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A | B | C | D | E | F | G | H | I | J | K | L | M | N | O
| P | Q | R | S | T | U | V | W | X | Y | Z

Account Numbers:
Each agreement must have its own account number which allows for the proper accounting, reporting, and auditing of funds. Funds must be segregated by source and function. Normally, only one account number is established for each agreement. If an account number is needed before an agreement is fully executed, a tentative account number may be requested through the department head via an AS494. The tentative account number will be the account number of the agreement once it is received.

ZXX-XX-XXXX           Campus

ZZZ-XX-XXXX            College

ZZZ-ZZ-XXXX            Department

XXX-XX-ZXXX           Source of Funds
4 – State & Local Sponsored Agreements
5 – Federal Sponsored Agreements
6 – Private Sponsored Agreements, University Foundation accounts and gifts to the University
7 – State Match University Foundation Accounts and Endowments

XXX-XX-XZXX           Function (Please indicate the appropriate function which will be used to assign the account number. The function is important for cost sharing documentation, financial statement presentation, and the Facilities & Administrative Costs calculation).
0 – Instruction                         5 – Institutional Support
1 – Research                          6 – Operation and Maintenance of Plant
2 – Public Service                   7 – Scholarships & Fellowships
3 – Academic Support            8 – Auxiliary Enterprises
4 – Student Services              9 – Transfer

XXX-XX-XXZZ Sequential

Accounts Receivable:
SPA is responsible for monitoring collection of payments from sponsors. Statements of account are mailed once an invoice is over 60 days old. It is important that departmental personnel communicate with SPA any correspondence with sponsors as to reasons for withholding payment. This will avoid sending unnecessary statements to sponsors.

Award Modifications:
An award modification is a change to the terms and conditions of a sponsored agreement. Modifications must be in writing and signed by the university and the sponsoring agency.

Award modifications are needed in the following situations:

• Change in scope or objective
• Change in key personnel
• Reduction of 25% of PI’s time
• Additional Federal funds
• Increase in direct costs by decreasing indirect costs and vice versa, if required by agency
• Transfer of training allowance to any other category
• Subcontracting that is not in the approved award – does not include supplies, materials, equipment or general support services

Federal agencies can authorize universities to internally approve modifications such as

• Payment of additional compensation to employees
• Pre-award costs 90 calendar days prior to award
• One time extensions up to 12 months if the agency is notified in writing
• Inclusion of costs that require prior A-21 approval such as equipment
• Carry forward of unobligated balances to subsequent funding period

Internal prior approvals must be documented using the Internal Prior Approval Request Form.

Federal agencies may restrict the transfer of funds among direct cost categories for awards in which the Federal share exceeds $100,000 and cumulative amount of such transfers exceed 10% of the total budget.

Billings:
Invoicing sponsors is a major responsibility of SPA. Department personnel should refer all calls and correspondence regarding invoice submission to SPA. Department personnel and PIs should never invoice a sponsor nor promise an invoice by a certain day.

Monthly invoices are prepared based on the expenditures on the ledger sheet. Departments should review their ledger sheets monthly. Final invoices can be prepared based on expenditures incurred but not recorded on the ledger if the supporting documentation such as copies of invoices and personnel action forms are sent to SPA in time to submit (including mail time) the final invoice by the required due date to the sponsor.

Normally final invoices for federal projects are due within 90 days. Most state agencies require that we submit the final invoice between 5 – 45 days after the expiration date. June invoices for State agreements are generally due between July 1 and July 15. All June expenditures must be included on the June invoices to state agencies even if the agreement has not expired. Departments must send to SPA copies of all expenditures incurred by June 30 but not recorded on the June ledger.

All reconciling items must be coordinated with the assigned SPA contact. The COA screen entitled COASPA (F3 key) will display the assigned SPA contact person.

