Policy Statement

1. AGENDAAdministration and Finance Policy No. 3702Contract and Grant Financial Reporting and Closeout

2. Policy Statement The University of Maryland, Baltimore (UMB) will submit financial reports to external contracting and granting agencies in a timely and accurate fashion using the UMB financial system. UMB will close all project IDs related to contracts and grants within the UMB financial system in a timely and accurate fashion.

3. Purpose of the Policy • Identify the procedures • Define the responsibilities

4. Scope • The financial reporting portion of the policy pertains to all contracts and grants where financial reports are sponsor required (Federal and State Student Financial Aid and individual fellowships are excluded) • The closeout portion of the policy pertains to all contract and grants received from external agencies which ended 01/2009

5. Financial Reports - Types • Federal agencies usually require an SF-269 (or SF-269A), commonly called a Financial Status Report (FSR) • Non-federal agencies • Sponsor specific form (e.g. DHMH-440) • Generic form • All will be referred to as an FSR

6. Financial Reports - Frequency • Interim (Not the final year of a grant or contract) • Quarterly, Semi-Annual or Annual • Encumbrances are reported as Unliquidated Obligations • Final (Final year of a grant or contract) • All expenditures must be in Raven prior to the completion/submission of the FSR • Encumbrances are not reportable

7. Contract and Grant Financial Reporting • Each department should perform a monthly review of all activity for each project • A Senior Administrator (or designee) is to perform a sample quality review, as determined by that department, and will retain a sign-off within the department • Departments are expected to adhere to the Administration and Finance Cost Transfer Policy #3311 • Financial Reports are created and submitted by Restricted Funds

8. Preparing for the FSR - Monthly • The department is expected to perform the following on a monthly basis (regardless of project end date): • Monthly review of RAVEN activity • Process adjustments, corrections, cost transfers in accordance with Administration and Finance Cost Transfer Policy #3311 • Notify Restricted Funds of any F&A expense discrepancies • Check deliverables/milestones • Email Deliverable Receivable Request Forms (based on completed milestones) to Restricted Funds to create receivables and/or mail invoices • Keep PIs informed of expenditures

9. Preparing for the FSR - Monthly • Restricted funds is expected to perform the following on a monthly basis: • Verify and correct any F&A expense discrepancies • Process all completed Deliverable Receivable Request Forms in accordance with Administration and Finance Policy #3701 – Contract and Grant Billing and Collections • Email to the departments a report listing project ids which are due to end in 30, 60, 90 calendar days

10. Preparing for the FSR – 90 days • Based on the 30, 60, 90 day notifications, it is suggested that the departments perform the following tasks for project ids due to expire in 90 days: • Consult with the PI • Validate project id end date • Follow-up with subcontractors or any other outside vendors for final invoices • Check Employee Funding Profiles (EFPs), Effort Reporting and HR implications • Process any adjustments, cost transfers • Resolve over-expenditures • Update service center commitments (Telecom, Vet Resources) • Check deliverables/milestones • Request IRB/IACUC extensions (if applicable and allowable)

11. Preparing for the FSR – 60 days • Based on the 30, 60, 90 day notifications, it is strongly suggested that the departments perform the following tasks for project ids due to expire in 60 days: • Follow-up on all tasks from the 90 day checklist • Request a no-cost extension (if applicable and allowable)

12. Preparing for the FSR – 30 days • Based on the 30, 60, 90 day notifications, the departments are required to perform the following tasks for project ids due to expire in 30 days: • Follow-up on all tasks from the 60 day checklist • Send notification to ORD if the subcontract is continuing

13. The Project Period has ended! • The departments are required to perform all tasks not yet completed from the 30 day checklist • This will allow for a smooth, accurate and timely submission of the financial report • REMEMBER: Get everything into eUMB within the next 30 calendar days!!!

