Monthly Review and Quarterly PI Review and Certification Process
Following is an overview of monthly review and quarterly certification policy requirements and procedures.
Jump To:
- Monthly Expenditure Statements
- What is Reconciliation?
- Review Expenditure Detail Reports Monthly
- Steps in Monthly Review
- Quarterly PI Review and Certification
- e-Certification
- Calendar for Monthly Review and Quarterly PI Review and Certification Process
- Fall Quarter Deadlines (Oct-Nov-Dec)
- Winter Quarter Deadlines (Jan-Feb-Mar)
- Spring Quarter Deadlines (Apr-May-Jun)
- Summer Quarter Deadlines (Jul-Aug-Sept)
- Annual Payroll Distribution Certification
Monthly Expenditure Statements
Monthly expenditure statements for sponsored project and cost sharing accounts are the official record of project expenses and the basis for cost reimbursements to Stanford.
These expenditure statements must be reviewed each month by a knowledgeable individual, i.e., the PI or designated Financial Administrator. Adjustments must be made in a timely manner, and rates of expenditures must be monitored to assure availability of funds.
The designated Financial Administrator must certify their review quarterly via their signature on the Quarterly Expenditure Statement OBI 149 report.
To be considered timely, monthly expenditures must be reviewed within two months of the end of the month being reviewed. i.e. If you are reviewing expenses for January, you must must complete our review by March 31 of that year.
The financial administrator confirms by their signature on the OBI 149 report:
I have reviewed the three months of expenditures for this quarter. To the best of my knowledge, all expenditures are appropriate. Where required, corrections have been or will be made through the accounting system. I understand that to be considered timely all corrections must be made within two months of the last day of month being reviewed.
What is Reconciliation?
Reconciliation is the process of comparing the entries on these key reports to supporting documentation and resolving any discrepancies. Reconciling accounts on a regular basis, after month-end close, will help you to manage your sponsored funds to ensure that expenditures and revenues are within appropriate limits and guidelines. Reconciliation is an internal mechanism that ensures that:
- entries and balances are accurate and valid
- records are accurately recorded
- unauthorized changes/charges did not occur
- discrepancies are resolved in a timely fashion
How Do I Reconcile?
- Review recorded transactions and investigate those that you don't recognize or appear unusual.
- Compare transactions to source documents as needed.
- Review infrequent transactions.
- Investigate and resolve differences.
Key Components of Reconciliation
Below is a summary of key components of reconciliation. Your reconciliation process may be more or less detailed than the process listed below depending on many factors, such as front controls, experience, knowledge, the type of transaction, and the associated risk. Confirm for all expenditures that:
- the expenditures belong on the PTA
- the amount charged is accurate
- the correct Expenditure Type was used
Salary
You must confirm:
- that the amount charged is the same as the percentage incurred
- for hourly employee, hours are correct if amounts charged appear unusual
- the correct expenditure type was used (based on JCC codes)
- the earning codes (for reconciliation)
Benefits
Ensure proper documentation of all vacation/sick leave taken by use of the AXESS time keeping system.
Equipment
Verify the expenditures on statement are what you expected. Ensure that:
- the amount charged is consistent with order information if needed
- the correct expenditure type was used
- those with multiple allocations are correctly allocated and the rationale for allocation is documented
- equipment is received in period by reviewing the packing slip-if the purchase is near the start or end date of an award
- equipment is properly recorded in Sunflower within 30 days of receipt
Supplies
Verify the amounts charged are what you expected, and review source documents as needed to investigate unexpected amounts. Confirm that:
- the expenditures belongs on the PTA
- the amount charged is accurate
- the correct expenditure type was used
Travel
Verify the amounts charged are what you expected. Verify the travel is allowable on the project. Reconcile expenditures to the source documents as needed. Confirm the correct expenditure type was used, considering unallowable codes as needed.
Other Expenses
Verify the amounts charged are what you expected and review source documents as needed to investigate unexpected amounts.
Consultant/Subawards
Verify the amounts charged are what you expected and reconcile expenditures to the invoice submitted. Confirm that:
- the invoice amount is within budget
- the correct expenditure type was charged (especially after the first $25,000 of a subaward)
- the subrecipient has complied with award terms
Fringe/Indirect Cost/Infrastructure Rates
Ensure the correct rate is being applied (review rate posted in "dept ref" column). Do not calculate the rates only verify the correct rate is being used.
