CAHNR Business Office Hot Audit Topics Darshana Sonpal May 9, 2017 College of Agriculture, Health and Natural Resources

Effort Reporting What is effort? Effort is the portion of time spent on a particular activity, expressed as a percentage of the individual's total activity for the university. What is effort reporting? Effort reporting is a process to verify salary charged to or cost shared on a sponsored project It is the University’s method of certifying to the granting agencies that the effort promised as a condition of the award has actually been delivered. Effort reporting is required by Uniform Guidance The Effort Reporting System is frequently audited Failure to meet these requirements puts the University at risk for significant penalties 2 College of Agriculture, Health and Natural Resources

Effort commitment promised to a sponsor (as part of the proposal) for PI, Co-PI and key personnel are tracked by SPS These are available for your review in the Effort Reporting & Commitments (ERC) application. This application allows for: Changes to commitments by using the Commitment Change Form Reviewing of cost share and paid commitments Effort reporting deadlines 3 College of Agriculture, Health and Natural Resources

Top 5 Takeaways on Effort Reporting - Know your present commitments & availability for further commitments - Keep your fiscal person informed - Do not over commit cost share - If you have a change in commitments, please submit commitment change form through ERC (may require rebudgeting and prior sponsor approval) - Plan ahead Note: Summer salaries will now have a special object code 5232 and must be identified in the special payroll authorization for accurate reflection of effort on grants (applies to faculty and grads) - No cost extension does not mean no effort - 1% effort rule only applies to federal grants 4 College of Agriculture, Health and Natural Resources

Questions on Effort Reporting? Pre-award – Contact Nancy Abbott or James Hurd Post award – Business office SPS – Kristin Winot/Matthew Cahill/Shawn Detoro/Beverly Dauphinais Google “UConn ERC help” http://research.uconn.edu/sps-awards/effort-reporting/erc-help/ Commitments by Session (Fall, Spring and Summer) 5 College of Agriculture, Health and Natural Resources

Internal Billing Internal Billing also referred to as “IB” is used to bill for goods or services provided by one university department to another university department, reflecting income to the provider and expense to the customer Key questions to ask Is the service provided by a person or a Center? Is the person providing the service an employee of Uconn? Appropriate Method depending on the answers If the Center is providing a service to a grant and not the NOT the individual, then an internal bill (IB) seems an appropriate method. We just need to make sure that the center is approved by Cost Accounting. If the individual is the key to the service and not the Center, the individual needs to paid from the grant to appropriately reflect effort and payroll expenditures. 6 College of Agriculture, Health and Natural Resources

Takeaway on Internal Billing -Make sure that the service from another department is correctly budgeted in your grant proposal -Keep your fiscal person informed -If the service is by an Uconn employee, coding on grant MUST be via PAYROLL -If the employee is not critical to the service, the Center MUST be approved before billing the grant -Plan ahead 7 College of Agriculture, Health and Natural Resources

Cash Handling College of Agriculture, Health and Natural Resources Separation of Duties The one who collects cash MUST NOT be the one recording it in the Kuali system Safeguarding Cash Cash collected if not deposited within 24 hours (if under $500), must be kept in a locked safe Tracking A numbered receipt must be given out for cash collection in person; cash must be recorded in the books (Kuali) on the day of the receipt, regardless of the amount and whether deposited in the bank or not Timely deposits Mail should be opened daily to identify checks coming thru mail. Checks should be processed upon receipt in the following manner: Stamp with date received Record in an incoming check log Deposit using the remote deposit system on the day received Management Management must Check that proper procedures are in place Make sure that every person who handles cash has the cash training Provide a safe deposit/ or a safe location to safeguard cash  College of Agriculture, Health and Natural Resources

Takeaway on Cash handling -Cash Training is a MUST (done annually) -Cash must be deposited within 24 hours if over $500 -Backup must be attached to the deposit document in Kuali (please provide detailed description);log required -Separation of duties is critical -Numbered receipt is necessary for in person cash payment 9 College of Agriculture, Health and Natural Resources

Grant Closeouts College of Agriculture, Health and Natural Resources 3 months Prior to Your Grant End Date Review your current expenses, encumbrances and available balance If you see a high balance available -Compare your budget with expenses. Are you missing anything? -Make sure all invoices have come through (including internal bills) -Process travel reimbursements, if any -Check your sub-awards: Have all invoices been paid? Do you need a no-cost extension? Make request to SPS with an on-line Extension Request Form If you see a deficit -Unencumber Purchase orders if not needed -Move expenses out if not part of budget (cost transfers and PA recoding may be required) College of Agriculture, Health and Natural Resources

Takeaway on Grant Close-out process -Plan ahead -If you see too much funds available, ask why? -If you see a deficit, be prepared to move the expenses out (watch out for charges that may not belong to you) -Verify effort committed vs. actual effort are aligned -If in doubt, reach out for help 11 College of Agriculture, Health and Natural Resources

Appropriate Use of Funds What are Ledger 2 funds? -State funded -2.5% rule applies -Ends June 30 What are 4 Ledger funds? - Could be revolving accounts(funded by revenue), IDC or project account - Funds can be carried one year to the next What are Smith lever funds? - Block grant from federal govt. as we are a land grant university - Ends September 30 - Special rules apply College of Agriculture, Health and Natural Resources

Questions to ask when coding an expense Where was this expenditure coded last year? Consistency is critical Is this expense for extension and outreach? Example: (Food - watch out!!!) Is this equipment solely used for extension and outreach? Example: Hexocopter/Clicker Yes: Use of Smith Lever special allocation may be ok (check with your Dept. Head and fiscal person) No: Other accounts (2L or 4L) or partial coding on Smith Lever with valid justification Will this expense generate any revenue? Yes: Use of Smith Lever funds not allowed No: Use of Smith Lever might be allowed based on the justification Is this expense advertisement for the sponsor? No: Smith Lever not allowed College of Agriculture, Health and Natural Resources

Other important information HCM CORE interprets leave in 3 categories; short term, long term and overtime& comp (short term in not mandatory) 14 College of Agriculture, Health and Natural Resources

Other important information It is important to have the right supervisor ID in CORE CT 15 College of Agriculture, Health and Natural Resources

Other important information If you have soft funded employees on your grant, you MUST notify your department right away if there is a possibility of funds running out (employee may require notification “x” number of months prior to the grant end date) 16 College of Agriculture, Health and Natural Resources

Questions? 17 College of Agriculture, Health and Natural Resources