Setting Up a Project Cost Center

Summary

This article shows the process on creating a Project Cost Center.

Body

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

Details

Article ID: 1025
Created
Fri 1/20/23 3:20 PM
Modified
Mon 3/27/23 10:56 AM

Related Articles

Related Articles (17)

Compensation Confirmation Guidelines
This article shows The University of Texas at Dallas (UT Dallas) institutional guidelines for Compensation Confirmation.
Funding Cost Share
This article shows the procedure on Cost Sharing.
How to Close Out a Post-Award Management Project
This article shows the process on how to close-out a Post-Award Management Project.
OPM Allowable Cost
This article follows a set of guidelines that outline the allowable costs for grants, contracts, and subawards at the University of Texas at Dallas (UTD).
OPM Participant Support
This article provides guidelines for Participant support costs that are paid to (or on behalf of) participants or trainees (not employees) for participation in meetings, conferences, symposia, workshops, and/or other training projects.
OPM Period of Performance
This article outlines the period of performance of costs guidelines for grants, contracts, and subawards at the University of Texas at Dallas (UTD).
OPM Rebudgeting
This article explains the re-budgeting process before meeting project objectives.
OPM Record Retention
This article outlines the Office of Research business process for record retention of sponsored projects document files at The University of Texas at Dallas (UTD).
OPM Research Subject Payments
This article provides information on the process of research subject payments for purposes of recruitment or encouragement for participation in a project at The University of Texas at Dallas (UTD).
Research Assistant vs Participant Cost vs Subject Payments
This article provides information on research assistant vs participant cost vs subject payments.
Research Budget Account to Proposal Crosswalk
This article shows the outline of Budget Account to Proposal Crosswalk for faculty and staff members at The University of Texas at Dallas (UTD).
Research Cost Sharing
This article outlines the process of cost sharing at the University of Texas at Dallas (UTD).
Research Cost Transfers
This article provides guidelines and criteria on transferring charges to and/or from a sponsored award.
Research Travel Guidelines
This article outlines the guidelines on Travel Costs on federally funded contracts and grants at the University of Texas at Dallas (UTD).
Sponsor Approval Guidelines
This article shows the guidelines of different sponsor's approval.
Subrecipient Monitoring
This article explains the subrecipient monitoring process done by primary recipients to grant subawards to other organizations.
The Office of Management and Budget (OMB) Uniform Guidance
This article highlights detailed information on The Office of Management and Budget (OMB) Uniform Guidance.