Background

Current business practices in the administration of federal and non-federal grants do not provide systematic controls to support the high level of fiscal responsibility expected by the Boulder campus. As a result, many CU researchers continue spending after the authorized end date of an award even though this is not in compliance with sponsor requirements. This presents risks to the university such as potential loss of sponsor funding, or unallowable expenses that must be covered using other sources. 

Why Is It Changing?

On October 22, the CU System Office is implementing changes to the PeopleSoft HCM and Finance systems that will provide system-level controls to help prevent unauthorized spending after the end date of a sponsored award.  This technical change will assist us with the appropriate management of external sponsor dollars, allow us to confidently mitigate our compliance risks, and demonstrate that CU Boulder takes fiscal stewardship seriously. 

This change will also streamline the closeout process by reducing the number of unallowable charges that need to be moved.  With that efficiency, CCO and departments can provide a more timely review of current expenditures. 

How Can We Help?

We acknowledge there are legitimate reasons why spending may occur after the current end date of an award, particularly when extensions are expected. Boulder campus policy and business processes are being updated to accommodate situations when spending should continue.  In doing so, we are bridging the gap created by the need for research to continue and any delay of official sponsor notification for an award’s extension.  

To give PIs the information they need to be more proactive as an award end date approaches, a report was developed to notify PIs which of their awards is ending within the next 90, 60, and 30 day windows.  We began sending this report last July and are now updating the content to provide more useful data such as remaining funding and potential extension options.

Key Points:

  • On October 22, changes are being implemented on a university-wide basis that will provide system level controls to prevent spending after an award’s end date.
  • Business processes are being updated to accommodate situations when spending should continue, such as with No-Cost Extensions.
  • After an award’s end date, personnel will still be paid as long as their appointment continues.  The payroll will be charged to a departmental suspense speedtype, a practice that has been in use for years.
  • Compliance with the procedures and policies that govern the receipt and processing of awards, contracts and grants is a core responsibility for our researchers and their support staff.  The baseline expectation is that we are compliant with Federal guidelines and are good stewards of university resources.  This change assists us with that goal.

For more information, the updated policy, and overview of business processes, visit www.colorado.edu/controller/project-status-automation.