FAQ's FOR SPONSORED PROJECT ACCOUNTING
and RESPONSE TO SUGGESTIONS FOR CHANGES

Suggestions

This section includes our response to suggestions we have received. If you have a suggestion as to a method to clarify or improve a process or procedure we would be delighted to hear it.
Please email Deniece Berry, or call 208-426-2032 and share your ideas.

1. How about the following? PI emails ORA upon awarding of grant; ORA generates account request form from transmittal form information and/or award letter: email account number to the PI.

Great suggestion * the procedure has been implemented and PIs should start receiving an email when a new department ID and project/grant has been set up.

2. Grants Accounting keeps easy-to-read excel spreadsheets that summarize grants accounts (for at least some grants). Can PIs have constant access to those spreadsheets, perhaps on a common drive, read-only?

We are currently in the process of getting this function up and running. Until then you can always email or phone and we can send a copy to you via email.

3. Is there any way that ORA and/or grants accounting can send a copy of the budget breakdown that they have constructed?

In SPA the budget is attached to our Excel worksheets. If you need a copy just request by email or phone and one can be sent.

4. Encumber the “indirect cost” so it appears on printouts.

When PeopleSoft was first implemented the indirect or F & A monies were encumbered. The problem that was encountered is that it’s a very manual process. When a journal was created to expense the F & A another encumbrance journal had to be created to reverse the encumbrance amount. Also, at year-end encumbrances do not roll forward so the accountants would have to go in and manually key another journal to encumber the funds.
In the interim, we have requested that the spending authority remaining exclude the F & A balance so a clearer picture is available to the departments. It has not been implemented yet, but has been added to the technical issue log.

FAQ’s (Frequently Asked Questions)

SPONSORED PROJECTS

1. Do you notify the PI if F&A allocations are being withheld for lack of compliance in payroll certifications, cost-share affidavits, etc.?

Yes, this is normally done by email when the journal is created.

2. Why can’t we spend our F&A when it shows up on our budget?

F&A costs are only incurred when expenses are incurred.

For example, a grant has an indirect cost rate of 20% TDC (Total Direct Costs) and the PI spends $5000 in that quarter. The manual F&A calculation would be $5000 X 20% = $1000. This would be the only F&A BSU would be entitled too. Again, F&A allocated is based only on expenses. This $1000 would then be allocated as 40% to administration, 40% to the department and 20% to the college.

3. When & how do I get my F&A to spend? What account number does it go into?

WHEN *
You get your F&A on a quarterly basis, normally. Please take into consideration if no F&A was awarded from the agency then the department will get no F&A.
HOW *
On a quarterly basis, an accountant in Sponsored Project Accounting will create a journal that will split the F&A earned based on expenses. The split is 40% to administration, 40% to the department, and 20% to the College.
WHAT ACCOUNT *
it depends on where the department and college have requested it. It will normally hit a local account that the department and college has set up to collect F & A.

4. What is the ONL source code and what does it stand for on a PeopleSoft report?

The "ONL" in the PeopleSoft reports stands for "online". It is an identifier, and is the default source code if other source codes are not selected for that particular journal. Examples of other source codes are HR (HR/Payroll), AP (Accounts Payable), SF (Student Financial).

5. You lost me with direct/indirect costs/spending * How and when are these spent?

F&A costs allocated to the department and to the college are spent according to the strategic plan of the person who they belong to. You will need to check with the Dean of your college or the department in question for specifics.

6. Indirect costs went over my head * What are these, how are they determined, how billed?

F&A stands for Facilities and Administrative. An easy way of looking at what F&A is that it is the cost of doing business or your overhead. It costs money to utilize equipment, services and maintain buildings across campus. F&A is built into a grant or contract based on a percentage determined by the granting agency. For example, the federal negotiated rate currently is 46% of Salaries and Wages. The F&A collected helps fund the above categories.
F&A is billed when an invoice is sent to the agency for payment. See calculation example for the specifics.

7. Again, - F & A made sense except on how it is charged?

See question #3 above for the answer.

8. If I am a contractor developing an autonomous center at BSU, does grant I.D. request apply & payroll certifications, etc.?

Yes

9. How much of this applies to a contractor developing an “autonomous” center associated with Boise States Department of Health Studies/Sciences if it is to be funded by grants primarily obtained by the contractor?

An “autonomous” center will still have to follow all the rules and regulations of the federal government and Boise State University. The only way I could see an “autonomous” center being separate from BSU rules and regulations is if you are going to have your own accounting system which would include an Accounts Payable Department, Human Resources and etc.

