Sponsored Projects Accounting
Location: 337 Peterson Service Building 0005 Phone: (859) 257-3662 Fax:(859) 323-1947
Responsibilities include: Prepare and submit financial reports and⁄or invoices to sponsoring agencies, including cost sharing obligations. Review all cost transfers to and from WBS elements. Maintain database of Accounts Receivable and pursue collection of receipts. Review all department check transmittals depositing funds to WBS elements. Prepare letter of credit reimbursement requests and quarterly reconciliations. Prepare Facilities & Administrative cost calculation. Provide oversight of the Time & Effort Certification Systems. Review Service Center and Recharge Center rates and billings. Prepare Annual A-133 Schedule of Federal Expenditure and assist in audits of WBS elements.
- Who is my Financial Administrator?
- SAP Information: The "BudRule Cross Walk" (XLS)
- General Ledger Accounts
- FRS-SAP Account Cross-Reference Guide
- 2013 Fiscal Year Closing (PDF)
- SPA Year End Reminder FY13 (DOC)
- Facilities and Administrative Cost Agreement (PDF)
- University of Kentucky's Cost Accounting Standards Board Disclosure Statement (DS2) (PDF)
- DS2 Approval Letter from DHHS-DCA (PDF)
- UK A-133 Audit of Federal Expenditures (PDF)
- UKRF 2012 Financial Statement (PDF)
|Jennifer Miles||Accounting Director||257-3662|
|Paige Brown||Assistant Manager||257-1750|
|Misty Atchison||Financial Admin Supervisor||257-1028|
|Karen Boyd||A/R Accounting Supervisor||323-0687|
|Sandy Morgan||Accountant Principal–A/R||257-7933|
|Cherri Wallace||Accountant Principal–FES||257-1747|
|Linda Williams||Accountant Principal–FA/SFA||257-9391|
|Jeff Lyons||Accounting Coordinator||257-3662|
|Katrina Hall||EAG Contact/Grants||257-2195|
|April Stevens||Financial Admin III||257-9094|
|Lois Thomas||Financial Admin III||257-5421|
|Josh Wills||Financial Admin III||257-9291|
|Shelly Jacobs||Financial Admin III||257-5420|
|Scott Lutin||Financial Admin II||257-3193|
|Britt Ingram||Financial Admin I||257-1683|
|Scott Wells||Financial Admin I||257-4290|
The WBS element is the cost object used to post activity to your sponsored account in the FI module of SAP. The grant number is the related cost element in the GM module of SAP and houses the master data for each account. The elements are linked in SAP and are the same account number beginning with "304".
Using the t-code, GMGRANTD, enter the grant/WBS element number then click on the Responsibilities tab and scroll down to Financial Administrator (FA).
First, you need to review your available budget by sponsored class via GMAVCOVRW. Using variant "UKDEFAULT", you will see the balance in each sponsored class budgeted on the grant. To determine how GLs roll under each sponsored class, please see the Bud Rule cross walk on the Links tab of this page. If it is necessary to budget funds into a different sponsored class, please contact your Research Administrator in the Office of Sponsored Projects Administration to request assistance. The account must also be in award status. See additional information below in FAQ related to account status.
Use transaction S_ALN_01000003 with variant EXP ONLY and the grant number to find the expenses posted to the grant. Amounts in the column titled "Invoice" have actually posted to the grant. Amounts in the column titled "Open Items" are encumbrances that have not actually posted to the grant but are reserving budget. The column titled "Available Amt" is the balance of the budget minus the amounts in the invoice column and open items columns.
An invoice to the sponsor can only include amounts posted in SAP. As part of a monthly reconciliation of accounts, any missing items should be investigated and resolved so that timely posting in SAP can occur and they can be included for invoicing.
Use transaction S_ALN_01000003 with variant EXP ONLY and the grant number to find the expenses posted to the grant. Amounts in the column titled “Invoice” have actually posted to the grant. Amounts in the column titled “Open Items” are encumbrances that have not actually posted to the grant but are reserving budget. The column titled “Available Amt” is the balance of the budget minus the amounts in the invoice column and open items columns.
The grants status is used to demonstrate the lifecycle of a grant in SAP, from start to finish. Here is a summary of what these status' mean to you:
- Proposal/Draft: this is a very new account that has not been completely set up in SAP. You should receive a PADR for this soon from OSPA.
- Award/Expected Award: this is a new account that does not have a signed contract on file. The department has chosen to open this award without sponsor approval and will be responsible for any charges not ultimately authorized by the sponsor.
