Financial Compliance with Extramural Funds

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.