Budgets/RGEs:
After the fully executed agreement is received in SPA, the Record of Grant Establishment (RGE) is prepared based on the agreement and approved budget. The cost sharing commitment in the budget is recorded on this document along with other essential information as noted below:

• Name = individual who established the account.
• Account Title = Name of sponsor.
• LSU Account Number = XXX-XX-XXXX (If scholarship/fellowship and tuition and fees will be charged, please complete and return form AS498: Request for Scholarship).
• Beginning Date = Start date of the agreement as specified in the agreement. No charges may be incurred prior to this date.
• Grant Expiration Date = Expiration date included in the agreement. No charges may be incurred after this date unless the account is an expired fixed price account.
• Proposal Number = The number assigned by the Sponsored Program System for the proposal (for Baton Rouge campus).
• GR NO (Grant Number) = Sponsor’s contract/award number.
• Grant Contact = The grant analyst in SPA. This is the person responsible for invoicing and monitoring expenditures on the account.
• Principal Investigator (PI) = The person responsible for the project. The PI is usually named in the agreement. If not, the PI should be listed in the proposal and on the Proposal Routing and Approval Form (PRAF).
• F & A Cost Rate = The rate used to calculate Facilities & Administrative (F&A) Costs included in the approved budget.
• Fringe Benefit Rate = The rate used to calculate fringe benefits included in the approved budget. Contingent Labor and WAE rate is 7.65%.
• Cost Sharing Flag = A flag to indicate if the account has required cost sharing. If cost sharing is indicated, the appropriate cost sharing letter(s) and form(s) should be attached to the RGE for completion and return to SPA.
• Cost Sharing Rate = A percentage of the total award required to be cost shared. A cost sharing rate is normally used for most National Science Foundation (NSF) accounts that require a minimum of 1 % of the total award to be cost shared. Proposals submitted on or after June 1, 2007 will not have the statutory 1% cost sharing requirement.
• Cost Sharing Amount = Cumulative cost sharing commitment required to be documented.
• Billing Cycle = Frequency of invoicing.
• Billing Type
• CR = Cost Reimbursable – Unused grant funds must be returned to sponsor.
• FP = Fixed Price – Unused grant funds may be retained by the University. All associated project costs must be charged to that project
• Comments = Any pertinent information relating to the award.
• Cost Sharing Breakdown
• Budget Breakdown

Three copies of the RGE are mailed to the Dean’s Office or Grants Coordinator (Dean’s Office, PI, or Bookkeeper). The RGE should be reviewed to ensure that all information is correct. If something is incorrect, the department should contact the individual in SPA who established the account as indicated on the RGE.

Consulting Services:
If a principal investigator wishes to have a consultant help with a portion of the project, a contract is required. Consulting services contracts should not be performing a significant portion of the scope of the award. In that case, a subcontract would be required.

