1. Award Acceptance and Account Set-Up
Sponsored Programs at Penn
Award Acceptance and Account Set-Up

2. Advance Accounts What is an Advance Account?
Use when high probability of award
Allows you to put charges on proper account
Avoid journal entries and payroll reallocations
Use with pre-award costs under expanded authorities
Easy to request
Link to Advance Account Request form located on ORS’ home page
SOM - Advance Accounts are approved and set up by ORSS
All other schools - forward request to ORS

3. Advance Accounts (cont.)
Risks
Award may not materialize
Start date may be delayed
Not all sponsors allow “Pre-award” expenditures
Establish follow up routine
Has award materialized?
Is something holding it up?
3 month limit on advance accounts

4. What is a Notice of Award (NOA)?
An official written communication from a sponsor providing financial support for a proposed sponsored project

5. What is Contained in a Notice of Award
General & Special T&C
Use of Animals/Human Subjects
Use of Interest Income
Use of Program Income
Reporting requirements
Programmatic
Financial
Property
Invention
PI Name
Dates of Performance
Current budget period
Total project period
Dollars
Direct, F&A
Current, project total
Cost Sharing
Contact information

6. Account Set-Up

7. in BEN Financials & Sent
Account Set-Up
Notice of Award
(NOA)
Received
Status
Changed From
Proposal To Award
Fund Attributes
Fund Parents
Special Budgets
Account Segments
Assigned in
PennERA & Sent to GL
Fund & Legacy
Number Created
in BEN Financials & Sent
to PennERA
AIS is
Generated

8. Funds and Accounts
New Funds are created for each year of the award when carryover of money from one year to the next must be approved by the Sponsor
New funds are also required when the F&A changes from one segment to another
Subaccounts are to be requested on the subaccount worksheet

9. Receiving the Award and the Account Information Sheet (AIS)

10. Reviewing the AIS and the NOGA
Ensure Account End Dates Accurate (budget end or project end?)
Ensure Award on AIS matches Award on NOGA
Ensure FDP and/or SNAP
Ensure accuracy of F&A rate
Ensure proper PI name and Org#
If the AIS is for a continuation year, always check for budget periods funded with prior unobligated funds.
Refer to Sample AIS and NOGA

11. Review the Award AIS is not substitute for award
Review terms and conditions of award
Sponsor guidelines
Restrictions

12. Subcontract Process Two Scenarios
Notice of Award arrives with subcontract included
ORS contacts BA to verify subcontract information
BA notifies ORS subcontract needed/requested
Sponsor approval may be required
BA/PI prepares subcontract request form
ORS completes subrecipient monitoring, prepares subcontract & sends to subrecipient
Subrecipient signs & returns
ORS sends to BA
Cover letter
Signed agreement
Guidelines for BEN Financials Purchase Orders & Sponsored Program Subcontracts (BEN MEMO)
BA sets up Purchase Order
pam

13. Subrecipient Monitoring
A-133 report or audited financial statements required annually
Current F&A rate agreement
Risk Assessment – results indicate appropriate subcontract terms and conditions
pam

14. Subcontract Process (cont.)
PI & BA manage subrecipient invoices
PI & BA manage subrecipient activities
PI must determine if work is satisfactory and approve payment
Establish strong lines of communication with contact at other institution
pam

15. Establishing Subcontract in BEN Financials
Department verifies Supplier (Subcontractee) information is in BEN Buys
Supplier Name & Site
Confirm available funds & that subcontract OBJC’s have been budgeted correctly
OBJC 5332 (up to $25,000 charged F&A)
OBJC 5333 (over $25,000 no F&A charged)
paul

16. Establishing Subcontract in BEN Financials (cont.)
Generate a Purchase Order (PO)
Executing a requisition in BEN Buys
Provide Sole Source Justification
An approved requisition will generate a PO
PO approval follows normal PO hierarchy
Manage PO
All subcontract payments to supplier must be approved by responsible PO Manager
“On-line receipts” required for all subcontract PO’s
Use “Receipt Required” field for PO’s less than $5,000
paul

17. Reference Documents
Guidelines for BEN Financials Purchase Orders & Sponsored Program Subcontracts
Requisitioner User Guide & PO Manager User Guide
Requisitioner User Guide
Creating a Requisition
Entering Receipts
PO Manager User Guide
Managing the PO
Viewing Invoices
paul

18. The FDP Federal Demonstration Partnership
is a cooperative initiative among federal agencies and institutional recipients of federal funds. It was established to increase research productivity by streamlining the administrative process and minimizing the administrative burden on principal investigators while maintaining effective stewardship of federal funds. 
Penn is a participating institution
Many of the recommendations of the FDP have been included
in expanded authorities.

