Issued 9-1-95

In accordance with Kansas Statutes Annotated (K.S.A.) 76-721, 76-724, and 76-725, the Chief Executive Officer of Kansas State University (KSU), or whomever he so delegates his authority, may apply for, accept, and receive any "agreements" such as contracts, private donations, gifts, grants, or bequests from any agency of the U.S., any state, any subdivision of any state, and any person, partnership or corporation, if the purpose is related to the operation or function of KSU. These "agreements" are legal documents which bind the parties to the terms stated in the document.

After an "agreement" is received by KSU, the Controller's Office, Sponsored Projects Accounting (SPA) Section is responsible for ensuring that post award procedures and guidelines specified within each "agreement" are followed. Adequate files and records must be maintained for each "agreement". The official University files are maintained in the Controller's Office, with copies filed by the departments involved. Each of the documents filed with the SPA Section is to bear the original autographed signature of the authorized officials for the parties, if the document provides for signatures.

.020 Financial Information System (FIS)

The official University accounting records are maintained in FIS. FIS statements should be the source used for preparation of financial reports or information for sponsors or other entities.

.030 Assignment of Account Numbers

Once an agreement has been received by KSU, the KSU Controller's Office, Sponsored Projects Accounting (SPA) staff will assign the FIS Project Number(s), Organization number, Source, and Award Number(s) for all sponsored agreements and enter the necessary information in FIS to establish the account(s). More information about Organization numbers, Sources, and Department alphas may be found on the Controller’s Office website under “FIS Information”.

A. Project Number (“G” number)

SPA staff may assign multiple project numbers assigned to an agreement depending on the specific circumstances of the agreement. Departments may also request that SPA establish multiple project numbers for an agreement.

Each subaward under an agreement will be assigned a separate project number.

Project Numbers for sponsored agreements are 10-digit numbers with the format GXXX123456.

G= used for all sponsored agreements

XXX = department alpha

123456 = unique number

If the project number is for a KSU subaward to another entity, the six-digits will be alpha-numeric, with two alphas and four numeric. The alphas will assist in identifying the recipient of the subaward. The four numeric characters will correspond to the numeric portion of the related Award Number (described below).

B. Organization (Org)

A five-digit organization number is assigned to each sponsored agreement Project Number to correspond with the three-digit department alpha contained in the Project Number.

C. Source

A Source is assigned to each sponsored agreement to correspond with the type of funding being provided (for example, 3145 is the source for Main Campus Federal funds).

D. Award Number

Each agreement is assigned a six-digit Award Number with the format: XX1234.

XX = corresponds to alpha abbreviation for categories of sponsors used by the SPA office for invoicing processes.

1234 = unique number

E. Matching Project Numbers (“M” number)

When non-salary expenditures are promised in the agreement as a matching commitment, a Project Number to be used for these expenditures will be assigned by SPA. This project number will use the same department

alpha and unique six-digit numeric that is assigned as the sponsored agreement Project Number (described above), but will begin with the letter “M” in place of the letter “G”. Organization and Source are not assigned to these

project numbers. These are determined by the funds the department chooses to transfer to the “M” project number. Funds from multiple sources and organizations may be transferred to one “M” Project Number, however

expenditures must be charged accordingly.

.035 Budgets

Line item budgets are established in FIS in accordance with the terms of the agreement or subsequent approved revisions. The line item for Indirect Cost is not available to departments for expenditures. Indirect costs are automatically charged to the account each month-end based on the expenditures incurred and the indirect cost rate specified in the sponsored agreement.

.040 Deposits

All Deposits to sponsored agreement project numbers (all projects beginning with “G”), including checks from sponsors, refunds from vendors and receipts via an Interfund Voucher (IFV) must be completed by the Sponsored Projects Accounting Office (SPA). Departments cannot deposit funds to sponsored agreements.

A. Checks (or cash) from sponsors or vendors

Checks or cash received by departments from sponsors or vendors should be submitted to the SPA Office with account number information noted, if known.

B. Receiving side of an Interfund Voucher (IFV)

Please contact the Sponsored Projects Accounting Office for assistance in completing the receiving side of an IFV. In most cases a “generic” project number must be used in place of the “G” project number

or the document will not process in FIS. A transfer of funds from the generic project to the appropriate “G” project via Accounts Receivable in FIS must be done by SPA to complete the deposit.

