Contract & Grant Accounting A Part of Finance

Grant Accounting

Reports and Searches can have date or period filters for invoicing requirements by funder or grant. For reimbursements incurred during a grant-related trip, a travel expense report must be filed and submitted via SmartBuy Plus. Instructions on filling out a travel expense report are available in theTravel Guidelines. For grant-related travel, the grantee may request acash advance prior to the trip.

  • It should be noted that if the billable budget is selected and no budget is entered, billing transactions will not be reported.
  • When expenditure transactions are entered against a grant, the available balance of the expendable budget is compared to the amount of the expenditure.
  • Expenditures related to cost share are identified within the Budget Inquiry by a department number of 3XXXXXXXX.
  • Allocation schedules for spreading direct/indirect expenses across grant and fund/programs.
  • Manage resourcing by restriction, and report expenses against programs or grants to transparently show where funds are spent in real-time, at any time.
  • ◾ Capturing and reporting financial information – expenditures, encumbrances, budgets, billings and receipts – whether or not the grant is defined within R⋆STARS as billable.
  • The offices and functions which comprise Financial Affairs at Seton Hall University are general accounting, grants accounting, Investment and treasury operating, tax compliance and procurement.

A University faculty or staff member who initiates the grant proposal or application usually becomes the program director or the principal investigator,. The Program Director is directly responsible for the project from start to end. It is paramount for these nonprofits to take care to ensure the best possible results with bookkeeping and an all-in-one software program (like Springly!).

Program Code in Grants

The AL number corresponds with your federal funding source, while the CSFA number is linked to your state funding source. Look up these numbers online to be sure you understand the requirements of the program under which you fall.

Grant Accounting

Detail procedures for using the on-line inquiry features are provided in Chapter #3. Subgrantee contracts, also known as allocations, are recorded as a commitment against the grant and as an expendable budget against the subgrant. ◾Indicators– This segment defines the levels used to post financial information to the 29 profile and includes other posting and control information. ◾ Providing grant related reports which enable evaluation of financial information at a variety of different levels and a variety of different sort sequences. ◾ Enabling the conversion of the R⋆STARS expenditure object structure to a unique grantor structure for reporting purposes. You are responsible for spending money in accordance with the terms of your grant, which will differ by program. Create unlimited GL segment code combinations for accurate and easy data entry; and gain unparalleled visibility into fund balances and performance metrics.


The Accounting Office, using the approved budget document, posts the budget data into the grant fund within the BFS. Grant budgets are normally posted on a line-by-line basis rather than in a budget pool. If a pool budgeting process is used, customarily the entire grant award is posted to one main budget pool line and the expenditures will draw from or reduce the pool line. If the grantor is only concerned with the bottom line and the University is free to move the funds among the different budget categories, the pool approach would be recommended. In this case, each of these types of expenditures must be tracked individually, as efficiently as possible.

  • Grant requisitions submitted on line are automatically forwarded to the Accounting Office staff for review and approval before they routed to the Purchasing Office processing as a purchase order.
  • While some agencies provide money at the outset, many require you to submit a request to be reimbursed.
  • GAO provides faculty and staff with monthly electronic financial status reports for their sponsored projects.
  • This report displays the accounts receivable detail generated by Grant Billing methods 7 & 8.

Additionally, GAO is responsible to answer transactional questions or assist faculty and staff in determining the fiscal status of their awards. For more information, please visit the Accounting Related Toolssection of our website. Grant Accounting is responsible for all financial processes related to restricted fund activities. These include establishing chartfield strings and budgets for new grants, setting up budgets, reviewing and approving all encumbrance documents for appropriate funding. We also review and are responsible for adherence to applicable Medical School and funding agency policies, billings, Financial Status Reports (FSR’s), and reconciliation and closing of accounts. In coordination with Finance and Control Directorate and SRA, GCA ensures that NJIT grants and contracts are properly budgeted and accounted for, so that NJIT can be reimbursed by sponsors for grant and contract expenses.

Collect funds from sponsors

The program director or his or her designee initiates the expenditure of the grant funds. Depending on the type of expenditure, the appropriate form must be used.

  • Projects track scheduled tasks, time, percentage of completion, and expenses on grants and programs.
  • This information is captured at the award setup and serves various functions throughout the project’s life-cycle.
  • 29 profile (discussed in Section 14-1) contains indicators which define whether billable and/or expendable budgets will be used.
  • The Purchasing Office staff will prepare a Purchase Order if the request for services is less than $1,500, and a Service Purchase Contract if the request is for more than $1,500.
  • With the 18 profile, a Clearance Pattern can be entered using Estimated Days Clearance, Average Days Clearance or any other pattern type supported by the days and percentage concept.

Grants Accounting must ensure that all information needed for future reporting and analysis is captured at set up. This information is used for internal and external reporting, audits, surveys, and data analysis. The review ensures all users of the provided information are receiving accurate and valuable data.


Create FASB reports—Statement of Functional Expenses, Statement of Activity, Cash Flow, Statement of Functional Expenses—on the fly. Gain real-time access to the financial and operational performance of your organization. Automate financial processes and improve productivity with approval routing workflows for Journal Entries, Purchase Orders and Vendor Bills. Brainyard delivers data-driven insights and expert advice to help businesses discover, interpret and act on emerging opportunities and trends. In the process of applying for the grant, the Principal Investigator or potential grantee must contact the Office of Sponsored Programs and Research .

