Sponsored Projects Handbook: Award Activities

Account Creation

Upon receipt and acceptance of an award, the Office of Research Administration (ORA) notifies Research Accounting, which is responsible for assigning a fund number. ORA also forwards a copy of the award document and terms and conditions to the principal investigator (PI) and any co-PI's. Award funds are grouped by agency and type and are assigned fund numbers between 200XXX and 229XXX.

The fund representing the award is established in accordance with the approved budget and sponsor terms and conditions. The approved budget is then created using account codes defined by WPI.

Research Accounting sends a Notice of Award to the PI informing her/him of the fund code, organization code, and account codes used for the approved budget. It is the PI's responsibility to review this information for accuracy and to contact Research Accounting with any discrepancies or questions. The PI is also responsible for reading the terms and conditions of each award, ensuring that funds are expended in accordance with the award terms and conditions, and providing sponsor-required programmatic reports on a timely basis.

Interpreting Banner Financial Information

How to Read a Research Fund Financial Report (FRRGITD)

The Grant Inception to Date report (FRRGITD) is used to review the financial position of a Research fund for a period of time. The period of time is from the beginning of the Research Award (or 7/1/98 for awards beginning before that date) to the date specified when the report is run. It displays budget amendments, expenditures, and available balance for each line item. The columns of dollar amount on the report can be explained, as follows:

The Adjusted Budget reflects the net total of the beginning budget balance plus or minus any budget changes that may have been done with the sponsor.

The Current Period Activity shows by line item the current month activity of the fund.

The Inception to Date Activity shows by line item the total charges and credits to the fund from the award begin date or 7/1/98 (for awards starting before that date) to the date specified when the report is run.

Commitments are expenses that are yet unspent for the current year. Salaries and wages scheduled to be paid to faculty and staff for the remainder of the fiscal year will appear in the column as well as the cost of benefits associated with these salaries and wages. Currently, WPI does not record purchase order or indirect costs commitments in Banner.

The Available Balance column is the difference by line item between budgeted amounts and expenses to date. The amount is calculated by taking the Adjusted Budget less Inception to Date Activity and known Commitments. If the line is a negative, this means the line has been overspent.

How does Banner group and total account lines?

In Banner, account lines are grouped by Revenue (codes beginning with the number 5), Labor (beginning with a 6), and Direct Expenditures (beginning with a 7). The account codes used in the fund appear in the second column from the left of the report in ascending order. At the bottom of the report are the totals for each group. (HINT: To get a total for the y fund, read the revenue total line. See What is the Revenue line? for more information.)

What is the Revenue line?

The Revenue line is the first account item on the report. This line does not represent the amount WPI has received or requested from the sponsor. That information is found on the Trial Balance (FGRTBAL) report for the fund. This line is a cumulative total of each line within the budget. The overall status of the fund can be seen by looking at the available balance of the Revenue Total line. If this amount is negative, then the award is overspent.

What if my bottom line is negative?

If the available balance in the Revenue Total line is negative, the award has been overspent. Steps will need to be taken to remove expenses from the fund.

Other viewing options

There are also on-line screens within Banner that display the same information. They are the Grant Inception to Date (FRIGITD) and Trial Balance (FGITBAL) screens. Each screen has key fields that must be completed for the query to run correctly. For the Grant Inception to Date screen, the required fields are Grant (code), Fund (code), and Orgn (code). For the Trial Balance screen, the required fields are Fiscal Year (FY) and Fund (code). For more information on these screens, please refer to the Banner User's Guide. The information may also be obtained through a query via Banner Web for Employees. On-line help is available. A key to remember when viewing information for Research funds via the web is DO NOT check the Include Revenue box (refer to B above for explanation).

Budgets

Financial budgets are created on the Banner system by Research Accounting in accordance with amounts awarded under sponsored projects. On awards requiring cost sharing by the University, budgets also include the amounts of funding to be provided by WPI. Principal investigators should adhere to approved budgets to the extent possible unless it has been determined under a particular award that expenditures may be made to other categories. Significant rebudgeting may constitute a change in the scope of work of a project and require prior approval of the sponsor. Please check with Research Accounting if a material change in the types of expenditures to be incurred is anticipated.

