Introduction

• Guy Narine• Manager, Newark Grants Office• Phone: (973) -353-1335• Fax: (973) –353-1536• Email:

narineg@andromeda.rutgers.edu• Date: 12/08/04

Reading and Interpreting the Online Financial Information System (OFIS)Monthly Report and Reconciling it with the Department’s Shadow System

Objectives

• To make financial monitoring of grants and contracts simpler, less stressful, less tedious and more useful.

• To provide you with information on how to manage and administer grants and contracts efficiently and effectively.

The Life Cycle of a Grant or Contract

• Pre-Award Process- Office of Sponsored Programs

• Grant/Contract Awarded• Post-Award Process- Newark Grants Office • Invoicing and Reporting• Close Out Process• Audit and Retention

What should I do when I receive notification that my Grant or Contract has been awarded?

• Contact Office of Sponsored Programs immediately (if Office of Sponsored Programs did not notify you).

• Wait for an account number and an introductory letter from Newark Grants Office. Get a copy of the agreement.

• Upon receipt of the introductory letter, verify that budget figures and items on OFIS match the agreement.

• Ensure personnel budgeted to be paid from grant/contract are being paid at the correct effort percentage.

• If PI wants to re-budget, check grant/contract terms and conditions to ensure that he/she is authorized to do so.

• Review and reconcile your accounts with the Grant Budget Reports (GBRs) on a monthly basis.

What is a Reconciliation?

• It is an act of accounting for a difference between two totals (for example, in our case, it is the balance in OFIS and the balance in your department’s shadow system).

• The difference may be a sum of reconciling items.

What are reconciling items?

• Reconciling items are transaction items accounted for in one system and not in the other.

1) Account Balance as of 11/30/04 on OFIS: Budget $XXX Less: Expenses to date $XXX Less: Commitments $XXX

2) Account Adjusted Balance based on your Shadow System:

Account Balance arrived at in 1) above $XXX Plus/Less: Adjustments for

Reconciling items $XXX Less: Good Commitments $XXX

Some Common Reconciling Items are:

• Payroll charges and adjustments;• Staff Benefits;• Purchase Orders not processed by the system;• Invoices submitted to Disbursement Control

to be processed for payment but not paid to date;• F & A Costs;• Projections for standard recurring charges;• Subcontract amounts not committed.

• Payroll reallocation for $1,500 to account 420XXX to be processed;

• Calculate Fringe Benefit (F/B), given F/B at 32.5%;

• Purchase Orders for $1,000 processed by department not reflected in the OFIS System;

• Invoices submitted to Disbursement Control for $500 not shown in OFIS;

• Calculate F & A, given current rate at 55.5%.

Reconciling Transactions

Calculations

• Fringe Benefits: $1,500 @ 32.5% = $488

• F & A Costs: $3,488 @ 55.5% = $1,935

RUTGERS, THE STATE UNIVERSITY OF NEW JERSEYDivision of Grants and Contract Accounting (1) Run: 12-07-04SAMPLE GRANT BUDGET REPORT Page: 3456Month Ending: 11-30-04 D/C: 12

Accountant: GN Rochelle WilliamsAccount#4-20XXX NSF SBR 01-00892 P.I. :James Roberts Project Dates: 1-1-03 - 12-31-05

SUB DESCRIPTION RPO REF CODE ORIGINAL AMOUNTS AMOUNT BALANCECODE VENDOR XREF NO DATE RELEASE NO BUDGET TODATE COMMITTED (DEFICIT)

