Thanks to those who have responded to my frustration!
Dawn did a much better job than I did at stating exactly what we are
doing. (And, Barbara, this has never been noted as a finding to this
point!)
Within 3 weeks from the end of each month, we are
invoicing for actual expenses incurred (i.e. payroll, supplies, equipment) based
on services provided or supplies/equipment actually received during the
month. However, we may not have physically cut a check to the
vendors by the time the invoice was submitted to the funding agency.
(Our current policy is to issue payment to vendors at approximately 30
days.) This is what the auditors apparently have a problem with (for the
first time ever).
Since
I originally issued this listserv question, the auditors did provide me with the
following documentation that comes out of the A-133 Compliance
Supplement:
C. CASH MANAGEMENT
Compliance
Requirements
When
entities are funded on a reimbursement basis, program costs must be paid for by
entity funds before reimbursement is requested from the Federal Government. When funds are advanced, recipients must
follow procedures to minimize the time elapsing between the transfer of funds
from the U.S. Treasury and disbursement.
When advance payment procedures are used, recipients must establish
similar procedures for subrecipients.
Even
though I didn't want to believe it, I guess this states their position pretty
clearly.
Deb
***************************************************
Debra
K. Hansen
Director of Sponsored Programs and
Fiscal Affairs
Marshfield Clinic Research
Foundation
1000 N Oak Avenue - 1R3
Marshfield, WI 54449
715-387-9130
xxxxxx@mcrf.mfldclin.edu
***************************************************
It has been many years since I was involved in a award billings. At
that time (I don't think that has changed) the billing method was based on the
dictates of the award document.
Cost reimbursable means you request
reimbursement for cost incurred, if the expense is booked as a expense on your
accounting system (i.e., accrued), regardless of whether payment has been
issued, you bill the agency. Now if your payables take a long time issuing
payment that's a different problem, that needs to be address by the big wigs at
your campus.
Advance means you bill in advance & if you've request
more $ than what was needed during a 30 day period you owed the feds interest.
I found many private & foreign sponsors wanted to know the amount of
the outstanding obligations. When requested the amount was included on the
monthly invoice labled "Outstanding Obligations" and a disclaimer was included
to indicate that appropriate F&A costs were not included as the goods and/or
services had not been received and University policy did not permit advance
calculation of this cost.
There were a few federal agencies who wanted
the same info, so when written requests were received the info was sent to
them.
Dawn
--
Dawn Wall, Accountant
University of Alaska
Statewide Office of Cost Analysis
211B Butrovich Building
PO Box 756540
Fairbanks, AK 99775-6540
Phone - 907.450.8076 fax - 907.450.8071
email - xxxxxx@alaska.edu
http://www.alaska.edu/controller/cost-analysis/
The strength of the United States is not the gold at Fort
Knox or the weapons of mass destruction that we have, but
the sum total of the education and the character of our people.
-- Claiborne Pell
Hansen, Debra K. wrote:
I need help from some Grant Accountants!
For the past 16 years, and probably more, excluding
grants paid via the Payment Management System, we have invoiced our funding
agencies based on expenses charged on an accrual basis against our federally
funded grant and contract accounts. Our auditors, who will remain
unnamed, are telling us for the first time that we should be invoicing for
expenses based on a cash basis (i.e. as expenses are paid).
Does this sound right? Can anyone direct me
to the regulatory documentation that would be provide guidance on this?
Also, if this is correct, how do institutions manage this when their financial
reporting is on an overall accrual basis?
Thank you!
Deb
***************************************************
Debra K.
Hansen
Director of Sponsored Programs and
Fiscal Affairs
Marshfield Clinic Research
Foundation
1000 N Oak Avenue - 1R3
Marshfield, WI 54449
715-387-9130
xxxxxx@mcrf.mfldclin.edu
***************************************************
======================================================================
Instructions on how to use the RESADM-L Mailing List, including subscription
information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv
Lists") ======================================================================
======================================================================
Instructions on how to use the RESADM-L Mailing List, including subscription
information and a web-searchable archive, are available via our web site at
http://www.hrinet.org (click on "Listserv Lists")
======================================================================