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Contracts and Grants Accounting Contracts and Grants Accounting

Contracts and Grants Accounting - PowerPoint Presentation

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Contracts and Grants Accounting - PPT Presentation

CampG Training Presentation May 21 2014 Cost Share Budgeting Spending and Reporting Procedures Effective July 1 2014 Cost Share Commitment Cost sharing committed on a award means designated ID: 671509

share cost budget award cost share award budget providing sharing amp fund dept indirect spending cga cf1 000 200241 gm100 1000004 transactions

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Slide1

Contracts and Grants Accounting

C&G Training PresentationMay 21, 2014

Cost Share: Budgeting, Spending and Reporting

Procedures Effective July 1, 2014Slide2

Cost Share Commitment

Cost sharing committed on a award means designated costs

are covered by the University, not by

the sponsor.

Commitment may include salaries, equipment/supply purchases, waived F&A, etc., as defined in the award documentation and allowableCost sharing can be funded by donations/gifts, in-kind contributions, start-up or retention funds, or non-federally sponsored funding source (provided it has been approved)Once a cost sharing commitment is made, cost share becomes mandatory and the University is required to measure, track, report on, and meet that commitment. UCOP requires a centralized tracking system to capture committed cost sharing amountsNew C&G functionality facilitates the identification of cost share transactions throughout the life of the award

2Slide3

3

Current Challenges

System and Process to Address Challenges

Inconsistent

processes across campus for meeting, reporting on cost share commitmentsNew procedures for budget set up, coding and monitoring spending,

and closeout/final report

CGA knows only the $ amount of

the commitment, not how the department plans to fund that commitmentPI’s plan when committing cost sharing $ in the proposal will be used by the RA to create a cost share budget; provide budget to CGA at set-upLack of consistent tracking method (which can result in a single expense being used to meet cost sharing commitments on multiple awards)Each award has a unique cost share CF1 value that is used on all transactions, including salary and F&A (overhead rate auto-calculated, applied)Lack of a consistent recording methodology means there is no way to produce a cross-campus cost share reportProject Costing module in BFS captures all cost sharing transactions (including those not in BAIRS reports) using analysis type and PC ChartFieldsCost sharing treated as an afterthought at the end of the award -- no method to ensure commitment is monitored/met during awardInitial budget establishes how commitment will be met, coding expenses as they are incurred identifies cost sharing transactions in GL

Effective July 1, 2014Slide4

Cost Sharing Process Summary

AWARD SET UP Define budget allocations, amounts based on commitments made in award docs

S

ubmit budget to CGA using new CF1 in

ChartStrings (within 48 hours of NOA)Transfer budgeted allocations via 7xxxx transfer, use the CF1Request ongoing payroll costs (or percentage of payroll costs) be coded with the cost share CF1 ChartString MANAGING TRANSACTIONS THROUGHOUT AWARDCode cost shared expenses, purchases using CF1Throughout the life of the award, department monitors spending against the budgetIf budget revision required, submit one to CGA using budget submission processCLOSE OUT REPORTSubmit Cost Share Contribution Report and supporting

documentation to C&G along

with Closeout Certification (within 70 days of award expiration)

CGA analyst does a final review to ensure that cost share commitments have been met, prepares final report for Sponsor as required, CGA certifies the final report4Slide5

5

Award Setup Timeline

Notice of Award Email from SPO

Submit Complete Budget

Day 0

Day 2

Award Setup Process

Day 3

Spending Authorized

(email

from CGA)

Day 4

Validate Budget, setup award

2 Days

2 Days

At NOA, the CSS-RA/Department has 2 days to submit complete budget information, including cost sharing, to CGA.

When the budget is received, CGA has 2 days to verify accuracy and completeness, setup the award in BFS, then notify CSS-RA/Department.

If

the submitted budget is inaccurate or noncompliant, the award setup will be delayed

.Slide6

Budget at Award Set up

NOA alerts CGA that a new award has cost sharing, and the total committed amount. CGA will create a specific CF1 value in BFS to

use on cost share

transactions (CF1 associates these transactions with the award).

A CF1 value in the 20000-29999 range identifies transactions as cost share when used in a ChartString with a non-grant fund* RA/Department creates the award budget, determining BUDSUM categories (for personnel effort, equipment, travel, unrecovered

IDC, etc.) as well as specific

$ amounts that meet the cost share commitment defined in NOA

Look up the new CF1 in BFS (use the SPO award number) to use in Cost Share rows in award budget, due to CGA within 48 hours of the NOAEach Cost Share row has a F&A row in the budgetOnce the award is activated, unit providing the cost share transfers designated budget in BFS using 7xxxxUnit providing the cost share requests recharge units and payroll use cost share ChartString with CF16*When the fund source for cost sharing is a faculty start-up or retention fund, using a CF1 from the 2 range in combination with that fund “trumps” the Management Code 3 series CF1 requirement.Slide7

