Business Process - Accounting for Grants and Contracts

Transcription

1 Business Process - Accounting for Grants and Contracts Office of Finance and Treasurer Created: June 28, 2005 Last Revised: January 29, 2007 Distribution External Web

2 TABLE OF CONTENTS Business Process Description...3 Key Assumptions...3 Related APL s and Other Helpful Links...3 Key ChartField Values...5 Request a New Project Value:...7 Complete the Project Create Form (PCF)...7 Submit Required Documentation...17 View Project Information...19 Update Project Information...21 Set Up Monthly Allocations:...22 F&A Costs F&A Cost Sharing Direct Cost Sharing Answer These Questions Before You Make Any Journal Entries...24 Record the Budget...26 Recognize Revenue / Fund the Grant...35 Spend the Grant...37 Place a Project on Hold to Prevent Transactions...40 Process Voluntary Uncommitted Cost Sharing...42 Close a Grant or Contract Project...47 Monitor Your Grants and Contracts Projects...50 Special Accounting Requirements: Letter of Credit Grants/Contracts Program Income Funding Capital Projects from Grants and Contracts Appendices: A Sample of a Completed Project Create Form B Grants and Contracts Allocation Form Summary of Illustrations: 1 Budget for a Grant that does not Require Direct Cost Sharing Budget for a Grant that Requires Direct Cost Sharing Budget for a Grant that Includes F&A Cost Sharing Fund Direct Cost Sharing with a Journal Entry Allocate Costs to a Direct Cost Sharing Fund Voluntary Uncommitted Cost Sharing Journal Entry Accounting for a G&C Supported Capital Project Office of Finance and Treasurer 2 of 61

3 Business Process Description This document explains how to account for and monitor grants and contracts in our general ledger system. Properly accounting for grants and contracts is a shared responsibility of the System Office and the Campuses. Key Assumptions In writing this document, we assume the reader is familiar with PeopleSoft ChartFields, entering journal entries, and how to request creation of a project. For more information on these topics, click the following links: Online Journal Entry Manual (Finance and Treasurer > PeopleSoft Finance > Journal Entry) Requesting a Project Completing the Project Create Form (Finance and Treasurer > PeopleSoft Finance > Business Processes) Journal Entry for Budget Adjustments and Transfers (Finance and Treasurer > PeopleSoft Finance > Business Processes/Budgeting) Related APL s and Other Helpful Links University of Maine System Administrative Practice Letters (APL s): Find these Sponsored Programs APL s on the Finance and Treasurer web page at: APL s SECTION VIII Sponsored Programs Cost Sharing Restricted Account Guidelines Sponsored Agreements Direct Charging of Expenses Sponsored Agreements Subrecipient Audits and Monitoring Requirements DRAFT Administrative Practice Letters, with pending changes to existing APL s as well as proposed APL s are on the Finance and Treasurer web page at: DRAFT APL s Other Helpful Links To reach these documents, click: Business Processes Requesting a Program Completing the Program Create Form (Finance and Treasurer > PeopleSoft Finance > Business Processes) Office of Finance and Treasurer 3 of 61

4 Accounting for Capital and Maintenance Projects (PeopleSoft Finance > Business Processes) OMB Office of Management and Budget Circulars A-21, A-110, and A-133 Click: OMB Circulars A-21 Cost Principles for Educational Institutions A-110 Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations A-133 Audits of States, Local Governments, and Non-Profit Organizations Office of Finance and Treasurer 4 of 61

5 Key ChartField Values Grants and contracts ChartField combinations require department, fund, project, and account. Frequently used values are listed below. You will find them referenced throughout this document. Department: CXXXXXX Where C is the Business Unit, for example, 2 = University of Maine at Farmington Fund: 20 Restricted Expendable 04 Unrestricted Cost Sharing 24 Restricted Cost Sharing Project: C4XXXXX Where C is the Business Unit and 4 means Grants and Contracts Account Revenue: Grants Federal Grants State of Maine Grants Other Governments Grants Other States Grants Non-Government Grants Other Non-Profits Grants Corporate/Business Account Expense: Use this range of accounts when setting up the project expense budget F&A Facilities and Admin Costs F&A Cost Sharing Account Transfers FROM: Use 8XXXX accounts to RECEIVE non-sponsor funds. The second and third digits of the account are the FUND from which the funds are coming. Use these accounts to receive non-sponsor funds into a PROJECT Transfers from E&G Transfers from Auxiliary Transfers from Designated Transfers from Unrestricted Federal FY (includes MAFES/CE) Transfers from Restricted Transfers from Restricted Federal FY (includes MAFES/CE Transfers from Restricted Appropriated (includes MEIF) When a project is complete, return unused non-sponsor funds to their original source. Use these accounts on the chartfield combination that will receive the funds you are returning Transfers from Cost Sharing Unrestricted Transfers from Cost Sharing Restricted Account Transfers TO: Use 7XXXX accounts to SEND funds. The second and third digits of the account are the FUND to which you are sending the funds. Use to send cost share funds from a department TO a project Transfers to Cost Sharing Unrestricted Transfers to Cost Sharing Restricted Use to send grants and contracts project funds to a capital project where they will be spent Transfers to Restricted Plant Office of Finance and Treasurer 5 of 61

6 When a project is complete, return unused non-sponsor funds to their original source. Use these accounts on the PROJECT ChartField combination that is sending the funds Transfers to E&G Transfers to Auxiliary Transfers to Designated Transfers to Unrestricted Federal FY (includes unrestricted MAFES/CE) Transfers to Restricted Transfers to Restricted Federal FY (includes restricted MAFES/CE Transfers to Restricted Appropriation (primarily MEIF) When a project is complete, send excess fixed-price contract funds to an unrestricted FUND using these accounts: Transfers to E&G Close FP Contract Transfers to Designated Close FP Contract Transfers to UR (unrestricted) Fed Close FP Contract (to unrestricted MAFES/CE) You can locate all valid ChartField values through your Maine Street Menu at: Enterprise Applications > Financials > Set Up Financials/Supply Chain > Common Definitions > Design ChartFields > Define Values > ChartField Values To save yourself time, add the ChartField Values page to the section of your Financials Menu. Office of Finance and Treasurer 6 of 61

7 Request a New Project Value Complete the Project Create Form (PCF) Grants and contracts are tracked in the PeopleSoft General Ledger with the PROJECT ChartField in combination with other appropriate ChartFields. To request a new grant or contract project, complete a Project Create Form. A sample of a completed form is in Appendix A. Refer to these two Business Process Documents for help in completing the Project Create Form. Each provides information on separate parts of the Project Create Form: Requesting a Project Completing the Project Create Form Accounting for Grants and Contracts, the document you are now reading. Requesting a Project Completing the Project Create Form answers these questions: Do I have a project? What type of project do I have? What information is required on every Project Create Form, regardless of type of project requested. It also tells you how to complete that part of the Project Create Form related to these items: Business Unit Project Number Project Name Project Description Project Manager Effective Date Project Manager s Employee Identification Number (P.I Employee ID) Project Status Effective Date Project Status Project Start Date Project End Date ChartField Combinations Related Projects Trees and Nodes to be Updated Accounting for Grants and Contracts (this document) tells you how to complete the remaining parts of the Project Create Form. These parts of the form relate specifically to Grants and Contracts. They are listed below and detail on each of them follows. 1. ChartField Combinations (additional information) 2. Billing Code 3. CFDA Number 4. Expense Code 5. GC Type 6. Closing Department and Fund 7. Grant No. 8. Project Tree Level Office of Finance and Treasurer 7 of 61

8 9. Financial Contact # 10. Letter of Credit Number 11. Federal Agency 1. ChartField Combinations Here is the ChartField Combination section of the Project Create Form: Leave the Program column blank when requesting a grant or contract Project. (Include the Program chartfield when you prepare a PCF for a capital Project. In this section of the form, enter the combinations of ChartFields you will use with the project you are requesting. For grants and contracts projects, you can ignore the Program column. It is used for capital and maintenance projects. Generally, a single grant/contract project will include activity in up to three ChartField combinations, each with a different fund. The possible ChartField combinations are: Project / Department / FUND 20 Project / Department / FUND 04 Project / Department / FUND 24 for sponsor revenue and expenses for unrestricted cost share transfers-in and expenses for restricted cost share transfers-in and expenses Fund: Some grant and contract agreements are supported by sponsored funds only. In that case you will have just one ChartField combination and will enter 20 into the Fund column on the Project Create Form. In addition to the sponsor funds, some agreements include direct cost sharing. If so, enter 24 into the Fund column if the direct cost sharing will come from restricted funds. Enter 04 if it comes from unrestricted funds. Enter both funds if it comes from both sources. Department: On the PCF, you enter the same department for every ChartField combination you identified when you entered fund. Just one department will be used on all transactions for a single project. Note, however, a single department may be used with many project numbers. The department you list for your project must have the correct functional Expense Code associated with it. Select the Expense Code based on the nature of the activity described in the grant, e.g., research, instruction, public service, etc. The functional Expense Codes are listed in item #4 below. Once you have selected the correct functional expense code, check the expense code assigned to the department you plan to enter above to make sure they match. If they do not match, you need to review your department choice. You may need to request the creation of a new department that has the correct expense code. You can see the Expense Code assigned to a DEPARTMENT by going to your ChartField Values page, selecting Department, and checking the Expense Code on the department attributes. The path to the ChartField Values Department page on your Maine Street Menu is: Enterprise Applications > Financials > Set Up Financials/Supply Chain > Common Definitions > Design ChartFields > Define Values > ChartField Values > Department Enter or search for the department you think you will use and click the Attributes link. Click view all on the ChartField Attributes page if the Expense_Code does not appear. You will see the department s four-digit expense code and its description. Office of Finance and Treasurer 8 of 61

9 2. Billing Code The 2-digit Billing Code identifies the campus billing method. Available codes are shown below. Please note the billing code for Letter of Credit grants/contracts. It is critical that you use this code on all LOC grants/contracts. Billing Code AA AR FA FF FR LC MA MR QA QR SA SR YA YR Description Annual Advance (Calendar Year) Annual Reimbursable (Calendar Year) Fixed Advance Fixed Fixed (Set Schedule) Fixed Reimbursable Letter of Credit Monthly Advance Monthly Reimbursable Quarterly Advance Quarterly Reimbursable Semi-Annual Advance Semi-Annual Reimbursable Yearly Advance (Fiscal Year) Yearly Reimbursable (Fiscal Year) 3. CFDA Number The Federal Office of Management and Budget Circular A-133 requires us to identify the sources and amounts of grant and contract funding we receive from the Federal Government. We must identify both funds awarded directly from federal agencies, and, those passed through state or private agencies to the University of Maine System. We use the project attribute CFDA Number to identify the federal funds. The attribute value coincides with the 5-digit Catalog of Federal Domestic Assistance (CFDA) numbers assigned by the federal government. If the CFDA number on a grant changes, you must set up a new project since each project is associated with just one CFDA number. In identifying the CFDA number, you will typically encounter one of the four following situations: The full CFDA number is listed in the sponsor agreement: When this is the case, simply record the CFDA number you find in the agreement onto the Project Create Form. The project agreement contains no CFDA number: Do not assume this means there are no federal dollars. Contact the sponsor to find out if federal dollars are involved, and obtain the CFDA number. If you determine that none of the funds are from federal sources, enter NOFED into the CFDA number field on the Project Create Form. Office of Finance and Treasurer 9 of 61

