Financial Reporting/No-Cost Extension
A Federal Financial Report (FFR) is a statement of expenditures and obligations incurred during the period of performance and/or at the conclusion of the sponsored project. The report reflects the University’s official accounting records.
The Sponsored Programs-Post Award team is responsible for preparing an annual and final financial report based on institutional financial records while ensuring expenses are in accordance with the terms and conditions of the sponsored award and University policies. Office of Sponsored Programs will sign and submit all financial reports to the sponsor on behalf of the University. In most cases, the Sponsored Programs-Post Award team can prepare financial reports without direct involvement from the department.
Upon completion of the financial report, a copy is sent to the department for their records. The report reflects the unobligated remaining balance, if applicable.
The Office of Management and Budget Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal awards, 2 CFR 200.343, (Uniform Guidance) states:
- The recipient must submit no later than 90 or 120 calendar days after the end date of the period of performance all financial, performance, and other reports as required by the terms and conditions of the federal award.
- Most NIH grants follow the 120-day timing noted in the Uniform Guidance, but some grants require reports to be submitted within 90 days of the end of the period of performance.
Office of Sponsored Programs requires the account to be reviewed and reconciled within 60 days after the end date to ensure all allowable charges have posted and are ready for closeout procedures. This includes any affiliated subaward’s expenditures.
The financial accounting system of the University is designed to comply and report financial data based on major budget categories. However, some sponsored agreements may require the provision of additional detailed information. In such cases, it is the responsibility of the Department Administrator to prepare the requested additional detailed information and submit it to the Sponsored Programs-Post Award team.
The Office of Sponsored Programs is responsible for submitting financial reports to sponsors via their online portals. In some cases, and with the approval of Sponsored Programs, departments may collaborate with OSP to submit financial reports to private sponsors. This ensures that the receivable is properly recorded, and that payment is tracked and collected. Such instances are rare and must be approved by Sponsored Programs.
If the award allows automatic carryover, departments are permitted to continue spending against their existing project. However, if carryforward necessitates prior approval from the sponsor, the department should coordinate with Sponsored Programs (OSP) on how to proceed. In such situations, OSP should adjust the budget to match expenses to prevent any further spending. If carryover is denied, the department will be responsible for any expenses incurred. Under section 75.308 c(2)(d)(3) Carry forward unobligated balances to subsequent periods of performance. Except for funds restricted on a Notice of Award, grantee organizations are authorized to carry over unobligated grant funds up to the lesser of 25% or $250,000 of the amount awarded for that budget period remaining at the end of that budget period. If the unobligated balance is in excess of 25% of the total amount awarded, or $250,000, whichever is less, and the grantee wishes to carry the funds forward, the grantee must obtain prior approval from the Grants Management Officer.
Departments should confirm whether the correct budget is reflected and confirm that the amount agrees with the agency authorized budget. Departments should review all expenses to ensure charges were posted to the correct project. If a deficit exists and the charges are unallowable, the department must transfer those costs to a discretionary account by completing a cost transfer justification form. If the charges are allowable, OSP may cost share the charges to a non-federal account.
Departments must verify that all allowable expenses have posted to the project. In cases where the award requires a return of funds to the sponsor, OSP will submit a check request form. If the award permits the balance to be retained, OSP will calculate the Direct and FA cost of the residual and transfer the direct cost to the department's discretionary account.
Cash Management
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Processing Letter of Credit (LOC) drawdowns for federal awards
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Process installment or cost reimbursement invoices for Non-federal or federal pass-through grants and contracts and act as the point of contact for invoicing inquiries
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Completing remittance information requests for sponsor payments
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Identifying sponsor payments via check, wire, and ACH
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Process receipts of sponsor payments and ensure they are credited to the correct award and outstanding receivables.
No-Cost Extension
- The terms and conditions of the award prohibit the extension.
- The extension requires additional federal funds.
- The extension involves any change in the approved objectives or scope of the project.
- not being exercised for the purpose of using the unobligated balance
- not prohibited by the terms and conditions of the federal award
- not to request additional federal funds
- it does not involve any change in the approved objectives or scope of the project.