Sponsored Programs at Penn Managing Project Expenses

Focus Points Award amount / F&A rate - Award amount +carryovers = PBIL - F&A rate correct - Periodically check both and monitor changes - Award restrictions Cost Share / Program Income - Cost share requirements should be met - Program income (additive or deductive) - Revenue entries should be timely Reporting and deliverables - Be mindful of financial and technical due dates Interest-bearing account - Can you spend or must it be returned Rebudgeting - Is it allowed; is there a threshold - Is prior approval required

Four Guiding Principles The concepts and principles associated with charging allowable costs to sponsored projects Specifically, there are four guiding principles or criteria used to determine whether a cost can be charged to a sponsored agreement. Is the cost - Allocable - Allowable - Reasonable - Treated Consistently To be charged to a sponsored agreement, charges must meet all four criteria These criteria apply for both direct and indirect (Facilities & Administrative) costs

Direct / Indirect Costs Direct Cost on a sponsored agreement is one that can be identified specifically with that sponsored project or that can be assigned to the sponsored project relatively easily Examples include but are not limited to: - Salaries and Wages (PI, Co-PI, Laboratory Staff) - Equipment - Lab Supplies - Travel Costs - Subcontract Costs Indirect Costs (referred to as Facilities & Administrative, or F&A) are those costs that are incurred for common or joint objectives and cannot be identified readily or specifically with a particular sponsored project Examples include: - Administrative/ Clerical Salaries - Maintenance Costs, Building & Equipment Depreciation - Supplies and services of a more general nature, such as office supplies, general and administrative copying and office/computer equipment

Managing Your Project Manage changes proactively Use proposal as “home-base” Monitor spending rates - Sponsor may question slow/accelerated spending rates Anticipate necessary changes - Contact ORS for approval - Get sponsor approval through ORS - Change of scope or effort Plan ahead for extensions - include ORS on extension requests ( pre & post award) Notify ORS of transfer of awards as soon as possible Utilize advances accounts & account continuations

Managing Effort Reporting The University utilizes an “After-the Fact” on-line web based effort reporting system (ERS) in which effort is certified after the effort has been expended Effort reports must be certified for university employees in the following categories - faculty, graduate students, and all administrative / professional staff who receive any portion of their salary from a sponsored project (required for Fall, Spring semesters; some faculty may have Summer Effort Report) - non-exempt permanent weekly paid staff on sponsored projects (required for quarters ending Sept.30, Dec. 31, Mar. 31 and June 30) Effort reports must be certified within 45 business days following the day they are available in ERS. Adjustments to closed effort reporting periods must be reviewed/approved by Post Award. The PI or the BA on behalf of the PI will review and certify that the effort has been properly allocated prior to the certification deadline date

Monitoring Your Award Review all expenses and cost transfers and ensure properly documented Monitor subcontracts – Confirm amounts & work done Review each invoice (SPP #2131, #2135 Sub-recipient Monitoring Policies) Remove unallowable and wayward expenses Monitor spending / address overdrafts Manage changes appropriately within the system -changes in subcontracts and equipment may affect F&A

Retaining Documents Federal Sponsors: In general, records must be retained for a period of seven years from the date of submission of the final Financial Status Report to the sponsor. Non-Federal Sponsors: Records should be retained following the same guidelines required by Federal sponsors, unless the terms of the agreement specify otherwise. **If a department or school is uncertain as to whether or not the record retention requirements have been satisfied, the records should not be destroyed without the advice and consent of Research Services

In Summary Funds must be reviewed on a regular basis Communication is vital to the proper management of the award When you are not sure, investigate and ask questions Managing sponsored projects is a collaborative task, ORS is your friend If an award is properly managed, the closeout process is simple Mitigating audit risks and eliminating findings is our goal