.045 Invoices to Sponsors

The Sponsored Projects Accounting Office (SPA) prepares and submits invoices to sponsors for all sponsored agreements in accordance with the terms and conditions specified in the sponsored agreement. For certain federal agencies, SPA will request funds electronically. Other sponsors may require invoicing on a monthly, quarterly or other basis, while some sponsors may pay in advance or make scheduled payments. Sponsors may choose to remit the funds to KSU by check, wire/ACH, or by interfund voucher when the sponsor is a State of Kansas agency. Departments should not submit invoices to sponsors or provide remittance information to sponsors without contacting the Sponsored Projects Accounting Office first.

.050 Direct Costs

The Federal Office of Management and Budget (OMB) Circular A-21, Section D.1., states that "Direct costs are those costs that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect costs. Where an institution treats a particular type of cost as a direct cost of sponsored agreements, all costs incurred for the same purpose in like circumstances shall be treated as direct costs of all activities of the institution." Examples of such costs, but not limited to, are salaries and fringe benefits, supplies, travel, and equipment.

OMB Circular A-21, Section J.8., requires that payroll charges to Federally sponsored projects be supported with adequate documentation. KSU uses the Personnel Activity Reports (PAR) for this purpose as explained in Section 7000 Chapter 7070.

.060 Indirect Cost

OMB Circular A-21, Section E.1., states that "Indirect costs are those that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity." Examples of such costs, but not limited to, are depreciation, administration expenses, operation and maintenance expenses, and library expenses. For the latest federally approved Modified Total Direct Cost (MTDC) rates, see Section 7000, Chapter 7010.

Indirect costs are automatically charged monthly to each applicable sponsored project account at the rate determined in the "agreement". In addition, the indirect costs are automatically distributed monthly to the appropriate department accounts based on KSU administrative policies.

.070 Consultant and Other Professional Service Agreements on Sponsored Projects

Should it be necessary to ask for non-university assistance to fulfill a sponsored project, and the proposal budget or subsequent "agreement budget" names a sole-source consultant/other professional service (the only institution/person who can do the job), and if the amount is to exceed $5,000, a formal consultant/other professional service agreement must be processed through the KSU PreAward Services Office after obtaining sole source approval from the KSU Purchasing Office. See Section 6300, Chapter 6310 for special purchasing procedures for sponsored research projects for sole source, Section 7000, Chapter 7010 for proposal budget preparation procedures, and Section 10,000, Filing No. 10,107, pg 2 of 11, of the Division of Accounts and Reports Policy and Procedures Manual for state procedures.

The $5,000 limit is applicable to the overall contract commitment with a particular consultant or other professional, regardless of the number of sponsored agreements or other projects involved. Departments must consider all payments that will be made to the consultant or other professional, including travel reimbursements and payments over multiple fiscal years and/or from multiple projects when considering the dollar thresholds. Example: A three-year agreement (even if each year is budgeted in a separate award or project) at a cost of $2,000 per year is a $6,000 contract and purchasing approval is required.

If the proposal budget or subsequent "agreement" budget does not indicate the consultant/other professional service provider, and if the amount is to exceed $5,000, bids must be taken and files maintained of the bids received or specific sole-source approval must be received from the sponsor. See Section 6300, Chapter 6310 for special purchasing procedures for sponsored research projects for competitive bidding. Once approved, a formal agreement must be processed through the PreAwards Services office. If the agreement is less than $25,000, it does not need to be encumbered. However, an agreement must still be processed through the KSU PreAward Services Office. After the agreement has been processed through the KSU PreAward Services Office, Sponsored Projects Accounting will send a copy of the fully signed agreement to the department.

