Module 4 Project Management

1. Sponsored Programs at Penn Module 4Project Management

2. Project ManagementAgenda • Communication • Establishing the Project Environment • ARRA (Stimulus) Funding Principles • Managing Monthly • Monitor Expenditures • Cash Management

3. Communication • Report monthly to PI • Establish payroll distribution • Establish level of effort anticipated for each individual on project • Restrictions on spending • Cost Sharing • Monitor Subcontracts = Confirm amounts & work done SPP #2131, #2135 Sub-recipient Monitoring policies • Communicate regularly with ORS • Extensions / Continuations and other project changes • Financial reports, delinquent sponsor payment • Inform Sponsor via ORS of any Programmatic changes • Assesses allowability of costs

4. Support the Project • Work with PI on on-going basis • Ensure that interim reports & proposals are submitted on time • Disclose Inventions and Patents • Prepare for Progress Reports and Non-Competing Continuations

5. Establishing the Project EnvironmentPayroll Set-up • Identify who belongs on distribution • Identify amount of funding and % effort • Distribution Stop Date s/b set to the Account End Date • Salary Encumbrances are calculated through the Current Budget End Date or Distribution Stop Date (whichever is earlier)

6. ARRA Funding Principles • ORS is required to report ARRA years SEPARATE from that of the non-ARRA funded years • Quarterly Reports are due within 10 days of the close of each quarter • Separate SF269 reports will be due 90 days after account end date • Carryover is NOT ALLOWED between ARRA and Non-ARRA funded years • One-Time Funding – Unless otherwise specified, ARRA funding to existent or new awardees should be considered one-time funding • One time no cost extension may be requested • Close monitoring of spending rates and re-budgeting is required • No cost transfers or comingling of ARRA and non-ARRA funds

7. Procurement • Ben Buys Commodity Matrix • Methods of Purchasing • When should C-1, C-1A, C368, Purchase Order, or P-Card be used • Competitive Bids Required on aggregate purchases > $5,000 unless purchase is with a University Contract Supplier or with a supplier participating in the Penn Marketplace.

8. Issues Surrounding Specific Expense Categories

9. Equipment • Definition – tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit • Must be necessary for project purposes • During the award period • Is not reasonably available for use elsewhere in the University • Award notice does not constrain equipment purchases • Must obtain necessary bids, unless sole source justification • Document whether Equipment is • Government owned • Government furnished • Disposition after the project has ended • Know sponsor regulations

10. Foreign Travel • Travel must be included in proposal or otherwise be allowed by sponsor • Justify and document changes (approval, if applicable) if not in proposal • Department must maintain documentation in the file that supports the trip’s purpose • Foreign air travel paid with federal fundsmustbe on US-flag air carriers • Limited exceptions

11. Foreign Travel (cont) • Exceptions, which must be documented, generally include: • US-flag air carrier does not go to destination • Total trip time extended more than 24 hours • Lay-over extended more than 6 hours • Foreign carrier eliminates 2 or more changes • On short trips: US-flag air carrier would double travel time • Exceptions can be found at GSA Travel Regulations (41CFR301-10.135-143) • www.access.gpo.gov/nara/cfr/cfr-retrieve.html#page1

12. Consultants • Evaluate: Consultant, Employee or Subcontractor? • Use C-12 Independent Contractor Determination & Certification http://www.finance.upenn.edu/comptroller/tax/contractor_certif.shtml • Consulting agreement needs to be completed and forwarded to ORS for approval & signature • Document role of consultant • Needs to be working towards goals of project to which he/she is charged • Review sponsor guidelines for consultants • Ensure approvals are obtained, if applicable • Consultant rates may be limited for some sponsors

13. Purchases • PI approval process for purchases • Assess allowability, allocability and reasonableness • Verify budget and availability of funds • Procure bids • “Buy American” on federal awards when possible • Don’t buy capital equipment at end of project

14. Service Centers • Definition: • A department or functional unit within a department, which performs specific service for a fee • Examples: Cell Sorting facilities, Resonance Imaging facilities, and Animal Care facilities • ORS responsible for review & approval of rates • Services provided charged based actual use of services • Charges for services allocated monthly -Financial Policy #2115 University Service Centers • Make sure Service Centers use correct fund account • PI & BA should review Service Center charges regularly • The BA may not know what services were provided, or if the amount charged is appropriate

15. Manage Monthly • Plan expenditures in advance • This will make the project easier to manage throughout life of project • Run and analyze appropriate reports • Financial Policy #1402.5 Monthly Closings/Reporting • Send detailed reports to PI • Remove unallowable and wayward charges • Compare expenditures to projections • Manage changes through full system • Changes in award value affect payroll • Changes in subcontracts or equipment affect F&A charges

