Module 4 Project Management

1The Office of Research Services The Office of Research Support Services

REVISED AUGUST 28, 2007

Module 4Project Management

Sponsored Programs at Penn



Project ManagementAgenda

• Establishing the Project Environment

• Managing Monthly

• Communication

• Monitor Expenditures

• Cash Management



Roles and Communications• Report monthly to PI• Communicate regularly with ORS

– ORS represents the University externally for all sponsored projects

– Financial reports, cost sharing, delinquent sponsor payment

– Programmatic changes– Assesses allowability of costs

• Don’t surprise the sponsor



Communicate with PI• Personnel

– Establish payroll distribution• Establish level of effort anticipated for each

individual on project• Subcontracts

– Confirm amount; inform ORS• Restrictions on spending• Cost Sharing



Communicate with ORS• Inform sponsor via ORS of project changes• Monitor subcontractee

SPP #2131, #2135 Subrecipient Monitoring policies

• ORS Accountant– Cost sharing – Verify payments– Allowability of costs during Post Award period

• ORS Contracts Administrator– Allowability of costs during Pre Award period– Extensions and other project changes

http://www.finance.upenn.edu/vpfinance/fpm/2100/2131.asp

http://www.finance.upenn.edu/vpfinance/fpm/2100/2135.asp



Support the Project• Work with PI on on-going basis• Ensure that interim reports &

proposals are submitted on time• Disclose Inventions and Patents• Prepare for Progress Reports and

Non-Competing Continuations



Establishing the Project EnvironmentPayroll Set-up

• Identify who belongs on distribution• Identify amount of funding and %

effort• Distribution Stop Date s/b set to the

Account End Date• Salary Encumbrances are calculated

through the Current Budget End Date or Distribution Stop Date (whichever is earlier)



Procurement• Ben Buys Commodity Matrix

– Methods of Purchasing– When should C-1, C-1A, C368,

Purchase Order, or P-Card be used• Competitive Bids

Required on aggregate purchases > $5,000 unless purchase is with a University Contract Supplier or with a supplier participating in the Penn Marketplace.



Issues Surrounding Specific Expense Categories



Equipment• Must be necessary for project

purposes – During the award period

• Is not reasonably available for use elsewhere in the University

• Award notice does not constrain equipment purchases



Equipment (cont.)• Obtain necessary bids

– Or have justification for sole source purchase

• Document whether equipment is– Government owned – Government furnished

• Disposition after project end – Know sponsor regulations



Travel

• Determine allowability on project

• Justify and document changes if not in proposal



Foreign Travel• Travel must be included in proposal or

otherwise be allowed by sponsor• Department must maintain

documentation in the file that supports the trip’s purpose

• Foreign air travel paid with federal funds must be on US-flag air carriers– Limited exceptions



Foreign Travel• Exceptions, which must be documented, generally

include:– US-flag air carrier does not go to destination– Total trip time extended more than 24 hours– Lay-over extended more than 6 hours– Foreign carrier eliminates 2 or more changes– On short trips: US-flag air carrier would double travel time

• Exceptions can be found at GSA Travel Regulations (41CFR301-10.135-143)– www.access.gpo.gov/nara/cfr/cfr-retrieve.html#page1



Consultants• Evaluate: Consultant, Employee or

Subcontractor?– Use C-12 Independent Contractor

Determination & Certificationhttp://www.finance.upenn.edu/comptroller/tax/contractor_certif.shtml• Consulting agreement completed and

forwarded to ORS for approval & signature

http://www.finance.upenn.edu/comptroller/tax/contractor_certif.shtml

http://www.finance.upenn.edu/comptroller/tax/contractor_certif.shtml



Consultants (cont.)• Document role of consultant

– Needs to be working towards the goals of the project to which he/she is charged

• Review sponsor’s guidelines for consultants – Ensure any required approvals are

obtained– Consultant rates may be limited



Purchases• PI approval process for purchases• Assess allowability, allocability and

reasonableness• Verify budget and availability of funds• Procure bids• “Buy American” on federal awards

when possible • Don’t buy capital equipment at end of

project



Service Centers• Definition:

– A department or functional unit within a department, which performs specific service for a fee

Examples: Cell Sorting facilities, Resonance Imaging facilities, and Animal Care facilities



Service Centers (cont.)• ORS responsible for review &

approval of rates• Services provided charged based

actual use of services• Charges for services allocated

monthly -Financial Policy #2115 University Service Centers



Service Centers (cont.)• Make sure Service Centers use

correct fund account• PI & BA should review Service

Center charges regularly– The BA may not know what services

were provided, or if the amount charged is appropriate



Manage Monthly• Plan expenditures in advance

– This will make the project easier to manage throughout life of project

• Run and analyze appropriate reports– Financial Policy #1402.5 Monthly Closings/Reporting

• Send detailed reports to PI



• Remove unallowable and wayward charges

• Compare expenditures to projections• Manage changes through full system

– Changes in award value affect payroll– Changes in subcontracts or equipment

affect F&A charges

Manage Monthly (cont.)



