GRANTS CONTRACTS Post-Award Kay Williams

GRANTS & CONTRACTS Post-Award Kay Williams Business Managers Meeting November 14, 2006 FY06 Sponsored Project Statistics Grants created – 1,300  Funds created – 2,000  Non-expired grants – 2,432  Grants in closeout – 1,441  FY06 Sponsored Project Statistics      Total research expenses - $316,857,641 Total sponsor expenses - $403,599,854 Total F & A - $78,005,006 Total Tuition - $10,546,087 Cash collections – $422,880,694 FY 2006 Sponsored Expenditures by College College Engineering Liberal Arts & Sciences NCSA ACES State Surveys Provost & VC Acad Affairs Beckman Institute Applied Life Studies Veterinary Medicine Education Other Grand Total Total Sponsored Total Research Urbana Campus Only $121,562,360 $113,332,024 $77,295,420 $64,053,718 $43,552,010 $38,640,857 $38,597,828 $27,506,227 $27,577,601 $23,623,255 $18,403,533 $11,366 $14,755,007 $14,571,411 $8,408,568 $7,357,387 $7,344,408 $6,406,428 $7,093,456 $3,681,324 $33,780,586 $15,679,330 $398,370,778 $314,863,328 Education 2% All Sponsored Other 8% Engineering 30% Veterinary Medicine 2% Applied Life Studies 2% Beckman Institute 4% Provost & VC Acad Affairs 5% State Surveys 7% ACES 10% Liberal Arts & Sciences 19% NCSA 11% NSF Audit of Labor Costs FY06 NSF Audit of Labor Costs - Objective Evaluate whether the University’s internal controls are adequate to properly manage, account for and monitor salary and wage charges to NSF grants in accordance with the federal Office of Management and Budget (OMB) and NSF grant requirements. FY06 NSF Audit of Labor Costs - Objective Determine if salary and wage charges are allowable, allocable, and reasonable in accordance with Federal cost principles and NSF award terms and conditions. NSF – FY06 Data In September GCO provided to NSF:  Transactions – Finance – 173, 977 – HR – 30,608  778 Grants YTD Total = $92,349,715 of the 778 Grants YTD Salary = $31,139,353  608 NSF – Labor related costs + SALARIES + FRINGE BENEFITS + TUITION +F&A . = 2/3 OF THE ANNUAL NSF EXPENSES (estimated) EPA DoI 1% 1% NASA 2% USDA 5% DoEd 8% Other 4% Total FY 2006 Sponsored Federal Research Expenditures by Agency NSF 35% NSF = 35% of Federal Expenditures DoE 10% DoD 12% HHS 22% Total Federal Federal Agency NSF HHS DoD DoE DoEd USDA NASA DoI EPA Other Grand Total Sponsored $100,986,910 $66,189,478 $36,883,875 $30,852,834 $23,810,418 $14,655,857 $6,837,377 $3,455,501 $3,144,187 $12,828,419 $299,644,855 Total Federal Research $97,196,561 $61,037,273 $32,262,528 $30,702,579 $3,392,221 $13,597,538 $6,559,662 $3,169,501 $2,580,513 $8,829,775 $259,328,152 NSF Auditors Will      Select approximately 30 salary records for detailed review Interview employees and/or Principal Investigators Review appointment letters and related employment documentation Review time records for hourly employees Compare budgeted versus actual expenditures on awards by expense category NSF Auditors Will      Look at semi-annual expenditure confirmation reports Examine supporting documentation used to verify, complete, and sign semi-annual expenditure confirmations Review employee activities in the Activity Reporting System Review cost share records Review University policies and procedures related to payroll distribution and effort reporting NSF Audit - Who NSF Inspector General partnering with Mayer Hoffman McCann P.C. NSF Audit - When November 10 through 24 Preliminary phone interviews NSF Audit - When November 27 through December 8 NSF will be on site to:    Review policies and procedures Review payroll documentation Conduct at least six detailed interviews – faculty and graduate students (not hourly) – GCO and Departmental business office can participate, but restricted from commenting until end of interview NSF Audit - When January 2007 NSF will be on site to: Complete remaining interviews  Finish review of documentation  NSF Audit ??? Potential Questions ???  What work did you do – how related to grants salary is charged to What grant(s) was your work related to How do you determine who is assigned and paid from a grant How do you track your total effort    NSF Audit ??? Potential Questions ???  