I have a Grant, Now What??! John Hulvey Office of Sponsored Programs Administration and Accounting

What we will Cover Today:  Understanding the Basics  Common Misconceptions  What happens when an award is issued  Roles of the Principal Investigator (PI)  Avoiding problems  What information is available to help  Questions

Vocabulary  Department ID = Org. Code = Grant number.  Account # = Expenditure Code  PI = Principal Investigator  Facilities and Administration (F&A) = “Overhead” or Indirect Costs (IDC)  Matching = Cost Sharing

Common Misconceptions  All sponsored program awards are “Grants” Also Cooperative Agreements and Contracts Also Cooperative Agreements and Contracts This is important because different rules apply This is important because different rules apply  PI has full control over funds JMU Policy 2201 states “All funds received for sponsored programs are under the fiscal control of the assistant VP for Finance” JMU Policy 2201 states “All funds received for sponsored programs are under the fiscal control of the assistant VP for Finance” Some awards allow PI flexibility on how funds are used, but don’t start with that assumption. Some awards allow PI flexibility on how funds are used, but don’t start with that assumption.

More Common Misconceptions  JMU receives ‘cash’ with an award Most awards are issued on a ‘reimbursement basis’ Most awards are issued on a ‘reimbursement basis’ Sponsor can refuse to reimburse unallowable expenses. Sponsor can refuse to reimburse unallowable expenses.  Because I have outlined expenditures in the grant, travel authorizations and other payment paperwork are not necessary. WRONG WRONG

What happens when Sponsored Programs Accounting receives an award?  Establish Financial Framework 5xxxxx Dept ID(s); 5xxxxx Dept ID(s); Load the budget based on the budget approved in the award; Load the budget based on the budget approved in the award; Mail “Award Binder” Mail “Award Binder”  Note regulatory requirements  Document Billing timing and requirements  Document Close-out date

What Rules Apply? 1) Award document May include references to specific State or Federal regulations May include references to specific State or Federal regulations 2) University policies 3) State regulations 4) Federal regulations  Nothing can contradict Federal Law.  Always follow JMU procedures

8 I have the grant, now what’s going to happen!?

What is in the Award Binder?  Provides Grant # (or Dept ID or Org #)  Contents Signature authorization instructions Signature authorization instructions PS & eVA Access information PS & eVA Access information Small Purchase Charge Card information Small Purchase Charge Card information Internal budget form Internal budget form  Dividers Includes your proposal & award documents Includes your proposal & award documents Insert your financial printouts & expenditure reconciliations Insert your financial printouts & expenditure reconciliations Quick find directories Quick find directories

What’s the Principal Investigator’s (PI’s) Role?  Person of many hats Researcher, Manager, Accountant. Researcher, Manager, Accountant.  Has DIRECT responsibility for Grant Must complete responsibilities of grant Must complete responsibilities of grant Must comply with all regulatory requirements Must comply with all regulatory requirements Must work within approved budget and timeline Must work within approved budget and timeline  May delegate workload

What Should I Know to Help a PI Manage an Award? 1) What is the approved budget? 2) What is the project period?  Both of those should be found in the award binder.  If the PI won’t provide these items, refuse to help them and send them to me if they have a problem with that. 3) Understand that the sponsor has expectations for how the funds are used.

How do I Manage the Award?  Follow the approved budget and budget justification. NOTE: Some sponsors are not as strict as others in terms of ‘following the budget’. You may contact Sponsored Programs Accounting to determine how much flexibility you have. NOTE: Some sponsors are not as strict as others in terms of ‘following the budget’. You may contact Sponsored Programs Accounting to determine how much flexibility you have. If you cannot tie an expenditure request to a budget line item, don’t process the request. If you cannot tie an expenditure request to a budget line item, don’t process the request.

How do I Manage the Award?  Work within the approved Project Period Most sponsors tract the project period Most sponsors tract the project period This date restriction applies to expenses BEFORE the award as well as after. This date restriction applies to expenses BEFORE the award as well as after. Most sponsors will allow “no-cost extensions”, but often require the request 30-days prior to the ending date. Most sponsors will allow “no-cost extensions”, but often require the request 30-days prior to the ending date. Close-out periods do NOT allow project work to continue. Close-out periods do NOT allow project work to continue. Time is for reporting and final processing.Time is for reporting and final processing.