If the agreement is $25,000 or more, it needs to be encumbered and a DA-146, Contract Cover Sheet must be completed. After the agreement has been processed through the KSU PreAward Services Office, Sponsored Projects Accounting will send a copy of the fully signed agreement to the department and request a DA-146 be completed and returned to Sponsored Projects Accounting. Click here for directions on completing the DA-146 for Subawards/Consultants. The DA-146 is available on the Controller’s Office E-forms website. Sponsored Projects Accounting will obtain the Agency Attorney and Agency Authorized Signatures, assign the encumbrance and contract numbers and forward to the State Division of Accounts & Reports in Topeka. After approving the DA-146, the State Division of Accounts & Reports in Topeka will return a fully signed copy to Sponsored Projects Accounting. Sponsored Projects Accounting will then send a copy of the fully signed DA-146 to the department for their records.

It is important to note that payments cannot be made to consultants/other professional service providers until the fully signed DA-146 is returned from the State Division of Accounts & Reports in Topeka.

For modifications to existing agreements, the following directions should be followed:

Monetary reduction in the same or new fiscal year: Complete an encumbrance correction form via E-forms and return the form and the copy of the modified agreement to Sponsored Projects Accounting. An approved copy of the DA-146 and copy of the modified agreement will be forwarded to the department after all approvals have been received.

Non-monetary amendments (i.e.: time extension, etc): No action is needed by the department. An approved DA-146 and copy of the modified agreement will be forwarded to the department after all approvals have been received.

.072 Subaward Agreements on Sponsored Projects

Should it be necessary to ask for non-university assistance to fulfill a sponsored project, and the proposal budget or subsequent "agreement budget" names a subawardee (entity completing a significant part of the research or substantive effort), a formal subaward agreement must be processed through the KSU PreAward Services Office. See Chapter 7010 for proposal budget preparation procedures, and Section 10,000, Filing No. 10,107, pg 2 of 11, of the Division of Accounts and Reports Policy and Procedures Manual for state procedures.

If the proposal budget or subsequent "agreement" budget does not indicate the subrecipient, contact PreAward Services for guidance on a revised budget. Once approved, a formal agreement must be processed through the PreAwards Services Office.

If the agreement is less than $25,000, it does not need to be encumbered. However, an agreement must still be processed through the KSU PreAward Services Office. After the agreement has been processed through the KSU PreAward Services Office, Sponsored Projects Accounting will send a copy of the fully signed agreement to the department.

It is important to note that payments cannot be made to subawardees until the fully signed DA-146 is returned from the State Division of Accounts & Reports in Topeka.

When the DA-146 is returned from Topeka, Sponsored Projects Accounting will send a letter to the subrecipient detailing financial reporting requirements and notifying them of documentation required, if any, related to previous subawards as required by OMB Circular A-133, Subpart D and Compliance Supplement Part 3, Section M. All payments to the subrecipient will be held by Sponsored Projects Accounting until all required documentation related to this or previous subawards is received by Sponsored Projects Accounting.

A letter will be sent to the subrecipient if/when annual equipment, invention and/or MBE/WBE reports are due. In addition, a letter will be sent to the subrecipient requesting final financial reports, the final invoice and a request for the required A-133 documentation when it becomes available. Additional requests for A-133 documentation are sent on an annual basis.

For modifications to existing subawards, the following directions should be followed:

Add amounts in a new fiscal year: Follow instructions above for completing a DA-146 on a new agreement.

Add amounts in the same fiscal year the original agreement was processed: Complete an encumbrance correction form via E-forms and return the form and the copy of the modified agreement to Sponsored Projects Accounting. An approved copy of the DA-146 and copy of the modified agreement will be forwarded to the department after all approvals have been received.

Monetary reduction in the same or new fiscal year: Complete an encumbrance correction form via E-forms and return the form and the copy of the modified agreement to Sponsored Projects Accounting. An approved copy of the DA-146 and copy of the modified agreement will be forwarded to the department after all approvals have been received.

Non-monetary amendments (i.e.: time extension, change in PI, etc): No action is needed by the KSU department. An approved DA-146 and copy of the modified agreement will be forwarded to the department after all approvals have been received.

.075 Sponsored Projects DA-146 Contract Cover Sheet Document Completion Procedures

The DA-146 (Contract Cover Sheet) is available for completion via the Controller’s Office E-forms web site, under the Purchasing and Savable Forms sections.

1) Header Information: User Number is user defined, Contract Number is provided by SPA – it will be 367-XXXX, Order Date is the current date, Title is user defined.