How do you verify cost share What documentation do you use to confirm salaries charged and cost shared on grant(s)   Who authorizes labor redistributions – why weren’t they initiated in a timely manner PI/DEPARTMENT LABOR DISTRIBUTION AND EFFORT REPORTING Finance Award Document GCO sets up Grant and Fund Codes Departments set up Payroll Appointments at PI’s direction Payroll charged to Sponsored Project PI/Dept review payroll charges Corrections Needed? Yes Department processes Labor Redistributions Payroll corrections posted to Sponsored Project Cost Share Payroll GCO Enters Cost Share Commitments (if applicable) Activity Semi-Annual Reporting Confirmations System (ARS) Cost Share Commitments Pay Data Semi-annual Confirmations submitted to Principal Investigator for verification, correction, and signature Cost Share Commitments Pay Data Departments Identify Activities (Including Cost Sharing) Resulting FTE Data Used for Space Allocation/ F&A Study NOTE ONE BAD AUDIT CAN HAVE A DOMINO EFFECT WE DO NOT WANT TO GIVE OTHER SPONSORS A REASON TO COME VISIT US Don’t forget ------ WE ARE ALL IN THIS TOGETHER Cost Transfers Cost transfers to or from a sponsored project should be:  Initiated promptly (non-current transfers are a red flag to auditors, indicates insufficient monitoring by responsible party) Supported by documentation justifying the transfer   Approved by PI when required (signed GC81 for non-current transfers and other cost reallocations) Costs may NOT be shifted to other sponsored agreements  in order to meet deficiencies caused by cost overruns to avoid restrictions, or   for other reasons of convenience Cost Transfers = Mistakes  Perceived as mistakes Use anticipation funds at project start Suspect when processed at end of project Multiple transfers are a bad reflection of our review processes and systems    Labor Redistribution Review Each month GCO will be selecting a weighted sample for review: – Terminated – Overdraft – Over 90 days old – Cross grant – Frequent redistribution of pay event UIUC: Processing Cost Transfers for Sponsored Research Projects As a Reminder Updated Guidelines were Re-issued 11/6/2006 OBFS Website – Grants - Announcements Semi-Annual Confirmations  Jan-Jun 2006 – 67.79% return rate – 250 outstanding NSF funds  Jul-Dec 2005 – 97.03% return rate – No outstanding NSF funds  Jan-Jun 2005 – 96.43% return rate – No outstanding NSF funds Semi-Annual Confirmations  Failure to have confirmations on file can result in disallowed costs Must have PI signature unless GCO approves an extenuating circumstance allowing Department Head to sign Timely return   Semi-Annual Confirmations  Verify cost share effort and report any omissions Make sure the PI understands what (s)he is confirming Does the PI have all the documentation needed to verify charges   Semi-Annual Confirmations January – June 2006 Second reminders sent November 13, copied to Department Head Third reminders will be copied to the Dean Cost Sharing  Review cost share effort upon receipt of award and notify GCO of any changes Activity Reporting System - identify the C-FOAP and corresponding activity providing the cost share  Cost Sharing  Make sure cost share salary is charged to appropriate fund and program codes that are compatible with the sponsored project that cost share is being provided for Review cost share effort included on semi-annual confirmations and notate any changes or omissions  Cost Sharing Cannot use federal dollars for cost sharing on federal awards Hard match – notify GCO of any funds and/or program codes that are set up to record non-salary cost share   Banner Accounts Receivable Query Forms  Expended, Billed, & Paid – FZIBDET  Billed & Paid – FZIBILL  Billing Summary – FZIGSUM  Accounts Receivable Detailed Activity – FZAAREV Review Your Projects We need your help – don’t assume that GCO is correct 100% of the time. Errors can and do happen. Some things to review and be aware of:    Verify F&A rate(s) and that F&A is properly calculating Check the budget Billing and cash collection issues OTHER ISSUES  Publications – acknowledgements and disclaimers Subrecipient monitoring – be aware and notify GCO of any performance or financial issues   Sandia Nat’l Lab – foreign travel requires sponsor approval even if previously identified in the budget Sungard (SCT) Initiatives Multi-year Encumbrances   Labor Redistribution (approval queues) Effort Reporting  GCO Initiatives  Customer Survey – what is important to you Interface – InfoEd to Banner Web based effort reporting Accounts Receivable report    GCO Educational Classes  GC 101 - Grants & Contracts for Professional and Administrative Personnel (recently revised) Allowable Costs   Cost Sharing Personnel Changes  Amy Leng and Holly Spinner (HHS and Ed) have accepted departmental jobs New Audit Liaison – Debra Short Grant Specialists – Jessica Katterhenry (HHS and Ed) – Sadi O’Donnell (HHS and Ed) – Eric Powell (Federal support)   QUESTIONS?