Grant Accounting Services

December, 01 2020

grant accounting

Providing billing, collections, and financial reporting services for all sponsored projects. Indirect costs are charged to each grant account on a monthly basis by applying the approved indirect cost rate to the expenditures incurred in the previous month. Indirect costs are recorded as a debit to the Indirect Cost account in the grant fund and as a credit to an appropriate unrestricted current fund revenue account code.

What does grant mean in accounting?

A grant is a sum of money given to an individual, business, or organization that does not need to be repaid.

Good financial habits and clear guidelines on accounting for donations are key to getting additional grants in the future as full financial transparency is required by most grant organizations. You can assign each transaction in QuickBooks to a class to track revenue and expenses for a specific program regardless of the chart of accounts.

Petty Cash Audit Procedures

Post-award consists of processes that occur between award inception and award close-out. During this period, Grant Accounting staff, the Principal Investigator, and the departmental administrators must continually monitor the award to ensure the project is running smoothly. The Pack is Back Effective Monday, August 2nd, and in conjunction with UNM’s Safe Return to Campus, Contract and Grant Accounting, Suite 2100 in the John & June Perovich Business Center, will be open. Throughout the pandemic, we have taken great pride in our continuous support of the research enterprise at UNM, with no major interruptions to our business operations.

How do you account for grants for assets?

Grant related to assets

If an entity receives the grant for acquisition of some assets, there are 2 options to present such grant in the financial statements: To present it as deferred income; or. To deduct the grant from the carrying amount of an asset acquired.

Develop controls to track and account for cash expenditures, and appoint one individual to have the final say over all spending. Time cards must be signed and approved by management if they’re being billed to the grant account. Your written accounting policies must be accessible to federal auditors at any time. Keep original invoices, expenditure approval forms, check authorizations and receiving signatures. Provided us with the most professional service and management for our company in grant accounting, audit, and implementation of compliance policies. Accounting & Business Solutions can help you prepare and navigate through grant audits and indirect cost negotiations to make sure that you are compliant with federal regulations. Our team is made of experts in the field of SBIR/STTR/NSF grant accounting for start-ups and small- to mid-size enterprises .


While the Human Resource Office maintains all employee personnel files, payroll records are kept in the Payroll Office. The payroll record shows the employee’s gross pay, payroll deductions and the University’s share of the fringe benefits. The total payroll cost for a pay date is charged to the grant account in summary by salary or benefit type referencing the pay period ending date. The Accounting Office does not maintain additional payroll records for any grant programs for which the payroll expenses are directly charged through the Payroll System.

A small grant program may require one folder to hold all the invoices for the entire project period. Larger programs, for instance the Migrant and Upward Bound, may require a separate folder for each month. An approved purchase requisitions entered online encumbers the necessary funds immediately. Since most grant budgets are entered on a line level, no requisition will be processed unless there is a sufficient budget balance in the grant. The program director should resolve any deficit situations with the Accounting staff. The Accounting Office, using the approved budget document, posts the budget data into the grant fund within the BFS.

Audit Procedures for Income Statements

The rates for the University of Central Arkansas are negotiated with the U.S. Department of Health and Human Services, Division of Cost Allocation (DHHS-DCA). The negotiation is based on a review of the University’s costs and assessment of the reasonableness of the charges. Considering the resources it takes teams to research and develop grant proposals, the effort shouldn’t stop there. Managing grant funds requires a focused and streamlined process usually lasting several years per project, sometimes with multiple projects. Responsible stewardship of grant funds will usually lead to obtaining more funding for additional projects and possibly having to manage exponential growth. Being proactive with your planning can make a huge difference in the complexity of your projects.

  • Requisitions for honoraria/consultant services can be processed online in the Purchasing System and the Accounting Office will review and approve the requisition for further processing.
  • When this happens, you should not recognize those funds until you have met those conditions, reviewers or auditors have verified that the grant money is assured, which once more corresponds to the matching principle.
  • The Department is entrusted with ensuring that all budgets, revenues, and expenditures for these accounts are properly recorded and reported, where applicable.
  • Compliance & Cost Analysis provides a wide range of services related to ensuring the University is in compliance with the Uniform Guidance and other regulations which are applicable to sponsored research awards.

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