Establishing a Contract and Grant account based on receipt of Fund Authority Sheet:
Sponsored Programs will provide the Division of Finance and the Project Director with a copy of the Fund Authority Sheet. The documents in the award package will be reviewed for completeness in order to establish the new financial account. The Division of Finance will provide account information.
The detailed budget for a contract and grant account should reflect the expenditure object code breakdown as submitted and approved by the awarding agency and coincide, where feasible, with UNC's expenditure object code structure (See items a, b and c below).
The Division of Finance will enter the budget data into the financial reporting system. The account will be budgeted using one of the following Automatic Budget Reallocation budgeting methods that will be best suited for compliance to that agency's guidelines. Sponsored Programs will help each work unit select the budgeting method that they prefer provided the method does not conflict with the agency's budgetary restrictions.
Automatic Budget Reallocations Used for Contract and Grant Accounts:
The current financial reporting system provides for contracts and grants to be budgeted with one of three methods known as Automatic Budget Reallocation (ABR). The ABR system is an automatic routine for measuring actual expenses against budgeted expenditure object levels and distributing the budget as the expenditures are made. The three ABR methods are defined as follows:
a. Automatic Budget Reallocation "Detail"
This routine should be used on contract and grant accounts where budgeting by individual object code line is required for agency compliance. In using the ABR-Detail budget routine, the budget is input according to the detailed object codes in the award or supplemental budget. The expenditures against the budgeted object lines will reflect the appropriate "Balance Available." When actual expenditures are charged to an object code with no budget, a deficit (-) balance available will be automatically generated in the system.
b. Automatic Budget Reallocation "Summary"
This routine will be used on those accounts where the budget for object codes requires less detailed control. In using the ABR-Summary budget routine, the budget is input at the summary or general control level. When actual expenditures are charged to an object code under this general control level, the system automatically transfers budget funds from the general object code level to the detail level. The ABR-Summary budget routine thus eliminates detailed variances.
c. Automatic Budget Reallocation "Pooled"
This budget routine is used for accounts requiring control on the total amount awarded only. In using the ABR-Pooled budget routine, the budget is input on a pooled basis, i.e., total direct and indirect costs only. When actual expenditures are charged to any object code, the system automatically transfers budget funds from the pooled object code to all object code levels at which the funds are expended. The ABR-Pooled budget routine thus eliminates all variances at the detailed object code level so long as expenditures remain within the total budget.