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
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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