Setting Up a Project Cost Center

Purpose

Before the Principal Investigator (PI) can spend grant money, a project cost center will need to be created.NOTE: If the award includes cost share, the cost share must be established and supplied to the Office of Post Award Management (OPM) by the department before an award cost share center is requested.Please see Funding Cost Share procedures for further information.The cost center Logic for projects is as follows:32955035

  • Fund - If the 4th digit from the left is a 5 and the 5th digit from the left is a 5, 6,7,8 it is a Sponsored Project. The 4th & 5th digit will tell you it’s source:
    • 55 Federal
    • 56 state
    • 57 local
    • 58 private
  • All sponsored projects will have the "Project" chartfield.
    Budget Ledgers store the budget details for expenses and revenue.
    The ledgers are updated whenever a transaction successfully passes budget checking.Once an award is granted, OPM is responsible for posting the budget to the following ledger in Gemini Financials Budget Overview:
  • Project/Grant Expense Detail - Budget (PED)
    The Office of Finance is responsible for administering Cost Centers (including creating in PeopleSoft, updating, and retirement).The procedures include the following:
  • Project Cost Center set-up process
  • Pre-Award Spending
  • Restricted Gift Cost Center set-up process

Procedure

The following illustrates the steps followed by OPM to acquire a Cost Center:

Step 1 The Office of Sponsored Projects (OSP) enters award details in the Proposal Stage
Step 2 The Notice of Award (NOA) is sent to OPM (This initiates the remaining steps in the process)
Step 3 OPM verifies the information (Title, PI, budget, F&A rate, CFDA, etc.)
  • Generates an Award Profile (in PeopleSoft) and Project Budget (in PeopleSoft)
  • Posts Budget in Budgets Overview in PeopleSoft
Step 4 OPM submits a request for a cost center to the Office of Finance via "New Grant Cost Center Request Form" in PeopleSoft Gemini Financials
School Fiscal Officer verifies:
  • Department number
  • Cost Center alternate
  • Specific administrative personnel who need access
  • OPM submits the following to Finance:
  • Award Title
  • Cost Share Status of Cost Center
  • Department Number
  • Function (Instruction, Research or Public Service)
  • Fund Group (Gift/Sponsored Project)
  • Fund Code (Federal, Federal Pass-Through, State, State Pass-Through, Local, Private)
  • Project Id
  • Cost Center Owner and Manager (PI)
  • Cost Center alternate
Step 5 Notifications of Cost Center sent to OPM. OPM notifies Award team (PI, School Fiscal Officer, etc.)
Step 6 OPM adds project budget to Cost Center using Budget Journal
Step 7 OPM checks the bill plan

Pre-Award Spending

When an award is submitted by OSP in PeopleSoft as a pre-award, the proposal is verified and submitted just like a full award, but it is generated under pre-sales spending. A cost center is requested and received, but under pre-sales spending, there is no Award Profile and no Project Budget generated in the PeopleSoft system. The department can spend against the generated cost center, but no budget will appear in Budget Overview.Once the full award is received from the pertinent sponsor, OPM will generate the proposal within PeopleSoft again, this time without the pre-sales spending criteria. A full Award Profile will be generated and the Project Budget can be posted to Budget Overview.OPM sends all new awards and pre-awards to the Office of Finance with the bill plans for each one. All active awards are billed for by the Billing Office.See the Policy Charge - Period of Performance for further information regarding Pre-Award costs.

Restricted Gifts/Funds

UT Dallas receives Restricted Gifts/Funds (not considered an endowment). The limitations associated to Restricted Gifts include the following:

  • Individuals, departments, or schools
  • Specific purpose

Restricted Gifts have the Fund Code 5010 in Gemini Financials. If the gift funds of several donors have the same restrictions, all funds are part of a single fund. The balances carry forward from one fiscal year to the next. The gift is closed once funding is exhausted.After receiving the Research Gift, the Office of Development determines the status of the Cost Center (Existing or New). This determination establishes the process used to generate the Gift and allows use by the owner.The following table outlines the steps implemented based on Cost Center status.Note: Restricted Funds Cost Center setup follows procedures for Non-Restricted Funds Awards.

Related Policies and Procedures

Allowable Cost on federally funded Contracts and Grants

Funding Cost Share If you have any questions regarding this procedure, contact the Office of Post Award Management at ext. 4540 or via email at kellymc@utdallas.edu

Issued: June 2015

Details

Article ID: 1025
Created
Fri 1/20/23 2:20 PM
Modified
Mon 3/27/23 9:56 AM

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