ÑÇÉ«Ó°¿â

Introduction

The administration and fiscal management of the award will be handled according to which applicant organization was named in the proposal to "house" the sponsored project. Financial post-award staff assigned to a particular award can be from both the ÑÇÉ«Ó°¿â Research Institute; from the ÑÇÉ«Ó°¿â Office of Grant and Special Fund Accounting; or from both.

There are three scenarios for housing and managing external grant and contract awards. The appropriate scenario will be pre-determined at the time of budget and proposal development and submission. The Authorization to Seek External Funding Form specifies the applicant organization and the Proposal Budget Authorization delineates ÑÇÉ«Ó°¿â and ÑÇÉ«Ó°¿â RI budgetary responsibilities. Find both these formsunderÑÇÉ«Ó°¿â Research Institute Forms.There are differences in account maintenance and purchasing and procurement processes, depending on which organization is responsible for the budgetary items.

All Senate grant award recipients follow Scenario Three, given that all funds are spent at ÑÇÉ«Ó°¿â.

Scenario One	Scenario Two	Scenario Three
ÑÇÉ«Ó°¿â Research Institute is Applicant Organization. 100% of funds are expensed at the ÑÇÉ«Ó°¿â Research Institute.	ÑÇÉ«Ó°¿â Research Institute is Applicant Organization. Funds are expensed at both ÑÇÉ«Ó°¿â Research Institute and at ÑÇÉ«Ó°¿â.	ÑÇÉ«Ó°¿â is the Applicant Organization. 100% of funds are expensed at ÑÇÉ«Ó°¿â.

ÑÇÉ«Ó°¿â Research Institute Fiscal Management of Awards

Scenario One:

In this scenario, the ÑÇÉ«Ó°¿â RI is the applicant organization and all funds are maintained and expensed through the ÑÇÉ«Ó°¿â RI. All expenses are listed in the ÑÇÉ«Ó°¿â RI column of the Excel budget template. There are several types of financial accounts available at the ÑÇÉ«Ó°¿â Research Institute. The type of account the award is eligible for depends upon the originating funding agency parameters and ÑÇÉ«Ó°¿â and ÑÇÉ«Ó°¿â RI guidelines. Appropriate forms and restrictions are detailed more explicitly in the Administrative Working Policies available on the ÑÇÉ«Ó°¿â RI website or by contacting the ÑÇÉ«Ó°¿â RI. The designated point of contact at the ÑÇÉ«Ó°¿â RI will review all expectations and processes with the project director at the time of the award. Upon award notification, the Office of Fiscal Affairs at the ÑÇÉ«Ó°¿â RI will establish the sponsored activity account in Banner. The project director and financial administrator (if named) will receive an e-mail providing all pertinent information for accessing, monitoring, and expensing funds out of the RI Sponsored Activity account.

Scenario Two:

In this scenario, the ÑÇÉ«Ó°¿â RI is the applicant organization but ÑÇÉ«Ó°¿â and ÑÇÉ«Ó°¿â RI share the responsibilities for maintenance and expensing of the funds. Expenses may be listed in both ÑÇÉ«Ó°¿â and ÑÇÉ«Ó°¿â RI columns or all in the ÑÇÉ«Ó°¿â column. The factors determining the appropriate party for fund maintenance are allowability and efficiency. Salaries, wages and benefits of ÑÇÉ«Ó°¿â personnel MUST be maintained by ÑÇÉ«Ó°¿â. The ÑÇÉ«Ó°¿â RI will forward award documentation to the appropriate offices and divisions at ÑÇÉ«Ó°¿â. Upon award notification, the Office of Fiscal Affairs at the ÑÇÉ«Ó°¿â Research Institute will establish the sponsored activity account in Banner for the budgetary items identified as ÑÇÉ«Ó°¿â RI's responsibility on the Excel budget form. The project director and financial administrator (if named) will receive an e-mail providing all pertinent information for accessing, monitoring, and expensing funds out of the RI Sponsored Activity account. For details concerning expenses channeled through ÑÇÉ«Ó°¿â, see Scenario Three.

