GRANT MANAGEMENT
Some Basic Things To Know
Revenue Recognition- As funds are expensed on a grant (5 ledger) fund, Revenue is recognized in equal amounts up to the Award Amount in object code 4600 Grant Revenue because we are entitled to be reimbursed for those expenditures from the sponsor. If the grant fund is overspent, revenue will not be recognized and an overdraft will result.
PBIL - the Maximum Billable Award - it is a Special Budget Object Code entered by Research Services-Post Award and equals the Award Amount from the sponsor. PBIL serves as a control and does not allow Revenue Recognition above the Award Amount. When a Grant Fund is reported to the sponsor and there is a fund balance remaining, PBIL gets reduced to ensure Revenue Recognition is limited to the Reported Amount.
PBUD - the Authorized Project Budget- it is a Special Object Code entered by Research Services. PBUD is most often equal to PBIL except for Advance Accounts where PBIL is set equal to zero, but a budget has been authorized. Another example is if the grant fund is accounting for cost sharing and certain expenditures are not to be reimbursed from the sponsor, but funded by the institution. The department should enter an Operating Budget based on the PBUD value.
FSRD and FSRI- These are also Special Budget Object Codes Entered by Research services that indicate the Direct and Indirect Costs reported to the Sponsor.
Operating Budget - gets entered by the grant administrator at the department level utilizing Ben Financials and should reflect the PBUD value.
Object Code 1220 Receivable – As revenue increases (credit), the receivable increases (debit). As payments are received from the sponsor, the receivable decreases (credit). Federal Funds that are reimbursed via the Letter of Credit mechanism have a zero receivable. Departments should be concerned any time the receivable exceeds the most recent 3 month's cumulative expense. They should also contact Research Services anytime there is a non zero value for a grant reimbursed via Letter of Credit.
Adjustment Period - is the period after the termination date of the grant where adjustments can be made prior to the grant freezing. The period ends 30 days prior to the Financial Report Due Date. The administrator can find out funds freezing in the next 90 days by running the ORG Summary.rep within Business Objects.
GRANT MANAGEMENT
Some Basic Things To Know
Modified Total Direct Cost Base- is the base used to calculate Indirect Costs on Federal Awards.
Object Code
Total Direct Costs
Less: Tuition Remission 4180-4190
5287-5288
5350-5359
Subcontracts>$25,000 5333
Equipment 1820-1834
Patient Care 5334
Alterations 4821
Allowability of Costs - OMB Circular A-21 governs. On Federal Awards, revenue is not recognized on object code 5214 Entertainment because it is an unallowable cost. Some costs are allowable, but should not be directly charged to grant funds because they are recovered through the Facilities and Administrative (F&A) previously known as Indirect) Cost Rate. A-21 states that “The salaries of administrative and clerical staff should normally be treated as F&A costs. Direct charging of these costs may be appropriate where a major project or activity explicitly budgets for administrative or clerical services and individuals involved can be specifically identified with the project or activity. Items such as office supplies, postage, local telephone costs, and memberships shall normally be charged as F&A costs.” Directly charging costs normally treated as an F&A cost is unallowable because the cost would be reimbursed twice.