19. Carryover Authority & SNAP
Generally R’s, K’s and P01’s, but always check the Notice of Grant Award.
SNAP
Streamlined Non-competing Award Process
Generally R’s, K’s
A grant must have carryover authority if it is under SNAP

20. Importance of Expanded Authorities/FDP
Allows some administrative privileges authorized by A-110:
Automatic carryover of unobligated balances across budget periods and competitive segments (except when noted in the Award)
Up to one year no cost extension if requested 10 days prior to end of budget period (to complete project & not spend the $)

21. Importance of Expanded Authorities/FDP
Waive most cost related and administrative “prior approvals” except:
Change in scope or objective of the project
Change in key personnel
Requests for additional funding
Other exceptions as noted
Allows for 90 day Pre-award startup costs

22. Remember!
At Penn, grants with automatic carryover retain same fund # for the entire segment.
An exception to this rule is subcontracts.
All grants without automatic carryover receive a new fund # every new budget period.
Understanding this most basic concept helps you understand when a fund # should expire, require a closeout, or when an advance account may be needed as the project continues.
IT IS VITAL TO UNDERSTAND THIS!!!!
more on advance accounts in a later session

23. Basic Terms to Know MTDC PBIL and PBUD FSRD and FSRI
Revenue Recognition
PBIL and PBUD
FSRD and FSRI
Operating Budget
Object Code 1220 Receivable
Adjustment Period
MTDC
Encumbrance/Unliquidated Obligation
Unobligated Balance
Letter of Credit

24. WHAT’S WRONG WITH CHARGING AN INDIRECT COST DIRECTLY TO THE GRANT ?
Revenue Recognition
Revenue
Our entitlement to be reimbursed by the sponsor for the allowable expenditures of the grant
An equal $ of Revenue is recognized for every $ of allowable expense in object code 4600 Grant Revenue
Unallowable expenses and expenses above the award amount do not recognize revenue
Revenue does not necessarily reflect the cash received from the sponsor
WHAT’S WRONG WITH CHARGING AN INDIRECT COST DIRECTLY TO THE GRANT ?

25. Other Potential Sources of Revenue on a Grant Fund
University Funded Cost Sharing - Object Code 4822
TIF (Interest) Income - Object Code 4780
Program Income - Object Code 4620
In the end
(at closeout and disablement of the fund),
all sources of Revenue must equal Total Expense.

26. Grant Receivables (Object Code 1220)
As payments are received from the sponsor, the Receivable decreases (a credit)
As Revenue is recognized (a credit), the Receivable increases (a debit)
Positive Receivable: Expenditures > Cash Received
Negative Receivable: Cash Received > Expenditures

27. Grant Receivables (Object Code 1220)
LOC
Letter of Credit funds have a zero receivable. The actual receivable resides in a special holding fund for all funds under the specific LOC.

28. Special Object Codes (entered by Research Services)
PBIL - The Maximum Billable Award
PBUD - Authorized Project Budget
FSRD - The Total Direct Costs reported to the sponsor
FSRI - The Total Indirect Costs reported to the sponsor

29. More on PBIL
PBIL
Serves as the control and limits revenue recognition up to award amount
Gets reduced to reported amount and guarantees that revenue recognition above reported amount does not occur
Will always be rounded to nearest dollar. Cents will only show if there has been a carryover of funding from a previous fund (increase) or has been adjusted to the reported amount (decrease)

30. More on PBUD
PBUD
Most often equal to PBIL except on advance accounts

31. Operating Budget (Entered by Administrator)

32. Unliquidated Obligations/ Unobligated Balance
Commitments of the budget period not yet paid
When reported funding gets reserved in the next budget period so they can be paid
Must liquidate within 90 days (A-110)
Can not be reported in the final period
Unobligated Balance
unspent and uncommitted
may be able to carryover automatically or with approval

33. Questions???