Current Procedure:  In order to expend in a specific expense object, that object must also be set up and active as a “budget expense object” on the project.  When the award is over (terminated), allowable and allocable expenses can still hit the project until the expense object or the account string has been inactivated.

Procedure change with implementation of the EFS:  In order to expend in a specific expense account (formerly known as “object”), that expense account must be set up and active as a budget expense account on the project.  This is the same as the current procedure.  When the award is over (expired), allowable and allocable expenses can still hit the project until 90 days after the end date of the award.  After 90 days the allowable and allocable expenses will not pass commitment control and will not post to the project.  This 90 day time period is applicable to removal of expenses as well.

What does that really mean for academic departments?  When a project terminates, the department needs to make sure that salary distributions are updated on a timely basis and any outstanding subcontract invoices, as well as any other outstanding invoices for goods and services, are received.   If additional time is needed, the department can contact the Grant Administrator or the SFR Accountant with a justification for why allowable and allocable expense transactions still need to hit the project and the expected date by which they will be resolved.  SFR/SPA will then extend the Commitment Control date to allow these transactions to post. NOTE:  Extending the Commitment Control date is not extending the end date of the award and new expenses may not be incurred after the award end date.  This extension is used to ensure that all appropriate encumbrances and commitments can be cleared and applicable expenses posted.  Extending Commitment Control more than 90 days after the award end date will typically cause financial reporting to be late. It can also result in audit risk for the University on federally funded projects because of delinquent liquidation of obligations.  Such extensions, therefore, should be rare and based on unusual circumstances.

For various reasons, most recently the effort certification period change, it has become increasingly important for academic departments to conduct monthly reviews of the expenses on sponsored projects.  Commitment Control is one more reason for proactive and timely reviews of expenditures.

last updated on 4/17/08