GRANTS

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GRANTS CONTRACTSPost-AwardKay Williams

• Business Managers Meeting
• November 14, 2006

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FY06 Sponsored Project Statistics

• Grants created 1,300
• Funds created 2,000
• Non-expired grants 2,432
• Grants in closeout 1,441

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FY06 Sponsored Project Statistics

• Total research expenses - 316,857,641
• Total sponsor expenses - 403,599,854
• Total F A - 78,005,006
• Total Tuition - 10,546,087
• Cash collections 422,880,694

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FY 2006 Sponsored Expenditures by College
Urbana Campus Only
All Sponsored
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NSF Audit of Labor Costs
Yikes!
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FY06 NSF Audit of Labor Costs - Objective

• Evaluate whether the Universitys internal
  controls are adequate to properly manage, account
  for and monitor salary and wage charges to NSF
  grants in accordance with the federal Office of
  Management and Budget (OMB) and NSF grant
  requirements.

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FY06 NSF Audit of Labor Costs - Objective

• Determine if salary and wage charges are
  allowable, allocable, and reasonable in
  accordance with Federal cost principles and NSF
  award terms and conditions.

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NSF FY06 Data

• In September GCO provided to NSF
• Transactions
• Finance 173, 977
• HR 30,608
• 778 Grants
• YTD Total 92,349,715
• 608 of the 778 Grants
• YTD Salary 31,139,353

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NSF Labor related costs

• SALARIES
• FRINGE BENEFITS
• TUITION
• F A .
• 2/3 OF THE ANNUAL
• NSF EXPENSES (estimated)

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Total FY 2006 Sponsored FederalResearch
Expenditures by Agency
NSF 35 of Federal Expenditures
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NSF Auditors Will

• Select approximately 30 salary records for
  detailed review
• Interview employees and/or Principal
  Investigators
• Review appointment letters and related employment
  documentation
• Review time records for hourly employees
• Compare budgeted versus actual expenditures on
  awards by expense category

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NSF Auditors Will

• Look at semi-annual expenditure confirmation
  reports
• Examine supporting documentation used to verify,
  complete, and sign semi-annual expenditure
  confirmations
• Review employee activities in the Activity
  Reporting System
• Review cost share records
• Review University policies and procedures related
  to payroll distribution and effort reporting

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NSF Audit - Who

• NSF Inspector General
• partnering with
• Mayer Hoffman McCann P.C.

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NSF Audit - When

• November 10 through 24
• Preliminary phone interviews

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NSF Audit - When

• November 27 through December 8
• NSF will be on site to
• Review policies and procedures
• Review payroll documentation
• Conduct at least six detailed interviews
• faculty and graduate students (not hourly)
• GCO and Departmental business office can
  participate, but restricted from commenting until
  end of interview

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NSF Audit - When

• January 2007
• NSF will be on site to
• Complete remaining interviews
• Finish review of documentation

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NSF Audit??? Potential Questions ???

• What work did you do how related to grants
  salary is charged to
• What grant(s) was your work related to
• How do you determine who is assigned and paid
  from a grant
• How do you track your total effort

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NSF Audit??? Potential Questions ???

• How do you verify cost share
• What documentation do you use to confirm salaries
  charged and cost shared on grant(s)
• Who authorizes labor redistributions why
  werent they initiated in a timely manner

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(No Transcript)
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ONE BAD AUDIT CAN HAVE A DOMINO EFFECTWE DO NOT
WANT TO GIVE OTHER SPONSORS A REASON TO COME
VISIT US
NOTE
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WE ARE ALL IN THIS TOGETHER
Dont forget ------
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Cost Transfers
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Cost transfers to or from a sponsored project
should be

• Initiated promptly (non-current transfers are a
  red flag to auditors, indicates insufficient
  monitoring by responsible party)
• Supported by documentation justifying the
  transfer
• Approved by PI when required (signed GC81 for
  non-current transfers and other cost
  reallocations)

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Costs may NOT be shifted to other sponsored
agreements

• in order to meet deficiencies caused by cost
  overruns
• to avoid restrictions, or
• for other reasons of convenience

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Cost Transfers Mistakes

• Perceived as mistakes
• Use anticipation funds at project start
• Suspect when processed at end of project
• Multiple transfers are a bad reflection of our
  review processes and systems

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Labor Redistribution Review

• Each month GCO will be selecting a
• weighted sample for review
• Terminated
• Overdraft
• Over 90 days old
• Cross grant
• Frequent redistribution of pay event

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UIUC Processing Cost Transfers for Sponsored
Research Projects

• As a Reminder
• Updated Guidelines were
• Re-issued 11/6/2006
• OBFS Website Grants - Announcements

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Semi-Annual Confirmations

• Jan-Jun 2006
• 67.79 return rate
• 250 outstanding NSF funds
• Jul-Dec 2005
• 97.03 return rate
• No outstanding NSF funds
• Jan-Jun 2005
• 96.43 return rate
• No outstanding NSF funds

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Semi-Annual Confirmations

• Failure to have confirmations on file can result
  in disallowed costs
• Must have PI signature unless GCO approves an
  extenuating circumstance allowing Department Head
  to sign
• Timely return

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Semi-Annual Confirmations

• Verify cost share effort and report any omissions
• Make sure the PI understands what (s)he is
  confirming
• Does the PI have all the documentation needed to
  verify charges

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Semi-Annual Confirmations

• January June 2006
• Second reminders sent November 13, copied to
  Department Head
• Third reminders will be copied to the Dean

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Cost Sharing

• Review cost share effort upon receipt of award
  and notify GCO of any changes
• Activity Reporting System - identify the C-FOAP
  and corresponding activity providing the cost
  share

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Cost Sharing

• Make sure cost share salary is charged to
  appropriate fund and program codes that are
  compatible with the sponsored project that cost
  share is being provided for
• Review cost share effort included on semi-annual
  confirmations and notate any changes or omissions

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Cost Sharing

• Cannot use federal dollars for cost sharing on
  federal awards
• Hard match notify GCO of any funds and/or
  program codes that are set up to record
  non-salary cost share

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Banner Accounts Receivable Query Forms

• Expended, Billed, Paid
• FZIBDET
• Billed Paid
• FZIBILL
• Billing Summary
• FZIGSUM
• Accounts Receivable Detailed Activity
• FZAAREV

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Review Your Projects

• We need your help dont assume that GCO is
  correct 100 of the time. Errors can and do
  happen. Some things to review and be aware of
• Verify FA rate(s) and that FA is properly
  calculating
• Check the budget
• Billing and cash collection issues

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OTHER ISSUES

• Publications acknowledgements and disclaimers
• Subrecipient monitoring be aware and notify GCO
  of any performance or financial issues
• Sandia Natl Lab foreign travel requires
  sponsor approval even if previously identified in
  the budget

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Sungard (SCT) Initiatives

• Multi-year Encumbrances
• Labor Redistribution (approval queues)
• Effort Reporting

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GCO Initiatives

• Customer Survey what is important to you
• Interface InfoEd to Banner
• Web based effort reporting
• Accounts Receivable report

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GCO Educational Classes

• GC 101 - Grants Contracts for Professional and
  Administrative Personnel (recently revised)
• Allowable Costs
• Cost Sharing

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Personnel Changes

• Amy Leng and Holly Spinner (HHS and Ed) have
  accepted departmental jobs
• New Audit Liaison Debra Short
• Grant Specialists
• Jessica Katterhenry (HHS and Ed)
• Sadi ODonnell (HHS and Ed)
• Eric Powell (Federal support)

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QUESTIONS?