Sponsored Programs Accounting Basics for Beginners

Transcript:Sponsored Programs Accounting Basics for Beginners:
Sponsored Programs Accounting Basics for Beginners & Seasoned Research Administrators Grant vs. Cooperative Agreement vs. Contract Grant: A type of financial assistance awarded for the conduct of research or other program as specified in an approved proposal. A grant is used whenever the awarding office anticipates no substantial programmatic involvement with the recipient during the performance of the activities. Cooperative Agreement: An award similar to a grant, but in which the sponsor anticipates having substantial involvement in research activities once the award has been made. Contract: A procurement mechanism for procurement of a product or service with specific obligations for both sponsor and recipient. Typically, a research topic and the methods for conducting the research are specified in detail by the sponsor, often in the Request for Proposal (RFP) which announces the funding opportunity. In general, there are greater performance expectations associated with contracts, including project milestones and detailed deliverables (e.g., reports). The federal government uses contracts for the purpose of acquiring goods and services for the direct benefit of or use by the U.S. government. In other words, the government has decided what it needs, and then looks for an entity that can provide that service or commodity for the best price. Uniform Guidance Purchasing Definitions Uniform Guidance outlines five methods of procurement: micro-purchases, small purchases, sealed bids, competitive proposals, and noncompetitive (sole source) proposals. Each methodology aligns with a dollar range for the purchase. Please note for procurements under a federal award, states and state agencies must follow the same policies used for non-federal procurements and meet other requirements indicated in the outlined standards. K-State’s bid threshold is $10,000. Be sure to communicate to faculty and other researchers to work directly with Purchasing when determining their purchasing needs and the proper course of action to take. Adequate time should be given for the process to work properly. K-State’s Purchasing Procedures can be located: https://www.k-state.edu/policies/ppm/6300/6310.html#srp Uniform Guidance Purchasing Definitions Procurement by micro-purchases. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (§ 200.67 Micro-purchase). To the extent practicable, the non-Federal entity must distribute micro-purchases equitably among qualified suppliers. Micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable. This is for all purchases $10,000 or less. The threshold at K-State encompasses purchases above $10,000 to include the following