Purpose:
To provide guidance for monitoring and collecting sponsored awards cash and account receivable in accordance with the Office of Management and Budget Uniform Guidance (UG) as well as requirements from our federal/non-federal sponsors.
Scope:
This policy is applicable to faculty and staff who are involved in administering sponsored awards.
Effective Date:
August 24, 2016
Responsibility:
The interpretation and administration of this policy shall be the responsibility of the Grants and Contracts Accounting Office in consultation with the Associate Vice President and Controller.
Policy:
This policy applies to all sponsored awards at Teachers College (TC). The Grants and Contracts Accounting Office (GCA), Principal Investigators (PI’s) and Departmental Administrators (DA’s) share responsibility for payments made to sponsored awards. PI’s and their staff are required to assist GCA (if requested) to ensure timely receipt of award funding. GCA is responsible for ensuring all payments received for sponsored programs are accounted for in a manner consistent with sponsor requirements and Generally Accepted Accounting Principles. This includes payments received electronically (e.g. letter-of-credit-draws) and “wire” or check.
Procedure
The responsibility for cash and accounts receivable management for sponsored programs is shared by GCA, PI’s and DA’s. GCA performs many of the duties associated with accounts receivable management as a service to the departments. GCA’s tasks include:
An account receivable is established for a sponsored award at the time expenses are recorded. This receivable is cleared after payment is received and posted to the sponsored index.
For federal sponsored awards, payment is received on a cost reimbursement basis, not at the time funds are authorized. GCA is responsible for preparing and performing Letter-of-Credit (LOC) draws, which are processed through the respective agencies online payment system. The federal agencies authorize a line of credit for the college to draw funds that meet the aggregate expenditure activity of the sponsor’s awards to the College. GCA submits a LOC payment requests every quarter (expect for the DOE agency which is monthly) for reimbursement of expenses based on the general ledger of the previous month. Payments are made to the College via Automated Clearing House (ACH) the following day.
For non-federal sponsors and federal sponsors with whom Teachers College does not a have letter-of-credit relationship, invoices are submitted periodically, typically monthly (but not later than quarterly) for an award/contract depending on the billing terms and conditions established by the sponsor. The GCA senior grants accountant processes the invoice and monitors payments to ensure they are timely and accurately.
Other payment methods for a sponsored award may exist and are based upon the terms and conditions noted in the award (such as milestones, deliverables, or scheduled periodic payments). These types of payments do not usually require invoicing from GCA to the sponsor but there are some exceptions. GCA will monitor the sponsored award and funding on an on-going basis to ensure that payments are received from the sponsor in a timely fashion, and are in accordance with the terms and conditions of the award/contract.
Electronic Payments
GCA will identify electronic payments recorded in the College’s bank statement and the Controller’s Office or Development Office will apply the payment to the appropriate sponsored index in the College’s financial system.
Payments Received by Mail
GCA occasional receives checks from sponsors. Payments from federal, state, local government, universities and colleges will be deposited by GCA via the Bursar Office. All payments from foundations and corporations received by GCA regardless if they are sponsored awards will be forwarded to the Development Office for deposit via the Bursar Office.
Documentation of Bank Deposits
GCA maintains documentation of bank deposits that are processed by GCA. A copy of the wire and/or check is kept on TC’s document management server (Nolig Web) with the appropriate sponsored award index. In addition, a backup copy of the daily deposit is also kept in a separate binder.
Expenditures for a Sponsored Awards uncollectible
If the expenditures for a sponsored award are not collectible, the amount must be funded by the department responsible for the project. The amount will be transferred to a departmental discretionary or operating index. If terms and conditions, milestones and deliverables have been met in good faith but sponsor refuses to pay. GCA will collaborate with the legal team at Teachers College to determine what the next steps are.
If the expenditures for a sponsored award are over-expended, the amount must be funded by the department responsible for the project. The amount will be transferred to a departmental discretionary or operating index.
Refunds
When closeout procedures are being performed, it may be determined by GCA that there are funds remaining that will not be spent (under-expenditure).
When there are significant funds remaining at the end of the award, it may be possible to request a no-cost extension from the sponsor to allow for the continuance of the project. The Office of Sponsored Programs (OSP) will work with the PI and/or DA to determine if there is a need to request a no-cost extension. If there is, then OSP will contact the sponsor and make the request.
When a no-cost extension is not an option and there are funds remaining, GCA will review the terms and conditions of the award/contract and determine the sponsor’s policy on the disposition of the remaining funds. If the terms specify that the remaining funds must be returned to the sponsor then GCA will process a refund. GCA will inform the PI and/or DA when GCA initiates the refund to return the remaining funds to the sponsor.
If a sponsored award is a fixed price agreement/contract, then the remaining funds are not refundable to the sponsor.
Roles & Responsibilities
It is the role of each Principal Investigator and/or Departmental Administrator to:
It is the role of the Grants and Contracts Accounting Office to:
Definitions
Responsible Office: Controller
Last Updated: September 2016