Sponsored Project Financial Management

The PI is responsible for complying with all the financial terms and conditions of the award. This includes ensuring that costs are correctly charged to the index according to the sponsor-approved project budget and the terms and conditions of the award.

Each expense charged to the index must be directly related to the project, allowable under the terms and conditions of the award, and included in the sponsor-approved budget. Any questions concerning the allowability of costs should be directed to the POC prior to incurring the cost. The POC can assist the PI in determining if the cost is allowable under the current budget or if a budget revision is required.

Remember the PI is ultimately responsible for all costs charged to their index. While the PI may delegate some responsibility for the day-to-day management of finances or other tasks to departmental or project staff, the PI remains accountable for compliance with university and sponsor requirements. Such designated employees’ names need to be provided to the Purchasing Department as having authority to approve spending on the award, approve purchase requisitions and/or invoices.

The PI must complete Banner 100 Basic Navigation, Banner Finance 201 Introduction and 204 Reports and Queries training in order to monitor the index activity and generate financial reports. Find more information at the HR Training Page.

The PI and the PI’s unit (department and college) are responsible for any over expenditures or any costs determined unallowable by the sponsor, OGRD, or auditors. Therefore,it is recommended that the PI require that he/she or his/her designee approve all project-related expenses in advance of the expenditure to ensure compliance with the terms and conditions of the award.

Financial Orientation and Training

Orientation

Terms and conditions, reporting requirements, project and budget modification requirements, and procedures will vary with each award and each sponsor. The assigned OGRD Post-Award point of contact (POC) will contact the PI to schedule an orientation meeting. It is equally important for new and experienced PIs, along with any other personnel responsible for assisting the PI with spending/managing finances, to attend the orientation session. Orientation is an opportunity for the PI and other personnel who may be spending on the award to convey project expectations and share financial tracking methods for the project. For the POC, orientation is an opportunity to relate project compliance expectations such as reporting timeframes and deadlines, and provide resources for successful project management.

Access the Orientation Checklist >>

Fiscal Management Training

Fiscal management training is provided on an as needed basis. If the POC determines training is necessary for the successful fiscal management of an award, the POC will work with the PI and award personnel to arrange training session(s).

Tracking Expenditures

Sponsored Project Fiscal and Administrative Management Compliance

The PI is responsible for all activity on a sponsored project. However,expense paperwork and supporting documentation for expenditures must also be sent to the assigned POC for approval/signature. OGRD staff overarchingly monitor all expenditures against award indexes to ensure consistent compliance with sponsor, university, state, and federal guidelines. Each expense must be directly related to the project, allowable under the terms and conditions of the award, and included in the sponsor-approved budget. Expenditures may include, but are not limited to: Central Travel Account purchases (CTA card), invoices, Memorandum of Agreements (MOAs), Payroll Action Forms (PAFs), Procurement card purchases (Pcard), purchase requisitions (PRs) and travel arrangements. The POC will review proposed expenses and the project budget. If there are questions, concerns or missing paperwork, the POC will contact award personnel.

Indirect Cost Recovery

The university negotiates its federally approved ICR agreement through its cognizant agency, the Department of Health and Human Services (DHHS). The current ICR rate is 61.4% of salaries and wages (exclusive of fringe benefits). The rate is renegotiated periodically. Unless otherwise specified by the granting or contracting entity, this rate is to be used on all applications and/or contracts for external funding including those from private, local, state and federal sources.

Cost Sharing/Matching

It is the PI’s responsibility to document all cost sharing/matching associated with the project. Contact the Post-Award POC for cost sharing/matching resources applicable to the award. Completed copies of all documentation must be submitted to the OGRD as cost sharing/matching funds are subject to audit to the same degree as grant and/or contract funds expended. Student timesheets or supply receipts are examples of documentation of cost sharing/matching. Forward completed cost-sharing documentation to the Post-Award POC on a monthly basis.

Budget Revisions and Cost-transfer Requests

Co-Mingling of Funds

Project Over-expenditures and Unallowable Costs

The PI and the PI’s unit are responsible for any over expenditures or any costs that are determined to be unallowable by the OGRD or auditors. It is therefore incumbent upon the PI to carefully monitor all expenditures charged to his/her restricted indexes and to implement whatever procedures are necessary to ensure compliance with the terms and conditions of the award. The OGRD will consult with the PI and provide examples of spreadsheets that may be used to monitor expenditures.

Request funds from sponsors

OGRD staff prepare invoices, or General Accounting and the Controller’s Office request electronic cash drawdowns, as required by project guidelines. While PIs are not responsible for sending invoices. PIs are, however, responsible for timely communication of information regarding project expenditures including providing necessary documentation to support expenditures as required by project guidelines.

Payment processing

On the rare occasion a PI receives a payment from a sponsor, please notify the OGRD as soon as it is received. The OGRD has information the EWU Cashier’s Office needs to correctly process the payment.

If a sponsor asks where to send a payment, provide the following address:

Student Financial Services/Office of Grant and Research Development

Eastern Washington University

202 Sutton Hall

Cheney, WA 99004-2448

Program Income

Occasionally a grant will generate program income; however, the university cannot retain program income. Income generated by a grant must be used to finance the non-federal share of the project or reduce the federal agency’s share of expenses. For non-federal awards, the specific award document will provide guidance on the treatment of program income. Any and all program income that has been received on behalf of the grant project must be accounted for during the grant close out.