UIS Post Award Financial Policy and Procedures Manual
University of Illinois at Springfield
Office of Business and Financial Services
Grants and Contracts Accounting
Post-Award Policy and Procedures Manual
A Guide for Grants and Contracts Post-Award Administration
Office of Business and Financial Services
Grants and Contracts Office
University of Illinois at Springfield
One UniversityPlaza MS BSB 98
SpringfieldIL 62703-5407
Phone 217.206.7849 Fax 217.206.6298
January 1, 2008
1
UIS Post Award Financial Policy and Procedures Manual
Table of Contents
Post-Award Financial Policy and Procedures Manual
The purpose of this manual is to provide links to guidelines and information about the treatment of costs of sponsored program funds. Post-Award Administration must comply with University and State policies and procedures as well as the requirements of OMB (Office of Management and Budget) Circular A-21 and the related Cost Accounting Standards.
For questions or comments, send an email to .
Section 000 General Guidelines
GCA 001 Introduction
GCA 002 Purpose of the Manual
GCA 003 Grants Accounting Mission & Goals
GCA 004 Administration of Sponsored Projects
GCA 004-01 Pre-Award Administration
GCA 004-02 Post-Award Administration
GCA 006 Award Acceptance
GCA 006-01 Types Of Agreements and Instruments
Section 100 General Award Administration
GCA 101 Sponsored Project Responsibilities
GCA 101-01 Departmental Accounting Staff/Principal Investigator (PI)
GCA 101-02 Grants and Contracts Office Post Award Administration
GCA 102 Award Approval & Set Up
GCA 103 Expanded Authorities
GCA 104 Project Accounting
GCA 105 Cost Policies
GCA 105-01 Cost Classification: Assigning Account Codes
GCA 105-02 Allowable Direct Costs
GCA 105-03 Unallowable Costs
GCA 105-04 Facilities and Administrative Costs (Indirect Costs)
Section 200 Specific Administration of Awards
GCA 201 Revenue
GCA 201-01 Program Income
GCA 201-02 Revenue Transfers
GCA 201-03 Electronic Receipt of Grant Funds
GCA 201-04 Monitoring Receipt of Scheduled Payments
GCA 201-05 Invoicing Grants and Contracts
GCA 201-06 Accounts Receivable
GCA 201-07 Deposits
GCA 202 Expenditures Approvals
GCA 202-01 Invoice Approvals on Grant and Contract Funds
GCA 202-02 Invoices for Fixed Assets
GCA 202-03 Invoices Paid on Grant and Contract Funds
GCA 202-04 Special Approvals
GCA 202-04.1 Year End Budget Journal Vouchers
GCA 202-04.2 Travel Approvals (paper)
GCA 202-04.3 Document Status or Approval Queue Information
GCA 202-04.4 Document Approval History
GCA 203 Expenditures
GCA 203-01 Cost Overrun
GCA 203-02 Overdrafts and Disallowances
GCA 203-03 Cost Transfers/Redistribution
GCA 203-04 Post-Audit of Labor Redistribution Expenditures
GCA 203-04.1 Labor Redistribution Review Procedure for Sponsored Projects
GCA 203-05 Semi-Annual Expenditure Confirmation
GCA 203-06 Effort Reporting
GCA 203-07 Cost Sharing
GCA 203-08 Coding Unallowable Personnel Expenditures
GCA 203-08.1 Direct Charges to Sponsored Projects
GCA 209 Subcontracts
GCA 209-01 Encumbering Subcontracts
GCA 209-02 Subcontract vs. Procurement
GCA 209-03 Managing Subcontracts
GCA 209-03.1 Responsibility of PI and Department
GCA 209-03.2 Responsibility of Subcontractor
GCA 209-03.3 Responsibility of the Grants and Contracts Accounting Office
GCA 209-04 Monitoring of Subrecipient’s
Section 300 Closeout and Audit
GCA 301 Closeout of Award
GCA 301-01 Close of Award Responsibilities
GCA 301-02 Closing Cost Reimbursement Grants
GCA 301-03 Closing Fixed-Price Grants/Contracts and Non-Refundable Grants
GCA 301-04 Equipment Closeout
GCA 302 OMB Circular A-133 Audits
GCA 302-01 Rights to Audit
GCA 302-02 Audit Coordination and Results
GCA 302-03 Record Retention
Section 500 Banner Processes
GCA 501 Establishing the Grant Fund
GCA 501-01 Request for New Grant Code
GCA 501-02 Budgeting
GCA 501-03 Payroll Management
GCA 501-04 Anticipated Awards (Advance Fund Requests)
GCA 501-05 Supplements to Awards
GCA 501-05.1 Continuation Projects
GCA 501-05.2 Renewal Projects
