Sent on April 14, 2020 to Chief Financial Managers, RRC Contacts, EFS Cluster Directors, Certified Approvers, and the GMUN community.
Financial Guidance related to COVID-19 for Sponsored Awards
As requirements related to the novel coronavirus (COVID-19) response continue to evolve, questions have been raised specific to sponsored activities. The Controller’s Office actively collaborates with the University Budget Office, Sponsored Projects Administration, and other support units on systemwide communications. Guidance has already been provided by several of these units that apply to sponsored awards. Below is guidance that has been augmented from some of those communications that address specific sponsored activities.
Tracking Costs Related to the COVID-19
A new ChartField 2 (CF2) code has been set up to track costs the University incurs related to responding to the impacts of COVID-19. Costs recorded using the CF2 code 1000018130 / Description = COVID-19 should be those over and above what is budgeted and expected by the unit and should only include those related to activities specifically tied to COVID-19. The types of costs recorded in the new CF2 code will vary from unit-to-unit. Examples are anticipated to include: additional staffing or supplies, cancellation fees, student and other refunds, maintenance of labs/facilities, etc. Costs could be related to travel, attending/hosting a conference, reduced operations, evacuation, facilities management, program cancellations, etc. Existing employees’ time spent on responding to COVID-19 should not be tracked or recorded in the new CF2 code. See the 3/18/20 memo Funding Guidelines - Costs Related to the Coronavirus (COVID-19) for more details.
It is very important that the University be able to track at an institutional level reliable information on these costs, including those charged to sponsored projects. This CF2 enables the University to receive federal or state support if possible, can help identify where the financial impacts are the most serious, and assist with securing any available supplemental funding or receiving an extension from the sponsor to complete a project. If it is necessary to track COVID-19-related expenses charged to a sponsored project, ask your Certified Approver (CA) or SPA Grants Administrator to rebudget at this level and move the expense there.
A chart was created that provides accounting guidance for payroll related expenses impacted by COVID-19. This material is a companion to any guidance issued by the Office of Human Resources and the University Budget Office.
It is unlikely that the sponsor will allow the donation of the supplies/equipment as an allowable expense on the award. Check with your SPA GA for guidance related to sponsor allowability.
Estimate costs associated with the donation, create a journal entry to reclassify the expenses, moving them off the sponsored chartstring to a non-sponsored chartstring within the unit to add the CF2 1000018130 (COVID-19). Documentation as to how costs were estimated should be attached as journal entry support.
This email was sent to Chief Financial Managers, RRC Contacts, EFS Cluster Directors, Certified Approvers, and the GMUN community.