2) Vendor Information: Vendor information should be completed using the same process for payment documents.

3) Agency Information: Use Department Information.

4) Contract Information:

a) Select New Contract for all new contracts. Amended Contract Terms should be marked for all others. The prior doc. no. is used for amended contracts only and is the previous encumbrance number (i.e. A0303xxx).

b) The Contract Description should be the title of the project the agreement is established for, usually found within quotation marks in the second paragraph of the agreement; the CFDA#, also found in the second paragraph of the agreement; and the statement “An obligation of sponsored research project K.S.A. 76-752 and/or 76-770 exemptions

c) The total (cumulative) contract commitment amount is the total amount of the agreement, including all modifications.

d) The contract dates are located under Article IV of the agreement and cover the entire agreement period, including all modifications.

e) Payment frequency is normally “monthly upon receipt of an acceptable invoice” (there is a check box for this option), unless otherwise indicated under Article V of the agreement.

5) Funding Information: The Award, Source and Org are specific to the Project number being used. The Project, Award and Object will be will be provided by SPA with the request for a DA-146 on initial agreements. Source and Org will be derived by E-forms. The amount is found under Article V of the agreement.

6) The department head should sign on the line “Department Head”.

7) When done, click on “Finished” button.

8) Return a signed copy to SPA with a copy of the Subaward Agreement.

9) SPA will assign the encumbrance number. When the department receives back a fully executed copy of the DA-146, it will be located in the upper right-hand corner and will be in the format AFYXXXXX.

Click here for an example of DA-146 Contract Cover Sheet

.080 Revisions

After an agreement has been signed by KSU, revisions may be necessary. All revision requests to sponsors are handled by PreAward Services in the same manner as the original proposal (See Section 7000, Chapter 7010). Post-award staff are available to advise what budget revisions are needed.

.090 Expenditure Reports

Expenditure reports are required for some sponsored projects. The KSU Controller's Office, Sponsored Projects Accounting (SPA) Section sends a notification to the department when an expenditure report is needed and encloses the required forms if available.

The department is to prepare the expenditure report in accordance with the instructions in the notification and/or sponsor's manual. The expenditure limitation as set forth on the line items in the notification letter and/or award notice must be observed. Items received after the end of the project period are not allowable on awards that require accountability and/or audits. However, items received prior to the end of the project period, but not paid until after the end of the project period that are allowable, should be listed on an outstanding list and attached to the final report, (see Section 7000, Chapter 7050, .300 - Sample Form - Outstanding Obligations for format). Outstanding items are those items that are not recorded as an expenditure under the project year column of the FRS FBM 090 account statement as of the end of the project period. PLEASE NOTE THAT OUTSTANDING PAYROLL COSTS MUST SPECIFY THE FOLLOWING:

NAME OF THE PERSON
SOCIAL SECURITY NUMBER
PAYROLL NUMBER
PAY PERIOD
AMOUNT

Also note that the Office of Management and Budget has revised Circular A-110 to say: "Unless the Federal awarding agency authorizes an extension, a recipient shall liquidate all obligations incurred under the award not later than 90 calendar days after the funding period or the date of completion as specified in the terms and conditions of the award or in agency implementing instructions."

Cost sharing or matching costs, if required, are to be reported and submitted with/on each expenditure report. The amount for salaries used for cost sharing are to be taken from the Cost Sharing for Sponsored Project Reports, which are prepared from the Personnel Activity Reports and mailed to the department approximately three weeks after the end of the last payroll period in a semester. (See Section 7000, Chapter 7070 for more information about Personnel Activity Reports). The amounts other than salaries used for matching should be taken from the matching account statement for the period covered by the report. BEWARE: Funds in matching accounts in state general funds lapse at the end of each fiscal year. Therefore, these monies must be spent or encumbered by the end of each state fiscal year. Funds in SRO accounts do not lapse, however they must be encumbered. See OMB Circular A-110 Section __ .23 for federal cost sharing or matching requirements.

The Principal Investigator and the Department Head are to sign or initial the expenditure report as instructed in the notification letter. The required number of completed copies, per the notification letter, and the list of outstanding obligations are to be forwarded to the KSU Controller's Office, SPA Section.

