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ACES Certificate Three Module 4 Accounting I

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Title: ACES Certificate Three Module 4 Accounting I

1
ACESCertificate ThreeModule 4Accounting I

Steve Koths
Jim Mattern
Debbie Musser
Kevin Peterson
Lisa Sharkey

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ACESCertificate ThreeModule 4Accounting I

Steve Koths
Jim Mattern
Debbie Musser
Kevin Peterson
Lisa Sharkey

3
Instructors

Steve Koths , Financial Officer, College of
Engineering
863-4323 or smk7_at_psu.edu
Jim Mattern, Manager of Research Accounting
865-7525 or Mattern_at_psu.edu
Debbie Musser, Supervisor for Grants Contracts
Accounting, Penn State College of Medicine
(717) 531-5760 or dem6_at_psu.edu
Kevin Peterson, Financial Officer, College of
Earth Mineral Sciences
863-6303 or kxp5_at_psu.edu
Lisa Sharkey, Assistant Financial OfficerCollege
of Engineering
865-1844 or ljs9_at_psu.edu

4
Learning Objectives

Upon Completion of this module, you will have a
better understanding of
Setting up an account in IBIS
How to manage restricted accounts in IBIS
The variety of ways to generate reports
Finalize the financial aspects of the project
Closeout the account in IBIS.

5
Account Setup

AURA Form(Add University Restricted Account)
BARA Form(Budget Amendment for Restricted
Accounts)
Other Issues
Account Controls (UDOD)
Cost Centers (UCCA)
Cost Share/Matching

6
Account Management

Expenditure Planning
Fringe and Overhead Verification
Basic Reporting
Other Issues

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Account Closeout

90 day report
ATC
Dates
Expenditure Review

8
Account Setup

Okay the project has been awarded, now what do I
do?

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Whats an IBIS?

10
IBIS File Structures
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IBIS File structures
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Account Setup

AURA Form(Add University Restricted Account)
BARA Form(Budget Amendment for Restricted
Accounts)
Other Issues
Cost Centers
Cost Share/Matching

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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
AURA Form
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Account Setup
So now that I have an account, can I start
spending yet?
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Account Setup
BARA Form
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Account Setup
BARA Form
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Account Setup
BARA Form
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Account Setup
BARA Form
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Account Setup
BARA Form
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Account Setup

Other Issues
Cost Share (see guideline RAG10)
Mandatory - Required as a condition to receive an
award, and specified by the agency in the
proposal guidelines or program announcement.
Voluntary - committed vs. uncommitted
Voluntary Committed Committed by the University
through the inclusion in the proposal as a
specific commitment. Committed Cost Sharing
both Mandatory and Voluntary Committed are
accounted for the same and per OMB Circular A-21,
must be properly documented for cost accounting
purposes.
Voluntary Uncommitted University expenses, such
as faculty salaries, that are over and above that
which is committed and budgeted for in a
sponsored agreement. Uncommitted cost sharing
MUST NOT be identified specifically in the
proposal budget or award.

33
Account Setup

Other Issues
Cost Share (see guideline RAG10)
Mandatory
Voluntary - committed vs. uncommitted

34
Account Setup

Other Issues
Cost Centers
Cost Centers are a breakdown of the account
(budget/fund combination) to capture income and
expense details in "subaccounts." The Financial
Officer (or users with access to UCCA) can add
Cost Centers to an account based on the financial
management and reporting needs of the department.

35
Account Management

Expenditure Planning
Fringe and Overhead Verification
Basic Reporting
Other Issues

36
DETERMINING THE ALLOWABILITY, ALLOCABILITY, AND
REASONABLENESS OF COSTS ON SPONSORED PROJECTS

Policy RA01
http//guru.psu.edu/policies/Ra01.html
The Policy establishes University guidelines
on determining the allowability, allocability,
and reasonableness of costs on sponsored
projects. Federal regulations that govern this
determination are contained in Office of
Management and Budget (OMB) Circular A-21.

37
Expenditure Planning

Determining the allowability, allocability, and
reasonableness of costs on sponsored project
Equipment
Salary
Sub-awards
Other Encumbrances

38
Allowability of Costs

Policy RA01
http//guru.psu.edu/policies/Ra01.html
a) reasonable
(b) they must be allocable to sponsored projects
under the principles and methods provided
therein
(c) consistent treatment through application of
those generally accepted accounting principles
appropriate to the circumstances, and in
compliance with the University's Cost Accounting
Standards Board Disclosure Statement and
(d) compliance - they must conform to any
limitations or exclusions set forth in OMB
Circular A-21, the award document, or the
agency's guidelines as to types or amounts of
cost items.

