Account & Award Budgets

 

Many of the sponsored research projects at UT are from federal agencies, and the majority of them are set up as what's called Cooperative Agreements.
 

• These types of agreements have a unique combination of fixed cost and cost reimbursable characteristics. Those two things are usually considered opposites in the realm of contracts and grants.
   
  • Fixed cost means... here's the money, all of it. Produce the results and don't bother us with the details. Just let us know when you get this new fandangled thing built!
     
  • Cost reimbursable means... there is no upper maximum. It's a spend-as-you go deal, with invoicing ocurring across regular intervals.
     
  • Cooperative agreements DO set a hard-stop upper maximum, the sponsor DOES want to know all the details (reporting), and we also invoice, usually monthly, against the award for costs incurred - which means the funds don't get deposited at UT until well after the funds have been spent. 

 

When you're looking at the budget in *Define's GB2 module, those funds are not actually at UT. And if the sponsor of the funds allows for intra-account re-budgeting (and most federal agencies do), then the PI is not bound by the budget reflected in GB2, though best practice is that it should reflect from the start, generally, the needs of the project. 

• So, why bring this up? Because it can be difficult to make the transition between what is seen on the GB2 screen and what needs to happen in a budget and/or project based on the spend plan from the PI perspective.
     
• The projections you create for expenditure tracking may look different compared to the budget in *GB2. It's the PI's spend plan that drives how the funds are allocated into the different subaccounts.

Obtain and read over award documentation to gain understanding of the project

• You can get award documentation via:
  • (Now inactive) RMS-through June 2022
  • UT-RMS-starting June 2022
  • Msg to OSP General Mailbox
  • Your SPAA Analyst for award documents
     
• Familiarize yourself with award summary, budget, budget justification and terms and conditions
  • Determine if there is flexibility for budget category transfers and/or changes (*Define CA3)
  • Add award budget and justification to an easy-to-access electronic file for future spending requests
    • Make sure you are familiar with sponsor guidelines to ensure compliant spending and requests
  • Reach out to award PI(s) and get an overview of their plans for the funding
    • If the project has a Co-PI, be sure to include them in planning conversations
      • Discuss proposed team (students), anticipated travel and equipment needs
      • Ensure types of spending categories the PI identifies are allowable based on account setup
      • Identify any needs that may require special handling, such as cash advances or a business contract

 

• Acquaint yourself with reporting requirements and proactively create clear and easy to understand advance-notice reminders to bring reporting requirements to your PI's attention
   
• For awards with multiple UT PIs in other units, consider using an internal letter of agreement to establish separate accounts to allow all parties to have direct access to their funds
   
• If project includes external subcontract teams, create a plan for managing the subcontract requirements
  • Make sure subrecipient is invoicing as outlined in the subcontract
     
• Establish whether or not project includes cost share, plan to track, if applicable
   
• Meet with or reach out to PIs regularly to update projections for spending
  • Especially in advance of each semester & project year start
  • Make sure spending plans stay up to date
  • Keep transfers of funds (if allowable) to a minimum, as transferring of funds within an account suggests that errors were made during planning phase. Occasional corrections are typically okay, but don't over-do it!
    • The idea isn't to try to limit the PI and their options to make minor changes to spending. It's more that when an award experiences frequent rearranging of funds, it increases risk during an audit.
      
      Also, any transfers or corrections made to the account need to occur within three months of the original charge - again because this type of activity (>3months) puts the university at risk during audits.
       
• Ensure account and all subaccounts remain in good health (positive balances)
  • Process transfers to avoid nagative balance (if allowable) or correct expenses as needed
  • Reconcile expenditures on account every month
     
• Create a reminder to check award status 3 months prior to expiration
  • Follow up with PI to see if No-Cost Extension is needed
  • If possible, plan to end spending with a non-salary expense, such as travel or tuition; partial salary expenditures are difficult to estimate based on fluctuating and imprecise costs via Workday
  • Plan early for award closeout
    • Typically this is a 90-day window after expiration to finalize all expenses that occured during project dates
    • An auto-generated notice is sent to account contact and PI, notifying them of expiration
      • You can respond directly to such messages to alert Office of Accounting about future plans
        • You can request they keep the account open due to a pending NCE, additional funds, etc.

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