Financial Reporting for Sponsored Programs
Handbook Section and Topic Page Links
Section 1: Introduction
Section 2: Proposal and Budget Development
- Charging Administrative Expenses
- Accounting for Unallowable Costs
- Application of Facilities and Administrative (F&A) Cost Rates
- Facilities and Administrative (F&A) Cost Waivers
- Personnel Costs
- Fringe Benefit Rates
- Institutional Base Salary
- Cost Sharing
Section 3: Managing Awards
- Opening or Modifying a Project
- Prior Approvals
- No-Cost Extension
- Cost Transfers
- Effort Reporting
- Salary Cap Administration
- Program Income
- Clinical Trials Financial Management
- Managing Sponsor Payments
Section 4: Travel and Procurement
- Domestic and Foreign Travel
- Memberships, Subscriptions, and Professional Activities
- Managing Subawards
- Small Business Program
- Managing Equipment Acquired with Federal Funding
- Recharge Center Policy
Section 5 Closing an Award
Federal sponsor agencies, as well as other public and private sponsors, have established clear financial reporting requirements for sponsor awards. Reimbursements, as well as future funding, may be contingent upon compliance with these requirements. It is the goal of NYU to provide timely, accurate and consistent compliance with all such requirements.
At New York University (NYU), the responsibility for administering sponsored projects is shared among Principal Investigators (PI's), Departmental Administrators (DA's), the Office of Sponsored Programs (OSP), and Sponsored Project Administration (SPA). To aid PIs and DA's in this process, NYU has made the University Data Warehouse Plus available for monitoring financial activity.
The PI is ultimately responsible for monitoring all financial aspects of the sponsored project and ensuring the accuracy of the financial information reported to the sponsor. This includes reviewing project costs and verifying that any adjustments have been processed in the PeopleSync and/or JEMS in a timely manner.
SPA works closely with PI's and DA's to complete financial reports and ensure timely submission.
At the time of final financial reporting, the SPA Analyst will request that the department provide the submission dates for the final progress or project report as required by the sponsor. SPA does not require copies of these reports.
Frequently Asked Questions
Who prepares and signs off on Financial Reports?
Sponsored Programs Administration (SPA) prepares all interim and final Financial reports based on amounts recorded in the University’s general ledger, FAME. Interim reports are not submitted to departments for review unless requested in advance by the department. Any adjustments will be included at project expiration with the Final report provided appropriate justification is provided. SPA will submit the Final Financial report to the department for review.
The department should return the final financial report to SPA in a timely manner to allow SPA to review the final financial report. If the department does not respond within 48 hours prior to the reporting deadline, the report will be issued to the sponsor.
When is a Financial Status Report due?
Reporting deadlines vary by agency. Generally, Federal sponsors require a final report within 90 days of project expiration. The Sponsored Programs Administration (SPA) Deliverables Report lists reporting due dates. If you need access or training in using these reports, please email your SPA Team inbox:
To identify your Team Inbox, go to the SPA Contacts page.
How is carryover of funds treated?
If the award has automatic carryover , departments can continue spending against their existing project. If carryforward requires prior approval from the sponsor, the department should coordinate with Sponsored Programs Administration (SPA) on how to account for it. In such cases, SPA should freeze the project or reduce the budget to match expenses to prevent further spending. Departments will be responsible for any costs incurred should carryover be denied.
Are there circumstances when departments submit bills directly to sponsors?
Sponsored Programs Administration (SPA) generally prepares all invoices. Occasionally, departments may prepare invoices, however, SPA must review and sign off on all invoices prior to submission to the sponsor.
Who is responsible for the timely collection of Accounts Receivable (A/R)?
Sponsored Programs Administration (SPA) is responsible for collection with assistance from the departments. E.g., a payment may be 90 days overdue because a Progress Report has not been submitted by the Department. However, the department is ultimately responsible for any receivables which cannot be collected from the sponsor.
What is a negative encumbrance?
A negative encumbrance typically occurs when there are insufficient funds available for the original payroll encumbrance journal to post, or an invalid chartfield was provided. A negative encumbrance will artificially inflate the project’s available balance, and may lead to further spending resulting in a project deficit. Departments must review their Budget Exception Reports to identify the encumbrance fail and resolve immediately, as any deficits will be the sole responsibility of the department.
What if my project is in deficit?
Departments should confirm whether the correct budget is reflected in the Budget Summary Reports and should also confirm that the amount agrees to the agency authorized budget. Departments should review all expenses to ensure charges were posted to the correct project. If a deficit exists, the department must transfer those costs to a discretionary chartfield using a cost share program. Such costs are perceived as valid research costs that cannot be billed to the sponsor, but must be tracked for purposes of the Facilities and Administrative (F&A) Rate Proposal.
What if my project has a surplus?
- Departments must confirm that all appropriate expenses posted to the project.
- If the award requires funds be returned to the sponsor, Sponsored Programs Administration (SPA) will submit a Business Payment Form request to Accounts Payable (AP).
- If the award is silent or allows the balance to be retained by New York University (NYU), the department should submit a Journal Entry Management System (JEMS) request to transfer the surplus to a discretionary chartfield. Please consult with SPA on the appropriate accounts to use.
SPA 001: Award Management
Open SPA 001: Award Management in iLearn (NYUHome login required)
This learning module will discuss award management elements, and will cover the following policies as outlined in the SPA Handbook:
- Opening or Modifying a Project
- Financial Reporting
- Prior Approvals
- No-Cost Extensions
Duration: 17:00 minutes