Bridge financing in Grants Management

[atif_farooq]

Hi:

We have a scenario at client receiving Grants from external bodies. Sometimes it happens so that there become a delay in receipt of Grant from Grantor or sponsor for a particular project ,in that case client gives a portion of amount to the project PI so that project processes are not disturbed and later on this money is recovered from project PI. Receivables process is used for this whole scenario. I want to know its process in Grants Management , how will grant management treat it. What i understand that it is not a cost sharing. There are cost sharing scenario in which 15 % of total Grant awarded is deducted for utility bills borne by client.

Regards

[sjajodia · Accepted solution]

Hi Atif,

We have handled this scenario as follows:

1. Assign an internal fund (the bridge fund) to the grant

2. Charge the amount given to the PI to the grant but with an internal fund

3. When the grant award is received, transfer expenditures within the grant from internal to external fund

4. Bill the amounts transferred to the Sponsor

This has the advantage of identifying the amount at risk (if the award does not materialize) by grant at all times.

Thanks

Shyam

[atif_farooq]

Hi:

Thanks for the solution, what i have understood from your reply is e.g client pays PI full salary so for that i assign fund Internal in GMGRANT in dimensions tab and check cost sharing..Now in cost sharing tab i give hundred percent to Sponsored Class . I set the grant as awarded and post its budget and release it, now later on when that bridged amount is recovered from Grantor in respect of salary that was paid by Client , now i want to transfer that amount from Internal Fund, PI Salary Sponsored Class to the external fund in GM_CREATE_BUDGET , i select process transfer and enter all other prerequisites, i do not see any option of sender and receiver in budgeting workbench like we use to have in FMBB .

Please guide me.

Regards

[sjajodia]

Hi Atif,

Please note that in our solution we are posting the PI salary actuals to the grant with the internal fund. The budget from the internal fund can be entered using GM_CREATE_BUDGET directly into the internal fund. We are not transferring this budget from the external fund. Similarly the budget for the external fund is provided by the sponsor when the award is approved and is not transferred from the internal fund. The transfer between funds is only for the expenditure (e.g. PI Salary) charged to the internal fund.

Thanks

Shyam

[atif_farooq]

Hi Shyamal:

I am testing above scenario and getting no result please guide me in the light of following steps that i have done .

1.Sponsor has not released funds for project and funds are required for the uninterrupted processing of project so what i did, i created a fund "BRIDGED" with type internal.

2. I created Grant master with this fund and an external fund.

From here onwards i want you to guide me through the process.

Regards

[Former Member]

Hi Atif

We are looking at the same requirement, and I can't see how this described process is possible:

"The transfer between funds is only for the expenditure (e.g. PI Salary) charged to the internal fund"

What transaction in GM allows you to transfer expenditures between funds in GM (unless somehow in reassignment?). I could not see any such transation.

Did you find any way that Shyamal's process would work?

Kind regards

E

[atif_farooq]

Hi Ellen:

I also couldn't find the way to transfer the expense (lets us say PI salary that was initially borne by grantee ) from Internal funds to external funds . I tried to do so in GM_CREATE_BUDGET by selecting process "Transfer" but it does not show anything for splitting. Posting monthly budget and releasing it for some specific sponsored class like PI salary by a special approval is a way around.

Regards

[sjajodia]

Ellen,

Another way you can "transfer" budget is to reduce it in the sender in one document and post a second document to increase it in the receiver. While this is not ideal it gets around the restrictions.

Thanks

Shyam

[Former Member]

Dear Shyam,

I have already assigned both an internal and an external fund to the Grant Master with the flag "budgeting allowed" for both.

When I go to transaction GM_CREATE_BUDGET, only the external fund is available for budgeting. The system does not bring the internal fund to budget .

Any ideas?

[sjajodia]

Christos,

Please check the Budget Document Type configuration for the Funding field. It should be Cost Sharing Funds (not Sponsor's Funds) if you want to create budget for the internal fund. You will therefore need two document types.

Thanks

Shyam

[Former Member]

My scenario is the following:

We receive the funds from the European Commission and we pass
through some funds to other universities (classic pass-through scenario).

We use an incoming grant (with an external fund to record
the receipt of the funds from the EC) and we use several outgoing grants for
the other universities.

We want to use the external fund to pass-through these funds to
the other universities , but the system does not allow the use of external
funds to outgoing grants.

Any ideas?