GCA 501-05.3 Transferred Projects
GCA 501-06 Grant and Fund Code Creation
GCA 502 Banner Screens
GCA 502-01 Guide to Banner Finance Forms
GCA 503: Journal Vouchers
GCA 503-01 Income Account Codes
GCA 503-02 Transferring Procurement Card Purchases
GCA 503-03 Additional Information on Journal Vouchers
GCA 503-04 Journal Voucher Do’s and Don’ts
GCA 506 Approval Routing
GCA 507 Month End Closing Process
GCA 508 NACUBO Function Codes & Banner Program Codes
GCA 508-01 NACUBO Function Codes, Titles, and Definitions
Section 600 Grants Accounting Office Information
GCA 601 Purchasing Procedures
GCA 602 Accounts Payable
GCA 603 Travel Expenditure Procedures
Appendix
Where do I go for help?
Acronyms
Glossary
Guidelines and Regulations
Federal Agencies
State of Illinois
University of Illinois
Reference Sites
UIS Websites
Campus Administrative Manual
Other Reference Websites
Grants and Contracts
1
UIS Post Award Financial Policy and Procedures Manual
Section 000General Guidelines
1
UIS Post Award Financial Policy and Procedures Manual
GCA 001 Introduction
Grants and Contracts Accounting Manual
Section 000 General Guidelines
Effective January 1, 2008
The University conducts sponsored research, teaching, and other projects funded by sponsors outside the University. To ensure that funds provided from these external sources are administered in accordance with University policies, as well as those of the sponsor, all externally sponsored projects for research or other purposes will be administered through the Grants and Contracts Accounting Office, a division of the Office of Business and Financial Services, in accordance with established University policies and procedures. External sources include both governmental and private organizations.
1
UIS Post Award Financial Policy and Procedures Manual
GCA 002 Purpose of the Manual
Grants and Contracts Accounting Manual
Section 000 General Guidelines
Effective January 1, 2008
1
UIS Post Award Financial Policy and Procedures Manual
Welcome to the UIS Grants and Contracts Accounting Office located at BSB 85. The Grants and Contracts Accounting Manual was designed to be used with the OBFS Policies and Procedures Manual, Banner Resources and Training Manuals, and any other related resource, policy, procedure and/or regulation. Many forms required for grant and contract transactions are included on the OBFS Website.
This manual is intended to document post-award policies and procedures for externally sponsored agreements. It is organized around the post-award activities of a sponsored agreement beginning with procedures for award acceptance and setting up the Grant Code and Fund in Banner, to monitoring active agreements and finally their closeout and final financial reporting.
The GCA Manual is maintained by the Grants and Contracts Office located within the Office of Business and Financial Services. We are interested in your comments and suggestions as users of the manual. Please send your questions, problems you have encountered using the manual, topics you would like included in the future, or other comments to the Coordinator of Grants and Contracts at or call 217-206-7849.
The federal government provides detailed regulations in the Office of Management and Budget (OMB) Circular A-21 and OMB Circular A-110. This Manual provides a summary of both the applicable federal regulations and University financial policies, in addition to links to resources providing more details, and contact information for individuals who can also be of assistance.
The GCA Manual assists in accomplishing several important tasks:
Ensure the proper administration of sponsored agreements.
Ensure compliance with all applicable state and federal regulations.
Properly identify costs for reporting and Facilities & Administrative rate determination.
Properly report all funds received by UIS.
Provide financial monitoring and reporting for sponsored agreements.
Prepare required financial reports and invoices for receipt of sponsored funds.
