Frequently Asked Questions

Grants & Contracts

Q:   How is a new Department number (deptid #) for a sponsored program initiated?

A:   Receipt of the "Announcement of Grant Award" from the Office of Sponsored Programs initiates creation of a new department number by Grant & Contract Accounting. An Award Binder, with signature cards, budget information, access request forms, and financial procedures are then mailed to the Principal Investigator via campus mail. Upon receipt of the binder, the PI is encouraged to set up an "orientation" appointment with Grant & Contract Accounting to discuss the financial management of the award.

Q:   Whose money is it?

A:   All sponsored program awards are made to James Madison University. They are accepted and administered by the University in compliance with federal, state, and funding agency policies and regulations. Individual faculty and staff are not authorized by the University to accept/receive/modify sponsored program awards.

Q:   How long does the approval process for transactions take?

A:   The average turn-around time for documents processed by Grant & Contract Accounting is less than one business day (including internal approval of proposals, PAR forms, accounting invoices & vouchers.)

Q:   What should I do if I need assistance or information related to managing the financial aspects of my award?

A:   "Orientation" appointments for all new Principal Investigators and support staff are available upon request, as well as appointments to discuss the current financial status of your project or to address any questions/concerns you may have.

Q:   What is cost sharing?

A:   Cost sharing is the amount of monies JMU is obligated to spend on a specific award per the award terms.

Q:   What is F&A?

A:   Facilities and Administrative costs (sometimes called indirect costs or overhead.) Facilities costs are depreciation & use allowances, interest on certain debt, operation & maintenance expenses, and library expenses. Administrative costs are general administrative, department administrative, sponsored projects administrative and student administrative expenses.

Q:   What is effort reporting?

A:   Activity reports covering each individual paid, per semester, from federal funds or federal flow through funds received from a state/private agency. These reports are required by Federal OMB Circular A-21. The reports are prepared by the Grant & Contract Accounting Office from payroll records, sent to the PI for confirmation and returned to Grant & Contract Accounting to become part of the permanent award file.

Q:   What happens if my sponsored program work will not be complete by the end date?

A:   Anticipated changes in project scope or schedule should be shared as soon as possible with the Office of Sponsored Programs, the Grant & Contract Accounting Office and the funding agency. Requests for extensions should be coordinated with the Office of Sponsored Programs no less than one month prior to the original expiration date or as required per the terms of the original award agreement. The Grant & Contract Accounting Office assigns award beginning/ending dates based on original award and addendums.

Q:   What are legitimate expenses for indirect cost recovery budgets?

A:   All indirect cost recovery funds belong to the university and are addressed under Section 4-2.03c of the state Appropriation Act. JMU's allocation procedure is as follows: 30% of recoveries is a state required transfer to Educational and General revenues of the university, 50% of recoveries to deans & department heads, and 20% to fund all required federal audits and the operation of the Grant & Contract Accounting Office. The 50% allocated to deans and department heads is to be used to support activities which may result in additional external funding for sponsored programs. This would include computers purchased to allow faculty members to conduct research or travel to present papers to possible funding agency representatives.

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