10 Federal funding exists (direct or pass-through), but the sponsor is unable to provide the CFDA number: In this case, enter the first two digits of the federal agency CFDA series followed by three zeros (2-digit Fed Agency codes are shown below). o Example: If the funds came from the U.S. Department of Education, but no CFDA number is available, enter The award indicates multiple CFDA numbers: In this case, enter MULTI in the CFDA Number field. If you enter MULTI, attach a funding sheet to the Project Create Form that lists: o o o each CFDA number, the dollars associated with that number, and the percentage of dollars associated with each CFDA number. Here is the list of common CFDA Numbers: 2-digit CFDA for Commonly Used Agencies 2-DIGIT CFDA FEDERAL AGENCY 10 Department of Agriculture 11 Department of Commerce 12 Department of Defense 14 Department of Housing & Urban Development 15 Department of the Interior 16 Department of Justice 17 Department of Labor 19 Department of State 20 Department of Transportation 21 Department of the Treasury 27 Office of Personnel Management 43 NASA 45 National Endowment for the Humanities 47 National Science Foundation 59 Small Business Administration 64 Department of Veterans Affairs 66 Environmental Protection Agency 81 Department of Energy 82 United States Information Agency 84 Department of Education 93 Department of Health & Human Services 94 Corporation for National & Community Service 97 Department of Homeland Security You can get additional helpful information about CFDA numbers and federal programs at the CFDA website. After you access the website, follow these links: Search for Assistance Programs (HTML), then, All Programs Listed Numerically Click on one of the CFDA # s listed, or Use your browser Edit/Find feature to search by a key word in a program title. Office of Finance and Treasurer 10 of 61

11 4. Expense Code The 4-digit Expense Code identifies the functional activity of the project. The expense code you enter here must match the expense code that is assigned to the department code you entered in the ChartField Combinations section of the Project Create Form. If the Expense Codes do not match, you must select a different department, or in some cases, request the creation of a new department. The circled Functional Expense Codes are frequently used with grants and contracts. Refer to the project agreement to help determine the most appropriate choice. Office of Finance and Treasurer 11 of 61

12 5. GC Type This 2-digit field identifies the type of grant/contract project for tracking and reporting purposes. The five valid attribute values for GC project type and their characteristics are listed below. The project type is usually defined in each project agreement. When it is not, use the following general guidelines for assigning project type: GR Grant: A grant generally involves financial assistance received from a sponsor who provides support to accomplish an objective. Characteristics of a grant are as follows: 1) Designates a purpose but does not require a definite service or product. 2) Does not require substantial involvement between the sponsor and awardee. 3) Generally requires technical and financial reporting from awardee to the sponsor on the results of the activities. 4) Is governed by assistance authority of the Federal agencies, the Office of Management and Budget (OMB) Circulars, and by each individual awarding agency s grants policy document. CT Contract: A contract involves an agreement between two or more parties, usually for acquiring property or services, for the direct benefit of the sponsor. Characteristics of a contract are as follows: 1) A topic and the methods for conducting the program are generally provided in detail by the sponsor. 2) Awardee is required to provide goods or services in exchange for payment. 3) The method of award is an agreement, documenting detailed specifications, clauses, regulations, and expected performance obligations. CA Cooperative Agreement: Financial assistance is similar to a grant, but where the sponsor has substantial involvement in the project. This may also be called a Memorandum of Understanding (MOU). Characteristics of a MOU are as follows: 1) The sponsor and awardee share responsibility for programmatic management of the project. 2) Award stipulates the responsibilities of both parties. 3) Requires technical and financial reporting from awardee to the sponsor on the results of the activities. PP State/University Partnership Program: Use for all cooperative agreements that are carried out under the State/University Partnership Program. SA Sub-Agreement: Projects in this category include any agreement under which the University is a sub-contractor, sub-grantee, sub-recipient, etc. In these cases we receive a secondary award from a party who has received a primary award from an organization or agency. Depending on the form of the primary award and the agency, there could be varying terms or conditions. 6. Closing Department and Fund This department and fund may be charged when funding is needed in addition to the sponsor funds or committed direct cost sharing. For example, the closing department and fund may pay for overexpenditures or unallowable costs. Campus Management decides whether or not you are required to populate this field. Office of Finance and Treasurer 12 of 61

13 7. Grant No. Grant No. is the alpha/numeric identifying number the awarding agency assigns. It is sometimes lengthy. List the entire number even if it exceeds the 40 spaces provided on the Project Create Form. If the project agreement contains no grant number, do not assume there is no grant number. Check with the agency to get their number or to verify they do not plan to assign a grant number. If you determine no grant number will be assigned, enter NONE into the Grant No. field on the Project Create Form. After the SAD (System Accounting Department) has entered the grant number into the general ledger, you can go to GL Inquiry, search on the project, select the project s attributes link and see up to 20 characters of the Grant No. in the ChartField Attribute Value column. You can see the entire grant number (up to 60 characters) in the Description column. 8. Project Tree Level For various reporting purposes, the University of Maine System must track the source of grants and contracts on several levels. To identify these levels, the UMS_PROJECT tree is organized in the following hierarchy. Major Source This is a high level categorization of grants and contracts projects. It defines the direct funding source for each project. Grants and Contracts major funding sources are: US Federal Government Federal Fiscal Year Projects US Federal Government State of Maine Non Profits Corporations, Businesses, and Industries Other State Governments Educational Institutions Minor Source Represents a subcategory of the major source. For example, the Major source US Federal Government has several Minor Sources, a few of which are: US Dept of Commerce US Dept of Defense US Dept of Labor US Dept of Education US Dept of Energy LOC Group LOC Group is the method for requesting payment from the sponsor. Valid options are letter of credit or campus billed. When a project is billed by letter of credit, it appears in a specific LOC group. For example, the Minor Source US Dept of Labor has the following LOC groups: LOC US Dept of Labor OSHA LOC US Dept of Labor Empl and Training Admin Office of Finance and Treasurer 13 of 61

14 In PeopleSoft, the UMS_PROJECT tree holds all projects. This tree is structured with levels 1 through 9 that represent various categories of information that are tracked for the projects. The position of the project on the tree tells us its major source, its minor source and whether it is billed by Letter of Credit. You determine the position of the new project on the tree when you fill out the Project Tree Level section of your PCF form. Each project goes on the UMS_PROJECT tree in just one place (node). In completing the Project Create Form, provide the name of the lowest Project tree node that accurately reflects ALL pertinent information about the project (grant). If an appropriate node does not exist in the tree, request a new node by contacting the System Manager of Sponsored Programs Accounting. The department illustrations on page 16 will help you select the correct node to list on your Project Create Form, A condensed representation of the UMS_PROJECT tree is on the next page. You can see the actual tree through your Maine Street Menu > Enterprise Applications > Financials > Tree Manager > Tree Viewer. Enter UMS_PROJECT and Click. When the Tree Viewer page opens, click to view all levels of the tree. Office of Finance and Treasurer 14 of 61

15 This chart is a condensed representation of the UMS_PROJECT tree: Node Name Category Maj Source Min source LOC Group Proj Grp Proj Sub Grp Project Type Level ALL_PROJECTS A, B, C PROJECT_VALUES CONST_PROJ MISC_PROJ DEL UM_CFRU STATE_R&D_APPROP STATE_JEG SFA_GRANTS SFA_STATE SFA_ST_EDUC BLAINE_SS EDUC_ME SFA_FEDERAL SFA_FED_EDUC LOC_EDUC_SFA FED_WS FED_PELL SFA_OTH_STATE SFA_PRIVATE A, B,C GRANTS_CONTRACTS A, B FEDERAL_GRANTS FED_COMM LOC_EDA A FED_DEFENSE B FED_LABOR B LOC_OSHA LOC_DOL_ETA FED_OTH STATE_GRANTS ST_EXEC ST_ECD ST_PUC NONPROF_GRANTS NPROF_007 NPROF_01C NPROF_01D CORP_GRANTS CORP_018 CORP_03D C OTHST_GRANTS C OTHST_108 OTHST_112 EDU_GRANTS EDU_019 EDU_52G EDU_556 YE_AUDIT_ADJUSTMTS MAFES UM_CE NO_PROJECT_VALUE Description All Projects All Non-Blank Values Construction Projects Miscellaneous Campus Projects To be Deleted UM Coop Forestry Research Unit State R&D Appropriation 2003 State JEG Bonds Grants - Financial Aid SFA Grants - State ME Dept of Education Blaine House Scholarships Educators for Maine SFA Grants - Federal US Dept of Education US Dept of Educ SFA - LOC Federal Work Study Federal Pell Grants SFA Grants - Other States SFA Grants - Private Grants & Contracts Grants & Contracts - Federal US Dept of Commerce US Dept of Commerce EDA - LOC US Dept of Defense US Dept of Labor US Dept of Labor OSHA - LOC US DOL Empl & Training Admin Federal - Other Grants & Contracts St of Maine St of ME Executive Office ME Economic/Community Dev Me Public Utilities Commission G&C - Other Non-Profits Alpha One AAAS Andrus Family Fund G&C - Corp/Business/Industry Auburn-Lewiston Municipal Airport Assoc of Amer Coll & Univ G&C - Other State Governtments Colorado Dept of Human Services Ct Dept Transportation G&C Other Educational Inst Arizona State Univ Michigan State Univ Northeastern Univ Year End Audit Adj for Grants ME Agric&Forestry Exp Station UM Cooperative Extension Blank Project Value Office of Finance and Treasurer 15 of 61