Corrections/Cost Transfers:
The administration of cost transfers is extremely important and sensitive when federal funding is involved. A cost transfer is an after-the-fact reallocation of an expenditure from one account to a sponsored project via journal voucher (CJ or SJ) or personnel action form. Although it is the policy of LSU that expenditures should be charged to the appropriate sponsored project when first incurred, there are circumstances when it may be necessary to transfer expenditures to a sponsored project within 90 days from the end of the month in which the original charge was recorded. To be allowable, cost transfers must be timely, fully documented, conform to University and sponsor allowability standards, and have appropriate authorized signatures. Federal agencies are especially concerned that costs can be specifically identified with the funded activity they benefit.
Office of Management and Budget (OMB) Circular A-21 establishes principles for determining costs applicable to grants, contracts and other agreements with educational institutions. OMB Circular A-21 explicitly states that expenses “…may not be shifted to other sponsored agreements in order to meet deficiencies caused by overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the sponsored agreement, or for other reasons of convenience.”
In order for LSU to meet federal requirements, it is necessary to identify and correct errors in allocation of direct costs charged to the incorrect account in a timely and consistent manner and to provide proper documentation. At no time should sponsored project accounts be used as holding accounts for expenditures which will subsequently be transferred elsewhere including projects for which the notice of award or the new account number has not yet been received. A tentative account should be requested in these situations.
To comply with allowability and allocability requirements of OMB Circular A-21, it is necessary to explain and justify the transfer of charges. An explanation which merely states that the transfer was made “to correct error” or “to transfer to correct project” is not acceptable. The reason(s) why the expenditure was initially charged to the incorrect account and how it benefits the account being charged must be included in the justification on the AS226 (non-payroll expenditures) or AS227 (payroll expenditures). Requests for cost transfers to be processed beyond 90 days must include an explanation of the extenuating circumstances that prevented the cost transfer from being made timely and require additional approvals. Frequent, tardy, unexplained or inadequately explained transfers can raise serious questions about the propriety of the transfers and our accounting system and internal controls. The cost transfer forms (AS226 and AS227) and system of approval signatures was developed to ensure LSU’s compliance with the above regulations.
Cost Sharing:
Cost sharing and matching are defined as that portion of sponsored project costs not borne by the project's sponsor. When the University shares in the costs of a sponsored project, it generally does so by committing the effort of University personnel to a project without charging the project for those costs. Office of Management and Budget Circulars A-21 and A-110 require that all cost sharing and matching on sponsored projects be properly documented in the University's accounting records. Cost sharing or matching requirements are normally budgeted in the following categories: salaries and wages and related fringe benefits and Facilities & Administrative Costs.

Types of Cost Sharing

• Personnel Costs
• Non-Personnel Costs
• Other Grants
• In-kind from Outside Parties

Cost Sharing Documentation:

• The PI of a sponsored project is responsible for documenting the matching or cost sharing commitment for the project or coordinating such documentation during the project period through his/her department chair.

• That portion of a cost sharing commitment which is comprised of personnel costs must be documented on Personnel Activity Reports (PARs) in order to qualify as cost sharing. PARs are an after-the-fact certification of time and effort that should reasonably reflect the activity of that individual. After receiving the PAR from the PI's department, SPA will automatically add the related fringe benefits and Facilities & Administrative Costs when reporting cost sharing expenditures to the sponsoring agency. (Note: Any University employee who spends 5% or more of his or her time on a specific sponsored project should have that portion of his or her salary charged directly to the sponsored project or as cost sharing to the sponsored project.)

• Non-personnel costs used as cost sharing or matching must be documented in a separate account created for that purpose. Allowability of costs incurred to meet matching requirements will be determined by the terms and conditions of the award document.

• Other sponsored agreements may be used as cost sharing or matching if written approvals from each sponsor are obtained.

• In-kind contributions (e.g., equipment, supplies, and personnel) from third parties may also be committed as cost sharing or matching if the value of such contributions can be properly documented. The preferred method of documentation requires the contributor to submit signed and pre-numbered invoices indicating the amount due is zero to the PI who approves and forwards each invoice to SPA. Form AS560 is also available for documentation of in kind cost sharing.

• In order to use funds as cost sharing or matching to a sponsored project, their function must match the function of the sponsored project. Thus, sponsored research projects must be matched by research funds (1 in the seventh digit of the University account number), training projects by instruction funds (0 in the seventh digit), and public service projects by public service funds (2 in the seventh digit). Using the same logic, non-federally funded restricted accounts may also be used to satisfy a cost sharing obligation in a like function.

• Cost sharing or matching funds must be expended within the project period of the sponsored agreement which they support.

• Funds can only be cost shared to one project.

• Generally, sponsor funds and cost sharing funds should be spent at about the same rate throughout the project period. For example, when 10% of the sponsor funds have been expended, 10% of the cost sharing funds should have also been spent. This documents that equal support is provided by both parties throughout the project.

