Availability Control ( Grant Budgeting ) Forum

1. Availability Control(Grant Budgeting) Forum Forum to discuss AVC in IRIS March 28, 2006

2. Availability Control Agenda • Welcome • Ground Rules • Budgeting - FRS vs SAP • Timing of AVC • How AVC works • Known issues and solutions • Tools to use • Discussion

3. Budgeting

4. FRS Object Code ABR Rule No Equivalent ABR Pool SAP G/L Account BudRule Sponsored Class Budgeted Sponsored Class Budgeting

5. Budgeting Sponsored Class and Budgeted Sponsored Class • A Sponsored Class may have one or more g/l accounts • Sponsored Classes track to a BUDGETED Sponsored Class depending upon the BudRule, just as in FRS different ranges of object codes tracked to an ABR Pool depending on the ABR rule • To understand your budget, you need to know the g/l account and the BudRule

6. Budgeting • ABR 9 BudRule 9 1000 – All E500000 – Direct Expenses 9998 – F&A costs E590020 – F&A costs

7. Budgeting • ABR 5 BudRule 5 • 1000 – Salaries E510000 – All Salary & Benefits • 3010 – Travel E530010 – Travel – All • 3105 – Consultants E530130 – Consultants • E530170 – Train Participants • 3114 – Sub CT < $25K E530200 – Sub-contract < $25K • 3118 – Sub Ct > $25K E530201 – Sub-contract > $25K • 3050 – Current Expenses E530300 – Direct Current Expenses • 5000 – Equipment E550000 – Equipment • 9998 – F&A costs E590020 – F&A costs

8. Budgeting ABR 4 BudRule 4 1000 – Direct Salaries E511000 - Direct Salaries & BenefitsE513000 - Student Salaries & Benefits 3010 – Travel E530011 - Travel - Domestic E530033 - Travel – Foreign E530040 - Travel – Student 3105 - ConsultantsE530130 – Consultants E530170 - Train Participants 3114 – Sub-Ct < $25,000 E530200 - Sub-contract < $25K 3118 - Sub-Ct > $25,000 E530201 - Sub-contract > $25K

9. Budgeting • ABR 4 Budrule 4 3050 – Direct Current Exp E530300–Direct Current Exp E534040- Rent/Lease Land/Eqp E534041-Rent/Lease – Bldg E536120-Patient Care & Support 3701 – Fellowship Payments E537010 – Fellow/Trainee Stip 3711 - Grants in Aid - Other E537030 – Trainee Tuit/Fees 5000 – Equipment E550000 – Equipment 9998 – F&A Costs E590020 – F&A Costs

10. Budgeting ABR 4 BudRule 4 Examples of CAS items possible with approval: 1203 – Secr/Clerical E512030 – Secr/Cler Sal & Ben 3335– Office Supplies E540334 – Office Supplies 3203 – Postage E530402 – Postage 3031 – Equpmt/Line Charge E531199 – CAS Communication, includes all the items in left column 3033 – Work Orders 3034 - Cell Phone 3035 – Internet Charges 3036 – Voice Mail 3037- Answering Services 3039 – Pager Services

11. Availability Control • Availability • Controls

12. Availability Control Why do we need AVC? • Not in compliance with OMB circulars • Not compliant with Federal sponsor regulations • Not compliant with UK policies • Sponsor audits more frequent • Findings may be extrapolated to all other grants from same sponsor

13. Availability Control • Steps taken prior to implementation of AVC: • AVC presented to Research area budget officers on 02/03/2005 • AVC presented to Provost area budget officers on 2/24/2005 • CAS items needed to be cleared from grants in FRS prior to end of August • Remaining items were moved from grants to CAS accounts prior to conversion to SAP • CAS items were allowed to be moved from the CAS accounts to grants in SAP through the end of January 2006.

14. Availability Control - Timing Why turn on AVC now? October FI go-live • Grants budgets did not post until November • Problems with conversion data • Spent October dealing with conversion issues with grants • November was spent adding the ability to charge F&A costs • December was spent correcting F&A postings that were overcharged • January first month where these and other issues were successfully resolved

15. Availability Control Why turn on AVC now? Advantages: • AVC tested during HR parallel testing environment • AVC adjusted and back office procedures refined to deal with issues resulting from parallel testing • Turned on 02/07/2006 – After January month end • Beginning of February to allow full month to resolve issues • Turned on two months prior to HR go-live • Turned on five months prior to fiscal year end • AVC configuration adjusted and back office procedures refined to deal with errors in the AVC program

16. Availability Control • Mechanics

17. Availability Control Definition Availability Control (AVC) • Verifies sufficient budget is available prior to allowing documents to post AVC has three levels of tolerance Tolerances Level 1000 – Warning messages at 100% Level 2000 – Warning message at 90% and Error message at 100%, Payroll document warning Level 3000 – No message