16 Look at the level identifiers at the top of the tree representation shown above. As you work your way to the right, you are moving to a lower level on the tree. Each level is explained below: Level 1 and 2 Level 3 Category Level 4 Major Source Level 5 Minor Source Level 6 LOC Group Level 7 Proj Grp Level 8 Proj Sub Grp Level 9 Project Type These highest levels contain all Projects. Do not use them on the PCF. This level divides the project ChartField values into broad categories of projects, e.g., construction and maintenance, student financial aid grants, grants and contracts, etc. Sorts the project values by broad categories of funding source. Sorts the project values by subcategories within each major source. For those projects that are letter of credit, this level categorizes them by Letter of Credit agreement. If this level is blank, then the project is considered a campus billed project. Another way of sorting the project values beyond major source, minor source, and LOC group. This level is primarily used for construction and maintenance type projects. A subset of Level 7. This level is primarily used for construction and maintenance type projects. This level is used only with construction and maintenance type projects. The following illustrations show how Department A, Department B and Department C located the correct node on the lowest tree level for their projects. Read the description for each illustration and refer to the tree representation above to see if you can follow the logic the Department used in locating the lowest relevant branch on the tree: Dept A Illustration: A Department A receives a grant award directly from the Federal Department of Defense. The Campus will send bills to the sponsor to receive payment from the sponsor. To complete the Project Create Form, Department A enters FED_DEFENSE as the project tree level. Follow the A from Level 2 (Project Values) to Level 5 (Minor Source) to see how the Department arrived at this answer. Dept B Illustration: B Department B receives a letter of credit grant from OSHA. To complete the project create form, Department A enters LOC_OSHA as the lowest relevant project tree level. Follow the B from Level 2 (Project Values) to Level 6 (LOC Group) to see how the Department arrived at this answer. Dept C Illustration: C Department C receives a grant from the Colorado Department of Human Services. To complete the Project Create Form, Department A would enters OTHST_108 as the project tree level. Follow the C from Level 2 (Project Values) to Level 5 (Minor Source) to see how the Department arrived at this answer. Office of Finance and Treasurer 16 of 61

17 9. Financial Contact # A Financial Contact is the person in the campus sponsored programs office who works closely with, and can answer questions about, the project identified on the PCF form. Each Financial Contact has a 3-digit number. Enter the Financial Contact s 3-digit number on the PCF. 10. Letter of Credit Number The Letter of Credit Number is assigned to certain federal grants and contracts billed on a letter of credit basis. The System Manager of Sponsored Programs Accounting completes this part of the Project Create Form. 11. Federal Agency This is the first 2 digits of the CFDA number. The SAD uses this information to prepare certain reports for the Federal Government. The System Manager of Sponsored Programs Accounting completes this part of the Project Create Form. Submit Required Documentation After you complete the Project Create Form, submit it to the SAD along with the supporting documentation described below. The SAD will not create the project until essential supporting documentation is received. Your supporting documentation substantiates the completeness and accuracy of information on the Project Create Form. Items to Submit: Project Create Form Essential Supporting Grant or Contract Information: Send at least one of these items, the first is preferred. Send them all if they include pertinent information about the grant/contract. Grant or contract from the sponsor signed by both parties or, at least, by the University. First page of the contract/grant. Copies of relevant correspondence between the campus and the sponsor regarding the new project. Grants and Contracts Allocation Form: This form captures the following information: Federal Fringe Benefits rate F&A Cost Rate Negotiated for this project (may be different from the DHHS Rate Agreement rate) Accounts to be excluded from F&A cost calculations F&A Cost SHARE rate, if any Direct Cost Share direct charges to a cost share fund Direct Cost share allocated accounts, percentages and cost share funds SAD uses the information you provide on the Grants and Contracts Allocation Form to set up allocation rates and rules. The information you submit on the form must verify against the project budgets you record. For example: Office of Finance and Treasurer 17 of 61

18 If you submit an F&A rate of 48.50% on the Grants and Contracts Allocation Form, the dollar amount you record in the budget ledger on account of fund 20 must equal 48.50% of the combined Total Expenses and Transfers (less excluded accounts) on fund 20, fund 04 and fund 24. If you submit an F&A cost share rate of 25% on the Grants and Contracts Allocation Form, you must get 25% when you divide the dollar amount you recorded on the budget ledger on account by the dollar amount you recorded on account Remember to use the ALL FUND GL Inquiry view when you check your figures. The Salaries, Wages and Benefits you list on the Grants and Contracts Allocation Form to direct charge, must be for the same accounts, funds, and amounts you record in the budget ledger. The non-salary accounts, amounts, and funds you list on the form to direct cost share, must match the accounts, amounts, and funds you record in the budget ledger. Please be careful. If you record an incorrect budget or submit incorrect rates, the F&A and the cost sharing posted to your project will be wrong. When you record your budget, if you realize you submitted incorrect information on the Grants and Contracts Allocation Form, send an to the Manager of Sponsored Programs Accounting in the System Accounting Department. Indicate the project number and the corrections. If you do not have the information you need to complete the Grants and Contracts Allocation Form, you may submit it at a later time. However, please be aware that F&A and cost sharing will not be posted to the project until you provide the information for the allocations. The Grants and Contracts Allocation Form is in Appendix B. Office of Finance and Treasurer 18 of 61

19 View Project Information Once a project value has been created, you can view important information related to it in the PeopleSoft ChartField Values page located at: Maine Street Menu > Enterprise Applications > Financials > Set Up Financials/Supply Chain > Common Definitions > Design ChartFields > Define Values > ChartField Values > Project Enter the project you wish to see and click. For this example, we will look at project : This project is Active and Open. The end date is June 30, Click the information you submitted in the Description field of your Project Create Form, tab to review the These dollar amounts and funding sources come from the information you included in the Description field of your Project Create Form. The dollar amounts you list here must match the budgets you record in the budget ledger Office of Finance and Treasurer 19 of 61

20 Click the Attributes link to see other information you submitted on your Project Create Form. Click View All if it is lit to open additional lines of information. Office of Finance and Treasurer 20 of 61

21 Update Project Information The campuses are responsible for keeping project information up-to-date in PeopleSoft. Because PeopleSoft is the Cost Accounting System we describe in the DS-2 (Cost Accounting Standards Board Disclosure Statement), information in it supersedes information maintained in supplemental data bases. Send an , instead of new forms, when you CHANGE or ADD information related to an existing project value. Send the to the System Manager of Sponsored Programs Accounting. Here are typical CHANGES/ADDITIONS you might need to make. Project Attribute Changes: Change project end date. Be sure to change this date when a sponsor has approved a nocost extension. Correct the CFDA # for a project Change project manager. Include the date the change is to be effective. Add a closing department and fund Correct the grant number Project Status Changes: Change from Open/Active to Hold/Inactive. Include the effective date. Change from Hold/Inactive to Open/Active. Include the effective date. Change project status to Closed/Inactive. The effective date will be the date the change is made. Please note, Closed/Inactive is the FINAL status of a project. No subsequent changes may be made. Allocation Changes: Add or remove an F&A exclusion account. In your , list ALL accounts you want excluded from the project, including the accounts already excluded. Change or add the F&A cost share rate. The new rate will apply to ALL project-to-date expenses. Change or add the Direct Cost Share rate for an Account. Include the cost share fund. Other: Request a new level on the UMS_PROJECT tree. You would request a new level when you have more than one project using the same grant number. By grouping projects with the same grant number on a new level of the tree, you can roll together the information for all projects with the same grant number on a single GL Inquiry screen. Request to have a project moved to a different level on the UMS_Project tree. Office of Finance and Treasurer 21 of 61

22 Set Up Monthly Allocations Process for Recording: F&A Costs, F&A Cost Sharing Direct Cost Sharing Allocations are a PeopleSoft delivered process that the University of Maine System uses to create journal entries for F&A Costs, F&A Cost Share, and Direct Cost Share. Below is a brief overview of how allocations work: F&A Costs: F&A cost allocations calculate F&A costs based on Project-to-Date Total Expenses and Transfers that exist in the project as of the end of the most recent month. The F&A allocations determine which accounts are excluded from the project-to-date total and they multiply that adjusted total by the gross percentage you provided on the Grants and Contracts Allocation Form. The resulting calculation is the F&A cost chargeable to the project as of the end of the month. A journal entry generated by the allocation adjusts F&A costs (account 65700) on a project to the appropriate amount and places the F&A recovery into the department the campus has designated to track F&A cost recovery. The journal entry debits Account in sponsor FUND 20 of the project and credits Account (Recovery of Facilities & Administrative Cost) in the department the campus has designated to record F&A recovery. Because the F&A allocation calculates F&A expenses on a project-to-date basis, you must set up a new project if the F&A rate on a grant or contract changes. F&A Cost Sharing: After F&A Cost allocations are run, F&A Cost SHARE allocations multiply project-to-date F&A costs by the F&A cost share rate you provided on the Grants and Contracts Allocation Form. When the F&A cost share calculation is complete, a journal entry credits Account in sponsor FUND 20 of the project and debits Account (Cost Sharing F&A Costs) in the department the campus has designated to record F&A cost share. Example of F&A Costs and F&A Cost Sharing on GL Inquiry: The GL Inquiry snapshot below shows an F&A rate of 32.00% is calculated against project-to-date Total Expenses and Transfers of $21,325 to yield F&A charges on Account of $6,824. The F&A Cost Sharing of $-3,412 on Account is based on 50.00% of the F&A costs of $6,824. In the above example, the F&A rate of 32.00% and the F&A Cost Sharing rate of 50.00% are the rates that you listed on the Grants and Contracts Allocation Form when you requested the project. For this example, there were no account exclusions listed on the Grants and Contracts Allocation Form. Had there been exclusion accounts listed, F&A costs would have been calculated against the project-to-date Total Expenses and Transfers of $21,325 less the amounts spent on the excluded accounts. Likewise, any project-to-date expenditures on automatically excluded accounts (the Office of Finance and Treasurer 22 of 61