Equipment:
Equipment is defined as nonexpendable tangible personal property with a useful life of one year or more and an acquisition cost of $5,000 or more. However, expendable equipment with a useful life of one year or more and an acquisition cost between $1,000 and $4,999 will be tagged in LSU’s property management system.

General purpose equipment is that which is not limited in use only to research, medical, scientific or other technical action. These expenditures are unallowable as direct charges to sponsored agreements unless approved in advance by the sponsoring agency or for which a Request for Prior Approval Request Form has been processed and approved. Examples of general purpose equipment are office equipment and furnishings, computers, copying and printing equipment. Expenditures for general purpose equipment are unallowable unless the equipment is primarily or exclusively used in the actual conduct of scientific research.

Special purpose equipment is an item with a unit cost of $5,000 or more that is used only for research, medical, scientific, or other technical action. Capital equipment expenditures are allowable as direct charges if approved in advance by the sponsoring agency or on an Internal Prior Approval Request Form. All special purpose expendable equipment (<$5,000) is allowable because it is considered a supply. If between $1,000 and $4,999, it is inventoried.

Cost overruns in equipment prices are permissible. These instances will be reviewed on a case-by-case basis. Sponsor approval may be required. If the purchase is a different model than the equipment budgeted, no additional approvals are required.

Splitting the cost of equipment items between two sponsors is strongly discouraged. There could be a problem with title to the equipment.

Principal Investigators acquiring government-furnished equipment (GFE) must notify the Office of Property Management in writing that such equipment has been received from the Government. These items must be tagged and recorded in the Property Management system. The PI must also inform Property Management when GFE is returned. Copies of correspondence related to GFE should be routed to Sponsored Program Accounting. Refer to BOP 4-5 (Rev. 12/92) for additional information and guidelines.

Exemptions:
Fee exemptions are allowable only when approved by the sponsoring agency. All scholarships must have a separate account with a function 7. Object code 6640 is used for tuition, fees, housing, food service, and books. Supplies and travel will be set up on a separate account.

The department must complete an AS498 Request to Establish Scholarship which should be returned to Elahe Russell. Once an exemption code is set up by Student Aid, Elahe will load the exemptions for the appropriate students.

Each month an exemption report is printed for each account. This report must reconcile to the monthly ledger. If it doesn’t balance, differences must be investigated. If a student is appointed a fellowship then their tuition must be covered by a sponsored agreement if approved by the sponsor.

Journal vouchers cannot be done to correct the account # for scholarships (object code 6640). The department must process entries through SAE (one entry removing the award from the incorrect account # and another entry giving the award on the correct account #). Both entries must be processed at the same time with a note for Student Aid to release both entries together so that the student's account is not impacted.

Expanded Authorities:
To determine if an award has expanded authorities, the award must follow OMB Circular A-110 which authorizes federal agencies to waive prior written approvals required by OMB Circular A-21 and gives Universities authority to internally approve such requests.

• Federal grants have expanded authorities (special terms and conditions of the award may limit the prior approval authority of the University).
• Federal cooperative agreements have expanded authorities if they follow OMB Circular A-110 (special terms and conditions of the award may limit the prior approval authority of the University)
• Federal contracts do not have expanded authorities and OMB Circular A-110 does not apply

In order to exercise expanded authorities, the Internal Prior Approval Request Form should be used. Justifications should describe the requested actions and demonstrate:

• It’s necessary to achieve the project objectives supported by the grant.
• That the request is consistent with the award terms and conditions.
• That it is consistent with the awarding agency and University policies.
• It represents an effective utilization of resources.
• It does not constitute a change in scope or key personnel, or require additional funding for the grant.

Fabrication:
Object codes 7490 (<$5,000) and 7495 (>$4,999) are used to accumulate the costs of a piece of equipment that is to be fabricated. Once the fabrication has been completed, the PI should notify Property Management to tag the equipment and increase the value of the equipment by the items that were capitalized. If the items were charged to object code 4250, the department must do a journal voucher to change the object code to 7490, and SPA will send a copy of the JV to Delwin Lacroix in Property Management.

