Award Administration: Part One: The Basics

1. Award Administration: Part One: The Basics Presented by: Tim Wood Maureen Bonnefin Presented February 10, 2012

2. Recording date of this workshop is February 10, 2012. Some of the rules and procedures discussed in this workshop are subject to change. Please check university resources before relying exclusively on this recorded presentation.

3. Account Set-Up • Award Administration • Terming Awards The BASICS

4. New Awards • Contacting SPS • Guarantees • New Sub-Accounts • New Subcontracts Account Set-UP • Areas of Concerns

5. Process of Account Set-up • Award Documentation arrives from OGRD • Accountant reviews Award • Billing Instructions are created and uploaded to the OGRD database • Budget Project and account information is submitted to AIS • Department is notified that the award has been set up.

6. Review of New Account • Department should review AIS and the TO ACCT Line in OGRD for accuracy: • Time Period • Award Amount • F&A Rate • Cost Share • If something does not look right, check award documentation: • Award image on the TO SPS line in the OGRD Database under the specific activity for the OGRD number. • Contact SPS with questions or changes.

7. Review of New Award – TO ACCT Line

8. TO ACCT Line Image is upload of SPS Billing Instructions

9. Determining the Correct SPS Contact • SPS workload assigned by Ag Code • Locating the Ag Code in AIS: • BALANCES 15x Report — Page 5

10. BALANCES 15x Page 5

11. Finding SPS Contact by Ag Code • Go to www.sps.wsu.edu • Click on: • Contact Us • Ag Code Listing

13. Guarantees • Allow for: • Spending before executed award is received. • Continued spending before an amendment is received. • Changes in budget/objects prior to official agency approval. • Use the SPAR form for Guarantees • Attend Part Two: The Forms • Subcontracts cannot be put on Guarantee

14. Guarantee Code (GAR) – 15 Screen

15. Adding a Sub-Account • Department completes an RCAR • Department obtains necessary signatures • Routes to OGRD for signature • SPS receives and sets-up new sub-account

16. Adding a Subcontract • To add a sub-recipient under an existing WSU award please work with OGRD. • Form can be found at • www.ogrd.wsu.edu • Under Forms

18. Completing the Subcontract Form • On the Sub-award/Amendment Request Form • Make sure the time period matches or falls within the time period of the award. • If the subcontract budget allocation is not in object 14, SPS will need a SPAR re-budget.

19. Award Set-up Concerns: Budget Changes • Original budget on ERex does not match amount funded by agency. • Department should submit a new budget at the time of award acceptance.

20. Award Set-up Concerns: Cost Share • The Proposal States $10K in Cost Share • The Award States $2K in Cost Share • The Cost Share obligation will be $10K • $8K Voluntary Committed Cost Share • $2K in Committed Cost share • To reduce WSU’s cost share, work with OGRD to document agency approval acknowledging the lower obligation.

21. Future Effective Awards Award Set-up Concerns: • An award comes in Jan 1, but the budget does not start until Feb 1. • Accountant processes the paperwork, the data is input and the award can be seen in Balances 15 screen. • The Allocation cannot be input until Feb 1, and you will not see it until a few days after that. • This means you cannot see the Balances 01 screen until the allocation posts, or an expense post to this account.

22. Responsibilities • Expenses - Allowability • Revenue - Collection • F&A Award Administration • Changes to the Award • Research Terms & Conditions (RTC) • Subcontracts

23. Award Administration Responsibilities • SPS: • Agency Requested Financial Reports/Invoicing • FFATA • Receipting/Revenue Collection • Paying Subcontract Invoices • Patent/Invention Statements • Equipment Reports • Closing Documents

24. Award Administration Responsibilities • SPS and Department: • F&A Expense Review • Revenue Received in a Timely Manner • Coordinate Invoicing/Reporting • Fixed Rate Awards • Backup Detail for Invoices (receipts, etc) • ARRA • E-Verify • MBE/WBE (aka Sub-Contracting Reports) • Property Reports • Invention Reports

25. Award Administration Responsibilities • Department: • Expenses are Allowable • Cost Share Obligation is Met • Approving Subcontract Invoices • PI Technical Reports • Coordinate with Intellectual Property Office on Patent Filings • Monitor Property/Equipment per University Guidelines

