Medicine Invoice by utz16046


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									 The Johns Hopkins University
        School of Medicine
Office of Research Administration
         Subawards Training
Our work is divided into two categories:

          Drafting, execution, and termination of
          outgoing subawards and subcontracts

   Purchase order creation, management, and termination

        When is an outgoing sub necessary?

Subawards & Subcontracts                    Service Agreements

   A subaward or                      A service agreement is a
    subcontract is necessary            good alternative when the
    when a substantive part             outside entity is not
    of the work will be                 contributing to the end goal
    performed outside of JHU.           of the project.
                                           Storage (drug, supplies, etc.)
       Patient accrual
                                           Website design &
       Statistical analysis                management for a clinical trial.
   Always set up through              Set up through Purchasing,
    ORA.                                not ORA.

Types of funding
   Subawards under NIH grants
       FDP v. non-FDP
   Subcontracts under federal and state contracts
   Subawards under awards from foundations
   Subcontracts under commercial contracts
   Subawards under internal (gift) accounts
   Funding from multiple sources
       Please try to make us aware of all the sources of funding
        (commercial and non-commercial) for a sub.

Subs Associate receives              Subs Associate contacts               Departmental contact
  NGA from Grants                   departmental contact for             sends information to Subs
      Associate                       necessary information                      Associate

                                                                                 Subs Associate
 Subs Associate                                                                     evaluates
creates shopping            Subs Associate                                      information and
   cart in SAP.                                      Subs Associate
                           requests sub-IO,                                         drafts the
                                                     sends contract
     (It must               also known as                                       subcontract and
                                                     draft to subsite.
subsequently be           the “96 number”.                                        submits it for
   approved).                                                                      supervisory

Who do I contact about my outgoing sub?
   In most cases, subawards are assigned to the Subawards
    Associates by SOM department.
   BUT when the prime award is a commercial contract or
    an award from a foundation, it will be handled by:
       Alexandra (for subs under commercial contracts)
       Melody (for subs under foundation awards)

What information is necessary?
   For an original sub:
       A Subaward Information Sheet
       A budget for the subsite
       A statement of work for the subsite
       IRB/IACUC approval for the subsite
       Wire transfer agreements for subsites in foreign countries
       And for some NIH subs…Conflict of Interest documentation
   For modifications:
       A Subaward Information Sheet
       A budget
       A statement of work (but only if it has changed)
       Updated IRB/IACUC approval
       Possibly (for NIH subs), Conflict of Interest documentation

Who gets all of the information?
   Departmental contacts are responsible for obtaining the
    information necessary for subawards and subcontracts.
    ORA can help with the process by clarifying what is
    necessary, but we cannot get these materials for you.
   Please note that although information about the
    subaward/subcontract was submitted with the application,
    the department must still submit the necessary
    information to the Subs group in ORA.
   If you are delivering any subs-related materials to ORA,
    please make sure that you indicate that on the envelope or

          Information necessary to fill out the
             Subcontract Information Sheet
   JHU contact information
   Most recent subsite contact information
       In most cases, the contact should be in the Research Administration
        office at the subsite.
       Please try to verify that it is current.
   SAP grant number
   Sponsor grant number
   IO number
   Cost center number
   Whether animal and/or human subjects research is going to be
    conducted at the subsite.
   Period of performance dates for the sub
   How much the subsite will be paid.

   Budgets for subs under NIH grants must be more
    detailed than those for subs under commercial contracts
       Names of personnel
       Breakdown of equipment costs
       Explanation of travel costs
   In all budgets, if there are per-patient costs, the budget
           indicate the number of patients and the amount that
    will be paid for each one.
   Consider whether the costs are allowed under the terms
    of the award/contract.

Statement of work
   Alternately known as a “work scope”, the SOW is a short
    paragraph describing what the subsite is doing. The SOW
    should NOT be a summary of the whole grant.
   Should be understandable to non-scientists.
   Based on the statement of work, the Subs group should
    be able to determine whether the budget is appropriate.

IRB and IACUC approvals               Wire transfer agreements
   The expiration date of the        Requires bank account
    approval should be near            and payment information
    the end or after the end           for the subsite.
    of the performance period         Must be in English.
    for the grant or contract.        After completion, the
   Please be aware that ORA           departmental contact
    does NOT need the IRB              must send the WTA to
    approval to write the sub,         Accounts Payable, with a
    but we must have it in             copy to ORA.
    order to fully execute the

      Subcontracts and Indirect Costs
Under NIH subs…
 All of our subsites have their own indirect cost rates. When
  we look at the budgets for the subsites, they will include IDC,
  calculated at their own rate.
 In addition, when we create an account for the sub, we are
  entitled to take IDC on the first $25,000 of the total
  subcontract amount.
 * The “25k rule” ONLY applies to NIH subs.
Under non-NIH agreements…
 Generally, under foundation awards and commercial contracts,
  the same IDC rate is applied to both JHU and the subsite, for
  the total amount of the subcontract, and not just the first

The 96 Number…
   The 96 number simply refers to the account number for the
   A 96 number is a “child” of a “parent” IO number, which will
    always start with “90”.
   The Subs group requests 96 numbers when an original
    subaward or subcontract is created.
   Except in the case of clinical trials, the 96 number will be set
    up with the sub amount, plus whatever IDC JHU is entitled to
   Generally speaking, the IDC rate for the 96 number must
    match the IDC rate for the IO number it is based upon,
    although there may be some (limited) exceptions.
   After the first year of a grant or contract, the departments are
    responsible for adding money to the 96 number, via the Award
    Change Form.