All sponsored agreements are set up in Banner. The degree of deviation allowed by the granting agency varies widely from complete discretion by the project director to requiring agency approval for all changes. The reporting of expenditures also varies in the amount of detail required and the frequency of the reports.
Users of this manual will find it most helpful by referring to all parts containing information on a given topic. For instance, Section006 includes brief descriptions of terms or topics, some of which may appear in other parts of the manual with more detailed information and instructions. For these, a link is provided to the detailed section. General policies may include procedures for obtaining approvals, which are pertinent to other areas of the manual, so cross-referencing is important.
Each part contains numerous links to laws, regulations, policies or guidelines available on the World Wide Web. Because website addresses frequently change, the GCA Office will make every attempt to keep these links current, but users should feel free to call the office if a web link is in error. Additionally, GCA expects to complete or revise topics and sections throughout the year, so users are encouraged to refer to the manual often for the most current and thorough information.
Where appropriate, reference is made to the specific University policy and/or procedure on Sponsored Project administration. Please be mindful that the University of Illinois Business and Financial Policies and Procedures manual and/or other University of Illinois policy and procedure, and state and federal regulations may supersede portions of this manual.
For additional information on the policy-governing acceptance of grants and contracts, refer to the General Rules Concerning University Organization and Procedureor theAcademic Staff Handbook. The homepage for the Grants and ContractsOffice also provides links to various regulations, policies, and forms.
While every attempt is made to keep the materials herein timely, ultimately the most current information will be found in specific sponsor documentation and award documents. Refer to the Grants and Contracts Office homepage for updates, pending changes and for access to the most current Facilities and Administrative and Fringe Benefit rates.
In the event of an inconsistency or conflict, applicable law and Board of Higher Education policies supersede University policies and university policies supersede college, department or lower unit bylaws, policies, or guidelines.
The University reserves the right to add, amend, or revoke any of the contained rules, policies, regulations, and instructions or incorporate additional ones, with or without notice, as circumstances or the good of the university community may require.
1
UIS Post Award Financial Policy and Procedures Manual
GCA 003 Grants Accounting Mission & Goals
Grants and Contracts Accounting Manual
Section 000 General Guidelines
Effective January 1, 2008
1
UIS Post Award Financial Policy and Procedures Manual
Grants Accounting Mission: The mission of the University of Illinois at Springfield Grant and Contracts Accounting Office is to provide comprehensive support services to assist UIS Principal Investigators and University Administrators with the post-award management of grants and contracts. This includes the development and dissemination of policies and procedures, ensuring compliance with the rules and regulations of the University and funding agencies, the preparation and submission of related financial reports and invoices, and the maximizing of cash flow. The goal is to provide exceptional service to end users in the University community by minimizing the administrative burden on University faculty and their departments and protecting the interests of the faculty and the University.
Resources: The Grants Accounting department has one Coordinator of Grant and Contracts, and one Grants and Contracts Specialist. For our purposes here, the Grants Accounting Manual will deal with the Post-Award Administration of Sponsored Projects.
Goal and Objectives
The goals of the Grants Accounting Office are to:
Provide efficient and productive customer service.
Ensure proper disbursal and accounting of Federal, State, Local, and private funds, property and assets.
- Establish internal controls to safeguard assets and ensure their proper use.
- Establish written grants accounting policies and procedures.
- Maintain source documentation to support accounting records.
- Monitor proper charging of costs and cost allocation.
- Provide a comparison of actual expenditures with budget amounts for each sub-grant and contract.
- Provide regular financial compliance reviews of all departments and subrecipient’s to determine if they comply with professional standards as well as the requirements of federal, state and local laws and the grant agreement.
Ensure compliance with requirements applicable to federal and state financial assistance programs.
- Establish written policies and procedures for general and program specific requirements as defined by the Federal funding agencies and the State of Illinois.
- Provide regular legal compliance reviews of all departments and subrecipient’s to determine if they comply with professional standards as well as the requirements of federal, state and local laws and the grant agreement.
Serve as the University of Illinois at Springfield’s liaison to funding agencies, other municipalities, local business, and the public.
- Maintain a complete file of information on all grants.
- Compile information required for the State audit.
