More about Cost Sharing…

1. More about Cost Sharing… School of Social Work Auditorium May 2, 2007

2. Agenda • Brief overview of the Process • Cost Sharing Accounting Model • Collect Costs Processing in eUMB • Transfer of Funds Sweep in eUMB • Corrections of erroneous postings & effects on next months processing • Tracking cost sharing activity in RAVEN • Questions

3. Definitions of Terms Cost Sharing is defined as a use of university resources or funding that supplements externally sponsored projects Types of cost sharing that MUST be recorded in eUMB Voluntary Committed Cost Sharing is cost sharing that is offered in an application or proposal or other communication to the sponsor Mandatory Cost Sharing is that portion of the University contribution to a sponsor that is required by the sponsor. This includes the portion of an individual’s salary above the current NIH salary cap limitation.

4. Definition of terms Companion Cost Sharing Chartstring A chartstring that accumulates expenses and segregates the University’s cost sharing portion of expenses from the ‘bill to sponsor’ portion of expenses for a single project These are identified in eUMB by assigning two Fund chartfields to a single project id. Funds 147 (Standard Grant) and 149 (Deliverable Grant) capture “Over the Salary Cap’ charges while Funds 146 (Standard Grant) and 148 (Deliverable Grant) capture other types of mandatory cost sharing charges.

5. Definition of Terms Department Funding Chartstring A chartstring cited by the department that will be charged (debited) for the Cost Sharing portion for ALL projects within that department. An automated transfer process will run each month (on or around the 15th) to transfer departmental funds for the accumulated expenses charged in the companion chartstring for the prior month. The offset entry is to revenue (credit) in the companion cost sharing chartstring.

6. Bill to Sponsor 182 Exp Rev 147 1xxx Sal 2xxx FB 3xxx Oper 4xxx Oper 0xxx 0xxx 0xxx 0906 $$ $$ Cost Share The Cost Sharing Process Collect Cost Process 1) FUND PCBU PROJECT ID ACCOUNTS 182 00184 00523335 147 2) Monthly Transfer Process FUND PCBU PROJECT ID ACCOUNTS • 2210 Debit • Debit • 2xxx Debit* 135 00135 00391245 117 00115 001xxxxx 147 00184 00523335 0906 Credit *Campus funding for FB

7. Typical monthly transaction cycle Calendar Month June/July FY ‘07/FY ’08 Accum. Expenses Companion CS June March April May Transfer of Funds July ’06 – Feb ’07 March April May June Dept Funding CS

8. Transfer of Funds “Sweep” Department Funding Campus Funding ALO 2210 150,000 ALO 27xx 37,500 ALO 4851 1,000 Accounting Entries Collect Costs Process Over Sal Cap Funds 147/149 Mandatory Cost Sharing Funds 146/148 Expenses Expenses Payroll 1xxx 100,000 50,000 Fringes 27xx 25,000 12,500 Journal Entries 3xx 1000 500 P-Card 3xx 500 Revenue Revenue ALO -0906 125,000 63,500

9. Tracking Cost Sharing in RAVEN You have options… 1) What was my dept’s cost sharing obligation…for Over Salary Cap, for Mandatory CS, for Salaries, for operating expenses, for last month (any month) and FYTD? 2) View revenue and expense for each project

10. What does this all mean… • Records formally in eUMB the University’s cost sharing obligation as defined by campus policy • Maintains the integrity of the original charges within its respective project ids (chartstring) • Allows the University (departments, dean’s offices, central offices) to monitor, track and report on cost sharing obligations • Mitigates the eroding of the UMB Facilities and Administrative cost rate • Compliance with federal regulations

11. Where do we go from here?

12. P/R JE’s Vouchers P-Card The Collect Costs Process Companion Cost Sharing Chartstring Funds…14x…+ PCBU + Project ID…etc

13. The “Sweep” or Transfer of Funds Process Accumulated Expenses from prior Month are “swept” up and booked as revenue .. in the Companion Cost Sharing Chartstring Revenue 0906 Expenses Expenses