This work instruction consists of the following sections:
In order to perform the tasks of this work instruction, proficiency in ASU sytems is required. Training for ASU financial systems is provided by Financial Services and available through ASU’s Training and Development website. training on the following financial items is needed: (Refer to ASU’s Training and Development website.)
Recommended trainings include:
- Workday Financial Management System (in BlackBoard)
- Cash Handling
There are additional trainings for non-financial systems and resources recommended for account monitoring, including:
- ERA Grants
- Sponsored Projects Allowability Job Aid
- Allowable and Unallowable Expenditures Checklist for 2 CFR 200
- RSP 508-01 Charging Direct and Facilities & Administrative Costs to Sponsored Projects
- ASU Dashboards
In order for ASU to be good financial stewards of the sponsor’s funding, all project accounts, including cost sharing, sub-award, and program income accounts, should be monitored and reconciled on a monthly basis. Paying close attention to accounts can avoid under-spending and overspending as well as quickly identifying any charges that may have been mistakenly charged to the account. The Financial Services Policy Manual (FIN 210) requires that all payroll and other expenditures be reconciled monthly for all accounts.
1. Using Workday reports, the unit business manager/research advancement post-award manager or other designated personnel will reconcile all project-related accounts monthly to ensure:
- the accuracy of charges to accounts,
- status of documents, and
- account balances per FIN 203.
2. Review financial reports for accuracy of expenditures and codes on all accounts and take appropriate action to make corrections.
3. Maintain financial records in an audit ready manner. Organize for accessibility and in a way that is easily understandable by anyone who would require access in the event of an audit or the absence of a record keeper per FIN 103.
4. Manage all aspects of unit payroll on a monthly basis. For each person paid each month, the manager must verify that the:
- authorized correct amount has been paid,
- payroll is charged to the correct account, and
- charges are appearing on the correct account.
6. Be timely in taking corrective action when payroll problems are discovered or brought forward for resolution. Note that payroll cost transfers should be made within 90 days of their discovery per RSP 506-02.
Grants awarded by two or more agencies under the Federal Demonstration Partnership (FDP) may be declared interrelated when one or more of the following criteria are met:
- The theoretical approaches are interrelated.
- Studies of the same phenomena are conducted by the same or different techniques.
- Studies of different phenomena are conducted by the same technique.
In addition to the above criteria, the following two requirements apply:
- All or most of the costs would be also be legally eligible for support under the federal appropriates from which the other projects are funded.
- Each sponsor award includes directly or by reference applicable language allowing use of the interrelated project criteria.
If approval for interrelatedness is granted, the unit must establish a reasonable allocation method for the costs incurred on the affected project accounts. For additional information on allocating costs between projects, refer to the Sponsored Projects Allowability Job Aid.
During the monthly review, expenses may be identified as relating to a sponsored account that were improperly charged. When expenses need to be transferred to a sponsored account, follow the process below. When expenses need to be transferred from a sponsored account to a non-sponsored account, work with the business office to determine the unit’s process for transferring expenses.
Important for Audit: Any payroll expense redistribution involving a sponsored account needs to be justified, explaining:
- how the mistake happened, and
- what is being done to make sure it is not repeated.
If a payroll expense is being transferred onto a sponsored account, the justification must include why the expense is reasonable, proper and allocable. A brief description of how the employee is contributing to the sponsored project is appropriate.
According to policy RSP 506-02, cost transfers into or out of sponsored projects should be processed within 90 days after an error is discovered. Since effort reporting is primarily based on payroll expense, it is especially important to process payroll expense redistributions in a timely manner towards the end of an effort reporting period (spring, summer and fall semesters).
Before processing cost transfers, RAs should review the Cost Transfers sitelet to determine the appropriate use of cost transfers and determining appropriate timelines.
Non-payroll cost transfer requests must be initiated in Workday using one of the following methods: Accounting Adjustment, Accounting Journal or Enterprise Interface Builder.