The Collaborative Agreement:

The Collaborative Agreement is the legal document authorizing ÑÇÉ«Ó°¿â to expend funds as authorized on behalf of the sponsored project administered by the ÑÇÉ«Ó°¿â RI and requires ÑÇÉ«Ó°¿â RI to reimburse for all authorized expenses incurred. Upon award notification, the ÑÇÉ«Ó°¿â RI will forward a completed Collaborative Agreement between the ÑÇÉ«Ó°¿â RI and ÑÇÉ«Ó°¿â on behalf of the project director and sponsored project. A copy of the award documents, scope of work, reporting requirements, terms and conditions of the award, and the approved budget are included with the Collaborative Agreement. Upon receipt of the award notification and Collaborative Agreement, ÑÇÉ«Ó°¿â's Grants and Special Funds Accounting Office establishes the sponsored activity account in SAP for the budgetary items identified as ÑÇÉ«Ó°¿â's responsibility on the Excel budget form and notifies the project director via e-mail.

ÑÇÉ«Ó°¿â Management of Awards

Scenario Three:

In this scenario, ÑÇÉ«Ó°¿â is the applicant organization and all funds are maintained and expensed through ÑÇÉ«Ó°¿â. All expenses are listed in the ÑÇÉ«Ó°¿â column of the Excel budget template. There are several types of financial accounts available at ÑÇÉ«Ó°¿â. The type of account the award is eligible for depends upon the originating funding agency parameters and ÑÇÉ«Ó°¿â guidelines. The ÑÇÉ«Ó°¿â RI will forward award documentation to the appropriate offices and divisions at ÑÇÉ«Ó°¿â. Upon receipt of the award notification, ÑÇÉ«Ó°¿â's Grants and Special Fund Accounting Office will establish the sponsored activity account in SAP for the budget items identified as ÑÇÉ«Ó°¿â's responsibility on the Excel budget form and notify the project director via e-mail.

All Senate grants are spent and administered according to ÑÇÉ«Ó°¿â procedures.

Establishing an SAP Cost Center

Upon receipt of the grant notification letter, the Grants and Special Fund Accounting Office will assign an SAP Cost Center. Two types of cost centers are established for externally funded projects:

1. A restricted fund is established for all project funds paid to ÑÇÉ«Ó°¿â on a cost-reimbursable basis. Expenditures must comply with the terms of the agreement and deviations must confirm to funding source regulations. Unspent funds cannot be spent on other activities and are returned to the funding agency.
2. A special fund is established for "fee for service" and "revenue generating/self supporting" activities. These budgets fund any cost related to that specific program. Funds remaining upon completion of the project remain available for the project director's use.

The approved budget will be posted and the project director receives correspondence from the Grant and Special Fund Accounting Office confirming the cost center. One grant accountant will be the responsible fiscal officer and will serve as the contact person assisting with procedural, regulatory and fiscal matters. After the account is set up, funds are spent in accordance with the approved budget.

Allowable Costs

When awards are from the federal government, cost principles explained in OMB (Office of Management and Budget) Circulars A-21 govern allowable costs. In the case of state and non-federal awards, sponsor requirements determine allowable costs. Your grant accountant or the ÑÇÉ«Ó°¿â RI can advise you on allowable costs.

Availability of Funds

A recipient may charge only allowable costs from obligations incurred during a specified funding period. In certain cases, pre-award costs may be allowed. Your grant accountant or the ÑÇÉ«Ó°¿â RI can advise you on pre-award cost regulations.

