Costo beneficio

The grants and contracts category includes all amounts received or made available by grants, contracts, and cooperative agreements from state, federal and private entities that are considered to be exchange transactions.

GASB Statement No. 33 defines non-exchange transactions as those wherein “a government (including the federal government, as a provider) either gives value (benefit) to another party without directly receiving equal value in exchange or receives value (benefit) from another party without directly giving equal value in exchange.” Grants and contracts that are considered to be non-exchange transaction would be classified separately as non-operating revenues.

Determining whether a specific grant or contract falls within this definition requires management to exercise professional judgment and understand the nature of the work performed by the institution, the contracting or grant-making procedures of the sponsor, and the terms of the agreements.

The majority of NDUS grants and contracts are considered exchange transactions and are reported in operating revenues. Examples of NDUS non-exchange transactions reporting as non-operating revenue are PELL, TEACH, SEOG student awards, and capital grant and contracts (capitalized assets). NDUS classifies all construction grant and contracts as non-operating income. If 100% of a grant and contract is purchasing capitalized assets, it is reported as non-operating income. A grant and contract meeting the criteria as an

exchange transaction with a portion of the budget for capitalized assets would be recorded entirely as operating income.

Grants and contracts should be classified to identify the source (federal, state or private) of the entity making the award to the institution and as capital versus operating for financial statement purposes. Additionally, tracking grants and contracts with separate restricted projects is necessary to meet granting agency reporting requirements and to accurately measure revenues and expenses related to the grant. Amounts incurred under grants and contracts are recorded using the following accounts:

Operating Grants (exchange transaction)

Grantor Acct # Acct Description

Federal agency 450010 Federal grants & contracts Federal agency stimulus funding –

exchange transaction

450025 Federal Grant/Contract Stimulus

Federal -- received via a non-federal entity 450015 Federal pass thru grants

State agency 451010 State grants & contracts

Private entity 452010 Private grants & contracts Capital Grants (non-exchange transaction)

Grantor Acct # Acct Description

Federal agency 450005 Federal capital G&C

Federal agency – stimulus funding 450005 Federal capital G&C Federal agency pass thru 450005 Federal capital G&C

State agency 451005 State capital grants & contracts

Private entity 452005 Private capital G&C

Non-Operating Grants (non-exchange transaction)

Grantor Acct # Acct Description.

Federal agency 450020 Federal G&C non operating Federal agency pass thru 450020 Federal G&C non operating Federal agency stimulus funding – non-

exchange transaction

450020 Federal G&C non operating State or Private entity 480090 Other non operating revenue

State appropriation pass-through from NDUS (excluding student grant programs*)

Award Acct # Acct Description

Title II 450010 Federal G&C

EPSCoR 451010 State G&C

Centers of Excellence - exchange 451010 State G&C Centers of Excellence – non-exchange 451005 State Cap G&C

Other Contact NDUS Dir. of Financial Reporting

Amounts received from grantors for indirect cost recoveries are recorded in the accounts noted above in the grant fund when the funds are drawn from the grantor. These funds are then moved from the grant fund to a local fund with the following entry:

Ledger Transaction Acct # Acct Description. Debit Credit

Actuals

Entry to charge the G&C fund for the amount of your indirect charge 730015 and- 730020, some schools may need to use 730005- 730016

F&A and Admin Allowance x,xxx 105251 Cash x,xxx Actuals Receive indirect cost recovery from grant funds

105251 Cash x,xxx

484005- 484010

Admin Allowance and Indirect Costs (F&A) x,xxx Consol Reverse revenue and expense so not double recorded 484005- 484010 Admin Allowance and Indirect Revenue (F&A)

x,xxx 733015 -

733020

Admin Allowance and Indirect Expense (F&A)

x,xxx

The admin allowance expense and indirect cost revenue are eliminated at year-end with a closing entry in the CONSOL ledger to eliminate the doubling of the revenue and

expenses.

Grant and contract funds may be associated with other types of funds for match. The finance system does not associate those funds electronically. The match funds are accounted for in the type of fund related to the activity within that fund. For example, registration fees collected are accounted for in a local fund. Appropriated funds used for a match are still accounted for in an appropriated fund.

At year end all G&C need to be reviewed for proper year end balances in the general ledger. Examples of items to be reviewed are:

o Normally revenue equals expenses at year end

o Cost reimbursable grants & contracts will normally have a negative cash and positive grants receivable at year end

o Advance pay or fixed price grant and contracts (scheduled pays in PS) normally have deferred revenue or grants receivable at year end depending upon the timing of expenses to revenue

o Fixed price may have revenue greater or less than expenses at end of project

At this time this is a manual process but every year more queries are developed to assist with this effort.

Accounts normally used for grants and contract revenue may be used for a fund that is not a grant and contract fund. For example, a check is received from the federal government not meeting the requirement to be a grant and contract (no deliverable), the account codes 45xxxx may be used in the non-G&C fund (ex. HUD subsidy for resident hall debt).

Fixed Price Awards

Campuses may have awards that are classified as scheduled pays, task complete and percent complete in PeopleSoft. These award types are also known as fixed price awards. These awards pay based upon something other than cost, it can be a time schedule, completing a task, or the percentage a project is complete. Fixed Price agreements are intended to be break even (not revenue generating); therefore, the budgets should be developed carefully to ensure that it is an accurate estimation of expenditures for meeting the project goals and objectives. The awarding agency allows the campus to keep any funds not used for the project and spend at the discretion of the campus.

The expectation is we will collect all these funds regardless of amount spent. Because of this assumption, campuses recognize the revenue on these awards (fixed price) when it is earned, not when spent. If the entire amount is not spent, the revenue is still 100% recognized.

FARM 361.6 states; once revenue is recognized as restricted, the revenue is not derecognized unless the original entry was an error. In this case, the revenue was not recognized in error, it was recognized when earned. Therefore, when moving the unspent money out of a restricted fund to an unrestricted fund, a following transfer account codes should be used rather than a revenue account code:

• 490002 – Interfund Transfers In • 490004 – Intrafund Transfers In • 490009 – Mandatory Transfers In • 722005 – Intertransfer Out • 722010 – Intratransfer Out • 722015 – Mandatory Transfers