For grant accounts the Accounting Adjustment should be used whenever possible. The use of Accounting Adjustment is recommended for grants because:
- It preserves the transaction history and provides an audit trail that connects the original journal lines to the corrected journal lines.
- Prevents expenses from being transferred more than once
1. An Accounting Adjustment should be used to transfer the full dollar amount of a Supplier Invoice, Supplier Invoice Adjustment or Expense Reports for FY19 and beyond. To change/split amounts or to transfer expenses from FY18 an Accounting Journal must be processed.
2. The unit-level representative with the “Department Accountant” role in Workday will initiate the accounting adjustment in Workday following standard FMS Work Instructions for Creating Accounting Adjustment.
3. The request will then be routed to the person with the “Grants Manager” role in Workday to complete the cost-transfer questionnaire:
3.1. Is the cost being transferred between accounts within the same award?
3.2. What is the reason for the adjustment?
3.3. Describe in detail the expenses that is (are) being transferred.
3.4. Describe the benefit to the project (s) receiving the spend transfer.
3.5. How did the error occur?
3.6. What steps are being taken to ensure this error will not happen again?
4. The request will then be routed to the Award Management Team for approval.
Note: Intra-Award Adjustments processed via an Accounting Adjustment will not route to AMT for approval.
1. An Accounting Journal should be used when changing a transaction amount, splitting the amount and for FY18 expenses.
2. The unit-level representative with the “Department Accountant” role in Workday will initiate the Accounting Journal in Workday following standard FMS Work Instructions to Create Accounting Journal.
3. The request will then be routed to the person with the “Grants Manager” role in Workday to upload the necessary supporting documentation for the request:
3.1. Non-Payroll Cost-Transfer Request Form (ORSPA 510)
3.2. In Workday, use the “Find Journal Lines Report” to look up the transactions in the “Actuals” ledger. Export the results to a printable PDF file. Highlight the transactions you want to transfer.
4. The request will then be routed to the Awards Management Team for approval.
Note: Intra-Award Adjustments requested via an Accounting Journal will route to AMT for approval
In the monthly review of expenditures, payroll expenses may be identified that were improperly charged to the sponsored account, or not charged when they should have been. Due to the implementation of Workday in July 2018, payroll redistributions for FY18 payroll expenses will follow a slightly different process.
Payroll Redistributions for FY18 will need to follow a different process as these cannot be initiated in PeopleSoft. Instead, units will need to:
- secure prior approval from the Research Operations' Fiscal Oversight Team (FOT) and
- create an Accounting Journal in Workday.
Securing Prior Approval from FOT
1. From the RA SharePoint, click on the Payroll Redistribution Request link.
2. To open the form, click on the +New button located on the upper left side of the screen:
3. Fill out all the required fields.
4. Attach: System Generated Report including Fiscal Year, Pay Period End Date, Empl ID, Name, Position Number, Earn Code, From Account and Amount of original distribution. (The Payroll Reconciliation Dashboard provides all this information. If an RA does not have access to this dashboard, they should work with their unit’s HR representative to either provide the report or to process the request.)
5. Hit Submit
6. If the SharePoint form is returned for more information, the RA will need to start a new form to continue the redistribution.
7. Once the form has moved through the approval process (approval of the grant manger/account signer, Research Operations, and the PI) an Accounting Journal may be entered in Workday.
Accounting Journal in Workday
1. Refer to the FMS Work Instructions to Create Accounting Journal to create the Accounting Journal in Workday.
2. Attach a PDF package as backup documentation to the Accounting Journal including the following:
2.1. PDF copy of completed and approved SharePoint Payroll Redistribution Request
2.2. System Generated Report (see specifications above)
3. Accounting Journals in Workday will route to the Award Management Team (AMT) for approval when grants are involved.
Reminder: changes cannot be made to backup documentation once the approval has started in Workday. Accounting Journals for FY18 Payroll Redistributions that do not have the required documentation will be returned to the initiator.
