September 2015 Contracts & Grants Accounting

Transcription

1 Billing for Sponsored Projects Post Award Financial Management of Contracts and Grants September 2015 Contracts & Grants Accounting

2 Course Objectives This course will help you develop a basic understanding of the terms and methods of billing for sponsored projects Billing responsibilities and terms Overview of the CGA organization RAS billing methods and CGA billing processes The Department Administrator s role in the billing process Invoice Payment Recon Quiz 2

3 3 What is Research Administration?

4 4 UCSF Research Administration Overview

5 Controller s Office Overview 5

6 Controller Website Overview Contacts 6

7 CGA Overview 7

8 Acronyms BSR Budget Status Report RAS Research Administration System FSR Financial Status Report FFR Federal Financial Report NSF National Science Foundation HHS PMS Health and Human Services Payment Management System OLFS Online Financial System NCE No cost extension IDC Indirect Cost Calculation VLA Vacation Liability Assessment Controller s Office 8

9 CGA Training Resources Research Administration Town Hall Post Award Management of CGA Departmental Visit Special topics 9

10 Post Award Responsibility Matrix Overall Financial Management of Sponsored Award CGA Responsible for award set-up, billing cost reimbursable awards, recording fixed price award accounts receivable invoices from departments, coordinating collection and financial reporting, and closing out of contracts and grants. Oversee post-award compliance requirements. PI/Department Understand the terms and conditions of award to fulfill the requirements outlined by the awarding agency. Responsible for oversight of financial, scientific, and compliance aspects of the project. Responsible for all aspects of fiscal management of a sponsored research project. Ensure budgetary control and the expenditures incurred are within the authorized budget and period. Maintain sufficient records to support sponsored project transactions, ensuring they are available for audit and demonstrate compliance with contract terms, UC policy, accounting guidance and federal regulations. 10

11 CGA Services Award Setup Billing Collection and Cash Management Financial Status Reporting Award Closeout Compliance Monitoring Training and Communication about policies and procedures Bi-monthly Research Administration Town Hall 11

12 Access You May Need PeopleSoft RAS GL MyReports Effort Reporting System (ERS) CACTAS (Centralized Agreement Contact Tracking and Approval System) BearBuy MyExpense Learning Management System (LMS) Weblinks for Prior to 7/1/

13 CGA Partners RMS 13

14 GBC CGA Partners Continued 14

15 CGA Partners Continued Budget and Resource Management (BRM) 15

16 FY 2014 Billing Statistics FY 2013 Billing Invoices Cost Reimbursable Number of Invoices Amount LOC 62,268 $596 M Non-LOC 7,584 $169 M Total Cost Reimbursable 79,852 $765 M Fixed Price Billing 6,705 $417 M Total Billing 86,557 $1,182 M 16

17 Billing Responsibilities Contracts & Grants Accounting (CGA) is responsible for billing and payment processes for sponsored projects. Key billing functions: Prepare timely and accurate invoices in accordance with award documents, University and sponsor policy Submit invoices to sponsors Exception: Clinical trials invoicing initiated by departments (copy CGA) Ensure billing activities are mindful of the effect on University cash flow Department Administrators (RSAs) are responsible for monitoring this activity and working with CGA to ensure that each project receives all the funds that it is entitled. 17

18 Terms Overview Revenue Recognition of income when an expense is incurred Accounts Receivable (A/R) Billing that has not been paid (unpaid invoices) Unbilled Accounts Receivable (UAR) Recognized revenue that has not been billed to the sponsor Overdraft Represents the amount that spending exceeds the award budget Deficit Represents the amount the total expense exceeds total revenue 18

19 Establishing Billing for an Award The CGA Set-up Team establishes billing for each award at inception and creates changes as required Based on award agreement including modifications RAS billing mechanism: cost reimbursable or fixed price Frequency: monthly, quarterly, other, advance payment, payment schedule, milestones, etc. Contacts and submission instructions/address Please review your new awards and modifications to ensure that this information is correct. Notify CGA Set-up Team quickly if changes are necessary. 19

20 20 Verifying Billing Type

21 21 Verify F&A

22 Cost Reimbursable Billing Billed based on actual expenses incurred and posted to the General Ledger Includes Federal awards where request for reimbursement is by Letter of Credit (LOC) drawdown Billing guidelines CGA can only bill up to the authorized spending limit (appropriation) Budget is appropriated based on award document Exception: budget for clinical trials is appropriated based on invoices created and payments received Expenses must appear on the General Ledger; CGA cannot add pending expenses Exception: approved PETs or pending travel expenses already approved for a final invoice or a late award set-up CGA can defer certain charges, if needed 22

23 Cost Reimbursable Billing Letter of Credit (LOC) Twice-weekly drawdown (via web-based system) to request immediate reimbursement for expenses that UCSF has paid Limited to major Federal agencies No invoice is issued Non-LOC CGA creates and submits bills to the sponsor Usually monthly or quarterly (based on agreement terms) Reviews recorded expenses, billing limit, budget lines, special conditions Works with departments to obtain back-up documentation, eliminate overdrafts and unallowable costs 23

