Module 4 Project Management

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Module 4Project Management
Sponsored Programs at Penn

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Project ManagementAgenda

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

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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

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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

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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)

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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

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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 gt 5,000 unless
  purchase is with a University Contract Supplier
  or with a supplier participating in the Penn
  Marketplace.

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Issues Surrounding Specific Expense Categories
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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

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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 trips purpose
• Foreign air travel paid with federal funds must
  be on US-flag air carriers
• Limited exceptions

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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.htmlpage
  1

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Consultants

• Evaluate Consultant, Employee or Subcontractor?
• Use C-12 Independent Contractor Determination
  Certification
• http//www.finance.upenn.edu/comptroller/tax/contr
  actor_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

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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
• Dont buy capital equipment at end of project

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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

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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 FA
  charges

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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

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Monitor Expenditure Rates

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

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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.

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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

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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

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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

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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

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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

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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

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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?

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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

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Reporting Tools
There are so many reports Im not sure where to
look first.
Ben Reports
BEN FINANCIALS
PennERS
Business Objects
GRAMS
SALMGMT
PennERA
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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

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

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Management of All Grants in ORG
BUSINESS OBJECTS ORG Summary.rep by Fund, PI, Acct End, receivables, overdrafts, funds freezing, late/due FSRs, Analysis of expired funds, Illegal object code charges, possible FA direct charged to Fed grants, payroll compared to budget. Grantmonitor.rep PBIL/PBUD/Budget, NCC Due, Awards Due, Revenue Check, Overdrafts (active and expired), Federal Cash, CT Cash, Residual Balances, Receivables Subbudgets.rep our charges to others Otherorgschgs.rep ORGpersonnel.rep all current distributions Paylate.rep funds with pay after termination Award Analysis- Award Date.rep PT-Proposals.rep JE inquiry (by batch between dates).rep FY Grant ORG Expense Analysis.rep Effort Report Home Dept ORG.rep Object code by fund posted org.rep Object code by fund detail AIS (full search).rep BEN FINANCIALS 132.ORG List of Terminated GC Funds 133.ORG List of GC Funds Due to Close 138.ORG Frozen Fund List 201.SCH PJTD Rev/Exp for GC/URF 202.SCH YTD Rev/Exp Totals for Funds 211.SCH PJTD Rev/Exp Outline for GC/URF 212.SCH YTD Rev/Exp Outline for GC/URF 301.BUD Budgetable Amount - Grants/Contracts 306.BUD Negative BBA ORG/FUND/CREF PJTD
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Fund Level Management
BUSINESS OBJECTS fundsummary.rep summary by ORG/CNAC SNAP/NCC estimated unobligated balance Fundsummaries for RESP ORG.rep Fund Detail.rep monthly matrix all expense monthly matrix personnel paid Effort Report Fund.rep GRANT REPORTS.rep PI friendly monthly payroll and expense detail GRANT REPORTS PI.rep GRANT REORTS Resp Org.rep BEN FINANCIALS 102.ORG Summary GC by CNAC/ORG/FUND 103.ORG Summary GC by CNAC/ORG/FUND/CREF 115.ORG Grant Fund Summary Report 130.ORG PI Report by CNAC/ORG/FUND 134.ORG Summary of Final Expenditure Report (available for grants in adjustment period) 137.ORG Grant/Contract Budget Period Summary
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Expense Detail
BUSINESS OBJECTS Fund Detail.rep Payroll by Obj, by Person,Exp Detail by Object, Org, Acct Period, P.O./User Fund Detail PI.rep monthly matrix of personnel paid on PI grants Payroll.rep (any fund any period of time) variations include All grants of PI All grants of Resp Org Personnel.rep (any person, any period) Personnel-one (any persons current distrib) Detail.rep variations include All grants of PI All grants of Resp ORG subcontracts object special budget operating budget cash deposits Encumbrances(Fund).rep Waywards.rep BEN FINANCIALS 150.ORG Detail by CNAC/ORG/FUND 151.ORG Detail by CNAC/ORG/FUND/CREF 152.ORG Detail by CNAC/ORG/CREF 153.ORG Detail by CNAC/ORG/FUND/PROG 155.ORG Detail Extract 156.ORG Detail by CNAC/ORG/FUND/PROG/CREF 160.ORG Account Analysis with payables detail 163.ORG Open Encumbrances Report 301.BUD Budgetable Amount - Grants/Contracts 304.BUD Negative BBA ORG/FUND YTD 305.BUD Negative BBA ORG/FUND/CREF YTD 306.BUD Negative BBA ORG/FUND/CREF PJTD 315.BUD Posted Budget Journal with Exceptions 507.GA Posted Journal Activity Report 508.GA Unposted Journal Activity Report 510.GA Detail Transaction by OBJECT by ORG
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Your assignment

• Full documentation of the Business Objects
  Queries is available at
• http//www.upenn.edu/computing/da/dw/financial_que
  ries.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.

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ORG Summary.rep
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ORG Summary - Analysis of Expired Funds
Why isnt my fund disabled?
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ORG Summary possible FA
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Fundsummary.rep- Estimating the Unobligated
Balance
Make sure the formula toolbar is visible and
checked under View Toolbar.
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Grant Reports.rep
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Grant Reports.rep
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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.
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Otherorgschgs.rep Waywards.rep
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Effort Report - Fund
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Effort Report - Fund
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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

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• Questions???