1. Use the payroll expense redistribution process in PeopleSoft to request that Research Operation’s Effort Reporting Team review and approve the transfer.
An instruction manual for the payroll expense redistribution process may be found on ASU’s Financial Services website (Payroll Redistributions) which explains the PeopleSoft security roles required by a user to submit a payroll expense redistribution request, the steps included in the process and document retention requirements. A payroll expense redistribution PowerPoint presentation and quick reference guide are also provided by Financial Services.
2. Financial Services will maintain payroll expense redistribution entries in PeopleSoft for up to seven fiscal years after the transaction has been entered. It is recommended to keep a copy of the redistribution and any backup documentation with the sponsored project documentation.
At times, ERE needs to be adjusted without moving payroll. Redistributions of ERE can only be performed by Financial Services Accountants via “Power Redistributions”. ERE cannot be moved via an Accounting Adjustment or Accounting Journal in Workday. Use the following instructions to determine if 1) an expense is eligible for a power redistribution and 2) how to request a power redistribution.
- Confirm that the ERE in question meets one of the following criteria:
- ERE associated with a payroll redistribution is not accurate
- Power Redistributions cannot be requested or processed to make adjustments that are associated with differences in ERE rate methodologies (i.e.... flat or percentage) on accounts. ERE posts according to the rate of the account from which the associated payroll is being redistributed.
- ERE or Tuition Remission on a sponsored account is unallowable in accordance with the award terms and conditions.
- Determine which accounts will be involved in the correction.
- ERE or Tuition remission cannot be moved to state accounts so adjustment must go to a local account.
Request ERE Power Redistribution
- Contact the Financial Services accountant assigned to the College under which the account housed, and request a power redistribution.
- Include a spreadsheet that shows the associated payroll, by employee, by pay period, with the amount of ERE that actually posted to the account, the amount of ERE that should have posted to the account, the amount that should be adjusted via power redistribution, and what account it will be moved to (where appropriate).
- The Financial Services Accountant will review and prepare redistributions, which will go to the account signer’s queue to approve.
- In the event that the adjustment is not due to a system error (such as moving tuition remission), the Financial Services Accountant may seek Research Operations' approval.
- Review and approve the redistribution once the Financial Services Accountant has processed it.
- Review the expense once it has posted to determine accuracy.
- Follow the procedures for hiring staff, student hourly employees, and faculty using Hiring and Recruitment guides from ASU Business Services.
- Follow the procedures for hiring graduate research or teaching assistants using Graduate Support Staff guides from ASU Graduate College.
- For student stipends, follow the procedures in the Student Stipend Job Aid.
- All units can implement their own internal process to request purchases. At a minimum, this process should include records that capture strong programmatic justification for the expense as well as PI and Workday Grant Manager Approval.
- Using the Sponsored Projects Allowability Job Aid, determine if the expenditure is allowable and that there are enough funds in the account to cover the expense.
- If the answer is no, the item or travel is not allowed on the project. Try to find another solution prior to going to the PI. The assigned GCO and other RA’s in the area are good resources for help.
- If the answer is yes, process the travel or purchase via the appropriate method according to these standards.
- For projects which include subawards, refer to WI-MS-10.
Write on or attach justification for the expenditure to the transaction documentation (e.g..., purchase order, etc.), and retain in the unit’s file, ensuring:
- The proposed expense meets the criteria set forth in the appropriate CAS Guidance tab.
- The expense is allowable, allocable, and reasonable.
- The expense is processed in accord with all ASU policies/processes.
- PI and/or Workday Grant Manager approval (this includes SunRise orders.
- A copy of one of the items below is kept in the unit's file:
POST AWARD EXPENSES WHERE THE EXPENSE WAS INCLUDED IN THE PROPOSAL
- A copy of the approved award, budget, budget justification, or note budget justification page # on the transaction document.
POST AWARD EXPENSES WHERE THE EXPENSE WAS NOT INCLUDED IN THE PROPOSAL
- A copy of the sponsor’s approval, where required (e.g... federal funds).