  • The result is unprecedented stewardship of funds with customizable FASB compliant reporting, dashboards and role-based KPIS available to staff, management and leadership teams.
  • The DAFR4061 Letter of Credit Transaction Detail Control Report is generated automatically each time a Grant Subsystem is run.
  • These budgets are entered using transaction codes established specifically for this purpose.
  • Federal grants, which are passing through the Pennsylvania Department of Education, are remitted to the University on a predetermined payment schedule.

IAS 20 Accounting for Government Grants and Disclosure of Government Assistance outlines how to account for government grants and other assistance. It further identifies which of those grant expenditures have billing methods set toautomatic or on the 29 profile. The grant-related reporting capabilities of R⋆STARS include on-line inquiry, system-generated reports and user-requested reports. These capabilities provide a full range of financial information for both reimbursable and non-reimbursable grants. The following paragraphs describe the on-line inquiries and hard copy reports available.

Main menu levels 1 & 2

All externally sponsored awards are subject to sponsor review and/or audit. GAO is responsible for coordination, negotiation and resolution of any financial review or audit related to University sponsored projects. This includes the annual audit of federal awards required under Uniform Guidance, Subpart F – Audit Requirements.

If you receive discounts from vendors because of your nonprofit status, be sure to include those. Departments are responsible for obtaining the grant and for program reporting activities such as outcomes and deliverables. Finance Grant Accountants are responsible for providing departments with assistance and guidance in the budgeting and spending of the grant monies as well as the financial reporting and invoicing to the funding agencies. Provides Principal Investigators with financial information that allows efficient and timely review of expenditures and effort posted to sponsored projects. Please refer to the Office of Sponsored Programs for general information regarding contracts and grants.

What is Grant Accounting

This screen accesses data in the Accounting Event or Inactive Accounting Event Tables by Agency, Grant, Phase, Agency Code 1, Balance Type and Record Type. The 66 screen provides access to record and financial inquiries to the Grant Table. The key to this table is Agency, Grant, Phase, Agency Code 1, Appropriated Fund or Fund and Comptroller Object or Agency Object and Grant Object. The level of information maintained in this table is defined in the 29 profile indicators.

Are grants revenue or other income?

Presentation of grants related to income

29 Grants related to income are presented as part of profit or loss, either separately or under a general heading such as 'Other income'; alternatively, they are deducted in reporting the related expense.

This report displays the accounts receivable detail generated by Grant Billing methods 7 & 8. Expenditures made by subgrantees are not expenditures of the governmental entity. Therefore, these amounts are recorded as memorandum entries in R⋆STARS for reporting purposes only. Subgrantee expenditures are recorded against the subgrant only Grant Accounting – not against the grant. It should be noted that if the billable budget is selected and no budget is entered, billing transactions will not be reported. Once the grant budgets are established, they may be adjusted at any time by entering adjustment transactions into the system in the same manner as the original budgets were entered.

Prior to attempting to complete any of the grant related system profiles or entering grant budgets, users must first determine which system capabilities are required for each grant. A thorough review of the R⋆STARS Reference Manual, Chapter #13 is a prerequisite to this step. DAFR7870 Letter of Credit Drawdown can be generated that lists the outstanding accounts receivable documents for which receipts have not been posted. This report will be used to review past due receivables and to prepare Letter Of Credit requests. Billable budgets may be entered at the grant, phase level, Agency Code 1 level and/or by Expenditure Object and/or fund within a grant or phase.

Grant Accounting

Close with confidence with automation for expense amortizations; and dynamic allocations for direct and indirect costs. Grant funds are also used, where applicable, for related purchases of supplies and equipment. In order to make these purchases, the grantee must submit a purchase order via SmartBuy Plus. In the case of a multi-year grant, budgets are only input on a yearly basis. The Grant Accounting Office is available for assistance with reading its specifications.


In the post-award stage, the grantee’s budget is set up by the Grant Accounting Office. Grant requisitions can be processed by the Program Director online in the BFS through the Purchasing and Procurement Menu. Grant Program Directors may also contact the Accounting Office to establish access for their staff to handle this function.

Grant Accounting

A small grant program may require one folder to hold all the invoices for the entire project period. Larger programs, for instance the Migrant and Upward Bound, may require a separate folder for each month. After the program office has entered a purchase requisition and the Accounting staff has approved it, the Purchasing Office will convert the requisition into a bid or a Purchase Order depending on the dollar cut off. For Purchase Orders exceeding $1,500, bids must first be obtained from at least three vendors, unless the item is available only through a sole source.

Code revenue and expense transactions at the transaction line level to provide visibility, control and stewardship of the funds received from diverse funding sources and revenue types. Use just one system to track receivables and revenue transactions, making Accounts Receivable aging, financial reporting, metrics, and reconciliation simple and accurate. Manage finance and accounting with comprehensive features, including GL, AR, AP, cash management, statistical accounting, allocation schedules, and real-time financial reporting. Once a grant has been awarded, the PI may conduct related accounting processes.

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