• Financial FormsNirvana
• Cash receipts
• Letter of credit receipts
• Handling and reporting program income
• Monitoring the account
• Document review
• Encumbering
• Rebudgeting
• Correcting errors and transferring costs (cost transfers)
• Overdrafts
• Requesting additional funds
• Documenting cost sharing and matching
• Payments
• Interest-bearing accounts

• flags potential violations of OMB Circular A-21 and other accounting practices at both the preparer and certified approver levels.
• balances appear on screen prior to approval of transactions so that the approver will know whether enough money is available for the transaction.
• transactions are automatically posted to CUFS as encumbrances at the end of each working day.
• when the invoice is paid, encumbrances are automatically relieved and posted as expenses in CUFS, which means that project-specific financial reports are accurate and timely.

Cash receipts
All sponsors should transmit funds directly to Sponsored Financial Reporting (SFR). Occasionally, checks are erroneously addressed to PIs or departments. These checks should be forwarded immediately to SFR for deposit. The check must be accompanied by a memo indicating sponsor, the check number, the University account number (if it has been established), the project title, and the PI's name. Departments must not make deposits to sponsored accounts.
 
Letter of credit receipts
Federal agencies may provide payment for sponsored projects through a letter of credit process. Funds to cover project expenditures are made available from the Federal Reserve Bank to the University's commercial bank. The request for funds through the federal Letter of Credit is handled entirely by SFR.
 
Handling and reporting program income  
Program income is gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the award. Consult the University academic policy on Managing Program Income Earned on Sponsored Projects.
 
When program income is generated, the department administrator documents the activity that generated income (e.g., sale of video tape) and instructs the buyer where to send the revenue. The preferred method is to use the invoice template identified in the policy (Appendix A). As an alternative, sequentially numbered receipts can be used, but they must include the same information. The original invoice or receipt is sent to the buyer and a copy is sent to Sponsored Financial Reporting (SFR). If the PI or unit administrator receives a program income check, that person must send it to SFR for deposit. The check must be forwarded with a note specifying the prime project's account number and/or the program income account number, if known, designating it as program income, and indicating if it is reportable to the sponsor.
 
During preparation of financial reports, SFR will attempt to verify that all program income has been recorded. However, it is the PI's responsibility to verify that no more program income is expected for activities occurring during the grant's term and the Departmental Administrator's responsibility to reconcile revenue invoiced or submitted to SFR against University and sponsor financial reports.
 
Use of program income depends on the sponsor's terms and reporting policies. Contact the SPA grant administrator to verify how program income can be used. In the case of nonfederal sponsors, the PI must comply with sponsor terms and/or guidelines. In many cases, the sponsor does not have an established guideline and/or policy regarding program income and in such cases, if the sponsor is silent on the issue, the income is not reportable and handled by External Sales Office and/or Office of Technology Commercialization, as applicable.

Grant administrators monitor the level of program income. If a significant level has been reached (either the agency limit or 25 percent of the total award, whichever comes first), the grant administrator will consult with the PI and appropriate institutional officials to determine whether level implies a change in work scope and/or determine if use/disposition of income remains as originally identified.

Reconcile Transactions to Balance the Account:

• Do you have a copy of every document?
• Are there any encumbrances that need to be closed?
• Any payroll adjustments to be made?
• Have all the funds been received?

• Monitoring by the sponsor:
  Most sponsors monitor expenditures through periodic financial and technical reports. See section 4.10 "Reporting."
   
• Local oversight:
  The PI initiates and approves expenditures while the unit head maintains local oversight over the budget.
   
• University oversight:
  The vice president for research, with the controller, has overall responsibility over financial management of sponsored accounts. The office of Oversight, Analysis, and Reporting conducts many of the oversight functions for the vice president.

Document review
Document review for sponsored project accounts is primarily conducted by departmental Certified Approvers.

If the necessary budget line has not been established (i.e., Object code is not set up for this account), send the document to the SPA grant administrator requesting that the Object code be set up and identifying where the funds should come from. The grant administrator will establish the budget line and forward the document to Disbursement Services.
 
What is needed for a transaction to be acceptable on a sponsored project? See the General Accounting.

Correcting errors and transferring costs (cost transfers)

Once a transaction has been entered into the University's accounting system, there is a limited period of time during which it can be changed. Deadlines for moving charges onto sponsored accounts are:

• Non-salary items: the transfer must be made within 30 days after the end of the accounting period in which the original charge was processed. If the project is terminating, the transfer must be made no later than 30 days after the project or budget period end. These cost transfers must be approved by a CA regardless of dollar amount. PI approval is required if the PI supplied incorrect account number.

• Salary items: transfers for salaries must be made before approval of the Effort Certification Statement, and if a project is terminating, within 30 days after the project's end.

See the uncollectible costs policy.
 
Requesting additional funds (supplemental proposal)
During a project's term, additional funds can be requested from the sponsor.
 
The sponsor may have a "supplemental proposal" application form. If no application is available, address a letter to the sponsor justifying the need for additional funds.
 
A Proposal Routing Form (PRF) is required for all supplemental requests. This PRF and the application or letter must be processed through SPA.
 
Documenting cost sharing, matching, and in-kind
All cost sharing or matching/in-kind funds must be documented. These funds must be documented as an expense that is relevant to and concurrent with the sponsored project.

• salary and wages: documentation is provided through the effort certification system.
• non-salary items: consult the SPA grant administrator to determine proper documentation procedures.

Interest-bearing accounts
Interest bearing accounts may be required by some sponsors when the prepayments on the grant exceed the expenditures. Conversely, interest is charged against accounts with negative cash balances. If the award requires that funds be deposited in an interest-bearing account, the University will invest the resources in its Temporary Investment Pool (TIP). See section 3.1, or the University financial policy on Allocating Temporary Investment Pool Income.
 
The Office of Budget and Finance annually sets TIP allocation rates and threshold balances. These rates and balances can be found in the University financial policy on Allocating Temporary Investment Pool Income.
 
For interest to be accrued to the project's account, a specific balance must be present at the end of each trimester (for example, $15,000).
 
Sponsored Financial Reporting is responsible for transferring interest at the end of each trimester.