Review Expenditure Detail Reports Monthly
In addition to monthly reconciliation, the Expenditure Detail Reports must be reviewed each month. The review should include compliance areas such as those covered in the detailed steps below.
The reviewer must certify their review quarterly via their signature on the OBI 149 Quarterly Expenditure Statement report.
To be considered timely, monthly expenditures must be reviewed within two months of the end of the month being reviewed. i.e. If you are reviewing expenses for January, you must must complete our review by March 31 of that year.
Steps in Monthly Review
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Process
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Current Guidance |
Tools & Reports to Assist this Process
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Does the budget match the award, or other budget information? |
Verify the expenditure report matches the sponsor & Stanford's Notice of Award Open tasks opened if cost sharing is required |
Sponsored: To verify budget accuracy, use the sponsor's Notice of Award. Capital Projects: Contact Capital Accounting if you have questions about the budgets. Review Cardinal Curriculum Managing Sponsored Projects Reports available in ReportMart3:
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If the PI wants to rebudget- is it allowed by the sponsor? |
A change in scope always requires approval |
Refer to Sponsor Notice of Award terms and conditions Resource: Award Terms and Conditions |
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Are there any unusually large or small expenditures in relation to the budget, prior months' trends, or other expectations?
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If so, correct “genuine ”errors, such as:
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Review the Commitment Management System (CMS). The following policies, reports, and job aids are available for your reference and use: Administrative Guide Memo 3.1.3 “Activity/Accounts”Tips for Budgeting & ForecastingOverview of iJournal Module of Oracle Financials Cost Transfer Policy for Sponsored Projects Overview: About the Labor Distribution Module of Oracle Financials Reports available in ReportMart3: FIN_EXP_150_Spo_Funded_Amt_Vs_Act_OD (realtime) Reports Available re: Suspense Account in OBI: Finance-Payroll & Labor Management Dashboard |
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Are all expenses:
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Review for compliance with policies. |
Allocability DiscussionList of Unallowable Expenditure Types Reports available in ReportMart3:
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Are salaries appropriate and charged to the appropriate PTA and Expenditure Type, or if not, have corrections been initiated? |
Salaries may be held in an Org suspense account and must be cleared. If you have questions about whether or not you have salaries in a suspense account, contact your department administrator. Corrections to salary errors are done with a LD Adjustment; expenditure type corrections must be processed through the Payroll Department. If a wrong PTA was used, correct through an iJournal. To ensure these errors don’t repeat, make the change in the Labor Distribution schedule. |
Check the "Quick Steps: Calculate Vacation Accrual" Reports available in OBI: Finance & Labor Management Dashboard re: labor distribution and earnings by PTA |
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Does effort for "Key Personnel" appear to match the award, or if not, are sponsor notifications required? |
Note: A change in scope or a reduction in PI effort of 25% or more requires sponsor approval. Propose salary as anticipated by the project scope. |
Review the effort committed in the awarded budget & Sponsor's Notice of Awards. |
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Does the NIH salary cap apply to any of these charges, and if so, was it properly treated? |
The difference must be identified on the PeopleSoft Job Earnings Distribution Panels using the special Expenditure Type, “RBE UNALW SLRY OVER CAP 51190" (RBE =Regular Benefits Eligible) Adjustments can be made via labor distribution. |
See major Topic Salary Caps |
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If vacation or disability sick leave has been taken, has it been properly accounted? |
Time-keeping at Stanford is maintained in Axess Time and Leave. For proper accrual and credit of vacation and sick leave, it is essential all employees input all leave into this system. Verify leave by reviewing your Expenditure Detail Report. |
Run a Leave Accrual Detail report (PS_TL006) in PeopleSoft. Commitment Management System |
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Have the correct fringe benefit rates been applied? |
Don’t calculate the rate; just verify the correct rate was used (e.g.: faculty salary, student, etc.). |
Commitment Management System (CMS) |
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Has equipment been pre-approved (if necessary) and recorded in Sunflower? |
Check your agreement to ensure the equipment is pre-approved (if not, contact the sponsor through OSR/ERA/RMG to obtain approval). Ensure your Department Property Administrator (DPA) has tagged and entered the property into Sunflower. |
Refer to Sponsor notice of award documents |
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Has title been reflected with the proper Expenditure Type and if sales tax is applicable, is it properly charged? |
Generally, sales tax must be applied to purchases with title vested to Stanford, but is not applied to purchases where title of equipment or material vests in the federal sponsors. Review transactions to verify sales tax has been applied correctly. |
Expenditure Type Table for Property and Equipment |
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Are you fabricating equipment? Have fabrication projects been coordinated through the Property Management Office (PMO) and properly documented? |
Verify all fabrications have either been created or converted with the appropriate PTA (and that the task is noted “fabrication”). Ensure a fabrication request form is on file. |
View the Fabrication Procedures - outlined in the Property Manual |
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Are travel expenses allowable, allocable, reasonable and consistent? |
Review these expenditures for reasonableness, appropriateness and compliance with policy (e.g. pre-approved where necessary, lowest available fares, correct per diems or receipts for reasonable and actual expenses).
