Howard University Grant Subcontracts and Consulting Agreement PeopleSoft Process

Transcription

1 Howard University Grant Subcontracts and Consulting Agreement PeopleSoft Process Page 1

2 Table of Contents T ABLE OF CONTE N TS... 2 G R AN T SUB CO N TR AC TS AN D CONS UL TING AG RE EMENTS PRO CESS... 3 Overview... 3 Creating Requisitions for NEW Grants Subcontracts and Consulting Agreements in PeopleSoft4 Modifications via Supplements and Cancellations... 7 Supplements (Encumbrance Increase)... 7 De-obligations / Cancellations (Encumbrance Decrease)... 8 Page 2

3 Grant Subcontracts and Consulting Agreements Process Overview Research Administrative Services () is responsible for establishing all Grant Subcontracts and Consulting Agreements. These transactions are now processed via the PeopleSoft Purchasing Module through the establishment and approval of Requisitions for which Purchase Orders are subsequently generated by Strategic Sourcing. The Purchase Order (PO) number generated by PeopleSoft is to be used for the following: o o Invoices relating to fully-executed grant sub-agreements MUST reference the PO number so that they may be readily identified, reviewed and monitored in accordance with the terms and conditions of the respective sub-agreements and the primary grant awards. The PO number is required by Accounts Payable for payment processing against an established Purchase Order. This process guide covers: o How to create Requisitions for NEW Grant Subcontracts and Consulting Agreements in PeopleSoft; and o How to modify EXISTING Grant Subcontracts and Consulting Agreements by either increasing or decreasing encumbrances. Page 3

4 Creating Requisitions for NEW Grants Subcontracts and Consulting Agreements in PeopleSoft Following is the process to be followed for creating Requisitions for NEW Grant Subcontracts and Consulting Agreements in PeopleSoft when a Grant Award is received. Step Process Responsible Dept. 1 Prime Grant Award is received. The budget, including funds for Subcontractor and Consulting fees 2 Principal Investigator / Project Director (PI / PD) generates purchasing Requisition in PeopleSoft for each Sub-Recipient according to amounts approved in the prime grant award. The Requisition should be entered as a Limit Sum Requisition. NOTE: If this is a first-year subcontract and the contract amount exceeds $25,000, funding will be allocated to both the C553 and C556 accounts. The first $25,000 will be allocated to C553 and entered as one item line in a requisition. o The account code, 5530, should be used for the first $25,000. Anything over $25,000 (the remainder of the contract amount) should be allocated to C556, as a second item line in the same requisition. o The account code, 5535, should be used for the remainder. NOTE: For consulting agreements, funds will be allocated to the C520 account and 5263 is the appropriate account code. 4 The Requisition is routed electronically via workflow to. PeopleSoft 5 reviews the requisition and the prime grant award to validate reasonableness of each transaction. also ensures fund availability and appropriateness of transaction activity periods. 6 The Requisition is routed electronically via workflow to. 7 Designated Buyer(s) generates a Purchase Order for requisitions on grant projects under the appropriate account code(s) for Subcontracts (5530 or 5535) and Consulting fees (5263). PeopleSoft The Purchase Order is placed on Hold. Page 4

5 Step Process Responsible Dept. Note: The Purchase Order must be put on Hold BEFORE it is dispatched. 8 Buyer notifies PI of "Reserve" Purchase Order Number via . 9 creates a NEW sub-agreement using the new sub-agreement reference number which equals the PeopleSoft Project Number + Purchase Order Number. If the sub-agreement is a MODIFICATION to an existing subagreement, the Billing Term reference should be changed to new sub-agreement reference or the new PeopleSoft Project Number + Purchase Order Number. 10 Sub-agreement documents are routed to the Office of General Counsel (OGC). 11 OGC approves the sub-agreement documents for partialexecution. OGC HU Grant sub-agreements may be ratified by: o Senior Vice President and Chief Financial Officer o Vice President for Research and Compliance Partially-executed Sub-agreement documents are returned to OSP. 12 Partially-executed sub-agreements are routed to Sub-Recipients point of contact requesting signature and return of one (1) fullyexecuted original. 13 Upon receipt of fully-executed sub-agreements, the originals are routed to Grants and Contracts Accounting and copies are distributed to: o Materials Management Division o o Principal Investigator/Project Director 14 Upon receipt of fully-executed sub-agreements, Buyer(s) will release the respective Purchase Order that was placed on Hold and process the Purchase Order so that it will be dispatched. 15 If PI receives the Sub-Recipient invoice, PI approves and sends the invoice to the () for handling/coordination of required approvals. 16 Sub-Recipient invoices that are directly sent to will be reviewed, approved and routed for additional required approvals. PI Page 5