Determining what IDC rate applies to a 96
number… (it’s not about location!)
   JHU has negotiated a number of IDC rates with the NIH.
    Determining which rate applies to the 96 number
    depends in part upon whether the work is conducted
    “on- campus” or “off-campus.”
   “On-campus”- means that the University is paying for the
    space where the work is conducted.
   “Off-campus”- means that the University is NOT paying
    for the space where the work is conducted.
   Note that the decision about which rate to use for the 96
    number is made based on the work being performed at
    JHU. It has nothing to do with the location of the subsite.

                                      Technical and
    Payment                                             Subject
  Information                                          Protection

Indemnification     What’s in a subcontract?          Information

                                                        Period of
                                      Adverse Event
Things to be aware of…
   Is JHU receiving and/or storing drug? If so, will it
    subsequently be shipped to the subsite?
   Is carryover being requested?
       If carryover is being requested for a subaward on an NIH grant,
        it is important to know how the balance was reported on the
        Financial Status Report. It should be reported as an
        “unliquidated obligated balance.”
       If the prime award is from a foundation, does the carryover
        request comply with award guidelines about how much money
        can be carried over, etc.?

                 Why is it taking so long??
                  Can’t I just pay them??
   Complicating factors in completing a sub:
       Subsite wants indemnification from sponsor
       Subsite has not obtained IRB approval
       Sponsor has to approve something- like the replacement of a
        project director.
       Payment/Purchase Order issues

           So now we have a sub… but what’s next??

            Managing Purchase Orders

      What the Subs group does in relation to purchase orders:

    P.O. is created when the contract is created. All subawards created
    since the conversion to SAP use two specific general ledger numbers.

   Time and/or money added (or removed) when sub is modified.

    P.O. is closed when project period of grant/contract ends, or sub is
    terminated early. If money is left on P.O., the close out process will
    unencumber it.

A Few Additional Points About Closing Out Purchase Orders

   In order for us to close out a P.O., the department must have already
   received the final invoice.

   After a P.O. is closed, any money left on it should automatically move
   back to the IO number.

   If there were expenses on a P.O. before the January 2007 conversion to
   SAP, they will shop on the 642400 general ledger number, which links to
   the IO number, NOT to the 96 number. Thus, if we are closing a P.O.,
   and there is money on 642400, the Real Time Grant Report will still
   show that there is an encumbrance on the IO number. ORA cannot fix
   this problem. For help, contact the SAP help line and/or Supply Chain.

What the Departments do in relation to
          purchase orders:

• Process and pay invoices

• Complete goods receipts

• Ensure consistency with the Real Time Grant Report

                     Invoice Process
   Per the terms of our contracts, subsites should be
    sending invoices to the departmental contact whose
    name is on the sub information sheet. If ORA receives an
    invoice erroneously, it will be forwarded to the
    departmental contact.
   Departmental contact should review invoice and obtain
    necessary signatures.
   Departmental contact sends invoice to Accounts Payable
    via interoffice mail. Make sure to keep a copy.
   Keep a running tab of all of the invoices that have been
    submitted, and ensure that there is funding left in account.

                        Invoice Review
   When reviewing invoices, departmental contacts should:
       Confirm with the PI that the work has been performed and
        that any necessary reports have been submitted. PI should be
        aware of payments.
       Check that P.O. number and account number are correct.
       Time period of invoice should coincide with previous invoice.
        Shouldn’t overlap with previous invoice and should NEVER
        exceed the termination date.
       Confirm that IDC rate is correct.
       Confirm that budget adds up correctly.
       Be sure that cumulative amount invoiced is less than or equal
        to total amount of the award.

                         Goods Receipts
   Goods Receipts are confirmations that goods or services have
    been received. A goods receipt must be completed for every
    invoice that is submitted to Accounts Payable for payment.
   Goods Receipts facilitate the “Three Way Match”, which means
    that the P.O., the Goods Receipt, and the vendor invoice all
    show the same price and quantity. If the match is successful,
    the invoice will be posted for payment processing. If there are
    discrepancies, there is no match, the invoice will be blocked for
    payment, and the A/P workflow will be initiated.
       When requests come to ORA through R/3 inboxes, they are
        forwarded to the R/3 inbox of the appropriate departmental contact.
   Two methods for completing goods receipts (see handout).

Please do NOT:
- Make payments to subsites via online check requests

- Provide subsites with purchase order numbers before original
contracts are fully-executed.

- Create goods receipts before the invoice has been posted in

   Generally speaking, the Subs group cannot resolve Real
    Time Grant Report issues (incorrect encumbrances, etc.).
   However, we can try to guide department contacts to get
    in touch with people who should be able to assist in the

In General…
   If you have questions about what you need to submit or
    something the subsite is asking for, please call or e-mail us.

              Alexandra Sedehi

                Melody Snow 

              Sheneka Nichols

                 Mary Price 


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