- Award/Award: this is an active and open account to which expenses can be posted. A review of expenses posted should be completed by the principal investigator and/or business staff monthly to ensure accuracy.
- Award/30 Days to End Date: this is an active and open account to which expenses can be posted however, the award is scheduled to end within the next 30 days. A full review of the expenses posted to date should be completed at this time to ensure any needed adjustments can be completed timely.
- Award/Ended: this account has officially ended but is still open for you to post all final expenses incurred within the budget dates and/or needed adjustments.
- Closing/Accounting Review: this account has ended and is no longer available for you to post expenses or adjustments. This account is undergoing a final financial review by the Financial Administrator in SPA and a final financial report is being prepared for submission to the sponsor.
- Closing/Financially Closed: The final financial review has been completed by the Financial Administrator in SPA and a final financial report has been submitted to the sponsor. Accounts receivable items may still be outstanding on this account or the final financial report is pending approval by the sponsor.
- Closed/Closed: The final financial review has been completed by the Financial Administrator in SPA and a final financial report has been submitted to and approved by the sponsor. There are no outstanding accounts receivable items on this account.
Reference the Cost Share Information Form (CSIF) attached to your PADR or the cost share tab on GMGRANTD. If you are still unsure or need more information, please contact your Research Administrator in the Office of Sponsored Projects Administration (OSPA) for further explanation of the commitment.
A combination of the grant/WBS element number and cost share fund must be used to post an expense in SAP. Any charges that are to be cost shared, whether through payroll, PRD, journal voucher, etc. must be posted to the grant/WBS element and cost share fund. The external fund (sponsor) will always be the default, so the user will need to override (manually update) the fund to the appropriate cost share fund in order to charge the expense as cost share. After the cost share fund has been entered, hit the enter button to save the change.
Using t-code, GMGRANTD, enter the grant/WBS element number and then click on the Dimensions tab. Look for the fund beginning with 001189…. Looking across the row, there will be a checkmark in the cost sharing column and "cost share" will be part of the description.
The cost fund assigned to the grant is directly related to the campus area that is responsible for funding the cost share. Below is a list of the cost share funds being used in SAP:
0011890000 – Fiscal Affairs/IT Cost Share
0011890100 – Research Cost Share
0011890200 – Medical Center Cost Share
0011890300 – Provost Cost Share
0011890500 – Administration Cost Share
0011890600/01 – WUKY Cost Share
Use transaction S_ALN_01000003 with variant EXP ONLY CS and the grant number to find the expenses posted to the grant’s cost share fund.
Several general ledger (g/l) accounts can be used for funding cost sharing, depending on the type of expenses that have been incurred. Each is classified as a “transfer” g/l as the journal voucher is transferring budget from the cost center to the grant’s cost share fund. See below:
|Salary Only:||740510 transfer from cost share||750510 transfer to cost share|
|Benefits Only:||740515 transfer from cost share||750515 transfer to cost share|
|Operating Exp.:||740520 transfer from cost share||750520 transfer to cost share|
The debit entry will be to the cost center from which you are moving the funds and will use the 750XXX g/l account. The credit entry will be to the grant & cost share fund and will use the 740XXX g/l account. Be certain to manually update the fund associated with the grant to the appropriate cost share fund (001189XXXX….) as it will default to the external (sponsor) fund.
Service Center & Recharge Operations
- Service Centers and Recharge Operations Policy (PDF)
- Service Centers and Recharge Operations Contacts (XLS)
- Service Center Recharge Operation Rate Request Summary Template – last updated 10/3/2011
- Service Center Recharge Operation Rate Development Worksheet Template – last updated 10/3/2011
- Service Center Example Recharge Operation Summary Rate Request Form – last updated 10/3/2011
- Service Center Instructions – last updated 1/30/2012
Recharge Operations are departmental units that have direct costs less than $50,000 in a fiscal year. Service Centers are operational units that have direct costs greater than $50,000 in a fiscal year. Since a recharge operation is a departmental unit their fund balance at the end of the year rolls up with the other department accounts. A service center is unique because its fund balance can be carried forward, if it is less than 10 percent of expenditures for the year - surplus or deficit. A service center can also include indirect costs (depreciation) in their rate, but is not allowed on recharge operation accounts.
No, there is not a fee charged to service centers or recharge operations.
A minor service center has direct costs greater than $50,000, but less than $500,000 and can include equipment depreciation expenses in their rate. A major service center has direct costs greater than $500,000 and can include equipment and building depreciation and maintenance and operations costs in their rate.