23 accounts excluded per the UMS F&A rate agreement) would also have been removed from the Total Expenses and Transfers amount before F&A costs were calculated. Automatically excluded accounts are: 55XXX Scholarships and Awards including Graduate Assistant Tuition Equipment with Unit Cost >= $5, F&A Facilities & Admin Costs F&A Cost Sharing Direct Cost Sharing (old method) Voluntary Uncommitted Cost Sharing Interdepartmental Credit Direct Cost Sharing: Direct Cost Share allocations move expenses from the sponsor fund 20 to a direct cost share fund 24 (cost share funds are from a restricted source) or fund 04 (cost share funds are from an unrestricted source). At the end of each month, allocations calculate direct cost share based on one of two methods: o Old Method: The direct cost share amount is based on a single percent of project-to-date costs in ALL accounts on a project. (The old method is used only on projects that were active before July 2005 go live. Because old method direct cost share calculates against expenditures on ALL accounts, you may not direct charge salaries, wages and benefits to the cost share funds of projects that use the Old Method, i.e., have account Account will be phased out when Old Method projects are closed.) When the Old Method direct cost share calculation is complete, allocations generate a journal entry to: credit, in the sponsor fund, Direct Cost Sharing account 65720, and, debit, in the cost share fund, Direct Cost Sharing account All projects created after June 30, 2005 must use New Method Direct Cost Share. o New Method: The direct cost share amount is based on a percent(s) of a specific project account(s) you provide on the Grants and Contracts Allocation Form. The percent for each account is based on this formula: $ budgeted in an account in the cost share fund divided by total $ budgeted on that same account in both the cost share fund and the sponsor fund When the New Method direct cost share calculation is complete, allocations generate a journal entry to: credit, in the sponsor fund, the specific account(s) you identified on the Grants and Contracts Allocation Form, and, debit, in the cost share fund, those same accounts and amounts Viewing and Verifying Your Rates: Each allocation process uses the percentages you provide on the Grants and Contracts Allocation Form. System Accounting Department staff enter those percentages into the PeopleSoft general ledger. You can verify the rates that have been entered for a project in the Assets/Liabilities section of the GL Inquiry screen by referring to the values in the Current Balance column for these statistics Accounts: Facilities & Administrative Rate F&A Cost Share Rate Direct Cost Share Rate (Several rates may be listed for a single project if you are direct cost sharing on more than one account. Each account will have a different class) Allocation Schedule: Click this link, General Ledger Monthly Closing Schedule, to reach the schedule of dates allocations are run each month. The monthly closing schedule is in the Accounting Schedules section of the Finance and Treasurer web page. Office of Finance and Treasurer 23 of 61

24 Answer These Questions Before You Make Any Journal Entries Before you make any journal entries on the BUDGET ledger or the ACTUALS ledger, we recommend you first answer the following questions: Q1: Does this grant require direct cost sharing? A1: No. You will enter all budget and actual entries for this project in fund 20--Restricted Expendable. You will not use the cost share funds 04 or 24 for this project. Proceed to the section of this document titled, Record the Budget. A2: Yes. Proceed to Q2. Q2: Will direct cost sharing be funded with unrestricted monies, e.g., E&G monies; with restricted monies, e.g., MEIF research and development; or from both unrestricted and restricted sources? A1: Funded with unrestricted only: You will enter cost sharing budget and actual journal entries into fund 04-Unrestricted Cost Sharing. You will enter the sponsor-funded portion of the project in fund 20-Restricted Expendable. Proceed to Q3. A2: Funded with restricted only: You will enter cost sharing budget and actual journal entries into fund 24-Restricted Cost Sharing. You will enter the sponsor-funded portion of the project in fund 20-Restricted Expendable. Proceed to Q3. A3: Funded with both unrestricted and restricted: You will enter the applicable portions of cost sharing budget and actual entries into funds 04 and/or 24. You will enter the sponsor-funded portion of the project in fund 20-Restricted Expendable. Proceed to Q3. Q3: Does the direct cost sharing include salaries, wages, and benefits? A1: No. Proceed to Q4. A2: Yes. You will enter the budget for cost shared salaries and wages into the appropriate fund 04 and/or 24 AND you will direct charge the salaries, wages, and benefits to the cost share funds. Direct Charge means these costs will be charged directly against the cost share funds. (They will not first be charged to the sponsor fund and then allocated to cost share funds.) IMPORTANT Reminder: Labor distribution in the HR system must be set up so that the cost shared salaries and wages are fed directly to fund 04 or 24 from the HR system. Proceed to Q4. Q4: For the remaining cost-shared items (non-salary, non-wage, and non-benefit accounts) does the grant agreement stipulate what budget line items (accounts) are to be cost shared, or does it just state a total dollar amount that must be cost shared? A1: Line items are stipulated in the grant agreement. You will determine the Account(s) that correspond to each stipulated cost sharing line item. You will record the budget for the cost sharing portion Account-by-Account in the appropriate fund 04 and/or 24. Proceed to the section of this document titled, Record the Budget. Office of Finance and Treasurer 24 of 61

25 A2: Only a total amount is stated. Before entering the cost sharing budget in the appropriate fund 04 or 24, you must decide, based on the budget line items in the agreement, what accounts you will cost share. Record the budget for the cost sharing portion Account-by-Account in the appropriate fund 04 and/or 24. As noted with Q3 above, if salaries, wages and benefits are to be cost shared, the labor distribution in the HR system must be set up to feed the costs directly to fund 04 or 24. Proceed to the section of this document titled, Record the Budget. IMPORTANT NOTE on SPENDING COST SHARE FUNDS: Although you enter budget for non-salary/non-wage, non-benefit accounts in funds 04 and/or 24, you should always process transactions in the ACTUALS ledger against fund 20. After the expenses occur against fund 20, allocations transfer a part of the expenses from fund 20 to the cost share fund where you entered budget. Advise departments to always: refer to their ALL FUND GL Inquiry view when reviewing project finances, and, use fund 20 for all non-salary, non-wage, non-benefit expenditures. Office of Finance and Treasurer 25 of 61

26 Record the Budget The guidelines in this document relate specifically to Grants and Contracts budgets. For general information on creating budgets and processing transfers, refer to Business Process Document, Journal Entry for Budget Adjustments and Transfers located in the Finance and Treasurer web page under PeopleSoft Finance > Business Processes. A single grant project will typically include budgets in up to three ChartField combinations, each with a different fund. The possible ChartField combinations are: Project / Department / Accounts / FUND 20 for the restricted sponsor funds Project / Department / Accounts / FUND 04 for the unrestricted direct cost sharing Project / Department / Accounts / FUND 24 for the restricted direct cost sharing In each of the three ChartField combinations above, you will use the SAME project number and you will use the SAME department number. As we will see later, after you set up the budgets by fund, for a single project, you can view the budgets as a consolidated unit by using the ALL FUND view on GL Inquiry. The budget recorded in Fund 20 is the Sponsor-funded project budget which is defined as the direct expenses to be paid by the sponsor plus the net F&A costs payable by the sponsor. Understanding BUDGET versus ACTUALS Budget: A grant project budget in the PeopleSoft BUDGET ledger is the total amount authorized by the sponsor to support a project. The budget shows how the sponsor and the university have agreed to fund and spend the sponsor funds and any direct cost share funds provided by the University. The budget includes the portion you budget in the sponsor fund 20 PLUS the direct cost share portion you budget, if any, in unrestricted fund 04 or restricted fund 24 cost share fund. You record budget in the BUDGET ledger and, in some cases, in the BASEBUD ledger. Actuals: The actual funding and spending of a grant is recorded in the PeopleSoft ACTUALS ledger. Funding is an actual revenue from a sponsor (account 4XXXX) or, for direct cost share, a transfer from a University funding source (account 8XXXX). See Recognize Revenue / Fund the Grant in the next section of this document for more information about funding the project. Like the funding, the actual spending of a grant is recorded in the PeopleSoft ACTUALS ledger. When to Use Both the BUDGET Ledger and the BASEBUD Ledger To record the budget for a grant, enter journal entries into the BUDGET ledger. If you need to preserve changes the sponsor makes in the budget, enter identical budgets in both the BUDGET ledger and the BASEBUD ledger. After the original budget is entered into these two ledgers, use the BUDGET ledger ONLY to record any sponsor-approved changes to the budget. Do not change the BASEBUD. Balanced Budget Rule For each of the proposed ChartField combinations, the budget entered by the Campus must balance: Budgeted Revenues and Transfers from MUST EQUAL Budgeted Expenses and Transfers to Office of Finance and Treasurer 26 of 61

27 The Balanced Budget Rule holds regardless of whether revenues are received through letter of credit or if they are campus-billed. Budget Illustrations The remainder of this section of Record the Budget explains in detail how to record a budget as determined by the terms of the grant or contract agreement: Illustration 1 focuses on how to record the Sponsor Funded Portion of a budget: It presents the budget for an agreement that does not require committed direct cost sharing. The sponsor will pay all direct costs and F&A costs. There is no F&A cost sharing in this example Illustration 2 focuses on how to record the Direct Cost Sharing portion of a budget: It presents the budget for an agreement that requires committed direct cost sharing. The project is funded jointly by the sponsor and the university. The sponsor will pay F&A costs on all direct costs including the direct costs funded by the university. There is no F&A cost sharing in this example. There is no in-kind cost sharing in this illustration 2. Illustration 3 focuses on how to record the budget when the agreement includes: Sponsor Funding, Direct Cost Sharing, and F&A cost sharing. Illustration1: Budget for a Grant that does not Require Direct Cost Sharing Record the Sponsor-Funded Project Budget In this illustration, the project is funded in total by the sponsor. Thus, the entire budget will be recorded in Fund 20 (Restricted Expendable), using revenue and expense accounts outlined earlier in the Key ChartField Values section of this document. Department A receives a federally funded grant for $290,000. The agreement with the sponsor does not require committed direct cost sharing by the university. The agreement does require F&A costs calculated at 48.5% of direct costs. The equipment item of $20,000 is excluded from F&A. The University will not cost-share the F&A costs. Information from Department A s Project Create Form is shown below. Because there is no cost sharing, Department A will use just one department /fund /project combination when it records the budget. BU Proj Number Proj Name Mgr/PI Date PI ID Eff Date Proj St UMS Fruit Study O Bill Code CFDA Exp Code Proj GC Type Start End MR GR Dept Fund Prog Chartfield Combination # Office of Finance and Treasurer 27 of 61

28 Journal Entry Illustration 1: Department A has elected to record both Base Budget and Current Budget by posting the following journal entry to the BASEBUD ledger and the BUDGET ledger, respectively. BU DEPT FUND PROGRAM PROJECT ACCOUNT CLASS AMOUNT Jln Line Description UMS (290,000.00) Grants - Federal UMS , Non-Faculty Salaries UMS , Wages Classified - Regular UMS , Employee Benefits Distribution UMS , Equip with unit cost >= $5000 UMS Printing UMS , Supplies and Materials UMS In-State Travel UMS , F&A Facilities and Admin Costs Total Revenue (credits) of $290,000 = Total Expenses and Transfers (debits) of $290,000. GL Inquiry displays the effect of the above journal entries like this: Sponsor-Funded Budget Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 1) Department: Department A Fund Code: 20 Restricted Expendable Program: Project: Fruit Study Operating Unit: Account Description Class Base Budget Current Budget Current Month Year-to- Date Project-to- Date Encumb Budget Variance Grants - Federal -290, , , Total Revenue -290, , , Non-Faculty Salaries 80, , , Wages Classified - Regular 19, , , Total Salaries & Wages 99, , , Employee Benefits Distribution 40, , , Total Compensation 140, , , Equip with unit cost >= $ , , , Printing Supplies and Materials 40, , , In-State Travel Total Supplies & Services 61, , , Total Expenses & Transfers 201, , , F&A Facilities and Admin Costs 88, , , Total Facilities & Admin 88, , , Total Net Expenses 290, , , Total Net Revenue and Exp Total Revenue (credits) of $290,000 = Total Expenses and Transfers (debits) of $290,000. The project budget is ready to guide Department A in their spending. The Department should limit spending to the amounts listed in the Current Budget column and should process transactions only against the Account codes listed in the Account column. Office of Finance and Treasurer 28 of 61

