Post-Award: Financial Management
Post-Award: Financial Management
“Assign Costing Allocations” is the task in Workday used to allocate salary to a financial account based on effort committed to a specific project or activity. A Costing Allocation should total 100% of a person’s effort and Institutional Base Salary, accounting for any required salary caps and overages, as well as cost share, on sponsored projects.
Important considerations for Costing Allocations:
- Clinical faculty’s full IBS often includes a salary split between the Academic School (“UVA salary”) and the University Physicians Group (“UPG salary”). Salary support on sponsored projects can only be scheduled against the portion of salary from the Academic School, therefore, the allocation percentage must be calculated using only the UVA salary base. [Powerpoint examples]
- DHHS awards impose a salary cap [link to Building a Budget] equivalent to the current Federal Executive Level II Salary. Salary support on DHHS sponsored projects for personnel whose IBS is greater than the salary cap can only be scheduled as a percentage of the salary cap. The difference between the IBS and the salary cap (“salary over the cap” or “SOC”) must be allocated to a non-sponsored financial account.
- Cost Sharing [link definition] is utilized when effort is committed to a sponsored award that is greater than the salary covered by that award. Costing Allocations must include separate distribution lines for each source of funding, including the sponsored project and any/all cost sharing sources.
All personnel recieve a defined Institutional Base Salary, which is often paid from multiple funding sources. DHHS awards impose a salary cap [link to Building a Budget] equivalent to the current Federal Executive Level II Salary. When an individual has paid effort on a DHHS award and their IBS exceeds the DHHS salary cap, their salary must be calculated as a percentage of the cap instead of full IBS. The institution is then responsible for the difference between the cap and the full IBS, known as Salary Over the Cap (SOC), which must be paid from a non-sponsored account.
EXAMPLE
Institutional Base Salary: $300,000
DHHS Salary Cap: $221,900
Effort: 10%
Amount charged to DHHS grant:
$221,900 * .10 = $22,190
Salary Over the Cap to be covered by a non-sponsored account:
($300,000 * .10 = $30,000) – ($22,190) = $7,810
Resource: Salary Over the Cap – Costing Allocation Calculator
[Post Award: Do we have a QRG for scheduling SOC in a Costing Allocation?]
Cost Sharing [link/definition] is utilized when direct expenses for a sponsored project cannot be covered by that award. For the cost shared expenses a separate grant line (GRxxxxxx) will be established and funded by a non-sponsored account, such as a Gift (GFxxxxxx), Designated (DNxxxxxx), or Project (PJxxxxx). All cost shared expenses must be charged directly to the cost share grant line. Cost sharing should be used sparingly and only when the project scope cannot be adjusted to match the award total.
Payroll Allocation Confirmation (PAC) is the process by which faculty confirm payroll charges and associated effort commitments to sponsored and non-sponsored funding accounts. PAC certifications are completed in the Huron Payroll Allocation Confirmation (PAC) System twice per year, usually in August and February. The process requires faculty to certify all payroll charges on sponsored accounts for which they are the named PI and also to certify their own payroll distribution across all funding sources.
Accounting Journal Entries (JEs) are submitted in Workday to transfer costs for settled Financial Transactions. JEs may be needed for many reasons, including:
- Transferring Internal Service Provider (ISP) charges
- Splitting costs across multiple funding sources (ISPs, Expense Reports, Supplier Invoices)
- Re-allocating student charges (tuition, health insurance)
- Correcting Spend or Revenue Categories
Resource: Create Accounting Journal QRG
Accounting Adjustments are submitted in Workday to transfer costs for settled Financial Transactions when the whole charge is being moved from one funding source to another. This process can be used to transfer costs posted through Expense Reports and Supplier Invoices and also to change Spend Categories on a posted expense.
Resource: Accounting Adjustment QRG
Expenditure documentation must be managed and stored appropriately to support all costs charged to sponsored accounts. Post Award monitoring, audit reviews, and sponsors’ record retention policies require availability and accessibility of relevant documentation to support both standard and non-standard expenses. Many non-standard expenses require approval to be charged to sponsored accounts and these costs and the relevant documentation will be captured as a Costing Exception request in the Huron system. However, most day-to-day transactions
- Non-standard expenses
- Business meals
- Relocation expenses
- Split allocation of general lab costs
- Travel
- Fly America Act
- Travel meals
Task > 90 day notice – Report “Find Award Tasks” > be proactive about upcoming closeouts
Utilizing Award Tasks in Workday > Report “Find Award Tasks” > Attach FSR memo, mark Complete > Sends notification to Post Award
Ensure all expenses have posted
Review Allowability, outstanding obligations, costing allocations
Review F&A > Report “Payroll F&A Reconciliation”; review total budget and direct/indirect imbalance
Workday Reports:
- Open Obligations on Purchase Orders
- Non-Payroll Commitments and Obligations
- Payroll Obligations Composite