6 Step Process Responsible Dept. Approved invoices are then forwarded to Accounts Payable for payment processing. 17 Upon receipt of approved invoices, Accounts Payable processes the invoice for payment. AP The billing period for each invoice is entered into PeopleSoft by typing the information into the line description on the Information Page. Page 6

7 Modifications via Supplements and Cancellations In the event a Principal Investigator elects to modify (increase or decrease) the amounts encumbered for particular subcontractor or consultant, the following processes should be executed: Supplements (Encumbrance Increase) Step Process Responsible Dept. 1 2 PI notifies of the intention to modify an existing subagreement by increasing the amount of the Sub-Recipient s funding. verifies the availability of funds and the appropriateness of the increase. If acceptable by the prime award, OSP advises PI to enter a new Purchasing Requisition for the amount of the supplement/increase. PI is also advised to provide the following: o Existing Purchase Order Number o Sub-agreement Modification Information Form(s) o Scope of Work o Compensation Rate/Detailed Budget o Budget Justification 3 PI / PD generates a new Purchasing Requisition using the existing Purchase Order Number in the amount of the supplement/increase. If in the same fiscal year, modify the existing PO. For Limit Sum, use the same requisition and make the change on the same line. If in a different fiscal year, create a new PO. 4 Requisition routed electronically via workflow to. PeopleSoft 5 reviews prime grant award to ensure fund availability and appropriateness of the supplement/increase. approves the requisition Requisition routed electronically via workflow to. Buyer processes the requisition under the existing Purchase Order Number. o will only close the PO when the $ are liquidated. Buyer notifies PI and once the supplement/increase has been processed via . PeopleSoft Page 7

8 Step Process Responsible Dept coordinates the full-execution of the sub-agreement modification to authorize the increase. Upon receipt of fully-executed sub-agreement modifications, the originals are routed to. Copies are distributed to o o o PI Sub-Recipient invoices will be sent to for review, approval and coordination of additional required approvals. Approved invoices will be forwarded to Accounts Payable for payment processing. De-obligations / Cancellations (Encumbrance Decrease) Step Process Responsible Dept. 1 PI notifies of the intention to modify an existing subagreement by either de-obligating either part of or the total amount of the sub-recipient s funding advises PI to complete a Request for Cancellation form for the partial or full encumbrance cancellation. The assigned Purchase Order Number must be listed on the form. PI is advised to provide the following: o Sub-agreement Modification Information Form(s) o Revised Detailed Budget (if applicable) PI / PD completes the Request for Cancellation in the amount of the de-obligation/decrease and submits to. PARTIAL CANCELLATIONS Buyer processes the partial cancellation (via the Change Order process) by adjusting/reducing the budget line in the existing Purchase Order Number. o If obligations exist, the Buyer can reduce the budget line to what is owed. Page 8

9 Step Process Responsible Dept. FULL CANCELLATIONS Buyer processes the cancellation (via the PO Cancel/Finalize process) by adjusting/reducing the budget line in the existing Purchase Order Number. This process will return all remaining funds in the Requisition and Purchase Order to the respective project budget. Note: If a full cancellation is required, written authorization must be received from OSP. Upon full cancellations or receipt of FINAL invoices, AP will Finalize the payment process which releases all remaining funds from the Purchase Order back to the respective project budget. If the de-obligation/cancellation will require a sub-agreement modification, coordinates the full-execution of the subagreement modification to authorize the decrease/de-obligation. AP Page 9