module 4 project management

1The Office of Research Services The Office of Research Support Services

REVISED AUGUST 28, 2007

Module 4Project Management

Sponsored Programs at Penn



Project ManagementAgenda

• Communication

• Establishing the Project Environment

• ARRA (Stimulus) Funding Principles

• Managing Monthly

• Monitor Expenditures

• Cash Management



Communication• Report monthly to PI

– Establish payroll distribution• Establish level of effort anticipated for each individual on

project

– Restrictions on spending– Cost Sharing– Monitor Subcontracts = Confirm amounts & work done

SPP #2131, #2135 Sub-recipient Monitoring policies

• Communicate regularly with ORS– Extensions / Continuations and other project changes– Financial reports, delinquent sponsor payment– Inform Sponsor via ORS of any Programmatic changes– Assesses allowability of costs



Support the Project

• Work with PI on on-going basis• Ensure that interim reports &

proposals are submitted on time• Disclose Inventions and Patents• Prepare for Progress Reports and

Non-Competing Continuations



Establishing the Project EnvironmentPayroll Set-up

• Identify who belongs on distribution

• Identify amount of funding and % effort

• Distribution Stop Date s/b set to the Account End Date

• Salary Encumbrances are calculated through the Current Budget End Date or Distribution Stop Date (whichever is earlier)



ARRA Funding Principles• ORS is required to report ARRA years SEPARATE from that of the

non-ARRA funded years• Quarterly Reports are due within 10 days of the close of each quarter• Separate SF269 reports will be due 90 days after account end date

• Carryover is NOT ALLOWED between ARRA and Non-ARRA funded years

• One-Time Funding – Unless otherwise specified, ARRA funding to existent or new awardees should be considered one-time funding

– One time no cost extension may be requested

• Close monitoring of spending rates and re-budgeting is required • No cost transfers or comingling of ARRA and non-ARRA funds



Procurement

• Ben Buys Commodity Matrix– Methods of Purchasing– When should C-1, C-1A, C368,

Purchase Order, or P-Card be used

• Competitive BidsRequired on aggregate purchases > $5,000 unless purchase is with a University Contract Supplier or with a supplier participating in the Penn Marketplace.



Issues Surrounding Specific Expense Categories



Equipment

• Definition – tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit

• Must be necessary for project purposes – During the award period

• Is not reasonably available for use elsewhere in the University• Award notice does not constrain equipment purchases• Must obtain necessary bids, unless sole source justification• Document whether Equipment is

– Government owned– Government furnished

• Disposition after the project has ended– Know sponsor regulations



Foreign Travel

• Travel must be included in proposal or otherwise be allowed by sponsor

• Justify and document changes (approval, if applicable) if not in proposal

• Department must maintain documentation in the file that supports the trip’s purpose

• Foreign air travel paid with federal funds must be on US-flag air carriers– Limited exceptions



Foreign Travel (cont)• Exceptions, which must be documented, generally

include:– US-flag air carrier does not go to destination– Total trip time extended more than 24 hours– Lay-over extended more than 6 hours– Foreign carrier eliminates 2 or more changes– On short trips: US-flag air carrier would double travel time

• Exceptions can be found at GSA Travel Regulations (41CFR301-10.135-143)– www.access.gpo.gov/nara/cfr/cfr-retrieve.html#page1



Consultants• Evaluate: Consultant, Employee or Subcontractor?

– Use C-12 Independent Contractor Determination & Certification

http://www.finance.upenn.edu/comptroller/tax/contractor_certif.shtml

• Consulting agreement needs to be completed and forwarded to ORS for approval & signature

• Document role of consultant– Needs to be working towards goals of project to which he/she is

charged

• Review sponsor guidelines for consultants– Ensure approvals are obtained, if applicable– Consultant rates may be limited for some sponsors



Purchases• PI approval process for purchases

• Assess allowability, allocability and reasonableness

• Verify budget and availability of funds

• Procure bids

• “Buy American” on federal awards when possible • Don’t buy capital equipment at end of project



Service Centers• Definition:

– A department or functional unit within a department, which performs specific service for a fee

– Examples: Cell Sorting facilities, Resonance Imaging facilities, and Animal Care facilities

• ORS responsible for review & approval of rates– Services provided charged based actual use of services– Charges for services allocated monthly

-Financial Policy #2115 University Service Centers

• Make sure Service Centers use correct fund account• PI & BA should review Service Center charges regularly