- An AMT GCO approval as a result of an ORSPA Action Form (OAF) submitted for review and guidance.
- Confirmation that the unit has
- reviewed the expense, and
- ensured the expense meets the requirements of the CAS Guidance tab.
The efficient operation of a sponsored project sometimes makes it necessary to have funds readily available. Sponsored expense advances may be utilized for approved project purposes. The applicable policy for expense advances is RSP 503-02.
To request an expense advance, the employee or the unit’s Expense Data Entry Specialist will need to create a Spend Authorization task in Workday.
Employees requesting expense advances must complete Cash Handling Training.
The Investigator is to perform the following:
- Working with RA staff, check that monthly expenditures, payroll and other, match the project plan. Make note of any discrepancies.
- The RA can use the different reports available in Workday, keeping in mind that unless there are adjustments to future funding for personnel, encumbrances will be associated with the end of the ASU fiscal year rather than the end of the project.
- The RA staff can share with the PI the expected levels of expenditures and balances by period, using iPAR. Differences will require adjustments in subsequent expenditures.
- Working with RA staff, check that monthly expenditures and payroll are accurate. The iPAR tool will help forecast the ending balance of the project. If the project is in a state of over spending or under spending, the tool will aid in simulating changing employee resources and expenditure levels in order to derive an acceptable outcome.
- For projects which include subawards, refer to WI-MS-10.
Note: deadlines which appear in the project plan and alert RA staff to any changes as soon as possible. The summary of important dates should include institutional dates (fiscal year end, deadlines for personnel actions, effort reporting periods and certification deadlines) as well as project specific dates (reports due, fiscal reports due, end dates etc.).
For information about documenting the following expenses, visit the Cost Sharing sitelet:
- contributed effort for hourly and non-exempt employees
- third party cost sharing
- non-personnel cost sharing not direct-charged to a Cost Sharing Companion Account
- Non-Federal Grants as Cost Sharing
Changes/updates to cost sharing commitments can occur for various reasons:
- A proposal was submitted with TBDs and/or other incomplete information.
- An award comes in which requires more cost sharing than anticipated and requires a revised cost sharing budget.
- An award may come in which requires less cost sharing than expected and requires a revised cost sharing budget.
- During the project, circumstances related to committed cost sharing may also change. For example:
- An individual listed leaves ASU or cannot otherwise participate in the project
- An individual is not listed but will contribute to the project
- Effort has increased or decreased for an individual
This list is not meant to be all inclusive but rather illustrative of the types of changes that will require action on the part of the RA. If changes occur:
- Changes to effort should include:
- name and ASU affiliate ID for the individual whose contributed effort is being adjusted,
- effort reporting period affected by the change, and
- ustification to support the change.
- For all other cost sharing budget changes:
- indicate the changes being made, and
- provide a supporting justification.
2. Obtain signature(s):
- PI (The PI’s approval should contain the following statement: “This e-mail constitutes my approval for processing the cost sharing changes requested on the OAF/CSRF. As the Principal Investigator, I understand my project is still obligated to meet its total cost share commitment”
- Chair/Dean (ONLY needed when modifying the total amount of cost sharing committed by the unit/dean to the project.
3. Submit PI approved OAF and CSRF to Notifications@asu.edu.
NOTE: Changes to funding source do not require an OAF nor CSRF. An email to the assigned GCO will suffice.
The method used by OKED to meet the requirements of compensation review in 2 CFR 200.430(i) Standards for Documentation of Personnel Expenses. For instructions for the PI as well as guidance for the RA and unit fiscal staff, please see After-the-Fact Review Report page. The page also includes provides answers to frequently asked questions.
Overrides may be required for sponsored project Workday budget checks and P-card purchases. In order to streamline this process and speed up response from your GCO, use the following standardized processes to request an override.
