Contracts and Grants Accounting

AWARD SETUP

Contracts and Grants Accounting home Award Setup Managing Award Finances Award Closeout Deficit Clearing Process Effort Reporting Training

Overview

When a proposal or contract is finalized, the award amount and the sponsor’s terms and conditions for how funds should be spent and reported are fixed. CGA uses the Phoebe Award Summary information along with a submitted award budget to create an award structure in BFS.

  • Submitting a complete budget “translates” the award commitment into a spending plan that can be tracked and reported to the sponsor
  • The budget informs CGA how the Authority to Spend will be executed by allocating the award amount into ChartStrings
  • The award structure in BFS ensures financial processes and invoices reflect the terms and conditions as well as the level of reporting the sponsor requires

The set-up process may take a total of four business days to complete following the Phoebe Award Summary issuance. Once the budget is set up in BFS and the fund number is activated, spending against the award fund may begin.


Creating and Submitting an award budget

When SPO issues the Phoebe Award Summary, the same information is sent to CGA via a system interface. The RA/Dept has two business days from receipt of the Phoebe Award Summary to submit a complete budget to CGA and initiate the award budget setup in BFS. Learn about Contracts and Grants Chartfields and how a budget creates the award structure in BFS.

Submit a complete budget to CGA within two days of the Phoebe Award Summary.

Carefully review the award documentation to determine the authorized amount, funding period(s) and level of reporting the sponsor requires. Go to the BFS RA Grants WorkCenter to retrieve a Budget Template and look up the award’s fund# (and, if required, cost sharing CF1 value).

A complete award budget includes:

  • Unallocated Budget row for the amount stated in the Phoebe Award Summary (entered as a negative)
  • allocations to either DIR/IDC or BUDSUM cost categories, depending on level of reporting required
    • allocations to co-PIs and/or other campus departments, subawardees
    • allocations for specific tasks, cohorts, or other “bodies of work” with sponsor-required reporting
    • rows for cost sharing commitments with Fund and cost share CF1
  • row(s) for overhead/F&A
  • Budget balance must be zero (i.e., negative amount in the Unallocated Budget line + the positive amounts in all the other lines = 0).

Save the template to your computer in a comma-delimited file format, and submit the budget to CGA via the BFS RA Grants WorkCenter. Read detailed instructions for completing a budget template.

CGA will complete award setup within two days of receiving the complete budget.

Once the budget has been uploaded/submitted, the CGA Analyst has two business days to complete the award setup in BFS (provided the budget is complete, accurate, and compliant with the terms and conditions of the award): generate the C&G Chartfield values to complete each chartstring; post the budget to the Commitment Control (KK) Ledger; and update the Mapping Table so that transactions in interfacing systems function properly.

The RA/Department and PI are then notified via email when spending can begin.


Fund Advances

When there is a need to start the work of the award prior to receiving the formal approval from the agency, and the department will guarantee funding if the award funding does not come through, the department may submit a Fund Advance Request to the Sponsored Project Office (SPO). Only SPO may process a fund advance to allow spending before an award is made. For information on requesting a Fund Advance, please refer to the SPO website.

Typically a Fund Advance is limited to ~25% of expected first-year funding and a period of 90 calendar days prior to the expected award date.

Upon receiving a Phoebe Award Summary for a fund Advance (Authorized Spending) from SPO, the RA/Dept. Fund Manager must submit a budget for the authorized amount via the BFS RA Grants WorkCenter within two business days. CGA will set up the award and establish the preliminary budget within the following two business days. An advance fund number is set up and CGA notifies the department when advance spending can begin.

Once the agency approves and funds the actual award, preliminary budget entries will be reversed out and the approved budget entered into the ledger according to the new award budget setup procedures. The advance and the actual award will use the same fund number to minimize the number of cost transfers, purchase order and HCM (HR records and payroll) changes needed.

If the award still is not approved when the established Fund Advance Period ends, the department must process an extension through SPO or the expenses incurred are charged to other fund sources provided by the department. CGA will work with the department on this step.


Subawards

Budget requirements for outgoing subawards vary depending on the subrecipient (UC campus or other entity) and the subaward amount (less or more than $25,000).

  • Include a budget row(s) for subaward direct expenses in the submitted award budget
    • if the subawardee is another UC campus/facility, allocate subaward funds to intercampus Account #58014
    • if the subawardee is a non-UC entity or DOE Lab, allocate subaward funds UP TO $25k to Account #58013 , and funding OVER $25k to Account #58014
  • If a subawardee is providing cost sharing, budget this as 3rd party cost share.
  • The BFS award structure does not require unique chartfields or a separate “body of work” for subawards
    • you should create a CF1 to budget for/track a subaward only if the sponsor (or internal tracking) requires specific reporting on subaward activities.

Read more about budgeting for Subawards


Cost Sharing

Effective July 1, 2014 budget details for committed cost sharing must be included in the award budget at initial set-up. This will enable all cost share expenditures to be tracked as they are incurred during the life of the award.

  • Include the committed cost sharing amount in the Unallocated Budget row (i.e., sponsor commitment + cost share commitment = total unallocated amount) in the submitted award budget.
  • Contact the department(s) providing the cost share to request the correct Fund value to use on budget lines.
  • Find the CF1 value created by CGA to track cost sharing on this award. Use this CF1 value on each cost share allocation line.

Read more about budgeting for Cost Sharing


Program Income

When income is generated by award activities -- conference registration fees, publications sales --  that income is considered part of the award. Occasionally program income is anticipated in the award proposal and noted in the Phoebe Award Summary. In these cases, CGA will set up an award-specific CF1 value during award set-up to track program income expenditures and revenue.

Read more about accounting for Program Income


Memberships

When the University enters into multi-sponsor agreements where participating members sponsor a research program, SPO sends a Phoebe Award Summary and CGA sets up a Master Award/Project and a Master Fund in BFS for the research membership program. The department administering the program is not required to submit a budget to CGA to initiate spending. Individual members "subscribe" on an annual basis.

Read more about multi-sponsor membership programs


References for Indirect Costs (F&A), Benefit Rates

F&A  is automatically charged based on the IDC rate referenced in the award documents. Once the fund is activated, IDC costs are calculated daily (and visible in PI Portfolio and BAIRS reports).

Frequently Asked Questions
Award Budget and Setup
Log into BFS RA Grants WorkCenter

The RA Grants WorkCenter puts all the tools and reports needed for contracts and grants fund management in one spot:

BFS link to GrantsWorkCenter

  • Retrieve a Budget Template
  • Look up a Fund# or CF1 value
  • Upload and submit a completed Budget file

Questions or problems? Contact the BFS Help Desk: