Financial Grant Management

Presented by:

Lindsey Butorac

Accountant

Controller’s Office

The grant was funded – now what?Immediately send the grant agreement and other

documents to the Controller’s OfficeThe Controller’s Office will:

Review the grant agreement: For compliance with terms, conditions, and applicable laws With Risk Management for insurance and liability issues With Human Resources for employment related issues

Obtain the signature of a Contracting Officer if neededMail the signed grant agreement to the granting agencySend signed copies of the grant agreement to the

Principal Investigator and the Grants & Research Office

Authorized Officials & OfficersAuthorized Official for grant proposals:

Associate Provost for Academic Affairs and Dean of Graduate Studies – Cynthia Prosen

Primary Contracting Officer for grant agreements and contracts:V.P. of Finance and Administration – R. Gavin

LeachOnly individuals authorized by the Board of

Trustees may legally bind the University

Post Award ProcessThe Grants & Research Office will send you a

memo acknowledging your award with a copy of the Request for Grant Organization Number form Form is also available on Grants & Research Website

Once the form is complete, return the original to the Controller’s Office and a copy to the Grants & Research Office

A meeting will be scheduled for the Principal Investigator to meet with representatives from the Grants & Research Office and the Controller’s Office to discuss any requirements and questions

Request for Grant Org # FormComplete and submit this

form along with a copy of the award letter and most recent budget

Make sure line 4 of the form is filled in:Signature of financial

manager (usually the department head) is required

Normally the department’s main organization number is listed starting with a 2 or 3

A grant organization number (starts with 5) cannot be used

Must be signed by the Principal Investigator

Principal Investigator will be e-mailed an organization number to use for the grant expensesExpenses must be within dates specified in grant

agreementExpenses must be in line with the approved budget

The Principal Investigator is the Financial Manager of the organization number assigned to the grant and approves all expenses

Supervisor approval still required for certain transactions:Personal reimbursements to Principal InvestigatorTravel of the Principal InvestigatorBusiness Entertaining of University Guests paid by

Principal Investigator

Post Award Process Cont’d

How Do I Spend the Money?University Credit CardPurchase OrderCheck RequestJournal EntryPersonal Services ContractUniversity Department ChargePayroll

Important Things to RememberDo not purchase an item and say “bill NMU”Do not personally pay for software, cameras,

or equipment – prior approval is neededIf the item has a warranty do not purchase

personally and request reimbursement from NMUWarranty is held by original owner and will be

voided when reimbursed by NMUUniversity credit card or Purchase Order should

be used for warranty to be issued to NMU

Important Things to RememberPurchase order is required for purchases that need

to be bidFood Service Policy must be followed for food

consumed on campushttp://webb.nmu.edu/hr/SiteSections/Resources/

AdminPolicyManual/FoodService.shtml Hazardous materials must be purchased in

accordance with the Hazardous Materials Management Policy:http://webb.nmu.edu/Departments/PublicSafety/

SiteSections/PoliceServices/Policies/HazardousMaterialsMgmt.shtml

University Credit Card & ConcurThe University credit card

issued to you can be used for expenses that need to be charged to the grant

Graduate Assistants can be issued University credit cards under special circumstances

List the grant organization number to be charged when settling expenses in Concur

University Credit Card & ConcurThe settlement process is essentially the

same as other University credit card purchases with the addition of a grant review

Principal investigator must approve all grant charges as the financial manager (travel requires supervisor approval)

Credit card expenses are NOT charged to the grant until they are completely settled in Concur

Purchase OrderFrequently used to order supplies or services over

$1,000Send completed Purchase Requisition and any

supporting backup to Controller’s Office first for pre-audit (only for grants)

Controller’s Office will forward to purchasingWhen goods arrive from the vendor:

Indicate that goods have been received on a copy of the Purchase Order, sign & mark “ok to pay”

Forward to Vendor Payables for paymenthttp://www.nmu.edu/purchasing/req.html

Purchase Requisition

Send to Controller’s Office for pre-audit

Financial manager’s signature requiredList organization

# to be charged here

Itemize items to be purchased and other special instructions here

Purchase OrderMake copy of

Purchase OrderSign and indicate

“ok to pay” when goods received

Forward to Vendor Payables for payment

Check RequestFrequently used for:

Refunds or purchases that require pre-payment such as dues, memberships, and subscriptions

Personal reimbursements (other than travel) Must attach original receipts showing proof of

payment Supervisor signature required

http://www.nmu.edu/finance/FORMS/Check%20Request%20Form%20New.pdf

Check Request

List organization # to be charged here

Signature of financial manager required (also need supervisor’s signature for personal reimbursement to PI)

Personal reimbursements require original receipts showing payment (please look carefully as packing slips and order confirmations do not always show proof of payment)

Attach original and one copy of invoice or other support for dues, subscriptions, or memberships

List account code here

Common Account Codes7120 – Office Supplies7123 – Education

Supplies7128 – Lab Supplies7135 – Other Supplies7140 – Room Rental7141 – Equipment Rental7142 – Misc. Rental7155 – Other Fees7160 – Admin Expense7161 – Subscriptions7162 – Memberships

7163 – Advertising7165 – Stdt Programming7180 – Repairs & Maint.7190 – Printing7191 – Postage7192 - Prof. Services7300 – Faculty Travel7305 – Staff Travel7310 – Student Travel7330 – Univ Guest

Expense7340 – Group Expenses

Journal EntryA journal entry is normally used to move a

charge to the proper organization numberCommon example: the department paid for

supplies that should have been charged to the grant

Please contact your department or the Controller’s Office for assistance completing this form

http://www.nmu.edu/finance/FORMS/Dept%20Journal%20Entry%20(banner).pdf

Personal Services ContractsUsed to purchase services from individuals,

such as:Contractors/ConsultantsPresenters/PerformersExternal evaluators

Two forms need to be completed:Transmittal Form (internal document)Limited or Standard Services Contract

