Financial Management

1
Financial Management

• How Can I Spend Award Dollars

2
Congratulations on your Award-What do you do now?

• Hire or Pay Personnel
• Order Supplies
• Contract Lecturers
• Subcontract Work
• Make Travel Arrangements
• All need an account number from GCA

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Account Number

• Information sent from OSP to Grants
  Administration
• Statement of work, proposal or contract
• Budget
• Route sheet with signatures of approval

4
Purchasing

• Purchases for goods and services require a PO
  (purchase order)
• Contact the University Purchasing Office
• Office supplies may be purchased using the
  C-O-O-L system
• P-Cards can be used for incidental office
  supplies (requires prior approval from GCA)

5
Employee Travel

• Requires Completion of Travel Requisition
• PI or Designee Makes Reservations Personally
• Foreign Travel Must Specified in the Proposal or
  Contract Approved in advance in writing by the
  sponsor (if required) and appropriate University
  personnel (Dean, VP, etc.)

6
Participant Travel

• Participant travel is defined as taking a
  non-university employee who is covered under a
  sponsored program on a day or overnight trip.
• Sponsored Program participants may be students,
  professionals, and/or professors at other
  institutions or any non-university employees
  whose travel expenses are to be paid from grant
  funds.

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How Participant Travel is Reimbursed

• If a university employee travels with
  participants, the employee must prepare a single
  Travel Application, covering expenses for
  him/herself and all participants.
• If a participant pays their individual travel
  expenses, a request for reimbursement should be
  processed on a Travel Claim--Participant/Consultan
  t Form.

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Consultant vs Subcontract Agreements

• Consultant Limited activities performed by a
  private individual who is not an employee of the
  university.
• Subcontract When a material portion of the work
  will be accomplished by another institution or
  organization, use of the subawardee must be
  integral to the completion of the scope of work.

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Tests for Consulting Agreement

• Consultant does his/her work independently
  without supervision.
• Consultant has not been an employee of the
  university within the last 12 months.
• Consultant uses his or her own facilities or
  equipment to conduct the work.
• Consultant is not included on the list of
  excluded, suspended, or otherwise ineligible for
  participation in federal programs.

10
Agreements Used for Consultants and Subcontracts

• Consultant Agreements are administered through a
  Personal Services Contract. The university tax
  specialist reviews the contract
• Subcontracts are administered through a formal
  contract. GCA prepares a subcontract and sends
  it out for signatures. A scope of work, payment
  amount and contacts must be provided by the PI.

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Whose Money is it Anyway?

• The PI?
• The Dean?
• The Department?
• The College/School?
• OSP?
• GCA?
• The University?
• The State?
• The Sponsor?

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The Funding Source

• Sponsors direct how the funds are to be spent!
• GCA does not make rules. We follow the sponsors
  and Universitys rules, policies and procedures.
  In limited situations, GCA will get clarification
  to interpret certain issues.

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Guidelines for Fund Expenditures

• Reasonable Prudent Person Test
• Allocable Expenditure Benefits the Particular
  Project
• Allowable Expenditure Does Not Violate Sponsor
  or Texas State Restrictions
• Consistent Similar to Amounts Charged to Other
  University Activities
• Documented Invoice or Receipt

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General Cost Checklist

• Unallowable
• Alcoholic Beverages
• Contributions/Donations
• Fines and Penalties
• Items for Personal Use
• Pre-Award Costs
• Student Activity Costs
• Food
• Proposal Costs

• Allowable if Specified
• Business Meals
• Meeting Costs
• Conferences
• Memberships
• Promotional Items
• Certain Advertising
• Travel

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Examples of Unallowed Costs

• Coffee Mugs for Administrative Staff
• Bus Chartered for Administrative Staff
• Reunion for Former Participants
• T-shirts, Engraved Key Chains, Texas State
  Banners
• (Unless specifically requested in the proposal.)

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Other Elements of the Award

• Participant Support, Program Income, Cost
  Sharing, Financial Technical Reports and Effort
  Reporting

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Participant Support

• Payments can be made to participants in grant
  programs such as incentives to pay for
  miscellaneous expenses, tuition and for other
  grant related expenses.
• Subsistence payments Complete a
  Participant/Subsistence Payment Request Form and
  send to GCA.
• Tuition Paid directly by the grant to the
  university.
• Contact GCA

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Program Income

• Program Income is the gross income earned by the
  University that is directly generated by a
  supported activity or earned as a result of an
  award. (budget required)
• Examples
• Fees for services performed (Conference fee)
• Use or rental of property acquired
• Sale of commodities or items fabricated

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How Program Income Can Be Used

• Program Income should be identified in the grant
• proposal
• It is treated in the same way as the awarded
  funds.
• Generally, program income funds are used to cover
  expenditures first. (no, you cant keep it)
• A separate account in the grant range will be
  set-up by GCA to accurately track and report
  program income and related expenses.

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Cost Share (Match)In-Kind Contributions

• The amount of program costs that the University
  or another sponsor will contribute towards a
  sponsored activity.
• (Generally not the Federal government)
• The PI is responsible for documenting cost share
  and forwarding a copy of the documentation to GCA.

21
Effort Reporting

• The University is required by the federal and
  state government to certify the effort of
  employees on sponsored projects.
• Certification is required at each long semester
  for faculty and monthly for staff positions.

22
Program Management

• Reporting and Changing Terms of the Award

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Changes Requiring Prior Approval For Most Awards

• Scope of Project
• Key Personnel
• PIs Absence 3 Months or 25 Reduction in Time
• Additional Funding Needed
• Transfer Between Indirect and Direct Costs
• Transfer of Funds Allotted for Training (Tuition)
• Subcontracts Agreements
• Costs that Require Prior Approval in OMB Circulars

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No Cost Extensions

• Most federal agencies allow a one-time 12-month
  nocost extension. This does not require a
  reason and does not contain additional funding.
• It must be requested approximately 45 days prior
  to the end of the award.
• Contact GCA to make this request.