14. Completing the FSR – Interim Reports • On the 44th calendar day after expiration, Restricted Funds will email a preliminary FSR to the department • The department is expected to: • Review the preliminary FSR for completeness and accuracy • Process any necessary adjustments in eUMB, update the spreadsheet to include adjustments • Return the signed FSR along with the appropriate documentation for adjustments within 14 calendar days

15. Financial Status Report

17. Completing the FSR – Interim Reports • On the 59th calendar day after expiration, if no response from the department, Restricted Funds will email a “Second Request” to the department and cc the PI • The department is expected to: • Review the preliminary FSR for completeness and accuracy • Process any necessary adjustments in eUMB, update the spreadsheet to include adjustments • Return the signed FSR along with the appropriate documentation for adjustments within 14 calendar days

18. Completing the FSR – Interim Reports • On the 74th calendar day after expiration, if no response from the department, Restricted Funds will email a “THIRD REQUEST” to the department and cc the PI, Chair, Dean’s Office and Restricted Funds Manager • The department is expected to: • Review the preliminary FSR for completeness and accuracy • Process any necessary adjustments in eUMB, update the spreadsheet to include adjustments • Return the signed FSR along with the appropriate documentation for adjustments within 7 calendar days

19. Completing the FSR – Interim Reports • On the 82nd calendar day after expiration, if no response from the department, Restricted Funds will email a “FINAL REQUEST” to the department and cc the PI, Chair, Dean’s Office and Restricted Funds Manager • The department is expected to: • Review the preliminary FSR for completeness and accuracy • Process any necessary adjustments in eUMB, update the spreadsheet to include adjustments • Return the signed FSR along with the appropriate documentation for adjustments within 7 calendar days

20. Interim Report Still Not Complete? • 90 days after the budget period end date, Restricted Funds will complete and submit the FSR based on the current balances in RAVEN without department/PI approval • Unobligated balances • Sponsor approval not required – report submitted with a note/comment requesting the carry forward • Sponsor approval required – report submitted with a note/comment stating that the PI will submit a letter requesting the carry forward • If the preliminary report is currently overspent, the report will be submitted as completely spent

21. Completing the FSR – Final Reports • The same notification process as the interim reports will be followed except the final report will not be submitted until all of the following are met: • Department, PI, Restricted Funds agree on the report • No open requisitions or purchase orders are listed in RAVEN • FSR and RAVEN match • PI has signed the report • Restricted Funds has received the PI signed report

22. Completing the FSR – Final Reports • On the 120th calendar day after expiration, if the report is still outstanding, Restricted Funds will submit the report to the agency based on the most recent information in eUMB (not to exceed the budget) • Notification will be sent to the dean’s office

23. Completed FSR • Restricted Funds will forward the original to the granting agency with a copy to ORD • All sponsor-required FSRs must be signed by the Restricted Funds Manager • The PI signed reports are maintained within Restricted Funds • The project status will be changed to “90 Day – Call Restricted Funds” in eUMB • Any transactions submitted after that time will error out and require approval from Restricted Funds

24. FSR Due In Less Than 90 Days • All processes are contracted to meet agency requirement. For example: • Department of Health & Mental Hygiene – Due 60 days after expiration • Associated Black Charities – Due 45 days after expiration

25. BREAK – 15 MINUTES

26. Up next………. GRANT CLOSEOUT

27. Background Information – Grant Closeout • There is currently a large backlog • This portion of the policy/training pertains to projects ending 1/1/2009 and later • Projects ending 12/31/2008 and earlier will be handled on a case by case basis

28. Contract and Grant Financial Closeout • Closeout – The process of inactivating a project id in eUMB • There are two different components to closing out a project id • Soft Close – The final reconciliation between RAVEN and financial reports, invoices and payments • Hard Close – The inactivation of a project id within eUMB Financials and HRMS • Currently, there are three project statuses which are used in the closeout process • 90 Day – Call Restricted Funds – This status is used once the sponsor required financial report has been submitted • Frozen – Call Financial Services – This status is used when the soft close has been completed • Closed – Call Financial Services – This status is used when the hard close has been completed

29. Financial Closeout – Soft Close • Six months after the budget period expiration, Restricted Funds will begin the soft close process • Verify that all invoices have been submitted to sponsor for payment • If yes, continue the process • If no, the department will be contacted in order to submit required invoices (in regards to standard projects where final invoices are required and deliverable projects where invoices are not cost reimbursable) • Verify that any open requisitions and/or purchase orders are valid • If yes, the department will be contacted so final invoice from subcontractor or outside vendor may be submitted for payment • If no, the department will be contacted to request for the item to be removed by procurement • Verify that all UMB invoices to sponsors have been paid • If yes, continue the process • If no, the project will remain in a “90 day” status until all invoices have been paid

