Finance

1
Finance Administrative Information Council
(FAIC)Proposed MUSCUndesignated Sponsored
ProjectsPolicy Procedure

• December 3, 2004
• John True - Budget Analysis
• Ann Hall - Grants Contracts Accounting

2
Background - Compliance

• Compliance Issues Related to Sponsored Awards
• Personal Services expenditures for Sponsored
  Projects are charged to accounts either before
  budgets are established or after the budget
  (funded) period ends
• Lack of funds control - projects may run deficits
  until a new salary distribution is initiated
• Delays in removing salary fringe benefit
  expenditures can cause delays in project closeout
  financial reporting
• Late financial reporting
• Can cause audit findings in the Federally
  mandated A-133 Audit
• Can negatively impact future sponsored funding

3
Proposed New Policy

• Use new Undesignated Sponsored Projects to
  account for time periods when specific funding is
  not known
• Undesignated Sponsored New restricted projects
• Increase visibility improve accountability by
  placing these expenditures temporarily in a
  separate clearing UDAK

4
Procedures

• Charge expenditures during the fiscal year to
  Undesignated Projects while new Sponsored Awards
  are pending
• When new awards are funded, Department will
  initiate new salary distributions to transfer
  charges from Undesignated to New Sponsored UDAK
• Procedure is complementary to on-line fund change
  project
• Expenditures must be monitored monthly
  completely removed from Undesignated Projects
  near end of each fiscal year

5
Monitoring Procedures

• Monitoring responsibilities reside with the
  Departmental Business Manager
• Oversight responsibilities reside with
• Department Chair
• Dean
• Provost
• Reporting to Provosts Office, Dean, Department
  Chairs
• Aging Reports based on date that salary
  expenditure was originally incurred
• 0 - 30 days, 30 - 60 days, 60 - 90 days
• Over 90 days - Special red flag report
• Any expenditures remaining at year end will be
  moved by Budget Analysis and GCA to
  Departments unrestricted default UDAK

6
Complementary Projects

• New Internet Budget Solution (IBS) System
• Web-based budgeting
• Personal Services budgets for fiscal year are
  amended monthly based on most current salary
  distribution data
• Better comparison of budget to actual
• Pilot current underway
• Salary Distribution Improvements
• Electronic submission of salary distributions
  from UMS Web Application
• Interfaces to HR/Payroll System
• Streamlined workflow within Finance
  Administration
• Under Development

7
Implementation Steps

• Establish new Undesignated Sponsored UDAKs for
  each Department
• Restricted projects beginning with 691xx
• Budget Analysis and GCA to develop maintain
  master Undesignated cross-reference table
• Employee Home Department --gt Undesignated UDAK
• Programming required
• When Encumbrance Date is reached - create new
  distribution records to automatically charge
  Undesignated UDAK based on Employees Home
  Department