Fellowships:
Fellowships are cash awards frequently given for academic excellence but sometimes on the basis of need.  Fellows do not have a work component.

Object 6630 (Graduate students) and 6680 (Undergraduate and non-LSU students). Fellowships are allowable only when approved by the sponsoring agency. All Fellowships must be loaded on the SAE (Student Award Entry) system and must have a separate account with a function 7.

The department must complete an AS498 Request to Establish Scholarship which should be returned to Elahe Russell. Once a transaction code is set up, the department will load the student’s award on SAE. To view awards on SAE:

• Go to SAEMENU
• PF 2 To find an award document
• View TRX CODE (enter)
• Select document (enter)

Fellowships are paid on the following dates but will usually hit the ledger a few days before therefore the payment on the 1st of the month will usually show up on the ledger preceding that month:

Fall term

• August (one week before class begins)
• September 1
• October 1
• November 1
• December 1

Spring term

• January (one week before class begins)
• February 1
• March 1
• April 1
• May 1

Summer term

• June (one week before class begins)
• July 1

If a department decides to pay the students less than 5 installments they will be paid beginning the first payment date. For example: 2 installments will be paid on August 1 and September 1 or 3 installments will be paid on August 1, September 1 and October 1.
Each month an exemption report is printed for each account. This report must reconcile to the monthly ledger. If it doesn’t balance, differences must be investigated.
Journal vouchers cannot be done to correct the account # for scholarships and fellowships (object codes 6640, 6630 & 6680). The department must process entries through SAE (one entry removing the award from the incorrect account # and another entry giving the award on the correct account #). Both entries must be processed at the same time with a note for Student Aid to release both entries together so that the student's account is not impacted.
Fixed Price Agreements:
Fixed Price agreements are not based on expenditures, rather the sponsor pays a fixed amount to perform a task or services. Financial reports are not submitted on fixed price agreements. If a request for a financial report is received, immediately notify the SPA contact. Unexpired fixed price agreements should be treated like a cost reimbursable account in case the agreement is terminated. Expenditures relating to the agreement must be charged to the account. If equipment is purchased but not budgeted, justification must be provided and the PI understands that if the agreement should terminate early, it becomes cost reimbursable and the department will be responsible for the unallowable charges. If salaries and wages are budgeted, they should be charged to the project.

Any account that has an unexpended balance of less than $100 will be closed 90 days after the expiration date with the balance realized as F&A costs. If the balance is greater than $100, 90 days after the expiration date, the remaining funds budgeted for F&A will be recovered. After that is accomplished, the PI is free to spend the remaining funds for 3 years as he chooses according to university policies and procedures. The balance should be a minor amount. See FASOP AS-08 (Fixed Price Agreements).

Fixed price accounts that have cost sharing must meet their cost sharing requirement by the expiration date.

Forms:
AS 226: Request for A Cost Transfer - Revised
AS 227: Justification for Retroactive Personnel Forms - New
AS 492: Request for a University Foundation Account Number
AS 494: Request for a Tentative Account Number
AS 498: Request to Establish Scholarship/Fellowship
AS 522: Notice of Gift to LSU
AS 529: Internal Rebudget Request (LBR Enhancement Contracts)
AS 530: Internal Rebudget Request (LBR Research/Development Contracts)
AS 550: Request for Prior Approval to Charge Maintenance/Repair Costs to Sponsored Projects
AS 555: Rebudget Request
AS 560: Certification of In Kind Cost Sharing - New

Gifts:
When money is deposited into a gift account, please send a completed AS 522 along with the check. If no AS 522 is completed and attached, the check will be deposited into a clearing account. The departmental contact will be sent a letter requesting that an AS 522 be completed prior to depositing the funds into the gift account. Once the completed AS 522 is received in SPA, the funds will be moved out of the clearing account and into the appropriate gift account.
Each month, SPA mails acknowledgement letters to the donors.
Internal Transactions (ITs):
Internal Transactions are used by departments when billing other departments for supplies and/or services.