The budget family attribute on the Funds Center distinguishes the type of account. A recharge operation has a budget family of 23. The budget family for a minor service center is 22 and a major service center is 21. Also, all service center account numbers begin with the 10438XXXXX series.
No, federal guidelines do not allow the purchase cost of capital assets to be charged to the service center account, but capital assets can be purchased on a renewal and replacement account (14278XXXXX).
Only capital assets (55XXXX - g/l accounts) can be purchased with the money in your renewal and replacement account. Remember, to be considered capital the item must meet the University's policy on capital threshold limits. For more information please see the Business Procedures Manual or contact Plant Assets.
Recharge Operations cannot recover indirect costs for depreciation in their rates, but Service Centers are allowed to recover depreciation costs.
If the service center fund balance (surplus or deficit) is less than or equal to 10 percent of the expenditures, then the fund balance can be carried forward. A prior year carry over is used in the calculation of the fund balance, but it is not considered an expenditure when calculating the 10 percent rule. When a balance is carried forward to the next fiscal year, it must be used in the calculation of rates.
A subsidy will be needed from a general fund account to bring the service center account balance under the 10 percent of expenditures.
The first step is to establish whether a recharge or service center is the appropriate account to be established. Second, rates will need to be developed and a Service Center Rate Request Form, Request for Establishing/Revising Service Center Cost Center and Budget Revision Request will also need completed. Please see the service center policy section 4.7 for more detailed information.
Cost allocations - provide copies of invoices or receipts for the original expense and a spreadsheet or other document that shows the basis of allocation (units used, payroll effort, square footage, etc.) and the calculations for the allocations.
Payroll cost transfer - contact the Payroll office to confirm whether or not a JV is necessary. If Payroll confirms the need for a correction via JV, please provide copies of the applicable employee labor distribution sheets and SAP reports showing person and time frame being transferred or STEPS employee invoices. Also, please include any correspondence with Payroll where they confirmed the need for correction via JV.
Travel cost transfers - provide a copy of the Travel Voucher or DAV showing the original travel charges and its supporting receipts or invoices.
Other cost transfers - provide a copy of the DAV, JV, Purchase Order, or Procard screens and its supporting receipts or invoices.
The signatures on the JV are dependent upon the age of the transactions on the documentation that supports the cost transfer. The following signatures are required:
- Original charges between 0 to 90 days - the signature of the billing department or approving official for the department charged is necessary.
- Original charges between 91 and 120 days - the Principal Investigator of the project and Chair/Director of the department in which the grant resides must sign the JV.
- Original charges over 120 days old - the Principal Investigator of the project and the Chair/Director and Dean of the department in which the grant resides must sign the JV.
Corrections of typical errors - explanations should include the answers to the following questions:
- a. What was the error?
- b. When did the error occur?
- c. How did the error occur?
- d. What steps have been put in place to prevent this error from occurring again?
- e. If charging a grant, how does the expense benefit the project?
Note: Please complete the questions above with the JV Explanation Form (PDF) and submit with your JV along with appropriate signatures and backup documentation.)
Corrections being made on original charges that are over 90 days old - provide an explanation of the extenuating circumstances which prevented the errors or charges from posting to the correct account within the first 90 days after the original transaction posting. Be sure to include the answers to the questions found in this section under a typical correction of an error.
Charges from Service Centers, recharges, or allocations of costs - describe the reason for the allocation or charge, the time period covered for the charges, and a brief explanation of how the charges were determined.
Payroll Distributions - describe the reason for the distributions, the payroll periods covered, the names of the employees requiring payroll modifications, and the percentage of effort breakdown for any amounts that are different from the labor distribution sheets. If the calculations are rather complicated, please provide a spreadsheets showing the percentages and distributions for the salary and benefits.
The waste disposal charge is generated automatically on accounts and is based on specific expenditure object codes. Any adjustments to one of these expenditure codes will consequently adjust the waste disposal charge as well. The correction to the waste disposal charge will be seen at the end of the month in which the correction to the expenditure code was posted.
You may contact Sponsored Projects Accounting at 257-3662. Please have the reference document number from SAP available.
