBIR Budgeting Leanne Robey Chief, Special Reviews Branch, NIH.
1 FEE-FOR-SERVICE AND PROGRAM INCOME TRAINING Presented by:
COST SHARE Neta Fernandez Director, Grants and Contracts.
Let’s Talk Cost Sharing Sherrelle Vaughn Sponsored Programs Accounting and Reporting July 17, 2012.
University of Minnesota Office of Internal / External Sales Fiscal Year-End Actions for Internal/External Sales Organizations.
“Surviving an Audit” Al Willie, Office of Internal Audit
FSU’s Policy on Advances CReATE CReATE ver. 5/13 © 2013 Florida State University. All rights reserved.
Contracts and Grants Accounting C&G Training Presentation May 28, 2014 Budget Procedures Effective July 1, 2014.
How Grant/Research Administrators and OSR Can Work Together Better.
Cost Sharing. Objectives Review roles and responsibilities Facilitate pro-active, continuous monitoring of cost share commitments Review Cost Share Summary.
National Institutes of Health U.S. Department of Health and Human Services NIEHS SRP Annual Meeting November 18 – 20, 2015 George Tucker Chief, Grants.
I have a Grant, Now What??! John Hulvey Office of Sponsored Programs Administration and Accounting.
CLINICAL RESEARCH STUDIES Business & Finance (B &F) Prospective Patricia W. Davis Director of Research Office of Business & Finance
OMB Circular A-122 and the Federal Cost Principles Copyright © Texas Education Agency
Copyright © Texas Education Agency Accounting for Grant Funds, including Documentation for Expenditures.
Recharge/Service Center: Rate Setting Overview Auxiliary Forum December 2015.
Understanding Facilities and Administration Charges in NIH Grants
CMAA: Direct Charge Expenses Non-Offset Revenues
Introduction to Billing PeopleSoft Grants 9.2
Setting Up a New Recharge Center
Presented by Urmila Bajaj January 26, 2017
Effort Certification and Cost Sharing
GIFT DEPOSITS To Report a Cash Gift Received by a Department
Schedule of Charges Contact Persons: Michelle Parker (2-3807)
Cost MSU WELCOME! Introduction Overview Specifics Conclusion
DIRECTOR OF FINANCE/hr
1. Know your business manager. -invite them to department
Part Two: Management of
External Invoicing & FAST AR
Understanding Facilities & Administrative (F&A) Costs
Sponsored Programs at Penn
Sponsored Programs at Penn
Effort Certification and Cost Sharing
Cash Management and Capital Planning
Sponsored Programs at Penn
2016 AmeriCorps Texas All-Grantee Meeting February 25-26, 2016
Time with Office of Sponsored Programs
Participant Support Costs
Outline Definition and common types of intangible assets
Cost Sharing May 15, 2013.
DGCA Breakfast Briefing Program Income
The Federal Financial Report (FFR)
OCGA Presentation - Academic Affairs Fiscal Contacts Meeting
AURA May 1, 2019.
SPOT CHECKS 2016.
Presentation transcript:

Contracts and Grants Accounting Program Income Procedures Effective July 1, 2014 C&G Training Presentation May 14, 2014 Objectives for this training: Introduce the types of program income and how they affect award budgets, spending Cover how to budget for and manage program income Provide managers with the information, tools needed to train their staff

What is Program Income? Some sponsored activities generate income as a by-product of the work performed. Federal regulations refer to this as "program income.”  Examples: Income from fees, such as registration fees for conferences and workshops Fees charged for laboratory tests and analysis License fees and royalties on patents and copyrights Fees garnered from the use or rental of property acquired using award funds Proceeds from the sale items fabricated using award funds, such as software, CDs, tapes, or publications Authority to spend Funds from Program Income Funds committed by Sponsor

What is Program Income? When income is directly generated by a supported activity or earned as a result of an award, that income is subject to the terms and conditions of the sponsor and must be treated according to the sponsor’s requirements Income generated by federally sponsored activities is considered part of the award and must be spent on that award Funds generated on one award cannot be used on a different award Some NSF awards specify Program Income funds be spent first, i.e., before the sponsor is invoiced for expenses Program Income is “net” – the income generated covers the costs incurred Even if program income was not originally anticipated and noted in the proposal documents, it is part of the award funds and must be reported to the sponsor and used according to sponsor requirements.

