Research Financial Management - The

Departmental Perspective

Region VI/VII Meeting

Tuesday, April 19, 2005

9:00 - 10:15 a.m.

Moderator and Speaker

Scot A. Gudger, CMPE

Department Administrator

Department of Molecular and Medical Genetics

Oregon Health & Science University

(503) 494-6883

gudgers@ohsu.edu

Speaker

Lisa Laatsch

Department Research Administrator

Arizona Research Laboratories

University of Arizona

(520) 621-0847

Lisa@arl.arizona.edu

Session Description

• A primary challenge for departmental administrators is developing and utilizing effective financial management tools. Frequently central administrative systems are of little use, so many departments have developed their own systems, either internally or using outside vendors, to manage sponsored project expenditures, department budgets, effort reporting, and compliance issues. This session will present different approaches toward managing this important task.

DA Issues and Challenges

• Staff

• Faculty

• Chair(s)

• Dean and Staff

• Academic Affairs

• Centralized Support Offices

• Clinical Leadership

DA Issues and Challenges

• Grant Management– Pre award– Post award

• Grant Agencies– Home Pages– Forms

DA Issues and Challenges

• Finance

• Procurement

• Immigration

• Tech Transfer

• Human Resources/Payroll

DA Issues and Challenges

• Space & Equipment

• Academic Issues

• IT & Web Presence

• Clinical Practice

• Clinical Trials

Legacy Systems

• Internal Billing

• Budget

• Pre-Award

• Grant Application

• Facilities Assets

• Timekeeping

• Effort Reporting

What Researchers Want

• Compliance with university and agency regs• Am I “on track” for this year?• Do I have enough to hire a new employee?

Buy equipment? Go to a conference?• So, salaries projected for full period, services

and supply spending to date, services and supply spending predicted = what they have to spend

How do we do it????

A Departmental Shadow System

Paradox Database

Grant Reporting System

Sponsored Project Reports

• Individual PI’s Grants/Contracts

• Group together by PI

• Group PI’s together for Department

What is a Shadow System?

A redundant accounting system to monitor expenditures and report

results in a meaningful way

What is a Shadow System

• Post Transactions to Department Management Accounting System

• Reconcile Institutional General Ledger to Department Management Accounting System– Catching errors

What is a Shadow System

• Add predictions (encumbrances) of future spending to end of budget period– Payroll to end of grant– Subcontracts

• Adjust either system for other circumstances– Journal Entries (corrections)

PI Alias DescriptionBudget

EndProject

End DC Budget ExpensesEncum-brances

Projected DirectCost Balance

Layton XXXXXXXXX Layton Departmental N/A N/A 41,722.90 5,213.93 1,937.72 34,571.25 Layton XXXXXXXXX Fanconi Anemia Rsch Fdn 01/01/07 01/01/07 42,905.00 - 18,600.12 24,304.88 Layton XXXXXXXXX Stem Cells 10/01/05 10/01/06 232,927.00 140,510.49 51,625.85 40,790.66 Layton XXXXXXXXX Juvenile Diabetes Foundation 04/01/06 04/01/06 49,999.00 5,382.70 3,066.30 41,550.00 Layton XXXXXXXXX NIH P01 07/01/06 07/01/08 272,716.00 98,339.99 142,882.62 31,493.39 Layton XXXXXXXXX NIH P01 07/01/06 07/01/08 85,532.00 50,365.28 36,033.20 (866.48) Layton XXXXXXXXX NIH R01 12/01/05 12/01/08 181,238.14 149,317.46 8,285.25 23,635.43 Layton XXXXXXXXX NIH R01 12/01/06 12/01/08 181,617.00 158,405.64 - 23,211.36 Layton XXXXXXXXX NIH R01 05/01/06 05/01/10 211,099.00 51,617.79 143,219.96 16,261.25 Layton Totals 1,299,756.04 659,153.28 405,651.02 234,951.74

Dr. Layton AccountsAs of 2/14/02

PI Alias DescriptionBudget

EndProject

End DC Budget ExpensesEncum-brances

Projected DirectCost Balance

PI 1 XXXXXXXXX PPG Project 3 07/01/06 07/01/08 257,482.00 123,683.50 74,016.00 59,782.50