Manage Project Changes Proactively

• Use proposal as “home base”• Anticipate necessary changes

– Contact ORS for approval– Get sponsor approval through ORS– Change of scope or effort

• Plan ahead for extensions



Monitor Expenditure Rates• Sponsors question unusual

expenditure rates– Have we changed scope of work?– Are we still breathing?

• Communicate with Sponsor (cc ORS)



Cost Transfers• The transfer of costs to sponsored projects

where the costs initially had been incorrectly charged to another account. Any cost transfers that occur need to be properly justified and documented.– University Financial Policy Number 2113

Cost Transfers and Payroll Reallocations states "Cost transfers must be prepared and submitted within 90 days from month end in which the transaction appears on the fund." Failure to adhere to this policy may result in the University disallowing the transfer which would result in a write-off to the administering department.

http://www.finance.upenn.edu/vpfinance/fpm/2100/2113.shtml



Cost Transfers• Must be an allocable, allowable

and justified charge to the particular award

• Department must maintain documented justification for transfer

• Must be made within time constraints



Cost Transfer Principles• Cost transfers are for correcting

legitimate ERRORS• Cost transfers should NOT be used as a

means of managing cash flow• Project funds are NOT interchangeable

– Integrity of each grant account must be maintained

• Allowability of costs must be maintained



Cost Transfers• Documentation

– Supported by full explanation and justification, as well as a certification of the propriety of the transfer

– Explanations such as “to correct error” or “to transfer to correct project” are not sufficient

– Approval can be documented by• PI signature• Printed e-mail messages from PI



Cost Transfer “Red Flags”• Transfers made in excess of 90 days

after the original charge• Transfers without a full explanation• High volume of transfers • Timing and “route” of transfers• Late transfers to funds with unexpended

funds• Transfers from funds with overdrafts to

other 5 fund(s)• Transfers between funds with scientific overlap



Advance Accounts for Continuation Awards

• Recommended for non-competing renewals requiring new fund #’s for each period

– Department requesting the advance account bears the risk of having to fund any costs incurred if the funding never materializes



Monitoring Accounts Receivable• For Letter of Credit awards, check revenue• On Letter of Credit, confirm that PBIL is

correct• Contact ORS to address payment problems

with sponsors– Departments should review AR and contact ORS

regarding aged receivables of concern• For awards on payment schedule, contact Bob

Speakman• For all other awards, contact Gokila Venkateswaran



Checks, Payments and Project Budget Increases

• Hand carry check to ORS immediately, with project identification – Do not deposit check

• Should AIS be increased because of check?



Run and Review Reports• BEN Reports

– 102.ORG – Summary CNAC-ORG-FUND level– 115.ORG – Fund Summary– 133.ORG – Due to Close– 134.ORG – Summary of Final Expenditure Report

• Data Warehouse– Fund Summary– Org Summary– Corporate Documents

• Payroll• Correct Errors



Reporting Tools“There are so many reports I’m not sure where to look first.”



GRAM / BEN Reports

•Reports used primarily by Principal Investigators

•Reports represent a Current Budget Period perspective

•Not easy to determine PJTD Numbers or amount to close out at (other than Budget Available)

•Critical for Operating Budget to be posted to the Budget Period Start

GRAM – The online PI view



•Actual Spent represents Current Budget Period Only•Further Detail can be clicked on, but none is available for Prior Budget Periods



Management of All Grants in ORGBUSINESS OBJECTS

ORG Summary.rep by Fund, PI, Acct End, receivables, overdrafts, funds freezing, late/due FSR’s, Analysis of expired funds, Illegal object code charges, possible F&A direct charged to Fed grants, payroll compared to budget.Grantmonitor.rep PBIL/PBUD/Budget, NCC Due, Awards Due, Revenue Check, Overdrafts (active and expired), Federal Cash, CT Cash, Residual Balances, ReceivablesSubbudgets.rep our charges to othersOtherorgschgs.repORGpersonnel.rep all current distributionsPaylate.rep funds with pay after terminationAward Analysis- Award Date.repPT-Proposals.repJE inquiry (by batch between dates).repFY Grant ORG Expense Analysis.repEffort Report – Home Dept ORG.repObject code by fund – posted org.repObject code by fund – detailAIS (full search).rep

