Financial Management

How Can I Spend Award Dollars

Congratulations on your Award-What do you do now?

Hire or Pay Personnel Order Supplies Contract Lecturers Subcontract Work Make Travel

Arrangements

– All need an account number from GCA

Account Number

Information sent from OSP to Grants Administration:

Statement of work, proposal or contract Budget Route sheet with signatures of approval

Purchasing

– Purchases for goods and services require a PO (purchase order)

Contact the University Purchasing Office

– Office supplies may be purchased using the C-O-O-L system

– P-Cards can be used for incidental office supplies (requires prior approval from GCA)

Employee Travel

Requires Completion of Travel Requisition PI or Designee Makes Reservations Personally Foreign Travel Must Specified in the Proposal or

Contract – Approved in advance in writing by the sponsor (if required) and appropriate University personnel (Dean, VP, etc.)

Participant Travel

Participant travel is defined as taking a non-university employee who is covered under a sponsored program on a day or overnight trip.

– Sponsored Program participants may be students, professionals, and/or professors at other institutions or any non-university employees whose travel expenses are to be paid from grant funds.

How Participant Travel is Reimbursed

If a university employee travels with participants, the employee must prepare a single Travel Application, covering expenses for him/herself and all participants.

If a participant pays their individual travel expenses, a request for reimbursement should be processed on a Travel Claim--Participant/Consultant Form.

Consultant vs Subcontract Agreements

Consultant – Limited activities performed by a private individual who is not an employee of the university.

Subcontract – When a material portion of the work will be accomplished by another institution or organization, use of the subawardee must be integral to the completion of the scope of work.

Tests for Consulting Agreement

1. Consultant does his/her work independently without supervision.

2. Consultant has not been an employee of the university within the last 12 months.

3. Consultant uses his or her own facilities or equipment to conduct the work.

4. Consultant is not included on the list of excluded, suspended, or otherwise ineligible for participation in federal programs.

Agreements Used for Consultants and Subcontracts

Consultant Agreements are administered through a Personal Services Contract. The university tax specialist reviews the contract

Subcontracts are administered through a formal contract. GCA prepares a subcontract and sends it out for signatures. A scope of work, payment amount and contacts must be provided by the PI.

Whose Money is it Anyway?

•The PI?•The Dean?•The Department?•The College/School?•OSP?•GCA?•The University?•The State?•The Sponsor?

The Funding Source

Sponsors direct how the funds are to be spent!

GCA does not make rules. We follow the sponsor’s and University’s rules, policies and procedures. In limited situations, GCA will get clarification to interpret certain issues.

Guidelines for Fund Expenditures

Reasonable – Prudent Person Test Allocable – Expenditure Benefits the

Particular Project Allowable – Expenditure Does Not Violate

Sponsor or Texas State Restrictions Consistent – Similar to Amounts Charged to

Other University Activities Documented – Invoice or Receipt

General Cost Checklist

Unallowable Alcoholic Beverages Contributions/Donations Fines and Penalties Items for Personal Use Pre-Award Costs Student Activity Costs Food Proposal Costs

Allowable if Specified Business Meals Meeting Costs Conferences Memberships Promotional Items Certain Advertising Travel

Examples of Unallowed Costs

Coffee Mugs for Administrative Staff Bus Chartered for Administrative Staff Reunion for Former Participants T-shirts, Engraved Key Chains, Texas State

Banners– (Unless specifically requested in the proposal.)

Other Elements of the Award

Participant Support, Program Income, Cost Sharing, Financial & Technical Reports and Effort Reporting

Participant Support

Payments can be made to participants in grant programs such as incentives to pay for miscellaneous expenses, tuition and for other grant related expenses.

– Subsistence payments – Complete a Participant/Subsistence Payment Request Form and send to GCA.

– Tuition – Paid directly by the grant to the university. Contact GCA

Program Income

Program Income is the gross income earned by the University that is directly generated by a supported activity or earned as a result of an award. (budget required)

Examples:– Fees for services performed (Conference fee)– Use or rental of property acquired – Sale of commodities or items fabricated

How Program Income Can Be Used

Program Income should be identified in the grantproposal

It is treated in the same way as the “awarded” funds. Generally, program income funds are used to cover

expenditures first. (no, you can’t keep it)

A separate account in the grant range will be set-up by GCA to accurately track and report program income and related expenses.

Cost Share (Match)In-Kind Contributions

The amount of program costs that the University or another sponsor will contribute towards a sponsored activity.

(Generally not the Federal government)

The PI is responsible for documenting cost share and forwarding a copy of the documentation to GCA.

Effort Reporting

The University is required by the federal and state government to certify the effort of employees on sponsored projects.

Certification is required at each long semester for faculty and monthly for staff positions.

Program Management

Reporting and Changing Terms of the Award

Changes Requiring Prior Approval For Most Awards

Scope of Project Key Personnel PI’s Absence 3 Months or 25% Reduction in Time Additional Funding Needed Transfer Between Indirect and Direct Costs Transfer of Funds Allotted for Training (Tuition) Subcontracts Agreements Costs that Require Prior Approval in OMB Circulars

No Cost Extensions

Most federal agencies allow a one-time 12-month no–cost extension. This does not require a reason and does not contain additional funding.

It must be requested approximately 45 days prior to the end of the award.

Contact GCA to make this request.