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Q. Does Project Accounting have a Help Desk?
A. Project Accounting has a Help Desk which can be reached by calling 312 567-3337.
You may call that number for any question regarding the financial administration of
grants and contracts at IIT. If the person who answers cannot answer your question, he
will refer the call to a person who can respond to the question and the call will be
returned within 24 hours. Project Accounting also has a location on IIT's website.
Q. How will I be notified of a new award?
A. The Office of Sponsored Research and Programs (OSRP) notifies Project Directors
and Principal Investigators of all awards including the account number provided by
Project Accounting. Only OSRP can accept awards on behalf of IIT. Once received,
OSRP will forward an award to Project Accounting. Account numbers are usually
assigned on the day Project Accounting receives awards. Project Accounting will notify
the Project Director/Principal Investigator (PD/PI) of a new account by e-mail. For
continuing awards, additional funds will be added to an existing account if the sponsor
allows for combined financial reports on different time periods. If the sponsor requires
separate financial reports for each discrete time period, a new account will be
established.
Q. When can I start spending on a new award?
A. As soon as an account number has been assigned PDs/PIs
can initiate expenditures.
Q. What if my award has not been received, but I need to get started on the
project?
A. If PDs/PIs need to incur expenses prior to receipt and acceptance of an award by IIT
they should complete an "Advance Expenditure Authorization" form, available from
Project Accounting, OSRP or the web at
http://www.grad.iit.edu/research/advanceauthform.html.
This form requires the
designation of a "backup account" which can be used if the expenses incurred under this
procedure are ultimately not reimbursable from the intended sponsor. Once the form is
completed at the department level it should be forwarded to OSRP. Under normal
circumstances, OSRP will approve this application if they have processed a proposal
and can confirm that an award is imminent. After approval by OSRP, the form will be
forwarded to Project Accounting who will use it as the basis for establishing a new
account in FRS for the proposed project. If the form is for a continuing project it will be
used as authorization for continuing expenses on an existing account. Expenses will not
be charged to the indicated backup account unless it is determined that the sponsor
does not intend to issue the award. Project Accounting will contact the PD/PI prior to
charging a backup account.
Q. Why does my award have more than one account number?
A. There are two primary reasons for an award to have more than one account. First,
Project Accounting can assign separate accounts for awards with multiple PDs/PIs who
request them. Second, projects, which take place partially on-campus and partially
off-campus, require the use of multiple indirect cost rates. Multiple accounts will be
established to properly calculate the indirect costs for each component. Each account
has only one indirect cost rate.
Q. What is FRS?
A. FRS is IIT's Financial Records System. It is used to record all financial transactions
on each account.
Q. How can I access FRS?
A. In order to have computer access to FRS an employee must
complete an
access form
on the Computing and Network Services (CNS) website. After this form has been
submitted to CNS, the employee will be contacted and given instructions on how to
proceed. Once an employee has FRS access, he will have automatic access to each
new account within two days of the account setup, if he is the "responsible person"
(PD/PI) for the account. If the PD/PI wants an additional person to have FRS access, he
should request it by completing the
access form
on the CNS website.
Q. What should I do if I notice errors on FRS?
A. Questions regarding expenses missing from an account or expenses that are
erroneously charged to an account should be directed to the Assistant Manager, Project
Accounting at 312 567-3311 or e-mail
eric.schmidt@iit.edu. FRS questions are usually
resolved more quickly if they are put in writing (e-mail) as opposed to telephone.
Q. What are subcodes?
A. Subcodes are the last four digits of the ten-digit FRS code. They are used to
properly classify expenses and relate them to budget categories. If expenses are
charged to an incorrect subcode, please request a correction by sending a memo to
Derek Usman or e-mailing him at
usman@iit.edu. Project Accounting plans to add a
subcode list to the website. All supply expenses should be charged to subcode 3180
only.
Q. How are purchase orders processed?
A. In accordance with IIT policy, purchase orders are required for the procurement of
goods and services in excess of $500. Because purchase orders are processed
electronically please contact your departmental representative for the initiation of
requisitions, which will become purchase orders. The purchasing system expects that
funds will be available in each budget line item when a requisition is processed. If funds
are not available in a line item FRS will not allow the requisition to be processed beyond
screen 256. If funds are available in the overall account, the requisition can be approved
in Project Accounting. Please contact Derek Usman at 312 567-3337 or
usman@iit.edu for assistance with screen 256.
Q. What are procurement cards?
A. Procurement cards are credit cards furnished by IIT for small retail purchases. These
cards may be issued to PDs/PIs and the expenses incurred will be charged to a grant/
contract account designated at the time the card is issued. Information and applications
can be obtained from IIT Purchasing. Please contact 312 567-7992 or
molina@iit.edu.
PDs/PIs are responsible for requesting an account number change when appropriate,
such as when a grant ends.
