Finance
and
Planning
Invoicing and Financial Reporting Procedure
Table of Contents
1. Process Overview ........................................................................................................................ 2
2. Roles and Responsibilities ........................................................................................................... 2
3. Basic Process ............................................................................................................................... 3
4. Calculating Indirect Cost ............................................................................................................... 6
5. Invoicing and Reporting Process Flowchart ................................................................................. 7
6. Sample Detail Reconciliation Sheet ............................................................................................. 8
7. Sample Journal Voucher to Allocate Indirect Cost ....................................................................... 9
8. Sample Invoice ...........................................................................................................................11
9. Sample Concurrence Memo .......................................................................................................12
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1. Process Overview
Grant Accounting prepares and issues either invoices to sponsoring agencies for reimbursement
of costs incurred, or reports to notify sponsoring agencies of final costs incurred by a Principal
Investigator (“PI”) who is delivering goods or services to the sponsor, as specified under the
terms of the award.
When the accounting period closes, the Grant Accountant responsible for invoicing or financial
reporting generates an Organization Detail Activity (“FGRODTA”) report for the period in question
(e.g. 1/1/2008-3/31/2008) from Banner to determine the dollar amount of expenses that should be
billed, and then prepares the invoice or report. The Grants Manager or Supervisor will review and
approve the invoice or report before the Grant Accountant saves a hard copy in the award file,
records the invoice or report date and amount in the MS Access Sponsored Research Database,
and submits the invoice or report, along with any required support documentation to the sponsor.
Invoices and reports must be filed in accordance with the terms, conditions, and deadlines
established by the sponsor and agreed to by Pace University as indicated in the award document.
This will increase the likelihood of prompt payment and reduce the risk of the sponsor rejecting
the invoice or report.
If this is the final invoice or report for the award, the Grant Accountant will obtain signature of
approval on a Concurrence Memo from the applicable Budget Representative and/or PI for the
final expenses incurred, prior to sending the final invoice or report to the sponsor.
2. Roles and Responsibilities
Grant Accountant: Responsible for assisting the Grants Manager or Supervisor in determining
monthly invoicing priorities, reviewing sponsor’s invoicing or reporting requirements, reconciling
account expenses for each reporting period, preparing invoices, reports and all necessary journal
vouchers, updating the Sponsored Research Database, and storing relevant correspondence and
hard copies of each invoice in the appropriate award file.
Grants Manager or Supervisor: Responsible for identifying awards that require invoice or report
preparation, providing expertise regarding the unique rules and regulations of each award, and
approving and signing invoices and reports before the Grant Accountant submits them to the
sponsor.
Principle Investigator and Budget Representative: Responsible for maintaining an accurate
account of expenses charged to the award, ensuring that all expenses charged to the award are
in accordance with Pace’s F.GR.001.PO Allowability Cost Policy, and signing a Concurrence
Memo as approval of expenses charged to the award during the project period.
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3. Basic Process
Invoicing and financial reporting are multi-step processes that begin with identifying awards that
require invoice or report preparation and end when an invoice or report is submitted to the
sponsor. Details of this process are as follows:
Identifying Awards That Require Invoice or Report Preparation
At the close of every month, the Grants Manager or Supervisor will generate a report in the
Grants Database to identify awards that have an invoice or report due. To properly generate the
report, the Grants Manager or Supervisor will:

open the Sponsored Research Database and click the “Invoices/Reports to be
Completed” button,

enter the first day of the month as the “Start Date” and the last day of the month as the
“End Date,”

verify that the database generates a list of awards that have an invoice or report due that
month, and

print the report.
Prioritizing Invoice and Report Preparation
After the Grants Manager or Supervisor identifies the awards that have an invoice or report due
that month, they will meet with the Grant Accountant to prioritize the order in which invoices and
reports will be prepared. At this meeting, the Grants Manager, Supervisor, and Accountant will
consider:

the due dates of each invoice and report,

the submission date of the last invoice or report,

the sponsor’s requirements for preparing an invoice or report,

the dollar amount for which an invoice or report will be prepared, and

whether the sponsor is federal, state, local, or private.
Notes:

The Grants Manager or Supervisor chooses which of the above consideration holds the
most weight on a case-by-case basis.

Unless otherwise specified, invoices and reports should be submitted 30 days after the
reporting period ends.
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Reviewing the Sponsor’s Invoicing or Reporting Requirements
After the Grant Accountant selects an award to prepare an invoice or report, he or she will review
the sponsor’s invoicing or reporting requirements that can be found in the award agreement. The
Grant Accountant must determine:

if indirect costs must be applied to the award,

if there are cost-sharing requirements that must be met,

if the sponsor requires the use of a designated invoice or report template, and

how the sponsor prefers Pace submit the invoice or report (e.g. electronically, regular
mail).
Note: If this information cannot be found in the original contract, the Grant Accountant must
contact the PI, Budget Representative, or sponsor to obtain any missing information.
Reconciling Account Expenses
After the Grant Accountant reviews the sponsor’s invoicing or reporting requirements, they will
reconcile the account by matching the expenses posted to the award during the invoicing or
reporting period to the general ledger. To properly reconcile the account the Grant Accountant
will:

generate a FGRODTA report in Banner for the specified invoicing or reporting period,

develop a detail reconciliation sheet to reflect each line item expense shown on the
FGRODTA report,

if appropriate, calculate indirect cost associated with the award and incorporate it on the
detail reconciliation sheet (see Section 4 Calculating Indirect Cost),