Types of Program Income Regardless of the type of program income, the funds generated must be spent on the award Additive – program income funds are added to award funds, thus increasing the amount available to accomplish program objectives Deductive – total funds available to the project remain the same and the funds generated through Program Income are deducted from the financial commitment of the sponsor Matching – program income funds are used to finance the non-sponsor share of the award (mandatory or committed cost sharing) Add/Deduct – a portion of program income is added to the award funds (up to a limit specified by the sponsor) increasing the amount available to spend. The remaining program income is deducted from the sponsor’s financial commitment. It’s important to know the sponsor’s requirements, as this affect how the sponsor is invoiced, and may affect the PI’s authority to spend on the award. [in each of the following examples, we’ll apply $10,000 of net program income…]

Additive Program Income Increases the total amount available to spend Authority to Spend $110k Additive Program Income ($10k) Award amount $100k Funds committed by sponsor ($100k) Typically, program income generated by research awards follow the additive method, which increases the award’s total budget.

Deductive Program Income Income earned reduces the sponsor’s financial commitment Total amount available to spend remains the same Award amount $100k Funds committed by sponsor ($100k) Deductive Program Income ($10k) Typically, program income generated by non-research awards follow the deductive method, which reduces the sponsor’s commitment but does not change the award’s total budget. ($90k)

Matching Program Income Applies to cost sharing commitment, not award amount Uses income generated by award activities as cost sharing on the award Does not change the University’s cost sharing commitment Award amount $100k Funds committed by sponsor ($100k) Cost Share amount $25k Funds committed by University ($25k) Matching Program Income ($10k) Matching Program Income does not change the total cost sharing amount, rather, it changes how that commitment is funded. ($15k)

Add/Deduct Program Income Splits income between additive and deductive per sponsor’s requirements Increases the total amount available to spend up to a sponsor-defined limit Funds generated in excess of the limit reduce the sponsor’s financial commitment Authority to Spend $105k Additive Program Income ($5k) Award amount $100k Funds committed by sponsor ($100) Deductive Program Income ($5k) Some National Institute of Health (NIH) awards may require using the add/deduct method of program income accounting ($95)

Accounting for Program Income As soon as you have identified an activity that will generate income… Check your award documentation to determine the sponsor’s requirement for tracking and using program income Notify CGA, and let them know the ChartFields (Fund, Dept, Program Code, CF2) you will be using CGA will then create a specific CF1 value -- attributed “program income” with SPO award number as the attribute value – for you to use For Matching Program Income, the CF1 value assigned will represent both Program Income and Cost Sharing for the award (value begins with 2, has two attributes) CGA will update the PC ChartField mapping table so the new CF1 will function appropriately in BearBuy and BFS It’s critical that you inform CGA as soon as the income opportunity is identified – don’t wait for the income to be earned.

Recording Program Income Expenses When making purchases and recording expenses related to generating Program Income, use the appropriate expense account the C&G Fund the specific Program Income CF1 F&A will be assessed on Program Income expenses at the award funded rate

Program Income Expenses Sample Accounting Entries Recording of the Salary Expense BU Account Fund Dept Prg Cd CF1 CF2 PC BU Project Activity Analysis Type Amount 10000 50210 30451 30001 - 2P1000 CPFLD GM100 10000012 01 ACT 100 Cash 00800 -100 Recording of the related overhead BU Account Fund Dept Prg Cd CF1 CF2 PC BU Project Activity Analysis Type Amount 10000 57990 30451 30001 80 2P1000 CPFLD GM100 10000012 01 SFA 50 57998 19933 00510 - OFA -50

Recording Program Income Revenue When recording Program Income, use ChartFields: Revenue Account 45050 (only for Program Income revenue) C&G Fund Program Income Attributed CF1 If you will bill customers for program income, work with BPS and the BFS BI/AR team to generate those invoices within PeopleSoft. BPS will create charge codes associated with a Program Income ChartString When the invoice is generated, Program Income revenue will be recorded Payments will be routed to and applied by BPS If you do not bill customers for Program Income, create a CDS entry using the Program Income ChartFields listed above

Program Income Revenue Sample Accounting Entries When an invoice is sent to the customer: BU Account Fund Dept Prg Cd CF1 CF2 PC BU Project Activity Analysis Type Amount 10000 12303 30451 30001 - GM100 10000012 01 300 45050 2P1000 CPFLD PRI -300 Cash 69995 00800 CDS entry, when there is no customer invoice : BU Account Fund Dept Prg Cd CF1 CF2 PC BU Project Activity Analysis Type Amount 10000 Cash 69995 00800 - 300 45050 30451 30001 2P1000 CPFLD GM100 10000012 01 PRI -300

Net Program Income The net of Program Income will be contributed to award activities either as additive or deductive, per sponsor requirements Use only Revenue Account 45050 to record Program Income Expenses incurred to earn the Program Income BU Account Fund Dept Prg Cd CF1 CF2 PC BU Project Activity Analysis Type Amount 10000 45050 30451 30001 2P1000 CPFLD GM100 10000012 01 PRI -300 50210 - ACT 100 57990 80 SFA 50 Net Program Income -150

Contracts & Grants Implementation Project http://controller.berkeley.edu/departments/contracts-grants-accounting contractsgrants@berkeley.edu