OGC News - June 2024
Financial Services Connection
Jun 19, 2024
CONTRACTS SERVICES
State Contract & Amendment Processing Reminders
When you receive the initial email from the state:
- Review the budget, scope of work, and agreement/amendment details for programmatic accuracy and ensure all attachments for the agreement are provided by the state for review.
- If details are incorrect or there is a missing attachment, work directly with the state to resolve.
- Route a PDF of the agreement/amendment to the right university office for review and signature.
- Be sure to include good contact information for the state agency in your submission to OGC for negotiations, where needed.
When OGC Contracts returns a partially executed copy to you:
- Return the signed copy to the initial state email chain.
- Provide the vendor information sheet with the signed copy.
- List Liz Causey as the signatory for sponsored projects and fee-for-service agreements.
- We don't need to sign the vendor information sheet, even if it says we do.
- Ask that any DocuSign request (if required) includes the 6-digit InfoEd number and PI Name for sponsored projects.
What will happen next? Will there be a DocuSign request?
Some state agencies no longer require us to re-sign in DocuSign, so the next step will be the return of your fully executed agreement from the state. Process this through Awards Intake as usual.
If the agency is a hold-out that still requires us to sign in DocuSign, they will initiate the DocuSign request when you return the partially executed copy. Some of these agencies are still alarmed when we return the partially executed copy outside of DocuSign; if that happens, just let them know they can initiate the DocuSign instead.
Agencies that do not require DocuSign:
- Colorado Department of Transportation (CDOT)
- Colorado Parks & Wildlife
- Colorado Department of Public Health & Environment (CDPHE)
- Colorado Department of Human Services (CDHS)
Agencies that might still require DocuSign:
- Colorado Department of Early Childhood (CDEC)
- Colorado Judicial
- Colorado Department of Higher Education (CDHE)
- Colorado Department of Education (CDE)
- Colorado Office of State Planning and Budgeting
TRAINING & COMPLIANCE
Subrecipient Monitoring Reminders
The University has seen an increase in sponsor audits focused on subrecipient monitoring. Subrecipient monitoring and documentation is a critical compliance requirement for subawards. The University must demonstrate “reasonable assurance” to an auditor that each subrecipient is in compliance with the subaward’s terms and conditions. Failure to properly monitor and document monitoring activities can result in sanctions against the University, which could include a sponsor disallowing the entire cost of a subaward. In such situations the University would be required to repay the disallowed costs, not the University’s subrecipient. Under University policy, any cost disallowance, fine, or penalty is assessed against the administrative unit found in noncompliance.
To ensure compliance, PIs and their respective administrative units are responsible for:
- Adhering to University procedures in requesting and making a subaward;
- Developing and complying with a subrecipient monitoring plan;
- Documenting monitoring activities, including reviewing and approving financial invoices and programmatic reports;
- Ensuring subrecipients are in compliance with award terms and conditions; and
- Imposing specific conditions and remedies for noncompliance as necessary.
PIs must maintain regular communication with a subrecipient PI. At least quarterly, the PI should have a status meeting/email with the subrecipient. The PI needs to determine if the subrecipient is making adequate programmatic progress and is adhering to the statement of work. All problems or deficiencies must be identified, and a resolution needs to be developed for each identified problem.
In addition to monitoring, PIs and administrative units should closely review a subrecipient’s statement of work before requesting a subaward through OGC Subcontracts. Once the subaward is executed, the statement of work becomes legally binding on both parties. Acceptance of an inadequate statement of work places the University at risk for paying for unexpected costs for unanticipated activities and duplicative or inadequate work. An adequate state of work should be specific and detailed by:
- Clearly identifying the scope of work for the subrecipient by including specific activities and frequency, if applicable.
- Identifying the subrecipient PI’s roles and responsibilities.
- If applicable, providing a deliverable schedule for project milestones including a description of each deliverable or task, identifying applicable dates and conditions for project tasks to begin and end and any due dates for deliverables.
- Explaining requirements for all reports, data, and other deliverables. The PI should ensure this section meets all reporting and programmatic needs. For reports, the statement of work should explicitly describe what information will be reported, specific data formats, what data the subrecipient will collect and how the data will be shared with our University, and frequency of reporting.
Fiscal Compliance is hosting a special summer session of SP: Subrecipient Monitoring (A60030). This is a two-hour class held from noon until 1:00pm on Monday, July 22 and Tuesday, July 23, 2024. This course examines the compliance requirements for subawards and provides University resources to assist in adequately monitoring subrecipients. You can register for this session via Skillsoft. Administrative Units may also request one-on-one training and small group training. Please email Shane Jernigan for any questions.
New University Policy for Fixed Amount Subawards
The Office of Management and Budget (OMB) recently adopted new amendments to 2 CFR 200 (Uniform Guidance). The new amendments significantly alter requirements for fixed amount subawards, also known as fixed price agreements. Upon review of the new requirements, CU Denver and CU Anschutz will no longer process or execute fixed amount subawards and will require subawards to be cost reimbursable starting October 1, 2024. Fixed amount subawards are agreements which pay subrecipients when they meet a specific milestone or provide a deliverable as identified in the scope of work. This new policy does not affect clinical trial subawards, as those are fixed rate agreements, nor does it affect existing fixed amount subawards. Please email Shane Jernigan for any questions.
POST AWARD
Approaching Fiscal Year End
As we approach the fiscal year end, we ask that you please be mindful of your Journal Entry and PET (Payroll Expense Transfer) deadlines and dates of entries. OGC/Finance receives a much larger volume of entries to approve throughout year end and therefore it is important that only transactions that need to be for June business are entered as such.
Please review the finance website with important deadlines and closing dates, Fiscal Year 2024 - June Close.
After June 30th, any Journal Entries created should be dated for July unless there is a justification to backdate for second Fiscal Year End close (i.e., period 996).
For PETs, the GL date is based on approval. All PETs approved prior to second close, July 11, will be considered June business. If you do not need PETs to be completed in an adjusting period during second close, then it is best to hold creation of those entries until after July 11th. We have no ability to back date PETs to June after this close.
No campus journal entries should be backdated to June after second close unless prior approval is received from your post award specialist and there is an agreement the activity needs to be backdated.
Thank you for your participation in the fiscal year end process.
GENERAL ANNOUNCEMENTS
OGC Team Talks
Mark your calendar! The next OGC Team Talks session will be on August 15, 2024 at 10:30am. The Contracts Team will provide a refresher session on all things contracts. Click HERE to register.
Session slides and recording are available online for the June 2024 Team Talks on Post Award Hot Topics.
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