– The BA may not know what services were provided, or if the amount charged is appropriate



Manage Monthly

• Plan expenditures in advance– This will make the project easier to manage throughout life

of project• Run and analyze appropriate reports

– Financial Policy #1402.5 Monthly Closings/Reporting• Send detailed reports to PI• Remove unallowable and wayward charges• Compare expenditures to projections• Manage changes through full system

– Changes in award value affect payroll– Changes in subcontracts or equipment affect F&A charges



Manage Project Changes Proactively

• Use proposal as “home base”

• Anticipate necessary changes– Contact ORS for approval– Get sponsor approval through ORS– Change of scope or effort

• Plan ahead for extensions



Monitor Expenditure Rates

• Sponsors question unusual expenditure rates

• Have we changed scope of work?• Are we still breathing?

• Communicate with Sponsor (cc ORS)



Cost Transfers

• The transfer of costs to sponsored projects where the costs initially had been incorrectly charged to another account. Any cost transfers that occur need to be properly justified and documented.

• University Financial Policy Number 2113 Cost Transfers and Payroll Reallocations states "Cost transfers must be prepared and submitted within 90 days from month end in which the transaction appears on the fund." Failure to adhere to this policy may result in the University disallowing the transfer which would result in a write-off to the administering department.



Cost Transfers

• Must be an allocable, allowable and justified charge to the particular award

• Department must maintain documented justification for transfer

• Must be made within time constraints



Cost Transfer Principles• Cost transfers are for correcting legitimate

ERRORS

• Cost transfers should NOT be used as a means of managing cash flow

• Project funds are NOT interchangeable– Integrity of each grant account must be maintained

• Allowability of costs must be maintained



Cost Transfers• Documentation

– Supported by full explanation and justification, as well as a certification of the propriety of the transfer

– Explanations such as “to correct error” or “to transfer to correct project” are not sufficient

– Approval can be documented by• PI signature• Printed e-mail messages from PI



Cost Transfer “Red Flags”• Transfers made in excess of 90 days after the original

charge

• Transfers without a full explanation

• High volume of transfers

• Timing and “route” of transfers

• Late transfers to funds with unexpended funds

• Transfers from funds with overdrafts to other 5 fund(s)

• Transfers between funds with scientific overlap



Advance Accounts for Continuation Awards

• Recommended for non-competing renewals requiring new fund #’s for each period

– Department requesting the advance account bears the risk of having to fund any costs incurred if the funding never materializes

– Med School sets up advances for 12mth period– All other Schools set up Advances for 3 month period



Monitoring Accounts Receivable

• For Letter of Credit awards, check revenue & cash received. There should be no cash on hand.

• On Letter of Credit, confirm that PBIL is correct

• Contact ORS to address payment problems with sponsors– Departments should review AR and contact ORS regarding

aged receivables of concern• For awards on payment schedule, contact Bob Speakman• For all other awards, contact Gokila Venkateswaran• For Med School awards, ORSS representative is Deb Naso



Checks, Payments and Project Budget Increases

• Hand carry check to ORS immediately, with project identification – Do not deposit check

• Should AIS be increased because of check?



Run and Review Reports• BEN Reports

– 102.ORG – Summary CNAC-ORG-FUND level– 115.ORG – Fund Summary– 133.ORG – Due to Close– 134.ORG – Summary of Final Expenditure Report

• Data Warehouse– Fund Summary– Org Summary– Corporate Documents

• Payroll• Correct Errors



Reporting Tools“There are so many reports I’m not sure where to look first.”



GRAM / BEN Reports

•Reports used primarily by Principal Investigators

•Reports represent a Current Budget Period perspective

•Not easy to determine PJTD Numbers or amount to close out at (other than Budget Available)

•Critical for Operating Budget to be posted to the Budget Period Start

GRAM – The online PI view



•Actual Spent represents Current Budget Period Only

•Further Detail can be clicked on, but none is available for Prior Budget Periods