Q. How do I issue a check request?
A. When no purchase order is required, requests for the issuance of checks should be
made by preparation of Check Disbursement Vouchers (CDVs). These forms are
available in every department. Original receipts should be attached. Credit card and e-
mail statements are not considered receipts unless they itemize the transactions.
Additional information is available on the web at
http://www.iit.edu/~controller/accounting_policy_manual.htm#process.
Q. What is the procedure for petty cash payments?
A. Petty cash is a method used to reimburse out of pocket expenses up to $150. Petty
cash forms are available in every department. The form should specify the account to
be charged including the four digit subcode, the items procured and contain an
authorized signature on the account. Original detailed receipts must accompany the
forms. These forms should be brought to Project Accounting, Room 308 in the Main
Building for approval and taken to the Cashier's Office on the first floor of the Main
Building for reimbursement. Additional information is available on the web at
http://www.iit.edu/~controller/petty_cash.html.
Q. How are travel expenses paid?
A. Expenditures for travel are reimbursed in accordance with IIT's Travel Policy, which is
available on the Controller's web site
(
http://www.iit.edu/~controller/procedure_manual.htm). Forms are available in every department. Please note that original
itemized hotel receipts must be provided. No employee may approve payment for
himself; approval should be from the academic unit head.
Q. How do employees get paid on a timely basis?
A. Regular employees are appointed on Payroll Authorizations. The appointment of
graduate students is accomplished by Income Tuition Vouchers (ITVs) through the use
of the electronic system administered by the Graduate College. Each department has
one or more persons who have access to this system. Payroll Authorizations and ITVs
for employees who are paid on the 15th of the month must be received by Payroll by the
first day of each month. For employees paid on the last day of the month payroll
documents must be received by Payroll on the 15th of the month. Please allow sufficient
time for approvals so the documents will be received and employees will be paid on a
timely basis.
Q. How are fringe benefits charged?
A. Fringe benefits represent IIT's costs of providing benefits to employees. Grants and
contracts are charged in relation to the portion of each employee's pay that is charged
to a grant/contract account. Each employee has unique circumstances that may
determine fringe benefit eligibility and election of benefits. Therefore IIT's costs
associated with benefits may vary widely from one employee to another. As a result of
these factors, there may appear to be little relationship between the fringe benefit
charges and the fringe benefit budget.
Q. What are effort reports?
A. The federal government requires effort reports in accordance with OMB Circulars A-
21 and A-110. They are issued monthly for all employees who receive any portion of
their compensation from a grant or contract ("5" account). These reports are distributed
to each department chair within one week of month-end and are required to be signed
and returned to Project Accounting within two weeks of receipt. These reports represent
the only documentation for salary and benefits charges as well as the indirect costs on
salaries and benefits. The chair, the PD/PI or the employee only may sign them. Other
signatures are not valid.
Q. What are indirect costs and how are they charged?
A. Indirect costs represent IIT's costs of administering grants and contracts that are not
easily identifiable. It includes costs such as equipment and building depreciation,
operation and maintenance of facilities, departmental administration, library usage, and
general and administrative costs. The federal indirect cost rates are negotiated
periodically with the Department of Health and Human Services, in accordance OMB
Circular A-21, based on a proposal that IIT submits. Federal agencies generally use the
negotiated rates, except for programs with lower rates that are congressionally
mandated. Non-federal sponsors may use rates different from the negotiated rates. If a
sponsor does not allow for IIT's negotiated indirect cost rate, OSRP will need a copy of
sponsor guidelines to determine the indirect cost rate allowed on a proposal. Indirect
costs are automatically recorded in FRS at the end of each month by multiplying the
indirect cost rate incorporated in the award by the monthly expenditures in the base for
indirect costs. As a result, indirect costs will only be correct at the end of each month.
Q. How do I move costs from one project to another?
A. Transfers of costs into and out of grant/contract accounts should contain
documentation regarding the rationale for the change. In general, they represent
correction of prior errors. A non-salary transfer may be requested by memo or
completion of a Request for Transfer of Expenses form, available on the web at
http://www.iit.edu/~controller/expenses_transfer.html. Cost transfers of payroll charges
must be requested by completing revised payroll documents. Any transfer of costs must
be supported by documentation, which contains a complete explanation of why the error
occurred and the correctness of the new charge. Cost transfers should be made within
90 days of the original charge. Any transfer after this period raises serious questions
regarding the propriety of the transfer. If the transfer is requested more than 120 days
after the original charge, the requestor must also provide an explanation of why the
request is late. Cost transfers on accounts with significant cost overruns or unexpended
balances cause agencies to question the propriety of the transfers as well as the overall
reliability of the university's accounting system. These transfers will not be approved.
Cost transfers are subject to the review and approval of Project Accounting.
Q. Who prepares invoices and financial reports?
A. It is the responsibility of Project Accounting to issue invoices and financial reports on
a timely basis. Copies of invoices and financial reports will be e-mailed to the
Responsible Person for each grant/contract account with exceptions noted below.
