Sponsored Project Administration - SPA
Liquidation Expiration Date - new April 2014
In the interest of greater accountability, Federal sponsors have started to more closely monitor cash requests on sponsored projects and are giving additional scrutiny to final letter of credit draws.
Many Federal sponsors have developed special procedures for any draws initiated more than 90 days after the end date of the an award, heretofore described as late draws.
It is critical that UVM remain in compliance with these changing sponsor practices or we risk disallowed costs and sponsor non-payment.
The table below highlights the procedures instituted by some of UVM’s largest sponsors:
|Sponsor Name||Process for Draws|
|NSF||Late draws must be justified with a clear and concise one sentence explanation and must be approved by the GMO of the grant. NSF has made it clear that GMO approval of late draws is not guaranteed.|
|NASA||The business office of NASA needs to approve the draw and ”re-open” the award for late draws. We are also required to re-submit the financial report.|
|USDA||Late draws need to be supported by copies of receipts and other appropriate documentation. USDA has indicated that UVM may be asked to refund the payments from late draws if the documentation is deemed unsatisfactory or the time lag is too great.|
|NIH||Effective October 1, 2014, any draws done after 90 days will be put on hold till the awarding agency’s approval is obtained. Additional documentation will also need to be submitted.|
It is critical that all expenses are posted in PeopleSoft to the relevant project number before the final financial report is due and that SPA complete all draws in a timely fashion.
SPA, investigators, and business unit administrators must work together on this transition.
To help facilitate the process, we will use PeopleSoft to track the date by which the final draw must be made. See below for additional details
1. An additional field, called the Liquidation Date, has been added to the Milestone Tab on the Award Profile page for each award. During the award set up process for Federal awards, SPA will set this date to 90 days from the award end date for final financial reporting milestones only. The liquidation date represents the date by which the final draw must be completed or UVM may not be paid by the sponsor for the late expenses.
The liquidation date will be added to the milestone section of the closeout report and should be reviewed during PI and business unit administrator quarterly review meetings.
SPA will add the liquidation date to the monthly report of award activities that is sent to each academic unit Dean’s office. In the "Reports Pending Completion" tab, we will add a field that is called “Liquidation Expiration.”
When the SPA Financial Analyst contacts the departments for closeout, they will also remind them about the final draw date.
To facilitate a smooth transition to these new Federal requirements, SPA will implement the liquidation date requirement in the following fashion:
Effective immediately and through June 30, SPA will conduct closeouts as usual, doing manual draws for any pending payroll and F&A transactions that may not be posted. Note that all journal entries and other expense types must be posted prior to grant closeout, as per the current business process. SPA will continue to require a confirmation that total expenses are posted.
Effective July 1 and continuing through September 30, SPA will conduct closeouts 75 days following the end date of an award. All expenses must be posted in PeopleSoft before the draw is done and the final financial report is completed. SPA will continue to require a confirmation that total expenses are posted.
Effective October, SPA will conduct closeouts 60 days following the end date of an award. As with the above process, all expenses must be posted in PeopleSoft before the final draw and the final financial report.
- Effective October, Manual draws for pending expenses will be done only in exceptional cases and will need to approved by the SPA Director.
Any expenses posted after PI or business unit administrator confirmation of final expenses or the completion of the final financial report and final draw must be transferred by the appropriate departmental representative to unit general fund chartstrings.
Last modified May 15 2014 04:15 PM