The University of Chicago
The University of Chicago

Local Business Center, Division of the Physical Sciences

Post-Award

Creating Accounts

The Financial Administrator will normally wait for notification from URA that the proposal has been awarded before creating the account(s) for the award. Awards require more than one account if the following apply:

  • Cost-sharing
  • On and off-campus expenses or other spending categories that carry different indirect cost rates
  • Out-going subcontracts
  • Multiple projects under the grant that each have their own budgeting requirements

The Financial Admininistrator will establish all of the necessary accounts based on the parameters of the award and communicate them to the PI.

Under certain circumstances an account can be established before the award has been issued or accepted by the University. This is called an “advance account.” These should be reserved only for special circumstances and require prior approval from Financial Services. Any spending made before the award has been issued is done at the University’s risk. If the award is not funded, the funding agency will not reimburse the University for any pre-award costs incurred.

Funding

Notice of funding for an award is usually issued via the original award document and followed by additional amendments. The timing will vary according to the terms of the award. The financial adminitrator will budget the funds into the appropriate account(s) only after the notice of funding has been received by the University.

For Federal Demonstration Partnership (FDP) awards, balances can be carried over to the next project year without prior approval. For non-FDP awards, consult the award documents.

Funding for successive years can and most likely will be witheld by the funding agency until any required progress reports from the PI are filed. It is the PI’s responsibility to keep abreast of reporting deadlines.

Payroll

See Employees & Payroll

Spending

Most of the rules regarding award spending are covered elsewhere (see: Buying & Paying, Reimbursements ,Employees & Payroll). However there are a few basic points to keep in mind…

  • The PI is ultimately responsible for all expenses on an award. While the Financial Administrator is responsible for ensuring that spending is conducted in accordance with University and agency guidelines, the PI must be able to justify every expense as appropriate and necessary for the award.
  • The budget approved by the funding agency should be followed as closely as possible. However, there are always contingencies that arise during a research project that could impact the nature and rate of spending. Many federal awards are part of the Federal Demonstration Parnership (FDP), which means (budgetwise) that the PI is allowed to make minor adjustments to the budget as needed to accomplish the original goals of the project. However, approval from the funding agency is required if the scope and aims of the project are changed or if a substantial amount of the budget is being diverted from its original purpose. With non-FDP awards, the PI should consult the program officer before making budget changes. The program officer should always be consulted before hiring people for positions not included in the approved project budget.
  • Pre-award spending is allowed up to 90-days before the start date of the award on FDP awards. Expenses can be charged to an award up to 30 days after the end date of the award only if those expenses were incurred before the award ended (e.g. for an award ending on May 31, an invoice for an item purchased before May 31 can be paid from the award until June 30).

All expenses on an award will be either on-campus or off-campus. The two types are subject to different indirect cost rates on federal awards. For greater detail about these expenses, see the 1981 memo from William Hogan.

Annual Effort Certification Statements

Every Fall quarter, the University generates annual effort certification statements detailing both monthly and bi-weekly employee effort charged to sponsored awards during the previous fiscal year (July 1 – June 30). Effort is calculated based on the percentage of a person’s income charged to an account. The statements are received by the LBC and distributed to the PIs and/or department administrators depending on each department’s policy.

PIs must certify the accuracy of the percentage of effort charged to their grants by signing these documents in a timely fashion or by indicating their review and approval of the documents via email. The deadlines will be communicated by the Financial Administrator.

The annual effort certiciation process is a critical part of the federal award process. Failure to complete the certifications in a timely fashion can trigger an audit finding during our annual internal audit, which can trigger a series of additional audits from a number federal agencies.

Transfers

Occasionally, expenses are charged to an incorrect account. Financial Administrators can correct these errors via expense transfers. Financial Administrators can often identify some of these problems themselves, but certain transactions (e.g. recharges, telecom bills) are difficult for a Financial Administrator to identify as a problem. Thus it is very important for PIs to periodically review their account activity and identify any unusual transactions so that errors can be spotted and corrected in a timely fashion. Expenses more than 90-days old require department and dean’s office approval. Very late transfers may require extensive explanation about why they were not identified and corrected sooner.

Staying informed

The PI should speak with his/her Financial Administrator to establish a preferred method for account updates. The Financial Administrator is capable of producing a variety of reports regarding account balances, transaction histories, and payroll. These reports can be produced on-request or on a regular schedule.

Progress Reports

Most awards have reporting requirements. Financial reporting is performed by Financial Services. Project/progress reporting is typically performed by the PI. For federal awards, annual progress reports are due 30-days before end of the project year. The next year’s funding can be delayed until these annual reports are filed. Final project reports are due no more than 90-days after the end of a federal award. The PI should consult the program officer if guidance regarding the content/scope of the report is needed. Some awards my require different reporting schedules, which are detailed in the award document or in the solicitation notice. If neither the solicitation nor other program documentation indicate a specific schedule for progress reports, it is good practice to assume that they are due 30-days before the beginning of the next project/budget year.

George Herbert Jones Laboratory

PSD LBC Main Office

Jones Laboratory: 5747 S. Ellis Avenue, Chicago, IL 60637

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Eckhart Hall

PSD LBC Satellite Office

Eckhart Hall: 5734 S. University Avenue, Chicago, IL 60637

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Gordon Center for Integrative Science

Chemistry Business Center

Gordon Center for Integrative Science: 929 E 57th Street, Chicago, IL 60637

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