Monitoring and Reconciling Sponsored Project Accounts

             Effective Date: April 1, 2008

Executive Summary

In carrying out its various missions, the University derives funds from numerous sources and expends those funds in order to meet institutional objectives. While some of these funds, like tuition, are commingled and may be used for common purposes, funds provided by Federal and other sponsors of grants and contracts generally require that those resources be accounted for on a project-by-project basis, and therefore cannot be commingled. Good financial management in general requires that those responsible for expending University funds exercise appropriate oversight over the sources and uses of its resources. Accordingly, the University expects that all accounts are monitored and reconciled on a regular basis. In particular, given the stricter accountability associated with funds provided by outside sponsors, this policy sets forth a more stringent set of requirements for monitoring and reconciling sponsored project accounts which are also consistent with Federal standards for financial management systems. This policy formally consolidates those requirements, many of which are encompassed in various other University Policies.

It should be noted that while this Policy is now being formally published in the Administrative Policy Library, the underlying provisions of the policy are not new, and have been effect for many years.

Reason(s) for the Policy

To insure that sponsored project accounts are monitored and reconciled on a monthly basis so that only those expenditures which are appropriately charged to those projects are billed and collected from the sponsors, that required financial reports are filed with those sponsors on a timely basis, that following expiration of those projects the accounts are promptly closed, and that overdrafts, where incurred, are funded from alternate resources on a timely basis.

Primary Guidance to Which This Policy Responds

OMB Circular A-110: Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations

Responsible University Office & Officer

Office of the Controller
Cheryl Ross, Controller

Revision History

Not Applicable

Who is Governed by This Policy

Principal Investigators

Departmental Administrators and other departmental staff

Employees who initiate, review and/or approve payroll transactions on behalf of the University

Who Should Know This Policy

• All persons governed by this Policy {see above}

• Deans, Directors and Departmental Chairs

• Office of Research Administration staff

• Office of the Controller staff

Exclusions & Special Situations

None.

Policy Text

This policy sets forth specific requirements for monitoring and reconciling sponsored project accounts. These requirements are consistent with both generally accepted practices for financial oversight as well as Federal expectations for financial management systems .

Principal Investigators and those that assist them in assigning expenditures to sponsored projects are required to exercise regular oversight over the financial records of each project. This oversight is necessary in order to insure that to the maximum extent possible, the following objectives are met:

(a)    expenditures associated with a specific project are initially assigned to the proper project,

(b)   the monthly expenditure reports produced by the Controller's Office are reviewed on a monthly basis,

(c)    any necessary corrections are made on a timely basis,

(d)   project resources are carefully monitored to insure that overdrafts are minimized,

(e)    any overdrafts for which additional sponsor funding is not anticipated are covered in the near term from alternate resources,

(f)     when interim or final financial reports are required (typically at the end of each competitive segment and upon completion of a project, but sometimes more frequently), a reconciliation is provided to the Restricted Funds Division of the Controller's Office so that sponsor-required financial reports can be prepared and provided to sponsors within the timeframe set forth by those sponsors

(g)    upon project expiration, that the project account be promptly brought into balance so that it can be closed from the University's accounting system, with any final overdraft removed and funded by other non-sponsored resources.      

Most of these requirements are already contained in various University Policies, including the following:
Charging Administration & Clerical Salaries, Federal Grants & Contracts (92-3)

Charging Office Supplies & other Administrative Expenses (other than Salaries) to Federal Awards (92-4)

Cost Sharing

Effort Reporting

Financial Reporting and Closeout of Sponsored Projects

Principal Investigator Responsibilities for Financial Oversight of Grants & Contracts (92-5)

Project Administration

Project Administration Account Closeouts

Project Administration - Audits

Project Administration Billing & Collection

Project Administration - Financial Reporting

Project Administration - Unallowable Costs

Sponsored Project Cost Transfers

Subcodes for Segregation of Unallowable Expenses (92-1)

Overdrafts on Sponsored Projects (pending APC committee approval)

This Policy formally consolidates the requirements of each of these Policies.