1. RAP Conference SPSS Hot Topics Tracy Wayman - twayman@jhu.edutwayman@jhu.edu Claudia Borsella - cborsella@jhu.edu cborsella@jhu.edu Anthony Tosheff - atosheff@jhu.eduatosheff@jhu.edu

2. SPSS Hot Topics 2 Subaccounts Encumbrances Receipt Tax GR/IR

3. SPSS Hot Topics 3 GR/IR

4. GR/IR Cleanup 4 GR/IR = Goods Receipt/Invoice Receipt Prior to September 1, 2009 a 3 way match was required – PO = Goods Receipt = Invoice Receipt o Grant was expensed at the time of the goods receipt On September 1, 2009 a 2 Way Goods Receipt Policy went into effect for POs with a total value of less than $2,500 – PO = Invoice Receipt o Grant is expensed at the time of invoice receipt by Accounts Payable

5. GR/IR Cleanup 5 GR/IR discrepancies occur when: – No invoice receipt is entered

6. GR/IR Cleanup 6 GR/IR discrepancies occur when: – GR and IR do not equal

7. GR/IR Cleanup 7 GR/IR discrepancies occur when: – Goods were returned to vendor and a Credit Memo was issued – Credit Memos are posted to the PO but not to the grant

8. GR/IR Cleanup 8 SPSS contacts FSA to correct the PO – Correction is a 48xx FI doc/54xx RefDoc – Correction (in most cases) is a CREDIT to the grant To cleanup the discrepancy, SPSS will: – Open the grant – Contact FSA to process – Reverse cost over-run NPCTs (if applicable) – Revise the FSR – Refund the balance For current awards, we check for GR/IR discrepancies prior to submitting to Sponsor SPSS has cleaned up $2,326,246 since November 2013 FSA developed a GR/IR Dashboard to assist Departments in identifying issues – DBOs already have access SAP Transaction ZMR11

9. SPSS Hot Topics 9 GR/IR Questions Subaccounts

10. Subaccounts Currently, a majority of JHU Letter of Credit (LOC) grants issued from U.S. Department of Health and Human Services (DHHS) use Payment Management System’s (PMS) pooled accounts to receive funds. With the LOC pooled accounts JHU sums all of our DHHS LOC grants and makes one large drawdown of funds from DHHS daily NIH is transitioning to PMS subaccounts in response to a DHHS directive to Agencies intended to enhance financial data integrity and financial closeout for all awards. – http://grants.nih.gov/grants/payment/faqs.htm#3781 http://grants.nih.gov/grants/payment/faqs.htm#3781 – http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-120.html http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-120.html With the LOC subaccounts JHU will drawdown on each individual DHHS grant daily Subaccounts have already been used: – ARRA Awards (American Recovery and Reinvestment Act of 2009 ) – Centers for Disease Control (CDC) started issuing subaccounts since August 1 st, 2013 – All other DHHS Agencies for all New and Competing Segments since October 1 st, 2013 – As of November 5 th, 2014 active subaccounts: JHU: 356 / SOM 253 10

11. Subaccounts: Is my grant using subaccounts already? 11 NGA-Section 1 (normally page 3) SAP, GMGrantD, Billing Tab

12. Subaccounts: How does it affect my grants? 12 INCREASE MONITORING CLOSEOUT OF GRANTS TRANSITION OF REMAINING GRANTS

13. Subaccounts: Increased Monitoring Grants Management Specialist (GMS) will have the ability to see the daily drawdown through PMS. The amount disbursed should be equal to the expenses in SAP, unless the expense exceeds the SAP Grant Value (authorized minus restricted balances). In those cases, the disbursed would be the SAP Grant Value. This will allow the GMS to see your rate of spending. There have been cases, mainly with ARRA grants, where the GMS has contacted JHU about slow and fast spending. 13

14. Subaccounts: Closeout of Grants In an effort to promote more timely financial closeout of awards, PMS will now hold payment requests for funds in subaccounts for awards that are 90 days or more beyond the project period end date. Funds requests for these awards will not be processed unless, and until, the awarding Agency has approved the payment request. (Notice Number: NOT-OD-13-120) 90 days means, 90 days, not 3 months!!! When closing out awards, must take into account that day 90 can fall on a weekends or holiday. Awards should be ready to be closed in SAP by day 86. 14