Only departments which are a University approved service center are allowed to charge federally sponsored program accounts via an IT.

When processing cost transfers involving ITs, the cost center policy must be followed if transferring from a non-federal account to a federal or federal pass thru account.

Restricted accounts cannot be pre-invoiced. In other words, all services must have been rendered before they can be reimbursed.

IRS Tax Exemption Letter

Key Personnel:
Key personnel is defined as the principal investigator and/or co-principal investigator or anyone named in the award documents. According to OMB Circular A-110, Subpart C.25, key personnel are not allowed to decrease their level of effort by more than 25% or be absent for more than three months. If they do, they must notify the awarding agency. This applies to all federal and federal pass-thru funds. SPA will monitor these commitments and will contact the department that notification to the sponsor is required if the commitments are not met.

LA Board of Regents Contracts:

• Research & Development and Enhancement Contracts

Rebudgeting (for contracts beginning 06/01/03)

• No internal budget revisions
• Rebudgeting must be necessary for the successful completion of the project
• Funds must be rebudgeted into line items that are allowed by the RFP
• Rebudget must not contravene a funding stipulation                  
•  
• LBR approval is required for rebudgeting of the following:

• Payment of additional or supplemental compensation (R&D-for personnel) (ENH-for research and clerical personnel only)
• Changes greater than 20% in the total of salary or personnel line items
• Reductions in graduate students
• Subcontracts not included in the approved budget
• Equipment not listed in the approved budget

• The funding stipulations on the account can be found after Appendix A of the contract. Funding stipulations place limitations on rebudgeting certain categories. If funding stipulations include restrictive language: i.e. limited to, capped at, not to exceed, internal rebudget requests over the restrictive amounts/categories cannot be approved. In some cases, the funding stipulations simply iterate the categories which have been reduced to justify/arrive at a recommended funding amount. Since there is no indication of an intention to restrict, or cap the categories, internal rebudget of these categories is allowed.
•  
• Examples of funding stipulations are as follows:
•  

• Travel is capped at $1,000 per year
• Summer salary support for the PI is limited to one summer month support per year
• Graduate assistant must be maintained at a minimum salary per year (Example: $12,000 per year)
• Supplies should be sought from industrial supporters
•  
• In situation 1, the PI is limited to $1,000 per year or $3,000 for three years for travel. If he exceeds $3,000, he can request from LBR approval to increase the travel budget. This request must be routed through OSP and cannot be approved internally because it contravenes a funding stipulation.
•  
• In situation 2, the PI is limited to one month summer salary support per year or three summer months for three years for summer salary support. As in the situation above, he can receive less than one month support the first year, a month and a half the second year and one month the third year; as long as he does not exceed two summer months in one year (per the RFP).
•  
• In situation 3, the graduate assistant must receive a minimum salary of $12,000 per year. If the PI is going to pay him less than that amount or if he could not find a graduate assistant and wants to rebudget out of the graduate assistant category, he must submit that request to LBR through OSP.
•  
• In situation 4, LBR is recommending that the PI seek other options for funding supplies. Therefore, he cannot charge any supply expenditures to this account. The PI can request LBR approval to purchase supplies.
•  
• The funding stipulations can vary, but the above situations are provided as guidance.
•            
• LBR requires approval for all pieces of equipment purchased. Therefore, if the PI purchases a piece of equipment that was not in his original budget, he must submit a request to LBR for approval. In addition, if the PI has funds left in equipment because some pieces were less expensive than originally estimated, he will have to secure LBR’s approval to purchase any additional equipment items. These requests must be routed through OSP and must be received by the LBR 60 days prior to the expiration date of the contract. However, he can internally rebudget to another category if he is not purchasing any additional equipment.
• Equipment costing <$5,000 is considered supplies and should be reported in the supply category.
•  
• For contracts beginning 06/01/03 Rebudgeting of Matching Funds is allowed except when:

• Graduate student are reduced
• Rebudgeting contravenes funding stipulations specifically pertaining to matching
• Total amount of matching funds are reduced
• For R&D contracts, if equipment match amount is reduced below the required 25%

The PI cannot use items that are unallowable per the RFP as cost sharing. For example, if the RFP disallows postage, he cannot charge postage to the cost sharing account.