16. Manage Project Changes Proactively • Use proposal as “home base” • Anticipate necessary changes • Contact ORS for approval • Get sponsor approval through ORS • Change of scope or effort • Plan ahead for extensions

17. Monitor Expenditure Rates • Sponsors question unusual expenditure rates • Have we changed scope of work? • Are we still breathing? • Communicate with Sponsor (cc ORS)

18. Cost Transfers • The transfer of costs to sponsored projects where the costs initially had been incorrectly charged to another account. Any cost transfers that occur need to be properly justified and documented. • University Financial Policy Number 2113 Cost Transfers and Payroll Reallocations states "Cost transfers must be prepared and submitted within 90 days from month end in which the transaction appears on the fund." Failure to adhere to this policy may result in the University disallowing the transfer which would result in a write-off to the administering department.

19. Cost Transfers • Must be an allocable, allowable and justified charge to the particular award • Department must maintain documented justification for transfer • Must be made within time constraints

20. Cost Transfer Principles • Cost transfers are for correcting legitimate ERRORS • Cost transfers should NOT be used as a means of managing cash flow • Project funds are NOT interchangeable • Integrity of each grant account must be maintained • Allowability of costs must be maintained

21. Cost Transfers • Documentation • Supported by full explanation and justification, as well as a certification of the propriety of the transfer • Explanations such as “to correct error” or “to transfer to correct project” are not sufficient • Approval can be documented by • PI signature • Printed e-mail messages from PI

22. Cost Transfer “Red Flags” • Transfers made in excess of 90 days after the original charge • Transfers without a full explanation • High volume of transfers • Timing and “route” of transfers • Late transfers to funds with unexpended funds • Transfers from funds with overdrafts to other 5 fund(s) • Transfers between funds with scientific overlap

23. Advance Accounts for Continuation Awards • Recommended for non-competing renewals requiring new fund #’s for each period • Department requesting the advance account bears the risk of having to fund any costs incurred if the funding never materializes • Med School sets up advances for 12mth period • All other Schools set up Advances for 3 month period

24. Monitoring Accounts Receivable • For Letter of Credit awards, check revenue & cash received. There should be no cash on hand. • On Letter of Credit, confirm that PBIL is correct • Contact ORS to address payment problems with sponsors • Departments should review AR and contact ORS regarding aged receivables of concern • For awards on payment schedule, contact Bob Speakman • For all other awards, contact Gokila Venkateswaran • For Med School awards, ORSS representative is Deb Naso

25. Checks, Payments and Project Budget Increases • Hand carry check to ORS immediately, with project identification • Do not deposit check • Should AIS be increased because of check?

26. Run and Review Reports • BEN Reports • 102.ORG – Summary CNAC-ORG-FUND level • 115.ORG – Fund Summary • 133.ORG – Due to Close • 134.ORG – Summary of Final Expenditure Report • Data Warehouse • Fund Summary • Org Summary • Corporate Documents • Payroll • Correct Errors

27. Reporting Tools “There are so many reports I’m not sure where to look first.” Ben Reports BEN FINANCIALS PennERS Business Objects GRAMS SALMGMT PennERA

28. GRAM – The online PI view • GRAM / BEN Reports • Reports used primarily by Principal Investigators • Reports represent a Current Budget Period perspective • Not easy to determine PJTD Numbers or amount to close out at (other than Budget Available) • Critical for Operating Budget to be posted to the Budget Period Start

29. Actual Spent represents Current Budget Period Only • Further Detail can be clicked on, but none is available for Prior Budget Periods

30. Management of All Grants in ORG

31. Fund Level Management

32. Expense Detail

33. Your assignment • Full documentation of the Business Objects Queries is available at: http://www.upenn.edu/computing/da/dw/financial_queries.html Select “Grants Management” • While we will discuss and give samples of some of the more popular reports today, it is essential that you GO BACK TO YOUR OFFICE AND PLAY WITH THE REPORTS!!! Decide what tools/reports work best for you and your investigators.

34. ORG Summary.rep

35. ORG Summary - Analysis of Expired Funds Why isn’t my fund disabled?

36. ORG Summary – possible F&A

37. Fundsummary.rep- Estimating the Unobligated Balance Make sure the formula toolbar is visible and checked under View Toolbar.

38. Grant Reports.rep

39. GrantReports.rep

40. Identifying Waywards – 115.ORG The 115 shows a possible wayward charge from ORG 4227 Cardiology. To obtain the detail of the charge a 15X.ORG report can be run entering the ORG making the charge in the Accounting Period the charge was made.

41. Otherorgschgs.rep & Waywards.rep

42. Effort Report - Fund

43. Effort Report - Fund

44. In Summary • Award must be reviewed on a regular basis • Communication is vital to the proper administration of the award • When you are not sure, investigate and ask • If an award is properly managed, the closeout process is very simple

45. Questions???