Managing Program Income

Desk Procedures

Overview

Roles and Responsibilities Applicable to Business Process

Financial Policies and Procedures

Program Income Oversight Reports Review

Roles Applicable to Sub Process

Run the Program Income Oversight Report UM_FAR_PROG_INCOME_DEPT_DEP and review

Run Program Income Oversight Report UM_FAR_PROG_INCOME_BI and review

Run Program Income Oversight Report UM_FAR_PROG_INCOME_JRNL_ENT and Review

Review Terms and Conditions for Program Income

Roles Applicable to Sub Process

Review Grants for Program Income Terms and Conditions

Notify GA of Missing Grants Terms and Conditions for Program Income

Update Grants Terms and Conditions for Program Income

Determine if Program Income is Reportable or Non-Reportable

Processing Non-Reportable Program Income

Roles Applicable to Sub Process

Create GL Journal to move Program Income to Non-Sponsored Program

Notification to Department of GL Journal to Non-Sponsored Program

Processing Reportable Program Income

Roles Applicable to Sub Process

Add Award Modification Notes for Program Income

Processing Program Income Match Method

Processing Program Income Additional Method (Add/Deduct)

Processing Program Income Deduct Method

Understanding the Program Income Process as it applies to Rate Based Contracts

Rate Based Contracts - Pricing of Program Income Revenue transactions

Rate Based Contracts – Invoicing billable rows including Prog Income

Rate Based Contracts – Budget Adjustments: When and Why

Rate Based Contracts – Billing Limit Adjustments: When and Why

Rate Based Contracts – Reporting Program Income

Rate Based Contracts – Accounting and Revenue Recognition Prog Income

Understanding the Program Income Process as it applies to Amount Based Contracts

Amount Based Contracts – Invoicing/Billing Event Adjustments Prog Income

Amount Based Contracts – Budget adjustments: When and Why

Amount Based Contracts – Reporting Program Income

Amount Based Contracts – Revenue Recognition w/Prog Income

Overview

The Program Income Business Process incorporates delivered Financial System functionality in order to create and collect Program Income revenue transactions into the Project Costing Proj_Resource table for reporting, revenue recognition and, when needed, to utilize billable transactions during invoicing (spend out Program Income prior to invoicing Sponsor). Depending on the Contract product used, (Rate Based vs. Amount Based) will determine the effect these revenue transactions will have on revenue recognition and invoicing.

This document will walk the user through all of the sub-processes that are associated with the Managing Program Income Business Process.

 Program Income Oversight Reports Review

 Review Grants Terms and Conditions for Program Income

 Update Grants Terms and Conditions for Program Income

 Processing Non-Reportable Program Income

 Processing Reportable Program Income

 Understanding the Program Income Business Process as it relates to Rate Based Contracts

 Understanding the Program Income Business Process as it relates to Amount Based Contracts

Frequency / Daily
Module/Tables / Grants and General Ledger
Documents Used / NOA and Program Income Oversight Reports
Approval Points / NA

Roles and Responsibilities Applicable to Business Process

Program Income Oversight Reports Review – AR Accountant

Review Grants Terms and Conditions for Program Income – AR Accountant

Update Grants Terms and Conditions for Program Income – Grant Administrator/AR Accountant

Processing Non-Reportable Program Income – AR Accountant

Processing Reportable Program Income – AR Accountant

Understanding the Program Income Business Process as it relates to Rate Based Contracts – AR Accountant

Understanding the Program Income Business Process as it relates to Amount Based Contracts – AR Accountant

Financial Policies and Procedures

TBD

Program Income Oversight Reports Review

Program Income will be deposited to the Sponsored Program Income Unapplied Cash Account. This account will be reconciled and cleared by Sponsored Financial Reporting (SFR). Three specific Program Income Oversight queries will be used to monitor the activity of this account.

Roles Applicable to Sub Process

AR Accountant

Run the Program Income Oversight Report UM_FAR_PROG_INCOME_DEPT_DEP and review

Detailed description: This report will be used by Sponsored Financial Reporting (SFR) to identify department deposit activity that was recorded against the Sponsored Program Income Unapplied Cash account. After determining what type of program income the deposit represents, SFR will create a GL Journal to apply the program income deposits to a Sponsored Project (if, applicable) and credit the program income revenue account.

This report deals exclusively with program income that originates in Financial System as departmental deposits.

The report will contain the fund, deptid, project number, deposit number, preparer name and phone number.

This process is accomplished by accessing the Financial System Query Manager page, selecting and running the query UM_FAR_PROG_INCOME_DEPT_DEP.

Navigation: Reporting Tools > Query > Query Manager

Query Manager Search Page

Field Values and Search Criteria Descriptions for the Query Manager Search Page

Field / Values Entered / Description
Query Name / UM_FAR_PROG_INCOME_DEPT_DEP / This field is the name given to the query. User can enter the first portion of the name to display the query in a list.