7Slide8

Example Budget at Award Set up

Transaction Type

Account

Account

DescriptionFund

Dept

Prg

CdCF1 CF2AmountPC BUProjectActivityAnalysis TypeBudget - COE55000BUDSUM General SuppliesCOE fund

Dept

providing cost share

44

200241

-50,000

GM100

1000004

01

CBU

Budget

57900

BUDSUM Indirect Cost Recovery

COE

fund

Dept providing cost share

80

200241

-25,000

GM100

1000004

01

CBU

Budget -

VCRA

55000

BUDSUM General

Supplies

VCRA: 69749

Dept

providing cost share

44

200241

-50,000

GM100

1000004

01

CBU

Budget

57900

BUDSUM Indirect Cost RecoveryVCRA: 69749Dept providing cost share80200241-25,000GM100100000401CBUBudget -University55000BUDSUM General SuppliesU Fund - EECSDept providing cost share44200241EHSIS-15,000GM100100000501CBUBudget57900BUDSUM Indirect Cost RecoveryU Fund - EECSDept providing cost share80200241EHSIS-7,500GM100100000501CBUBudget -University55000BUDSUM General SuppliesU Fund – Chem EDept providing cost share44200241EEXXX-15,000GM100100000601CBUBudget57900BUDSUM Indirect Cost RecoveryU Fund – Chem EDept providing cost share80200241EEXXX-7,500GM100100000601CBU

8

The NOA from SPO includes this Cost Sharing Commitment for one fiscal year:College of Engineering $75,000VC Research $75,000Other University funds $45,000 ($22.5 from EECS + $22.5 from Chem E) $195,000 total cost share commitment (DIR+IDC)The budget has a row for each direct cost and associated indirect cost. Using the CF1 provided by CGA in each ChartString identifies the row as Cost sharing.

Here, “Prof. X” from Chem E plans to use his endowment funds for Cost Sharing. Using Prof. X’s CF2 in the ChartString means he will see this in PI Portfolio.

Select the expense category that reflects the award’s spending plan (salary, supplies, etc.)

CGA will create the PC

ChartFields

for each ChartString during the award set up process.Slide9

Coding Direct Costs

along with related indirect costs

Transaction Type

Account

Account Description

Fund

Dept

Prg CdCF1CF2AmountPC BUProjectActivityAnalysis TypeBudget55000BUDSUM General SuppliesGift FundDept providing cost share

44

200241

EHSIS

-

10,000

GM100

1000004

01

CBU

Budget

57900

BUDSUM Indirect Cost Recovery

Gift Fund

Dept providing cost share

80

200241

EHSIS

-

5,000

GM100

1000004

01

CBU

Actual Spending

55040

General Supplies

Gift Fund

Dept providing cost share

44

200241

EHSIS6,000

GM1001000004

01

CAC

Actual Spending

57990

Indirect Cost Recover-C&G

Gift Fund

Dept providing cost share

80

200241EHSIS3,000GM100100000401CFAActual Spending55040General SuppliesGift FundDept Providing cost share44200241EHSIS4,000GM100100000401CACActual Spending57990Indirect Cost Recovery – C&GGift FundDept Providing cost share80200241EHSIS2,000GM100100000401CFA9When budgeting, create a cost share line for each expense category of direct costs (faculty and staff salary and related fringe benefits, equipment, travel, etc.) as well as a line for related indirect costs When spending, use the award’s cost share CF1 in the chartstring. Indirect costs will be automatically calculated at the appropriate rate for each cost- shared direct expense as it is incurred (shaded rows above)Use a non-grant fundUse the cost-share CF1 created for this awardIF the fund used is a faculty-managed fund, use that person’s CF2Slide10

Coding Cost Shared Effort

Transaction Type

Account

Account

DescriptionFund

Dept

Prg

CdCF1CF2AmountPC BUProjectActivityAnalysis TypeBudget50000BUDSUM Academic Salaries19900Dept providing cost share

44

200241

EHSIS

-

10,000

GM100

1000004

01

CBU

Budget

57900

BUDSUM Indirect Cost Recovery

19900

Dept providing cost share

80

200241

EHSIS

-

5,000

GM100

1000004

01

CBU

Actual Spending

50210

Faculty

19900

Dept providing cost share

44

200241

EHSIS

10,000GM100

1000004

01

CPY

Actual Spending

57990

Indirect Cost Recover-C&G

19900

Dept

providing cost share80200241EHSIS5,000GM100100000401CFA10Cost shared effort (even if included without a dollar value in the award docs) needs to be tracked in BFS. At award set up, request HR allocate the appropriate % of salary* to the cost-share chartstring/ CF1 Indirect costs will be automatically calculated at the appropriate rate as salary expense is incurred (shaded row below)In ERS, cost-sharing salary transactions (coded with a CF1) are NOT automatically shown “above the line” in the cost share column.RA/Effort Coordinator must manually adjust Effort Report to reflect appropriate percentage of cost share effort on an award, i.e., move the % above the line*Note: if the employee whose salary will be cost shared is NOT already in the ERS system (i.e., not paid from a federal fund) Payroll will need to add that person to the ERS system.Slide11