Cost Sharing or Matching Funds

If the project includes cost sharing or match, the Grants and Special Fund Accounting Office sets up a matching SAP cost center. All funds listed as match in the grant or contract agreement will be transferred into the matching cost center. For example, if the project director's department has agreed to match the project with $1,000 in work-study funds, the Grant and Special Fund Accounting Office will transfer funds in that amount from the department cost center into the matching cost center. When transferring the match, the designated grant accountant will refer to the Authorization to Seek External Funding form that was signed off on at the time of submission. The designated grant accountant provides the matching cost center number. ÑÇÉ«Ó°¿â must document all cost sharing contributions. Cost sharing commitments are either cash, in-kind, or third party contributions.

Cost Center Monitoring

Project directors or their designated assistants receive SAP training in order to make purchases and monitor the status of their budgets. The designated grant accountant handles changes or corrections to the SAP cost centers.

Monitoring Personnel Expenses

Monitoring the time spent on funded projects is very important, and is used by the grant accountant when preparing reports for the funding agency.

Time and Effort Reports:

Time and effort must be documented at 100 percent, regardless of the percentage of time that the employee is working on a specific project.

Leave Usage:

Grant funded employees accumulate leave according to the terms and conditions of their employment. Project directors should encourage all employees to correctly use and report all leave usage using university procedures. Questions about leave benefits should be directed to ÑÇÉ«Ó°¿â's Payroll Office.

Incurring Other Operating Expenses

The purchasing process differs slightly, depending in the scenario as explained above. For expenses that are the responsibility of the ÑÇÉ«Ó°¿â Research Institute (Scenarios One and Two), the following Purchasing and Procurement through ÑÇÉ«Ó°¿â RI processes govern. For Scenario Three or funds that are the responsibility of ÑÇÉ«Ó°¿â, go to Purchasing and Procurement through ÑÇÉ«Ó°¿â below.

Purchasing and Procurement through ÑÇÉ«Ó°¿â RI:

All grant/contract funds must be expended according to established university procedures. Applicable policies and forms are available on the ÑÇÉ«Ó°¿â RI website. Remember these key points when spending your funds:

• Acquiring of equipment, supplies, and contractual services is made by contacting the Office of Fiscal Affairs or your project development officer at the ÑÇÉ«Ó°¿â RI. The purchasing and procurement officer is knowledgeable on purchasing regulations and restrictions and will process your request in a compliant and timely manner.
• Project directors must use ARAMARK for all catered events held in campus buildings. Phone 724-357-5709.
• The Office of Conference Services assists in making arrangements for workshops or conference activities held on campus. Call 724-357-2227.
• The ÑÇÉ«Ó°¿â RI Office of Fiscal Affairs (purchasing and procurement officer) will make hotel reservations for project travel outside of Indiana and/or for persons who travel to Indiana to consult on or assist in implementing the project. Call 724-357-2223.

The project director initiates and approves all spending of the project budget. The grant/contract SAP cost center is used on all spending documents. When an expenditure transfer is necessary, the project director requests a transfer via e-mail or memo to the ÑÇÉ«Ó°¿â RI project development officer.

Purchasing and Procurement through ÑÇÉ«Ó°¿â:

All grant/contract funds must be expended according to established university procedures. Remember these key points when spending the funds:

• Acquiring of equipment, supplies and contractual services is made online through the SAP system. The grant accountant will assist the project director with establishing signature authority. Those persons designated for data entry can then be trained in SAP procedures for purchasing.
• Printing or marking the grant/contract SAP cost center on mailed documents assesses postage charges.
• The project director must use the ÑÇÉ«Ó°¿â Printing Center for all printing jobs. If the center cannot meet your request, its director provides a waiver before an outside printer is used. Contact the Printing Center at 724-357-2583.
• The project director must use ARAMARK for all catered events held in campus buildings. Phone 724-357-5709.
• The Office of Conference Services assists in making arrangements for workshops or conference activities held on campus. Call 724-357-2227.
• Purchasing Services will make hotel reservations for persons who travel to Indiana to consult on or assist in implementing your project. Call 724-357-2301.
• The project director initiates and approves all spending of the project budget. The grant/contract SAP cost center is used on all spending documents. When an expenditure transfer is necessary, the project director requests a transfer via e-mail or memo to the Grant Accountant.