15. Subaccounts: 90 Day Countdown The R01 ends on June 30th The 90 day countdown begins for allowable expenses to be drawn down before September 29 th The R01 ends on June 30th The 90 day countdown begins for allowable expenses to be drawn down before September 29 th 15 2 pm a $100 supply charge is applied to the grant 11:30 pm LOC revenue program creates a receivable for $100 10 am JHU draws $100 of cash from DHHS 11:30 pm LOC revenue program creates a receivable for $62 5 am the $62 in F&A is applied to the grant 10 am JHU draws $62 of cash from DHHS September 27th September 28th September 29th

16. Subaccounts: Transition of Remaining Grants The transition from the pooled accounts to the subaccounts started October 1 st, 2013 and will end September 30 th, 2016. All new / competing grants have and will be given subaccounts. Beginning October 1 st, 2015, all remaining grants that have not been issued a subaccount will be issued a new segment period with their NGA. “Administratively Shortened” 16 GFYAward ID Budget End Project End Doc Pd. PMS Accounts 131R01CA123456-017/31/147/31/18APooled 145R01CA123456-027/31/157/31/18APooled 155R01CA123456-037/31/16 APooled 164R01CA123456-047/31/177/31/18BSubaccount 175R01CA123456-057/31/18 BSubaccount Progress report submitted and reviewed as a type 5. At time of release of the FY16 award, system converts the type 5 to a type 4 and increases document number. When the FY16 year award is issued, the project period end date is changed to match budget period end date. This makes the FFR expenditure data for this year the final FFR expenditure data and allows NIH to close the accounting record in the old system. Final Invention Statement and Final Progress Report not required at this time.

17. Subaccounts: Transition of Remaining Grants No Cost Extensions (NCE): If an award receives an NCE in GFY 14 or 15 for the final year of the segment, no new segment will be issued and the grant will stay in the pooled account. Carryover Authority: Carryover is treated as it has always been. – Carryover funds will be moved to the new subaccount upon acceptance of the FFR – A SNAP grant will now be reviewed by GMS in GFY 16 (for GFY 15 expenses) via a new FFR – If the unobligated balance is in excess of the 25% of total authorized amount for the budget period and the GMS may request additional information from the grantee as part of their review. If the GMS determines that some or all of the unobligated funds are not necessary to complete the project, the GMS may restrict the grantee’s authority to automatically carry over unobligated balances in the future, use the balance to reduce or offset NIH funding for a subsequent budget period, or use a combination of these actions. The GMS’s decision about the disposition of the reported unobligated balance will be reflected in the terms and conditions of the NGA. Unliquidated Obligations: Unliquidated obligations can be reported on final FFR if the FFR is now a final because it was administratively shortened to issue subaccounts. 17

18. Subaccounts: Transition of Remaining Grants Grants that will be ending their segment early: – JHU 293 – SOM 217 SNAP grants that will need an early extra FFR between, October 1, 2015 to September 30, 2016: – JHU 207 – SOM 165 18 SOM DepartmentSNAP Non- SNAP TotalSOM DepartmentSNAP Non- SNAP Total Anesthesiology404Neuroscience8210 Basic Science Institute011Oncology9514 Biological Chemistry314Ophthalmology606 Biomedical Engineering707Orthopaedic Surgery303 Biophysics202Otolaryngology628 Brain Sciences Institute202Pathology9211 Cell Biology101Pediatrics7714 Comparative Medicine213Pharmacology415 Department of Medicine321648Physiology101 Dermatology101PM&R202 Gynecology/Obstetrics202Psychiatry12113 ICE314Radiation Oncology112 Medical Genetics527Radiology10111 Molecular Biology/Genetics516SOM ICTR Inst Clin Tran.Resrch044 Neurology13316Surgery505

