Financial Management Newsletter #28

June 2005

Summer's here!!

This newsletter includes information about the following:

* OWLS Updates for Year End Financial Reporting
* Biennium Close Reminder
* June 30 Payroll Cut-off
* Grants and Contracts - Unallowable Cost Transfers
* F&A Negotiation Update

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ATTN: OWLS Timekeepers!

Please update all OWLS information (vacation and sick leave) through at least the month of May by June 30, 2005 for all relavant employees. OWLS information is used by Financial Accounting to prepare year end financial statement accruals for vactaion and sick leave. Thus, the need for the data to be current and accurate is critical.

Please contact Erin Courtney at erinc1@u. with any questions.

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Biennium Close Reminder

As June arrives, so do a number of biennium close processing and cutoff dates. Important dates to know include last dates for placing purchase orders and last dates for deposit of cash for the old biennium. The biennium close information webpage is updated as changes occur, so this is a good time to review what's coming up at:

http://www.washington.edu/admin/ap/office/bienniumclose2005.htm

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Payroll Cutoff - June 30, 2005

To accomodate a number of tasks associated with civil service reform (CSR), salary revisions, biennium close and faculty reappointments, the final cutoff for the June 30, 2005 payroll has been scheduled for Friday, *July 1, 2005*.
The ETR/PTR window for time reporting will be available beginning Tuesday, June 28, 2005.

Moving the final cutoff to Friday will provide the extended weekend to complete the June 30, 2005 payroll and the additional processes associated with the July 1, 2005 changes. As a result, HEPPS, OPUS, and ESS will not be available from July 1, 2005 (5:00pm) until Tuesday, July 5th (8:00am).

If you have any questions, please contact Ginny Montgomery at ginnym@u.washington.edu (543-8625) or Cindy Gregovich at cingreg@u.washington.edu (543-8648).

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Grants and Contracts - Unallowable Cost Transfers

Two recent national announcements remind us of the importance of ensuring cost transfers are allowable. On Thursday May 26, 2005, it was announced that the Mayo Clinic paid $6.5 million to the federal government to settle allegations that it misspent millions of dollars in federal research funds over more than a decade. The announcement describes an annual Clinic process of shifting expenses from overspent grants to underspent grants, called the "year end push" -- an important caution as UW approaches biennium close.

The second national announcement came from a recent research administrators conference where the NIH Office of Inspector General presented their "College and University Audit Coverage" plan with a list that includes examination of cost transfers.

All cost transfers must comply with UW cost transfer policies and procedures contained in GIM 15: http://www.washington.edu/research/osp/gim/gim15.html.

Please contact the GCA compliance office if you have any questions (Ted Mordhorst, tedm2@u. or Michael DeShazo, mdeshazo@u).

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F&A Negotiation Update

Management Accounting and Analysis (MAA) submitted the University's Facilities and Administrative (F&A, or indirect cost) proposal to the US Department of Health and Human Services (HHS) mid-July, 2004. Following proposal submission, HHS, the UW's coginizant agent, determines the timing and extent of procedures to finalize the proposal and determine final rates. As part of their review, HHS requests additional data from the University and schedules campus site visits. HHS has completed two site visits and MAA is now responding to final data requests from HHS about our rate proposal.

Final negotiation of the rates is anticipated this summer.

Questions or concerns may be directed to Cristi Chapman at cristi@u or 543-9985.

Ann

Ann Anderson, Controller (andera@u.washington.edu or 543-4993)

V'Ella Warren, Vice President, Financial Mgmt & Treasurer, Board of Regents (vwarren@u.washington.edu or 543-8765)