University of Minnesota
Controller's Office
http://controller.umn.edu/
612-624-1617 or controller@umn.edu

Sponsored Financial Reporting

Sponsored Financial Reporting (SFR) is both a set of business processes and the institutional unit reporting to the Controller's Office that is responsible for submitting financial reports and invoices to sponsors to fulfill award requirements. Most of the steps in the sponsored financial reporting business process are completed in cooperation with (or by) SFR staff accountants. For example, SFR staff prepare sponsor-required financial invoices and reports with assistance from Principal Investigators and Department Administrators. Invoices and reports are prepared based on the frequency and due date requirements established by the sponsor and written in the award documents.  

Sponsored Financial Reporting receives all revenue on behalf of the University for sponsored grants and contracts. SFR collection representatives follow up with the sponsor on all past due invoices to ensure receipt of payment on invoices and work with both sponsors and academic departments on quality or quantity issues related to non-payment.

Sponsored Financial Reporting is responsible for closing all sponsored awards in the financial system once the award is over, all spending complete and all payments received.

Sponsored Financial Reporting is responsible for coordinating sponsor, state and federal financial audits including the A-133 audit of expenditures of federal awards. They provide information for the University's annual reports, supplemental schedules and consolidated financial statements.

Uniform Guidance 2014

As you know, we will be facing significant policy, procedure, business process, system, and training changes in the months ahead as we implement the new federal Uniform Guidance (replacing OMB Circulars A-21, A-110, and A-133), as well as implement other significant agency changes, such as the move to NIH subaccounts.

We are most grateful to the U community for the great response to our request for volunteers to help with the Uniform Guidance. We have created seven Uniform Guidance Work Groups, shown below, in addition to our Uniform Guidance Steering Committee and some very talented individual specialists.

  • Costing
  • Pre-Award / Sub-Award
  • COI Work
  • Purchasing
  • Property
  • HR / Effort
  • Post-Award

You can follow the work of these groups, as well as the continuing national efforts and agency implementation guidance, on our new Uniform Guidance web site, at: http://www.ospa.umn.edu/documents/UG.html.

How to

How to prepare your sponsored award for close out

Closing a sponsored award in Peoplesoft Financials is a joint effort between SFR and the academic departments. SFR has created a checklist (pdf) as a tool to facilitate the close out process. Below are some resources that support the process on the checklist.

How to process journal entries to fund cost share on sponsored projects and do an F&A redistribution

Training Services has created a document titled Analysis Types (pdf) that has useful information and sample journal entries for the two analysis types introduced in March 2010: Cost share revenue (CSR) and Reallocate F&A (RFA). More information about Analysis Types can be found here (pdf) in "slide" format.

How to move payroll and fringe on sponsored projects

An announcement was made December 13, 2011 about changes to this process. Read the brief announcement of the change on the EFS message screen archive here and more details about the procedure itself here.

NIH Salary Cap

A job aid and queries are available to assist department staff with NIH salary cap payroll and cost sharing calculations. Posted on July 17, 2009.

Did you know that there is a fair amount of confusion when departments calculate the cost sharing towards payroll expenses for individuals who exceed the NIH Salary Cap? To help alleviate this issue SFR and Training Services created a job aid to assist users with calculating payroll and cost-sharing associated with the NIH Salary Cap. The job aid provides a high-level summary of the NIH Salary Cap process and procedures as well as links to a helpful spreadsheet and queries payroll and accounting staff can utilize in calculating and monitoring cost-sharing for individuals exceeding the NIH Salary Cap.

The job aid (pdf) is located on the Training Services website.

Salary Cap Summary (FY1990 - FY2010)

Payroll and cost share calculation worksheet (xlsx)

Special website for sponsored activity

SPA and SFR jointly created an EFS Sponsored Projects Web site that provides comprehensive information of all the changes related to sponsored projects due to the implementation of the new financial system in July 2008. Follow this link to visit the site.

Frequently asked questions

How many days do departments have to record activity against a sponsored project/grant after the end date?