• Graduate Fellowships

There are two types of Graduate Fellowship contracts: Traditional Graduate Fellows (GF), which last 5 years and Graduate Fellowships for Teachers (GFT) which last two years. These contracts begin on August 1 and are budgeted one year at a time. The graduate fellow can only be paid for four years on a GF and one year on a GFT.

Graduate Fellowships allow the PI flexibility in recruiting superior students. LBR approval is required for any awards made after the first semester of the second academic year. All status reports and results of recruitment must be routed to the Graduate School. The Graduate School sends the reports to SPA to accompany the invoice to LBR.

Deadlines:
October 1 – Results of Recruitment Activities and Information on Students Recruited (first year only); Status Report; Invoice
January 31 – Cumulative Status Report and Invoice
May 30 – Annual Progress and Financial Status Reports
August 31 – Final Project Report
October 31 – Final Expenditure Report

• Federal Pass Through Contracts

• May have two account numbers if funded by federal source and LBR
• Rebudgeting requirements are usually the same as R&D and ENH contracts
• Federal funds are usually invoiced quarterly based on actual expenditures

Deadlines:

• 60 days prior to expiration – requests for no cost extensions and rebudgeting requiring LBR approval must be received by LBR
• On annual anniversary date, an annual expenditure report may be required by the contract
• 15-60 days after expiration the final invoice for federal funds is due to LBR
• 30-60 days after expiration the final expenditure report along with the refund for any unexpended funds is due to LBR

• Special Programs

ATLAS
HEF
PSR
PFUND
VAA

Ledgers:
Ledgers should be reviewed on a monthly basis for completeness and accuracy to ensure expenditures are properly allocated to the project.

The ledger is divided into five sections as described below:
1. General Pertinent Information
a. Account Number
b. Bill Type
c. Bill Cycle
d. As of Date
e. Grant Contact
f. Grant Control Number
g. Expiration Date
2. Subsidiary Summary Ledger
a. Budget
b. Current Month Revenue and Expenditures
c. Cumulative Revenue and Expenditures
d. Encumbrances
e. Ledger Balance = Budget less Cumulative Exp less Encumbrances
f. Tentative Transactions
g. Tentative Balance = Ledger Balance less Tentative Transactions
3. Subsidiary Detail Ledger
a. Current Month Activity
4. Tentative Subsidiary Detail Ledger
a. Tentative Transactions
5. Outstanding Order Summary
a. Encumbrances and Commitments

University policy states that restricted accounts should not be in an overdraft status. If an account is overdraft, immediate attention is required to clear the overdraft. However, some accounts may be in an overdraft status due to extenuating circumstances (multi-year or incrementally funded agreement or a pending request for additional funding). Overdraft notices are sent four times a year to Deans and Directors.

Maintenance/Repair Costs:
Equipment maintenance/repair costs are not allowable as a direct charge to federally funded projects, to include federal pass through. There is however one exception - maintenance/repair costs for equipment dedicated to the project through which the equipment was acquired are allowable as direct costs to that project. (AS550 not required.) This includes accounts that are continuations.

Maintenance/repair costs are permitted to be charged as direct costs on non-federal agreements when used exclusively on a sponsored project or proportional benefit can be established by departmental documentation. The PI must submit form AS550 to SPA for review to determine whether the charges meet the test of reasonableness, allocability, and allowability. If the item was purchased on a different account than the one being charged for the maintenance or repair, the justification must explain why the account being charged should pay for the maintenance or repair.

