Award Management

9.2 Financial Management

Sponsored project funding - particularly federal funding - is subject to extensive financial and regulatory oversight. Expectations for financial stewardship, compliance, and documentation have increased significantly in recent years, and both government agencies and private sponsors require assurance that funds are spent appropriately and that sponsored activities are conducted in accordance with the highest professional and regulatory standards.

Financial management of sponsored projects must ensure compliance with a wide range of requirements, including:

• Allowability, allocability, and reasonableness of costs;
• Compliance with federal, state, and sponsor-specific laws and regulations;
• Accurate documentation of cost sharing and program income; and
• Timely and accurate financial reporting.

These elements are routinely examined through internal controls reviews, sponsor oversight, and external audits. Principal Investigators (PIs) and departments share responsibility for ensuring that project expenditures are monitored and managed in accordance with all applicable requirements.

These elements are routinely examined through internal controls reviews, sponsor oversight, and external audits. Principal Investigators (PIs) and departments share responsibility for ensuring that project expenditures are monitored and managed in accordance with all applicable requirements.

Additional guidance on budgeting and financial oversight is available in Manage Your Budget under the Grant Life Cycle.

9.2.1 Financial Management Reports

Grants & Contracts Accounting (GCA) prepares monthly financial management reports for all active sponsored projects.  These reports provide a summary of project financial activity and are distributed electronically to PIs and designated departmental personnel.

Financial management reports typically include:

• Summary of Revenue and Expense - overall financial status of the project; 
• Detailed Transactions Report - itemized listing of project expenditures;
• Encumbrance Report - outstanding obligations not yet paid; and 
• Balance Sheet - remaining balances and commitments.

PIs are responsible for reviewing these reports regularly to ensure expenditures are accurate, allowable, and consistent with the approved budget and scope of work. Departments should work with GCA to resolve discrepancies, correct errors, or address questions promptly. 

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1. Post-Award Administration
   1. Role of PI in Post-Award Administration
   2. Role of PI in Subrecipient Monitoring
2. Financial Management
   1. Financial Management Reports
3. Summary of Revenue & Expenses
4. Detail Transactions Report
   1. Open Encumbrances Report
   2. Balance Sheet
5. Post-Award Changes & Approvals
   1. Changes Requiring Prior Approval
      1. Re-budgeting
      2. Additional Compensation
      3. Changes in Objectives or Scope
      4. Absence or Change of Key Personnel
      5. Foreign Travel
      6. New-Subcontracts/Sub-Agreements
      7. No-Cost Extensions
      8. Carry Forward
      9. Relocation or Transfer
6. Effort Reporting
7. Other Financial Management Issues
   1. Overspent Projects
   2. Underspent Projects
8. Reporting Responsibility
   1. Interim Progress Reports
   2. Project Close-Out
      1. Final Technical Report and Other Deliverables
      2. Final Financial Report
      3. Final Inventory Report and Title to Property
      4. Patent and Invention Report
   3. Late Reports or Non-Reporting
      1. Government Agency Policies
      2. University Policies
9. Records Retention
   1. University Ownership and Responsibilities
   2. Principal Investigators Responsibilities
   3. Duration of Retention of Data
   4. Access to Records
   5. Transfer of Data or Records When a Researcher Leaves the University