29 Illustration 2: Budget for a Grant that Requires Direct Cost Sharing Information from the Project Create Form BU Proj Number Proj Name Mgr/PI Date PI ID Eff Date Proj St UMS Fruit Study O Bill Code CFDA Exp Code Proj GC Type Start End MR GR Dept Fund Prog Chartfield Combination # Dept Fund Prog Chartfield Combination # When a grant or contract agreement includes committed direct cost sharing, you record the sponsorfunded portion of the budget in FUND 20 as shown in Illustration 1. Then you record the direct cost share portion in the cost share fund(s) described below. The budgets on each fund must follow the balanced budget rule : Budgeted Revenues and Transfers from MUST EQUAL Budgeted Expenses and Transfers to Department A receives a grant of $290,000: $191,500 will be funded by the federal sponsor and the University has made a commitment to provide direct cost sharing of $98,500. The University will fund its portion from unrestricted funds. The F&A rate is 48.5%. According to the grant agreement, the budget is as follows: BUDGET AS LISTED IN THE AGREEMENT Sponsor University Funds Funds TOTAL Salaries $ 40,000 $40,000 $80,000 Wages 9,900 9,900 19,800 Benefits 20,400 20,400 40,800 Equipment 20,000 20,000 Printing Supplies 11,868 27,744 39,612 Travel ,106 Sub-Total of Direct Costs 103,318 98, ,818 F&A recovery 88,182* 88,182 TOTAL $191,500 $98,500 $290,000 * The allowed F&A recovery of $88,182 = 48.5% of total direct costs of $181,818 ($201,818 less $20,000 of equipment excluded from F&A). F&A is based on expenses paid by the sponsor plus those cost shared. Because the full F&A is payable by the sponsor, the entire F&A budget will be recorded in Fund 20. Office of Finance and Treasurer 29 of 61

30 Record the Sponsor-Funded Portion of the Budget Journal Entry Illustration 2: Department A will record the Sponsor portion of this budget in Fund 20 by processing the following journal entry to the BUDGET ledger (required) and the BASEBUD ledger (as needed): BU DEPT FUND PROGRAM PROJECT ACCOUNT CLASS AMOUNT Jln Line Description UMS (191,500.00) Grants - Federal UMS , Non-Faculty Salaries UMS , Wages Classified - Regular UMS , Employee Benefits Distribution UMS , Equip with unit cost >= $5000 UMS Printing UMS , Supplies and Materials UMS In-State Travel UMS , F&A Facilities and Admin Costs Total Revenue (credits) of $191,500 = Total Expenses and Transfers (debits) of $191,500. Record the University (Cost Sharing) Portion of the Budget Journal Entry Illustration 2: In this illustration, the University will be funding the cost sharing from unrestricted funds. Therefore, Department A records the University portion of this budget in Fund 04 by processing the following journal entry against the BUDGET ledger (required) and the BASEBUD ledger (as needed): BU DEPT FUND PROGRAM PROJECT ACCOUNT CLASS AMOUNT Jln Line Description UMS (98,500.00) Transfers From E&G UMS , Non-Faculty Salaries UMS , Wages Classified - Regular UMS , Employee Benefits Distribution UMS , Supplies and Materials UMS In-State Travel Total Revenue (credits) of $98,500 = Total Expenses and Transfers (debits) of $98,500 Please note the following about this entry: FUND: The fund used to record the direct cost sharing budget depends on the source(s) of funding: Department A will use Fund 04 because they are funding their cost share totally from unrestricted source E&G, fund 00. (They would use Fund 24 if the cost share was funded from a restricted source such as State appropriated MEIF funds, fund 23; or donor-restricted gifts, fund 20. They would use BOTH Fund 04 and Fund 24 if a portion of the direct cost share was funded from unrestricted funds and a portion was funded from restricted funds. If both funds were used, they would enter a balanced budget into each of the funds.) ACCOUNTS: Funding for the cost sharing is coming from a transfer of unrestricted E&G monies. Therefore, account was used to record the budgeted funding. Refer to the Key ChartField Office of Finance and Treasurer 30 of 61

31 Values section of this document for a refresher on commonly used accounts. The expense accounts used to record the budget represent the cost shared expenses identified in the grant agreement. The effects of these budget entries can be viewed in GL Inquiry in three ways: Fund 20 budget the portion from the sponsor. Fund 04 budget the portion of University direct cost share ALL FUNDS combines Fund 20 and Fund 04 budgets for Department A s project GL Inquiry displays the effect of the FUND 20 lines of the journal entry like this: Sponsor-Funded Portion: Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 2) Department: Department A Fund Code: 20 Restricted Expendable Program: Project: Fruit Study Operating Unit: Account Description Class Base Budget Current Budget Current Month Year-to- Date Project-to- Date Encumb Budget Variance Grants - Federal -191, , , Total Revenue -191, , , Non-Faculty Salaries 40, , , Wages Classified - Regular 9, , , Total Salaries & Wages 49, , , Employee Benefits Distribution 20, , , Total Compensation 70, , , Equip with unit cost >= $ , , , Printing Supplies and Materials 11, , , In-State Travel Total Supplies & Services 33, , , Total Expenses & Transfers 103, , , F&A Facilities and Admin Costs 88, , , Total Facilities & Admin Costs 88, , , Total Net Expenses 191, , , Total Net Revenue and Exp Total Revenue (credits) of $191,500 = Total Expenses and Transfers (debits) of $191,500. Office of Finance and Treasurer 31 of 61

32 GL Inquiry displays the effect of the FUND 04 lines of the journal entry like this: University (Cost Sharing) Portion: Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 2) Department: Department A Fund Code: 04 Unrestricted Cost Sharing Program: Project: Fruit Study Operating Unit: Account Description Class Base Budget Current Budget Current Month Year-to- Date Project-to- Date Encumb Budget Variance Transfers From E&G -98, , , Total Revenue -98, , , Non-Faculty Salaries 40, , , Wages Classified - Regular 9, , , Total Salaries & Wages 49, , , Employee Benefits Distribution 20, , , Total Compensation 70, , , Supplies & Materials 27, , , In-State Travel Total Net Expenses 98, , , Total Net Revenue and Exp Total Revenue (credits) of $98,500 = Total Expenses and Transfers (debits) of $98,500 Here is the ALL FUNDS view of the budget. To see it on the GL Inquiry search page, you would click on the tree option for FUND and select ALLFUND (you cannot type it in you must click on the tree icon and select it). Advise departments to use the ALL FUNDS view when reviewing the financial status of a project. GL Inquiry: ALL FUNDS: Combines Fund 20 and Fund 04 for this Project Fiscal Year: 2007 Accounting Period: 1-July (Illustration 2) Business Unit: UMS08 Department: Fund Code: ALLFUND System Office Department A All Funds Program: Project: Fruit Study Operating Unit: Account Description Class Base Budget Current Budget Current Month Year-to- Date Project-to- Date Encumb Budget Variance Grants - Federal -191, , , Transfers From E&G -98, , , Total Revenue -290, , , Non-Faculty Salaries 80, , , Wages Classified - Regular 19, , , Total Salaries & Wages 99, , , Employee Benefits Distribution 40, , , Total Compensation 140, , , Equip with unit cost >= $ , , , Printing Supplies and Materials 39, , , In-State Travel 1, , , Total Expenses & Transfers 201, , , F&A Facilities and Admin Costs 88, , , Total Facilities & Admin Costs 88, , , Total Net Expenses 290, , , Net Revenue & Expenses Total Revenue (credits) of $290,000 = Total Expenses and Transfers (debits) of $290,000. Office of Finance and Treasurer 32 of 61

33 Illustration 3: Budget for a Grant that Requires F&A Cost Sharing F&A Cost Sharing is recorded on Sponsor Fund 20 in Account as a negative number. It is an offset to the F&A Recovery Account Recording the budget for F&A Cost Sharing is straightforward. Include it as an additional line on the Fund 20 journal entry when you record the Sponsor budget. To calculate the amount of F&A Cost Sharing, you must first calculate the F&A costs. The amounts you budget in accounts and must reflect the F&A costs and F&A cost share cited in the sponsor agreement. Case 1: (Case 1 does NOT include Direct Cost Sharing. Case 1 is the same as illustration 1, previously discussed, except Case 1 includes F&A cost sharing.) Agreement Provisions: The Sponsor agrees: To provide an award of $290,000. To pay F&A costs at a rate of 48.5% on all direct costs, except $20,000 that will be spent on equipment with unit cost greater than $5,000. To fund all project direct costs totaling $201,818. The University agrees to cost share 50% of the F&A costs. Calculations: F&A Costs = $201,818 x 48.5% = $ 88,182 F&A Cost Share = 88,182 x 50.0% = -44,091 (Record in Account in Fund 20) $ 44,091 NET amount the Sponsor Pays Case 2: (Case 2 includes Direct Cost Sharing. Case 2 is the same as illustration 2, previously discussed, except Case 2 includes F&A cost sharing.) Agreement Provisions: The Sponsor agrees: To provide an award of $191,500. To pay F&A costs at a rate of 48.5% on all direct costs, except $20,000 that will be spent on equipment with unit cost greater than $5,000. To fund project direct costs of $138,804. The University agrees: To fund direct costs of $98,500. To cost share 50% of the F&A costs. Calculations: Direct costs = $138,804 plus $98,500 = $237,304 Direct costs subject to F&A = $237,304 less $20,000 equipment = $217,304 F&A Costs = $217,304 x 48.5% = $105,392 F&A Cost Share = $105,392 x 50.0% = -52,696 (Record in Account in Fund 20) $ 52,696 NET amount the Sponsor Pays Because the Sponsor pays the University for the net F&A costs, you do not enter F&A or F&A cost share budgets in cost share funds 04 or 24, even though part of the F&A the Sponsor pays is calculated against the direct costs in those funds. Following is the BUDGET ledger journal entry for Case 2. Office of Finance and Treasurer 33 of 61