39
Allocability of Costs

Policy RA01
http//guru.psu.edu/policies/Ra01.html
Is the expense related to the project? A cost is
allocable to a particular cost objective (i.e., a
specific function, project, sponsored project,
department, or the like) if the goods or services
involved are chargeable or assignable to such
cost objective in accordance with relative
benefits received or other equitable
relationship. -- Subject to the foregoing, a cost
is allocable to a sponsored project if
(a) Incurred solely to advance the work under the
sponsored project
(b) Benefits both the sponsored project and other
work of the institution, in proportions that can
be approximated through use of reasonable
methods or

40
Allocability of Costs

Policy RA01
http//guru.psu.edu/policies/Ra01.html
(c) necessary to the overall operation of the
institution and, in light of the principles
provided in A-21, is deemed to be assignable in
part to sponsored projects.
(Where the purchase of equipment or other
capital items is specifically authorized under a
sponsored project, the amounts thus authorized
for such purchases are assignable to the
sponsored project regardless of the use that may
subsequently be made of the equipment or other
capital items involved.)

41
Allocability of Costs

Policy RA01
http//guru.psu.edu/policies/Ra01.html
NOTE Any costs allocable to a particular
sponsored project under the standards provided
herein may not be shifted to other sponsored
projects in order to meet deficiencies caused by
overruns or other fund considerations, to avoid
restrictions imposed by law or by terms of the
sponsored project, or for other reasons of
convenience. In addition, any costs allocable to
activities sponsored by industry, foreign
governments, or other sponsors may not be shifted
to federally-sponsored projects.

42
Reasonableness of Costs

Policy RA01
http//guru.psu.edu/policies/Ra01.html
Prudent Person Test - A cost may be considered
reasonable if the nature of the goods or services
acquired or applied, and the amount involved
therefore, reflect the action that a prudent
person would have taken under the circumstances
prevailing at the time the decision to incur the
cost was made.

43
Reasonableness of Costs

Policy RA01
http//guru.psu.edu/policies/Ra01.html
-- Major considerations involved in the
determination of the reasonableness of a cost
are
(a) Necessary Test - whether or not the cost is
of a type generally recognized as necessary for
the operation of the institution or the
performance of the sponsored project
(b) Arms Length Test - the restraints or
requirements imposed by such factors as
arm's-length bargaining, Federal and State laws
and regulations, sponsored agreement terms and
conditions, or agency guidelines

44
Reasonableness of Costs

Policy RA01
http//guru.psu.edu/policies/Ra01.html
(c) Due Prudence Test - whether or not the
individuals concerned acted with due prudence in
the circumstances, considering their
responsibilities to the institution, its
employees, its students, the Government, and the
public at large and
(d) Consistency Test - the extent to which the
actions taken with respect to the incurrence of
the cost are consistent with established
institutional policies and practices applicable
to the work of the institution generally,
including sponsored projects.

45
Review Strategy / Documents

Policy RA01
http//guru.psu.edu/policies/Ra01.html
Approved Project Budget Test -
The allowability of a cost is first
determined by examining the budget that the
agency approved for the project. Does the
proposed expense show up under a line item of the
budget? If the item does not appear in the
budget, then other reviews must be conducted to
determine if the item is allowable under
rebudgeting authority that may be granted in the
situation, or if the item may be allowable if
prior approval is obtained in writing from the
agency. If the budget has not been incorporated
into the award document, then allowability must
be determined in accordance with allowable cost
principles of the agreement (OMB Circular A-21,
plus agency deviations).

46
Review Strategy / Documents

Policy RA01
http//guru.psu.edu/policies/Ra01.html
In determining allowability, allocability, and
reasonableness, the following documents must be
reviewed
Approved Project Budget
The Award Document or Contract
Agency Guidelines

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What is the Universitys Definition of Equipment?
Ask GURUhttps//guru.psu.edu/askguru/equip.html

"Equipment means an article of non-consumable,
tangible property having a useful life of more
than two years. The term "non-consumable" means
that the item does not substantially deplete or
change its nature over time. For example, a
copier would be equipment, but a toner cartridge
for the copier would be a consumable item.
Consumable items are generally referred to as
"supplies." All equipment valued over 5,000 is
tagged by Property Inventory.