26. Factors Affecting Allowability of Costs • Allocable • Cost is incurred solely to advance the work of the award. • Reasonable • Would a prudent person make the same purchase/decision? • Consistent • All expenses are treated the same across the University. • Allowable • Expense not specifically disallowed per award

27. Revenue Collection: BALANCES Report 01

28. BALANCES Account Detail (PF2) Report 19

29. Cost Share Obligations – Report 15

30. BALANCES Cost Sharing (PF7) Report 04

31. F&A Review • Verify that the correct rate is being used. 1

32. F&A Base What is the difference between MTDC, TDC, & TC? • MTDC - Modified Total Direct Costs • There are some expenses that do not have overhead associated charges • TDC - Total Direct Costs • There are no exclusions from the overhead calculation. • TC - Total Cost • Overhead is calculated on all expenses (including overhead)

33. Finding the Base Code in AIS • BALANCES15X Screen Page 3

34. Determining the Exclusions • Refer to Overhead Base Schedule Handout • Locate the Overhead Base Code (e.g. B40) • Listed underneath are the objects/sub-objects that are excluded from the overhead calculations

35. TDC (Base B02) Calculation Base: $106,520.84 F&A Rate: * 49.5% F&A Expense: $ 52,727.83

36. MTDC Calculation

37. BALANCES 01

38. MTDC Calculation Total Direct Expense: $137,376.12 Less: 03 PX $14,854.50 Less: 07 QT$8,141.00 Base: $114,380.62 F&A Rate * 49.5% F&A Exp: $56,618.40

39. Total Costs • WSU system cannot calculate based on TC. • SPS converts TC to TDC: • When looking in AIS you will see a rate different from the TC rate. • TC rate is 10%, the TDC rate is 11.11% • TC rate is 20%, the TDC rate is 25%

40. Changes to Established Award • Work with OGRD to make changes to the award: • Pre-Award Costs • Significant Budget Changes • Time Extensions • Request for Additional Funds • Change in Scope of Work • Change in Key Personnel

41. Federal Research Terms and Conditions • Previously known as FDP or Expanded Authority • Allows for changes to award without Agency approval • Applies to some Federal Grants – check with the accountant responsible for the award

42. Common Research Terms and Cond. • 90 day Pre-Award Cost • SPAR needed to exercise this option • 1 Year No Cost Extension • Contact Accountant • Re-Budgeting • Depends on the Federal Agency • As long as the scope of work is not changing

43. Subcontract Invoices • SPS Sends Department the Subcontract Invoice • Department checks for: • Expenses within Subcontract Period of Performance (provide date range of expenses) • Invoice does not exceed the awarded Subcontract amount • Any needed reports from the vendor have been received/accepted (Technical Reports)

44. Subcontract Invoices – Continued • Department signs and sends back to SPS • Clearly write the amount for which payment is approved. • Include Budget-Project • SPS Accountant reviews and approves • Payment is made to the Subcontractor • If Invoice is sent directly to department, send two (2) copies to SPS, sign both, write the budget-project and the amount on both copies

45. Close-Out Documents • Responsibilities – Terming Awards • Closing Fixed-Price Accounts • Common Closeout Concerns Terming Awards • Audits

46. Close-Out Documents • Invoices • Final Financial Report (SF 425) • MBE/WBE (aka Subcontract Reports) • Patent/Invention Reports • Property Reports • Agency Specific Reports • Department should work with SPS accountant to see that Final Close-Out Documents are sent.

47. Responsibilities – Terming Awards • SPS: • Final Financial Report/Invoice Submitted • Expenditures are within Time Period • All Revenue has been collected • Cost Share Obligation Met • WSU Record Retention is 6 Years

48. Responsibilities – Terming Awards • Department: • Make sure all expenses are within the time period of the award • Cost Share Obligation has been met • All Revenue has been collected • Any overdraft has been cleared • PI’s reports have been submitted. • If all of these conditions are met, send an email to the accountant requesting the account be zeroed and closed.

49. Closing Fixed Price Accounts • Fixed Price Agreements: • Consult BPPM 40.27 • SPS will charge out the remaining F&A to arrive at the “Residual Cash Balance” • If residual amount is less than 50% of the total project revenue, SPS transfers the revenue to the departmental fixed price consolidation account (FPCA) • Submit RCAR to set-up new FPCA if needed

50. Common Closeout Concerns • Late Expenditure Postings • Delayed Response Time on Collaborative Reports • Cost Share Obligation Not Met