Cost Sharing…What It Is, How It’s Processed and What That Means To You…

1. Cost Sharing…What It Is, How It’s Processed and What That Means To You… School of Social Work Auditorium March 28, 2007

2. Agenda • Cost Sharing Terms Defined • Cost Sharing Accounting Model • Collect Costs Processing in eUMB • Transfer of Funds Sweep in eUMB • Tracking Cost SharingProjects in RAVEN

3. Definition of Terms Cost Sharing: A use of university resources or funding that supplements externally sponsored projects.

4. Definition of Terms • Voluntary Committed Cost Sharing - Cost sharing that is offered in an application or proposal or other communication to the sponsor. Must be recorded in eUMB. • Mandatory Cost Sharing – 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. Must be recorded in eUMB.

5. 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. • Identified in eUMB by assigning two Fund chartfields to a single Project ID: • Over the Salary Cap: Funds 147 (Standard Grant) and 149 (Deliverable Grant) • Mandatory Cost Sharing Charges: Funds 146 (Standard Grant) and 148 (Deliverable Grant)

6. 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 runs 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

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

8. Expenses Revenue 0906 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 Expenses

9. 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 3/4xx 500 Revenue Revenue ALO 0906 125,000 63,500 Transfer of Funds “Sweep” Department Funding Campus Funding ALO 2210 150,000 ALO 27xx 37,500 ALO 4851 1,000 Accounting Entries

10. 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

11. Do’s and Don’ts Do’s • Departments must provide Cost Analysis with ONE department funding chartstring. • Any changes to the department funding AFTER the monthly process MUST be done by journal entry. • MUST use another unrestricted source of funds ONLY • MUST use account 2210 or 4851on both sides of the entry. QA will deny all journal entries that do not comply! • Any erroneous charges (or credits) to the companion chartstring must be adjusted by journal entry and this adjustment will be picked-up in (and adjusted accordingly) in the monthly transfer process Don’ts • DO NOT use Revenue source 0906 EVER on any journal entry. Again, QA will deny the journal.

12. Tracking Cost SharingProjects in RAVEN RAVEN DEMO: • What was my dept’s cost sharing obligation…for Over Salary Cap, for Mandatory Cost Sharing for Salaries, for operating expenses, for last month (any month) and FYTD? • View a listing of my department’s projects with cost sharing.

13. What Does All This Mean… • Records formally in eUMB the University’s cost sharing obligation as defined by campus policy • Allows the University (departments, dean’s offices, central offices) to monitor, track and report on cost sharing obligations • Maintains the integrity of the original charges within its respective project ids (chartstring) • Mitigates the eroding of the UMB Facilities and Administrative (F&A) cost rate

14. Next Steps