The specific Office objectives are as follows:
Grants Management
Grants Staff and Management Training
User Expectations – Grants Accounting will provide on-going grants management training to GCA staff and the university research community to continually improve job performance. This training will include a workshop on a particular topic once/twice a year including a policies and procedures class and initial and on-going Banner training provided by OBFS Training staff in conjunction with the GCA staff.
Monitoring – All workshops will be prescheduled through the OBFS Training and posted to the website. Ongoing training provided to departmental staff.
Grants Management Expectations – Supervisors will enable GCA Staff and grants management staff to utilize the training opportunities provided.
Grant Code/Fund Setups
User Expectations – Grants Accounting will set up funds within three working days of receipt of the Request for a Banner Fund for Sponsored Projects form and acceptable documentation from the department.
Monitoring – Fund setups will be monitored using the crosswalk spreadsheet through a series of checks and verifications.
Grants Management Expectations – Department Administration will provide the necessary documentation to Grants Accounting as outlined in the Grants Accounting Procedures Manual.
Grant Fund Closeouts
User Expectations – Grants Accounting will close out the grant within five working days of receipt of notification from the PI that the grant is ready to close. The department will automatically be notified of the impending grant close date 90, 60, and/or 30 days prior to the end of the grant period.
Monitoring – Account closeouts will be monitored using Business Objects reports through a series of checks and verifications. The Grants and Contracts Specialist will pull independent reports. Grants Accounting will automatically send out email notification to the departments 90, 60, and/or 30 days prior to the end of the grant period.
Grants Management Expectations – Department administration will provide notification to Grants Accounting in accordance with the guidelines provided in the Grants Accounting Procedures Manual.
Cash Management
User Expectations – Grants Accounting will generate invoices for eligible expenses within the month following the occurrence of the expense for grant funds requiring GCA billing (GPSI and ILSIP Interns, Moraine Valley NSF, FWS Community Service Interns, and Survey Research funds excluding IDOT). Grants Accounting will monitor the receipt of revenue on all invoices including invoices generated by the departments when the department submits a copy of it’s billing to the Grants Accounting Office.
Monitoring – Report the number of invoices and the dollar amount generated each month to the Coordinator of Grants and Contracts, Post-Award. Run report on a monthly basis for aged balance on invoiced funds.
Grants Management Expectations – Departments responsible for their own billing will conform to the same procedures as the Grants Accounting Office as outlined in the Grants Accounting Procedures Manual.
Cost Transfers
User Expectations – Grants Accounting will approve cost transfers within five working days of receipt of an acceptable FGAJVCD entry or paper Journal Voucher form.
Monitoring – All paper JVs will be stamped with the date and time received and posted to Banner within two working days of receipt when accompanied by appropriate supporting documentation. The Grants and Contracts Specialist will monitor the posting of paper JVs received in the GCO. The Coordinator of Grants and Contracts will monitor the approval of JVs in Banner.
Grants Management Expectations – Department administration will submit cost transfers in accordance with the Grants Accounting Procedures Manual.
Reporting
User Expectations – Grants Accounting will provide to the departments a report of the Notice of Terminating Sponsored Projects and the Sponsored Project Overdraft Notice.
Monitoring – Electronic data file of each report submitted will be kept by the Grants Accounting Department.
Grants Management Expectations – Communicate any discrepancies in reporting to Grants Accounting with three working days.
Subawards
User Expectations – Grants Accounting will ensure that the subcontractor complies with audit, financial and equipment reporting requirements.
Monitoring – Grants Accounting will approve subcontractor vouchers for payment.
Grants Management Expectations – Department administration is responsible for ensuring that payments made to subcontractors are correct in accordance with the Grants Accounting Procedures Manual.
Grants Accounting
F&A Recovery
User Expectations – Grants Accounting will monitor F&A expenses against restricted funds before end of month close. F&A recovery will be recorded for the institution at the same time. Grants Accounting will provide annual estimates of projected F&A cost recovery for various budgeting models.
Monitoring – Grants Accounting will run a Business Objects report each quarter to monitor F&A recovery dollars.
Grants Accounting Expectations – Institutional departments will review F&A expenses against grant terms and budget to confirm appropriateness.
Time & Effort Reporting