Expenditure Processing

Recipient departments are responsible for incurring all appropriate direct cost expenditures to be charged against sponsored projects. By signing and transmitting expenditure documents to Research Accounting, the recipient department certifies that the expenditures are necessary for accomplishing award objectives and appropriate to the award being charged.

Payment of Expenditures

Research Accounting reviews and approves all expenditures charged to sponsored projects. It is the responsibility of Research Accounting to monitor expenditures to determine that they are allowable within sponsor guidelines, University policy, and, for Federal awards, government regulations (OMB Circular A-21, Cost Principles for Educational Institutions, Section J.). In addition, Research Accounting is responsible for verifying that sufficient funds are available and expenditures are incurred within the award period. However, it is the responsibility of the PI and recipient department to ensure that expenditures are allowable and appropriate. Questions concerning allowable costs should be directed to Research Accounting.

Salaries, Wages, and Fringe Benefits

Incurrence of expenditures for salaries and wages should be accomplished in accordance with current Human Resources policies and procedures. Payments should be processed on the appropriate form(s), which are available either online at the Human Resources website or in hard copy in accordance with Section 12 of the Business Services Manual.

Fringe benefits are charged as a percentage of non-student salaries based upon the currently negotiated fringe benefit rate. Current fringe benefit rate information is contained in the Proposal Preparation Reference Sheet (formerly Budget Notes), which is also available in hard copy from ORA.

Consultants

A consultant (also known as an independent contractor) is an individual or organization capable of providing a service not available at WPI. Consultants are normally engaged for short periods of time to provide services that are not material in relation to the overall project scope of work.

An Independent Contractor Policy is currently being developed. Until such time as this additional guidance is available, the following documentation is required in order to pay consultants for services rendered:

An invoice from the consultant indicating the consultant's full name, address, social security number or Federal Entity Identification Number (EIN), a description of the work performed, the number of days and/or hours worked, the hourly or daily rate of services, and the total amount due.
A memo signed by the PI outlining the work performed by the consultant, how the services rendered benefit the project, and why these services were unavailable at WPI.

Travel

There are a variety of important considerations that must be taken into account when traveling on sponsored projects, especially Federal funds, including:

U.S. flag air carriers must be used for travel on Federal awards without consideration of cost, convenience, or personal preference. A Q&A that addresses exceptions to this regulation is available at the website for the Office of Governmentwide Policy by clicking on Travel Management and searching for "Fly America Act". Coach or economy class must be used in all cases.
Depending on the sponsor and/or type of award (grant vs. contract), prior approval for foreign travel or changes to approved foreign travel may be required. The terms and conditions of the award to be charged should be consulted before undertaking foreign travel.
Expenditures for alcoholic beverages are always unallowable as charges to Federal awards unless specifically approved in the award budget.
Please refer to the WPI Business Services Manual for other issues and important procedures related to travel. When questions arise regarding travel on sponsored projects, please contact the Research Accounting office.

Subcontracting

It is the responsibility of principal investigators to oversee subcontractor activities when subawards are made to other organizations under awards to the University. Invoices from subcontractors are forwarded for approval to principal investigators, who are in the best position to have knowledge of subcontractor progress relative to the reasonableness of invoice amounts. Upon approving, principal investigators should redirect subcontractor invoices to Research Accounting for final approval and payment processing.

Indirect Costs

Indirect costs (now called Facilities and Administrative Costs by the Federal government) are charged automatically on the Banner financial system based upon the appropriate base for direct costs and the awarded indirect cost rate. Questions regarding indirect costs charges on sponsored projects should be addressed to Research Accounting.

Procurement

When purchasing items (goods or services) with a total cost of at least $10,000, a WPI Purchase Order (PO) should be completed and forwarded to Research Administration resadm@wpi.edu. Attached to each PO should be three (3) written bids or a sole source justification stating why a vendor has been selected in lieu of obtaining bids. This information is required under audit and ensures that procurements are made in a fair and competitive manner.

Departments should contact the Property Administration office prior to the purchase of any equipment

Property Administration

WPI 's Property Management Manual currently defines equipment as tangible, non-expendable personal property having a useful life of at least one (1) year and an acquisition cost of at least $500. Overall property management is achieved through the combined efforts of the principal investigator, the Property Administration office, and Research Accounting. Once received and accepted, equipment is tagged and inventoried in the property database. In accordance with OMB Circular A-110, Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, periodic physical inventories of equipment must be accomplished at least every two years. Please refer to the WPI Property Management Manual for further information.