Workday Budget Checks and Overrides
After Workday transaction fails a budget check, the initiator will be able to request an Override within Workday. The request will route to AMT for approval.
- The override process at J P Morgan Chase can take as long as 2 – 3 hours. Overrides should be obtained prior to attempting to make the purchase.
- Most sponsored P-card restricted items must be approved by the sponsor (usually via the proposal budget justification).
- Information you will need to send to your GCO to obtain a P-card override:
- item(s) being purchased
- estimated total amount of purchase
- grant (account) number
- 1 – 2 sentence justification of the charge (why is it allowable/necessary on this grant)
- To expedite the process, please also include links/excerpts from the proposal budget, sponsor guidance, etc. that support the allowability of the charge.
- name on P-Card and last 4 digits of P-card
- Send an e-mail to your GCO and to email@example.com or your P-card representative.
- Subject: P-Card override Grant (account) number
- Body: Information in item 3 above
- GCO will reply to all recipients with either approval or disapproval.
- If P-card office was included on the e-mail, they will receive the GCO’s approval directly and will process the request. Otherwise forward the GCO approval to the P-card office.
- Working with the PI, the RA should:
- obtain project plan that contains task breakdown structure and associated deliverables;
- obtain most recent project plan that details task progress (relative to the last progress report) and level of completion;
- update project plan with any changes;
- compare stated task completion level to the anticipated completion level described in the original project plan.
The iPAR (Integrated Planning and Reporting) system is the KED-recommended tool for monitoring and forecasting accounts. iPAR pulls financial information from several University data sources into an excel spreadsheet so the user can see all the information in one place. The tool shows budget, expenditures, encumbrances and a forecast both summarized and by expenditure code. It shows expenses as “inception to date” or by fiscal month on the same row so that trends can be seen. It also shows personnel funded from that account or who is set up in PeopleSoft to be funded in the future. It also allows for the simulation of changing resource levels to see a projected ending balance. Training is offered on a monthly basis – users can register at the Research Academy.
- Although iPAR is a great tool for account monitoring and forecasting, it does not provide all the information needed to successfully manage each account. It is very important that the RA is familiar with the budget plan and any spending limitations imposed. Other helpful information to be aware of is sponsor restrictions. It is beneficial to use an award list. Identify any IRB protocols, participant restrictions, and export restrictions.
- If not using a companion cost sharing account, a tracking system must be created to ensure the cost sharing commitments made for the project are on track. These commitments should be reconciled at the end of each effort period to ensure that they are on target with the commitments. (RSP manual states that cost sharing only has to be reconciled annually, but it is easier to do this on a more regular basis because waiting till the project's end may result in being unable to retroactively change the committed effort for an individual).
- Using iPAR, identify individuals, who are or will be, working on the account and forecast expenditures through the end of the project, including ERE at higher rates, and tuition remission, and student hourly employees. It can also help to identify expenditures that must come off the account. Doing this is needed in order to forecast expenditures on the project and ensure the burn rate of the project is accurate.
- Show FTE per staff member per pay period working so effort reports can be accurately.
- Using iPAR, expenses that do not encumber in Workday can be manually forecasted.
- Track participant expenditures and encumbrances for projects in which cash advances are needed and ensure that it is being monitored.
- Track expenses on Subaward accounts.
- Financial reports should be reviewed with the faculty members on a monthly basis and obtain faculty sign off as it is the PI’s responsibility (FIN 203) to review monthly expenditures and identify anything that needs to be moved onto or off the project.
- Send an e-mail reminder to PI of sponsor specific deliverables coming due.
- Send a request to PI requesting a copy of the report.
- Follow up with PI, as needed, to ensure the report is submitted.
- Working with faculty, submit report to sponsor, if not already sent by PI, and retain a copy for the unit's file.
- Forward a copy of the report to the AMT GCO for their file.
- Comply with NIH’s Public Access Policy, which requires scientists to submit final peer-reviewed journal manuscripts that arise from NIH funds to PubMed Central immediately upon acceptance for publication.