The SPA Section will review the expenditure report (including overhead and cost sharing or matching costs, if applicable) and sign as the Financial Officer. The SPA Section will forward the required number of copies to the sponsor, retain one copy for the official University files, and return any remaining copies to the department.

.100 Special Financial Reports

Some sponsors do not require separate final financial reports, however the University must report the final total expenditures to the sponsor. Currently National Science Foundation, U.S. Department of Education and some U.S. Department of Agriculture awards require a summary report from the University. In order to do so, the KSU Controller's Office, SPA Section forwards an "Outstanding Obligations" form to the appropriate Department Head when one of these awards ends. The forms are to be completed and returned within 90 days, showing all obligations which have not been recorded as paid on the Controller's Office account statement as of the ending date of the award. Note that "unless the Federal awarding agency authorizes an extension, a recipient shall liquidate all obligations incurred under the award not later than 90 calendar days after the funding period or the date of completion as specified in the terms and conditions of the award or in agency implementing instructions."

.110 Disposition of Federal Property Including Transfers

The department shall complete a Disposition of Property form DA-110 per the instructions and routing procedures in Section 6500, Chapter 6510. List only those items coded federal per Section 6500, Chapter 6510, on the same DA-110. Do not list items requiring this special approval on the same DA-110 form with non-federal items. Include the KSU account number the equipment was purchased from in the description of the property. The KSU Controller's Office, Reports and Statistics Section will screen the DA-110's that involve federal property and route them through the KSU Controller's Office, Sponsored Projects Accounting (SPA) Section for approval.

Transfer of equipment purchased by externally-sponsored research projects to another college or university will be made only on written approval by the State of Kansas Purchasing Director of a formal recommendation from the institution, including certification that:

a. The principal investigator is moving to another academic institution and his financial support is also transferred by the granting agency without interruption;

b. The granting agency approves transfer to the new institution of equipment purchased wholly by grant funds;

c. Such equipment was specialized in nature, acquired specifically for the investigator for his particular program, and is essential to continuance of the program without undue interruption in the work;

d. KSU does not need the equipment in its current related research program; and

e. The entire cost of physical transfer of the equipment will be borne by the granting agency or the recipient institution.

.120 Equipment Reports and Title Requests

Most federal sponsors require equipment reports. The KSU Controller's Office, Sponsored Projects Accounting (SPA) Section sends a notification to the department along with the form needed and asks that the form be completed and returned to the SPA Section for signature of the University official and mailing to the sponsor.

If title to equipment is not to KSU or not specified in the "agreement", a formal request may be issued. The request should be initiated by the principal investigator and can be requested anytime or included with the final equipment report. The Principal Investigator and the Department Head are to sign on all copies of the request and submit the original plus two copies to the SPA Section for signature of the University official and mailing to the sponsor.

.130 Invention Reports

Most federal sponsors require invention reports. The KSU Controller's Office, Sponsored Projects Accounting (SPA) Section sends a notification to the Department along with the form needed and asks that the forms be completed indicating the status of inventions/patents. If an invention is included on the report, it must be processed through the KSU Research Foundation for signature and returned to SPA Section. If no invention is included, the form should be returned to the SPA Section for signature of the University official and mailing to the sponsor.

.140 Technical Reports

The Department Head and Principal Investigator are responsible for the preparation and mailing of technical reports. However, the National Science Foundation requires the monitoring of these reports by the KSU Controller's Office, Sponsored Projects Accounting (SPA) Section on the quarterly financial report. The final project report (NSF Form 98A) is to be submitted within 90 days after the expiration date of the grant. The submission of the report within the 90 day period assures an orderly close out of completed grants and allows congress and other agencies in the scientific community early access to results of research supported by public funds.

NSF will forward a blank NSF Form 98A with a postage-paid return envelope for the final project report, to each Principal Investigator, for completion when the grant ends.

These final project reports are very important to NSF, and overdue reports probably will delay and/or reduce future awards. Department Heads and Principal Investigators are responsible for submitting the NSF final project reports in an accurate, complete and timely manner. In addition, a copy of the completed Form 98A must be sent to the SPA Section.