Certain agencies, such as Board of Regents, generally do not allow these charges. Check the award and the budget to ascertain what the agency allows and does not allow.

These rules also apply to cost sharing accounts.

Program Income:
Program income is gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the award. Income (i.e. registration fees) generated from a conference sponsored by a sponsored agreement is program income.

Pursuant to federal regulations, all revenues and expenditures associated with program income must be documented in the University’s official accounting records.

A source 8 account will be established by SPA for recording program income.

If a program income budget is included in the proposal, it will be recorded in GLS. However, the PI can only spend the amount collected which can be more or less than budget. If no program income budget was included in the proposal, it is budgeted as the funds are received.

Program income accounts are always cost reimbursable even if the related sponsored agreement is fixed price.

Use the same allowable cost rules and regulations that are used for that sponsored agreement.

Fringe benefits and F&A Costs are charged to program income accounts.

Time frame of expenditures on program income accounts must be within time frame of the sponsored agreement.

If a balance remains at expiration, expenditures should be transferred from the sponsored agreement to the program income account. If there are no expenditures to transfer, the balance must be refunded to the sponsor.

Scholarships:
Scholarships are cash awards frequently given for academic excellence but sometimes on the basis of need. 

Subcontracts/Subrecipients:
Object codes 5705 is used for the portion of the subaward that is $25,000 or less and object code 5706 is used for the portion greater than $25,000.LSU is only allowed to recover F&A costs on the first $25,000 of a subcontract.

Per OMB Circular A-133 Section B.210, a subrecipient/subcontractor relationship exists when a portion of the scope of work is transferred to another entity. The following criteria is used to determine if an award is to be made to a subrecipient/subcontractor (for purposes of applying F&A costs to only the 1st $25,000 of the subaward) or to a provider of goods and services (use professional services or operating services object codes).

An organization is a subrecipient/subcontractor when:

• It must meet the objectives of the program,
• It has decision making responsibilities,
• It must adhere to program compliance requirements, and
• It must use the funds to carry out the program as compared to providing goods or services for a program.

Characteristics of an organization providing goods and services are when the organization:

• Provides the goods and services within their normal business operations,
• Provides similar goods or services to many different purchasers,
• Operates in a competitive environment,
• Provides goods and services that are ancillary to the program, and
• Is not subject to compliance requirements of the program.

Subcontractor Invoices – PI Checklist

• Acceptable technical reports and deliverables have been submitted in accordance with

subcontract requirements

• Dates on the invoice identifying the billing period (not the invoice date) are within subcontract period of performance
• Invoice format (e.g., major cost categories, lump sum, milestones, etc.) is in the format  required by the subcontract
• Invoice frequency (i.e., monthly, quarterly, at final, etc.) is in compliance with subcontract

requirements

• If required by the subcontract, invoices reflect the source of funds (ex: NASA, LEQSF – two separate accounts) and invoiced amounts are charged to respective LSU accounts
• Expenditures are allowable and within the re-budgeting limitations set forth in the subcontract
• If cost reimbursable, the cumulative amount equals the amount previously billed plus the current billing amount
• Cost sharing certification has been attached to the invoice, if applicable
• The invoice has been certified and signed by the authorized institutional representative
• If withholding is required by the subcontract, each invoice has been reduced by the retainage (% of amount invoiced)
• The final invoice has been marked “Final”, cost sharing has been met, the close-out certification has been submitted, and final deliverables have been submitted and accepted before the final invoice is approved for payment

If any of the above items are not satisfactory, the invoice should be returned to the subcontractor for correction. Properly prepared invoices and cost sharing certifications should be approved by the Principal Investigator or his designee and forwarded to SPA. Invoices must include a completed Accounts Payable approval stamp before submission to SPA. Additionally, the receiving report must be completed in PRO. SPA will forward the approved invoice to Accounts Payable for payment.