Funding Awarded

Preceding official award notification may by a negotiating call from the Grant’s office of the funding agency. The purpose of this call will be to discuss budget items, modifications in the scope of work, and/or to discuss a lower award than was requested. The institutional indirect rate cannot be negotiated by the PI/PD. When the PI/PD receives the negotiation call, they must contact the Grants Officer who will review, in consultation with the appropriate vice president, the negotiation elements with the PI/PD to determine 1) if the goals and objectives of the project can be met with the negotiated budget, and 2) if there is additional institutional impact or commitment being requested by the funding agency. The Grants Officer will review with the PI/PD the required documentation to be sent back to the agency. Once the review is completed, the PI/PD will complete the revised budget and any other documentation required by the funding agency. The revised documents will then be reviewed by the Grants Officer, endorsed by the appropriate vice president, and will then be forwarded to the funding agency.

Once the PI/PD, department chair, and dean have been notified the award acceptance process has been completed, the Office of Accounting Services are contacted to create an account number and project activities may begin.  The PI is responsible for initiating the creation of a SCT Banner account form.  The Office of Accounting Services will work with the PI/PD for all financial requests and reports.  The Office of Accounting Services maintains the accounting and budgetary systems at Missouri Western State University. This office provides timely, useful budget information, and services to all constituencies (e.g., general accounting, budgetary oversight, accounts payable, and treasury functions).

• Allowable Expenditures: The same policies and procedures that apply to spending institutional monies apply to grant monies (e.g., state travel regulation, purchasing requirements, salary increase limitations, etc.).  In addition, May expenses are not allowed to be charged to Federal Grants. Those limitations are listed in 2 CFR Part 220.
• Timeliness of Expenditures: Expenditures incurred outside of the stated award period will not be reimbursed.  The PI/PD must work with Accounting Services to spend out or encumber funds before the end of the funding period.
• Spending Across Budget Lines: Each agency has its own rules regarding flexibility within the four main budgetary categories (personnel, operating expenses, capital expenditures, and indirect costs). The guidelines of the funding agency supersede Western policy. The Grants Officer will advise on the steps to be taken when a revision in the financial plan becomes necessary.
• Personnel Expenditures: The first step in paying grant employees is to determine the appropriate classification of pay.  Several classifications and methods of payment are available. Please refer to the budget as approved by the funding agency and the Grants Officer for the classification of project staff.
• 100% Grant Funded Positions: If new positions are funded as the result of a grant, and those positions do not become part of the regular institutional budget, those are often referred to as “soft money” positions.  Staff on soft money positions must expend all accrued vacation each year and always prior to the expiration of their grants. There will be no payouts for accrued vacation.  Staff on soft money positions must be aware at all times that the conditions of their employment are dependent on the funding agency, and could change at any time.
• Travel Expenditures: If your grant allows for reimbursement of travel expenditures all applicable State and University travel regulations must be followed.  All travel documents (i.e., itemized receipts for meals, lodging, or airfare) must be submitted with a remittance form or procurement log to Accounting Services for processing.
• Non-Travel Expenditures: The PI/PD may purchase the supplies specified in the project budget through personal methods of payment or with a Western procurement card.  If purchasing supplies with personal funds, the PI/PD must submit an itemized receipt with a completed remittance form.  If the grant has an operating budget for non-travel expenditures of at least $2,000 the PI/PD may choose to obtain a procurement card.  The procurement card is administered through Accounting Services and the Procurement Card Policies and Procedures handbook provides guidance on appropriate use.

Vendors:  For all grants over $25,000 vendors must be checked against the federal Excluded Parties list at http://www.epls.gov

• Expense Remittance and Reconciliation: The PI/PD is responsible for the completion and submission of all paperwork related to project expenditures to Accounting Services for reimbursement.
  • procurement card monthly transaction log
  • remittance form and itemized receipts
• Project Fund Accounting: While some projects are able to request funds for administrative or clerical support, others are not.  For the PI/PD without project funded clerical staff, the administrative assistant in their department is essential to the efficient administration of the project budget.  Departmental administrative assistants are often familiar with the forms and processes involved in spending funds.  This departmental contribution of administrative clerical staff time is part of the institutional support that is implied by Western’s acceptance of a grant or contract.  All billings and financial reporting will be handled through Accounting Services.

• • As a result, the PI/PD will not be handling the funds. These funds will be automatically deposited into the assigned account number established for the particular grant or contract.  In the event that the PI/PD should be the receiver of an award check from the funding agency it is their responsibility to get the check to Accounting Services as quickly and safely as possible.
  • Accounting Services will need the PI/PD to provide them with detailed information for financial reporting purposes.  It is the responsibility of the PI/PD to maintain good record keeping.  If the accounting duties for the project are substantial and the funding agency has provided for clerical support, a grant accountant is employed to manage the fiscal responsibilities of the grant.  In this instance, it is the responsibility of the grant accountant to handle all billings, financial reporting, and reconciliation.
  • Any item purchased with external grant or contract funds that has a value of $5,000 or more and a useful life of at least two years is considered “equipment” and must be tagged, recorded, and inventoried as a University fixed asset.
  • The following are examples of cost transfers that will raise red flags and be questioned by the grant’s accountants:
    • Transfers to or between grants
    • Transfers older than 60 days after the original transaction
    • Transfers in the last month of the award or after the award has expired
    • Large numbers of cost transfers relating to a particular department or grant
    • Grants with a zero balance at the end of the award
    • Round numbers (may be an indicator of a plugged number)
    • Labor redistribution adjustments to previously certified effort
    • Transfers without a full explanation
    • Transfers among “closely related” projects

The OGSP and Accounting Services are now ready to do their part in monitoring your project.  Keep in mind that the award is to Western, and the institution holds ultimate responsibility for programmatic and budgetary compliance within the grant award conditions.  The PI is responsible for ensuring that grants follow the approved budget and do not overspend in any category.  Expenses over allowed amounts will be billed to the originating department.  Expenditures or purchase commitments for grant-funded or sponsored programs must be expended within the dates of the grant project period and require the approval of the Accounting office.

• Sometimes it is necessary to modify a grant in regard to either the proposed activities or adjustments to the budget.  While each agency has its own rules regarding flexibility within the four main budgetary categories (personnel, operating expenses, capital expenditures, and indirect costs), modifications or amendments to a previously approved proposal often require the authorization of the funding agency and the appropriate vice president.  It is the responsibility of the PI/PD to ascribe to the requirements of the funding agency when making modifications.  In this regard, the guidelines of the funding agency may supersede Western policy.  While some budget changes may not require a formal proposal amendment, it is necessary to notify the funding agency before making changes in key personnel or scope of work.  The Grants Officer will advise the PI/PD on the steps to be taken when a revision in the financial plan becomes necessary.
• The PI/PD must bring to the attention of their department, their dean, and/or the OGSP any circumstances that may delay satisfactory and timely completion of the project. Depending upon the funding agency, it may be necessary for the PI/PD to apply for a “no cost” extension in order to complete program activities.