PI Key Terms

PI Key Terms Sponsored Projects Accounting

Accounts Receivable – balance due from a sponsor on an account

Administration and Finance – division of New Mexico State University committed to the University’s mission of instruction, research, public service and extension education by providing support and service to students, faculty, sponsors, and the community.

ARRA – American Recovery and Reinvestment Act of 2009 was an economic stimulus packaged enacted in February 2009 and signed into law on February 17, 2009 by President Barack Obama. It provided stimulus money to research at NMSU accompanied with specific reporting requirements.

Banner – NMSU’s enterprise software and official system of record.

BDMS – NMSU’s state certified document management system which is used for electronic files.

Calendar Year – is defined as beginning January and ending in December

CAS – Cost Accounting Standards- established by the Cost Accounting Standards Board (CASB) for colleges and universities in 1994.

Circular A-21– this circular establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions.

Circular A-110– Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals or Other Non-Profit Organizations. This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and other non-profit organizations.

Circular A-133, Audits of State, Local Governments & Non-Profit Organizations – This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards.

Cognizant Federal Agency – the Federal agency that, on behalf of all Federal agencies, is responsible for establishing final indirect cost rates and forwarding pricing rates, if applicable, and administering cost accounting standards for an organization’s federal awards.

COGNOS – NMSU’s business reporting tool where standard developed reports for Budget, Employee, Finance and Instruction are available.

Cost Sharing – costs incurred but not paid for by the government. It is an explicit arrangement under which the contractor or third party bears some of the burden of reasonable, allowable and allowable contract costs.

Facilities and Administrative Rate (F&A) – also know as the indirect cost rate. The terms are synonymous and are used interchangeable with the indirect cost rate.

FAR – Federal Acquisition Regulation

Fiscal Year – NMSU’s fiscal year begins July 1 and ends June 30

GR Number – Banner’s assigned unique grant number for sponsored awards within the system.

Index – once a GR number is assigned, the next step is to create an index or indices as needed for the award that are more commonly referred to as the account number(s)

Indirect Costs – costs incurred to support the institution’s mission activities that cannot be readily identifiable or directly assigned to a major project or activity with a high degree of accuracy.

Letter of Credit – Federal agencies issue letters of credit to NMSU which allows NMSU to draw on the credit amount for the awarded amount.

ONR – Office of Naval Research – NMSU’s federal cognizant agency. The cognizance assignment is determined by the Office of Management and Budget based on the federal sponsoring agencies that provide the institutions external funding and are subject to review every five years. The agency has the responsibility for reviewing and negotiating F&A rates, fringe benefit rates, the cost accounting standards disclosure statement (DS-2), correcting deficiencies relating to accountability for sponsored programs, and resolving questioned costs.

Principal Investigator – one or more individuals designated by the grantee in the grant application who is or are responsible for the scientific, technical and fiscal direction of the project

Research Centers – research project administration staff at the department level who generally have overall responsibility for the day-to-day management of the award and work with the PI and central administrative offices.

SPA – Sponsored Projects Accounting, a unit under the Senior Vice President for Administration and Finance responsible for the oversight of post award administration.

SPA Accounts Receivable/Special Projects – SPA’s section responsible for crediting awards with the funds received, collection of outstanding invoices, terming, audit requests, effort report certification and financial award closeout.

SPA Fiscal Monitor – SPA’s section responsible for compliant expenditure monitoring within budget, invoicing, financial reports, cost sharing and program income.

SPA System Administration – SPA’s section responsible for the award set-up in NMSU’s Banner financial system, electronic files, and subcontract encumbrances.

Waiver – University policy does allow for the creation of Indexes (FOPALS) on waiver, if certain conditions are met. If the University has received adequate verification to assure that an award is to be received, then the Index (FOPAL) will be established.

Waiver status at the end of an award allows expenses to continue posting in anticipation of a modification.

Source: Business Procedures Manual – section 3.15.15 Expenses for Grants, Contracts and Gift Indexes (FOPALs), Index (FOPAL) Creation in Anticipation of Award/Continuation, and Expenses for Continuation of Projects and/or Anticipation of Modifications.

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