.150 Close Out Procedures

Per KSU administrative policies, when the termination date of a fixed-price sponsored project is reached and unencumbered funds remain in the project account, one of the following actions must be taken within three months:

1) Unused funds shall be returned to the sponsor, or

2) The award may be extended and funds expended during the subsequent budget period, provided they are applied to the activities specified in the project award notice, or

3) Unused funds may be transferred to a departmental Restricted Fees account to be used at the departments discretion. Total applicable indirect costs shall be deducted prior to the transfer of the funds, or

4) Remaining funds shall be treated as a regular indirect cost reimbursement and distributed in accordance with the University's policies for the type of project involved.

Shortly following the termination date, you will be notified in writing by the Controller's Office requesting that you indicate your choice for disposition of these residual funds. If none of the above actions are requested within three months of the termination date of the award, the Controller has authorized the Sponsored Projects Accounting (SPA) Section to use item 4 mentioned above and close out the project account.

In the event that the termination date of a fixed-price sponsored project is reached and the project is overdrawn, and no action has been taken within three months, the SPA Section will have the option to transfer the payments equaling the overexpenditure to that department's Other Operating Expense (OOE) account, the department's Sponsored Research Overhead (SRO) account, or the department's Restricted Fees account.

.160 Record Retention

OMB A-110, Section __.53 states that unless an earlier disposal date is authorized by the sponsor, all financial records, supporting documents, statistical records, and all other records pertinent to an award shall be retained for a period of three years from the date of submission of the final expenditure or for awards that are reviewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, as authorized by the Federal awarding agency unless you are notified to maintain them for a longer period because the records may be needed for audit purposes. However some State Agencies require that records be preserved for five years, therefore it is recommended that all records be preserved for five years. For further reference see Section 3000, Chapter 3090.

.170 Helpful Reminders for Principal Investigators

Statements, press releases and other documents describing projects funded in whole or in part with Federal funds shall clearly state the percentage of the total cost of the project which will be financed with Federal money and the dollar amount of Federal funds.

When a sponsored award is received, the sponsor's regulations and the standard State/University policies are to be followed. Basically, the only change is that the source of funds will be from a restricted fee account instead of state appropriations and the sponsor's requirements/regulations must be followed.

If assistance is needed, first consult the departmental Bookkeeper/Accountant who in turn may contact the following areas if further assistance is necessary.

I. Source of salary forms need to be processed if salaries are involved. Refer to Business Procedures Manual (BPM) Chapters 1 and 2, or contact the KSU Human Resource Services, Payroll Office 532-6200 for assistance.

II. Purchase of Services, Supplies and Equipment

University purchasing procedures are outlined in Chapter 6310 of the PPM. In order to allow for the usual 30-45 days processing time for obtaining competitive bids and placing the order plus the vendor's delivery time, it is essential that the Principal Investigator requisition supplies and equipment immediately upon receipt of the award. If you have any questions or need assistance in preparing your Purchase Requisition, please contact Bill Sesler, Director of Purchasing, at (785) 532-6214.

III. Information on travel requests, and reimbursement procedures can be found in Chapter 6410 of the PPM or contact the Travel Section of the Controller's Office at (785) 532-7356 for assistance.

For anticipated foreign travel plans, contact the department accountant immediately.

IV. Invoice and expenditure reports: refer to PPM Chapter 7050.090 thru 7050.150 or contact the KSU Controller's Office, Sponsored Projects Accounting (SPA) Section for assistance at (785) 532-6207.

V. Principal Investigators should work closely with departmental Bookkeepers/Accountants to determine the reasonableness, allocability and allowability of costs. OMB Circular A-21 explains this information in detail.

.180 Circulars - OMB A-21 & OMB A-110

Copies of the Office of Management and Budget Circular A-21 - Cost Principles for Educational Institutions and the Office of Management and Budget Circular A-110 - Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals and Other Non-Profit Organizations are available in the KSU Controller's Office, Sponsored Projects Accounting (SPA) Section, Anderson Hall, Room 10.

.190 Questions

If you have any questions on any of the post award procedures, please contact the KSU Controller's Office, Sponsored Projects Accounting (SPA) Section at (785) 532-6207.

Post Award Procedures

Chapter 7050

Revised October 2, 2008

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