30. Financial Closeout – Soft Close • Standard (Cost-Reimbursable) • RAVEN expenses (direct and indirect) are compared to the FSR or final invoice • If the numbers match, continue the process • If there is a negative variance (deficit), the department will be contacted to either revise the FSR or final invoice (if allowable) or fund the deficit with a non-restricted project id • For most federal grants, when submitting additional expenditures, an FSR can be revised up to 12 months after the report is due (15 months after the project period) • Deliverable (Per Patient/Milestones) • RAVEN expenses are compared to the total payments received • If the numbers match, continue the process • If there is a negative variance (deficit), the department will be contacted to fund the deficit with a non-restricted project id • If there is a positive variance (surplus), the following question will be asked…

31. Financial Closeout – Soft Close • Can we keep the funds? • Yes! • The department will be asked for a revolving fund project ID • The direct cost portion of the surplus will be transferred to the department • The indirect cost portion of the surplus will be transferred to the indirect cost pool • No! • A Restricted Funds refund request for the amount overpaid by the sponsor (direct and indirect) will be sent to AP for processing • For most federal grants, when returning funds, an FSR can be revised anytime • If an award is terminated any funds (as specified in the agreement) must be returned to the sponsor • Maybe! • The sponsor has approved the funds to be carried into the next budget period • The department will complete the Carryover Form and submit it to ORD for further processing

32. Financial Closeout – Soft Close • One month later the project status will be changed to “Frozen – Call Financial Services”

33. Financial Closeout – Hard Close • One year after the budget period expiration, Restricted Funds will begin the hard close process • All eUMB codes related to the project id will be marked as inactive. • One month later the project status will be changed to “Closed – Call Financial Services”

34. RECAPRestricted Funds Will….. • Send out 30, 60, 90 day notifications • Send preliminary FSRs to the department for review • Work with departments to ensure that FSRs are accurate and match eUMB • Submit FSRs to external agencies timely and accurately

35. RECAPDepartments Will….. • Perform monthly reviews of all project IDs • Assign a Senior Administrator and/or designee to perform a sample quality review • Adhere to the Administration and Finance policy #3311 – Cost Transfers • Respond to Restricted Funds in a timely fashion so that financial reports can be submitted within the sponsor required timeframe

36. Additional Information

37. Policies – Where can they be found? • Contract and Grant Financial Reporting and Closeout http://www.fincsvc.umaryland.edu/images/ContractGrantCloseout.pdf • Cost Transfer Policy http://www.fincsvc.umaryland.edu/images/CostTransfers.pdf • Contract and Grant Billing and Collections http://www.fincsvc.umaryland.edu/images/ContractGrantBilling.pdf

38. Do you have access to? • eUMB – HRMS and Financials http://www.umaryland.edu/cits/forms/index.html • Raven http://www.fincsvc.umaryland.edu/images/ravenaccess.pdf • Filling out the forms does not give you access. You need…

39. TRAINING!!! • eUMB HRMS, eUMB Financials and Raven http://www.umaryland.edu/eumb/training/training_info_page And access to… • FAS Web http://www.fincsvc.umaryland.edu/images/reqfaswebaccess.pdf

40. Information - Tools - Reports to Help You Manage Individual Project IDs

41. IMPORTANT • Be cognizant of month-end deadlines • Submitting Journals • Clearing Budget Checking Items • Requisitions • Purchase Orders • Vouchers • Journals • Procurement Card

42. PORTAL

43. eUMB FINANCIAL CALENDAR

44. RAVEN Fund 000 – All expenditures Fund 146 – Cost share expenditures Fund 147 – Over the salary cap expenditures Fund 182 – Expenditures reported to Sponsor on cost reimbursable invoices and financial reports Fund 183 – Expenditures on deliverable projects Fund 184 – Expenditures related to stimulus funding (standard) Fund 185 – Expenditures related to stimulus funding (deliverable)

45. RESTRICTED FUNDS PAYMENT REPORT Navigation to the Restricted Funds Payment Report

46. RESTRICTED FUNDS PAYMENT REPORT

47. UMB AR AGING REPORT Navigation to the UMB AR Aging Report

48. UMB AR AGING REPORT

49. A/R ITEM ACTIVITY VIEW Navigation to the A/R Item Activity View

50. A/R ITEM ACTIVITY VIEW