Cost Center setups are required to ensure that all information is at hand for processors, reconcilers, and cost center managers as soon as a cost center is created, so that possible issues during the life of the cost center can easily be identified and handled as they come up, instead of at the close of the cost center. Unallowable charges may go several months unnoticed if the cost center is not activated appropriately.

Upon receipt of the Snapshot/NOA/Mod

The Budgets/Grants group member should follow the instructions on the Project Cost Center Setup/Modification Checklist (.pdf version) starting from the time that a Quick Cost Center Snapshot is received.  Consult with other members of the Budgets/Grants Group and/or the DBA at any time during the process for concerns. 

Setup and utilize Cost Share Templates such as this one to keep track of cost sharing expenditures.  Ensure that the cost share listed on department records matches that which was reported by the PI to OCG in Quarterly Effort Reporting.

When the checklist is complete with attachments, and comments have been made on the PI Meeting Discussion Notes and the NOA/Mod, bring the entire packet for a meeting with the DBA.  The DBA will review the packet, discuss concerns, make any additional notes, and sign off on the cost center setup.  At this time, a meeting should be setup including:  the DBA, all members of the Budgets/Grants group, the PI, and any of their co-PI's that they request to attend.  

At the PI Meeting

The B/G group member setting up the project should use the Project Cost Center PI Meeting Checklist and Guide (.pdf version) as a tool to discuss with the PI, DBA, and other members of the B/G group the various special concerns of both sponsored projects in general and this particular sponsored project.  When the meeting is complete, if the PI has anything to add, make notes and if necessary add those notes to the Award Entry screen in FMP.  The PI meeting should take place no later than 2 weeks from the time that the full NOA is received by OCG.

Grant Budget Review Setup

After the PI meeting, the Grant Budget Review should be completed within one month from the time that the full NOA is received by OCG.  The blue areas you should enter information into and analyse the calculations in the yellow areas only.  Setup the following areas.

Under the Budget Flexibility Check worksheet:

• Budget Category:  add all budget categories from the NOA or Mods (when a mod modifies the sponsored project budget).
• Budget according to the sponsor:  add all budget amounts from the NOA or Mods (when a mod modifies the sponsored project budget).
• IDC Budgeted:  amount of IDC budgeted by the sponsor.
• IDC Rate:  each category should be given an IDC rate.  This is to allow flexibility to enter the IDC rate different for each category in the event that multiple rates affect the categories.  E.g., 0% for equipment, 24% for participation, but allows participation also to be a lower rate depending on the agreement with the sponsor.
• Max allowable flexibility column:  if particular budget lines have only a certain amount of flexibility, enter here.
• Allowable Flexibility on total project (under "Total Project Rebudget Flexibility header):  enter the total amount of budget flexibility allowed by the sponsor.  For NSF on FDP, this is generally 25%.

Under the PI Effort Check worksheet:

• PI Name:  enter only named PI's
• Budgeted Paid Effort:  # of months times the FTE of their budgeted paid effort (the amount of months they will be paid by the project prorated by FTE).  E.g., 50% of 3 months is 1.5 months, so enter 1.5.
• % Allowable flexibility without prior sponsor approval:  enter 25% for FDP on NSF, but otherwise, check with OCG to see about flexibility or enter nothing.
• Budgeted Cost Sharing Effort:  # of months times the FTE of their budgeted cost sharing effort (the amount of months they are supposed to cost share to the project prorated by FTE).  E.g., 25% of 9 months is 2.25 months, so enter 2.25.

Save the worksheet in the cost center's efile folder on the R drive.

For Assistance:

Find the User ID for the FMP setup of a cost center

In addition, you may utilize the NSM Research Team.