1200 Regular employees 6,000 6,0001500 GA salaries 1/18 pr011803 10,000 1,000 9,000

TOTAL SALARIES AND WAGES 16,000 1,000 0 15,000

1710 Fringe Benefits 1,450 230 1,220 0TOTAL FRINGE BENEFITS 1,450 230 1,220 0

2150 Chem/Lab Supplies 1,500 0 1,5002160 Supplies RO89532 1/28 VN649355 2,884 200 2,684

TOTAL SUPPLIES 4,384 200 0 4,184

3230 Post Doc - Fellow Ins 3,000 3,000TOTAL POST DOC INSURANCE 3,000 3,000

3520 Domestic Travel 1,000 1,000TOTAL DOMESTIC TRAVEL 1,000 1,000

7260 Eqipment > $5,000 12,731 12,500 231TOTAL EQUIPMENT 12,731 12,500 0 231

3700 Subcontract < $25,000 25,000 25,000 03710 Subcontract > $25,000 37,000 37,000 0

TOTAL SUBCONTRACT 62,000 0 62,000 0

8450 Post-Doc Fellow 1/19 pr011803 29,000 2,000 27,000TOTAL POST DOC STIPENDS 29,000 2,000 27,000

8800 Fac and Admin Costs 953 1/31 000112 26,547 794 25,753 0TOTAL INDIRECT COSTS 26,547 794 25,753 0

ACCOUNT TOTAL 156,112 16,724 88,973 50,415

Date: 12/06/04Description: NSF SBR 01-00892 AS OF 11/30/04 (2)PI: James Roberts ACCOUNTING FOR RECONCILING ITEMSProject Period: 1/1/03-12/31/05 A B C D (1) E F (2) G H (3)SUBCODE DESCRIPTION BUDGET EXPENSES AMOUNT BAL/(DEF) RECON. ADJ. EXPENSE COMMIT.ADJUSTED

ON OFIS COMMIT. ON OFIS ITEMS TOTAL BALANCE1200 Salaries Regular 6,000 6,000 1,500 1,500 0 4,5001500 GA Salaries 10,000 1,000 9,000 1,000 0 9,0001250 Student Wages 0 0 0 01290 Other compensation 0 0 0 01710 Fringe benefits 1,450 230 1,220 0 488 718 0 7322150 Chem/Lab Supplies 1,500 0 1,500 500 500 0 1,0002160 Supplies 2,884 200 2,684 1,000 1,200 0 1,6843200 Copy Cost 0 0 03230 Post Doc Fellow - Ins 3,000 0 3,000 0 3,0003520 DomesticTravel 1,000 0 1,000 0 1,0003700 Subcontract < $25,000 25,000 0 25,000 0 25,000 03710 Subcontract > $25,000 37,000 0 37,000 0 37,000 07260 Equipment > $5,000 12,731 12,500 231 12,500 2318450 Post Doc Fellow 29,000 2,000 27,000 2,000 0 27,000

Total Direct Costs 129,565 15,930 63,220 50,415 3,488 19,418 62,000 48,147

8800 Fac and Admin Costs 26,547 794 25,753 0 1,935 2,729 13,875 9,943

Account Total 156,112 16,724 88,973 50,415 5,423 22,147 75,875 58,090

(1) Bal (Def) on OFIS as of 11/30/04: A - (B+C) = D

(2) Adjusted Expense Total: A - (B+E) = F, with dept. additional reconciling items, the sub total as of 11/30/04 = Adj. Expense Total (F)

(3) The Final Actual Adj. Balance: A - (F+G) = H. The G here includes insuring that the commitments taken into account are the " Good Commitments".

Projections

• Standard recurring charges e.g. payroll charges, computing or telephone charges, etc;

• Staff Benefit charges on above payroll expenses, if applicable;

• Good commitments;• Adjustments;• F & A Costs on the above items, if applicable.

Projection for Standard Recurring Charges:1) GA, Thomas Brown, is to be paid $1,000.00 per month for 3 months equals $3,000

2) Fringe Benefits @ 23% = $690

3) F & A Costs at 55.5% on $3,690 = $2,048

ACCOUNT 4-20XXX Date: 12/06/04Description: NSF SBR 01-00892 (3)PI: James Roberts ACCOUNTING FOR PROJECTIONSProject period: 1/1/03-12/31/05 ---

SUB DESCRIPTION BUDGET EXPENSES AMOUNT BALANCE PROJ. ADJ. EXPENSE COMMIT. ADJUSTEDCODE PER OFIS COMMIT. (DEFICIT) TOTAL BALANCE

