Grant Contract and GCA Budgets. Establishing Budget and Entering Data

The New Accounts section of Grant and Contract Accounting (GCA) is responsible for assigning budget numbers and setting up budgets in the Financial Accounting System (FAS) for new grants, contracts and gifts.

Information is provided to the New Accounts section by both Gift Policy office and Office of Sponsored Programs (OSP). The information supplied by both of these offices serves as the source documentation for budget set up in FAS. Gift policy provides a memo requesting a new gift account. OSP prepares the Notice to Establish Account (NEA) associated with any new grant or contract. This document (NEA) is the primary source document used by the New Accounts section when setting up budgets and entering information into FAS.

Information supplied on NEA by Office of Sponsored Programs:

Date – Date NEA is completed by the Administrator in Office of Sponsored Programs. Completed by the OSP Administrator.

NEA Number – A sequence of numbers assigned by OSP for tracking proposals, awards and additional supplements. OSP office support provides OSP Administrator with numbers in sequential order.

Authorized Action – Type of action that OSP authorizes GCA to process. Sponsor of research is main source of information for OSP Administrator.

New Account – New Award not previously established.

Extension of Award – Additional time allowed a Principal Investigator (PI) to complete the scope of work on the project.

Supplement – Additional project funding from sponsor.

Renewal – Continuation of a project with separate budget number for expenditure accountability.

Revision – Any revision to the previously authorized NEA.

Type of Award: Sponsor of research is main source of information for OSP Administrator.

Grant – A financial assistance (including cooperative agreements) mechanism whereby funds are provided to carry out approved activities. In general, the award contains specific terms on the use of funds, the objective to be achieved, the faculty member and department responsible.
Contract – A mutually binding legal relationship between the University and the sponsoring agency. Each award includes all formal conditions as outlined in the contract clauses.
Form of Payment- Agreed upon method of payment by sponsor provided to OSP Administrator.

Cost Reimbursable – The Grant and Contract Office bills/invoices the Sponsor for actual expenses incurred (generally on amonthly basis).
Letter of Credit - Generally applicable to federal funding agencies. Payment is received through electronic transfers of cash from the Federal Reserve Bank to the University.
Schedule Payment (Automatic) – Payment is made by the agency using a pre-determined payment schedule. The payment amount is not dependent on the performance of the project. No invoice is required.
Scheduled Payment (Invoice) – Payment is made by the agency using a pre-determined payment schedule. The payment amount is not dependent on the performance of the project. The Sponsor is billed/invoiced by the Grant and Contract Accounting Office.

Fixed Price Invoice – Payment is made by the agency upon the receipt of an invoice from Grant and Contract Accounting. The amount is pre-determined per unit(s) of service regardless of the actual expenses incurred (e.g. per patient seen, number of samples).

Budget Designation – Identifies the purpose of the funding based on description of the project provided to OSP Administrator by Principal Investigator.

Research – Programs primarily for basic research or applied research.
Training- Programs used primarily for the training of graduate or undergraduate students, or post-doctoral trainees in research techniques.
Fellowship- Awards identified as fellowships by the sponsor for undergraduate, graduate, professional or post-doctoral students.
Equipment- Awards solely for equipment.
Miscellaneous- Awards not falling under any of the categories above.

Indirect Cost (Facilities & Administrative) Rate - Costs that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, program or activity but are nevertheless necessary to the operations of the organization. The University of Washington’s indirect cost rate is negotiated with the Department of Health and Human Services. The indirect cost rate applicable to each award is listed by the sponsor on the award document or written agreement.

On campus – Research that is conducted in on-campus facilities at the University of Washington.
Off campus – Research conducted away from the University of Washington over an uninterrupted period of time in excess of 30 days for field work , or in facilities either rented from or made available to the program by a non-University organization
Other – Research conducted at the Primate Center, Applied Physics Lab and on University owned research vessels also has negotiated and approved indirect cost rates.

Grant and Contract Number – The grantor identification number used to facilitate reporting to sponsor agencies. Sponsor of research is the source of information for the OSP Administrator.
Title of Project – Specific department identification of project. Information provided to OSP Administrator by the Principal Investigator.
Approved Period – Sponsor approved budget period; beginning date and ending date. Information provided to OSP Administrator by sponsor of research.
Principal Investigator – Person responsible for project.
Department – Department that has responsibility for research.
College – College that has responsibility for research.

Remarks –This area is used to indicate the amount of Award, Supplement, check amount and check number, and any information unique to the award. Sponsor of the research provides information to OSP Administrator.

Cost sharing – Cost sharing is the portion of project or program costs not borne by the sponsor. It is also viewed as the University sharing in the cost of research. Cost sharing is primarily required by federal sponsors, and the obligation must be met using non-federal funds. There are two types of cost sharing: mandatory and committed. Detailed information on the project's cost sharing pledge (mandatory or committed) appears on the GC-1 addendum. This information is provided to the OSP Administrator by the Principal Inverstigator. At the time of award, the cost sharing obligation will appear on the NEA.

Mandatory – Cost sharing that is required as a condition of the award and which was agreed to between the University and the sponsor in the initial negotiation of the agreement.
Committed - Cost sharing where effort is included in the project proposal budget or budget justification, yet no corresponding funding is requested. This also applies to non-salary cost commitments in the proposal (i.e. equipment, supplies, etc.) with no corresponding funding requested.
Aggregate - A percentage of cost sharing is required on all research projects for a given sponsor.

Budget numbers - Budget numbers are assigned based upon the type of award designated on the NEA. New Accounts codes the award into the University of Washington on-line Financial Accounting System (FIN) and enters the award budget into the Budget System. The new award can be accessed in FIN as soon as it is entered.
Subaccounts - New sub-accounts to grant budgets are requested with a TRANSPASU.
PI Letter - Upon completion of the budget set up, a letter is prepared and sent to the Principal Investigator along with a copy of the NEA or TRANPASU.

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