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Sponsored Programs Accounting

Managing External Funding Welcome & Introductions


Contact Information

Phone Number 325-1937 Fax Number 325-8394 Mail Stop 9602 Location McArthur Hall 4th Floor http://www.controller.msstate.edu/sponsoredprograms/


Process of Fund Set-Up 1. Review of budget and special reporting requirements. 2. Sponsored Programs Accounting will set up a fund number based on the awarding agency. – – – – –

3X0000-3X2999 and 36XXXX Federal 360000-363999 Federal 3X3000-3X4999 State and Local 3X5000-3X6999 Private 307XXX and 308XXX Scholarships


Process of Fund Set-Up 3. Send email to PI and department contact person 4. Cost share fund will be set up to correspond with the sponsor fund. The fund will start with 8 and the last five digits will tie to the sponsor fund. 5. Load sponsor budget and cost share budget to Banner.


Fund Codes

MSU Unit

Sponsor Fund

Cost Share Fund

MSU

30XXXX & 36XXXX

80XXXX & 86XXXX

CVM

31XXXX

81XXXX

MAFES

32XXXX

82XXXX

FWRC

33XXXX

83XXXX

MCES

34XXXX

84XXXX


Budget Sponsor Budget Cost Share Budget 3XXXXX 8XXXXX Category Account Account Salaries 401000 401000 Fringe Benefits 403000 403000 Tuition 403981 403981 Travel 404000 404000 Contractual 405000 405000 Subcontract 405795 Commodities 406000 406000 Equipment 408000 408000 F&A 4059XX


Calculate F & A – EXAMPLE Total Cost Less Tuition & Fees Less Equipment 1st $25K on Subcontract Modified Total Direct Cost Multiply by F&A Rate F&A Costs

453,000 (3,000) (60,000) 25,000 415,000 44% 182,600

Please Note: There May be other costs that should be excluded. This will be dictated by the sponsor.


Indirect Cost Rates 

Cost Reimbursable Funds – Indirect will be calculated on actual expenditures

Fixed Price Funds – Indirect will be posted for the budgeted amount if all funds are received.

See Indirect Cost Rates – http://www.controller.msstate.edu/docs/FArate_fy2008.pdf

Important – Be sure to use the Indirect Rate that corresponds to the activity.


Invoicing Requirements 

Sponsored Programs Accounting will invoice the sponsor based on the terms in the award. A copy will be sent to the department for their information. Second Notices will be sent after 45 days past due. A copy will be sent to the department for their information.


Cost Share / Match  

Review contract for cost share requirements. All cost share expenditures much be incurred within the cost share fund. Any cost required to complete the objectives and not covered by the sponsor should be considered cost share. Use form Request for Budget Transfer


Reconciliation and Project Close-Out 

Reconcile the restricted fund. The monthly reconciliation should be reviewed by the Principle Investigator. Sponsored Programs Accounting will prepare a close-out sheet to ensure that all cost are included in the final invoice to the sponsor. This should be reviewed and signed by the budget manager and the PI. Any charges discovered after the final has been submitted will have to be covered by the department if the sponsor will not accept a revised invoice. If this is discovered after the due date of the final, a revised invoice will not be submitted.


Fixed Price and Residual Balance Policy 

All direct costs incurred as a result of performing the scope of work must be expensed directly to the project. If there is a residual balance, prior to any transfers, SPAccting will: – Recover indirect cost that has been waived up to the federally negotiated rate based on expenditures. – If residual balance is less than $100, transfer residual to department’s residual fund. – If residual balance exceeds $100, send an email to the department requesting the Certification of Expenditure form.


Cost Transfers 

Cost transfer is moving a cost from one fund to another. Cost transfer should be applicable and allowable on the project the expense is being moved to. Cost transfers should be done as timely as possible. Cost transfers done more than 90 days after the date of the expenditure will have to be explained and may not be allowed. If not allowed the charge will have to be covered by departmental funds.


Internal Budget Revisions ď Ź

ď Ź

If Sponsor approval required, send request to Sponsored Programs Administration to send to the sponsor for approval. If Sponsor approval not required, complete the Restricted Fund Change Request Form and send to Sponsored Programs Accounting for entry into Banner.


Time and Effort Report  

Required per OMB Circular A-21 Print twice a year for 12 month employees and three times a year for 9 month employees. If the level of effort is not accurate, then a Job Labor Redistribution Form should be completed and sent to payroll. The Confirmation of Effort report should be changed for each month and a copy of the JLRF attached. Once the Confirmation of Effort is signed, changes to the effort will require a justification and may not be allowed.


Non-Sufficient Funds Queue 

When you enter a document against a fund that does not have budget in the category, the document will go to the NSF queue. Sponsored Programs Accounting will either approve or disapprove the document based on the terms in the award document. All equipment purchases are approved by Sponsored Programs Accounting. Equipment must be listed in the budget. Do not charge a piece of equipment to two different agencies. Title to the equipment should vest with one entity. If you have a document that is NSF and you have a budget revision in process or approval from the sponsor, email us the information.


How to read the Monthly Ledger Report FWREXDP – Detail ledger report FWGDEXP – Summary ledger report Budget from the award is reflected in the Budget column. The Budgeted Revenue is the amount of the award. The Budget for expenditure categories are then listed. The realized column is cumulative through the ending posting period selected. The current month column is the period selected.


ARRA FUNDS  

American Recovery and Reinvestment Act Funds The fund number is start with 35 – – – – –

350XXX 351XXX 352XXX 353XXX 354XXX

MSU Funds CVM Funds MAFES Funds FWRC Funds MCES Funds


ARRA FUNDS Operating Procedures will be emailed to the department when a fund is set up. Please read, there are a few additional requirements for the ARRA funds. Sponsored Programs will prepare and submit the required quarterly report by the 10th. The principle investigator will need to assist with the quarterly activities and status of project.


Coming Soon…  

More training and communication New policies: – Cost share – Scholarships, Waivers and Restricted Funds – Time & Effort

 

The department will be able to access their award through FRAGRNT in Banner. Improved award notification process. Indirect Cost will be posted to the restricted fund electronically.


Sponsored Programs Accounting

Managing External Funding Questions & Answer

Managing External Funding  

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