1200 Salaries Regular 6,000 0 6,000 6,0001500 GA Salaries 10,000 1,000 9,000 3,000 4,000 0 6,0001250 Student Wages 0 01290 Other compensation 0 01710 Fringe benefits 1,450 230 1,220 0 690 920 0 5302150 Chem/Lab Supplies 1,500 0 1,500 0 0 1,5002160 Supplies 2,884 200 2,684 0 200 2,6843200 Copy Cost 0 03230 Post Doc Fellow-Ins 3,000 0 3,000 3,0003520 DomesticTravel 1,000 0 1,000 1,0003700 Subcontract < $25,000 25,000 0 25,000 0 25,000 03710 Subcontract > $25,000 37,000 0 37,000 0 37,000 07260 Equipment > $5,000 12,731 12,500 231 12,500 2318450 Post Doc Fellow 29,000 2,000 27,000 2,000 27,000

Total Direct Costs 129,565 15,930 63,220 50,415 3,690 19,620 62,000 47,945

8800 Fac and Admin Costs 26,547 794 25,753 0 2,048 2,842 13,875 9,830

Account Total 156,112 16,724 88,973 50,415 5,738 22,462 75,875 57,775

ACCOUNT 4-20XXX Date:12/06/04 (4)Description: NSF SBR 01-00892PI: James Roberts SUMMARY OF RECONCILING ITEMS AND PROJECTIONSProject period: 1/1/03-12/31/05 ---SUB DESCRIPTION BUDGET EXPENSES AMOUNT BALANCE REC. ITEMS ADJ. EXP. COMMIT. ADJUSTED

CODE PER OFIS COMMIT. (DEFICIT) & PROJ. TOTAL BALANCE1200 Salaries Regular 6,000 0 6,000 1,500 1,500 0 4,5001500 GA Salaries 10,000 1,000 9,000 3,000 4,000 0 6,0001250 Student Wages 0 0 01290 Other compensation 0 0 01710 Fringe benefits 1,450 230 1,220 0 1,178 1,408 0 422150 Chem/Lab Supplies 1,500 0 1,500 500 500 0 1,0002160 Supplies 2,884 200 2,684 1,000 1,200 0 1,6843200 Copy Cost 0 0 03230 Post Doc Fellow-Ins 3,000 0 3,000 0 3,0003520 DomesticTravel 1,000 0 1,000 0 1,0003700 Subcontract < $25,000 25,000 0 25,000 0 25,000 03710 Subcontract > $25,000 37,000 0 37,000 0 37,000 07260 Equipment > $5,000 12,731 12,500 231 12,500 0 2318450 Post Doc Fellow 29,000 2,000 27,000 2,000 0 27,000

Total Direct Costs 129,565 15,930 63,220 50,415 7,178 23,108 62,000 44,457

8800 Fac and Admin Costs 26,547 794 25,753 0 3,983 4,777 13,875 7,895

Account Total 156,112 16,724 88,973 50,415 11,161 27,885 75,875 52,352

• Amounts should be committed;

• Amounts not committed for new awards call Office of Sponsored Programs;

• Amounts not committed for old awards need to be tracked in shadow system;

• Keep track of number of sub awards, sub award amounts and expenditures to date for each award;

• Generally, the first $25,000 is subject to F & A Costs (unless waived).

Subcontracts

ACCOUNTING FOR SUBCONTRACTSDate: 12/06/04

ACCOUNT 4-20XXX (5)Description: NSF SBR 01-00892PI: James RobertsProject period: 1/1/03-12/31/05 ---SUBCODE DESCRIPTION BUDGET EXPENSES COMMITMENTS BALANCE

1200 Salaries Regular 6,000 1,500 0 4,5001500 GA Salaries 10,000 4,000 0 6,0001250 Student Wages 0 0 01710 Fringe benefits 1,450 1,408 0 422150 Chem/Lab Supplies 1,500 500 0 1,0002160 Supplies 2,884 1,200 0 1,6843200 Copy Cost 0 0 03520 DomesticTravel 1,000 0 0 1,0003700 Subcontract < $25,000 90,000 68,000 22,000 03710 Subcontract > $25,000 220,000 117,000 103,000 07260 Equipment > $5,000 12,731 12,500 0 2318450 Post Doc Fellow 29,000 2,000 0 27,000