Personal Services ContractsForms are available in the WarehouseStandard Services Contract is also available

in electronic format from Risk Management (2745)

Send completed forms directly to Risk Management for processing

NMU employees cannot be paid through a personal services contract - must be paid via additional assignment through payroll

University Department ChargesUniversity departments can directly charge a grant

for services – just let them know the organization number

Authorized departments include, but are not limited to:Printing ServicesMail ServicesBookstoreConference & CateringAudio VisualTransportation

Payroll Related IssuesPlease see your department secretary to pay:

Student EmployeesTemporary EmployeesGraduate AssistantsAdditional Assignments

Additional Assignments require an EPS contract to be prepared by the department and approved by the Dean

Adjunct ReplacementsAmounts needed to cover the cost of adjunct

replacements for release time are often budgeted when preparing a grant proposal

Adjunct replacements cannot be charged directly to the grant

Salary and fringe benefits of the person performing the work will be charged to the grant up to a maximum allowed by the grant

Funding of adjunct replacements will be handled by the Department and/or Dean’s Office

Fringe Benefit RatesFringe benefit rates vary based on type of

positionCommon Fringe Benefits Rates (As of 7/1/08)

AAUP Faculty – 45.6%NMUFA Faculty – 56.9%Additional Assignment/Overload – 24.2%Adjunct Faculty – 17.6%Temporary Labor – 13.7%

http://webb.nmu.edu/GrantsAndResearch/Documents/Fringe_Benefit_Memorandum-FY09.dot

Students & Fringe BenefitsA student must be enrolled in the minimum

credit hours to be considered a student employee and not subject to fringe benefitsUndergraduate 6 creditsGraduate 4 credits

A student who is not enrolled in the minimum credit hours is considered Temporary LaborTemporary Labor Appointment form needs to be

completed and submitted to Human ResourcesHuman Resources approval is needed prior to

hiring

Students & Fringe BenefitsA student must be enrolled for Fall to be

considered Temporary Student Labor during the summer. The student will be subject to 13.7% for fringe benefits.

A student enrolled in the minimum credit hours during Summer is considered Student Labor and not subject to fringe benefits

All students are considered Temporary Student Labor and subject to 13.7% for fringe benefits during August

Travel & Business EntertainmentEmployee travel expenses are reimbursed at

current IRS ratesMileage rate ~ Effective January 1, 2009,

personal vehicle mileage will be reimbursed at 55 cents per mile

Meals with an overnight stay are reimbursed at actual cost up to a maximum of $32 in a 24-hour period

Meals without an overnight stay are reimbursed at actual cost

Lodging ~ receipts required and reimbursed at actual cost

Parking or taxi ~ receipts required for amounts over $75 per occurence

Travel & Business EntertainmentBusiness entertaining of University guests are

reimbursed at actual cost with receiptsGranting agency may have specific restrictions

regarding entertainment expensesUniversity Travel Policy and Procedures can

be found at:http://webb.nmu.edu/hr/SiteSections/

Resources/AdminPolicyManual/Travel.shtml

http://webb.nmu.edu/hr/SiteSections/Resources/AdminProcedureManual/Travel.shtml

Cost Share/MatchAny cost share/match proposed in the grant

application must be documentedDocumentation needed will be determined on

a case-by-case basis and will be discussed with Principal Investigator

Common types of documentation:Time & Effort ReportsRevenue and Expense Transaction Report with

expenses highlighted to support department expenditures

Cash transfer to grant

Sample Time & Effort Report

Complete actual effort column (must total 100%)

Signed by both employee & supervisor

How Do I View My Budget?Controller’s Office will provide access for you to

view University Finance Reports through MyNMUFirst time users will receive an e-mail with setup

instructions – please call the Controller’s Office (2054) if you have difficulties

Current Balance Reports - choose the “Financial Statement for Grants & Projects” to see the summary status for the entire grant period

Transaction Reports – “Revenue and Expense Transactions for Projects & Grants” to see all transaction details for the entire grant period

Summary Report

Click on: Administrative Reports Finance Reports Current Balance Reports Financial Statement for Grants & Projects

Balance of Grant

Available to Spend

Detail Transaction Report

Click on: Administrative Reports Finance Reports Transaction Reports Revenue and Expense Transactions for Projects & Grants

Budget SuggestionsThe University Finance Reports only contain

information that has been processed by accounting

Suggested method to determine what has and has not been processed:Keep a file with copies of invoices and receipts

related to the grantRegularly verify with the detail transaction

report what transactions have been processed and move processed invoices/receipts to a paid file

How do I change the budget?Budget modifications generally require prior

approval of the granting agencyBudget requirements are usually stated in the

grant agreement and vary by agencySome agencies allow a 10-20% deviation per

category in the budget while others are not so lenient

Please contact the Controller’s Office to discuss your budget situation before contacting the granting agency to modify the budget

Financial ReportingThe Controller’s Office will generally prepare

and submit all financial reports and cash requests

Any financial data prepared by the Principal Investigator, including data in the program report, must be submitted to the Controller’s Office for approval PRIOR to submission to an external organization

Any questions???

Important Phone NumbersGrants & Research

Andrew Smentkowski – 2456Sandra Gayk – 2440http://webb.nmu.edu/GrantsAndResearch

Controller’s Office – 2054Lindsey Butorac – 1076

Purchasing - 2360Human Resources – 2330Risk Management - 2745

Have Further Questions or Need Help

Contact Me!

Lindsey ButoracAccountant

Controller’s Office1406 Hedgcock

Phone: 227-1076Fax: 227-2167

E-mail: lbutorac@nmu.edu