Management of All Grants in ORG

BUSINESS OBJECTSORG Summary.rep by Fund, PI, Acct End, receivables, overdrafts, funds freezing, late/due FSR’s, Analysis of expired funds, Illegal object code charges, possible F&A direct charged to Fed grants, payroll compared to budget.Grantmonitor.rep PBIL/PBUD/Budget, NCC Due, Awards Due, Revenue Check, Overdrafts (active and expired), Federal Cash, CT Cash, Residual Balances, ReceivablesSubbudgets.rep our charges to othersOtherorgschgs.repORGpersonnel.rep all current distributionsPaylate.rep funds with pay after terminationAward Analysis- Award Date.repPT-Proposals.repJE inquiry (by batch between dates).repFY Grant ORG Expense Analysis.repEffort Report – Home Dept ORG.repObject code by fund – posted org.repObject code by fund – detailAIS (full search).rep

BEN FINANCIALS

132.ORG List of Terminated G&C Funds133.ORG List of G&C Funds Due to Close138.ORG Frozen Fund List201.SCH PJTD Rev/Exp for G&C/URF202.SCH YTD Rev/Exp Totals for Funds211.SCH PJTD Rev/Exp Outline for G&C/URF212.SCH YTD Rev/Exp Outline for G&C/URF301.BUD Budgetable Amount - Grants/Contracts306.BUD Negative BBA ORG/FUND/CREF PJTD



Fund Level Management

BUSINESS OBJECTSfundsummary.rep summary by ORG/CNAC SNAP/NCC estimated unobligated balance

Fundsummaries for RESP ORG.rep

Fund Detail.rep monthly matrix all expense monthly matrix personnel paid

Effort Report – Fund.rep

GRANT REPORTS.rep PI friendly & monthly payroll and expense detail

GRANT REPORTS –PI.rep

GRANT REORTS – Resp Org.rep

BEN FINANCIALS

102.ORG Summary G&C by CNAC/ORG/FUND103.ORG Summary G&C by CNAC/ORG/FUND/CREF115.ORG Grant Fund Summary Report130.ORG PI Report by CNAC/ORG/FUND134.ORG Summary of Final Expenditure Report (available for grants in adjustment period)137.ORG Grant/Contract Budget Period Summary



Expense DetailBUSINESS OBJECTS

Fund Detail.rep Payroll by Obj, by Person,Exp Detail by Object, Org, Acct Period, P.O./UserFund Detail – PI.rep monthly matrix of personnel paid on PI grantsPayroll.rep (any fund any period of time) variations include: All grants of PI All grants of Resp OrgPersonnel.rep (any person, any period)Personnel-one (any person’s current distrib)Detail.rep variations include: All grants of PI All grants of Resp ORG subcontracts object special budget operating budget cash depositsEncumbrances(Fund).repWaywards.rep

BEN FINANCIALS

150.ORG Detail by CNAC/ORG/FUND151.ORG Detail by CNAC/ORG/FUND/CREF152.ORG Detail by CNAC/ORG/CREF153.ORG Detail by CNAC/ORG/FUND/PROG155.ORG Detail Extract156.ORG Detail by CNAC/ORG/FUND/PROG/CREF160.ORG Account Analysis with payables detail163.ORG Open Encumbrances Report301.BUD Budgetable Amount - Grants/Contracts304.BUD Negative BBA ORG/FUND YTD305.BUD Negative BBA ORG/FUND/CREF YTD306.BUD Negative BBA ORG/FUND/CREF PJTD315.BUD Posted Budget Journal with Exceptions507.GA Posted Journal Activity Report508.GA Unposted Journal Activity Report510.GA Detail Transaction by OBJECT by ORG



Your assignment• Full documentation of the Business Objects Queries

is available at:http://www.upenn.edu/computing/da/dw/financial_queries.html

Select “Grants Management”

• While we will discuss and give samples of some of the more popular reports today, it is essential that you GO BACK TO YOUR OFFICE AND PLAY WITH THE REPORTS!!! Decide what tools/reports work best for you and your investigators.



ORG Summary.rep



ORG Summary - Analysis of Expired FundsWhy isn’t my fund disabled?



ORG Summary – possible F&A



Fundsummary.rep- Estimating the Unobligated Balance

Make sure the formula toolbar is

visible and checked under View Toolbar.



Grant Reports.rep



Identifying Waywards – 115.ORG

The 115 shows a possible wayward charge from ORG 4227 Cardiology. To obtain the detail of the charge a 15X.ORG report can be run entering the ORG making the charge in the Accounting Period the charge was made.



Otherorgschgs.rep & Waywards.rep



Effort Report - Fund



In Summary

• Award must be reviewed on a regular basis

• Communication is vital to the proper administration of the award

• When you are not sure, investigate and ask

• If an award is properly managed, the closeout process is very simple



Questions???