Prior Approvals

Often, events during the life cycle of an award can take place which require the need to request approval of a sponsor. These events can include not being able to complete the project on a timely basis, change in principal investigator, need for a significant rebudgeting of funds, and requests for supplemental funding. When such events occur, investigators should contact Research Administration resadm@wpi.edu to determine an appropriate course of action. ORA staff are the primary contacts with sponsors for purposes of modifying awards. Depending upon the sponsor, ORA will either make the necessary contact at the sponsor or recommend that appropriate correspondence be sent to initiate the required action, including electronic requests via NSF's Fastlane.

Cost Transfers

Cost transfers are occasionally needed to correct errors that may have occurred when the original charge was recorded. Cost transfers must be fully documented and approved by the principal investigator (PI). A department transfer form must be completed for non-payroll expenses within 90 days of the original transaction stating the reason for the transfer. This form contain the PI's signature, the original account number, the account number to be charged, the amount, the purchase order or invoice number, and the date of original charge. Any payroll transfers must be accomplished using a Redistribution form or memo and processed through the payroll system.

All cost transfers that occur more than 90 days after the original charge must also include a written justification for the delay of the transfer. There is always a potential for audit disallowance on cost transfers that are poorly documented and/or not completed in a timely manner. This should be considered when a transfer is proposed.

Time and Effort Reports

The Federal Government requires recipients of sponsored projects maintain time and effort performance reports that reflect effort levels by employees on sponsored programs. WPI has set up a semi-annual time and effort reporting system. It is the responsibility of the PI to review the percentage of effort on each report and indicate any discrepancies. The PI is required to sign the report in the space provided and return to Research Accounting. Research Accounting maintains copies of time and effort reports for use in audits of sponsored projects.

Sponsor Reporting Requirements

All financial reports, including final financial closeout reports, are the responsibility of Research Accounting. All technical reports, including final technical reports, are the responsibility of the PI. A copy of the first page of all technical reports submitted to the sponsor should be sent to ORA and to Research Accounting. This copy should be marked with the date the report was mailed. Reports that are late in submission could lead to a potential problem with future funding and should be avoided whenever possible.

Financial: Preparation of all financial reports, including final financial reports submitted at time of award closeout, is the responsibility of Research Accounting. Amounts included on these reports are derived from the Banner financial system based upon departmentally incurred expenses. Departments, therefore, are responsible for ensuring that amounts reported accurately reflect the expenses necessary to achieve project goals.
Programmatic: Principal investigators are responsible for the timely completion of all programmatic (technical, narrative, progress) reports required by the terms and conditions of sponsored project awards. It should be noted that many sponsors, especially Federal sponsors, will possibly take action, up to and including curtailment of future awards and withholding payment to the University, for non-compliance with the reporting requirements of awards.
Invention: As periodically required by the terms and conditions of awards, Research Administration will contact principal investigators to determine if any inventions were created or patents filed under specific awards. Research Administration will then complete the appropriate reporting form and submit it to the sponsor.
Property: All property reports are completed by the Property Administration office in accordance with the terms and conditions of individual awards.
Other: Occasionally, additional reporting requirements will be included in sponsored project awards. In these instances, each situation will be handled on a case by case basis.

Award Closeout

Two weeks after an award expires, Research Accounting will forward a Rough Draft report with a cover letter and a copy of the Grant Inception to Date Report to the principal investigator (PI). The PI will review the documents and indicate any adjustments necessary for pending invoices, the expected transfer of overexpenditures, etc. The PI will return the report by the date indicated on the attached cover memo(usually 6 weeks after the end date of the award).

Many sponsors require that other administrative reports be submitted to officially close out an award. Research Accounting, in conjunction with Research Administration, is responsible for submission of these reports (see 8. Sponsor Reporting Requirements above). These reports are generally due within 90 (ninety) days following the end date of the award. After 60 days, the fund is terminated in Banner. Once Research Accounting receives the financial Rough Draft report from the PI, the agency's final report will be completed by Research Accounting and submitted by the due date.

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Last modified: September 14, 2007 11:30:36