Most sponsors require financial reporting to determine the use of sponsored funds on either a monthly, quarterly, annual, or other reporting basis. The purpose of this policy is to provide guidelines for submitting accurate and timely reports in compliance with State and Federal guidelines and with other specified sponsor requirements.
The Office of Contracts and Grants (OCG) – Research Financial Services (RFS) is responsible for the following types of reports:
- Financial Report – The accounting of expenditures incurred during the period of performance and/or at the conclusion of the sponsored project. Frequent forms for Financial Reports include Federal Financial Report (FFR), Financial Status Report (FSR), and Federal Cash Transaction Report (FCTR)
- Final Financial Report – The process at the end of a sponsored award by which the University completes the required financial report and submits it to the sponsor in accordance with the Award Closeout Policy.
- Invoices – The invoice is a request for payment identifying the amount the sponsor owes. Cost reimbursable invoices are prepared after the close of an accounting period. Fixed price invoices are prepared and sent as set forth in the agreement.
- Non-Financial Reports – At the time of the final financial reporting period, the Financial Analyst (FA) will also complete any required reports, such as a Final Report of Inventions, Final Inventory of Equipment, etc.
The University of Houston shall submit financial reports and invoices to sponsors that:
- Accurately reflect the actual use of sponsored funds as recorded in the financial records kept in the People Soft (PS) enterprise system used by the University; and
- Are in compliance with the sponsor’s terms and conditions.
Achieving compliance with this procedure is a responsibility shared by the Principal Investigator (PI), departmental business offices, and the RFS.
The PI and/or designee must ensure that prior to financial reporting and invoicing, all expenses are allowable, allocable, reasonable to the project, and any required adjustments to expenses are posted in compliance with accounting, reporting, and close-out policies and procedures.
To ensure accuracy on the financial reports prepared by the FA, a second review, usually by the Assistant Director of RFS, will be completed for each report. Once the reports are reviewed, they are sent directly to the sponsoring agency.
The FA will review and use the financial information in the PS general ledger, to complete financial reports. Unallowable costs posted to the general ledger will not be included in the final report or will be credited and notated the on report when the error is identified.
During close out, the FA will verify the PS information with the PI and department to ensure that all expenses are posted and reported.
If adjustments are required to accurately reflect project activity, departmental personnel must submit the reallocation documentation and adequate justification through OCG for approval in a timely manner in order for the expenses to be included in the final report to the sponsor.