Defining Multi-Funded Contracts (GM20.1)

Use Multi Funded Contracts (GM20.1) to establish the funding sources and funding rules for projects. A project may be funded by a single source or multiple sources. Funding sources may include one or many grants, funds, loans, or bonds. Establishing contracts or agreements via GM20 allows you to bill multiple grant sponsors (customers) for a single project and also manage internal or non-grant funding and grant match requirements.

The detail section allows users to define sources of funding for single or Multi-Funded Projects. Funding Sources include grant (externally funded) and non-grant (internal or local) funding. This section of the form allows you to define the funding rules and GL accounts for revenue recognition. It also allows you to define match information.

Creating and Approving Contracts Use GM20 to create multi-funded contracts. Assign contract funding, funding priority, funding percent and amount. Use the Approve form function to update the contract status to approved. Grant Expenditure Allocation (GM120) and Grant Request for Reimbursement (GM121) can only be run for approved contracts. Approving the contract will also create initial add records in the contract fund adjustment audit record. If the revenue recognition method is equal to C - Modified Accrual or Cash Application, the approve function will create appropriation journal entries for non-grant funding. Once a multi-funded contract has been approved, changes can be made to the funding rules (priority, percent and match) only.
Changing Funding Amounts on Approved Contracts GM20 will not allow changes to funding amounts on approved contracts. The user will receive an error "Cannot change fund amount, use GM40 Contract Fund Adjustment". Any changes to funding amounts musts be made via Contract Funding and Transfer (GM40). GM40 requires an approval process and will create an audit trail of funding amount changes including reason, comments, entered by and approved by details.
Transferring Funding on Approved Contracts A grant or a fund may fund more than one project. To transfer funding from one contract to another, use Contract Fund Transfer (GM40.2). Any transfer of funding from one contract to another must be made via GM40.2. GM40.2 requires an approval process and will create an audit trail of funding amount changes including reason, comments, entered by and approved by details. If changes need to be made to the transfer to contract funding source priority, funding percent, and match after the transfer, use GM20 to update.
Adding New Funding Sources to Approved Contracts If new funding is added to an approved contract use GM20 form function C - Change and line function A to add new funding source and designate the funding priority, funding percent, funding amount and match. GM20 will validate the additional funding does not exceed the contract amount and also create appropriation entries for non-grant funds, if the grant billing revenue recognition flag is equal to C.

Contract Activity, posting level activities, and cost account categories need to be set up.

To define contract funding records

  1. Access Multi-Funded Contract (GM20.1).
  2. Define the contract funding records. Use the following guidelines to enter fields:
    Contract

    Type the contract or agreement Code.

    This is the contract number or identifier.

    Contract Description

    Type the contract description.

    Contract Activity

    Type the contract activity. This should be the same as your contract (project) code. Contract Activities are established in AC10.

    Contract Amount

    Type or select the contract amount. This is the total project revenue budget.

    Funding source fund amount exchanged to contract currency is stored in this amount field.

    Currency

    Select the currency code for the multi-funded contract amounts. This code will appear on the allocated expenditures report and pay request. All allocated expenditure amounts calculated on the grant billing transactions will be stored in this currency.

    Note: If the contract currency is different from your activity group base currency, Lawson recommends that you assign one of your activity group reporting currencies to match the contract currency. This lets you see all balance amounts in the contract currency.
    Contract Budget

    Displays the calculated sum of the Amounts input below in the Funding Source Amounts fields.

    Exclude Unpaid AP

    Select Yes or No to indicate whether activity transactions associated with unpaid Accounts Payable invoices will be excluded from grant billing. To enable tracking of the payment status for these transactions, this field must be set to Yes at the time the invoice is released in Accounts Payable.

    Position to

    If the funding priority list is longer than a page, this field displays the priority for the first line of the next page. You can select another priority to locate the first occurrence of that priority.

  3. Complete the funding and funding rules on the Funding tab. Use the following guidelines to enter fields:
    FC

    Select the action you want to perform on this line

    Pty (Priority)

    Select the funding priority order. Grant Expenditure Allocation (GM120)will use the priority order to determine expenditure allocation. Funding is processed in priority order.

    Funding sources can be added at any point in the contract. Priority order can change at any point in the contract and will become the new priority when changed. Change function on priority number requires re-inquire to display new priority order. Duplicate priority numbers are not allowed.

    Type

    Displays Grant or Non-grant fund for funding source selected.

    Grant/Fund

    Select the Funding Source

    Grant or non-grant fund code or identifier. Grants are funds disbursed by one party (grantor) often a government department or agency to a recipient (grantee). Most grants are made to fund a specific project and require some level of compliance and reporting. Non-grant funds are internal or local funding the grantee contributes towards the project.

    Pct (Percent)

    Type the percent this funding source should cover.

    If a contract is only funded by a single funding source, enter 100%. If a contract is funded by multiple funding sources, the last priority funding source must equal 100% (100% of remaining). More information is available about contract funding setup: Multi-funded contracts setup and calculation If a grant funds a project and requires match enter the grant, funding percent and the match fund(s) and match percent.

    Amount

    Type the Fund Amount.

    This is the Funded amount for the funding source. Type the Fund amount in the fund currency.

    Activity (button)

    Click the activity button to transfer to Grant Eligible Activities. The Activity button will only display for G - Grant type funds. This form defines or lists the posting level activities that are eligible for reimbursement by the grant.

  4. Access the Funding: Amounts tab. The following fields are display only:
    Req Reimbursement

    Display only. The Requested Reimbursement amount is the amount that has been invoiced or requested for the grant or non-grant funding source. This amount is updated by running Grant Request for Reimbursement (GM121) in update mode.

