CS. Financial Management of Grant Funds

PURPOSE

This policy outlines general administration requirements and procedures of the federal and non-federal grants and contracts. The Grant Accounting Office, under the oversight and direction of the Vice President for Finance and Administration (VPFA) and the Controller, is generally responsible for administration of the fiscal aspects of grants and contracts such as maintaining the Restricted Fund General Ledger, establishing budgets for approved projects, reviewing and approving personnel action forms, reviewing and approving requisitions for purchases, reviewing and approving travel itineraries, and preparing and submitting the necessary forms and financial reports. The VPFA is responsible for the development and negotiation of the indirect cost rates. All other aspects of grant and contract administration are coordinated through the Vice President for Institutional Advancement (VPIA) and the President’s Office.

 

RESPONSIBLE PARTIES

For each grant, the person responsible for insuring compliance with the guidelines of the granting agency is designated in advance. Some grants allow wide latitude in making budgetary changes during the grant, while others require prior approval by the funding agency. It is essential that these guidelines be followed accurately. In case of questions about whether a proposed change requires approval by the funding agency, consult the project director, for both federal and state grants, and consult the VPIA for any foundation or corporate grants.

 

REVIEW AND APPROVAL OF GRANTS

The VPFA, Grant Accountant, and President must review and approve all proposals for grants. In addition, the Institutional Advancement Office and/or the South Plains College Foundation are responsible for coordinating grant-seeking and application process for private grants from foundations, corporations and other philanthropic organizations. The Grant Approval Form must be completed and submitted for approval with all grant proposals. The Grant Accountant reviews and approves the budget portion of all proposals with budgeted employee compensation costs, benefits, or indirect cost amounts.

 

CASH DRAW DOWNS AND ACCOUNTING FOR GRANT FUNDS

The College does not normally receive grant funds in advance of expenditures. The majority of funds are requested on a reimbursement basis. The Grant Accountant tracks expenses and informs the Director of Student Business Services to draw down any federal funds from the Department of Education G5 website. The Grant Accountant files all financial reports required and the College is reimbursed primarily on a quarterly or monthly basis.

Federal funds shall be expended in accordance with federal laws, guidelines, and regulations or as specified by the funding source. Grant funds shall be expended solely for the project approved by the grant application. Funds from grants may not be loaned to other projects or program.

All grant proposals must be approved by the funding agency prior to the expenditure of any funds. Budgetary accounts shall be established in advance of expenditures.

Financial tracking and reporting on grant funds shall be administered by the Grant Accountant in accordance with generally accepted accounting procedures and the regulations and requirements of the applicable funding agency.

 

PURCHASING AND INVENTORY

All purchases made with federal, state or local grant funds shall be in compliance with applicable laws and the purchasing policies and procedures of the College. Equipment purchased with federal or state funds shall be inventoried and recorded as federal or state property.

 

TIME AND EFFORT REPORTS

South Plains College is required to have supporting documentation for any compensation charges made to grant funds. Each funded staff position committed by the College for any percentage of time in any institutional awarded grant project must complete time and effort reports. These reports must be completed monthly and evaluated, approved, and signed by appropriate supervisor. These reports are to be kept in the Grant Accountant’s Office or Project Director’s office for audit purposes.

 

PERSONNEL

If a new employee must be hired for a grant, the Grant or Project Director shall contact the Human Resource Office to obtain proper hiring procedures. South Plains College benefits, including vacation, sick leave, and personal leave apply to all grant employees.

 

STEWARDSHIP AND PROGRESS REPORTS

In collaboration with the Grant Accounting Office, the Institutional Advancement Office shall prepare an internal Grant Activity Report.

The Grant Accountant is responsible for preparing the required expenditure reports for federal and state grants and contracts. The Project Director is responsible for preparing any program reports required by the grant.

The VPIA is responsible for preparing stewardship reports for grants from corporations and foundations. The financial data included in these reports should agree with the College's general ledger data and should be verified and confirmed by the Grant Accountant Office.

All state and federal grant reports shall be reviewed and approved by the Vice President for Finance and Administration and the College President before final submission. Actual filing of all such reports with the federal funding agency shall be the responsibility of the Grant or Project Director.

 

RECORDS STORAGE AND RETRIEVAL

Records pertaining to Restricted Fund operations shall be maintained by South Plains College in accordance with federal guidelines on record retention.

 

Revision Issued: February 11, 2013

Approval: Executive Council

 


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