Principal Investigator Responsibilities

Responsible Office:    Project Accounting Date Issued:    10/22/02 Date Revised:      Contact:    project.accounting@iit.edu Policy: Principal Investigator Responsibilities for Financial Oversight of Grants and Contracts Purpose: To communicate to Investigators their stewardship responsibilities for fiscal management of grants and contracts awarded to the University. Process: Principal Investigators and academic departments administering grants and contracts are reminded that they are ultimately responsible for the conduct of each project. Principal Investigators shall obtain a familiarity with general guidelines of the funding agency, and determine the specific provisions of each award including the requirements for re-budgeting. The Principal Investigator responsibilities shall 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 monthly to University reports. Complete and return Time Certifications, certifying effort, within two weeks of receipt. (This is the only documentation for salary charges!) Secure written approval for changes, i.e. budget changes and no cost extensions, if required, prior to incurring costs. Principal Investigators should address requests for changes to the funding agency's grants officer (rather than the program officer) and obtain the countersignature of Sponsored Research. A no cost extension or continuation must be requested at least 30 days before the project end date. The fact that funds remain at the end date is not sufficient justification for a project to remain open, without an extension or continuation. Obtain the final report and final invoice from consultants and subcontractors. Provide Project Accounting with documentation for cost sharing in accordance with award requirements. For salary cost sharing: required documentation includes names, dates, percent of effort, accounts and total salary; for non-salary cost sharing; required documentation includes vendor name, purchase order number, account number, voucher number, as well as date and amount paid. Justify and document cost transfers (reallocations) in accordance with University reallocation policy. 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. Project Investigators must be able to explain the rationale for procurement of goods and services. Thirty days before the project end date: Cancel outstanding requisitions and blanket orders, as appropriate Transfer payroll from the grant/contract to another account to terminate the appointment(s) Transfer phone line charges to ongoing accounts or terminate service Provide Project Accounting with detailed disposition of outstanding charges, i.e. commitments not recorded, other outstanding purchases, payroll transfers, cost transfers and other adjustments. Either the Principal Investigator or Departmental Assistant must agree with Project Accounting on final costs. Provide Project Accounting with a detailed disposition of all equipment purchases that the Sponsor retains title to for end-of-project Sponsor equipment reporting purposes. Closeout of Projects: Minimum of Sixty (60) days prior to the grant end date: Principal Investigator shall meet with Project Accounting to discuss the status of the award. Review all expenditures -- salaries, fringe benefit reconciliation, and indirect cost reconciliation. If there are budgetary restrictions, check variances from budget to actual expenditures for non-compliance. Project ending balance. Request necessary budget revisions, no-cost extensions or continuations from the Sponsor through Sponsored Research. Submit requests through Sponsored Research. Coordinate with Project Accounting the receipt of any subcontract closeout documents. Notify any subcontractors of the deadline to submit final invoices. Minimum of Thirty (30) days prior to Termination of Award: Prepare all necessary payroll authorizations to transfer expense to another funding source, or terminate personnel on award effective the last day of the award. Follow-up on all outstanding purchase orders. Contact delinquent vendors to submit invoices to the Controller's Office on valid commitments to expedite closeout. Cancel all invalid outstanding commitments by contacting the Purchasing Department Contact Telecommunications in writing to notify them to change account numbers being charged. Gather all cost-sharing/matching detail delineated in the proposal which Project Accounting is required to report to the agency. This includes names, account numbers, dates, percentage of salary, and other backup (for non- salary matching). Follow-up with the Department Chair to ensure all effort reports issued to date on the award have been completed and submitted to Project Accounting. Thirty (30) Days after termination of the award: Review all expenses after termination date to determine allowability. Prepare and submit to Project Accounting a journal entry removing unallowable expenses. The transfer may also be accomplished by memo. Contact Project Accounting to finalize costs on the award. Ninety (90) days after termination of the award: Review final financial report, contact project accounting for any discrepancies.