Operating Policy and Procedure
HSC OP: 65.01, Establishing Sponsored Program Funds
PURPOSE: The purpose of this Health Sciences Center Operating Policy and Procedure (HSC OP) is to define the process to establish accounts for programs receiving financial support from external sources (sponsored programs).
REVIEW: This HSC OP will be reviewed on May 15 of each odd-numbered year (ONY) by the Directors of Accounting Services and Sponsored Programs, with recommendations for revision forwarded to the Senior Vice President for Research and Innovation and the Executive Vice President for Finance and Operations.
POLICY/PROCEDURES:
1. Departmental Responsibilities:
a. To establish a sponsored program fund, the project director, principal investigator or other assigned personnel must submit a new fund request via the New Fund Request System, attaching all required documentation as listed in Section 3.
b. Under certain limited circumstances, principal investigators may request the establishment
of a fund prior to receipt of the grant award notice. A fund may be established 90
days prior to the award’s anticipated start date when there is an expectation that
an award is forthcoming, there is a need to incur costs or establish accounting or
budget information prior to the award start date and pre-award costs are allowable
by the sponsor.
In this case, the department must notate in the New Fund Request System, “It is expected
that a grant award notice is forthcoming. The Principal Investigator’s department
will assume all costs not funded by the sponsor. These costs will be covered from
FOP .”
c. The project director, principal investigator or other assigned personnel will be responsible for establishing a project budget in compliance with HSC OP 65.03.
2. Office of Sponsored Programs Responsibilities:
a. OSP will review the new fund request along with the documentation for completion and authority to establish the project. If the actual grant award notice has not been received, whenever possible, information should be obtained in writing from the sponsor and should include the award number, the time period of the award, the amount to be awarded, and the estimated date of receipt of the actual award. OSP is responsible for sending the grant award notice to Accounting Services when received.
b. OSP will notify Accounting Services when any changes are made to the grant such as extensions, cost share changes, expected award receipt date or changes to sub-recipient information. Supporting documentation for any such changes must be submitted to Accounting Services by OSP as appropriate.
c. OSP serves as the liaison between the funding agency and the institution.
3. Accounting Services Responsibilities:
a. Accounting Services will review and process a new fund request once all required information and documentation is received with the new fund request. Required information and documentation includes, but may not be limited to:
(1) Grant Award Notice/Letter
• If the award notice has not been received and the fund meets the conditions as stated
in Section 1(B) above, Accounting Services will set up the fund no earlier than 90
days prior to the expected award start date.
• OSP is responsible for sending the grant award notice to Accounting Services.
(2) Sponsor approved budget from award notice/grant proposal including indirect cost calculations (refer to HSC OP 65.02).
(3) Cost Share/Matching Information, if applicable (Refer to HSC OP 65.11)
(4) Sub-recipient information, if applicable (Refer to HSC OP 65.09)
(5) Project start and end date, PI name, salary cap amount, as applicable.
(6) Financial report due dates, scheduled payment dates, as applicable.
(7) Grant guidelines for private agency, as applicable.
b. The new grant fund number and new cost share fund number (if applicable), will be emailed to all parties involved once approved by Finance Systems Management (FSM).