34 Journal Entry Illustration 3: Department A has elected to record both Base Budget and Current Budget by posting the following journal entry to the BASEBUD ledger and the BUDGET ledger, respectively. BU DEPT FUND PROGRAM PROJECT ACCOUNT CLASS AMOUNT Jln Line Description UMS (191,500.00) Grants - Federal UMS , Non-Faculty Salaries UMS , Wages Classified - Regular UMS , Employee Benefits Distribution UMS , Equip with unit cost >= $5000 UMS Printing UMS , Supplies and Materials UMS In-State Travel UMS , F&A Facilities and Admin Costs UMS (52,696.00) F&A Cost Sharing UMS (98,500.00) Transfers From E&G UMS , Non-Faculty Salaries UMS , Wages Classified - Regular UMS , Employee Benefits Distribution UMS , Supplies and Materials UMS Supplies and Materials Total Revenue and Transfers To (credits) of $290,000 = Total Expenses and Transfers (debits) of $290,000. GL Inquiry: ALL FUNDS: Combines Fund 20 and Fund 04 for this Project Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 3) Department: Department A Fund Code: ALLFUND All Funds Project: Fruit Study Account Description Class Base Budget Base Budget Current Month Year-to- Date Project-to- Date Encumb Budget Variance Grants - Federal -191, , , Transfers From E&G -98, , , Total Revenue -191, , , Total Transfers-In -98, , , TOTAL Project Resources -290, , Non-Faculty Salaries 80, , , Wages Classified - Regular 19, , , Total Salaries & Wages 99, , , Employee Benefits Distribution 40, , , Total Compensation 140, , , Printing Supplies and Materials 75, , , In-State Travel 1, , , Total Supplies & Services 76, , , Equipment > $ , , , Total Equipment 20, , , Total Expenses & Transfers 237, , , F&A Facilities and Admin Costs 105, , , F&A Cost Sharing -52, , , Total Facilities & Admin 52, , , Total Net Expenses 290, , , Total Net Revenue and Exp Total Revenue and Transfers To (credits) of $290,000 = Total Expenses and Transfers (debits) of $290,000. Office of Finance and Treasurer 34 of 61

35 Recognize Revenue / Fund the Grant Figures you enter into the BUDGET ledger tell us how much both the sponsor and the University have agreed to fund and spend for the project. The BUDGET ledger journal entry does not move funds into the project. Actual funding occurs on journal entries that use the ACTUALS ledger. Sponsor Portion: Funding for the sponsor portion of the project is entered into FUND 20 as grant revenue. It is collected either in advance, or on a reimbursement basis, depending on the terms of the agreement. Currently, for campus billed projects, we recognize revenue in our accounting system when cash is received from the sponsor. However, according to generally accepted accounting principles (GAAP), grant revenue is to be recognized to the extent of expenditures. Until the PeopleSoft Grants Module is implemented, we will continue to recognize grant revenue on a cash basis throughout the fiscal year and the SAD will continue to make an audit adjustment at fiscal year-end to recognize and accrue any uncollected or unbilled amounts. Amounts received from the sponsor and amounts accrued at year-end are credited to the appropriate 43XXX account signifying whether the grant is federal, State of Maine, or corporate, for example. You can see the different 43XXX revenue accounts in the Key ChartField Values portion of this document. Direct Cost Share Portion: Funding for the direct cost share portion of the project is entered in FUND 04, if it is from an unrestricted source; or, in FUND 24, if it is from a restricted source. Campuses are responsible for processing journal entries on the ACTUALS ledger to transfer direct cost share funds into the project. Transfers should occur after the budgets are entered and before, or as soon as, spending begins. The illustration below shows a typical journal entry that transfers direct cost share funds from a department to a project. Illustration 4: Fund Direct Cost Sharing BU Jln Line Description AMOUNT DEPT ACCOUNT CLASS FUND PROGRAM PROJECT debit --> UMS08 Fund cost sharing 98, xxxxxx credit--> UMS08 Fund cost sharing (98,500.00) Below is the GL Inquiry display you will see after the journal entry is posted. The $98,500 transferred into fund 04 of the project appears in the Current Month, YTD and PTD columns. The Budget Variance shows $0 since the full amount of direct cost share was transferred. If less than the full amount had been transferred, the Budget Variance would show the amount still due (as a negative number.) Office of Finance and Treasurer 35 of 61

36 GL Inquiry Display Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 4) Department: Fund Code: 04 Program: Department A Unrestricted Cost Sharing Project: Fruit Study Operating Unit: Account Description Class Base Budget Current Budget Current Month Year-to-Date Project-to- Date Encumb Budget Variance Transfers from E&G -98, , , , , Total Revenue -98, , , , , Non-Faculty Salaries 40, , , Wages Classified - Regular 9, , , Total Salaries & Wages 49, , , Employee Benefits Distribution 20, , , Total Compensation 70, , , Supplies & Materials 27, , , In-State Travel Total Supplies & Services 28, , , Total Net Expenses 98, , , Total Net Revenue and Exp , , , , Key points to keep in mind when transferring direct cost share funds to a project: Do the journal entry on the ACTUALS ledger. On the debit line of the Journal Entry, use these ChartFields: Amount: Enter the amount the department is sending to the project Department: enter the Department which is sending the funds to the project Account: o Use the transfer to account if funds are coming from an unrestricted source o Use the transfer to account if funds are coming from a restricted source Fund: Use the fund that is providing the cost share. In the above illustration it is 00 for unrestricted E&G Project: Leave blank On the credit line of the Journal Entry, use these ChartFields: Amount: Enter funds the project will receive Department: enter the Department to which the project is assigned Account: o Use if the funds are coming from unrestricted E&G o Use if the funds are coming from unrestricted designated o Use if the funds are coming from a restricted source o Use if the funds are coming from state appropriated, e.g., MEIF Fund: o o Use Fund 04 if the funds are from an unrestricted source, E&G for example Use Fund 24 if the funds are from a restricted source, MEIF or gifts, for example Project: enter the Project that is receiving the direct cost share funds Office of Finance and Treasurer 36 of 61

37 Spend the Grant With the exception of salaries and benefits that are to be charged directly to the cost share fund 04 and/or 24, charge all remaining expenses to the sponsor portion of the grant in fund 20--Restricted Expendable. As previously discussed in the Set Up Monthly Allocations section of this document, monthly allocations move a percent of non-salary and benefit costs from the sponsor fund 20 to the cost sharing fund 04 or fund 24. The allocation process credits the cost shared accounts in fund 20 and debits the same accounts in fund 04 and/or 24. For example, when travel is cost-shared at 50%, the allocation credits the travel account in fund 20 for 50% of the total project-to-date expenses and debits the travel account in fund 04 or 24. Please note, for grants that existed before the implementation date for PeopleSoft GL, (July, 2005) the cost sharing expense entry may not be as described above. For those projects, cost sharing entries post to account 65720, Direct Cost Sharing. This account will be phased out as these grants are closed. As previously mentioned, any cost-shared salaries and wages must be fed directly to fund 04 or 24 from the HR system. For this to happen, the Campus must ensure that the applicable persons labor distributions are set up appropriately in the HR system. Illustration 5: Allocate Costs to a Direct Cost Sharing Fund Department A s $290,000 federally funded research grant requires $98,500 in direct cost sharing. Department A has spent $200 in instate travel and $16,416 in salaries, wages, and benefits, half on each fund. Prior to the monthly allocation for direct cost sharing, the sponsor portion in fund 20 and the direct cost sharing portion in fund 04 would look as follows: GL Inquiry Display: (Fund 20 BEFORE allocations. $200 is charged to travel) Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 5) Department: Fund Code: 20 Program: Department A Restricted Expendable Project: Fruit Study Operating Unit: Account Description Class Base Budget Current Budget Current Month Year-to- Date Project-to- Date Encumb Budget Variance Grants - Federal -191, , , Total Revenue -191, , , Non-Faculty Salaries 40, , , , , , Wages Classified - Regular 9, , , Total Salaries & Wages 49, , , , , , Employee Benefits Distribution 20, , , , , , Total Compensation 70, , , , , , Equip with unit cost >= $ , , , Printing Supplies and Materials 11, , , In-State Travel Total Supplies & Services 33, , , Total Expenses & Transfers 103, , , , , , F&A Facilities and Admin Costs 88, , , Total Facilities & Admin Costs 88, , , Total Net Expenses 191, , , , , , Total Net Revenue and Exp , , , , Office of Finance and Treasurer 37 of 61

38 GL Inquiry Display: (Fund 04 BEFORE allocations. Nothing is charged to travel) Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 5) Department: Fund Code: 04 Program: Department A Unrestricted Cost Sharing Project: Fruit Study Operating Unit: Account Description Class Base Budget Current Budget Current Month Year-to- Date Project-to- Date Encumb Budget Variance Transfers From E&G -98, , , , , Total Revenue -98, , , , , Non-Faculty Salaries 40, , , , , , Wages Classified - Regular 9, , , Total Salaries & Wages 49, , , , , , Employee Benefits Distribution 20, , , , , , Total Compensation 70, , , , , , Supplies & Materials 27, , , In-State Travel Total Net Expenses 98, , , , , , Total Net Revenue and Exp , , , , The System Accounting Department now runs the monthly allocation process for direct cost sharing that moves a portion of the travel costs in fund 20 to fund 04 (the Campus cost shared $456 of travel which represents 41.23% of total travel costs for the grant ($1,106 x 41.23% = $456). The following journal entry is posted as part of the allocation process: BU Jrnl Line Description AMOUNT DEPT ACCOUNT CLASS FUND PROGRAM PROJECT UMS08 DA UMS08 DA (82.46) Note the journal entry does NOT make any adjustment to salaries and benefits even though they are costshared. This is because salaries and benefits were DIRECT charged to each fund. They are not included in allocations. After the above entry is posted the GL Inquiry display looks like this: Office of Finance and Treasurer 38 of 61