An automatically-generated Sponsored Project Notice stating that a project account is ending within 60 days is sent to the PI. Below is additional guidance based on the three scenarios described in the letter.
Additional time and/or funding from the sponsor is expected:
1. Confirm all required deliverables have been submitted to the sponsor. Most sponsors will delay issuing a modification to an award if technical deliverables (i.e... progress reports, drawings) are not submitted on time.
2. Once confirmed that all project deliverables are current, send an email to the unit RA Staff who will coordinate with Award Management (AMT) Grant & Contract Officer (GCO) to request status of the award modification. The assigned AMT GCO will contact the sponsor and notify the RA and PI of status.
3. If the sponsor indicates the award modification will be delayed, the project may need to continue on an At-Risk status. Contact the assigned RA to exercise the at-risk option, when required to maintain continuity of the project. The will complete the ORSPA Action Form (OAF) which will require PI signature/email approval.
4. For projects which include subawards, refer to WI-MS-10.
5. If the project has cost sharing, this is a good time to review the cost sharing with the unit RA staff to ensure the commitments are on are on schedule to be met. The RA staff member will coordinate with the assigned AMT GCO.
No additional time and/or funds from the sponsor but a No-Cost Extension is needed to continue work on the project:
1. Contact the unit RA to request a no-cost extension. The RA will complete the required forms based on receipt of a technical justification to support the request from the PI.
2. If the project has cost sharing, this is a good time to review the cost sharing with your assigned RA staff to ensure the commitment is on track to be met. The RA staff member will coordinate with the assigned AMT GCO.
3. For projects which include subawards, refer to WI-MS-10.
No additional time and/or funds from the sponsor are expected and a no cost extension is not needed to complete the work on the project:
1. Complete the scope of work and prepare the final deliverables for on-time submission to the sponsor.
2. Contact the unit RA to finalize and reconcile all project expenses and encumbrances. All final expenses should be posted and all encumbrances should be cleared on or before the project end date. If expecting expenses to post after the project end date, submit a justification to the unit RA explaining what these purchases were and that they were used within the project period.
3. If the project has cost sharing, confirm that the cost sharing is on track to be met. The RA staff member will coordinate with the assigned AMT GCO.
4. For projects which include subawards, refer to WI-MS-10.
5. Archive project financial and technical records in accordance with the Sponsored Projects Records Retention Schedule.
The RA or BOM may receive a Sponsored Project Notice stating a sponsored account within the unit is ending within 60 days. Below is additional guidance based on the three scenarios described in the letter.
1. Initiate communication with the PI to determine what actions may need to be taken.
2. Refer to WI-EP-130 if the PI would like to request the project account be placed on at-risk status or request a no-cost extension.
3. Perform the following actions:
3.1. Update account fund mapping for payroll to ensure that personnel costs are funded from appropriate accounts once sponsored funding expires. Each pay period, Financial Services has to manually re-map pay which has been mapped to expired accounts to ensure that payroll processes correctly and that all employees are paid. This re-mapping results in posting of pay to RID accounts which may in turn need to be transferred to an appropriate funding source. Proactive updates to account mapping will eliminate time-consuming manual re-mapping by Financial Services and will eliminate processing of payroll redistribution requests by units and Research Operations. To extend account end dates as needed to accommodate delays in funding increments and award notices, refer to WI-EP-130. Ensure that account fund mapping for sponsored accounts which are permanently expiring are updated. Additional details on this process, can be found here.
3.2. Cost sharing – confirm contributed effort has been certified; submit to Research Operations the 611E-W reports highlighting non-payroll cost sharing expenses; request certified cost sharing memos from 3rd party contributors.
3.3 Subawards - Refer to WI-MS-10.
3.4. Reconcile expenses and encumbrances on all project accounts.
3.5. Confirm all effort is certified.
3.6. Inform AMT GCO whether this will be final obligation or not as early as practicable. If this is the final period, go on to WI-CP-01.