24 Fixed Price Billing Clinical Trial Billing Department creates and sends clinical trial bills to the sponsor Send a copy of the invoice and backup documentation to CGA as sponsor is billed. CGA Fixed Price Billing Team records A/R and budget appropriation Units of Service, Milestone Billing, Installment Awards CGA creates and send bills to the sponsor based on milestones in RAS Contacts department to obtain units of service to bill or confirmation of milestone completion Please respond to inquiries in a timely manner and let us know when there are no milestones or units to bill 24

25 City and County of San Francisco Billing Ensure total budget amount on the agreement matches RAS budget appropriation and invoice budget templates. CCSF provides the invoice templates in excel format to Departmental Research Administrators via . Billing types: Units of Service (UOS) and Cost Reimbursable. If billing is cost reimbursable, CGA prepares the invoice based on GL expenses but department must provide UOS (non-monetary) to finalize the invoice. CCSF invoices are due to CGA on the 20th of every month. Work with GBC early and frequently in the contracting phase to get encumbrances and contracts before the start of the new fiscal year. 25

26 Department Administrator s Role in Billing Process Holds primary responsibility to support the PI in administration of sponsored awards CGA is your partner for post-award administration Review new awards and modifications upon receipt Confirm that billing method and milestones are correct Notify CGA Award Set Up Team of errors as soon as they are discovered If sponsor requests change from cost reimbursable to fixed price type of payment, work with RMS/GBC to negotiate this change at time of renewal Change requires new Award/Project and transfer of costs 26

27 Department Administrator s Role in Billing Process Review agreements and modifications for special budgetary line item restrictions re-budgeting restrictions number of projects required Actively monitor awards and make corrections in a timely manner Provide billing units and other billing back-up documentation as scheduled or requested Copy CGA on clinical trial invoices when they are sent to the sponsor at EMFBilling@ucsf.edu. 27

28 Setting Up a Fund Advance For New Awards or Competitive Renewals, complete the Award Advance Request Form and submit to OSR for approval. Continuation periods on existing awards will automatically receive an advance award if specific criteria is met: Future Year in system No past due receivable older than 90 days CACTAS Record which includes sponsor intent Current IACUC/CHR in place if needed Provide a discretionary account to use in transferring all expenditures if an award should not materialize. Obtain Dean s office signature for awards with large dollar amounts (greater than $500K/total cost per year) 28

29 Invoice Payment Reconciliation The following slides will outline the process by which departments can reconcile invoices and payments in RAS.

30 Navigating RAS Navigation: Grants>Awards>Award Profile

31 Searching for the Award On the Award Search page, type in the award number.

32 Invoice/Payment Recon Click on hyperlink Invoice/Payment Recon.

33 Payment Status The summary box provides a quick review of the invoices/payments status.

34 Invoice Information Invoice Information The first five columns provide the invoicing info. Invoice Invoice Dt Invoice Amt Status Balance

35 Screen Definitions Invoice = RAS invoice# for this award. Invoice Dt = Date of expenses billed Invoice Amt = Amount billed (debit or credit) Status = Invoice status (C= Close/Paid; O=Open/Unpaid) Balance = Unpaid invoice amount

36 Payment & Adjustment Information The last seven columns provides payment and adjustment info. Group Type Payment ID Payment Dt Payment Amt Dt Applied AU/AO WU/WO Remaining Amount

37 Screen Definitions Group Type = Invoice payment status. (P=Payment Applied; U=Unposted (reversal of)payment; M=AR Adjustment) Payment ID = check # or Wire ID. Payment Dt = Date of payment or adjustment. Payment Amt = Payment or adjustment amount. Dt Applied = GL Posting date. AU/AO = AR Item created due to over or under payment. (AU=Underpayment; AO=Overpayment) WU/WO = Write-off item. (WU=Write-off Underpayment; WO=Write-off Overpayment) Remaining Amount = Remaining balance of the entry after the payment/adjustment.

38 Review What is the basis for billing a cost reimbursable award? Actual expenses incurred and posted to the General Ledger What are the types of RAS fixed price billing? Clinical trial, installment, milestone, prepayment, units of service, combination Which billing method cannot be changed once an award has been billed? Cost Reimbursable Which type of billing can departments create and submit directly to the sponsor? Only clinical trials Give an example of invoicing that requires close cooperation between the department and the CGA Billing Team. Sponsor requires backup documentation; special budget line item restrictions; units of service billing; milestones What determines the amount of an appropriation for all awards except clinical trials? For clinical trials? Approved budget in the agreement. For clinical trials, payments. How does a department request authorization for advance spending (prior to award)? Between funds years? Submit Fund Advance Request Form to OSR 38

39 Resources Contracts & Grants Accounting Website Includes Job Aids, Procedures and Policies Post Award Responsibility Matrix? Contracts and Grants Contacts 39

40 40 Questions?