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Fingate Travel Page Expense Guidance For Business Meals Administrative Guide Memo 36.7 “Travel” Reports available in ReportMart3:
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Does the project have a subaward? If so, has the PI reviewed the Subaward’s invoices? |
Ensure expenditure types are correct as this affects the IDC calculation (remember, indirect costs are only charged to the first $25,000 of a subaward). Are all expenses:
Has the PI reviewed and certified approval of the invoice? Subaward invoices require the following statement to accompany the PI’s signature: “In signing below I approve payment of this invoice and attest that the charges appear reasonable, and progress to date on this project is satisfactory and in keeping with the statement of work.” |
DoResearch Major Topic Subawards Reports available in ReportMart3:
The Cardinal Curriculum - Subawards If you manage a subaward you must take DOR-1122, Subawards: Recognizing, Processing, Managing. |
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Are tuition charges made to the correct PTA and Expenditure Type? |
During the first months of the quarter tuition appears as 51960 "Beginning Term Tuition Allowance Prepaid". At the end of the term they are transferred centrally to 51975 "Tuition Allowance." |
Administrative Guide Memo 24.2 “Graduate Student Assistantships” Salary and Tuition Allowance Tables Reports available in ReportMart3:
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Are the F&A rates or the Infrastructure Charge rates correct, and have they been applied to the correct base? |
Don’t calculate the rate; just verify the correct rate was used (e.g.: infrastructure, or for sponsored if the work is being performed off campus, was the off campus rate used, etc.) |
Administrative Guide Memo 37.3 “Infrastructure” Reports available in ReportMart3:
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Have appropriate credits posted, e.g., prior transfers, sales of surplus property, program income? |
Review for reasonableness and appropriateness. |
Reports available in ReportMart3:
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Have the correct PTAs and Expenditure Types been used, or if not, have corrections been initiated? |
If expenses are charged to an incorrect PTA or the wrong Expenditure Type was used, correct them via iJournals. For salary corrections, refer to the "Salary Step". |
DoResearch - Cost Transfers Create Salary Distribution Adjustment in LD Reports available in ReportMart3:
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If cost sharing was committed on a sponsored project, has cost sharing been incurred and charged to the appropriate cost sharing PTA? |
Cost sharing requires a new task and award. Contact OSR for a cost sharing task if you don’t see one on your report. |
DoResearch- Cost Sharing Reports available in ReportMart3:
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If charges on this PTA have been allocated, is the allocation basis documented? If costs are charged via allocation journal, has proper authorization been obtained? |
Regardless of funding source all expenses must be allocated based on a reasonable allocation method. Sponsored Projects must clearly document allocability. |
Cardinal Curriculum: Allocability Discussion Commitment Management System |
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If this award is nearing the “end date”, review:
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Financial closeout should be completed if possible. Remember – even if we can’t perform a financial closeout on a project, we can still submit technical and patent information to the sponsor. |
Commitment Management System |
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Do you expect this PTA will go into overdraft, and if so, are there actions to take? |
1. Take care to note if PTA appears to be heading for overdraft – especially if there are missing items and there is little or no funding left. 2. If you know the PTA is in overdraft before the end date, transfer charges as appropriate to a benefiting PTA. 3. After the end date an overdraft must be transferred to a “cost sharing task”. 4. If total overdraft is less than $500, transfer lump sum (net of indirect costs) Expenditure type 56135 to an appropriate unrestricted PTA. |
Administrative Guide Memo 34.1 “Activity/Accounts”RPH 3.2 Fiscal Responsibilities of the PI - Overdraft's section Commitment Management System Reports available in ReportMart3:
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Has appropriate documentation been retained (on-line and centrally-filed, or in department files and does it match to the charges? |
Confirm that documentation exists and supports charges on expenditure report (including receipts for Purchasing cards.) |
Reports available in ReportMart3:
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Quarterly PI Review and Certification
Sponsored project and cost sharing accounts must be reviewed and certified by the PI every academic quarter, and recorded by signature on the Quarterly Expenditure Statement OBI 149 report.