    Expenditures

    Display only. This amount represents eligible expenditures allocated to the funding source. This amount is updated by running GM120 in update mode.

    Balance Remaining

    Display only. Contract funding source remaining balance. Amount is calculated and equals fund amount less eligible expenditures equals remaining balance.

    Remaining balance is updated by Multi-Funded Contract (GM20), Grant Expenditure Allocation (GM120), and Grant Fund Adjustments and Transfers (GM40).

    Note: Projects added mid-project can update contract funding balances using Contract Funding Balance Creation (GM54.1). Update of expenditures and requested reimbursement amounts via GM54.1 will also update the balance remaining.
    Percent Spent

    The percent spent is calculated by dividing the expenditures by the contracted amount.

  5. Access the Funding: Grant Accounts tab. Use the following guidelines to enter field values:
    Revenue GL Code

    A GL code is a short cut code which represents a general ledger account for posting to the General Ledger system. If this field is left blank, it will default from the grant fund. This field represents the credit entry or revenue account for the funding source. This account will be credited when project expenditures are paid using this fund (when GM121 is run in update mode).

    Revenue Account Category

    Account categories are groups of costs, revenues, or a combination of both used for reporting and inquires for activities in the Project Accounting system. Select a revenue type account category for posting grant fund revenue to activities. If this field is left blank, it will default from the grant fund.

    Deferred Rev GL Code

    A GL code is a short cut code which represents a general ledger account for posting to the General Ledger system. If this field is left blank, it will default from the grant fund. This deferred revenue account (earned/unavailable) will be credited when project expenditures are paid using this fund (when GM121 is run in update mode). This account will be debited when cash is received in AR.

    Deferred Rev Acct Cat

    Account categories are groups of costs, revenues, or a combination of both used for reporting and inquires for activities in the Project Accounting system. Select an accrual type account category for posting grant fund deferred revenue (earned/unavailable) to activities. If this field is left blank, it will default from the grant fund.

  6. Access the Funding: Internal Funding Accounts tab. Use the following guidelines to enter field values:
    Revenue Account GL Code

    A GL code is a short cut code which represents a general ledger account for posting to the General Ledger system. This field is required for both grant and non-grant funds. If this field is left blank, it will default from the grant or non-grant fund. This field represents the credit entry or revenue account for the funding source. This account will be credited when project expenditures are paid using this fund (when GM121 is run in update mode).

    Revenue Account Category

    Account categories are groups of costs, revenues, or a combination of both used for reporting and inquires for activities in the Activity Management system. Select a revenue type account category for posting non-grant fund revenue to activities. If this field is left blank, it will default from the non-grant fund.

    Source Fund Expense GL Code

    A GL Code is short cut code which represents a GL Account for posting to the General Ledger system. The Revenue Offset Account GL code is the debit entry or revenue offset for non-grant funds for expenditures funded by local or internal funds.

    Revenue Clearing Account GL Code

    A GL code is a short cut code which represents a general ledger account for posting to the General Ledger system. If this field is left blank, it will default from the non-grant fund. This project funding in will be credited when the contract is approved. This account will be debited when project expenditures are paid using this fund (when GM121 is run in update mode).

    Revenue Clearing Account Account Category

    Account categories are groups of costs, revenues, or a combination of both used for reporting and inquires for activities in the Project Accounting system. Select an accrual type account category for posting internal funding to activities. If this field is left blank, it will default from the non-grant fund.

  7. Access the Funding: Match Reporting tab and complete the form. Use the following guidelines to enter field values:
    Note: If the Grant was flagged as requiring a match this tab will display. Use this tab to identify the Grant match or cost share.
    Match Grant

    If a funding source is a match fund this field contains the grant the fund matches.

  8. Access the Amounts tab.

    These amount fields are display only. The amounts equal accumulated totals from the related contract funding source records. Amounts are updated by addition of the contract funding source records and running Grant Expenditure Allocation (GM120), Grant Request for Reimbursement (GM121). These amounts represent contract balance amounts.

    Budgeted Amount

    Displays the calculated sum of the funding amounts for the contract.

    Expenditures

    Contract funding source eligible expenditures is updated by Grant Expenditure Allocation (GM120). This amount represents the project expenditures allocated or funded by this grant or non-grant fund.

    Balance Remaining

    Contract funding source remaining balance. Amount is calculated and equals fund amount less eligible expenditures equals remaining balance.

    Remaining balance is updated by Multi Funded Contract (GM20), Grant Expenditure Allocation (GM120), and Grant Fund Adjustments and Transfers (GM40).

    Note: Projects added mid-project can update contract funding balances using Contract Funding Balance Creation (GM54.1). Update of expenditures and requested reimbursement amounts via GM54.1 will also update the balance remaining.
    Percent Spent

    The percent spent is calculated by dividing the expenditures by the contracted amount.

    Requested Reimbursement

    Display only. The Requested Reimbursement amount is the amount that has been invoiced or requested for the grant or non-grant funding source. This amount is updated by running Grant Request for Reimbursement (GM121) in update mode.

    Last Allocated date

    This field displays the last time expenditure allocation was run and amounts updated for the contract.

    Receipts (button)

    Click on the Receipts button to transfer to Contract Pay Requests and Receipts form which displays all Pay Requests for the Contract by Grant giving the user a view into open receivables and cash receipts.

  9. Approve Contract. The following will updates will occur as a result of approving the contract:
    1. The Approve function will create an initial Contract Fund Adjustment record for each funding source. View Contract Fund Adjustment records via GM40.1.
    2. If the revenue recognition flag on GL01.7 is set to C - Modified Accrual or Cash the approve function will create revenue journal entries for fund appropriation for non-grant funding or internal funding. The journal amount is equal to the funding amount. Journal entries can be viewed in GL by referencing GL41 or GL45.