10. Why can’t we spend our F&A when it shows up on our budget?

F&A costs allocated to the department and to the college are spent according to the strategic plan of the person who they belong to. You will need to check with the Dean of your college or the department in question for specifics.

OFFICE OF RESEARCH ADMINISTRATION

1. I have difficulties knowing what can be used as in-kind match for cost share grants. It seems that the rules aren’t consistently applied, if there are any rules. Where are the University guidelines regarding in-kind match for cost share grants published?

In the ORA policy it says:
"E. Cost-Sharing:
Some sponsors require the University to contribute to the cost of the project and may require a financial accounting of the University's contribution. The University budget(s) to which such cost sharing will be charged must be identified prior to approval of the sponsored project budget.
University contributions in terms of personnel effort and the associated employee benefit costs, other direct expense and the indirect cost calculated on these expenses at the approved University indirect cost rate can be shown. Any difference between indirect costs at the sponsor-limited rate and the University's negotiated rate can also be used as cost sharing.
The University discourages cost sharing unless mandated by the sponsor. "

Office of Research Administration has recommended calling them and they will try to help determine what is and is not allowable.

For the future, the Vice President for Research, Dr. John Owens has written a new cost-share policy that has not yet made its way through the final approval system. It is ORA’s hope that this new policy will define this question more clearly.

PURCHASING

1. What is a FOB?

FOB (Free on board) is an acronym from the days when everything was shipped by ship. In plain English the FOB point is where we as the buyer take ownership of the shipment. FOB origin means that we take ownership when the item is placed on the truck. FOB destination means that the seller retains ownership until the item is unloaded at our site. There is no practical difference unless the shipment is lost or damaged. When that occurs the FOB point determines who deals with the freight company.

FOB destination may also used to indicate that shipping costs are included in the price. This is not a given so it should be explicitly stated if shipping is included or added to the invoice.

2. How much documentation does the department need to keep on file for P-Card purchases between $1500-$2000?

The Purchasing policy is in the process of being updated to reflect the new bid limits. The only documentation required is a copy of the receipt, packing slip, or invoice, the same as for all p-card purchases.

3. Do departments need to receive three quotes for p-card purchases between $1500-$2000?

No, it is not necessary to obtain three quotes. There maybe times when it makes sense to shop around or request pricing from more than one vendor.

4. Services less that $5000. Is a written contract required for services costing $500 or greater? Or is it $600 or greater (amount on services rendered form)?

We are currently working on the Independent Contractor policy. State law requires all contracts exceeding $500 to be in writing. The current version of the Services Rendered form identifies $600 as a breaking point but does not specifically deal with the need for a written contract. If the total cost for services in a one-year period is more than $600 then a written contract is required. When paying a vendor where there is NO written contract a Services Rendered form MUST be used. When there is a written contract, the Services Rendered form can be used as an invoice in any amount.
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5. Can I charge services on a P-Card?

No, you may not pay for “Independent Contractor” services using your P-card. There are some IRS requirements that we are unable to meet when these payments are paid by P-card. “Independent Contractor” services are generally defined here at BSU as the contracting for the services of an individual(s).

EQUIPMENT INVENTORY

1. Should tags on old stuff that no longer meet the inventory guidelines be removed and thrown out or sent to you?

You may find it easier to complete your yearly inventory if you remove the tags on items that no longer meet inventory guidelines. However, I have left the decision of removing the tags to the departments because of the employee time involved to remove them. If you do remove the tags, please send them to Inventory Control, MS1247. If you decide to leave the tags on, I can still look up information on the equipment. For instance, I can tell you month and year the item was acquired, PO number, and original cost.

2. Order equipment for schools * What account code should be used?

The account code will depend on what you purchase but it will start with a “5” and end with “00”. For instance, a computer would be account code 558000 and a camera would be 573500. If you have any questions when you are trying to find an appropriate account code, please contact Pat Shelton or the Purchasing Department. The Purchasing web site has a list of most frequently used account codes. The address is http://www2.boisestate.edu/purchasing/

TRAVEL

1. Allowable travel expenses * Please clarify the use of P-Card to pay for hotel room related to travel.

Allowable P-Card expenses. The P-Card may be used to secure or guarantee a hotel room. Upon arrival, it is the responsibility of the traveler to make arrangement to place room expenses either on their personal card or pay upon departure by cash. At this time, you cannot charge your room expenses to the P-Card.

ACCOUNTS PAYABLE

1. Does an autonomous center (associated with BSU) have to go through payment request forms, etc.?

An autonomous center such as the BSU Foundation, which is a separate legal entity, process all their payments internally, using their own forms and cutting their own checks. However, a center that is legally part of the University must send their payments through accounts payable to be processed, complete with any forms required for that payment.