The Accounts Receivable team in Sponsored Projects Accounting has the following responsibilities related to sponsored projects:
- Cash Posting
- Processing cash receipts from the lockbox, departmental cash/check transmittals, checks received in SPA, lockbox checks, and electronic fund transfers
- Researching cash receipts for subsequent posting to the correct WBS element
- Maintaining the appropriate documentation for checks initially received in SPA, lockbox checks, and electronic fund transfer cash postings
- Correcting errors on cash postings
- Collecting payments on past due invoices, except for clinical trials
- Generating monthly sponsor statements
- Aging of the receivables for statistical and collection purposes
- Calculating the yearly debt reserve
- Writing off unreimbursed expenses on projects
- Reconciling specific sponsored project funds
- Customer Service
- Processing cash transfers for corrections and carry-forward of funds
- Processing Bank Information Forms for enrollment in electronic fund transfers
- Assisting sponsors and university personnel with issues related to cash receipts and collections
For questions concerning cash receipts issues, please send an email to SPA.AR@email.uky.edu.
General Cash Receipts Questions
The "Financial Management RATE VIII" class is a good source of information concerning the cash posting process in Sponsored Projects Accounting. Individuals can register for the class through the Office of Sponsored Projects Administration course catalog on the myUK Employee Self-Service Training tab.
The Office of the Treasurer website contains links to the various office staff directories, financial forms, Business Procedures Manual, and other useful information pertaining to UK financial questions and procedures.
The website is: http://www.uky.edu/EVPFA/Controller/
Forward the sponsor's bank information form or contact information to SPA.AR@email.uky.edu. Sponsored Projects Accounting and Treasury Services personnel will complete the bank form authorizing the electronic payments and will forward the documentation to the sponsor. This action will ensure that the payments are deposited correctly.
All checks should be made payable to: University of Kentucky Research Foundation.
Forms may be printed from http://www.uky.edu/eForms/
Contact the SPA Accounts Receivable staff at SPA.AR@email.uky.edu and include the sponsor's name, amount of the payment, and any other available information that might assist SPA in the payment inquiry.
First, contact the sponsor to see if the payment has been sent.
If the payment has been remitted and cashed, contact the SPA Accounts Receivable staff at SPA.AR@email.uky.edu to see if the payment has been posted to the holding account or an incorrect project. Include the sponsor's name, date and amount of the payment, and any other available information that might assist SPA in the payment inquiry.
If the payment has not been remitted, work with the sponsor to collect the cash.
The project WBS element number may have been entered incorrectly or the transmittal information may not have been received by SPA. Contact SPA Accounts Receivable staff at SPA.AR@email.uky.edu and include the grant number, transmittal number, the amount of the deposit, and any other available information that could help SPA research the payment.
Departmental cash receipts – the department should keep copies of the checks, transmittals, and all documentation submitted with the check for posting
SPA cash receipts – Sponsored Projects Accounting keeps copies of the transmittals for checks that are received in SPA, ACH reports, lockbox files, and all supporting documentation related to these cash posting types
SAP System Questions
Go to transaction S_PLN_16000269 Grants Management: Line Item Display. Choose the variant named CASH RECEIPTS. Enter the WBS element number and click on the execute icon.
When the next screen is displayed, choose the layout RECEIPTS. The amount displayed as the total will be the total revenue (cash receipts and cash transfers) posted to this grant.
Double click on a document number (beginning with 96, 12, or 14) on the display screen to drill into the transaction to see the detailed entry on the FB03 transaction. This action can be especially useful to see if funds have been transferred to or from a different WBS element.
Go to the transaction FB03. Enter the document number and press enter. Click on the TOP HAT icon next to the funnel to display the document header. Look for the UserID in the "Entered by" field.
Go to transaction ZSU01D and enter the UserID in the "User" field and click on the Glasses Icon to display the phone #, email address, and other information of the person responsible for processing the document.
Check Transmittal Questions
When checks are received prior to the sponsored project being assigned a WBS element in SAP, the department should complete the Check Transmittal and deposit slip and deliver the funds to Treasury Services. Leave the GL column blank. In the ASSIGNMENT column of the transmittal, type SPA HOLDING. In the TEXT column, type NEW GRANT. A note should be attached or written across the front of the transmittal that says: Attn: Sponsored Projects Accounting. By completing these steps, the money will be posted into the SPA Holding Account until the WBS element has been set up.
Checks for IRB fees are not posted to the sponsored project. Please contact the UK Office of Research Integrity located at 315 Kinkead Hall (phone: 257-2549) for instructions.
Transmittals originating in the department – copies should be sent to OSPA from the department
Lockbox, EFT, or transmittals originating in SPA – copies should be sent to OSPA from SPA
Reduction of Expenditure – use the same expense general ledger account on which the original charge was posted.