39 GL Inquiry Display: (Fund 20 AFTER allocations. Travel cost decreases by $82.46 from $ to $117.54) Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 5) Department: Department A Fund Code: 20 Restricted Expendable Program: Project: Fruit Study Account Description Class Base Budget Current Budget Current Month Year-to- Date Project-to- Date Encumb Budget Variance Grants - Federal -191, , , Total Revenue -191, , , Non-Faculty Salaries 40, , , , , , Wages Classified - Regular 9, , , Total Salaries & Wages 49, , , , , , Employee Benefits Distribution 20, , , , , , Total Compensation 70, , , , , , Equip with unit cost >= $ , , , Printing Supplies and Materials 11, , , In-State Travel Total Supplies & Services 33, , , Total Expenses & Transfers 103, , , , , , F&A Facilities and Admin Costs 88, , , , , , Total Facilities & Admin Costs 88, , , , , , Total Net Expenses 191, , , , , , Total Net Revenue and Exp , , , , GL Inquiry Display: (Fund 04 AFTER allocations. Travel cost increases by $82.46 from $0 to $82.46) Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 5) Department: Fund Code: 04 Program: Department A Unrestricted Cost Sharing Project: Fruit Study Account Description Class Base Budget Current Budget Current Month Year-to-Date Project-to- Date Encumb Budget Variance Transfers From E&G -98, , , , , Total Revenue -98, , , , , Non-Faculty Salaries 40, , , , , , Wages Classified - Regular 9, , , Total Salaries & Wages 49, , , , , , Employee Benefits Distribution 20, , , , , , Total Compensation 70, , , , , , Supplies & Materials 27, , , In-State Travel Total Net Expenses 98, , , , , , Total Net Revenue and Exp , , , , The charge to In-State Travel Account 61400, previously $200 on Fund 20, is allocated between Fund 20 ($117.54) and Fund 04 ($82.46). The AFTER Fund 20 snapshot also show the impact of the F&A allocation which is run, along with F&A Cost Sharing, just prior to direct cost share allocations. Office of Finance and Treasurer 39 of 61

40 Place a Project on Hold to Prevent Transactions All projects have a Status and a Project Status as you can see from the ChartField Values page shown below for project : The Status of a project is either: Active or Inactive. When a project s Status is Active, entries may be posted to the project. When the Status is Inactive, entries will not post. On PeopleSoft general ledger, status is not effective dated. Thus, the dates a project changes from Active to Inactive or from Inactive to Active cannot be tracked. The Project Status of a project is either: Open, Hold, or Closed. The Project Status of a project has no bearing on whether entries can be posted. The Project Status effective date is shown above to the left of the Project Status. When you request a change in Project Status, unless you request a specific date, it will be effective dated the day the System Accounting Department makes the change. This is how Status and Project Status are used to manage and monitor projects: When you request a new project, it is assigned a Status and Project Status of: Active / Open Entries will post. Just before you close the project, if you need to prevent further transactions on the project (while you are waiting for a final receipt, for example) you may ask SAD to change the Status and Project Status to: Inactive / Hold No entries will post. Request a change back to Active and Open when you are ready to process your final transactions. Caution! Before you request a Status of Inactive you need to be sure there are no payroll encumbrances on the project. If the payroll system feed attempts to post to an inactive project, it rejects the entire batch for your campus. For this reason, do not request Inactive/Hold when there are payroll encumbrances on the project. Office of Finance and Treasurer 40 of 61

41 When you are ready to permanently close a project*, ask SAD to change the Status and Project Status to: Inactive / Closed No entries will post. You may make no further changes to Status or to Project Status. *Before you submit a request to Close a project, please review the Close a Grant or Contract Project section of this document. Office of Finance and Treasurer 41 of 61

42 Process Voluntary Uncommitted Cost Sharing Cost sharing is the term that describes costs on a project that are not paid by the sponsor. There are three types of cost sharing: Mandatory Cost Sharing Voluntary Committed Cost Sharing (University funds required per the award) Voluntary Uncommitted Cost Sharing Please see the Cost Sharing Administrative Practice Letter (APL) for a full discussion on cost sharing. You can click this link to reach the Cost Sharing APL on the Finance and Treasurer web page: APL s The procedures below explain how to process voluntary uncommitted cost sharing. This type of cost sharing occurs when a deficit exists in a project at the end of the grant period, and a campus moves the cost overruns, often to the unrestricted Closing Department and Fund identified on the project s Project Create Form. 1. Verify that all sponsor funds to which we are entitled have been recorded as revenue in the ACTUALS ledger of the project. 2. Verify that all committed cost sharing has been funded by the University and appears in the ACTUALS ledger of the project s cost share fund 04 and/or fund Verify that allocation rates for benefits, F&A costs, F&A cost sharing, and committed direct cost sharing are current and correct. Note if you have F&A and F&A cost sharing they will exceed budget unless the overruns are on excluded accounts. 4. Review the balances in sponsor Fund 20 and cost share Funds 04 and/or Fund 24 to determine which accounts have been overspent. Adjust these amounts within each fund using accounts that have been under-spent as allowable by the sponsor. Verify the account level variances are within acceptable sponsor limits. 5. After you have completed any adjustments you identified in steps 1-4, determine the amounts and accounts from which you will remove costs from the project. Proceed to Step Prepare a journal entry*on the ACTUALS ledger to move overruns from their account(s) in fund 20 to the same account(s) in direct cost share fund 04 or 24. The impact of this part of the journal entry is that fund 20 now contains only the total costs payable by the sponsor. The committed cost sharing and cost overruns are in fund 04 and/or 24. Next, in the same journal entry, move the total dollar amount of the cost overruns out of the project to a ChartField combination identified by management. Move the overruns by crediting account voluntary uncommitted cost sharing in the applicable cost share fund 04 and/or 24 and debiting account in the ChartField combination to which you are moving the overrun. To summarize, lines of the single journal entry are: Credit: to the accounts in fund 20 from which you will remove expenses. Do not remove overruns on the F&A or F&A cost share accounts. They will self-correct after you remove excess expenses and allocations are run. Debit: to fund 04 or 24 the same accounts and amounts you used in the credit above Credit: to account (Vol Uncommitted Cost Sharing) in fund 04 or 24 for the sum of the amount you credited above plus the amount of overruns in fund 04 or fund 24. Office of Finance and Treasurer 42 of 61

43 Debit: to account (Vol Uncommitted Cost Sharing) for the same amount as the credit to that account, using the ChartField combination (usually unrestricted) to which you will move the overruns. Do not include the project in the project ChartField of the line with the unrestricted fund. DO include the project in the journal line description, however. * Do not include 5XXXX salary and benefit overruns on a JE. You must use the LDA process in the HR System to remove overruns on salaries and benefits. Here is an illustration of a Journal Entry that follows the procedures just described: Illustration 6: Voluntary Uncommitted Cost Sharing Journal Entry Department A s $290,000 federally funded research grant includes $191,500 from the sponsor and requires $98,500 in voluntary committed direct cost sharing. The ALLFUND GL Inquiry display (not shown here) indicates Department A has spent $150 above the sponsor and direct cost sharing budgets combined on Account 61400, In-State Travel. The Campus has determined it may not move these costs to another project. It will fund the overruns through voluntary uncommitted cost sharing. Prior to the voluntary cost sharing journal entry, the project s GL Inquiry display for Fund 20 (Sponsor) and the GL Inquiry display for Fund 04 (Direct Cost Share) would look as follows. The $150 overrun viewed on the ALLFUND GL Inquiry display is made up of $-88 on Fund 20 and $-62 on fund 04. $-62 is the amount of the overrun that was direct cost shared to fund 04 when allocations were run. GL Inquiry Display Fund 20 BEFORE voluntary uncommitted cost sharing journal entry: Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 6) Department: Fund Code: 20 Program: Department A Restricted Expendable Project: Fruit Study Account Description Class Base Budget Current Budget Current Month Year-to-Date Project-to-Date Encumb Budget Variance Grants - Federal -191, , , , Total Revenue -191, , , , Non-Faculty Salaries 40, , , , Wages Classified - Regular 9, , , , Total Salaries & Wages 49, , , , Employee Benefits Distribution 20, , , , Total Compensation 70, , , , Equip with unit cost >= $ , , , , Printing Supplies and Materials 11, , , , In-State Travel Total Supplies & Services 33, , , , Total Expenses & Transfers 103, , , , F&A Facilities and Admin Costs 88, , , , Total Facilities & Admin Costs 88, , , , Total Net Expenses 191, , , , Total Net Revenue and Exp Office of Finance and Treasurer 43 of 61

44 GL Inquiry Display Fund 04 BEFORE voluntary uncommitted cost sharing journal entry: Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 6) Department: Fund Code: 04 Program: Department A Unrestricted Cost Sharing Project: Fruit Study Operating Unit: Account Description Class Base Budget Current Budget Current Month Year-to- Date Project-to- Date Encumb Budget Variance Transfers From E&G -98, , , , Total Revenue -98, , , , Non-Faculty Salaries 40, , , , Wages Classified - Regular 9, , , , Total Salaries & Wages 49, , , , Employee Benefits Distribution 20, , , , Total Compensation 70, , , , Supplies & Materials 27, , , , In-State Travel Total Supplies & Services 28, , , , Total Net Expenses 98, , , , Total Net Revenue and Exp Here is the voluntary uncommitted cost sharing journal entry you would record on the ACTUALS ledger to move the overruns out of the project and into an unrestricted ChartField combination: BU Jln Line Description AMOUNT DEPT ACCOUNT CLASS FUND PROGRAM PROJECT UMS08 Instate Travel (88.00) UMS08 Instate Travel UMS08 VUCS on (150.00) UMS08 VUCS on When doing this journal entry: List the project number on the Journal Line Description of the account lines of the journal entry. Do not include adjustments to F&A or F&A cost share on this journal entry. After you remove the overruns, the allocations process will back out both the excess F&A charges and credits from the project as well as from the Campus F&A Net Recovery pool. After the voluntary uncommitted cost sharing journal entry is posted, and allocations have adjusted the F&A and F&A cost sharing amounts, the GL Inquiry displays for the grant will appear as follows: Office of Finance and Treasurer 44 of 61

45 GL Inquiry Display Fund 20 AFTER voluntary uncommitted cost sharing journal entry and allocations: Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 6) Department: Department A Fund Code: 20 Restricted Expendable Program: Project: Fruit Study Account Description Class Base Budget Current Budget Current Month Year-to-Date Project-to-Date Encumb Budget Variance Grants - Federal -191, , , , Total Revenue -191, , , , Non-Faculty Salaries 40, , , , Wages Classified - Regular 9, , , , Total Salaries & Wages 49, , , , Employee Benefits Distribution 20, , , , Total Compensation 70, , , , Equip with unit cost >= $ , , , , Printing Supplies and Materials 11, , , , In-State Travel Total Supplies & Services 33, , , , Total Expenses & Transfers 103, , , , F&A Facilities and Admin Costs 88, , , , Total Facilities & Admin Costs 88, , , , Total Net Expenses 191, , , , Total Net Revenue and Exp As you can see, on Fund 20: The journal entry removes the overrun from the Sponsor s Instate Travel charges. F&A Allocations removes the $42.68 charge related to the overrun. The bottom line for fund 20 is $0. Office of Finance and Treasurer 45 of 61

