Monitoring the Grant

• Procedures for Expenditures Vs Revenue

• DRA reviews all expenditures and revenues every month. The purpose of the report is to

recognize outstanding items before year‐end close and make sure budget is not over spent.

• Run a GLTB or GLBR on all funds (31, 32 ,33, 34)

• Or pull data off the Reconciliation spreadsheets located in the T\drive under each RA

• Key the data in the worksheet located in the T\drive under Expenditures vs Revenue folder.

• Procedures for Analyzing Monthly Accounts

• DRA reviews every restricted account monthly by running a summary report on Datatel.

Restricted Accounting Staff have every account on the T:\drive located under their names that

they reconcile to the GL every month. The DRA pulls up the accounts and makes sure all

accounts are balanced properly to the GL.

• In the Datatel system: (Detail screens attached)

• Run a GLTB reportF

• Run a summary trial balance

• Include all Funds: 31, 32, 33, 34, 36

• The DRA reviews each account and makes sure all accounting transactions are recorded

properly. On closed accounts, make sure there are no expenses booked to the account. There

might be adjustments that will have to be made. Give the accounts to the proper RA for the

account to correct.

• Monthly Budget Report

• The Grant Development Office will forward the MOU (Memorandum of Understanding) or

the NOGA (Notice of Grant Award) and budget to Director of Restricted Accounting. The

assigned RA will review the grant/contract budget before setting it up in “DATATEL”.

Expenditures and time management must be checked to verify the following:

• If this is the first report, the accuracy of the accounts and amounts must be verified.

• Line items must be reviewed to ensure that the proper accounts have been charged;

matching dollars if any, salary, benefits, equipment, and other operating expenses must be

scrutinized.

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• The percentage of budget expended must be compared with the percentage of project time

that has elapsed to ensure that the grant’s funding objectives are being met and program

activities are proceeding on a timely basis. The percentage of indirect cost and

administrative cost is being properly reported based on the RFP of the grant/contract.

• Any change in budget amounts (increase/decrease) is subject to the compliance

requirements; the grant/contract documentation in hand from the funding source (agency),

and the approval of the performing department’s Project Director and Vice President. In all

cases, the funding agency’s provisions and regulations will prevail. In no case should the

grant budget be revised without documentation. If verbal communication is provided by

the funding agency, the Project Director must follow‐up with written verification. Keeping

the lines of communication open is the key to success.

• The Project Director will be notified of any accounting changes made to their account by the

RA. A copy of all budget revision forms (from Business Services) will be forwarded to the

performing department. The DRA will approve all revised budgets and forms and until the

budget revision is approved, funds will not be encumbered or spent.

• The RA is responsible for any transaction which will cause a budget line item to be overexpended.

In such cases, the entire transaction may be postponed by being returned to the

performing department until a memo requesting a budget transfer has been received and

processed.

• Monthly Management Report

• Each month, copies of a contract/grants management report, summarizing grant activity, will be

forwarded by the DRA to the Director of Grant Development, and the college President.

• The Vice President of Business Services and DRA will review the percentage columns on the

monthly contracts/grants management report to ensure that the percentages are generally

within 15% of the expected range. The Director of Grant Development/DRA will present a yearto‐

date report to the Board of Trustees comparing budgets and competitive grant expenditures.

• Reporting Requirements

• Reporting the progress/status of a grant will vary by grant.

• The DRA is responsible for reviewing all accounting entries to the general ledger and

prepares all audit schedules for year‐end‐close following the guidelines of GASB 34/35.

• Business Services will maintain the official fiscal records for all grant transactions. The

performing department will be responsible for maintaining detailed records to support the

records in Business Services. The RA will reconcile to the general ledger monthly. All

outstanding expenditures will be reviewed monthly and will be brought to the Project

Director’s attention. The RA will meet with the Project Director monthly or quarterly to

review all remaining budgets and expenditures on the grant/contract.

• The RA will be responsible for preparing and submitting expenditure reports and/or

reimbursement documents to the funding agency. The performing department will be

responsible for preparing any program reports to the funding agency and will send a copy to

the DRA for approval.

• All expenditures or encumbrances and personnel authorizations must be submitted to the

RA who will review and verify the availability of funds and forward any documents to other

offices such as the Purchasing Office, Accounts Payable department or Office of Human

Resources for further processing. Reimbursement for services will be at actual cost or at a

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rate specified in the grant. For out‐of‐state travel and certain purchases, refer to

Administrative Rules 7.03.001. (Travel)

http://www.austincc.edu/busdept/PDF/travel_ar_8_25_03_approved_to_pres.pdf. Large

equipment purchases may require advance approval of the funding agency. Take into

consideration that most Federal agencies require purchase of large equipment prior to April

1.

• The Project Director should schedule grant expenditures throughout the grant period in a

reasonable manner. If a Project Director or writer/developer anticipates receiving program

income, fees charged for services (e.g., conferences, book loan program), they must analyze

and budget for it appropriately.

• In Federal and State‐funded grants, program income could result in an equivalent reduction

in reimbursement from the funding agency. The performing department should be aware

that an account needs to be in place with approvals and control procedures, prior to

soliciting program income.