How do I Manage the Sub- recipients?  VERY CLOSELY! New federal regulations (2 CFR – 332) require sub- recipient monitoring.  Must ensure they are following their approved budget and timeline  Must ensure they are completing their assigned work.  Their invoices should not be paid without adequate monitoring documented.

How are Changes Made?  Some (most?) projects require some adjustment in the budget or timeline.  Work with the Office of Sponsored Programs to modify the budget or extend the project  Must receive sponsor’s permission in advance of implementing any change

Cost Transfers  Defined as ‘moving an expense from one Department ID to another’. Use an Agency Transaction Voucher ATV Use an Agency Transaction Voucher ATV Transfer expenses INTO the grant Department ID – cannot move ‘cash’ OUT. Transfer expenses INTO the grant Department ID – cannot move ‘cash’ OUT.  Should only be used in limited situations

Cost Transfers – Continued  Cost Transfers should only be used for Personnel expenses or to correct errors  Sufficient documentation to track the expense detail will be required  Cost Transfers should be processed within 45 days from the time of the original expense posting.

What Records Must be Kept?  All expenditure documentation Including monthly reconciliation to 5xxxxx DeptID Including monthly reconciliation to 5xxxxx DeptID Personnel and Non-Personnel expenses must be tracked. Personnel and Non-Personnel expenses must be tracked.  Collect “matching” data (cost share)  Document time employees worked on the project. (Effort Reporting)  Document technical work from the project.

Record Retention  Financial records from the beginning of the award need to be maintained up to five (5) years FROM THE CLOSEOUT OF THE AWARD. (Binder might help with this). For multi-year awards, this could mean that financial records would be 7 to 10 years old. Example: Award ends 6/30/2015; final reports submitted 9/15/2015; record retention period ends 9/15/2020. If award began 7/1/2013, those transactions happened over 7 years earlier. For multi-year awards, this could mean that financial records would be 7 to 10 years old. Example: Award ends 6/30/2015; final reports submitted 9/15/2015; record retention period ends 9/15/2020. If award began 7/1/2013, those transactions happened over 7 years earlier. Some awards allow a 3-year period; if in doubt, use 5 years. Some awards allow a 3-year period; if in doubt, use 5 years.

How do I Avoid Problems Administering an Award?  FOLLOW THE AWARD BUDGET!  Follow JMU Fin Policies and Procedures  Reconcile the DeptID Monthly  Limit Cost Transfers (ATV’s) If required, process promptly  Complete work within the Project Period (may cross fiscal years) Request budget revisions or no-cost extensions early, as necessary Request budget revisions or no-cost extensions early, as necessary 90-day ‘close out period’ for paperwork only 90-day ‘close out period’ for paperwork only

Close-out  Can be considered the “fiscal year end” for the award  Generally a cause for rush and panic, and it should not be.  Make sure requests to “spend out” the budget are justified to the award and calculated correctly Calculate remaining balance on PARs Calculate remaining balance on PARs Remember that FICA tax is added to PAR for salary amounts. Remember that FICA tax is added to PAR for salary amounts.

What Resources Exist to Assist in Sponsored Project Administration?  Financial Reports: nVision “C” Report – “Life to Date” Totals with Current Month Details nVision “C” Report – “Life to Date” Totals with Current Month Details nVision “D” Report – Life to Date totals with Details by Individual line item (by month). nVision “D” Report – Life to Date totals with Details by Individual line item (by month). Monthly Detail Report Monthly Detail Report  nVision Query (by fiscal year)  Monthly reconciliation is a requirement

Sample “C” Report

Sample “D” Report - Monthly columns with activity by fiscal year: “2015-4” = October 2014; “ ” = May 2015

Where to Get More Information? (cont’d)  Contact Sponsored Programs Accounting John Hulvey John Hulvey Brenda Wilburn Brenda Wilburn Donna Crumpton Donna Crumpton Kyra Shiflet Kyra Shiflet

Questions?