PI 4 XXXXXXXXX PI 4 Departmental N/A N/A 41,722.90 5,213.93 1,937.72 34,571.25 PI 4 XXXXXXXXX Fanconi Anemia Rsch Fdn 01/01/07 01/01/07 42,905.00 - 18,600.12 24,304.88 PI 4 XXXXXXXXX Stem Cells 10/01/05 10/01/06 232,927.00 140,510.49 51,625.85 40,790.66 PI 4 XXXXXXXXX Juvenile Diabetes Foundation 04/01/06 04/01/06 49,999.00 5,382.70 3,066.30 41,550.00 PI 4 XXXXXXXXX NIH P01 07/01/06 07/01/08 272,716.00 98,339.99 142,882.62 31,493.39 PI 4 XXXXXXXXX NIH P01 07/01/06 07/01/08 85,532.00 50,365.28 36,033.20 (866.48) PI 4 XXXXXXXXX NIH R01 12/01/05 12/01/08 181,238.14 149,317.46 8,285.25 23,635.43 PI 4 XXXXXXXXX NIH R01 12/01/06 12/01/08 181,617.00 158,405.64 - 23,211.36 PI 4 XXXXXXXXX NIH R01 05/01/06 05/01/10 211,099.00 51,617.79 143,219.96 16,261.25 PI 4 Totals 1,299,756.04 659,153.28 405,651.02 234,951.74

PI 5 XXXXXXXXX PI 5 Departmental N/A N/A - 240.54 - (240.54) PI 5 XXXXXXXXX PI 5 OHSF N/A N/A 1,875.07 1,216.41 187.00 471.66 PI 5 XXXXXXXXX Murdoch Charitable Trust 05/24/06 05/24/06 - - - - PI 5 XXXXXXXXX NIH R01 01/01/06 01/01/08 444,553.55 302,263.30 64,256.55 78,033.70 PI 5 Totals 446,428.62 303,720.25 64,443.55 78,264.82

PI 14 XXXXXXXXX PPG Project 1 07/01/06 07/01/08 225,385.00 89,557.48 172,851.96 (37,024.44) PI 14 XXXXXXXXX PPG Admin Core 07/01/06 07/01/08 229,260.43 47,642.48 86,905.67 94,712.28 PI 14 XXXXXXXXX NIH R01 08/01/06 08/01/06 122,572.00 58,689.85 105,160.72 (41,278.57) PI 14 XXXXXXXXX NIH T32 07/01/06 07/01/10 93,232.00 6,695.58 55,930.85 30,605.57 PI 14 Totals 670,449.43 202,585.39 420,849.20 47,014.84

PI 15 XXXXXXXXX PI 15 Departmental N/A N/A (6,531.56) 255.00 - (6,786.56) PI 15 XXXXXXXXX PPG Core B 07/01/06 07/01/08 164,171.00 45,160.86 114,979.32 4,030.82 PI 15 Totals 157,639.44 45,415.86 114,979.32 (2,755.74)

TOTALS 2,674,116.09 1,289,142.42 964,959.77 420,013.90

Program Project07/01/01-06/30/02

PI 1 XXXXXXXXX PPG Project 1 07/01/06 07/01/08 225,385.00 89,557.48 172,851.96 (37,024.44) PI 2 XXXXXXXXX PPG Project 2 07/01/06 07/01/08 272,716.00 98,339.99 142,882.62 31,493.39 PI 3 XXXXXXXXX PPG Project 3 07/01/06 07/01/08 257,482.00 123,683.50 74,016.00 59,782.50 PI 4 XXXXXXXXX PPG Admin Core 07/01/06 07/01/08 229,260.43 47,642.48 86,905.67 94,712.28 PI 5 XXXXXXXXX PPG Core B 07/01/06 07/01/08 164,171.00 45,160.86 114,979.32 4,030.82 PI 6 XXXXXXXXX PPG Core C 07/01/06 07/01/08 85,532.00 50,365.28 36,033.20 (866.48) Totals 1,234,546.43 454,749.59 627,668.77 152,128.07

Medical Genetics AccountsAs of 2/14/02

Other Departmental Reports

• PI Productivity ComparisonsSalary Recovery, Indirects vs. space

• Department Comparisons– Indirects vs. space

• Annual and 5-year budget planning

Future Project

• Create University Sponsored Project Management System

• G/L System Based• Labor Distribution Important for

Projections• Other encumbrances• Eventual elimination of department shadow

systems

GMEDV0069D-9010XXXXMolecular Studies of Musical Mice O H S U

PI Direct Cost Status ReportR01 - ZZ 500XX-08

AUGUST 2002July 1, 02 - June 30, 03 (04)John Doe, PhD Budget Current Period Projected Month's To Date Total Awarded Uncommitted Expenses Expenses Commitments Expenses BUDGET BUDGET PERSONNEL SALARY 9,855 20,158 98,554 118,712 106,055 -12,657 PERSONNEL FRINGE BENEFITS 1,522 4,143 25,215 29,358 39,616 10,258 CONSULTANT COSTS 0 0 0 0 0 0

