Research Accounting

I. Award Set-up:

OPAM notifies Research Accounting an award has been uploaded to the Kuali system for review.  The award is then reviewed and processed by the Research Accountant (RA) assigned to manage that type of award (RA areas of responsibility). The RA highlights and bookmarks important attributes that are used to set up and manage the award (i.e. billing terms, reporting requirements, budgets, etc.).  These attributes and budgets are entered into Kuali and uploaded to PeopleSoft (PS). A speedtype is obtained; the setup in PS is complete. Award documents are then uploaded in Kuali and are made available for PI’s and Business Managers to view in SUMMIT (see Finding Award Documents in Summit).  The PI and Business Manager are notified via email that the award is available.

As supplements or changes are processed on an award, PIs and Business managers are notified and the additional documents are appended to the original file and are available in Summit.

II. Award Management Process:

During the life of an award the RA works closely with the Business Managers and PI’s to assist in determining if charges are allowable and allocable to the award. 

If it is determined that any expense is disallowed or results in an over expenditure, the department is responsible for transferring the expense to another appropriate funding source.

The RA is responsible for processing invoices and preparing financial reports, as necessary.  If payment is not made timely, the award is referred to the Cash Management/Research Receivable Manager.

III. Award Closeout:

Approximately 60 days prior to the expiration date of an award an email reminder is sent to the PI and Business Manager. The email outlines the PI’s responsibilities to close out the award timely.  After the award expires, the RA works with the PI and department to determine all expenses have been charged, any over-expenditure has been cleared, all payments have been received, all financial reports have been submitted and any cost share has been met.

Once an award is closed, the speedtype and project are inactivated. Documentation related to that award is saved in the master file on the Research Accounting shared drive.

A budget level defines the level of restriction for the use of funds provided by a Research Sponsor. Within each level are unique Budget Account Codes that categorize how funds are to be expensed. The budget level for an Award is determined according to to the Award terms and conditions. Applicable Budget Account Codes for Sponsored Research Awards primarily fall into budget levels 4 through 6.

Updated 6/6/2023

The primary goal of the Research Receivables Negotiations Section for Research Accounting is to recover overdue receivables from sponsors for expenses incurred under their awards. Efforts are made to minimize the amount of time taken to recover funds.

The University wishes to maintain an amicable working relationship with sponsors. Efforts are made to work with the sponsor to collect amounts due. The first step is to find out why the payments have not been made.  If the reason is the need for deliverables from the PI, then the PI will be contacted to discuss the delivery of the required materials.  If we are unable to get a response from the sponsor by e-mail or telephone, then the Receivables Manager will send a letter to the sponsor. A copy of this letter is sent to the PI and OPAM.  If payment has not been received and/or an appropriate response has not been made by the specified date, then another phone call will be made. If there is no response then the Assistant Controller will send a letter with a copy to the Department Head and / or the Dean.

Introduction

Many payments to the University are now made by electronic means. These payments are made to one of the accounts established for this purpose and the distribution of funds to specific accounts is administered by the University Treasurer’s Office. There are several accounts, which receive these funds. There is an account for each campus as well as one specifically for Amherst campus Research Accounting Section.

Originators

Those who currently pay electronically are mainly federal government such as: US Fish & Wildlife, Office of Naval Research, NASA, USDA, Defense Finance & Accounting, US Geological Survey, and industry sponsors. The Amherst campus is interested in increasing electronic payments from non-federal sponsors.

Set Up

In order to pay by electronic means, the originator requires information from the University (bank name, account #, routing #) and the University requires that the bank have originator information to handle payments which arrive. This is accomplished by supplying the originator with a form completed by the bank (we supply to University Treasurer) entitled: "Payment Information Form for Direct Deposit Payments: ACH Vendor Payment System".

Receipt of Payment

The Treasurer’s Office sends to the Research Receivables Manager a list by fax of payments received. This list is reviewed to identify account #, award #, originator amount or any other information which may help in identifying the correct destination for the amount. If the amount is a payment for an award not yet received from OPAM, the money is deposited to the Unclassified Receipts account.

Reply to Treasurer’s Office

As quickly as possible, the deposit data, which includes the appropriate research Speedtype and Account number(s) for the deposit, is e-mailed to the Treasurer’s Office. If the amount cannot be identified, a reply is provided to the Treasurer’s to that effect.  The Wire would then be held in the Treasurer's Office Unclassified Receipts Account until a claim is made.