Clinical Trial Income – Non-federal projects use 426006; Federal projects use 415014 Program Income - Additive use 440118; Deductive use 440119
If unsure of the type of income to be posted to the sponsored project, contact your sector Business Officer for assistance.
If the departmental transmittal had an error in the project number, go to the Cash Receipts tab on the Sponsored Projects Accounting website. Follow the directions on the "Cash Transfer Request Form Instructions" to complete and submit the "Cash Transfer Request Form" to SPA.AR@email.uky.edu. Once the Cash Transfer Request Form and supporting documentation are received, SPA will post the cash transfer to the appropriate cost objects.
For any other errors, please contact SPA Accounts Receivable staff at SPA.AR@email.uky.edu and include an attachment of the original transmittal for documentation. SPA will post any necessary corrections.
Checks for sponsored project WBS elements should not be entered on a transmittal which also contains checks for other cost objects. However, if a department has checks for multiple sponsored projects, a single check transmittal can be completed for all of the WBS elements.
If you have a check that is split between a sponsored project and a departmental cost center or fund, please contact SPA Accounts Receivable staff at SPA.AR@email.uky.edu for further instructions.
Specific Reduction of Expenditure Questions
A reduction of expenditure on a sponsored project occurs when a payment is received from a third party (not the sponsor) reimbursing an expense that had previously posted to the project. Examples include but are not limited to:
- A traveler is reimbursed for their registration expense for a conference by the conference host or a 3rd party
- A refund is received from a vendor for the amount of a duplicate or overpayment on the sponsored project for goods or services paid on a PRD document
- A refund is received from a sponsored project's subcontractor
- A refund is received from a vendor for items purchased on the sponsored project that were returned to the vendor
Expenses that do not directly benefit the project (whether personal or university related) should never be charged to a sponsored project because the WBS element is to be utilized only for expenses that are appropriate for completing the scope of work of the project. The WBS element should never be used as a "holding account" to charge expenses that are later reimbursed. Instead, the employee should pay for the expenses directly or a departmental cost center should be used for any expense that is not related to the sponsored project.
If the original expense does not benefit the project in any way, the expense must be moved to a departmental cost center prior to the posting of the reduction of expense. After the expenditure has been transferred to the cost center, complete the transmittal with the cost center and applicable G/L account. The transmittal will then be posted by Treasury Services. Questions concerning the journal voucher and its supporting documentation should be addressed to the Cost Transfer Accountant found on the SPA website under the Staff Tab.
Complete the check transmittal using the G/L 426006 (nonfederal clinical) or 415014 (federal clinical) and the WBS element. This check must be included as income on the WBS element and is not a "reduction of expenditure".
Follow the normal check transmittal procedure to complete the check transmittal but be sure to use the expense G/L account and WBS element on which the original charge was posted.
Provide all of the following:
- A copy of the check being deposited to UK
- Copies of all original payment documentation related to the reduction of expenditure such as DAV's, PRD's, travel vouchers, or Purchase Order invoice transmittals
- A complete explanation of the reason the project is receiving this money
- Any other documentation that will help to explain the reason for the reduction of expenditure
Complete the check transmittal as a normal reduction of expenditure. Sponsored projects are not subject to the same fiscal year restrictions as other cost objects. Therefore, questions concerning reductions of expenditures related to prior fiscal year activities should be direct to the SPA Accounts Receivable staff at SPA.AR@email.uky.edu for further instructions.
Complete the check transmittal as a normal reduction of expenditure, but put a note on the transmittal that the project is closed. Sponsored Projects Accounting will research the reduction of expenditure and the project to determine the best way to handle the issue.
If the check was made payable to the University of Kentucky, the department should utilize a check transmittal to deposit the funds into the WBS element as a reduction of expenditure allocated across the same travel G/ Ls where the expenses were originally posted. Documentation should be provided that shows the original expense and the reason for the reduction of expenditure. If possible, please provide a letter or other documentation from the organizer of the event which shows the reason for the reduction of expenditure.
If the check from the conference organizer was made payable to the individual who presented the research, the employee (or student) should write a check to the University of Kentucky Research Foundation for the amount of the reimbursement. The department will then complete the check transmittal to deposit the check into the WBS element allocating across the same travel G/ Ls where the expenses were originally posted. Documentation showing the original expense and the reason for the reduction of expenditure (preferably a letter or other documentation from the organizer of the event) should be included as backup for the transmittal.