BEN FINANCIALS

132.ORG List of Terminated G&C Funds133.ORG List of G&C Funds Due to Close138.ORG Frozen Fund List201.SCH PJTD Rev/Exp for G&C/URF202.SCH YTD Rev/Exp Totals for Funds211.SCH PJTD Rev/Exp Outline for G&C/URF212.SCH YTD Rev/Exp Outline for G&C/URF301.BUD Budgetable Amount - Grants/Contracts306.BUD Negative BBA ORG/FUND/CREF PJTD



Fund Level ManagementBUSINESS OBJECTS

fundsummary.rep summary by ORG/CNAC SNAP/NCC estimated unobligated balance

Fundsummaries for RESP ORG.rep

Fund Detail.rep monthly matrix all expense monthly matrix personnel paid

Effort Report – Fund.rep

GRANT REPORTS.rep PI friendly & monthly payroll and expense detail

GRANT REPORTS –PI.rep

GRANT REORTS – Resp Org.rep

BEN FINANCIALS

102.ORG Summary G&C by CNAC/ORG/FUND103.ORG Summary G&C by CNAC/ORG/FUND/CREF115.ORG Grant Fund Summary Report130.ORG PI Report by CNAC/ORG/FUND134.ORG Summary of Final Expenditure Report (available for grants in adjustment period)137.ORG Grant/Contract Budget Period Summary



Expense DetailBUSINESS OBJECTS

Fund Detail.rep Payroll by Obj, by Person,Exp Detail by Object, Org, Acct Period, P.O./UserFund Detail – PI.rep monthly matrix of personnel paid on PI grantsPayroll.rep (any fund any period of time) variations include: All grants of PI All grants of Resp OrgPersonnel.rep (any person, any period)Personnel-one (any person’s current distrib)Detail.rep variations include: All grants of PI All grants of Resp ORG subcontracts object special budget operating budget cash depositsEncumbrances(Fund).repWaywards.rep

BEN FINANCIALS

150.ORG Detail by CNAC/ORG/FUND151.ORG Detail by CNAC/ORG/FUND/CREF152.ORG Detail by CNAC/ORG/CREF153.ORG Detail by CNAC/ORG/FUND/PROG155.ORG Detail Extract156.ORG Detail by CNAC/ORG/FUND/PROG/CREF160.ORG Account Analysis with payables detail163.ORG Open Encumbrances Report301.BUD Budgetable Amount - Grants/Contracts304.BUD Negative BBA ORG/FUND YTD305.BUD Negative BBA ORG/FUND/CREF YTD306.BUD Negative BBA ORG/FUND/CREF PJTD315.BUD Posted Budget Journal with Exceptions507.GA Posted Journal Activity Report508.GA Unposted Journal Activity Report510.GA Detail Transaction by OBJECT by ORG



Your assignment• Full documentation of the Business Objects Queries

is available at:http://www.upenn.edu/computing/da/dw/financial_queries.html

Select “Grants Management”

• While we will discuss and give samples of some of the more popular reports today, it is essential that you GO BACK TO YOUR OFFICE AND PLAY WITH THE REPORTS!!! Decide what tools/reports work best for you and your investigators.

http://www.upenn.edu/computing/da/dw/financial_queries.html

http://www.upenn.edu/computing/da/dw/financial_queries.html



ORG Summary.rep



ORG Summary - Analysis of Expired FundsWhy isn’t my fund disabled?



ORG Summary – possible F&A



Fundsummary.rep- Estimating the Unobligated Balance

Make sure the formula toolbar is

visible and checked under View Toolbar.



Grant Reports.rep



Grant Reports.rep



Identifying Waywards – 115.ORG

The 115 shows a possible wayward charge from ORG 4227 Cardiology. To obtain the detail of the charge a 15X.ORG report can be run entering the ORG making the charge in the Accounting Period the charge was made.



Otherorgschgs.rep & Waywards.rep



Effort Report - Fund



Effort Report - Fund



In Summary• Award must be reviewed on a

regular basis• Communication is vital to the

proper administration of the award• When you are not sure, investigate

and ask• If an award is properly managed,

the closeout process is very simple



Questions???

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