19. SPSS Hot Topics 19 Subaccounts Questions Encumbrances

20. Encumbrances – Who do I contact to help remove them???? Contact Payroll Shared Services at payroll@jhu.edu with salary, fellowship and associated fringe issuespayroll@jhu.edu – remember a pending e-form could be causing the encumbrance Contact Purchasing Shared Services at POMaintenance@jhu.edu with purchase orders issuesPOMaintenance@jhu.edu – PO Maintenance will ask 5 questions about the encumbrance 1.Purchase Order / Shopping Care Number 2.Vendor Name 3.Vendor Number 4.Information that NO further confirmations or invoices are expected 5.Reason why the encumbrance needs to be removed Contact the Delegate Buyer with sub-award issues Contact Compliance Shared Services at compliance@jhu.edu with non-payroll cost transfer issuescompliance@jhu.edu – Be sure the Journal Transfer has been either posted or deleted. In an e-mail request, please supply the Journal Transfer ID number, and the Document number (normally starts with a 2 or 7). Contact Sponsored Projects Shared Services at sponsoredprojectsQC@jhu.edu with stale travel, fringe and F&A issuessponsoredprojectsQC@jhu.edu – For travel encumbrances provide the Trip number, the Personnel number with their name(s), and the Internal Order Number – For stale fringe encumbrances provided the personnel number and the Internal Order Number 20

21. SPSS Hot Topics 21 Encumbrances Questions Receipt Tax

22. Commercial Contract Receipt Tax On Commercial Contracts, such as Clinical Trials, SOM uses the Receipt Tax to recover F&A Typical awards recover F&A calculated off the Modified Total Direct Cost (MTDC) – Total Direct Cost (TDC) minus Exclusion equals MTDC – MTDC multiplied by the F&A Rate equals the F&A Expense – F&A Expense is calculated nightly Receipt Tax is calculated off the Billed Revenue and not MTDC – Billed Revenue is the combination of Cash Collected and Open Receivables on an award – Billed Revenue multiplied by the Receipt Tax Rate equals Receipt Tax – Receipt Tax is calculated on the day a month closes (4 or 5 days after the end of the calendar month) 22 A grant has $11,194 of MTDC with a F&A Rate of 34%, F&A Expense would be $3,806 and Total Costs would be $15,000 A Clinical Trial has $15,000 of Billed Revenue with a Receipt Tax of 25.37%, Receipt Tax would be $3,806 and TDC of $11,194

23. Commercial Contract Receipt Tax MTDC X (1 + F&A Rate) = Total Cost $11,194 X (1.34) = $15,000 Total Cost / (1 + F&A Rate) = MTDC $15,000 / 1.34 = $11,194 Take the F&A Rate divided by 1 plus the F&A Rate If the F&A Rate is 34%: 0.34 / 1.34 = 25.37% Total Cost multiplied by Receipt Tax Rate equals Receipt Tax $15,000 X 25.37% = $3,806 Total Cost minus Receipt Tax equals TDC $15,000 - $3,806 = $11,194 23 SO HOW DO I FIGURE OUT THE RECEIPT TAX RATE?????

24. Commercial Contract Receipt Tax TDC TDC F&A RateReceipt Tax RateF&A FunctionCampus 72.00%41.86%Organized ResearchOn 62.00%38.27%Organized ResearchOn 34.00%25.37%Organized ResearchOff 26.00%20.63%Organized ResearchOff 21.00%17.35%Other Sp. ActivityOff 24 MTDC MTDC F&A RateReceipt Tax RateF&A FunctionCampus 72.00%38.73%Organized ResearchOn 62.00%38.27%Organized ResearchOn 33.00%22.42%Organized ResearchOff 26.00%17.36%Organized ResearchOff

25. SPSS Hot Topics 25 Receipt Tax Questions Useful Reports

26. Useful Reports / Transactions SAP – Display Grant Master: GMGrantD – Display Sponsored Program: GMProgram – Master Data Index for Grant: S_ALN_01000079 BW – Rev/Exp Summary Report – GM Actuals – Summary of Gross Salary Combined – Award Information 26

27. SPSS Hot Topics 27 Questions