Project Monitoring Expenditure Review to Closeout Aimee Howell UMBC Office of Contract and Grant Accounting Tamara Lucas University of Maryland School of Medicine Departments of Pathology and Medical & Research Technology

Monitoring Rate of Expenditures – Excessive spending near the end of project – Unexpended funds at the end of project Request for Carryforward Subawards Cost Sharing Overspending 2

It all begins with the Budget Remember your cost principles – Reasonable – Allowable – Allocable Budget Justification 3

Documenting Expenditures Direct benefit Source documentation Receipts with enough detail to support the charge Written explanation of HOW the expense benefitted the project 4

Reconciliation Ask are expenses: – What you expect – In line with budget – Needed to be removed – Within Period of Performance How often – Monthly, quarterly? 5

Cost Transfers A cost that is originally placed on an account is certified for allowability, allocability tests and direct benefit to a project A cost transfer invalidates that original certification 6

Transfers…What’s the problem? Inadequate explanation/justification for cost transfer (e.g., “to correct error”) auditors love this Transfers between two Federal projects that clears a deficit off one of the projects Salary transfers (think of the implication on effort reporting) 7

Budget Revisions Change in – Scope – Key Personnel – PI effort Identify need for – Subawards – Equipment – Re-budgeting No Cost Extensions 8

Closeout Reaching the termination date of a project does not signal the end of institutional responsibilities. – Adjustments to project costs can be made after termination and audit – Records must be maintained for a minimum of three years. (State, institutional or contract terms may be longer). Keeping things longer can be risky 9

Sequestration – Expenditure rate – Timely invoicing ARRA funding – September 30, 2013 completion Super “OMNI” Circular 10

Questions/Comments! 11

Aimee Howell (410) Tamara Lucas (410)