Grants & Contracts (cont'd)

Purpose: The policy is set forth to minimize the risk of unauthorized use of funds on federal, federal flow-through, foundation and other private grants and contract projects, and to ensure that cost on these projects are within the scope and guidelines of the sponsoring agencies. Therefore, entries in the PeopleSoft General Ledger (PSGL) must be monitored monthly, cost sharing commitments must be met, and close out and reporting must be timely and accurately done.
References: MAPP 05.04.02, SAM 03.G.03
Procedures:
PT. I: Pre Award PT. XI: Contracts/Consulting Agreements
PT. II: Types of Awards and Sponsors PT. XII: Inventory/Equipment on the Grant
PT. III: Interim Funding PT. XIII: Closing Projects in the Department
PT. IV: Allowable vs. Non Allowable Costs (A21) PT. XIV: Record Retention
PT. V: Maintaining a List of Project Cost Centers PT. XV: Audits
PT. VI: Reconciling Projects in the Departments PT. XVI: Accessing Transmittal Forms Submitted Through NSM
PT. VII: Cost Transfers PT. XVII: RD2K Instructions for Loading Technical Reports
PT. VIII: Cost Sharing/Matching Funds PT. XVIII: Federal Grant Newsletters and Guide to Managing Federal Grants
PT. IX: Travel PT. XIX: Allowable/Unallowable Costs on Projects
PT. X: Sub-Recipients    
Review and Responsibility:
  • Responsible Party: Director, NSM Business Operations
  • Review: Every two years, on or before August 31
Approval:
  • Director, NSM Business Operations - Fred McGhee
  • Dean, NSM - John Bear
  • Date of Dean's Approval: 09/01/2008

III. Interim Funding

In the event that costs to the project are being incurred and the award has not yet been executed, OCG will interim fund the project cost center if the PI can confirm in writing that the award is forthcoming and the Chairman of the Department can back the expenditures by approving the written request. Sample memo requesting interim funding.

IV. Allowable vs. Non Allowable Costs (A21)

Project expenditures on all Federal sponsored projects are governed by Circular A-21. In addition each agency or sponsor publishes a guide or policy statement. The DBA should be familiar with the publication. Expenditures must conform to those guidelines as well as all University of Houston requirements. Expenditure Allowable Chart to be used as a quick reference tool.

V. Maintaining a List of Project Cost Centers

A list of all active and open grant and contract projects should be updated and maintained on VReconcile for monthly reviews and reconciliations. (VReconcile is the College's internal financial reporting system). A list of all closed project cost centers without a zero balance must also be maintained and steps must be taken to clear or close out the project. Closed projects with a zero balance will be archived. Projects shared by more than one PI (co-PI) should be created on VReconcile with subaccount cost centers to track each PI expenditure on the project. Each active cost center should have a copy of the "Authorized Signature Sheet" completed and on file. This should be updated at the beginning of each fiscal year. PeopleSoft report UGLS 1063 provides a list of cost centers. PeopleSoft Query "UHS_PROJ_GRT_BY_DEPT" provides the list of grants and contracts cost centers with the grant expiration date and PI name.

VI. Reconciling Projects in the Departments

All contract and grant cost centers must be reconciled monthly and a report showing the budget and the balances for the various categories of expenditures given to the PI. Reconciliation statements must be verified and signed by the DBA. Reconcilers must verify that the monthly salary for each person on the project payroll report matches the information submitted by the PI and is on VReconcile. The total amount on the monthly payroll report should also correspond to the figures on the PS UGL1074 report. Verify payroll encumbrances on project cost centers to make sure they are not beyond the project end date or the termination/transfer date submitted by the PI. Encumber the correct fringe on VReconcile for accuracy in balances given to the PI. Payroll and non-payroll items expended on the UGL1074 should be reconciled to items entered on VReconcile and backup documents for all expenditures should be attached or filed by project. Verify that the correct account codes are used and charges are appropriate for the project. Verify that IDC calculation and encumbrances are correct. Prepare documents (journal, payroll reallocation) for any correction of items posted to suspense or posted incorrectly to the project.

VII. Cost Transfers

The University's cost transfers policy allows 90 days from the original transaction for payroll and other expenditure reallocations. Such reallocations must have a complete explanation of how the error occurred and why it is appropriate to charge it to the project it is being transferred to. Cost transfers over 90 days require the approval of the Director of Contracts and Grants and the transfers should be to a non-grant cost center. A memo outlining what is being transferred, why the error occurred, why it was not corrected in a timely manner and how the charge is appropriate/inappropriate for the project is needed at the time the document is being submitted to OCG for approval. Late fees are a disallowable cost on the project cost center but never-the-less they are charged directly to the project cost center if invoices are not paid on time. These costs must be reallocated within 90 days of the transaction. Payroll and other suspense items must be reallocated within 90 days of the transaction date.

Continue to PT. VIII: Cost Sharing/Matching Funds...