Total Direct Costs 374,565 208,108 125,000 41,457

8800 Fac and Admin Costs 62,623 42,517 12,210 7,896

Account Total 437,188 250,625 137,210 49,353

Date: 12/06/04 SCHEDULE OF SUBCONTRACTS (6)

NAME OF SUBCONTRACTOR SUBCODE BUDGET EXPENSES BALANCE

COLUMBIA UNIVERSITY 3700 $25,000 $25,000 $0P.O. # 502273 3710 $48,000 $12,000 $36,000

SUB TOTAL $73,000 $37,000 $36,000CORNELL UNIVERSITY 3700 $25,000 $13,000 $12,000P.O. # 502366 3710 $62,000 $0 $62,000

SUB TOTAL $87,000 $13,000 $74,000UNIVERSITY OF MARYLAND 3700 $25,000 $25,000 $0P.O. # 502489 3710 $110,000 $105,000 $5,000

SUB TOTAL $135,000 $130,000 $5,000UNIVERSITY OF CALIFORNIA 3700 $15,000 $5,000 $10,000P.O. # 502590

SUB TOTAL $15,000 $5,000 $10,000

TOTAL 3700 $90,000 $68,000 $22,000

TOTAL 3710 $220,000 $117,000 $103,000

GRAND TOTAL $310,000 $185,000 $125,000

Date: 12/06/04 SUMMARY OF INVOICES (7)

NAME OF SUBCONTRACTOR SUB AWARD INVOICE # INVOICE INVOICE SUBCODE AMOUNT SUB AWARDBUDGET DATE AMOUNT CHARGED CHARGED BALANCE

COLUMBIA UNIVERSITY $25,000 1 01/12/2004 $9,000 3700 $9,000P.O. # 502273 2 04/24/2004 $28,000 3700 $16,000 $0

$48,000 3710 $12,000 $36,000SUB TOTAL $73,000 $37,000 $37,000 $36,000

CORNELL UNIVERSITY $25,000 1 03/25/2004 $5,000 3700 $5,000P.O. # 502366 2 06/24/2004 $8,000 3700 $8,000 $12,000

$62,000 3710 $62,000SUB TOTAL $87,000 $13,000 $13,000 $74,000

UNIVERSITY OF MARYLAND $25,000 1 02/20/2004 $22,000 3700 $22,000P.O. # 502489 2 05/26/2004 $35,000 3700 $3,000 $0

$110,000 3710 $32,0003 08/15/2004 $60,000 3710 $60,0004 09/30/2004 $13,000 3710 $13,000 $5,000

SUB TOTAL $135,000 $130,000 $130,000 $5,000UNIVERSITY OF CALIFORNIA $15,000 1 07/21/2004 $5,000 3700 $5,000 $10,000P.O. # 502590

SUB TOTAL $15,000 $5,000 3700 $5,000 $10,000

$90,000 3700 $68,000 $22,000$220,000 3710 $117,000 $103,000

GRAND TOTAL $310,000 $185,000 $185,000 $125,000

Fringe Benefits

• FY05 Rates

– 1200 Salaries- Regular Employees 32.5%

– 1230 Wages of Labor 9%

– 1250 Student Wages 0%

– 1290 Other Compensation 7.5%

– 1370 Post Doctoral Associates 27.5%

– 1500 Graduate Assistants 23.0%

Expense Subcodes and Corresponding Payroll Position Codes

Subcode Position Code

1200 Salaries- Regular Employees 001-799 & 926-9681230 Wages of Labor 9911250 Student Wages 9961290 Other Compensation 9921350 Faculty Summer Compensation 9851330 Summer Employment – 10 mths 9921370 Post Doctoral Associates 900-9251500 Graduate/Teaching Assistants 984 8450 Training Grants – Stipends 997-998

Recap of what we reviewed today:

• How to read and interpret OFIS?• Basic actions needed upon receipt of a

notice of award.• Reconcile your accounts with the OFIS monthly.• How to project expenses and incorporate

them into your reconciliation?• How to account for Subcontracts?

• Pre award Issues: http://orsp.rutgers.edu

• Post award Issues: http://postaward.rutgers.edu

• Standards for University Operations: http://www.rutgers.edu/oldqueens/standards.html

Websites

QUESTIONS?