Some federal agencies have electronic filing systems, which are used to account for all
awards from that sponsor. This is the case for awards from National Science
Foundation (NSF), Public Health Service (PHS), Department of Education (DE),
National Aeronautic and Space Administration (NASA) and Office of Naval Research
(ONR). Project Accounting will develop a system to report expenditure information on
these federal awards to faculty, but we cannot provide this information currently.
Q. How do I request an extension of time on my award?
A. Project Directors and Principal Investigators should request continuation funding or
no-cost extensions for projects no later than 45 days prior to the termination date of a
project, when applicable. Requests of this nature must be processed through OSRP.
Please contact them at 312 567-3035 so they can review sponsor requirements for
continuations or extensions and prepare necessary requests. Sponsors do not always
approve these requests, so PDs/PIs should make contingency plans. Expenditures
beyond the award end-date cannot be approved without an extension approved by the
sponsor.
Q. How do I request a budget change?
A. Most federal agencies do not require approval of budget changes unless they are
significant. OSRP can advise PDs/PIs on the need for requesting budget changes from
sponsors and they are responsible for initiating requests. Please submit all requests of
this nature to them. They can be contacted at 312 567-3035. Project Accounting will
change the budget on FRS after notification from OSRP that the sponsor approves the
change. Project Accounting will change the FRS budget only for modifications that are
approved by a sponsor.
Q. What is the available balance on an account?
A. Project Accounting can provide authorized users with printouts of the most recent
month-end status report from FRS. Using the project-to-date actual expenditures, add
outstanding purchase orders, unpaid salary and tuition commitments, any other
expenses not shown on FRS, plus indirect costs on the unpaid items. Subtract the total
expenses from the budget to determine the unexpended balance.
Q. What should I do if a sponsor informs me of an upcoming audit?
A. Any IIT employee who is contacted by a sponsor regarding an audit, should
immediately contact the Manager, Project Accounting, at 312 567-3311 or
schmidter@iit.edu.
Q. What are Project Accounting responsibilities?
A. Assist PDs/PIs and staff
Invoice sponsors
Financial reporting to sponsors
Create new accounts and notify authorized users
Effort reporting
Audit coordination and assistance
Regulation compliance verification
Accounting system maintenance, including budget
input and recording invoices
Monitor cash receipts
Monitor accounts receivable and advances
Execute drawdowns of cash from federal letters of credit
Prepare indirect cost proposal and negotiate indirect cost rates
Process payroll authorizations and income tuition vouchers
Close out accounts at conclusion of projects
Q. What are the PD/PI responsibilities?
A. PDs/PIs and academic departments administering grants and contracts are
ultimately responsible for the conduct of each project. They shall obtain a familiarity with
general guidelines of the funding agency, and the specific provisions of each award
including the requirements for re-budgeting.
The Principal Investigator responsibilities also include:
- Filing technical reports on a timely basis through Sponsored Research.
- Processing expenditures in accordance with University policy (see
http://www.iit.edu/~controller/policies.html), as well as funding agency
requirements.
General Expenditure Guidelines:
Timeliness -- Expenditures must be submitted for reimbursement on a timely
basis. Expenditures submitted more than sixty days after the project end date will
not be paid.
Distributed Throughout Project Life, Not at the End -- Sponsors expect that
goods and services will be consumed during the life of the project. Excessive
expenditures late in the project period, as well as payments after the termination
date, raise questions of propriety as well as intent. Goods and services must be
procured sufficiently before the termination to assure usage prior to the
termination date. Equipment purchases, for example, should be initiated at least
sixty days before the end date.
Equitably Charged to Projects -- Expenditures should be charged to projects on
the basis of the relative benefits. For example, an equipment repair can be
charged to a project only to the extent that the equipment is used on the project. If
the equipment is used sixty percent of the time on a project, the repair of
equipment charged to the project cannot exceed sixty percent of the cost.
- Maintain records of project expenditures and reconcile to FRS.
- Complete and return Effort Certifications within two weeks of receipt.
- Secure written approval for changes, i.e. budget changes and no cost
extensions, if required, prior to incurring costs.
- Obtain the final report from consultants and subcontractors.
- Prepare documents to record cost sharing expenses on the grant/contract
account in accordance with award requirements.
- Justify and document cost transfers.
- Retain project files and support for expenditures for a minimum of three years
after filing the final reports. The Controller's Office is responsible for original
copies of invoices, checks, purchase orders, etc. PDs/PIs must be able to
explain the rationale for procurement of goods and services.
Glossary
- CDV
- Check Disbursement Vouchers
- CNS
- Computing and Network Services
- FRS
- Financial Records System
- IIT
- Illinois Institute of Technology
- OSRP
- Office of Sponsored Research and Programs
- PD/PI
- Project Director or Principal Investigator
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