Research Administrators Council September 15, 2003 Sponsored Projects Accounting Update

1. Research Administrators Council September 15, 2003 Sponsored Projects Accounting Update

2. F&A 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? AGENDA

3. FACILITY & ADMINISTRATION (F&A) AND FRINGE BENEFIT RATE UPDATE

4. 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 Time Frame

5. FY2004 Facility and Administrative RatesAnticipated

6. 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% FY2004 Anticipated Fringe Benefit Rates

7. 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

8. 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 Encumbrances at Award Closing

9. Exploring removal of SPA approval requirement for PO’s 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@andrew.cmu.edu Sponsored Project Purchase Orders

10. 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!

11. 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

12. GM Enhancements: New Attributes

13. GM Enhancements: New Attributes

14. 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 Award Close-outs:What are our barriers?

15. ANY QUESTIONS??? THANK YOU!!