Financial compliance with extramural funds

The Principal Investigator (PI) is the individual with primary responsibility for:

• The scientific integrity and management of the sponsored project.
• Financial management of project funds.
• Adherence to all internal university policies.
• Adherence to externally imposed sponsor terms and conditions including reporting and record keeping requirements contained in the award document.

Financial Management Activities

• Ensuring the allowability, allocability, and reasonableness of all expenditures; only costs which benefit the project may be charged to the project.
• Ensuring that expenditures direct charged to sponsored project are consistent with the approved budget and not duplicated in the Facilities and Administrative (F&A) Cost Rate such as administrative and clerical salaries (unless the cost is associated with a major project as defined in A-21 Exhibit C).
• Requesting the establishment of an advance account if a delay in receiving an award is expected and project work must begin before the award is executed. Use the request to expand in advance of receipt of award mechanism. Reference: UC Davis Policy and Procedure Manual Section 230-06, Advance Account Request. Reviewing monthly and/or daily reports and identifying and resolving errors on the account in a timely manner.
  • Process eliminates necessity of cost transfers.
  • Provides for expedited reimbursement of expenses incurred once the award is received (no delays due to cost transfers).
  • Must guarantee to fund for expenditures incurred if the award is not executed.
  • If funding period differs from what was expected, pre-award costs may not be allowed.
• Monitoring financial status of project — Are expenditures aligned with project period and progress?
• Reviewing effort reports and certifying effort in a timely manner.
• Submitting all required reports on a timely basis (progress reports/technical reports).
• Ensuring that cost transfers are minimized and when necessary are initiated within 120 days of the original recording of the expense.
• Requesting no-cost extensions in accordance within timeframe specified by agency if more time is needed to complete project.
• If appropriate at budget period end, requesting remaining balances be carried forward.
• Ensuring overdrafts on one sponsored project are not transferred to another sponsored project because of funding availability. Direct costs charged to project must always benefit/support the project charged.
• Preparing for timely financial closeouts — the process begins at the beginning of the award by managing project funds on a continuing basis.
• 90 days before award end date prepare for final report submissions. Most awards require that a financial report be filed 90 days after award end date.
• Ensuring that equipment reporting requirements are fulfilled — know the terms and conditions of the award.
• Ensuring cost sharing commitments are met.
• Monitoring subcontracts issued under prime agreement.
• Ensuring the appropriateness and accuracy of all effort expended on the sponsored project by certifying direct-charged and committed cost-shared effort. Effort certified on sponsored projects must be reasonable and reflect actual effort in relation to all other university activities that you are engaged in.