Copy to Accountant

A copy of the fax from the Treasurers’ Office is provided to the appropriate accountant to file in the Research Award folder.

Effect on Aging Reporting

It is important that replies are made quickly to the Treasurer’s Office and that the journal entries are processed in a timely manner. At month end, if the payments are not posted, the billings will show as overdue and may result in Accountant follow up on payments with sponsor in error.

Payment for research performed at the University for most federal agencies is done through a letter of credit. The Controller's Office requests that cash be drawn down from the Federal Reserve, for deposit into a campus bank account. The amount drawn is based on actual expenditures of Federal Research Awards.

Organization and Function

The Research Receivables section reports to the Controller. This section is staffed by the Manager of Accounts Receivable & Billing (David Bennett phone 413-545-1421; fax 413-545-6088; e-mail @email). The function of this section is to:

• Submit federal draws to the University Treasurer’s Office which, in turn, submits the draws to the appropriate federal agencies. After the Treasurer's Office receives the funds, the Treasurer’s Office submits the journal upload provided by Research Receivables staff.  This reverses the accounting entry for draw in transit and posts cash to each project/grant.
• Report expenditures to the appropriate federal agencies on or before the reporting deadlines and according to the agency’s reporting requirements.
• Perform ongoing reconciliations of grants to assure that authorized amounts, expenditures and receipts as shown on the letter of credit report, the University accounting system and on the individual grant report (Financial Status Report or Report of Cash Transactions) are in agreement.
• Investigate and follow up on any letter of credit variances from funds drawn and what we are allowed to report.
• Notify research accountants when research awards are due to close off letter of credit reports.

The grant accountant is responsible for preparing the Financial Status Reports (FSRs) as required by each agency according to the requirements of the contract.

Conducting sponsored research or activities in a foreign country or paying foreign nationals can be complex processes and may need additional assistance or oversight.  Each country is different, so it is important that activities are conducted in a legal and allowable manner.  UMass has a history of working with many Principal Investigators (PIs) who have conducted activities in various countries.

Prior to working directly in or with a foreign country, please consult with Research Accounting to receive guidance and ensure you are following any precedents that have been set in the past.

We value the ability to work outside the borders of the United States and we are here to help you succeed!

Items to consider when working with or in a foreign country:

• Paying foreign nationals:
  • Any paid work can appear as an employment relationship. Since UMass cannot generally hire/ pay foreign nationals in this manner, consider working with an in-country employment agency, a university, a Non-Governmental Organization (NGO), or a local attorney. 
  • Relationships necessary to pay foreign nationals may affect your budget, so please reach out as soon as possible so you can plan accordingly.
  • There may be country-specific local employment laws that have to be followed (such as withholding taxes and fringe benefit requirements).
  • There are OFAC laws that prohibit paying cash to individuals that are on a restricted parties list.
• Purchasing non-US services and materials:
  • Be aware of financial and legal obligations when you intend to purchase services and materials outside of the US
• Understand the foreign country's registrations, laws, taxes:
  • Identify and understand the foreign country's laws, registrations, and taxes that may affect your work (see links below for additional information) 
• Import and export of items
  • Import and export of items (including information & technology) may have additional costs and restrictions. Please work with UMass Export Control to ensure compliance.
  • NOTE: this includes the transport and use of personal or University equipment (including laptops)
• Identify country-specific currency and exchange rates
  • Noting trends may also be helpful. For exchange rates, use the following links for guidance: Federal Reserve System Foreign Exchange Rates; OANDA Exchange Rates
• Spending in a foreign country:
  • If expecting to spend currency in a foreign country, the preferable means of payment is a UMass Bank Card. 
    • If the foreign country is a “Cash only” economy consider the following:
      • Utilizing Cash advances in the foreign country, via your UMass Bank Card at a local bank
      • Request a program advance to be able to have cash to spend in the foreign country
      • NOTE: Be mindful of security, regulation, documentation of spending, and currency conversion requirements associated with handling cash

If you have any other unusual foreign transactions or questions, please contact with Research Accounting ASAP.  Addressing things sooner than later can make the whole process much simpler.

Additional resources for those looking to work in/ with foreign countries:

• Economist Intelligence EIU Country Reports
• Dun & Bradstreet Country Risk Indicator Reports
• Brill Foreign Law Guide

Research Accountants manage UMass Amherst Research Awards. If you have a question about an award, locate the sponsor of the award in the services column below, and contact that Research Accountant.