Departments typically have 60 days or fewer after the end date of the sponsored project to record activity in the general ledger, depending on the sponsor and type of award--please read the information below. Contact your Grant Administrator in SPA or your Grant Accountant in SFR for more specific deadlines for your project.

If for some reason there is activity that belongs on a sponsored account but the deadlines have passed, contact SFR as soon as possible. The staff there can provide further guidance.

For Federal awards the University generally has 90 days to liquidate all encumbrances and submit the final financial report. In order to meet that deadline all transactions should be processed within 60 days of the end date so that the final financial report can be prepared and still allow the PI and department adequate time to review it before it is submitted to the sponsor. If departments were allowed the full 90 days to process transactions, there would not be adequate time to prepare, review, and submit the report before the sponsors deadline. 

The deadlines are different if the University is a subrecipient on a Federal award. In these cases the University has 60 days to submit a final report/invoice to the institution that we received the subaward from so that they can incorporate that information into their final financial report to the prime sponsor by the 90 day deadline. For these types of awards departments would have less than 60 days after the end date to process transactions.

PeopleSoft Financials will stop any transactions beginning at 90 days after the end date.

Processing journal entries on sponsored transactions from previous years (4/3/2009, updated 7/11/12).
Prior to PeopleSoft, if a transaction on a project that was recorded from a pervious fiscal year needed to be moved to a non sponsored account, SFR had to process the transactions. With the new COA and PeopleSoft, SFR no longer has to process the transactions. If an academic department needs to process a journal entry on a project related to a transaction recorded in a previous fiscal year the academic department can process the journal entry.  

For non salary journal entries, the only difference when processing the journal entry is the CF1 value should be YR000020XX (the XX represents the FY of the original transaction).

The Historical Salary Adjustment (HSA) processing window for sponsored or cost share ChartField strings is now a rolling five years. It remains the case that HSAs on sponsored accounts are expected to be processed within the period allowed under policy (currently, within the active Effort Certification period). This change does not impact this requirement. Instead, this change is meant to allow the system to technically allow HSAs outside of this window (in those rare cases when these are approved) as opposed to being forced to use a journal entry for corrections older than 26 pay periods.
Sponsored activity nightly processing (from SPA/SFR).
We have fielded a lot of questions and complaints about timing of the nightly jobs, especially how the jobs impact the sponsored reports. Each module has what is called a processing box (a series of posting and updating jobs that process nightly). The GPC processing box is scheduled to start after the Purchasing, Accounts Payable, Employee Expenses and General Ledger processing boxes have completed. Then GPC starts the Cost Collection jobs which go out and cost collects the transactions from Purchasing, Accounts Payable, Employee Expenses and manual Journal Entries from GL.  Then our F&A job starts followed by a series of other GPC jobs. Lastly, but not least is the copy of Production (PRD) to the Reporting Instance (RPT) which starts at 6:00 AM.  This is a very tight schedule, some jobs run long and at times we are still processing the previous day GPC processing box when the copy of PRD to RPT starts. As many of know this is problematic for report users, most of the time the expense is there but the F&A isn't as the copy of PRD started before we were done with the F&A job, etc.  

After reviewing several options and working with the module support team we have a long term solution to the situation.  Change the GPC processing box to begin at 7:00 pm - this would ensure the box is complete by the time the copy of PRD to RPT is made and remove the dependency that the other modules processing boxes complete before the GPC box starts.  

How does this change impact the academic departments? Transactions processed on a project on a Monday in the feeder modules are cost collected into GPC on Tuesday's GPC nightly processing box run which starts at 7:00 pm and will be in the reporting instance Wednesday morning. This gives consistent and accurate data and departments can feel confident that "everything" is there when running sponsored reports out of PS Reporting Instance or UM Reports. 
How to look up the Grant Administrator or SFR Accountant in EFS.
A job aid has been created that shows how to look up the Grant Administrator or SFR Accountant in EFS. See theEFS-SP Web site and refer to the section called EFS Training and Job Aids.