EQUIPMENT 1,529 1,529 0 1,529 0 -1,529

SUPPLIES 40,639 43,000 2,500 45,500 50,842 5,342

TRAVEL 0 1,483 0 1,483 2,187 704

OTHER EXPENSES 0 315 0 315 0 -315

Sub-total: 53,546 70,628 126,269 196,897 198,700 1,803

Prior Year(s) Carryforward 13,000

TOTAL UNCOMMITED BUDGET 14,803

Payroll Commitments based on:CURRENT BUDGET PERIOD

NAME FTE SALARY COMMITMENTS

Brown, B. 1.00 18,615 Jones,J 0.25 20,308 Lange, L. 0.25 21,154 Smith,S. 0.20 38,477

Total Commitments for Budget Period: 98,554

zpa_pi_report.rdf Oregon Health & Science University Page: 1 of 1 05-APR-05 09:54:48 Monthly Status/Projections by Sponsored Projects Database: FISUSR

Project Number: GMEDG0038D Period Name: DEC-04P

Project Name: GMEDG0038D This is not an Official OHSU Financial Report and should Project Mgr: Pelz, Rosalie C (Rosalie Sears) be used for estimation and projection purposes only Project Dates: 01-APR-04 31-MAR-05

Award: AMEDG0038; Alias: 90111163 ; CA086957; Integration of Ras, Myc and E2F Signaling Pathways Award: AMEDG0038; Alias: 90111163 ; K01 - CA086957; Integration of Ras, Myc and E2F Signaling Pathways

Current Budget Period Projections Projected Awarded Uncommitted Projected Month's To Date & Total Project Budget Carryover Expenses Expenditures Commitments Expense Budget Percent

Personnel 9,683 61,645 20,813 82,458 71,027 -11,431 Fringe Benefits 2,107 14,073 846 14,919 15,058 139 Supplies 0 28 8 36 55,929 55,893 Services & Fees 0 850 0 850 0 -850 Travel 0 296 0 296 0 -296 Utilities & Related Expense 0 11 0 11 0 -11

Sub-Total (Direct Cost): 11,790 76,903 21,667 98,570 142,014 43,444

Prior Year Carryover (Direct) 2,447 Total Uncommitted Budget (Direct) 45,891 32.31%

F & A Costs 943 6,152 3,468 9,620 11,360 1,740

Prior Year Carryover (F & A) 196 Total Uncommitted Budget (F & A) 1,936 17.04%

Total (Direct and F & A) 12,733 108,190 25,135 108,190 153,374 47,827 31.18%

======================================================================================================================================================================

Payroll Projections based on: Budget Period Salary Projections

FTE Current Monthly Projected Projected Projected Name Job Classification on Project % of Effort Salary Cost Cost OPE Total

Dr. Z Research Associate - Salary 0.40 100.00 1,667 4,900 100 5,000 Dr. A Assistant Professor 1.00 75.00 5,413 15,913 746 16,659

Total Projections for Budget Period: 7,079 20,813 846 21,659

University of Arizona

Financial Reporting Process

Reasons to replace current system:

• Data entry is extremely time consuming

• Mainframe environment is cumbersome and not user friendly

• Central system doesn’t allow detail needed

• High potential for errors and re-work

Solution: DARTDepartmental Administrative

Reporting Tool

Goal: • To develop a web-based departmental financial

reporting system that will replace the current data entry system.

• This system will be utilized to track budgets, expenditures, and commitments on grant, contract, state, designated, and auxiliary accounts.

• To develop a reporting system that is simple to use and presented in a format that is easy to understand by non-financial users.

Data Flow Diagram for DART

Anticipated Results:

• Departmental users and decision-makers will have access to timely and relevant financial data presented in a useful, easy to read format.

• DART will be web-based, so it will be accessible from anywhere using any web-browser.

Anticipated Results:

• DART will be relatively inexpensive to develop, to maintain, and to distribute because we will utilize open-source architecture.

• DART will enable the Business Office staff to spend more time on analysis, on post audit review of transactions, and on review of our internal business practices.

Anticipated Results:

• The system will be a model for other departments on campus who need to create a financial reporting tool to use in conjunction with FRS (Financial Reporting System), PSOS (Personnel Services Operating System), and UIS (University Information System).

Research Financial Management - The

Departmental Perspective

Region VI/VII Meeting

Tuesday, April 19, 2005

9:00 - 10:15 a.m.