If appropriate, calculate Pace’s cost sharing contribution requirement as stated in the
award contract, and incorporate the contribution in the detail reconciliation sheets (see
Pace’s F.GR.007.PO Cost Sharing Policy),

contact the Budget Representative to verify any questionable expenses that appear on
the FGRODTA for the invoicing or reporting period, and

complete any necessary cost transfers (see Pace’s F.GR.003.POPR Cost Transfer Policy
and Procedure). Final invoices or reports will reflect all cost transfers. If the invoice or
report is not final, cost transfers will be included on the subsequent invoice or report.
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Preparing the Invoice or Report
After the Grant Accountant reconciles the account, the reconciliation sheets should be converted
into an invoice or report. Unless the sponsor provides a preferred invoice or report form, invoices
and reports should be prepared on Pace letterhead, and will contain:

the sponsor, award/project, and PI’s name,

Pace’s index and fund reference number, and the sponsor’s agreement or contract
reference number,

the total amount of the award,

the invoicing or reporting period for which reimbursement is being requested, and the
project period of the award,

the current expenses for the invoicing or reporting period by expense category, including
indirect costs, and total expenses invoiced or reported to date, and

a certification statement.
Note: Final invoices and reports must be marked “Final” before submission.
Approving and Submitting the Invoice or Report
After the invoice or report and all necessary support documentation are prepared, the Grants
Manager or Supervisor will review all of the documents before the Grant Accountant submits
them to the sponsor. If the invoice or report is the final invoice or report for the award, the PI and
Budget Representative are required to sign a Concurrence Memo before the Grant Accountant
can submit the invoice to the sponsor. The PI and Budget Representative will sign the
Concurrence Memo after they:

verify that all of the expenses on the invoice or report were incurred during the specified
project period, and

ensure that all expenses on the invoice or report are in accordance with Pace’s
F.GR.001.PO Allowability Cost Policy.
After the PI and Budget Representative sign the Concurrence Memo, the Grants Manager or
Supervisor will sign the invoice or report and the Grant Accountant will submit the invoice or
report to the sponsor, with all support documentation attached.
Note: The Grants Manager may deem it necessary to submit final invoices or reports without
receipt of the Concurrence Memo if the memo is not returned in a timely manner, or other
circumstances exist.
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4. Calculating Indirect Cost
Some awards require the Grant Accountant to calculate indirect costs incurred during the
invoicing or reporting period. Indirect cost is calculated by applying the negotiated indirect cost
rate to the indirect cost base, both identified in the award contract. When necessary, the Grant
Accountant will calculate and process indirect cost by:

reviewing the contract to determine the agreed upon indirect cost rate,

determining the indirect cost base ( e.g. salaries and wages, total direct cost, or modified
total direct cost) to which the indirect cost rate will be applied,

preparing a journal voucher to debit the award index and credit Pace’s indirect cost index
( see Section 8 Sample Journal Voucher to Allocate Indirect Cost), and

submitting the journal voucher to the Accounting Data Assistant for processing.
Pace’s current Indirect Cost Rate Agreement can be found at the following address:
http://www.pace.edu/page.cfm?doc_id=15585
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5. Invoicing and Reporting Process Flowchart
Grants Manager/
Supervisor (“GM/S”)
generates report from
Grants Database to ID
invoices/reports due
GA will review the
sponsor’s invoicing/
reporting requirements
as stated in the award
agreement
Grant Accountant
(“GA”) and GM/A meet
to prioritize the invoices/
reports to be prepared
Requirements
found in the
agreement?
Y
GA generates an
Organization Detail
Activity (“FGORDTA”)
report in Banner
Y
PI and BR send invoice/
report to GM/S for final
signature and submittal
N
GA will contact the
Principle Investigator
(“PI”) or sponsor to
obtain necessary
information
GA reconciles the
account based on
FGORDTA reports
generated in Banner
GA prepares a
Reconciliation Sheet
GA verifies expenses
with the PI and Budget
Representative (“BR”)
GA works w/ BR to
prepare the necessary
journal vouchers
N
PI concurs with
expenses?
GA prepares the
invoice/report
Final invoice/
report?
Indirect Costs
(“IDC”) Applicable?
N
Y
GA determines IDC
base, calculates IDC
and prepares the JV
Adjustments
required?
Y
N
GA sends the invoice/
report to PI and BR to
obtain signature of
Concurrence Memo
Y
N
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GM/S signs the invoice/
report and GA submits it
to the sponsor
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6. Sample Detail Reconciliation Sheet
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7. Sample Journal Voucher to Allocate Indirect Cost
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8. Sample Invoice
To: Fraunhofer USA CMB
9 Innovation Way, Suite 200
Newark, DE 19711
Pace University Number: AS658/F08649
Invoice Number:
1
Total Award: $40,250.00
Project Period: 8/21/2007-2/20/2008
Costs for Period:
8/21/2007
Amount for
Current Period
Salaries and Wages
To 12/31/2007
Cumulative
From Inception
2,241.00
2,241.00
7.56
7.56
2,248.56
2,248.56
Equipment
4,290.00
4,290.00
Supplies
3,687.80
3,687.80
Fringe Benefits
Total Personnel Costs
Contractual Services
Travel - Domestic
- Foreign
-
-
Other
-
-
Total Direct Costs
Indirect Costs
Total Costs
10,226.36
10,226.36
1,533.95
1,533.95
11,760.31
11,760.31
Total Award Amount
40,250.00
Balance
28,489.69
I hereby certify that this report is true and correct to the best of my knowledge, and that all expenditures
reported herein have been made in accordance with appropriate grant policies and for the purpose set
forth in the application and award documents.
Diane Bynum
Grants Manager
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9. Sample Concurrence Memo
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