Administrative Procedures

Sponsored Projects Accounting for Grants and Contracts

1. Purpose

To provide business operations in accordance with Administrative Regulation (AR) Policy No. 7.9 – Soliciting, Receiving, Recording, and Administering Grants and Contracts for Sponsored Projects.

2. Scope

This procedure applies to all KCTCS employees, students, colleges, offices, and workplaces, regardless of location and to all KCTCS-related conduct, policies, decisions, and actions.

3. Procedure

3.1

College and System Office Department Awardee Responsibility

1. The awardee college or department must complete an electronic Grants and Contract Accounts (GC1) Internal Approval Form, obtain all college or department required approvals, and submit the electronic GC1 form, along with the sponsor information (award, budget, and scope of work) via PeopleSoft.
   1. If the award/contract is an existing renewal year after year, but has new award/contract number, the process remains the same.
   2. If the award/contract includes a subaward to another entity, you must complete the KCTCS subaward form (GC6) and include as an attachment to the electronic GC1.
2. The awardee college or department is responsible for charging all allowable, reasonable, and allocable direct costs to the proper project grant account string. The college or department is responsible for maintaining the documentation for these costs (i.e., time sheets and procurement card receipts). Any expense identified as unallowable will be the responsibility of the college or department to reimburse the grant from other resources.
3. Grants and contracts awards have specific start and end dates. The college or department is responsible for monitoring the end date and ensuring that all charges related to a project grant are posted to the proper account string prior to the ending date. The KCTCS Office of Sponsored Projects Accounting will prepare the final financial report or invoice. Any costs determined disallowed (including services performed after the end date, and items received after the end date) will be the college or department’s responsibility to pay from other non-grant resources.
4. The college or department project coordinator/manager is responsible for the completion and submission of all technical reports required by the sponsor.

3.2

System Office - Sponsored Projects Accounting Responsibility

1. The KCTCS System Office of Sponsored Projects Accounting is responsible for the oversight and management of project grant’s post award functions, to include accounting, billing, financial reporting, monitoring compliance with applicable federal, state, and KCTCS regulations, and oversee all project grant audits.
   1. This includes the annual Federal Uniform Guidance (formerly A-133) Audit.
2. Establishment of all Fund 12 project grant attribute information and budgets into KCTCS’ financial system based on information from the completed GC1 Internal Approval Form and the sponsor’s award or contract.
3. Assist System Office and college principal investigators, project coordinators, and college business offices in processing transactions to comply with statutes, regulations, budget, and policies.
4. Sponsored Projects Accounting is responsible for the application proposal and negotiation necessary for obtaining the approved federal Facilities and Administrative/Indirect Cost (F&A) rates.
5. Sponsored Projects Accounting is responsible for all applicable F&A/indirect cost charges posted to Fund 12 project grants. 
   1. Sponsored Projects Accounting is also responsible for the distribution and allocation of F&A/indirect cost recovery revenue.
6. Sponsored Projects Accounting is responsible for the application proposal and negotiation necessary for obtaining the approved federal fringe benefit rates.
7. The Office of Sponsored Projects Accounting is responsible for preparing the Time and Effort (T&E) Certifications forms and sending them to the colleges and appropriate system office departments for signature and certification.

3.3

Disbursement of Project Grant Funds

1. Each project grant is assigned a specific grant (GRT) number and account string within the KCTCS general ledger accounting system. 
   1. All financial transactions relating to a specific grant are posted to that project grant string.
2. All expenditures and encumbrances must conform to the sponsor’s approved budget and must not exceed the amount of the budget. 
3. Personnel expenditures must be made in accordance with KCTCS Human Resources and Payroll policies and procedures.
   1. Every effort should be made to charge allowable payroll expenses directly through the KCTCS payroll system. 
   2. When charges are not posted properly, or there are erroneously charges, manual journal entries must be prepared and entered into the accounting system by the college or department responsible for the grant.
   3. The timely, journal entry should be prepared and entered following Business Procedures 5.3.1-P (Journal Vouchers) and 5.3.2-P (Cost Transfers on Sponsored Projects).
   4. These entries must include a detailed explanation justifying the expense transfer and backup documentation.
4. When approved in a project grant budget, procurement of micro-purchases, materials/supplies or services, with an aggregate dollar amount of less than $50,000 may be purchased without soliciting competitive quotes, if the price is deemed reasonable by the college or department.
5. Procurement of small purchases, services and materials with an aggregate cost of $50,000 up to $99,999 may be purchased, when allowed on a project grant provided the college or department obtains a minimum of three (3) quotations, regardless of method of purchase (pro-card, requisition, etc.).
   1. Documentation of these solicited or use of unsolicited quotes (prices from a reputable internet site) must be attached to the procurement documentation to show how purchase choice was determined.
   2. If the small purchase is on an Approved Price Contract, the three quotes are not needed.
6. Procurement of purchases of $100,000 or greater require a sealed solicitation process unless purchases are covered by an Approved Price Contract. 
7. Reference Business Procedure 5.4.12-P for services requiring a Personal Service Contract. 

3.4

Receipt of Project Grant Funds

1. The amount of revenue budget allocated for each project grant is based on the total budget on the GC1 Internal Approval Form.
2. Sponsored Projects Accounting will obtain funds from the sponsor based on the project grant’s terms and conditions outlined in sponsor’s award or contract.
3. All sponsor’s payments or draws are deposited immediately upon receipt in the appropriate project grant.

3.5

Budget Changes

1. Budget Transfer
   1. Once a Fund 12 project grant budget is established in the accounting system, an electronic GC2 Budget Revision Request must be completed to move funds between budget categories.
   2. Based on the terms and conditions of the sponsor’s award or contract the sponsor’s approval may be required prior to budget transfer.
   3. A college or department is to prepare the electronic GC2 with appropriate justification and remarks, attach documentation (sponsor’s approval, if required) and obtain required college or department approvals (principle investigator, college/department business officer, and/or college president/CEO, or Chancellor). 
   4. Completed electronic GC2 forms are submitted via PeopleSoft to the KCTCS Office of Grants Administration for final approvals. 
2. Budget Revision
   1. Increases or decreases to a project grant budget must be requested on an electronic GC2 Budget Revision Request form. 
   2. The appropriate college or department prepares the GC2 with justification documentation (copy of sponsor’s award showing increase or decrease must be attached) and college or department approvals. 
   3. Completed electronic GC2 forms are submitted via PeopleSoft to KCTCS Grants Administration for final approvals and then forwarded to system office of Sponsored Projects Accounting for entry into the accounting system. 

3.6 

Project Grants Close-out

1. Thirty days prior to end date of project grant, colleges and departments are responsible for posting final expenses and corrections to ensure all expenses are correct at the time KCTCS Sponsored Projects Accounting prepares the final report to the sponsor.
   1. If the project grant is cost reimbursement, the budget will be reduced to equal actual expenses at the time of final billing/reporting to the sponsor to ensure no further expenses are posted.
   2. If a project grant is a fixed-price agreement, any residual (unspent revenue) will be transferred to the college, once all final expenses have been posted.

4. F&A Recovery Revenue and Administrative Cost Assessment

4.1

Facilities and Administrative (F&A)/indirect cost recovery revenue will be allocated to the KCTCS business unit that generated the revenue and will be recorded as current operating revenue.

4.2

For system-wide or multi-business unit grants, the lead college or department will determine the F&A/indirect cost revenue distribution.