Contracts and Grants Accounting
FREQUENTLY ASKED QUESTIONS - AWARD CLOSEOUT
Is there a way to prevent recharge centers from using a chartstring beyond the award expiration date?
So long as the fund is active and the chartstring is correct, the system cannot prevent journal entries from a specific source (like a recharge center). RAs should notify recharge centers to discontinue using an the award chartstring after the award expiration date. Recharge centers are obliged to discontinue recharges within 2 accounting cycles of notification.
Does the offset line for the accrual journals automatically get populated with the Accrued Expense account code of 23090?
No. This line must be manually entered.
If the actual expense comes in during close-out and is greater than the accrual, where does the difference go? to the department fund?
The Closeout Exception process addresses this scenario. Depending on the reason for the incorrect accrual and the timing of the request, it might be possible to invoice the sponsor for the difference. If the exception cannot be approved, it will be deficit cleared to the department.
What can be done if a subcontractor does not submit their final invoice in time?
Use the accrual process to record this anticipated expense in the GL in time to submit the Closeout Certification. Note: because subaward contracts now require the subawardee to submit their final invoice no later than 45 days after the award expires, a late invoice is a violation of the contract and the expenditure might be disallowed.
Why isn’t the Cost Share Contribution Report available for submission via the RA Grants WorkCenter?
This will come at a future point in time. For the time being please continue to complete this report outside of the BFS system, and submit it to CGA as an attachment to the Closeout Certification.
What happens if the NCE is approved after the award expiration date?
CGA can implement a No Cost Extention and adjust the close date of an award only when notified by SPO. Please refer to the updated NCE procedures on SPO website at http://spo.berkeley.edu/procedures/nce.html#processing
What are the consequences of RAs submitting Cost Share Reporting documents piece-meal before closing?
If the sponsor requires cost share reporting in increments (i.e. quarterly, annually, etc…), then the cost share documents must be submitted in accordance with the sponsor requirements. If incremental reports are not required, then all cost sharing for the award should be submitted to CGA along with the Closeout Certification Form.
How does the award closeout timeline affect recharges?
Beginning July 1, 2014, all recharges incurred during the award period but posted after two ledger cycles from the award’s expiration date will be rejected and reversed back to the originating recharge center.
How are F&A rate increases handled with accruals?
Rate increases that take effect after the award expiration date will be deleted from the award by CGA approx. 15 days prior to the award expiration date. When the actual expense posts, the system will calculate the F&A rate at the same rate as the accrual and the accrual reversal.