Research Administrators Council

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• Research Administrators Council
• September 15, 2003
• Sponsored Projects Accounting Update

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AGENDA

• FA and FB Rates / Negotiations
• Expenditure Transfers Effect on Billing/COH
• Encumbrances at award close out
• Sponsored Project purchase orders
• Revenue recognition and negative cash flow as a
  result of overspending and task funding
  allocations
• New Attributes
• Award Close-outs What are our barriers?

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FACILITY ADMINISTRATION (FA) AND FRINGE
BENEFIT RATE UPDATE
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Time Frame

• Rates submitted May 2, 2003
• DCAA audit complete by July 31, 2003
• Negotiations with ONR on August 18 - 19, 2003
• Anticipate final rates by September 29, 2003
• Will adjust all July/August fringe benefit and
  overhead charges in September business

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FY2004 Facility and Administrative
RatesAnticipated
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FY2004 Anticipated Fringe Benefit Rates

• Full Time Faculty and Staff 25.00
• (charged to Federal awards and separately
  budgeted recharge centers)
• Full Time Faculty and Staff 28.28
• (charged to Non Federal awards and all other
  university centers for dependent tuition
  remission)
• Part Time with Benefits 18.50
• Part Time w/o Benefits 10.00

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Expenditure Transfers Effect on Billing and
Cash on Hand (COH)

• Agencies with LOC quarterly reconciliation by
  award
• DHHS NIH HRSA CDC
• NSF
• Agencies with monthly billing by award
• DOD NASA ONR DARPA
• Transferring expenditures off of an award is very
  visible to agencies with monthly billing by award
  especially if there are not incremental
  expenditures
• Weigh the Risks
• Transfer procedures internal controls
• Creates COH / interest repayment situation
• De-obligation of funding by agency

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Encumbrances at Award Closing

• Encumbrances remaining at award closing will be
  cleared against the closed award (regardless of
  award status and closing dates) if they are not
  cancelled
• Encumbrances need to be closed by the purchasing
  agents in the departments SPA reps do not have
  this ability

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Sponsored Project Purchase Orders

• Exploring removal of SPA approval requirement for
  POs exceeding 1000
• Will require departments to more closely monitor
• equipment purchased in final 90 days of awards
  maintain justification
• Contract terms regarding allowability
• Send any concerns to dsommer_at_andrew.cmu.edu

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Overspending/Task Funding Allocations

• Award/Task funding issues have significantly
  improved!
• From approx 3 million in April 2003 to 350
  thousand at June 30, 2003
• These are AWESOME results
• Challenge keep the figure from rising again!

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Overspending/Task Funding Allocations

• 2.4 million in overspending is recorded at June
  30, 2003 - exclusive of awards At Risk and
  award/task funding allocation issues
• We need to prioritize identification of
• Cost sharing awards / batches
• Designation of At Risk
• Funding corrections

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GM Enhancements New Attributes
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GM Enhancements New Attributes
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Award Close-outsWhat are our barriers?

• SPA 5 day dept turn-around requirement for formal
  award reconciliation
• Usually approx 70 days after award end date
• Reports are due to agencies within 90 days of
  award end dates
• What are the department barriers 5-day
  turnaround?
• What steps can be taken to facilitate the closing
  process?
• Accurate burdening w/in Oracle to reduce
  adjustments at closing fixed rates for life
  and patches in Oracle should significantly
  decrease incidence
• Financial review of awards at end dates versus
  at reconciliation
• Additional Oracle alerts
• Monthly notification of web reports to award
  project managers

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THANK YOU!!

• ANY QUESTIONS???