Post Award Administration from LSA Finance’s Perspective

February 3, 2016

Presenters: Tasha Allan

Stacey McDowell

Program Objectives

Understand the Business Analyst’s typical post award involvement Understand the College’s viewpoint on certain Post Award functions Understand certain College Best Practices that pertain to post

award

Financial Monitoring of Projects

Fiscal Responsibilities / Financial Stewardship

“It is the responsibility of every faculty and staff member who is involved with any financial activity on behalf of the University to be fiscally responsible and to exercise appropriate financial controls…”

http://spg.umich.edu/pdf/500.01.pdf

http://hr.umich.edu/stewardship.html#2

Financial Monitoring of Projects

What is Financial Oversight?

Supervision of financial practices and policy implementation

Review and monitor financial transactions and reports

Four main elements of fiscal responsibility include:

Budget Planning (e.g. proposal planning, re-budgeting)

Reconciliation

Internal Controls

Financial Management

Financial Monitoring of Projects

Budget Planning

Process of forecasting what the anticipated revenues and expenses will be for a period of time.

Reconciliation

Matching and comparing transactions in the financial ledgers to receipts and other documentation, in order to ensure they are valid and accurate

Internal Control

SPG states, that internal controls are “a coordinated set of policies and procedures used by managers to ensure that their units operate efficiently and effectively in conformance with applicable policies, regulations and laws.”

Financial Monitoring of Projects Financial Management

Oversight on how funds are spent and managed

Ensuring funds are handled according to various policies, Uniform Guidance, and sponsor guidelines

Oversight includes:

Review actual activity compared to budget/trends regularly

Investigate unexpected variances and document findings

Ensure financial activity is appropriate & proper approvals were obtained

Ensure transactions are assigned to the appropriate chartfields

Ensure adequate documentation is maintained

Financial Monitoring of Projects

Means to Accomplish Financial Oversight:

(Refer to Financial Oversight Document and RTF Best Practices)

M-Reports eReconciliation (completed by SSC) Unit Defined Commitments FinProd reports (i.e. PBSR, SOA) Business Objects reports

Financial Monitoring of Projects

Regular Review – What do we look for? • Is spending in accordance with what was awarded?

• Has the budget been allocated?

• If the spending is not in line with the budget categories; has a rebudget been completed?

• Review cost sharing; was the obligation fulfilled?

• Are the appropriate individual's effort on project?

• Project period dates – is it past the end date?

• Has the revenue been received? What is the pay type?

Regular Review Process

Budget Allocation

• If the budget was already allocated by Sponsored Programs, but changes need to be made, the budget reallocation functionality should be used to adjust the budget accordingly.

• Any correspondence with the PI for approval of the budget category changes should be loaded into eRPM as support.

Regular Review Process Budget Changes & Rebudgeting

• Post Award Change Request Form -

All changes that used to be requested via the FDP form related to budget changes are now requested on the post award change request form.

• Rebudget requiring sponsor approval

• Award reduction/deobligation

• Cost sharing reduction

• Equipment >/= $25K not in sponsor approved budget

• No cost time extension

• Agency, sponsor and award specific rules apply

Regular Review Process

Restricted Expenses

OMB Uniform Guidance:

• Identifies allowable costs versus unallowable (which costs should be covered by indirect cost recovery), previously known as A-21.

• Sets standards for ensuring proper policies and procedures are in place for managing costs related to federal grants and contracts (i.e. cost sharing, budget revision approvals, audits, determining allowability of cost, etc.), previously known as A-110.

• Annual audit of expenditures charged to federal grants and contracts, previously known as A-133.

Regular Review Process

Human Resources/Appointments

Effort Reminder

Proposed effort needs to be expended on the P/G

Effort on the P/G correlates to the work being done

Rebudget if change in effort over 25%

Regular Review Process

Revenue Monitoring

Part of monitoring activity on a project is confirming that funding is received from the sponsor (i.e. Advance or Scheduled Payments, LOC, Invoiced)

For Projects that are Invoiced:

Review Statement of Receivables and Aging report to confirm payment(s) received

Uncollected receivables are ultimately the responsibility of the department

Regular Review Process

Cost Share Monitoring

If cost sharing is required by the sponsor or is a UM commitment on PAF, confirm revenue has been transferred to the cost share chartfields.

Required cost sharing expenditures should be charged to the cost share chartfields within the project dates.

Regular Review Process

Fixed Price Agreements

Fixed Price Project ending with a positive balance – unit keeps remaining funds

Dean’s Office must sign off on the FSR memo from Sponsored Programs

Portion of the balance may be retained by the College

Keep in Mind Resources

LSA Finance – Research Office is available for:

Proposal Stage

LSA Finance – Business Analyst is available for:

Questions on Policies & Best Practices

Questions or help with difficult situations

LSA Finance – Business Office Manager is available for all areas.

Additional Resources

LSA Internal Resources o LSA Research - http://www.lsa.umich.edu/research o LSA Research Google Site - https://sites.google.com/a/umich.edu/lsa-research-admin-

manual/ o LSA Budget & Finance Policies and Procedures -

http://www.lsa.umich.edu/facstaff/budgetandfinance/policiesandprocedures/allpolicies o Analyst Look Up

http://www.lsa.umich.edu/facstaff/budgetandfinance/stafflist/financialanalystlookup

Sponsored Programs Office - http://www.finance.umich.edu/programs o Closeout Checklist - http://www.finance.umich.edu/programs/forms/SPPGCC o Subcontracts - https://finance.umich.edu/programs/subcontracts o Lump Sum Advance - http://ssc.umich.edu/node/267

ORSP - http://orsp.umich.edu/ o Uniform Guidance - http://orsp.umich.edu/uniform-guidance

Questions or Comments?