Budget Revisions

For sponsored awards, budgeting may be related to program evaluation in certain cases. Project directors are usually required to request prior approval for budget and program revisions and must report deviations from approved budget and program plans. Communicate with the project development officer at the ÑÇÉ«Ó°¿â RI before committing or spending money differently from the approved award. Revisions will be made to all pertinent documents and revised copies will be distributed appropriately to ensure compliance.

In the case of most federal non-construction awards, prior approval is required from the funding agency for one or more of the following reasons:

• Change in the scope or the objective of the project (even without budget revision)
• Replacement of a key person specified in the application or award document
• Absence for more than three months, or a 25 percent time reduction to the project, by the project director or principal investigator
• Need for additional funding
• Transfer of amounts for indirect costs to absorb increases in direct costs or vice versa, if approval is required
• Inclusion, unless waived, of costs which require prior approval in accordance with OMB regulations
• Transfer of funds for training allowances (direct payment to trainees) to other categories of expense
• Sub-awards transfer or contracting out of any work unless described and funded in the award. This does not apply to the purchase of supplies, material, equipment, or general support services.

For Senate grant awards, budget revisions may be requested by e-mail to the assistant dean for Research. Requests for revisions must be submitted with a justification.

Financial Reporting Requirements of Sponsor

Per the requirements of the funding source, the ÑÇÉ«Ó°¿â RI in collaboration with the designated grant accountant will:

• Prepare required financial reports
• Invoice the funding source
• Coordinate the close-out process
• Advise the project director of program reporting requirements
• Communicate with the ÑÇÉ«Ó°¿â Office of Internal Review to arrange and coordinate any financial audits required by the funding source.

Project Extension

Under certain conditions, external funding agencies allow a project extension beyond the approved project period if no additional funds are required. Commonly referred to as a No Cost Extension, it must offer a project-related rationale for extending the time period. Contact your project development officer at the ÑÇÉ«Ó°¿â RI to determine the method for requesting an extension. Most funding agencies require a request for extension forty-five days prior to the termination date of the grant.

The terms of the Senate grant awards are communicated to project directors in the initial letter. Senate grants are tied to the fiscal year (July 1-June 30) as outlined in the award letter. Should project directors not be able to complete the project in the approved timeframe, a request for project extension should be submitted to the assistant dean for Research by e-mail. Only awards with adequate justification will be considered for a project extension. Senate funds not spent by the end of the award period will be returned to the University Senate Research Committee to be used to make new awards.

Project Termination and Closeout

Unless an extension is authorized, a recipient liquidates all obligations incurred under the award by the date specified in the award contract or instructions. The awarding agency will reimburse for all allowable expenditures of the project. The ÑÇÉ«Ó°¿â RI and ÑÇÉ«Ó°¿â's grant accountant will work together to refund any balances of unobligated cash that the awarding agency has advanced or paid and that are not authorized for use in other projects.

When authorized, the awarding agency makes a settlement for any upward or downward adjustments to its share of costs after closeout reports are received. The project director will account for any real and personal property acquired with external funds. If the sponsor expects equipment to be returned, contact the designated project development officer at the ÑÇÉ«Ó°¿â RI to facilitate removal from the university's inventory. When the equipment stays at ÑÇÉ«Ó°¿â, it generally becomes the property of the project director's department.

University Policy on Facilities and Administrative (F&A) Costs

Facilities and Administrative Costs are expenses incurred in supporting research or other activities but not directly attributable to just one project. General categories include the cost of facilities, utilities, equipment, and university services such as purchasing, personnel, accounting, or computing. ÑÇÉ«Ó°¿â has a F&A cost rate negotiated with the U.S. Department of Health and Human Services. This rate must be applied to projects that allow for indirect costs at the federally negotiated rate. The current rate is 52.23 percent (on campus) and 23.60 percent (off campus) of total salary and benefit expense and is in effect until 6/30/19.