Enter the Search Criteria then click the “Search” pushbutton. If a portion of the query name is used then a list of queries meeting the criteria will display, run from list query UM_FAR_PROG_INCOME_DEPT_DEP.
Click the Run to HTML OR the Run to Excel hyperlink to run the query.

Enter the date prompts for the query – From Date: and To Date: and then click the “view results” pushbutton.
At the Excel Pop up to open file, click “Open”.
Print/Review query results for continued processing in later steps. In review, make sure a Project Number is displayed for each Deposit ID in the query. If a Project number is missing contact the Preparer for the Project Number.

Query Results

Run Program Income Oversight Report UM_FAR_PROG_INCOME_BI and review

Detailed description: This report will be used by Sponsored Financial Reporting (SFR) to identify non-sponsored billing activity against the Sponsored Program Income Unapplied Cash account. After determining what type of program income the invoice represents, SFR will create a GL Journal to apply the program income to a Sponsored Project (if, applicable) and credit the program income revenue account.

This report deals exclusively with program income that originates in the Financial System Billing module.

The report will contain the fund, deptid, project number, project description, invoice number and user name.

This process is accomplished by accessing the Financial System Query Manager page, selecting and running the query UM_FAR_PROG_INCOME_BI.

Navigation: Reporting Tools > Query > Query Manager

Query Manager Search Page

Field Values and Search Criteria Descriptions for the Query Manager Search Page

Field / Values Entered / Description
Query Name / UM_FAR_PROG_INCOME_BI / This field is the name given to the query. User can enter the first portion of the name to display the query in a list.

Enter the Search Criteria then click the “Search” pushbutton. If a portion of the query name is used then a list of queries meeting the criteria will display, run from list query UM_FAR_PROG_INCOME_BI.
Click the Run to HTML OR the Run to Excel hyperlink to run the query.

Enter the date prompts for the query – From Date: and To Date: and then click the “view results” pushbutton.
At the Excel Pop up to open file, click “Open”.
Print/Review query results for continued processing in later steps. In review, make sure a Project number is displayed for each Invoice number in the query. If a Project number is missing, research using the Invoice number to determine the preparer of the invoice and contact the preparer for the Project number.

Query Results

Run Program Income Oversight Report UM_FAR_PROG_INCOME_JRNL_ENT and Review

Detailed description: This report will be used by Sponsored Financial Reporting (SFR) to identify on-line journal entries against the Sponsored Program Income Unapplied Cash account. After determining what type of program income the entry represents, SFR will create a GL Journal to apply the program income to a Sponsored Project (if, applicable) and credit the program income revenue account.

This report deals exclusively with program income that originates in General Ledger on-line journal entry.

The report will contain the journal id, user id, project id, fund, deptID, project description, journal amount, journal line reference and journal date.

This process is accomplished by accessing the Financial System Query Manager page, selecting and running the query UM_FAR_PROG_INCOME_JRNL_ENT.

Navigation: Reporting Tools > Query > Query Manager

Query Manager Search Page

Field Values and Search Criteria Descriptions for the Query Manager Search Page

Field / Values Entered / Description
Query Name / UM_FAR_PROG_INCOME_JRNL_ENT / This field is the name given to the query. User can enter the first portion of the name to display the query in a list.

Enter the Search Criteria then click the “Search” pushbutton. If a portion of the query name is used then a list of queries meeting the criteria will display, run from list query UM_FAR_PROG_INCOME_JRNL_ENT.
Click the Run to HTML OR the Run to Excel hyperlink to run the query.

Enter the date prompts for the query – From Date: and To Date: and then click the “view results” pushbutton.
At the Excel Pop up to open file, click “Open”.
Print/Review query results for continued processing in later steps. In review, make sure a Project number is displayed for each Journal ID in the query. If a Project number is missing contact the “user” for the Project number.

Query Results

Review Terms and Conditions for Program Income

Using the Project number from the Program Income queries, the SFR AR Accountant role will review the Award Profile page – Terms Tab for the Program Income Terms and Conditions; request assistance from the Grant Administrator (GA) when the Program Income Terms are missing the Terms, update the Terms per GA’s direction and determine if the program Income is Reportable vs. Non-Reportable.

Roles Applicable to Sub Process

AR Accountant
Grant Administrator

Review Grants for Program Income Terms and Conditions

Detailed description: The AR Accountant role will access the Award Profile Terms Tab to obtain details of the Program Income Terms and Conditions for the project. The Program Income Terms and Conditions, include the following:

(NOTE: A Non-Reportable Program Income Term and Condition will be added to list of terms)

Navigation: Grants > Awards > Award Profile

Enter the Project number from the Program Income Oversight into the selection criteria of the Award Profile Search Page to access the Award for which the project is related and click the “Search” pushbutton.
At the Award Profile Page, select the Terms Tab, and then click “View All” on the header of the Detail section.

Search for Terms and Conditions that begin with a “PIN...” and note the details on the print out of the Program Income Oversight queries for continued processing in later steps.