Coding Waived F&A

Transaction Type

Account

Account

DescriptionFund

Dept

Prg

CdCF1CF2AmountPC BUProjectActivityAnalysis TypeBudget55000BUDSUM General SuppliesGift FundDept providing cost share44

200241

EHSIS

-

10,000

GM100

1000004

01

CBU

Budget

57900

BUDSUM Indirect Cost Recovery

Gift Fund

Dept providing cost share

80

200241

EHSIS

-

5,000

GM100

1000004

01

CBU

Actual Spending

55040

General Supplies

Gift Fund

Dept providing cost share

44

200241

EHSIS

10,000

GM1001000004

01

CAC

Actual Spending

57990

Indirect Cost Recover-C&G

Gift Fund

Dept

providing cost share

80200241EHSIS3,000GM100100000401CFAWaived F&A on Actual Spending*57990Indirect Cost Recover-C&GGift FundDept providing cost share80200241EHSIS2,000GM100100000401WFA11Waived Indirect (F&A) cost sharing occurs any time the Sponsor and University agree to recover less than the federally negotiated indirect cost rate. If the rate is lower than the current negotiated federal rate and the sponsor has no alternative agreement/policy, approval from UCOP is required The overhead rate that CGA sets up in the system automatically “splits” F&A on expense transactions into the cost shared portion and the waived portion.At closeout, both the cost shared F&A (pink line) and the waived F&A (green line) are reported to the sponsor, depending on the sponsor’s requirements* Waived F&A on Actual Spending is only recorded in the BFS project costing module. It is not available in the GL and therefore not currently availably on BAIRS reports.Slide12

Coding In-Kind Cost Share

Transaction Type

Account

Account

DescriptionFund

Dept

Prg

CdCF1CF2AmountPC BUProjectActivityAnalysis TypeBudget54100BUDSUM Computer Equip InventorDonationsDept providing cost share44

200241

EHSIS

-

10,000

GM100

1000004

01

CBU

Actual Spending

54110

Computer Equipment =>5k

Donations

Dept

providing cost share

44

200241

EHSIS

10,000

GM100

1000004

01

CTP

Actual Spending

57990

Indirect

Cost Recovery (per sponsor

terms)

Donations

Dept

providing cost share

80

200241

EHSIS

GM100

1000004

01

CFA

12

In-kind contributions

represent the value of non-cash contributions (equipment, services) that are a benefit to or are used for award activities. If in-kind contributions are committed as cost share, they must be included in the cost share budget, recorded in BFS, and included on the final reportSponsor terms determine if F&A is charged on in-kind contributions“Spending” in-kind contributions in BFS ensures these assets are used only once and only for one award. Use the award’s specific cost share CF1 in the chartstring to ensure in-kind costs are documented on the Cost Sharing Contribution Report for the sponsor.Slide13

Spending, Monitoring, and Budget Revisions

Department periodically reviews expenses to see that Cost

S

hare transactions meet award commitment

cost share transactions are identified by having a non-grant fund* and a cost share CF1 Department will NOT see cost share F&A or 3rd party on BAIRS report

Periodic Cost

S

hare reports, when required, are generated by RA and CGA and sent to the sponsor along with the invoiceTo revise cost sharing allocations, submit a revised (net 0) budget to CGA13* A very rare exception is Matching Program Income, which allows income earned on a grant to be used for cost sharing.Slide14

Reporting at Award Close

Continue to use the existing Cost Sharing Contribution Report (until such time as a new report is available)

Submit a copy of in-kind contribution documentation

Submit Contribution

Report along with the Closeout Certification form (due within 70 days of award expiration)14Slide15

Contracts & Grants

Implementation Project

15

http://

controller.berkeley.edu/departments/

contracts-grants-accounting

contractsgrants@berkeley.eduSlide16

Cost Share Analysis Types

16

Type

Code

DescriptionSalaries and BenefitsCFRCPYCost Share Fringe

Cost Share Payroll

Budget

CBACBUCost Share Budget AdjustmentCost Sharing BudgetCommitmentsCAJCCOCCRCommitment AdjustmentCost Sharing CommitmentCommitment ReversalOtherCACCFACGECost Sharing ActualsCost Sharing F&ACost Sharing GL ExpenseWaived F&AWFAWaived F&A(third party cost share)(award to award cost share)CTPCAAThird Party Cost ShareAward to Award Cost Share