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Capital Equipment
49
Capital Equipment

Guideline RAG06 APPLYING FRINGE BENEFIT AND F A
RATES TO SPONSORED PROJECTS AND OTHER
MISCELLANEOUS FUNDS
http//guru.psu.edu/policies/rag06.html
FA will be applied to Modified Total Direct
Costs (MTDC) which are all costs excluding
capital equipment (defined as having an expected
life of two years or more and acquisition cost of
5,000 or more)

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Account Management

Fringe and Overhead Verification(In IBIS Fringe
and Overhead calculate daily but post weekly)
After first month of activity
After rate changes
At the end of the award

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Account Management

Fringe and Overhead Verification

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Account Management

Fringe and Overhead Verification

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Account Management

Basic Reporting
Mainframe Reporting Functions
Client Server Reporting Tools
Web Based Reporting Tools

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Basic Reporting
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Basic Reporting

Mainframe Reporting Functions
Client Server Reporting Tools
Web Based Reporting Tools

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Basic Reporting

Mainframe reporting functions are available
within IBIS. The mainframe reports provide
up-to-the-minute reporting for accounts and cost
centers. Applicable Fringe and Overhead expense
is reported when recorded weekly basis.
ICAG (Inquire ObjCat By Category)
ISTR (Inquire Structure Budget Report)

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Basic Reporting

ICAG (Inquire ObjCat by Category)
Summarizes the real-time activity of each object
category (income, salary, wage, departmental
allotment, fringe, tuition, equipment, capital
and indirect costs) on a single account or cost
center.
Restricted and Miscellaneous Fund account
activity is summarized contract-to-date.
General Fund account activity is summarized
fiscal year-to-date.
Used to view summary balances.
Includes drill-down functionality to access
details.
Documentation available at http//ais.its.psu.edu/
ibis/media/icag.pdf

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ICAG
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ICAG
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ICAG
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ICAG
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ICAG
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ICAG
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ICAG
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ICAG
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Basic Reporting

ISTR (Inquire Structure Budget Report)
Summarizes the real-time activity by central
object code on a single account.
Does not have functionality to view cost center
activity like ICAG.
Includes drill-down functionality to access
details.
Includes a print function to produce a budget
report by central object code.
Documentation available at http//ais.its.psu.edu/
ibis/media/fa_istr.pdf

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ISTR
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ISTR
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ISTR
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ISTR
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ISTR
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ISTR
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ISTR
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ISTR
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Basic Reporting
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Basic Reporting
Basic Reporting
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Basic Reporting

Client Server Reporting Tools allow for
customized reporting.
FIT (Financial Information Tool)
Data Warehouse (IBISFin Tables)

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Basic Reporting

FIT (Financial Information Tool)
Provides real-time reporting for a single account
or cost center.
Includes functionality to calculate Fringe and
Overhead expense on encumbrances.
Enables users to build customized reports that
are meaningful and useful.
Documentation available at http//ais.its.psu.edu/
fit/

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FIT
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FIT
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FIT
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FIT
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FIT
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FIT
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FIT
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FIT
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Basic Reporting

Data Warehouse (IBISFin Tables)
Consists of database tables for account header
information and financial transaction history.
Used to forecast, track spending patterns and
customize reports.
Documentation available at http//ais.its.psu.edu/
data_warehouse/
Data refreshes nightly. The schedule is available
at www.warehouse.ais.psu.edu/updfreq/update.htm

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IBISFin Tables via MS Access
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IBISFin Tables via MS Access
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Basic Reporting

Web Based Reporting Tools available through your
internet browser.
AIMS (Account Information Management System)

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Basic Reporting

AIMS (Account Information Management System)
Designed to allow faculty members access to the
financial status of their sponsored project
accounts.
Provides summary fiscal information regarding
principal investigators' grants and contracts.
Not intended as a comprehensive account-reporting
tool rather, it provides a snapshot of the
account.

AIMS (Continued)
Faculty members are able to access all sponsored
project accounts without having to obtain
specific access authorization. Access is
automatically granted via the IBIS account
creation process.
Documentation available at https//aims.oas.psu.ed
u/