UGA Restricted Account Management and Closeout May 10th, 2007

Session Objectives Improve communication between Contracts & Grants and Business Managers / Departmental Administrators concerning effective account management and closeout procedures. Identify central and departmental issues that delay preparation of financial reporting and closeout. Discuss best practices to minimize delays Share examples of closeout procedures and documents

Your Restricted Accounts How can I manage my accounts more effectively? Who benefits from good account management? Why do I need to know how to read the account status report? What’s with the strict deadlines? When do I need to have everything in? Where do I go if I need help?

Knowing how to read the account status reports Cash Position (above double lines) A5 Budget – Expenses – Balance (below double lines) Are Facilities & Administration Costs (F&A) calculating correctly? How much do I have left to spend?

Is IDC calculating correctly? UGA Expenses 204, D3 UGARF Portion 14, D4 Total Expenses 218, Less F&A 65, E7 Total Direct Costs 153, Less Equipment 10, E6 Modified TDC 142, Multiplied by F&A%.457 Verified F&A 65,232.72

Example of rebudgeting operating expense into equipment 5, Amount moving into equipment from operating X.457 F&A rate 2, Total F&A to be rebudgeted 2,285 / , direct costs F&A - You’ll have $1, more to spend on the account!

How much money is left to spend on my account? Total Budget 302, B1+B10 Less Total Expenses 218, D3+D4 Total left to spend 84, Less F&A 26, Total Direct Charges left to spend on account 57, (84, / 1.457)

How much money do I have to move off my account? Total Expenses 304, Less Total Budget 302, Total amount overbudget 2, Less F&A Total Direct Charges to move off account 1, (2, / 1.457)

Monitoring Cost Share When BA is first received, check to see if any cost share needs to be done. Check budget to identify exact charges needed to be cost shared. Create personnel setting up % of salary to post to cost share account. “GIT-R-DONE” early.

Monitor Unallowable object codes – Overtime – Entertainment – General Office Supplies – Postage – Cellular

Other Items Transfer any unrelated expenses timely (<90 days) Apply for No-Cost extensions on time Process Award Pendings if you expect an extension or more funding on an award.

Account Closeout 90 days for most Federal Grants 90 day, 60 day, 45 day, 30 day, 15 day finals or as specified in the award document. 60 days for all other unspecified final invoices.

Purchasing at the end of the project Pay attention to month end / year end deadlines. sh.pdf sh.pdf Equipment purchased in last 90 days.

JVs and PARs Fax copy of JV or PAR that has not posted JVs over 90 days need PIs signature JVs can’t be done for charges over 1 year old PARs can only go back one year If overdrafted, be careful in moving charges to another restricted account. (Must benefit account).

Justification on Cost Transfers Appropriate justification entails: - When the error was discovered - What the charge was for - Why the charge was incorrectly made - How it specifically relates to the restricted account to which it will be transferred.

Obligations All obligations need to be zeroed out Provide invoices / PARs for charges not yet posted Contact the Travel & Encumbrances section of Accounts Payable to deobligate all outstanding obligations.

Budget Contract & Grants will take care of down budgeting all unspent funds. Department needs to down budget 51110, 51111, 51112, & object codes.

Fixed Price Agreements If there are funds left over in a fixed price agreement, department needs to submit a Residual Balance Form to Sponsored Programs. ual%20balance%20request.doc ual%20balance%20request.doc After RBF is submitted and approved, if the balance is >$500 account will be extended for two years and if <$500 the remaining funds will be moved into the departmental 950 account.

Other clean up items confirmation (including final amount) for account to be closed. No charges posted after the ending date unless previously obligated, i.e. bi-weekly pay Move off charges that have posted after the final report is completed. Zero out account by 120 days

How can we help? Office of Sponsored Programs Extensions Additional Funding OMB Exceptions Rebudgeting

How can we help? Contracts & Grants Questions regarding account status reports Verification of indirect costs Justification for computers Allowable / Unallowable expenses s/ s/

Summary Check F&A regularly Monitor required cost share Remember the agency’s deadlines Make sure charges / PARs / JVs that post at the end of the grant, benefit the project. Feel free to contact us with any questions.

Contact Information Brad Langford Senior Accountant Contracts & Grants Division