18. SAP Messages • Messages in SAP may be confusing: (Actual messages from SAP) • Information messages: Blue I • Budget consumption 62.82 USD GM PB Availability (less than overall budget for item 000009) • Warning messages: Yellow triangle • Budget consumption 62.82 USD GM PB Availability (less than overall budget for item 000009) • Should be able to use the green check mark or the “enter” key to bypass the message • Error messages: Red X • Budget consumption 62.82 USD GM PB Availability (greater than overall budget for item 000009)

19. Availability Control – How it works How it works Tolerances are assigned by grant type and sponsored class Grant Types excluded: CB – Cash Basis HC – Human Clinical FA – Federal Appropriation (College of Ag) SF – Student Financial Aid

20. Availability Control How it works, cont. Sponsored Classes excluded All Payroll & Benefits sponsored classes (including fellowship): • E510000 E511000 E511010 E511011 E511099 • E512000 E512010 E512011 E512019 E512030 • E512031 E512039 E512040 E512041 E512049 • E512070 E512071 E512079 E512099 E513000 • E513199 E522000 E522010 E522011 E522041 • E522071 E522099 E523000 E523199 E537010

21. Availability Control How it works, cont. • Other sponsored class overrides: • E540348 – Pro-card default • E590000 – E599999 F&A costs • Revenue sponsored classes – All • Will only stop payroll, pro-card or F&A costs if the entire grant is over budget

22. Availability Control • Issues Identified: 02/07/2006 – AVC initially activated • 02/07/2006 - Found that the budget roll-up was not working properly Status –Resolved – transport to production on 02/07/2006 • 02/10/2006 – Found that certain contracts handled on a cash basis needed a different grant type in SAP Status –Resolved – new grant type in production 03/01/2006

23. Availability Control • Issues identified, cont: • 02/10/2006 – Found that encumbrances from a subcontracts were not liquidating Status –Resolved initially on 02/13/2006 by liquidating encumbrances as found.Submitted suggested procedural changes to MM teamon 03/09/2006, 03/14/2006 and 03/15/2006 • Issues Identified, cont: • 02/15/2006 – Various instances of invalid messages to users Status –Resolved on 03/01/2006by modifying AVC configuration and change in procedure for budget postings by Sponsored Projects Accounting.

24. Availability Controls • Issues Identified, cont: • 03/02/2006 –Grants that have department number or functional area (PCS) changes were getting error messages. Status –Resolved on 03/13/2006, by modifying configuration • Various budget roll mistakes were identified Status –Resolved on various dates as they were identified

25. Availability Control • 02/08/2006 Service center and recharge center not posting at all Status– Resolved 03/01/2006 – able to post and suspend • 03/01/2006 Service center and recharge centers suspense entries Issue: Not getting paid for services Status - Unresolved Proposal - Set up a overrun cost center per area (at lowest level desired by business officer) to post charges if budgeted sponsored class is over budget

26. Availability Controls • Other related issues: • Grants with duplicate budgets (6) - Deleted extra budget document • Grants with duplicate F&A budgets (65) – F&A budget offset 03/23/2006 • Grants converted with the wrong Bud rule (10) – Call Sponsored Projects Accounting to have the Bud rule changed and the AVC roll-up reinitialized • Grants where pre-posted budget errors occurred (3) - resolved Out of all issues identified – only one remains unresolved

27. Availability Controls • Tools you can use: • GMAVCOVRW – Use the variant /UKDefault • BudRule Crosswalk – available on the following web sites http://www.research.uky.edu/ospa/ http://www.uky.edu/EVPFA/Controller/spahome/ http://www.uky.edu/IRIS/Financials • GL Accounts from FRS object codes are also available on this site

28. Availability Controls • Tools you can use, cont: • Grants Analysis class has been revised with up to date information – retakes are allowed. Contact IRIS training team to add back to your training plan. • Research Administrators and College Grant Officers • Sponsored Projects Accounting financial administrators • Use OSPA prior approval form to guide written justifications • Coming Soon • IRIS web-site dedicated to Grants Management • Link to IRIS web-site dedicated to Availability Controls

29. Availability Controls Coordination between OSPA and SPA • Re-budgets are high priority in both offices • If justifications are in place, may be processed through both offices within days of receipt. • OSPA, SPA and IRIS resources are dedicated to identifying and resolving issues as they occur.

30. Summary • Policy has not changed from FRS • System protects the integrity of UK by being compliant with federal and UK policies governing grants • Pro-actively managing grant budgets is necessary • Budget Rules are modeled on FRS where possible • Re-Budgeting will be more frequent • Better coordination exists between OSPA and SPA • Assistance will be provided as requested

31. Availability Control Open Discussion

32. Process • All comments and questions will be summarized • Sent to Karen Combs and Dan Wentz for verification of accuracy • Summary sent to IRIS team • Responses to summary dispersed to Karen Combs and Dan Wentz • Response from users gathered • Recommendation made to IRIS team • IRIS team will take recommendation to business owners for final decision