Notify GA of Missing Grants Terms and Conditions for Program Income

Detailed description: If the Terms and Conditions for Program Income are missing per the review of the Award Profile Terms Tab, the AR Accountant role will contact (via email) the Grant Administrator of the Award, to provide the missing Program Income Terms and Conditions.

Make a note on the print out of the Program Income Oversight queries that an email has been sent to the Grant Administrator to provide the Program Income Terms.

Update Grants Terms and Conditions for Program Income

Detailed description: The Grant Administrator will review the Notice of Award (NOA) for the Program Income Terms and Conditions and will communicate these terms to the AR Accountant role (via email). The AR Accountant role will then update these Terms and Conditions on the Award Profile – Terms Tab.

See the Award Setup Desk Procedures “Define Terms and Conditions” to update the Program Income Terms and Conditions.

Determine if Program Income is Reportable or Non-Reportable

Detailed description: The Terms and Conditions for the Award will indicate if the Program Income is Reportable or Non-Reportable. Continue as follows:

If the Terms and Conditions indicate that the Program income is “Non-Reportable”, refer to the “Processing Non-Reportable Program Income” sub process within these Desk Procedures.
If the Terms and Conditions indicate that the Program income is “Reportable”, refer to the “Processing Reportable Program Income” sub process within these Desk Procedures.

Processing Non-Reportable Program Income

Since Financial Reporting is not required for Non-reportable program income, the income is deposited to a Non-Sponsored account; it therefore loses its tie to the project. Non-reportable Program Income is handled by External Sales or PTM. If Program Income is Non-Federal and award terms are silent regarding program income, it is considered non-reportable.

Roles Applicable to Sub Process

AR Accountant

Create GL Journal to move Program Income to Non-Sponsored Program

Detailed description: The AR Accountant role will contact the department for a valid Non- Sponsored Chart of Account (COA) string to record the Non- Reportable Program Income. This COA string will consist of the Fund, Dept, and Program. The AR Accountant role will then create a GL Journal to debit the Sponsored Program Income Unapplied Cash account and credit a program income revenue account using the Non-Sponsored chartfields.

Navigation: General Ledger > Journals > Create/Update Journal Entries

Add A New Value Tab

Field Values and Description for the Create/Update Journal Entries – Add a New Value

Field / Values Entered / Description
Business Unit / Enter UMN01 / This field is the Business Unit value for General Ledger This field is required. The U of M General Ledger Business Unit is “UMN01”.
Journal ID / Defaults “Next” / This is the Journal ID that will be assigned to the Journal; keep the default of “Next” and the system will assign the next available Journal ID.
Journal Date / Defaults with Today’s Date / This is the date of the Journal; keep default of Today’s Date.

Enter the “Add a New Value” values then click the “Add” pushbutton and the Journal Header page will be displayed.

Journal Header

Field Values and Description for the Journal Header page

Field / Values Entered / Description
Ledger Group / Actuals / This field is the Ledger Group for which the entry will be recorded.
Source / ONN / This is the source of the Journal Entry – ONN – Using this Source will not require a Certified Approver.
Journal Class / 10010 / This is the Sponsored Financial Reporting DeptID.

Enter the “Journal Header” values then click the “Lines” tab and the Journal Lines page will be displayed.

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Journal Lines

Field Values and Description for the Journal Lines page

Field / Values Entered / Description
Fund / Enter valid Fund / This is the Fund value for the Journal Line; Sponsored Fund values begin with 3XXX. This is required.
DeptID / Enter DeptID / This is the DeptID value for the Journal Line. This is required
Program / Enter Program; if applicable / This is the Program value for the Journal Line; required for Non-Sponsored or Cost Share Journal Lines.
PC Bus Unit / Blank / This is the PC Bus Unit value for the Journal Line; This is required for Sponsored Journal Lines (UMSPR)
Project / Blank / This is the Project value for the Journal Line; This is required for Sponsored Journal Lines.
Activity / Blank / This is the “Project” Activity value; this value will always be “1” for Sponsored Journal Lines ONLY or Blank for Non-Sponsored Journal lines.
Analysis Type / Blank / This is the Analysis Type value and is required for Sponsored Journal Lines ONLY.
Account / Enter Account / This is the Account value for the Journal Line; this is the COA Level 3 Actuals account value.
Amount / Enter Amount / This is the Amount of the Journal Line.
Reference / Project ID – Do not enter on Non-Sponsored line / This is the Journal Line Reference field – enter the Project Number – Only on the Journal Line for the Sponsored Program Income Unapplied Cash account.

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Enter Journal Line 1; enter values to debit the Sponsored Program Income Unapplied Cash account using an appropriate chartfield string. The required chartfields string is Fund, DeptID, and Account. (Include the Project ID in the Journal Line Ref Field)
Enter Journal Line 2; enter values to credit a Program Income Revenue account using an appropriate Non-Sponsored chartfield string. The required chartfields string is Fund, DeptID, Program and Account.
In the “Process” drop down box at the top of page select “Edit Journal”; then click the process pushbutton to edit the journal.