The following certification statement appears on Expenditure Statements for every sponsored project and cost sharing account, The PI confirms:
To the best of my knowledge, salary and wages charged to this project are appropriate in relation to work performed on this project. All other costs charged to this project are, to the best of my knowledge, appropriate. Where required, corrections have been or will be made through the accounting system.
This certification is the responsibility of the project PI (or Co-PI). A PI may delegate the monthly review of expenditures for accuracy, but may not delegate certification of the appropriateness of the charges with one exception: The PI may only delegate review and certification to a participating Academic Council member or PI eligible individual who is responsible for a portion of the statement of work and is identified as the Task Owner in the accounting system.
The purpose of the review and certification is to confirm that all expenses charged to the account are allowable, allocable to the project, and reasonable. The certification of salary expenditures confirms that salaries charged to the account are supported by a corresponding expenditure of effort during the time period being certified. The certification also assures that other expenditures are for items or services purchased and used during the project period as specified by the award. It is the PI's responsibility to seek a no-cost extension of the award if that is necessary in order to complete the project.
To be considered timely, the expenditure statement must be reviewed and signed within two months of the end of the academic quarter being certified. Issues regarding the timely certification of expenditures should be discussed with the appropriate Department Chair, School Dean, and/or the Associate Vice Provost for Research or the Research Financial Compliance Services Office. Each school and independent laboratory must retain reviewed and certified Quarterly Expenditure Statements.
Adequate explanation and documentation for all project charges must be maintained for four years after the sponsor closes out the award. Where documentation cannot be provided as to the allowability, allocability and reasonableness of any project expense, including but not limited to expenses incurred late in the project period, the sponsor may deny them. In this case, the PI, department or school will be expected to cover the expense from unrestricted sources.
Any departure from the policy or procedures regarding summarization of Quarterly PI Review and Certification must be approved in advance by the DoR (Office of Vice Provost and Dean of Research) and RFCS (Research Financial Compliance and Services Office).
e-Certification
eCertification tracks the results of Stanford's quarterly review and certification process of certifying all sponsored project and cost-sharing expenses.
This application is for:
- Verifiers, who track the quarterly certifications and input the status of each PTA
- Overseers, who coordinate the certification tracking process on behalf of their school or organization
Calendar for Monthly Review and Quarterly PI Review and Certification Process
Fall Quarter Deadlines (Oct-Nov-Dec)
October |
November |
December |
January |
February |
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| $$$ | Oct Statements Available |
Oct Review DEADLINE Dec 31 |
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$$$ |
Nov Statements Available |
Nov Review DEADLINE Jan 31 |
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$$$ |
Dec Statements Available |
Dec Review DEADLINE Feb 28 |
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Fall Quarter Expenditures |
Fall Quarter PI Certification Deadline Feb-28 |
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Winter Quarter Deadlines (Jan-Feb-Mar)
Jan |
Feb |
Mar |
Apr |
May |
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| $$$ | Jan Statements Available |
Jan Review DEADLINE Mar 31 |
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$$$ |
Feb Statements Available |
Feb Review DEADLINE Apr 31 |
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$$$ |
Mar Statements Available |
Mar Review DEADLINE May 31 |
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Winter Quarter Expenditures |
Winter Quarter PI Certification Deadline May-31 |
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Spring Quarter Deadlines (Apr-May-Jun)
Apr |
May |
Jun |
Jul |
Aug |
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$$$ |
Apr Statements Available |
Apr Review DEADLINE Jun 30 |
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$$$ |
May Statements Available |
May Review DEADLINE Jul 31 |
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$$$ |
Jun Statements Available |
Jun Review DEADLINE Aug 31 |
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Spring Quarter Expenditures |
Spring Quarter PI Certification Deadline Aug-31 |
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Summer Quarter Deadlines (Jul-Aug-Sept)
Jul |
Aug |
Sep |
Oct |
Nov |
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| $$$ | Jul Statements Available |
Jul Review DEADLINE Sep 31 |
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$$$ |
Aug Statements Available |
Aug Review DEADLINE Oct 31 |
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$$$ |
Sept Statements Available |
Sept Review DEADLINE Nov 30 |
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Summer Quarter Expenditures |
Summer Quarter PI Certification Deadline Nov-30 |
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Annual Payroll Distribution Certification
Annual Payroll Distribution Certification was eliminated CY 17.