46 GL Inquiry Display Fund 04 AFTER voluntary uncommitted cost sharing journal entry and allocations: Fiscal Year: 2007 Accounting Period: 1-July Business Unit: UMS08 System Office (Illustration 6) Department: Fund Code: 04 Program: Department A Unrestricted Cost Sharing Project: Fruit Study Operating Unit: Account Description Class Base Budget Current Budget Current Month Year-to- Date Project-to- Date Encumb Budget Variance Transfers From E&G -98, , , , Total Revenue -98, , , , Non-Faculty Salaries 40, , , , Wages Classified - Regular 9, , , , Total Salaries & Wages 49, , , , Employee Benefits Distribution 20, , , , Total Compensation 70, , , , Supplies & Materials 27, , , , In-State Travel Vol Uncommitted Cost Sharing Total Supplies & Services 28, , , , Total Net Expenses 98, , , , Total Net Revenue and Exp Your journal entry shows in the direct cost share fund 04: the accounts and amounts of the overruns, i.e., $150 overspent in account 61400, and in account 65730, the amount of voluntary uncommitted cost sharing related to this project, i.e., $150. The bottom line for fund 04 is $0. Leave the budget of the Voluntary Uncommitted Cost Sharing account at $0 and leave the In-State Travel account budget at $456, the amount approved in the award. The budget variances in the Budget Variance column for accounts and accurately reflect the deviations from the budget approved in the grant/contract agreement. Office of Finance and Treasurer 46 of 61

47 Close a Grant or Contract Project A grant or contract project is ready to be closed in PeopleSoft GL when all of the following conditions are met for each combination of project and fund: No encumbrances exist There are no outstanding invoices to be paid Any necessary expense transfers are complete All sponsor revenue due has been collected Excess sponsor revenue has been returned (see Revenues Exceed Expenses at End of Project section of this document) Revenue on direct cost share funds has been transferred in and any excess transferred out On GL Inquiry, in the Revenues/Expenses section, Total Net Revenue and Expenses in the Project To Date column equals zero for each project/fund combination. The Current Balance, in the Assets/Liabilities section of GL Inquiry is blank (except for Statistics Accounts listed below). Be sure to click before you review the Current Balance: o Statistics Accounts 90XXX If there are amounts on Accounts 90100, 90200, 90300, 90400, and 90500, SAD will remove them after you submit your request to close the project. Amounts on 90399, 90499, and are rates and will remain when the project is closed. o Grants Receivable and Deferred Grant Revenue must be blank. These accounts are used with letter of credit funding. If you are ready to close the project and either account has a balance, contact the System Manager of Sponsored Programs Accounting in the System Accounting Department. GL Inquiry Assets/Liabilities Display: Office of Finance and Treasurer 47 of 61

48 Campus Responsibilities: Verify the project meets the conditions outlined above Send an to the System Manager of Sponsored Programs Accounting indicating the project is ready to be closed. System Accounting Department Responsibilities: The System Manager of Sponsored Programs Accounting reviews the project. When he has confirmed that all conditions noted above are met, he approves the request. The System Manager of Sponsored Programs Accounting notifies the System Manager of Accounting Operations that the project may be closed. The System Manager of Accounting Operations changes the project status to C for Closed, and verifies that the project effective status is I for Inactive. Verification: A user can verify that a project has been closed by checking its Status and Project Status. On the Maine Street Menu, click: Enterprise Applications > Financials > Set Up Financials/Supply Chain > Common Definitions > Design ChartFields > Define Values > ChartField Values > Project Enter the project on the Project page, click Search, to open the following page, and verify that Status is Inactive and Project Status is Closed. This is the project s Status. Transactions will not process when the status of a project is Inactive. Office of Finance and Treasurer 48 of 61

49 Two other ways to verify the Status and Project Status of a project are: Click the project s attributes link on GL Inquiry. Project Status and Status Run a query. Running a query may be useful when you are checking a number of projects. For more information about queries, see the section of this document titled Monitor Your Grants and Contracts Projects. Note: Be alert when reviewing results of a PeopleSoft query: Status, as defined above, is reported under the column heading. Project Status, as defined above, is reported under the column heading. Office of Finance and Treasurer 49 of 61

50 Monitor Your Grants and Contracts Projects Previous sections of this document helped you set up a project including its attributes and BUDGET. It also described basic accounting entries that occur on the ACTUALS ledger. This section provides tools that will help you gather and analyze information about your projects: PeopleSoft queries help identify errors and potential compliance issues so you can make adjustments early on in the life of the project. Project Grouping by grant number is useful in combining information you need for reporting. PeopleSoft Queries Some of the queries in the chart below have been shared with a number of users and may be available on your PeopleSoft queries menu at: Maine Street Menu > Enterprise Applications > Financials > Reporting Tools > Query > Query Viewer When you click Query Viewer, the following page opens: Enter a Query Name (from the chart below) and click. For this example, enter PROJ_STATUS_CFDA_END. The query name will appear as shown below. Click the link located to the right of the query name. For some queries you may be asked to enter an accounting period. Enter the most recent period and click. When the query opens, click to see the entire query output. You can use your Edit/Find feature on your browser menu to locate a particular project or piece of information. You can use the Excel SpreadSheet link on the query output page to download the information to Excel format. If you have trouble locating a query, contact Janet Warnert for help. For the time being, the queries listed below are private, rather than public, queries. This means you cannot access them until they have been copied to you by an existing owner. The advantage of a private query, however, is once you have it copied to you, you can edit it to meet your specific needs. If you have not had query training, you can turn to the database specialists in your area to ask for help. Office of Finance and Treasurer 50 of 61

51 Some of the queries are customized for UM and USM. They can easily be edited to pull information related to another campus. Item to Monitor / Review OMB Circular A-110 allows 90 days to submit financial reports. How can I find out if I have any Open/Active projects that need to be closed? Review for Potential Unallowable Expenses: In monitoring phone charges, how can I find all projects that have any telephone-related charges or budgets? Query Name PROJ_MGR_A_I_O_H_ENDDATE PROJ_TELEPHONE_UM PROJ_TELEPHONE_USM Budgets should not occur in accounts F&A and F&A cost share on cost share Funds 04 or 24. Can I get a list of projects with cost share funds that have budgets and/or expenses on these two accounts? How can I get a list of the projects that have me identified as the Financial Contact? A PI asked me to provide a list of all Open/Active projects for which she is the project manager. What query should I use? (sort by Proj Mgr) I want to see projects that have status of Hold/Inactive. Can I get that list? (sort by status) I want to make sure F&A is being charged on all of the projects where I entered an F&A budget. Can I get a list with F&A Account that shows Budget and Actuals? Can I also get a list of F&A Cost SHARE Budgets and Actuals on Account 65710? I m trying to phase out projects that use old method direct cost share. Can I see which projects still have Budgets on Account 65720? How do I get a list of all of my projects for which old method direct cost share allocations are run? For New Method direct cost share, can I get a list that tells me which accounts on a project are costshared and which cost share fund is charged? I want to verify that the correct rates are charged for F&A costs and F&A cost share. Can I get a list? I want to make sure no CFDA numbers are missing on my projects. Can I get a list? I want to see if any of the projects I work with have letter of credit (LOC) billing. Can a query tell me? PROJ_65700_65710_04_24_USM PROJ_65700_65710_04_24_UM PROJ_FINANCIAL_CONTACT PROJ_MGR_A_I_O_H_ENDDATE PROJ_MGR_A_I_O_H_ENDDATE PROJ_BUDGET_65700_UM PROJ_BUDGET_65700_USM PROJ_BUDGET_65710_USM PROJ_BUDGET_65710_UM PROJ_BUDGET_65720_UM PROJ_BUDGET_65720_USM ALLOC_RULES_FA_FACS_DCS ALLOC_RULES_FA_FACS_DCS ALLOC_RATES_FR_LEDGER_SUM PROJ_STATUS_CFDA_END PROJ_MGR_STATUS_BILLCODE_END Office of Finance and Treasurer 51 of 61

52 Can I see a list of all of the projects associated with a single grant? The Balanced Budget Rule requires budgets to net to $0. How can I get a list of projects with budgets that are not balanced? Can I see a list of FAST subsidiary ledger numbers and their corresponding PS PROJECT number? Is there a list of functional expense code assignments to departments and projects? Can I get a list of employees and their ID s to use when I complete the Project Create Form? I need to review projects with sub-contracts. Can I get a list of projects that have budgets and/or costs on Accounts 6025X and 6027X? PROJ_GRANT_NUMBER_SORT_BY_NO PROJ_BUDGET_IS_ZERO_USM PROJ_BUDGET_IS_ZERO_UM PROJECT_FAST_TRANSLATE_UM PROJECT_FAST_TRANSLATE_USM PROJ_FUNC_EXPENSE_CODE PROJ_EMPLID_NAME PROJ_SUBCONTRACTS_USM PROJ_SUBCONTRACTS_UM Group Projects By Grant Number When a single grant requires you to set up more than one project, it is often useful to group the projects together by Grant Number for reporting purposes. For example, by viewing a grouping in GL Inquiry, for revenue Account 43520, Grants State of Maine, you can see a single number for the total amount budgeted in and a single number for the total amount received in for all of the Open status projects with the same Grant Number. Grouped information is especially useful in verifying total funding budgeted, received, and spent for a specific grant. You can cross-check the information against your award documents to confirm the amounts you budgeted are accurate. You can use the information for preparing reports you send to the sponsor. Keep in mind when viewing a project group, you will not see results for projects with Closed status, even though these project will appear along with other projects in the group. Projects are grouped by grant number on the UMS_PROJECT tree. Below is the node of the UMS_PROJECT tree that contains the three projects with the same grant number CA_MT_06_340. Section of the UMS_PROJECT tree: Office of Finance and Treasurer 52 of 61

53 You access the UMS_PROJECT tree by clicking on the tree symbol on the Project: line of GL Inquiry. To view the combined information for projects , , and you can locate your group by first using the feature (you can find at the top of the tree page) to locate one of the projects in your group, e.g., When locates the project, click the previous page icon (also at the top of the page) to take you to the group node located at the bottom of the previous page. Click on the group node, MEHHS_CA_DC_06_340, to highlight it to MEHHS_CA_MT_06_340 as shown above. Next click the button at the bottom of the tree page. The GL Inquiry page that returns shows the group node name in the Project: box as shown below. Click on GL Inquiry to load the combined information and open it by clicking on the MEHHS_CA_MT_06_340 results line at the bottom of the page. Office of Finance and Treasurer 53 of 61